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