House File 2070 HOUSE FILE BY JENKINS, DENNIS, and KURTENBACH Passed House, Date Passed Senate, Date Vote: Ayes Nays Vote: Ayes Nays Approved A BILL FOR 1 An Act relating to the financing and approval of projects 2 utilizing revenue bonds undertaken at institutions of higher 3 education under the control of the state board of regents. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 5 TLSB 5392YH 80 6 kh/cf/24 PAG LIN 1 1 Section 1. Section 262A.12, Code 2003, is amended to read 1 2 as follows: 1 3 262A.12 APPLICATION FOR GIFTS, LOANS OR GRANTS. 1 4 1. The state board of regents is authorized to apply for 1 5 and accept federal or nonfederal gifts, loans, or grants of 1 6 funds and to use the same to pay all or any part of the cost 1 7 of carrying out any project at any institution under the terms 1 8 of this chapter or to use the same, together with student fees 1 9 and charges and institutional income, for the payment of debt 1 10 service on bonds issued and to be issued by the board pursuant 1 11 to authority contained in this chapter, in such manner as may 1 12 be provided in the resolution authorizing the issuance of the 1 13 bonds, which grants of funds or other aid shall be considered 1 14 to constitute and may be commingled with student fees and 1 15 charges and institutional income and may, together with such 1 16 student fees and charges and institutional income, be pledged 1 17 by the board in accordance with the provisions of this chapter 1 18 and the bond resolution to the payment of debt service on 1 19 bonds issued by the board under the authority contained in 1 20 this chapter. 1 21 2. Unless the board unanimously favors disapproval of a 1 22 motion to undertake and carry out a project or to approve a 1 23 resolution to issue bonds for a project proposed in accordance 1 24 with section 262A.7, the board shall issue bonds for the 1 25 project, in such a manner as provided in the resolution 1 26 authorizing the issuance of bonds pursuant to section 262A.4, 1 27 if at least sixty=five percent of the estimated cost of 1 28 completing the project is raised from private sources, a 1 29 creditable plan exists for repayment of the bonds, and at 1 30 least ten percent of that funding has been received by the 1 31 treasurer of the institution of higher education under the 1 32 control of the board at which the project is to be undertaken, 1 33 or by a nonprofit foundation authorized to act solely for the 1 34 support of the institution by the board in accordance with 1 35 section 262.9, subsection 8. 2 1 EXPLANATION 2 2 This bill directs the state board of regents to issue 2 3 revenue bonds for a project at one of its universities if the 2 4 university has raised from private sources at least 65 percent 2 5 of the estimated cost of the project, there exists a 2 6 creditable plan for bond repayment, and the institution or its 2 7 nonprofit foundation has 10 percent of that private funding in 2 8 hand, unless the board unanimously favors disapproval of the 2 9 motion to carry out the project or to approve the resolution 2 10 to bond for the project. 2 11 LSB 5392YH 80 2 12 kh/cf/24.2