Senate File 457 - Enrolled




                                             SENATE FILE 457

                             AN ACT
 RELATING TO DISASTER RECOVERY BY LEGALIZING CERTAIN ACTIONS
    TAKEN AND PROCEEDINGS CONDUCTED BY CITIES AND COUNTIES IN
    RESPONSE TO A NATURAL DISASTER, DESIGNATING CERTAIN ACTIVI-
    TIES AS ESSENTIAL CORPORATE PURPOSES AND ESSENTIAL COUNTY
    PURPOSES, AMENDING PROVISIONS RELATED TO LOCAL BONDING
    AUTHORITY AND CONTRACT LETTING REQUIREMENTS, AMENDING
    PROVISIONS RELATING TO EMERGENCY CONTRACT LETTING REQUIRE-
    MENTS FOR JOINT GOVERNMENTAL ENTITIES AND INSTITUTIONS UNDER
    THE CONTROL OF THE BOARD OF REGENTS, AMENDING PROVISIONS
    RELATED TO CITY AND COUNTY LEASE CONTRACTS AND LOAN
    AGREEMENTS, MODIFYING PROVISIONS RELATING TO MUNICIPAL
    SUPPORT OF CERTAIN PROJECTS, AMENDING PROVISIONS RELATED TO
    EXPENDITURES FROM CERTAIN REVOLVING LOAN FUNDS, AUTHORIZING
    CITIES AND COUNTIES TO CREATE DISASTER REVITALIZATION AREAS,
    PROVIDING INCOME TAX CREDITS FOR CERTAIN DISASTER RECOVERY
    HOUSING PROJECTS, AND INCLUDING EFFECTIVE DATE AND RETRO-
    ACTIVE APPLICABILITY DATE PROVISIONS.

 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

                           DIVISION I
                         LEGALIZING ACT
    Section 1.  CERTAIN PRIOR PROCEEDINGS AND ACTIONS LEGALIZED
 == AMENDMENT OF BUDGETS == REPORT.  All proceedings conducted
 or actions taken by or on behalf of a city or county located
 in an area that the governor has proclaimed a disaster
 emergency or the United States president has declared a major
 disaster, related to the emergency repair or reconstruction of
 public improvements damaged by a natural disaster during the
 period of time beginning May 1, 2008, and ending August 31,
 2008, and related to all natural disaster=related expenditures
 by a city or county in excess of an original or previously
 amended city or county budget for the fiscal year ending June
 30, 2008, that were conducted or taken in violation of the
 requirements of section 331.435, 331.437, or 384.18, as
 applicable, prior to the effective date of this division of
 this Act are hereby legalized and validated, and, to that
 extent, this Act applies retroactively to the date such
 proceedings were conducted or actions were taken.
    On or before January 1, 2010, the Iowa league of cities and
 the Iowa state association of counties shall each submit a
 report to the chairpersons and ranking members of the rebuild
 Iowa committees of the senate and house of representatives.
 Each report shall include a summary of the circumstances and
 actions taken by those cities or counties, as applicable, that
 are subject to this division of this Act.
    Sec. 2.  EFFECTIVE DATE.  This division of this Act, being
 deemed of immediate importance, takes effect upon enactment.
                           DIVISION II
                         LOCAL FINANCING
                 AND PUBLIC CONSTRUCTION BIDDING
    Sec. 3.  Section 16.131, Code 2009, is amended by adding
 the following new subsection:
    NEW SUBSECTION.  7.  Notwithstanding any provision of this
 chapter to the contrary, moneys received under the federal
 American Recovery and Reinvestment Act of 2009, Pub. L. No.
 111=5, and deposited in the revolving loan funds may be used
 in any manner permitted or required by applicable federal law.
    Sec. 4.  Section 28E.6, Code 2009, is amended by adding the
 following new subsection:
    NEW SUBSECTION.  4.  A joint board of an entity created in
 an agreement that is responsible for the operation of a public
 facility or a public improvement may undertake the emergency
 repair of the facility or improvement in the manner provided
 in section 384.103, subsection 2.  If an emergency repair is
 undertaken by the joint board, the chairperson, chief officer,
 or chief official of the joint board shall perform the duties
 assigned to the chief officer or official of the governing
 body of the city under section 384.103, subsection 2.
    Sec. 5.  Section 76.1, Code 2009, is amended to read as
 follows:
    76.1  MANDATORY RETIREMENT.
    1.  Hereafter issues of bonds of every kind and character
 by counties, cities, and school corporations shall be
 consecutively numbered.
    2.  a.  The annual levy shall be sufficient to pay the
 interest and approximately such portion of the principal of
 the bonds as will retire them in a period not exceeding twenty
 years from date of issue, except as provided in paragraph "b".
    b.  General obligation bonds issued for the purposes
 specified in section 331.441, subsection 2, paragraph "b",
 subparagraphs (18) and (19), or in section 384.24, subsection
 3, paragraphs "w" and "x", and bonds issued to refund or
 refinance bonds issued for those purposes, may mature and be
 retired in a period not exceeding thirty years from date of
 issue.
    3.  Each issue of bonds shall be scheduled to mature
 serially in the same order as numbered.
    Sec. 6.  Section 76.2, unnumbered paragraph 1, Code 2009,
 is amended to read as follows:
    The governing authority of these political subdivisions
 before issuing bonds shall, by resolution, provide for the
 assessment of an annual levy upon all the taxable property in
 the political subdivision sufficient to pay the interest and
 principal of the bonds within a period named not exceeding
 twenty years the applicable period of time specified in
 section 76.1.  A certified copy of this resolution shall be
 filed with the county auditor or the auditors of the counties
 in which the political subdivision is located; and the filing
 shall make it a duty of the auditors to enter annually this
 levy for collection from the taxable property within the
 boundaries of the political subdivision until funds are
 realized to pay the bonds in full.  The levy shall continue to
 be made against property that is severed from the political
 subdivision after the filing of the resolution until funds are
 realized to pay the bonds in full.
    Sec. 7.  Section 262.34, Code 2009, is amended by adding
 the following new subsection:
    NEW SUBSECTION.  1A.  Notwithstanding subsection 1, when a
 delay in undertaking a repair, restoration, or reconstruction
 of a public improvement might cause serious loss or injury at
 an institution under the control of the state board of
 regents, the executive director of the board, or the board,
 shall make a finding of the need to institute emergency
 procedures under this subsection.  The board by separate
 action shall approve the emergency procedures to be employed.
    Sec. 8.  Section 331.301, subsection 10, paragraph e,
 unnumbered paragraph 1, Code 2009, is amended to read as
 follows:
    The board may authorize a lease or lease=purchase contract
 which is payable from the general fund and which if the
 contract would not cause the total of lease and lease=purchase
 payments of the county due from the general fund of the county
 in any single future fiscal year for all lease or
 lease=purchase contracts in force on the date of the
 authorization, excluding payments to exercise purchase options
 or to pay the expenses of operation or ownership of the
 property, to exceed ten percent of the last certified general
 fund budget amount in accordance with the following
 procedures:
    Sec. 9.  Section 331.402, subsection 3, paragraph d,
 unnumbered paragraph 1, Code 2009, is amended to read as
 follows:
    The board may authorize a loan agreement which is payable
 from the general fund and which if the loan agreement would
 not cause the total of scheduled annual payments of principal
 or interest or both principal and interest of the county due
 from the general fund of the county in any single future
 fiscal year with respect to all loan agreements in force on
 the date of the authorization to exceed ten percent of the
 last certified general fund budget amount in accordance with
 the following procedures:
    Sec. 10.  Section 331.441, subsection 2, paragraph b, Code
 2009, is amended by adding the following new subparagraphs:
    NEW SUBPARAGRAPH.  (18)  The remediation, restoration,
 repair, cleanup, replacement, and improvement of property,
 buildings, equipment, and public facilities that have been
 damaged by a disaster as defined in section 29C.2 and that are
 located in an area that the governor has proclaimed a disaster
 emergency or the president of the United States has declared a
 major disaster.  Bonds issued pursuant to section 331.443 for
 the purposes specified in this subparagraph shall be issued
 not later than ten years after the governor has proclaimed a
 disaster emergency or the president of the United States has
 declared a major disaster, whichever is later.
    NEW SUBPARAGRAPH.  (19)  The reimbursement of the county's
 general fund or other funds of the county for expenditures
 made related to remediation, restoration, repair, and cleanup
 of damage caused by a disaster as defined in section 29C.2, if
 the damage is located in an area that the governor has
 proclaimed a disaster emergency or the president of the United
 States has declared a major disaster.  Bonds issued pursuant
 to section 331.443 for the purposes specified in this
 subparagraph shall be issued not later than ten years after
 the governor has proclaimed a disaster emergency or the
 president of the United States has declared a major disaster,
 whichever is later.
    Sec. 11.  Section 331.443, Code 2009, is amended by adding
 the following new subsection:
    NEW SUBSECTION.  3.  a.  Notwithstanding subsection 2, a
 board may institute proceedings for the issuance of bonds for
 an essential county purpose specified in section 331.441,
 subsection 2, paragraph "b", subparagraph (18) or (19), in an
 amount equal to or greater than three million dollars by
 causing a notice of the proposal to issue the bonds, including
 a statement of the amount and purpose of the bonds, together
 with the maximum rate of interest which the bonds are to bear,
 and the right to petition for an election, to be published at
 least once in a newspaper of general circulation within the
 county at least ten days prior to the meeting at which it is
 proposed to take action for the issuance of the bonds.
    b.  If at any time before the date fixed for taking action
 for the issuance of the bonds, a petition is filed with the
 county auditor signed by eligible electors of the county equal
 in number to twenty percent of the persons in the county who
 voted for the office of president of the United States at the
 last preceding general election that had such office on the
 ballot, asking that the question of issuing the bonds be
 submitted to the registered voters of the county, the board
 shall either by resolution declare the proposal to issue the
 bonds to have been abandoned or shall direct the county
 commissioner of elections to call a special election upon the
 question of issuing the bonds.  Notice of the election and its
 conduct shall be in the manner provided in section 331.442.
    c.  If a petition is not filed, or if a petition is filed
 and the proposition of issuing the bonds is approved at an
 election, the board may proceed with the authorization and
 issuance of the bonds.
    Sec. 12.  Section 364.4, subsection 4, paragraph e,
 unnumbered paragraph 1, Code 2009, is amended to read as
 follows:
    The governing body may authorize a lease or lease=purchase
 contract which is payable from the general fund and which if
 the contract would not cause the total of annual lease or
 lease=purchase payments of the city due from the general fund
 of the city in any single future fiscal year for all lease or
 lease=purchase contracts in force on the date of the
 authorization, excluding payments to exercise purchase options
 or to pay the expenses of operation or ownership of the
 property, to exceed ten percent of the last certified general
 fund budget amount in accordance with the following
 procedures:
    Sec. 13.  Section 384.24, subsection 3, Code 2009, is
 amended by adding the following new paragraphs:
    NEW PARAGRAPH.  w.  The remediation, restoration, repair,
 cleanup, replacement, and improvement of property, buildings,
 equipment, and public facilities that have been damaged by a
 disaster as defined in section 29C.2 and that are located in
 an area that the governor has proclaimed a disaster emergency
 or the president of the United States has declared a major
 disaster.  Bonds issued pursuant to section 384.25 for the
 purposes specified in this paragraph shall be issued not later
 than ten years after the governor has proclaimed a disaster
 emergency or the president of the United States has declared a
 major disaster, whichever is later.
    NEW PARAGRAPH.  x.  The reimbursement of the city's general
 fund or other funds of the city for expenditures made related
 to remediation, restoration, repair, and cleanup of damage
 caused by a disaster as defined in section 29C.2, if the
 damage is located in an area that the governor has proclaimed
 a disaster emergency or the president of the United States has
 declared a major disaster.  Bonds issued pursuant to section
 384.25 for the purposes specified in this paragraph shall be
 issued not later than ten years after the governor has
 proclaimed a disaster emergency or the president of the United
 States has declared a major disaster, whichever is later.
    Sec. 14.  Section 384.24A, subsection 4, unnumbered
 paragraph 1, Code 2009, is amended to read as follows:
    The governing body may authorize a loan agreement which is
 payable from the general fund and which if the loan agreement
 would not cause the total of scheduled annual payments of
 principal or interest or both principal and interest of the
 city due from the general fund of the city in any single
 future fiscal year with respect to all loan agreements in
 force on the date of the authorization to exceed ten percent
 of the last certified general fund budget amount in accordance
 with the following procedures:
    Sec. 15.  Section 384.25, Code 2009, is amended by adding
 the following new subsection:
    NEW SUBSECTION.  3.  a.  Notwithstanding subsection 2, a
 council may institute proceedings for the issuance of bonds
 for an essential corporate purpose specified in section
 384.24, subsection 3, paragraph "w" or "x", in an amount equal
 to or greater than three million dollars by causing a notice
 of the proposal to issue the bonds, including a statement of
 the amount and purpose of the bonds, together with the maximum
 rate of interest which the bonds are to bear, and the right to
 petition for an election, to be published at least once in a
 newspaper of general circulation within the city at least ten
 days prior to the meeting at which it is proposed to take
 action for the issuance of the bonds.
    b.  If at any time before the date fixed for taking action
 for the issuance of the bonds, a petition is filed with the
 clerk of the city signed by eligible electors of the city
 equal in number to twenty percent of the persons in the city
 who voted for the office of president of the United States at
 the last preceding general election that had such office on
 the ballot, asking that the question of issuing the bonds be
 submitted to the registered voters of the city, the council
 shall either by resolution declare the proposal to issue the
 bonds to have been abandoned or shall direct the county
 commissioner of elections to call a special election upon the
 question of issuing the bonds.  Notice of the election and its
 conduct shall be in the manner provided in section 384.26.
    c.  If a petition is not filed, or if a petition is filed
 and the proposition of issuing the bonds is approved at an
 election, the council may proceed with the authorization and
 issuance of the bonds.
    Sec. 16.  Section 384.103, subsection 2, Code 2009, is
 amended to read as follows:
    2.  When emergency repair of a public improvement is
 necessary and the delay of advertising and a public letting
 might cause serious loss or injury to the city, the chief
 officer or official of the governing body of the city or the
 governing body shall, by resolution, make a finding of the
 necessity to institute emergency proceedings under this
 section, and shall procure a certificate from a competent
 licensed professional engineer or registered architect, not in
 the regular employ of the city, certifying that emergency
 repairs are necessary.
    In that event the chief officer or official of the
 governing body or the governing body may accept, enter into,
 and make payment under a contract for emergency repairs
 without holding a public hearing and advertising for bids, and
 the provisions of chapter 26 do not apply.
    Sec. 17.  Section 419.1, subsection 12, Code 2009, is
 amended by adding the following new paragraphs:
    NEW PARAGRAPH.  c.  Purposes that are eligible for
 financing from midwestern disaster area bonds authorized under
 the federal Emergency Economic Stabilization Act of 2008, Pub.
 L. No. 110=185, together with any other financing necessary or
 desirable in connection with such purposes.
    NEW PARAGRAPH.  d.  Purposes for which tax exempt financing
 is authorized by the Internal Revenue Code, together with any
 other financing necessary or desirable in connection with such
 purposes.
    Sec. 18.  Section 419.17, subsection 2, Code 2009, is
 amended by striking the subsection.
    Sec. 19.  Section 455B.297, Code 2009, is amended by adding
 the following new unnumbered paragraph:
    NEW UNNUMBERED PARAGRAPH.  Notwithstanding any provision of
 this chapter to the contrary, moneys received under the
 federal American Recovery and Reinvestment Act of 2009, Pub.
 L. No. 111=5, and deposited in the revolving loan funds may be
 used in any manner permitted or required by applicable federal
 law.
    Sec. 20.  Section 419.8, Code 2009, is repealed.
    Sec. 21.  EFFECTIVE DATE.  This division of this Act, being
 deemed of immediate importance, takes effect upon enactment.
                          DIVISION III
                  DISASTER REVITALIZATION AREAS
    Sec. 22.  Section 364.19, Code 2009, is amended to read as
 follows:
    364.19  CONTRACTS TO PROVIDE SERVICES TO TAX=EXEMPT
 PROPERTY.
    A city council or county board of supervisors may enter
 into a contract with a person whose property is totally or
 partially exempt from taxation under chapter 404, chapter
 404B, section 427.1, or section 427B.1, for the city or county
 to provide specified services to that person including but not
 limited to police protection, fire protection, street
 maintenance, and waste collection.  The contract shall
 terminate as of the date previously exempt property becomes
 subject to taxation.
    Sec. 23.  NEW SECTION.  404B.1  DISASTER REVITALIZATION
 AREA.
    1.  a.  The governing body of a city may, by ordinance,
 designate an area of the city a disaster revitalization area
 if that area is within a county or portion of a county in
 which the governor has proclaimed a disaster emergency or the
 United States president has declared a major disaster.
    b.  The governing body of a county may, by ordinance,
 designate an area of the county outside the boundaries of a
 city as a disaster revitalization area if that area is within
 a county or portion of a county in which the governor has
 proclaimed a disaster emergency or the United States president
 has declared a major disaster.
    2.  A disaster revitalization area shall be composed of
 contiguous parcels.  However, the governing body of a city or
 the governing body of a county may establish more than one
 disaster revitalization area.
    Sec. 24.  NEW SECTION.  404B.2  CONDITIONS MANDATORY.
    A city or county may only exercise the authority conferred
 upon it in this chapter after all of the following conditions
 have been met:
    1.  The governing body has adopted a resolution finding
 that the property located within the area was damaged by a
 disaster, that revitalization of the area is in the economic
 interest of the residents of the city or county, as
 applicable, and the area substantially meets the criteria of
 section 404B.1.
    2.  The city or county has prepared a proposed plan for the
 designated disaster revitalization area.  The proposed
 disaster revitalization plan shall include all of the
 following:
    a.  A legal description of the real property forming the
 boundaries of the proposed area along with a map depicting the
 existing parcels of real property.
    b.  The assessed valuation of the real property in the
 proposed area as of January 1, 2007, listing the land and
 building values separately.
    c.  A list of names and addresses of the owners of record
 of real property within the area.
    d.  The existing zoning classifications and district
 boundaries and the existing and proposed land uses within the
 area.
    e.  The exemption percentage applicable in the proposed
 area pursuant to section 404B.4.
    f.  A statement specifying whether none, some, or all of
 the property assessed as residential, agricultural,
 commercial, or industrial property within the designated area
 is eligible for the exemption under section 404B.4.
    g.  A definition of revitalization, including whether it is
 applicable to existing buildings, new construction, or
 development of previously vacant land.  A definition of
 revitalization may also include a requirement for a minimum
 increase in assessed valuation of individual parcels of
 property in the area.
    h.  A statement specifying the duration of the designated
 disaster revitalization area.
    i.  A description of planned measures to mitigate or
 prevent future disaster damage in the area.
    j.  A description of revitalization projects commenced
 prior to the effective date of the plan that are eligible for
 the exemption under section 404B.4.
    3.  a.  The city or county has scheduled a public hearing
 and published notice of the hearing in accordance with section
 362.3 or 331.305, as applicable.  In addition to notice by
 publication, notification shall also be given by ordinary mail
 to the last known address of the owners of record.  The city
 or county shall also send notice by ordinary mail addressed to
 the "occupants" of addresses located within the proposed area,
 unless the governing body of the city or county, by reason of
 lack of a reasonably current and complete address list, or for
 other good cause, shall have waived the notice.
    b.  The notice provided by mail to owners and occupants
 within the area shall be given no later than thirty days
 before the date of the public hearing.
    4.  The public hearing has been held.
    5.  The city or county has adopted the proposed or amended
 plan for the disaster revitalization area after the hearing.
    Sec. 25.  NEW SECTION.  404B.3  DISASTER REVITALIZATION
 PLAN AMENDMENTS.
    1.  The city or county may subsequently amend a disaster
 revitalization plan after a hearing.  Notice of the hearing
 shall be published as provided in section 362.3 or 331.305,
 except that at least seven days' notice must be given, and the
 public hearing shall not be held earlier than the next
 regularly scheduled city council or board of supervisors
 meeting following the published notice.  Notice shall also be
 provided by ordinary mail to owners and occupants within the
 area and any proposed addition to the area.
    2.  A city which has adopted a plan for a disaster
 revitalization area that covers all property within the city
 limits may amend that plan at any time, pursuant to this
 section, to include property which has been or will be annexed
 to the city.  The provisions of the original disaster
 revitalization plan shall be applicable to the property that
 is annexed and the property shall be considered to have been
 part of the disaster revitalization area as of the effective
 date of its annexation to the city.  The notice and hearing
 provisions of subsection 1 shall apply to amendments under
 this subsection.
    Sec. 26.  NEW SECTION.  404B.4  BASIS OF TAX EXEMPTION.
    1.  All real property within a disaster revitalization area
 is eligible to receive a one hundred percent exemption from
 taxation on the increase in assessed value of the property, as
 compared to the property's assessed value on January 1, 2007,
 if the increase in assessed value is attributable to
 revitalization of the property occurring between May 25, 2008,
 and December 31, 2013.  The exemption is for a period not to
 exceed five years, starting with an assessment year beginning
 on or after January 1, 2010.
    2.  A city or county may adopt a different tax exemption
 percentage than the exemption provided in subsection 1.  The
 different percentage adopted shall not allow a greater
 exemption, but may allow a smaller exemption.  A different
 percentage adopted by a city or county shall apply to every
 disaster revitalization area within the city or county.  The
 owners of real property eligible for the exemption provided in
 this section shall elect to take the exemption or shall elect
 to take an eligible exemption provided under another statute.
 Once the election has been made and the exemption granted, the
 owner is not permitted to change the method of exemption.
    Sec. 27.  NEW SECTION.  404B.5  APPLICATION FOR EXEMPTION
 BY PROPERTY OWNER.
    An application shall be filed for each revitalization
 project resulting in increased assessed value for which an
 exemption is claimed.  The application for exemption shall be
 filed by the owner of the property with the local assessor by
 February 1 of the first assessment year for which the
 exemption is requested.  Applications for exemption shall be
 made on forms prescribed by the local assessor and shall
 contain information pertaining to the requirements under this
 section and any requirements imposed by a city or county
 governing body.
    Sec. 28.  NEW SECTION.  404B.6  PHYSICAL REVIEW OF PROPERTY
 BY ASSESSOR.
    The local assessor shall review each application by making
 a physical review of the property to determine if the
 revitalization project increased the assessed value of the
 real property.  If the assessor determines that the assessed
 value of the real property has increased, the assessor shall
 proceed to determine the assessed value of the property and
 certify the valuation determined to the county auditor at the
 time of transmitting the assessment rolls.  The assessor shall
 notify the applicant of the determination, and the assessor's
 decision may be appealed to the local board of review at the
 times specified in section 441.37.  After the tax exemption is
 granted, the local assessor shall continue to grant the tax
 exemption, with periodic physical review by the assessor, for
 the time period specified by ordinance.  The tax exemption for
 the succeeding years shall be granted without the taxpayer
 having to file an application for the succeeding years, unless
 additional revitalization projects occur on the property.
    Sec. 29.  NEW SECTION.  404B.7  EXPIRATION OR REPEAL OF
 ORDINANCE.
    An ordinance enacted under this chapter shall expire or be
 repealed no later than December 31, 2016.
    Sec. 30.  EFFECTIVE DATE.  This division of this Act, being
 deemed of immediate importance, takes effect upon enactment.
                           DIVISION IV
          DISASTER RECOVERY HOUSING PROJECT TAX CREDIT
    Sec. 31.  NEW SECTION.  16.191  DISASTER RECOVERY HOUSING
 PROJECT TAX CREDIT.
    1.  a.  A tax credit shall be allowed against the taxes
 imposed in chapter 422, divisions II and III for a portion of
 a taxpayer's qualifying investment, as provided in subsection
 3, in a qualifying disaster recovery housing project.  To
 qualify as a disaster recovery housing project, a property,
 and the activities affecting the property, shall meet all of
 the following conditions:
    (1)  The property is owned by a taxpayer who is an
 individual, business, or corporation subject to taxation under
 chapter 422, divisions II or III.
    (2)  A qualifying investment, as defined in subsection 3,
 is made by the taxpayer.
    (3)  The project involves the construction or
 rehabilitation of housing on the property.
    (4)  The property is located in an area that the governor
 proclaimed a disaster emergency or the president of the United
 States declared a major disaster during the period of time
 beginning May 1, 2008, and ending August 31, 2008.
    (5)  An application for low=income housing tax credits
 pursuant to section 42 of the Internal Revenue Code has been
 submitted to the Iowa finance authority on behalf of the
 project and has been determined by the authority to meet the
 threshold requirements for an award of credits as set forth in
 the applicable qualified allocation plan.
    (6)  The project meets the requirements relating to the
 density of residential housing in the area as established by
 the authority.
    (7)  The project meets the requirements relating to the
 availability of and the accessibility to educational services
 as established by the authority.  For the purposes of this
 section "educational services" includes but is not limited to
 public schools, job training, and financial literacy services.
    (8)  The project is designed to avoid, prevent, or mitigate
 the effects of a future natural disaster.
    b.  An individual may claim a tax credit under this
 subsection of a partnership, limited liability company, S
 corporation, estate, or trust electing to have income taxed
 directly to the individual.  The amount claimed by the
 individual shall be based upon the pro rata share of the
 individual's earnings from the partnership, limited liability
 company, S corporation, estate, or trust.
    2.  a.  To claim a disaster recovery housing project tax
 credit under this section, a taxpayer must attach one or more
 tax credit certificates to the taxpayer's tax return.  The tax
 credit certificate or certificates attached to the taxpayer's
 tax return shall be issued in the taxpayer's name, expire on
 or after the last day of the taxable year for which the
 taxpayer is claiming the tax credit, and show a tax credit
 amount equal to or greater than the tax credit claimed on the
 taxpayer's tax return.
    b.  After verifying the eligibility of a taxpayer for a tax
 credit pursuant to this section, the authority shall issue a
 disaster recovery housing project tax credit certificate to be
 attached to the taxpayer's tax return.  The tax credit
 certificate shall contain the taxpayer's name, address, tax
 identification number; the amount of the credit; and any other
 information required by the department of revenue.
    c.  The tax credit certificate, unless otherwise void,
 shall be accepted by the department of revenue as payment for
 taxes imposed pursuant to chapter 422, divisions II or III
 subject to any conditions or restrictions placed by the
 authority upon the face of the tax credit certificate and
 subject to the limitations of this section.
    d.  Tax credit certificates issued under this section are
 not transferable to any person or entity.
    3.  a.  The tax credit equals seventy=five percent of the
 taxpayer's qualifying investment in a disaster recovery
 housing project.  For the purposes of this section,
 "qualifying investment" means the costs incurred by the
 taxpayer that are directly related to a disaster recovery
 housing project, as defined in subsection 1, and which are
 incurred on or after the effective date of this division of
 this Act and prior to July 1, 2010.
    b.  The amount of the tax credit calculated under paragraph
 "a" shall be divided by five and applied equally to the
 taxpayer's tax liability for five consecutive tax years
 commencing with the tax year beginning in the 2011 calendar
 year.  Any tax credit in excess of the taxpayer's liability
 for the tax year is not refundable.
    4.  For purposes of individual and corporate income taxes,
 the increase in the basis of the property that would otherwise
 result from the disaster recovery housing investment shall be
 reduced by the amount of the tax credit allowed under this
 section.
    5.  The maximum amount of tax credits issued by the
 authority under this section shall not exceed three million
 dollars in each of the five tax years.  The authority shall
 issue the tax credit certificates on a first=come,
 first=served basis.
    Sec. 32.  NEW SECTION.  16.192  APPROVAL == REQUIREMENTS ==
 REPAYMENT.
    1.  A taxpayer seeking to claim a tax credit pursuant to
 section 16.191 shall apply to the authority which shall have
 the power to approve the amount of tax credit available for
 each disaster recovery housing project.
    2.  A taxpayer applying for a tax credit shall provide the
 authority with all of the following:
    a.  Information showing the total qualified investment made
 in the disaster recovery housing project.
    b.  Information about the financing sources that are
 directly related to the disaster recovery housing project for
 which the taxpayer is seeking approval for the tax credit.
    3.  If a taxpayer receives a tax credit pursuant to section
 16.191, but fails to comply with any of the requirements in
 this section or section 16.191, or fails to comply with local
 zoning or construction ordinances, the tax credit is void, and
 the department of revenue shall seek recovery of the value of
 the credit received.
    Sec. 33.  NEW SECTION.  422.11X  DISASTER RECOVERY HOUSING
 PROJECT TAX CREDIT.
    The taxes imposed under this division, less the credits
 allowed under section 422.12, shall be reduced by a disaster
 recovery housing project tax credit allowed under section
 16.191.
    Sec. 34.  Section 422.33, Code 2009, is amended by adding
 the following new subsection:
    NEW SUBSECTION.  27.  The taxes imposed under this division
 shall be reduced by a disaster recovery housing project tax
 credit allowed under section 16.191.
    Sec. 35.  EFFECTIVE AND APPLICABILITY DATES.  This division
 of this Act, being deemed of immediate importance, takes
 effect upon enactment and applies to disaster recovery housing
 project costs incurred on or after the effective date of this
 Act and before July 1, 2010.


                                                             
                               JOHN P. KIBBIE
                               President of the Senate


                                                             
                               PATRICK J. MURPHY
                               Speaker of the House

    I hereby certify that this bill originated in the Senate and
 is known as Senate File 457, Eighty=third General Assembly.


                                                             
                               MICHAEL E. MARSHALL
                               Secretary of the Senate
 Approved                , 2009


                                
 CHESTER J. CULVER
 Governor

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