House File 2438
HOUSE FILE
BY FREVERT
Passed House, Date Passed Senate, Date
Vote: Ayes Nays Vote: Ayes Nays
Approved
A BILL FOR
1 An Act relating to funding aviation assistance programs through
2 the issuance of tax=exempt bonds and making appropriations.
3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
4 TLSB 6084YH 80
5 tm/gg/14
PAG LIN
1 1 Section 1. Section 8.57, subsection 5, paragraph e, Code
1 2 Supplement 2003, is amended to read as follows:
1 3 e. Notwithstanding provisions to the contrary in sections
1 4 99D.17 and 99F.11, for the fiscal year beginning July 1, 2000
1 5 2003, and for each fiscal year thereafter ending June 30,
1 6 2004, not more than a total of sixty million dollars shall be
1 7 deposited in the general fund of the state in any the fiscal
1 8 year pursuant to sections 99D.17 and 99F.11; for the fiscal
1 9 period beginning July 1, 2004, and ending June 30, 2020, not
1 10 more than a total of four million dollars of the moneys
1 11 directed to be deposited in the general fund of the state in a
1 12 fiscal year pursuant to sections 99D.17 and 99F.11 shall be
1 13 deposited in the grow Iowa values fund created in section
1 14 15G.108 in any fiscal year, and not more than a total of
1 15 fifty=six million dollars shall be deposited in the general
1 16 fund of the state in any fiscal year; and for the fiscal year
1 17 beginning July 1, 2020, and for each fiscal year thereafter,
1 18 not more than a total of sixty million dollars shall be
1 19 deposited in the general fund of the state pursuant to
1 20 sections 99D.17 and 99F.11. The next fifteen million dollars
1 21 of the moneys directed to be deposited in the general fund of
1 22 the state in a fiscal year pursuant to sections 99D.17 and
1 23 99F.11 shall be deposited in the vision Iowa fund created in
1 24 section 12.72 for the fiscal year beginning July 1, 2000, and
1 25 for each fiscal year through the fiscal year beginning July 1,
1 26 2019. The next five million dollars of the moneys directed to
1 27 be deposited in the general fund of the state in a fiscal year
1 28 pursuant to sections 99D.17 and 99F.11 shall be deposited in
1 29 the school infrastructure fund created in section 12.82 for
1 30 the fiscal year beginning July 1, 2000, and for each fiscal
1 31 year thereafter until the principal and interest on all bonds
1 32 issued by the treasurer of state pursuant to section 12.81 are
1 33 paid, as determined by the treasurer of state. The total
1 34 moneys in excess of the moneys deposited in the general fund
1 35 of the state, the grow Iowa values fund, the vision Iowa fund,
2 1 and the school infrastructure fund in a fiscal year shall be
2 2 deposited in the rebuild Iowa infrastructure fund and shall be
2 3 used as provided in this section, notwithstanding section
2 4 8.60.
2 5 If the total amount of moneys directed to be deposited in
2 6 the general fund of the state under sections 99D.17 and 99F.11
2 7 in a fiscal year is less than the total amount of moneys
2 8 directed to be deposited in the grow Iowa values fund, the
2 9 vision Iowa fund, and the school infrastructure fund in the
2 10 fiscal year pursuant to this paragraph "e", the difference
2 11 shall be paid from lottery revenues in the manner provided in
2 12 section 99G.39, subsection 3.
2 13 Sec. 2. NEW SECTION. 12.91 GENERAL AND SPECIFIC BONDING
2 14 POWERS.
2 15 1. The treasurer of state may issue bonds for the purpose
2 16 of funding the grow Iowa values fund created in section
2 17 15G.108. The treasurer of state shall have all of the powers
2 18 which are necessary to issue and secure bonds and carry out
2 19 the purposes of the fund. The treasurer of state may issue
2 20 bonds in principal amounts which are necessary to provide
2 21 sufficient funds for the grow Iowa values fund, the payment of
2 22 interest on the bonds, the establishment of reserves to secure
2 23 the bonds, the costs of issuance of the bonds, other
2 24 expenditures of the treasurer of state incident to and
2 25 necessary or convenient to carry out the bond issue for the
2 26 fund, and all other expenditures of the board necessary or
2 27 convenient to administer the fund. The bonds are investment
2 28 securities and negotiable instruments within the meaning of
2 29 and for purposes of the uniform commercial code.
2 30 2. Bonds issued under this section are payable solely and
2 31 only out of the moneys, assets, or revenues of the grow Iowa
2 32 values fund and any bond reserve funds established pursuant to
2 33 section 12.92, all of which may be deposited with trustees or
2 34 depositories in accordance with bond or security documents and
2 35 pledged to the payment thereof. Bonds issued under this
3 1 section shall contain on their face a statement that the bonds
3 2 do not constitute an indebtedness of the state. The treasurer
3 3 of state shall not pledge the credit or taxing power of this
3 4 state or any political subdivision of the state or make bonds
3 5 issued pursuant to this section payable out of any moneys
3 6 except those in the grow Iowa values fund.
3 7 3. The proceeds of bonds issued by the treasurer of state
3 8 and not required for immediate disbursement may be deposited
3 9 with a trustee or depository as provided in the bond documents
3 10 and invested or reinvested in any investment as directed by
3 11 the treasurer of state and specified in the trust indenture,
3 12 resolution, or other instrument pursuant to which the bonds
3 13 are issued without regard to any limitation otherwise provided
3 14 by law.
3 15 4. The bonds shall be:
3 16 a. In a form, issued in denominations, executed in a
3 17 manner, and payable over terms and with rights of redemption,
3 18 and be subject to the terms, conditions, and covenants
3 19 providing for the payment of the principal of, redemption
3 20 premiums, if any, interest which may be fixed or variable
3 21 during any period the bonds are outstanding, and such other
3 22 terms and conditions as prescribed in the trust indenture,
3 23 resolution, or other instrument authorizing their issuance.
3 24 b. Negotiable instruments under the laws of the state and
3 25 may be sold at prices, at public or private sale, and in a
3 26 manner, as prescribed by the treasurer of state. Chapters
3 27 73A, 74, 74A, and 75 do not apply to the sale or issuance of
3 28 the bonds.
3 29 c. Subject to the terms, conditions, and covenants
3 30 providing for the payment of the principal, redemption
3 31 premiums, if any, interest, and other terms, conditions,
3 32 covenants, and protective provisions safeguarding payment, not
3 33 inconsistent with this section and as determined by the trust
3 34 indenture, resolution, or other instrument authorizing their
3 35 issuance.
4 1 5. The bonds are securities in which public officers and
4 2 bodies of this state, political subdivisions of this state,
4 3 insurance companies and associations and other persons
4 4 carrying on an insurance business; banks, trust companies,
4 5 savings associations, savings and loan associations, and
4 6 investment companies; administrators, guardians, executors,
4 7 trustees, and other fiduciaries; and other persons authorized
4 8 to invest in bonds or other obligations of the state may
4 9 properly and legally invest funds, including capital, in their
4 10 control or belonging to them.
4 11 6. Bonds must be authorized by a trust indenture,
4 12 resolution, or other instrument of the treasurer of state.
4 13 7. Neither the resolution, trust indenture, nor any other
4 14 instrument by which a pledge is created needs to be recorded
4 15 or filed under the Iowa uniform commercial code to be valid,
4 16 binding, or effective.
4 17 8. Bonds issued under the provisions of this section are
4 18 declared to be issued for a general public and governmental
4 19 purpose and all bonds issued under this section shall be
4 20 exempt from taxation by the state of Iowa and the interest on
4 21 the bonds shall be exempt from the state income tax and the
4 22 state inheritance and estate tax.
4 23 9. Subject to the terms of any bond documents, moneys in
4 24 the grow Iowa values fund may be expended for administration
4 25 expenses.
4 26 10. The treasurer of state may issue bonds for the purpose
4 27 of refunding any bonds issued pursuant to this section then
4 28 outstanding, including the payment of any redemption premiums
4 29 thereon and any interest accrued or to accrue to the date of
4 30 redemption of the outstanding bonds. Until the proceeds of
4 31 bonds issued for the purpose of refunding outstanding bonds
4 32 are applied to the purchase or retirement of outstanding bonds
4 33 or the redemption of outstanding bonds, the proceeds may be
4 34 placed in escrow and be invested and reinvested in accordance
4 35 with the provisions of this section. The interest, income,
5 1 and profits earned or realized on an investment may also be
5 2 applied to the payment of the outstanding bonds to be refunded
5 3 by purchase, retirement, or redemption. After the terms of
5 4 the escrow have been fully satisfied and carried out, any
5 5 balance of proceeds and interest earned or realized on the
5 6 investments may be returned to the treasurer of state for
5 7 deposit in the grow Iowa values fund established in section
5 8 15G.108. All refunding bonds shall be issued and secured and
5 9 subject to the provisions of this chapter in the same manner
5 10 and to the same extent as other bonds issued pursuant to this
5 11 section.
5 12 11. The treasurer of state shall have all of the powers
5 13 which are necessary to issue and secure bonds, including but
5 14 not limited to the power to procure insurance, other credit
5 15 enhancements, and other financing arrangements, and to execute
5 16 instruments and contracts and to enter into agreements
5 17 convenient or necessary to facilitate financing arrangements
5 18 with respect to the bonds and to carry out the purposes of the
5 19 grow Iowa values fund, including but not limited to such
5 20 arrangements, instruments, contracts, and agreements as
5 21 municipal bond insurance, self=insurance or liquidity trusts,
5 22 accounts, pools or other arrangements, liquidity facilities or
5 23 covenants, letters of credit, and interest rate agreements.
5 24 12. For purposes of this section and sections 12.92
5 25 through 12.95, the term "bonds" means bonds, notes, and other
5 26 obligations and financing arrangements issued or entered into
5 27 by the treasurer of state and the term "interest rate
5 28 agreement" means an interest rate swap or exchange agreement,
5 29 an agreement establishing an interest rate floor or ceiling or
5 30 both, or any similar agreement. Any such agreement may
5 31 include the option to enter into or cancel the agreement or to
5 32 reverse or extend the agreement.
5 33 Sec. 3. NEW SECTION. 12.92 GROW IOWA VALUES FUND
5 34 ACCOUNTS AND RESERVE FUNDS.
5 35 1. The treasurer of state shall establish such accounts
6 1 within the grow Iowa values fund created in section 15G.108 as
6 2 may be appropriate, including debt service accounts for the
6 3 purpose of paying the principal of, redemption premium, if
6 4 any, and interest on bonds payable therefrom. Moneys in the
6 5 debt service accounts shall not be subject to appropriation
6 6 for any other purpose by the general assembly, but shall be
6 7 used only for the purposes of paying the principal of,
6 8 redemption premium, if any, and interest on the bonds payable
6 9 therefrom.
6 10 2. Revenue for the grow Iowa values fund shall include,
6 11 but is not limited to, the following, which shall be deposited
6 12 with the treasurer of state or the treasurer's designee as
6 13 provided by any bond or security documents and credited to the
6 14 debt service account:
6 15 a. The proceeds of bonds issued to capitalize and pay the
6 16 costs of the fund and investment earnings on the proceeds.
6 17 b. Interest attributable to investment of moneys in the
6 18 fund or an account of the fund.
6 19 c. Moneys in the form of a devise, gift, bequest,
6 20 donation, federal or other grant, reimbursement, repayment,
6 21 judgment, transfer, payment, or appropriation from any source
6 22 intended to be used for the purposes of the fund or account.
6 23 3. a. The treasurer of state may create and establish one
6 24 or more special funds, to be known as "bond reserve funds", to
6 25 secure one or more issues of bonds issued pursuant to section
6 26 12.91. The treasurer of state shall pay into each bond
6 27 reserve fund any moneys appropriated and made available by the
6 28 state or treasurer of state for the purpose of the fund, any
6 29 proceeds of sale of bonds to the extent provided in the
6 30 resolutions or trust indentures authorizing their issuance,
6 31 and any other moneys which may be available to the treasurer
6 32 of state for the purpose of the fund from any other sources.
6 33 All moneys held in a bond reserve fund, except as otherwise
6 34 provided in this chapter, shall be used as required solely for
6 35 the payment of the principal of bonds secured in whole or in
7 1 part by the fund or of the sinking fund payments with respect
7 2 to the bonds, the purchase or redemption of the bonds, the
7 3 payment of interest on the bonds, or the payments of any
7 4 redemption premium required to be paid when the bonds are
7 5 redeemed prior to maturity.
7 6 b. Moneys in a bond reserve fund shall not be withdrawn
7 7 from it at any time in an amount that will reduce the amount
7 8 of the fund to less than the bond reserve fund requirement
7 9 established for the fund, as provided in this subsection,
7 10 except for the purpose of making, with respect to bonds
7 11 secured in whole or in part by the fund, payment when due of
7 12 principal, interest, redemption premiums, and the sinking fund
7 13 payments with respect to the bonds for the payment of which
7 14 other moneys of the treasurer of state are not available.
7 15 Any income or interest earned by, or incremental to, a bond
7 16 reserve fund due to the investment of it may be transferred by
7 17 the treasurer of state to other funds or accounts to the
7 18 extent the transfer does not reduce the amount of that bond
7 19 reserve fund below the bond reserve fund requirement for it.
7 20 c. The treasurer of state shall not at any time issue
7 21 bonds, secured in whole or in part by a bond reserve fund, if,
7 22 upon the issuance of the bonds, the amount in the bond reserve
7 23 fund will be less than the bond reserve fund requirement for
7 24 the fund, unless the treasurer of state at the time of
7 25 issuance of the bonds deposits in the fund from the proceeds
7 26 of the bonds issued or from other sources an amount which,
7 27 together with the amount then in the fund, will not be less
7 28 than the bond reserve fund requirement for the fund. For the
7 29 purposes of this subsection, the term "bond reserve fund
7 30 requirement" means, as of any particular date of computation,
7 31 an amount of money, as provided in the resolutions or trust
7 32 indentures authorizing the bonds with respect to which the
7 33 fund is established.
7 34 d. To assure the continued solvency of any bonds secured
7 35 by the bond reserve fund, provision is made in paragraph "a"
8 1 for the accumulation in each bond reserve fund of an amount
8 2 equal to the bond reserve requirement for the fund. In order
8 3 to further assure maintenance of the bond reserve funds, the
8 4 treasurer of state shall, on or before January 1 of each
8 5 calendar year, make and deliver to the governor the treasurer
8 6 of state's certificate stating the sum, if any, required to
8 7 restore each bond reserve fund to the bond reserve fund
8 8 requirement for that fund. Within thirty days after the
8 9 beginning of the session of the general assembly next
8 10 following the delivery of the certificate, the governor shall
8 11 submit to both houses printed copies of a budget including the
8 12 sum, if any, required to restore each bond reserve fund to the
8 13 bond reserve fund requirement for that fund. Any sums
8 14 appropriated by the general assembly and paid to the treasurer
8 15 of state pursuant to this subsection shall be deposited by the
8 16 treasurer of state in the applicable bond reserve fund.
8 17 Sec. 4. NEW SECTION. 12.93 PLEDGES.
8 18 1. It is the intention of the general assembly that a
8 19 pledge made in respect of bonds shall be valid and binding
8 20 from the time the pledge is made, that the moneys or property
8 21 so pledged and received after the pledge by the treasurer of
8 22 state shall immediately be subject to the lien of the pledge
8 23 without physical delivery or further act, and that the lien of
8 24 the pledge shall be valid and binding as against all parties
8 25 having claims of any kind in tort, contract, or otherwise
8 26 against the treasurer of state whether or not the parties have
8 27 notice of the lien.
8 28 2. The moneys set aside in a fund or funds pledged for any
8 29 series or issue of bonds shall be held for the sole benefit of
8 30 the series or issue separate and apart from moneys pledged for
8 31 another series or issue of bonds of the treasurer of state.
8 32 Bonds may be issued in series under one or more resolutions or
8 33 trust indentures and may be fully open=ended, thus providing
8 34 for the unlimited issuance of additional series, or partially
8 35 open=ended, limited as to additional series.
9 1 Sec. 5. NEW SECTION. 12.94 LIMITATIONS.
9 2 Bonds issued pursuant to section 12.91 are not debts of the
9 3 state, or of any political subdivision of the state, and do
9 4 not constitute a pledge of the faith and credit of the state
9 5 or a charge against the general credit or general fund of the
9 6 state. The issuance of any bonds pursuant to section 12.91 by
9 7 the treasurer of state does not directly, indirectly, or
9 8 contingently obligate the state or a political subdivision of
9 9 the state to apply moneys, or to levy or pledge any form of
9 10 taxation whatever, to the payment of the bonds. Bonds issued
9 11 under section 12.91 are payable solely and only from the "grow
9 12 Iowa values fund" and the sources and special fund and
9 13 accounts provided in section 12.92.
9 14 Sec. 6. NEW SECTION. 12.95 CONSTRUCTION.
9 15 Sections 12.91 through 12.94, being necessary for the
9 16 welfare of this state and its inhabitants, shall be liberally
9 17 construed to effect their purposes.
9 18 Sec. 7. Section 15G.108, Code Supplement 2003, is amended
9 19 to read as follows:
9 20 15G.108 GROW IOWA VALUES FUND.
9 21 A grow Iowa values fund is created and established as a
9 22 separate and distinct fund in the state treasury under the
9 23 control of the grow Iowa values board consisting of moneys
9 24 appropriated to the grow Iowa values board. Moneys in the
9 25 fund are not subject to section 8.33. Notwithstanding section
9 26 12C.7, interest or earnings on moneys in the fund shall be
9 27 credited to the fund. Moneys in the fund shall not be subject
9 28 to appropriation for any purposes by the general assembly
9 29 other than as provided in this Act and 2003 Iowa Acts, First
9 30 Extraordinary Session, chapter 2. The treasurer of state
9 31 shall act as custodian of the fund and disburse moneys
9 32 contained in the fund as directed by the grow Iowa values
9 33 board, including automatic disbursements of moneys received
9 34 pursuant to the terms of bond indentures and documents and
9 35 security provisions to trustees. The fund shall be
10 1 administered by the grow Iowa values board, which shall make
10 2 expenditures from the fund consistent with this chapter and
10 3 pertinent Acts of the general assembly. Any financial
10 4 assistance provided using moneys from the fund may be provided
10 5 over a period of time of more than one year. Payments of
10 6 interest, repayments of moneys loaned pursuant to this
10 7 chapter, and recaptures of grants or loans shall be deposited
10 8 in the fund.
10 9 Sec. 8. Section 15G.110, Code Supplement 2003, is amended
10 10 to read as follows:
10 11 15G.110 FUTURE CONSIDERATION.
10 12 Not later than February 1, 2007, the legislative services
10 13 agency shall prepare and deliver to the secretary of the
10 14 senate and the chief clerk of the house of representatives
10 15 identical bills that repeal the provisions of this chapter,
10 16 with the exception of sections 15G.101, 15G.102, 15G.103, and
10 17 15G.108. It is the intent of this section that the general
10 18 assembly shall bring the bill to a vote in either the senate
10 19 or the house of representatives expeditiously. It is further
10 20 the intent of this chapter that if the bill is approved by the
10 21 first house in which it is considered, it shall expeditiously
10 22 be brought to a vote in the second house.
10 23 Sec. 9. Section 99G.39, subsection 3, paragraph a, Code
10 24 Supplement 2003, is amended to read as follows:
10 25 a. Notwithstanding subsection 1, if gaming revenues under
10 26 sections 99D.17 and 99F.11 are insufficient in a fiscal year
10 27 to meet the total amount of such revenues directed to be
10 28 deposited in the grow Iowa values fund, the vision Iowa fund,
10 29 and the school infrastructure fund during the fiscal year
10 30 pursuant to section 8.57, subsection 5, paragraph "e", the
10 31 difference shall be paid from lottery revenues prior to
10 32 deposit of the lottery revenues in the general fund. If
10 33 lottery revenues are insufficient during the fiscal year to
10 34 pay the difference, the remaining difference shall be paid
10 35 from lottery revenues in subsequent fiscal years as such
11 1 revenues become available.
11 2 Sec. 10. 2003 Iowa Acts, First Extraordinary Session,
11 3 chapter 1, section 114, is amended to read as follows:
11 4 SEC. 114. The divisions of this Act designated the grow
11 5 Iowa values board and fund, with the exception of sections
11 6 15G.101, 15G.102, 15G.103, and 15G.108, Code Supplement 2003,
11 7 the value=added agricultural products and processes financial
11 8 assistance program, the endow Iowa grants, the technology
11 9 transfer advisors, the Iowa economic development loan and
11 10 credit guarantee fund, the economic development assistance and
11 11 data collection, the cultural and entertainment districts, the
11 12 workforce issues, and the university=based research
11 13 utilization program, are repealed effective June 30, 2010.
11 14 Sec. 11. AVIATION ASSISTANCE PROGRAMS.
11 15 1. There is appropriated from the grow Iowa values fund
11 16 created in section 15G.108 to the state department of
11 17 transportation for the fiscal period beginning July 1, 2004,
11 18 and ending June 30, 2009, the following amounts, or so much
11 19 thereof as is necessary, to be used for the purpose
11 20 designated:
11 21 For aviation assistance programs:
11 22 FY 2004=2005 ..................................... $ 8,000,000
11 23 FY 2005=2006 ..................................... $ 8,000,000
11 24 FY 2006=2007 ..................................... $ 8,000,000
11 25 FY 2007=2008 ..................................... $ 8,000,000
11 26 FY 2008=2009 ..................................... $ 8,000,000
11 27 2. Notwithstanding section 8.33, moneys appropriated in
11 28 this section that remain unencumbered or unobligated at the
11 29 end of a fiscal year shall not revert but shall remain
11 30 available for expenditure for the purpose designated during
11 31 the succeeding fiscal year.
11 32 EXPLANATION
11 33 This bill relates to the funding of aviation assistance
11 34 programs through the issuance of tax=exempt bonds.
11 35 The bill amends a provision in Code section 8.57, which
12 1 provides for the annual deposit of gambling revenues in the
12 2 general fund of the state and other funds. Currently, the
12 3 first $60 million of gambling revenues is deposited in the
12 4 general fund of the state and the remaining moneys are
12 5 deposited in the vision Iowa fund, the school infrastructure
12 6 fund, and the rebuild Iowa infrastructure fund. The bill
12 7 provides that for the fiscal period beginning July 1, 2004,
12 8 and ending June 30, 2020, $56 million will be deposited in the
12 9 general fund of the state, $4 million will be deposited in the
12 10 grow Iowa values fund, and the deposits for the vision Iowa
12 11 fund, the school infrastructure fund, and the rebuild Iowa
12 12 infrastructure fund remain unchanged. The deposits return to
12 13 the manner in which they are currently distributed in the
12 14 fiscal year beginning July 1, 2020. The bill provides that if
12 15 gambling revenues directed to be deposited in the grow Iowa
12 16 values fund, the vision Iowa fund, and the school
12 17 infrastructure fund are insufficient to fully fund the
12 18 required deposits in a fiscal year, the difference shall be
12 19 paid from lottery revenues.
12 20 The bill allows the treasurer of state to issue bonds for
12 21 the purpose of funding the grow Iowa values fund. The bill
12 22 amends Code section 15G.108 relating to the grow Iowa values
12 23 fund due to the funding of the fund through the issuance of
12 24 bonds. The bill provides that the treasurer of state may
12 25 issue bonds in principal amounts which are necessary to
12 26 provide sufficient funds for the grow Iowa values fund, the
12 27 payment of interest on the bonds, the establishment of
12 28 reserves to secure the bonds, the costs of issuance of the
12 29 bonds, other expenditures incident to and necessary or
12 30 convenient to carry out the bond issue, and all other
12 31 expenditures of the grow Iowa values board necessary or
12 32 convenient to administer the fund.
12 33 The bill provides that the bonds are payable solely and
12 34 only out of the moneys, assets, or revenues of the grow Iowa
12 35 values fund and any bond reserve funds. The bill provides
13 1 that the bonds shall contain on their face a statement that
13 2 the bonds do not constitute an indebtedness of the state and
13 3 that the treasurer of state shall not pledge the credit or
13 4 taxing power of this state or any political subdivision of
13 5 this state or make the bonds payable out of any moneys except
13 6 those in the grow Iowa values fund. The bill provides that
13 7 the proceeds of the bonds not required for immediate
13 8 disbursement may be deposited with a trustee or depository as
13 9 provided in the bond documents and invested or reinvested in
13 10 any investment as directed by the treasurer of state and
13 11 specified in the trust indenture, resolution, or other
13 12 instrument pursuant to which the bonds are issued without
13 13 regard to any limitation otherwise provided by law. The bill
13 14 provides certain requirements for the bonds, including the
13 15 form of the bonds, that the bonds must be negotiable
13 16 instruments under the laws of the state, and certain terms,
13 17 conditions, and covenants for the bonds. The bill provides
13 18 for who may invest in the bonds. The bill provides that the
13 19 bonds must be authorized by a trust indenture, resolution, or
13 20 other instrument of the treasurer of state. The bill provides
13 21 that neither the resolution, trust agreement, nor any other
13 22 instrument by which a pledge is created needs to be recorded
13 23 or filed under the Iowa uniform commercial code to be valid,
13 24 binding, or effective.
13 25 The bill provides that the bonds are declared to be issued
13 26 for a general public and governmental purpose and all bonds
13 27 issued under the bill's provisions shall be exempt from
13 28 taxation by the state of Iowa and the interest on the bonds
13 29 shall be exempt from the state income tax and the state
13 30 inheritance and estate tax. The bill provides that, subject
13 31 to the terms of any bond documents, moneys in the grow Iowa
13 32 values fund may be expended for administration expenses. The
13 33 bill provides that the treasurer of state may issue bonds for
13 34 the purpose of refunding any bonds or notes issued pursuant to
13 35 this section then outstanding, including the payment of any
14 1 redemption premiums thereon and any interest accrued or to
14 2 accrue to the date of redemption of the outstanding bonds or
14 3 notes.
14 4 The bill requires the treasurer of state to establish
14 5 accounts within the grow Iowa values fund as may be
14 6 appropriate. The bill defines what revenue for the grow Iowa
14 7 values fund shall be deposited with the treasurer of state or
14 8 the treasurer's designee as provided by any bond or security
14 9 documents and credited to the debt service account. The bill
14 10 provides that the treasurer of state may create and establish
14 11 one or more special funds, to be known as "bond reserve
14 12 funds", to secure one or more issues of bonds. The bill
14 13 provides that moneys in a bond reserve fund shall not be
14 14 withdrawn from it at any time in an amount that will reduce
14 15 the amount of the fund to less than the bond reserve fund
14 16 requirement established for the fund, except for the purpose
14 17 of making, with respect to bonds secured in whole or in part
14 18 by the fund, payment when due of principal, interest,
14 19 redemption premiums, and the sinking fund payments with
14 20 respect to the bonds for the payment of which other moneys of
14 21 the treasurer are not available. The bill provides that the
14 22 treasurer of state shall not at any time issue bonds, secured
14 23 in whole or in part by a bond reserve fund if, upon the
14 24 issuance of the bonds, the amount in the bond reserve fund
14 25 will be less than the bond reserve fund requirement for the
14 26 fund, unless the treasurer at the time of issuance of the
14 27 bonds deposits in the fund from the proceeds of the bonds
14 28 issued or from other sources an amount which, together with
14 29 the amount then in the fund, will not be less than the bond
14 30 reserve fund requirement for the fund. The bill provides for
14 31 the continued solvency of any bonds secured by a bond reserve
14 32 fund.
14 33 The bill provides that it is the intent of the general
14 34 assembly that a pledge made in respect of bonds shall be valid
14 35 and binding from the time the pledge is made, that the moneys
15 1 or property so pledged and received after the pledge by the
15 2 treasurer of state shall immediately be subject to the lien of
15 3 the pledge without physical delivery or further act, and that
15 4 the lien of the pledge shall be valid and binding as against
15 5 all parties having claims of any kind in tort, contract, or
15 6 otherwise against the treasurer of state whether or not the
15 7 parties have notice of the lien.
15 8 The bill provides that the bonds are not debts of the
15 9 state, or of any political subdivision of the state, and do
15 10 not constitute a pledge of the faith and credit of the state
15 11 or a charge against the general credit or general fund of the
15 12 state.
15 13 The bill appropriates from the grow Iowa values fund to the
15 14 department of transportation for the fiscal period beginning
15 15 July 1, 2004, and ending June 30, 2009, $8 million per fiscal
15 16 year for use in aviation assistance programs.
15 17 LSB 6084YH 80
15 18 tm/gg/14