House File 2439
HOUSE FILE
BY PETERSEN, BUKTA, MASCHER, STEVENS,
WINCKLER, GASKILL, LENSING, GREIMANN,
MILLER, JOCHUM, T. TAYLOR, D. TAYLOR,
D. OLSON, SMITH, BELL, COHOON,
WHITEAD, WENDT, THOMAS, JACOBY,
FORD, SHOMSHOR, STRUYK, FREVERT,
DANDEKAR, KUHN, LYKAM, REASONER,
HEDDENS, and WHITAKER
Passed House, Date Passed Senate, Date
Vote: Ayes Nays Vote: Ayes Nays
Approved
A BILL FOR
1 An Act relating to economic development and regulatory matters at
2 the state and local level, authorizing issuance of tax=exempt
3 bonds and tax credits, making appropriations, and providing a
4 retroactive applicability date.
5 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
6 TLSB 6043YH 80
7 tm/sh/8
PAG LIN
1 1 DIVISION I == REGULATORY EFFICIENCY COMMISSION
1 2 Section 1. REGULATORY EFFICIENCY COMMISSION.
1 3 1. A regulatory efficiency commission is established for
1 4 purposes of identifying unneeded regulations, fines, and fees
1 5 that hinder business development. The commission shall also
1 6 identify methods for streamlining access to regulatory
1 7 information.
1 8 2. The commission shall consist of seven voting members
1 9 appointed by the governor and four ex officio members.
1 10 a. The seven voting members appointed by the governor are
1 11 subject to the requirements of sections 69.16, 69.16A, and
1 12 69.19. The seven members shall consist of the following:
1 13 (1) Two members shall be economic development
1 14 representatives from two different chambers of commerce. One
1 15 shall be from a metropolitan area with more than fifty
1 16 thousand people and one shall be from a metropolitan area with
1 17 fifty thousand people or less.
1 18 (2) Two members representing agricultural interests.
1 19 (3) One member representing the Iowa association of
1 20 business and industry.
1 21 (4) Two members representing commercial=based and
1 22 manufacturing=based businesses.
1 23 b. The four ex officio members shall be members of the
1 24 general assembly. Two members shall be from the senate and
1 25 two members shall be from the house of representatives, with
1 26 not more than one member from each chamber being from the same
1 27 political party. The two senators shall be designated by the
1 28 president of the senate after consultation with the majority
1 29 and minority leaders of the senate. The two representatives
1 30 shall be designated by the speaker of the house of
1 31 representatives after consultation with the majority and
1 32 minority leaders of the house of representatives. Legislative
1 33 members shall serve in an ex officio, nonvoting capacity.
1 34 3. Meetings of the commission are subject to the
1 35 provisions of chapter 21.
2 1 4. By January 10, 2005, the commission shall submit a
2 2 written report to the governor and the general assembly. The
2 3 report shall include the findings and legislative
2 4 recommendations of the commission. The report shall be
2 5 distributed by the secretary of the senate and the chief clerk
2 6 of the house of representatives to the chairpersons and
2 7 members of the administrative rules review committee and the
2 8 economic growth committees in the senate and the house of
2 9 representatives.
2 10 DIVISION II == PARTNERSHIP COMMISSION
2 11 Sec. 2. PARTNERSHIP COMMISSION.
2 12 1. A partnership commission is established for purposes of
2 13 identifying unnecessary public mandates for elimination and
2 14 providing recommendations designed to encourage city and
2 15 county governments to share services.
2 16 2. The commission shall consist of seven voting members
2 17 appointed by the governor and four ex officio members.
2 18 a. The seven voting members appointed by the governor are
2 19 subject to the requirements of sections 69.16, 69.16A, and
2 20 69.19. The seven members shall consist of representatives
2 21 from various sized cities and counties.
2 22 b. The four ex officio members shall be members of the
2 23 general assembly. Two members shall be from the senate and
2 24 two members shall be from the house of representatives, with
2 25 not more than one member from each chamber being from the same
2 26 political party. The two senators shall be designated by the
2 27 president of the senate after consultation with the majority
2 28 and minority leaders of the senate. The two representatives
2 29 shall be designated by the speaker of the house of
2 30 representatives after consultation with the majority and
2 31 minority leaders of the house of representatives. Legislative
2 32 members shall serve in an ex officio, nonvoting capacity.
2 33 3. Meetings of the commission are subject to the
2 34 provisions of chapter 21.
2 35 4. By January 10, 2005, the commission shall submit a
3 1 written report to the governor and the general assembly. The
3 2 report shall include the findings and legislative
3 3 recommendations of the commission. The report shall be
3 4 distributed by the secretary of the senate and the chief clerk
3 5 of the house of representatives to the chairpersons and
3 6 members of the administrative rules review committee and the
3 7 state government committees in the senate and the house of
3 8 representatives.
3 9 DIVISION III == REGIONAL ECONOMIC DEVELOPMENT ==
3 10 APPROPRIATIONS
3 11 Sec. 3. NEW SECTION. 15E.231 ECONOMIC DEVELOPMENT
3 12 REGIONS.
3 13 1. In order for an economic development region to receive
3 14 moneys from the grow Iowa values fund created in section
3 15 15G.108, the organization of an economic development region
3 16 must be approved by the grow Iowa values board established in
3 17 section 15G.102. The board shall approve an economic
3 18 development region that meets the following criteria:
3 19 a. The region consists of not less than three contiguous
3 20 counties. Upon the recommendation of the director of the
3 21 department of economic development, this paragraph may be
3 22 waived by the board.
3 23 b. The region establishes a single, focused economic
3 24 development effort, approved by the board, that shall include
3 25 the development of a regional development plan and regional
3 26 marketing strategies. Regional marketing strategies must be
3 27 focused on marketing the region collectively.
3 28 2. An approved economic development region may create an
3 29 economic development region revolving fund as provided in
3 30 section 15E.232.
3 31 Sec. 4. NEW SECTION. 15E.232 ECONOMIC DEVELOPMENT REGION
3 32 REVOLVING FUNDS == TAX CREDITS.
3 33 1. An economic development region approved pursuant to
3 34 section 15E.231 may create an economic development region
3 35 revolving fund.
4 1 2. a. A nongovernmental entity making a contribution to
4 2 an economic development region revolving fund at any time
4 3 prior to July 1, 2009, may claim a tax credit equal to twenty
4 4 percent of the amount contributed to the revolving fund. The
4 5 tax credit shall be allowed against taxes imposed in chapter
4 6 422, divisions II, III, and V, and in chapter 432, and against
4 7 the moneys and credits tax imposed in section 533.24. An
4 8 individual may claim under this subsection the tax credit of a
4 9 partnership, limited liability company, S corporation, estate,
4 10 or trust electing to have income taxed directly to the
4 11 individual. The amount claimed by the individual shall be
4 12 based upon the pro rata share of the individual's earnings
4 13 from the partnership, limited liability company, S
4 14 corporation, estate, or trust. Any tax credit in excess of
4 15 the taxpayer's liability for the tax year may be credited to
4 16 the tax liability for the following seven years or until
4 17 depleted, whichever occurs first. A tax credit shall not be
4 18 carried back to a tax year prior to the tax year in which the
4 19 taxpayer redeems the tax credit. A tax credit under this
4 20 section is not transferable.
4 21 b. The aggregate amount of tax credits authorized pursuant
4 22 to this subsection shall not total more than twenty million
4 23 dollars. The total amount of tax credits authorized during a
4 24 fiscal year shall not exceed four million dollars plus any
4 25 unused tax credits carried over from previous years. Any tax
4 26 credits which remain unused for a fiscal year may be carried
4 27 forward to the succeeding fiscal year. The maximum amount of
4 28 tax credits that may be authorized in a fiscal year for
4 29 contributions made to a specific economic development region
4 30 revolving fund is equal to four million dollars plus any
4 31 unused tax credits carried over from previous years divided by
4 32 the number of economic development region revolving funds
4 33 existing in the state.
4 34 c. The department of economic development shall administer
4 35 the authorization of tax credits under this section and shall,
5 1 in cooperation with the department of revenue and finance,
5 2 adopt rules pursuant to chapter 17A necessary for the
5 3 administration of this section.
5 4 3. An approved economic development region may apply for
5 5 financial assistance from the Iowa values fund to assist with
5 6 physical infrastructure needs related to a specific business
5 7 partner. In order to receive financial assistance pursuant to
5 8 this subsection, the economic development region must
5 9 demonstrate all of the following:
5 10 a. The ability to provide matching moneys on a one to one
5 11 basis.
5 12 b. The commitment of the specific business partner.
5 13 c. That all other funding alternatives have been
5 14 exhausted.
5 15 4. An approved economic development region may apply for
5 16 financial assistance from the Iowa values fund to assist an
5 17 existing business located in the economic development region
5 18 impacted by business consolidation actions. Business
5 19 consolidation actions include a substantial or total closure
5 20 of an existing business due to consolidating the existing
5 21 business out of state. In order to receive financial
5 22 assistance pursuant to this subsection, the economic
5 23 development region must demonstrate the ability to provide
5 24 matching moneys on a one=to=one basis.
5 25 5. An approved economic development region may apply for
5 26 financial assistance to implement economic development
5 27 initiatives unique to the region. In order to receive
5 28 financial assistance pursuant to this subsection, the economic
5 29 development region must demonstrate the ability to provide
5 30 matching moneys on a one=to=one basis.
5 31 6. An approved economic development region may apply for
5 32 financial assistance to implement innovative initiatives that
5 33 do not qualify for assistance under subsection 5.
5 34 7. The board may establish and administer a regional
5 35 economic development revenue sharing pilot project for one or
6 1 more regions. Not more than three pilot projects shall be
6 2 established. The department of economic development shall
6 3 provide technical assistance to the regions participating in a
6 4 pilot project.
6 5 8. Financial assistance under subsections 3, 4, 5, and 6
6 6 and section 15E.233 shall be limited to a total of twenty
6 7 million dollars.
6 8 Sec. 5. NEW SECTION. 15E.233 ECONOMICALLY ISOLATED
6 9 AREAS.
6 10 1. An approved economic development region may apply to
6 11 the Iowa values board for approval to be designated as an
6 12 economically isolated area. In order to be considered an
6 13 economically isolated area, the region must have at least one
6 14 county that meets all of the following criteria:
6 15 a. A majority of the land area of the county is located at
6 16 least forty miles away from a major commercial area, as
6 17 determined by the board. Major commercial areas include all
6 18 of the following:
6 19 (1) Burlington.
6 20 (2) Carroll.
6 21 (3) Cedar Rapids.
6 22 (4) Clinton.
6 23 (5) Council Bluffs.
6 24 (6) Davenport.
6 25 (7) Des Moines.
6 26 (8) Dubuque.
6 27 (9) Fort Dodge.
6 28 (10) Iowa City.
6 29 (11) Marshalltown.
6 30 (12) Mason City.
6 31 (13) Ottumwa.
6 32 (14) Sioux City.
6 33 (15) Spencer.
6 34 (16) Storm Lake.
6 35 (17) Waterloo.
7 1 b. The county has at least one of the following:
7 2 (1) Per capita income that ranks in the lowest twenty=five
7 3 counties in the state based on the 2000 census.
7 4 (2) An annualized average weekly wage for employees in
7 5 private business that ranks in the lowest twenty=five counties
7 6 in the state in calendar year 2000.
7 7 2. An approved economically isolated area may apply to the
7 8 department of economic development for up to seven hundred
7 9 fifty thousand dollars over a five=year period for purposes of
7 10 economic=development=related marketing assistance for the
7 11 area. In order to receive financial assistance pursuant to
7 12 this subsection, the economic development region must
7 13 demonstrate the ability to provide matching moneys on a one=
7 14 to=one basis.
7 15 Sec. 6. NEW SECTION. 422.11J ECONOMIC DEVELOPMENT REGION
7 16 REVOLVING FUND TAX CREDIT.
7 17 The taxes imposed under this division, less the credits
7 18 allowed under sections 422.12 and 422.12B, shall be reduced by
7 19 an economic development region revolving fund contribution tax
7 20 credit authorized pursuant to section 15E.232.
7 21 Sec. 7. Section 422.33, Code Supplement 2003, is amended
7 22 by adding the following new subsection:
7 23 NEW SUBSECTION. 16. The taxes imposed under this division
7 24 shall be reduced by an economic development region revolving
7 25 fund contribution tax credit authorized pursuant to section
7 26 15E.232.
7 27 Sec. 8. Section 422.60, Code Supplement 2003, is amended
7 28 by adding the following new subsection:
7 29 NEW SUBSECTION. 8. The taxes imposed under this division
7 30 shall be reduced by an economic development region revolving
7 31 fund contribution tax credit authorized pursuant to section
7 32 15E.232.
7 33 Sec. 9. NEW SECTION. 432.12E ECONOMIC DEVELOPMENT REGION
7 34 REVOLVING FUND CONTRIBUTION TAX CREDITS.
7 35 The tax imposed under this chapter shall be reduced by an
8 1 economic development region tax credit authorized pursuant to
8 2 section 15E.232.
8 3 Sec. 10. Section 533.24, Code Supplement 2003, is amended
8 4 by adding the following new subsection:
8 5 NEW SUBSECTION. 6. The moneys and credits tax imposed
8 6 under this section shall be reduced by an economic development
8 7 region revolving fund contribution tax credit authorized
8 8 pursuant to section 15E.232.
8 9 Sec. 11. ECONOMIC DEVELOPMENT REGION FINANCIAL ASSISTANCE
8 10 APPROPRIATION.
8 11 1. There is appropriated from the grow Iowa values fund
8 12 created in section 15G.108 to the department of economic
8 13 development for the fiscal year beginning July 1, 2004, and
8 14 ending June 30, 2005, the following amount, or so much thereof
8 15 as is necessary, to be used for the purpose designated:
8 16 For providing financial assistance under section 15E.232,
8 17 subsections 3, 4, 5, and 6 and under section 15E.233:
8 18 .................................................. $ 20,000,000
8 19 2. Notwithstanding section 8.33, moneys that remain
8 20 unexpended at the end of a fiscal year shall not revert to any
8 21 fund but shall remain available for expenditure for the
8 22 designated purposes during the succeeding fiscal year.
8 23 Sec. 12. ECONOMIC DEVELOPMENT REGION REVOLVING FUND
8 24 CONTRIBUTION TAX CREDITS APPROPRIATION.
8 25 1. There is appropriated from the grow Iowa values fund
8 26 created in section 15G.108 to the general fund of the state,
8 27 for the fiscal period beginning July 1, 2004, and ending June
8 28 30, 2008, the following amounts, or so much thereof as is
8 29 necessary, to be used for the purpose designated:
8 30 For payment of tax credits approved pursuant to section
8 31 15E.232:
8 32 FY 2004=2005 ..................................... $ 4,000,000
8 33 FY 2005=2006 ..................................... $ 4,000,000
8 34 FY 2006=2007 ..................................... $ 4,000,000
8 35 FY 2007=2008 ..................................... $ 4,000,000
9 1 FY 2008=2009 ..................................... $ 4,000,000
9 2 2. Notwithstanding section 8.33, moneys that remain
9 3 unexpended at the end of a fiscal year shall not revert to any
9 4 fund but shall remain available for expenditure for the
9 5 designated purposes during the succeeding fiscal year.
9 6 3. Any moneys appropriated under this section that remain
9 7 unexpended on June 30, 2009, are appropriated from the general
9 8 fund of the state to the department of economic development
9 9 for the fiscal year beginning July 1, 2009, and ending June
9 10 30, 2010, to be used for providing financial assistance under
9 11 section 15E.232, subsections 3, 4, 5, and 6.
9 12 Sec. 13. RETROACTIVE APPLICABILITY. The section of this
9 13 Act enacting section 15E.232, relating to the economic
9 14 development region revolving fund contribution tax credit, is
9 15 retroactively applicable to January 1, 2004, and is applicable
9 16 on and after that date.
9 17 DIVISION IV == APPROPRIATIONS
9 18 Sec. 14. Section 404A.4, subsection 4, Code Supplement
9 19 2003, is amended to read as follows:
9 20 4. The total amount of tax credits that may be approved
9 21 for a fiscal year under this chapter shall not exceed two
9 22 million four hundred thousand dollars. For the fiscal years
9 23 beginning July 1, 2005, and year beginning July 1, 2004, an
9 24 additional one million five hundred thousand dollars of tax
9 25 credits may be approved for purposes of projects located in
9 26 cultural and entertainment districts certified pursuant to
9 27 section 303.3B. For the fiscal year beginning July 1, 2005,
9 28 an additional two million dollars of tax credits may be
9 29 approved for purposes of projects located in cultural and
9 30 entertainment districts certified pursuant to section 303.3B.
9 31 For the fiscal year beginning July 1, 2006, an additional five
9 32 hundred thousand dollars of tax credits may be approved each
9 33 fiscal year for purposes of projects located in cultural and
9 34 entertainment districts certified pursuant to section 303.3B.
9 35 Any of the additional tax credits allocated for projects
10 1 located in certified cultural and entertainment districts that
10 2 are not approved during a fiscal year may be carried over to
10 3 the succeeding fiscal year. Tax credit certificates shall be
10 4 issued on the basis of the earliest awarding of certifications
10 5 of completion as provided in subsection 1. The departments of
10 6 economic development and revenue shall each adopt rules to
10 7 jointly administer this subsection and shall provide by rule
10 8 for the method to be used to determine for which fiscal year
10 9 the tax credits are approved.
10 10 Sec. 15. REHABILITATION PROJECT TAX CREDITS APPROPRIATION.
10 11 1. There is appropriated from the grow Iowa values fund to
10 12 the general fund of the state for each fiscal year of the
10 13 fiscal period beginning July 1, 2004, and ending June 30,
10 14 2006, the following amounts, or so much thereof as is
10 15 necessary, to be used for the purpose designated:
10 16 For payment of tax credits approved pursuant to section
10 17 404A.4 for projects located in certified cultural and
10 18 entertainment districts:
10 19 FY 2004=2005 ..................................... $ 1,500,000
10 20 FY 2005=2006 ..................................... $ 1,500,000
10 21 2. Notwithstanding section 8.33, moneys that remain
10 22 unexpended at the end of a fiscal year shall not revert to any
10 23 fund but shall remain available for expenditure for the
10 24 designated purposes during the succeeding fiscal year.
10 25 Sec. 16. COMMUNITY ATTRACTION AND TOURISM PROGRAM.
10 26 1. There is appropriated from the grow Iowa values fund to
10 27 the office of the treasurer of state for each fiscal year of
10 28 the fiscal period beginning July 1, 2004, and ending June 30,
10 29 2007, the following amounts, or so much thereof as is
10 30 necessary, to be used for the purpose designated:
10 31 For deposit in the community attraction and tourism fund:
10 32 FY 2004=2005 ..................................... $ 15,000,000
10 33 FY 2005=2006 ..................................... $ 15,000,000
10 34 FY 2006=2007 ..................................... $ 15,000,000
10 35 2. Notwithstanding section 8.33, moneys that remain
11 1 unexpended at the end of a fiscal year shall not revert to any
11 2 fund but shall remain available for expenditure for the
11 3 designated purposes during the succeeding fiscal year.
11 4 Sec. 17. STATE PARKS.
11 5 1. There is appropriated from the grow Iowa values fund to
11 6 the grow Iowa values board for each fiscal year of the fiscal
11 7 period beginning July 1, 2004, and ending June 30, 2006, the
11 8 following amounts, or so much thereof as is necessary, to be
11 9 used for the purpose designated:
11 10 For the purpose of providing financial assistance for
11 11 projects in targeted state parks and destination parks:
11 12 FY 2004=2005 ..................................... $ 3,000,000
11 13 FY 2005=2006 ..................................... $ 3,000,000
11 14 2. Notwithstanding section 8.33, moneys that remain
11 15 unexpended at the end of a fiscal year shall not revert to any
11 16 fund but shall remain available for expenditure for the
11 17 designated purposes during the succeeding fiscal year.
11 18 Sec. 18. IOWA CULTURAL TRUST FUND.
11 19 1. There is appropriated from the grow Iowa values fund to
11 20 the office of the treasurer of state for each fiscal year of
11 21 the fiscal period beginning July 1, 2004, and ending June 30,
11 22 2006, the following amounts, or so much thereof as is
11 23 necessary, to be used for the purpose designated:
11 24 For deposit in the Iowa cultural trust fund created in
11 25 section 303A.4:
11 26 FY 2004=2005 ..................................... $ 2,000,000
11 27 FY 2005=2006 ..................................... $ 2,000,000
11 28 2. Notwithstanding section 8.33, moneys that remain
11 29 unexpended at the end of a fiscal year shall not revert to any
11 30 fund but shall remain available for expenditure for the
11 31 designated purposes during the succeeding fiscal year.
11 32 DIVISION V == GROW IOWA VALUES FUND FUNDING
11 33 Sec. 19. Section 8.57, subsection 5, paragraph e, Code
11 34 Supplement 2003, is amended to read as follows:
11 35 e. Notwithstanding provisions to the contrary in sections
12 1 99D.17 and 99F.11, for the fiscal year beginning July 1, 2000
12 2 2003, and for each fiscal year thereafter ending June 30,
12 3 2004, not more than a total of sixty million dollars shall be
12 4 deposited in the general fund of the state in any the fiscal
12 5 year pursuant to sections 99D.17 and 99F.11; for the fiscal
12 6 period beginning July 1, 2004, and ending June 30, 2030, not
12 7 more than a total of thirty=eight million three hundred
12 8 thousand dollars of the moneys directed to be deposited in the
12 9 general fund of the state in a fiscal year pursuant to
12 10 sections 99D.17 and 99F.11 shall be deposited in the grow Iowa
12 11 values fund created in section 15G.108 in any fiscal year, and
12 12 not more than a total of twenty=one million seven hundred
12 13 thousand dollars shall be deposited in the general fund in any
12 14 fiscal year; and for the fiscal year beginning July 1, 2030,
12 15 and for each fiscal year thereafter, not more than a total of
12 16 sixty million dollars shall be deposited in the general fund
12 17 of the state in any fiscal year pursuant to sections 99D.17
12 18 and 99F.11. The next fifteen million dollars of the moneys
12 19 directed to be deposited in the general fund of the state in a
12 20 fiscal year pursuant to sections 99D.17 and 99F.11 shall be
12 21 deposited in the vision Iowa fund created in section 12.72 for
12 22 the fiscal year beginning July 1, 2000, and for each fiscal
12 23 year through the fiscal year beginning July 1, 2019. The next
12 24 five million dollars of the moneys directed to be deposited in
12 25 the general fund of the state in a fiscal year pursuant to
12 26 sections 99D.17 and 99F.11 shall be deposited in the school
12 27 infrastructure fund created in section 12.82 for the fiscal
12 28 year beginning July 1, 2000, and for each fiscal year
12 29 thereafter until the principal and interest on all bonds
12 30 issued by the treasurer of state pursuant to section 12.81 are
12 31 paid, as determined by the treasurer of state. The total
12 32 moneys in excess of the moneys deposited in the general fund
12 33 of the state, the grow Iowa values fund, the vision Iowa fund,
12 34 and the school infrastructure fund in a fiscal year shall be
12 35 deposited in the rebuild Iowa infrastructure fund and shall be
13 1 used as provided in this section, notwithstanding section
13 2 8.60.
13 3 If the total amount of moneys directed to be deposited in
13 4 the general fund of the state under sections 99D.17 and 99F.11
13 5 in a fiscal year is less than the total amount of moneys
13 6 directed to be deposited in the grow Iowa values fund, the
13 7 vision Iowa fund, and the school infrastructure fund in the
13 8 fiscal year pursuant to this paragraph "e", the difference
13 9 shall be paid from lottery revenues in the manner provided in
13 10 section 99G.39, subsection 3.
13 11 Sec. 20. NEW SECTION. 12.91 GENERAL AND SPECIFIC BONDING
13 12 POWERS.
13 13 1. The treasurer of state may issue bonds for the purpose
13 14 of funding the grow Iowa values fund created in section
13 15 15G.108. The treasurer of state shall have all of the powers
13 16 which are necessary to issue and secure bonds and carry out
13 17 the purposes of the fund. The treasurer of state may issue
13 18 bonds in principal amounts which are necessary to provide
13 19 sufficient funds for the grow Iowa values fund, the payment of
13 20 interest on the bonds, the establishment of reserves to secure
13 21 the bonds, the costs of issuance of the bonds, other
13 22 expenditures of the treasurer of state incident to and
13 23 necessary or convenient to carry out the bond issue for the
13 24 fund, and all other expenditures of the board necessary or
13 25 convenient to administer the fund. The bonds are investment
13 26 securities and negotiable instruments within the meaning of
13 27 and for purposes of the uniform commercial code.
13 28 2. Bonds issued under this section are payable solely and
13 29 only out of the moneys, assets, or revenues of the grow Iowa
13 30 values fund and any bond reserve funds established pursuant to
13 31 section 12.92, all of which may be deposited with trustees or
13 32 depositories in accordance with bond or security documents and
13 33 pledged to the payment thereof. Bonds issued under this
13 34 section shall contain on their face a statement that the bonds
13 35 do not constitute an indebtedness of the state. The treasurer
14 1 of state shall not pledge the credit or taxing power of this
14 2 state or any political subdivision of the state or make bonds
14 3 issued pursuant to this section payable out of any moneys
14 4 except those in the grow Iowa values fund.
14 5 3. The proceeds of bonds issued by the treasurer of state
14 6 and not required for immediate disbursement may be deposited
14 7 with a trustee or depository as provided in the bond documents
14 8 and invested or reinvested in any investment as directed by
14 9 the treasurer of state and specified in the trust indenture,
14 10 resolution, or other instrument pursuant to which the bonds
14 11 are issued without regard to any limitation otherwise provided
14 12 by law.
14 13 4. The bonds shall be:
14 14 a. In a form, issued in denominations, executed in a
14 15 manner, and payable over terms and with rights of redemption,
14 16 and be subject to the terms, conditions, and covenants
14 17 providing for the payment of the principal of, redemption
14 18 premiums, if any, interest which may be fixed or variable
14 19 during any period the bonds are outstanding, and such other
14 20 terms and conditions as prescribed in the trust indenture,
14 21 resolution, or other instrument authorizing their issuance.
14 22 b. Negotiable instruments under the laws of the state and
14 23 may be sold at prices, at public or private sale, and in a
14 24 manner, as prescribed by the treasurer of state. Chapters
14 25 73A, 74, 74A, and 75 do not apply to the sale or issuance of
14 26 the bonds.
14 27 c. Subject to the terms, conditions, and covenants
14 28 providing for the payment of the principal, redemption
14 29 premiums, if any, interest, and other terms, conditions,
14 30 covenants, and protective provisions safeguarding payment, not
14 31 inconsistent with this section and as determined by the trust
14 32 indenture, resolution, or other instrument authorizing their
14 33 issuance.
14 34 5. The bonds are securities in which public officers and
14 35 bodies of this state, political subdivisions of this state,
15 1 insurance companies and associations and other persons
15 2 carrying on an insurance business, banks, trust companies,
15 3 savings associations, savings and loan associations, and
15 4 investment companies; administrators, guardians, executors,
15 5 trustees, and other fiduciaries; and other persons authorized
15 6 to invest in bonds or other obligations of the state may
15 7 properly and legally invest funds, including capital, in their
15 8 control or belonging to them.
15 9 6. Bonds must be authorized by a trust indenture,
15 10 resolution, or other instrument of the treasurer of state.
15 11 7. Neither the resolution, trust indenture, nor any other
15 12 instrument by which a pledge is created needs to be recorded
15 13 or filed under the Iowa uniform commercial code to be valid,
15 14 binding, or effective.
15 15 8. Bonds issued under the provisions of this section are
15 16 declared to be issued for a general public and governmental
15 17 purpose and all bonds issued under this section shall be
15 18 exempt from taxation by the state of Iowa and the interest on
15 19 the bonds shall be exempt from the state income tax and the
15 20 state inheritance and estate tax.
15 21 9. Subject to the terms of any bond documents, moneys in
15 22 the grow Iowa values fund may be expended for administration
15 23 expenses.
15 24 10. The treasurer of state may issue bonds for the purpose
15 25 of refunding any bonds issued pursuant to this section then
15 26 outstanding, including the payment of any redemption premiums
15 27 thereon and any interest accrued or to accrue to the date of
15 28 redemption of the outstanding bonds. Until the proceeds of
15 29 bonds issued for the purpose of refunding outstanding bonds
15 30 are applied to the purchase or retirement of outstanding bonds
15 31 or the redemption of outstanding bonds, the proceeds may be
15 32 placed in escrow and be invested and reinvested in accordance
15 33 with the provisions of this section. The interest, income,
15 34 and profits earned or realized on an investment may also be
15 35 applied to the payment of the outstanding bonds to be refunded
16 1 by purchase, retirement, or redemption. After the terms of
16 2 the escrow have been fully satisfied and carried out, any
16 3 balance of proceeds and interest earned or realized on the
16 4 investments may be returned to the treasurer of state for
16 5 deposit in the grow Iowa values fund established in section
16 6 15G.108. All refunding bonds shall be issued and secured and
16 7 subject to the provisions of this chapter in the same manner
16 8 and to the same extent as other bonds issued pursuant to this
16 9 section.
16 10 11. The treasurer of state shall have all of the powers
16 11 which are necessary to issue and secure bonds, including but
16 12 not limited to the power to procure insurance, other credit
16 13 enhancements, and other financing arrangements, and to execute
16 14 instruments and contracts and to enter into agreements
16 15 convenient or necessary to facilitate financing arrangements
16 16 with respect to the bonds and to carry out the purposes of the
16 17 fund, including but not limited to such arrangements,
16 18 instruments, contracts, and agreements as municipal bond
16 19 insurance, self=insurance or liquidity trusts, accounts, pools
16 20 or other arrangements, liquidity facilities or covenants,
16 21 letters of credit, and interest rate agreements.
16 22 12. For purposes of this section and sections 12.92
16 23 through 12.95, the term "bonds" means bonds, notes, and other
16 24 obligations and financing arrangements issued or entered into
16 25 by the treasurer of state and the term "interest rate
16 26 agreement" means an interest rate swap or exchange agreement,
16 27 an agreement establishing an interest rate floor or ceiling or
16 28 both, or any similar agreement. Any such agreement may
16 29 include the option to enter into or cancel the agreement or to
16 30 reverse or extend the agreement.
16 31 Sec. 21. NEW SECTION. 12.92 GROW IOWA VALUES FUND
16 32 ACCOUNTS AND RESERVE FUNDS.
16 33 1. The treasurer of state shall establish such accounts
16 34 within the grow Iowa values fund created in section 15G.108 as
16 35 may be appropriate, including debt service accounts for the
17 1 purpose of paying the principal of, redemption premium, if
17 2 any, and interest on bonds payable therefrom. Moneys in the
17 3 debt service accounts shall not be subject to appropriation
17 4 for any other purpose by the general assembly, but shall be
17 5 used only for the purposes of paying the principal of,
17 6 redemption premium, if any, and interest on the bonds payable
17 7 therefrom.
17 8 2. Revenue for the grow Iowa values fund shall include,
17 9 but is not limited to, the following, which shall be deposited
17 10 with the treasurer of state or its designee as provided by any
17 11 bond or security documents and credited to the debt service
17 12 account:
17 13 a. The proceeds of bonds issued to capitalize and pay the
17 14 costs of the fund and investment earnings on the proceeds.
17 15 b. Interest attributable to investment of moneys in the
17 16 fund or an account of the fund.
17 17 c. Moneys in the form of a devise, gift, bequest,
17 18 donation, federal or other grant, reimbursement, repayment,
17 19 judgment, transfer, payment, or appropriation from any source
17 20 intended to be used for the purposes of the fund or account.
17 21 3. a. The treasurer of state may create and establish one
17 22 or more special funds, to be known as "bond reserve funds", to
17 23 secure one or more issues of bonds issued pursuant to section
17 24 12.91. The treasurer of state shall pay into each bond
17 25 reserve fund any moneys appropriated and made available by the
17 26 state or treasurer of state for the purpose of the fund, any
17 27 proceeds of sale of bonds to the extent provided in the
17 28 resolutions or trust indentures authorizing their issuance,
17 29 and any other moneys which may be available to the treasurer
17 30 of state for the purpose of the fund from any other sources.
17 31 All moneys held in a bond reserve fund, except as otherwise
17 32 provided in this chapter, shall be used as required solely for
17 33 the payment of the principal of bonds secured in whole or in
17 34 part by the fund or of the sinking fund payments with respect
17 35 to the bonds, the purchase or redemption of the bonds, the
18 1 payment of interest on the bonds, or the payments of any
18 2 redemption premium required to be paid when the bonds are
18 3 redeemed prior to maturity.
18 4 b. Moneys in a bond reserve fund shall not be withdrawn
18 5 from it at any time in an amount that will reduce the amount
18 6 of the fund to less than the bond reserve fund requirement
18 7 established for the fund, as provided in this subsection,
18 8 except for the purpose of making, with respect to bonds
18 9 secured in whole or in part by the fund, payment when due of
18 10 principal, interest, redemption premiums, and the sinking fund
18 11 payments with respect to the bonds for the payment of which
18 12 other moneys of the treasurer of state are not available.
18 13 Any income or interest earned by, or incremental to, a bond
18 14 reserve fund due to the investment of it may be transferred by
18 15 the treasurer of state to other funds or accounts to the
18 16 extent the transfer does not reduce the amount of that bond
18 17 reserve fund below the bond reserve fund requirement for it.
18 18 c. The treasurer of state shall not at any time issue
18 19 bonds, secured in whole or in part by a bond reserve fund, if,
18 20 upon the issuance of the bonds, the amount in the bond reserve
18 21 fund will be less than the bond reserve fund requirement for
18 22 the fund, unless the treasurer of state at the time of
18 23 issuance of the bonds deposits in the fund from the proceeds
18 24 of the bonds issued or from other sources an amount which,
18 25 together with the amount then in the fund, will not be less
18 26 than the bond reserve fund requirement for the fund. For the
18 27 purposes of this subsection, the term "bond reserve fund
18 28 requirement" means, as of any particular date of computation,
18 29 an amount of money, as provided in the resolutions or trust
18 30 indentures authorizing the bonds with respect to which the
18 31 fund is established.
18 32 d. To assure the continued solvency of any bonds secured
18 33 by the bond reserve fund, provision is made in paragraph "a"
18 34 for the accumulation in each bond reserve fund of an amount
18 35 equal to the bond reserve requirement for the fund. In order
19 1 to further assure maintenance of the bond reserve funds, the
19 2 treasurer of state shall, on or before January 1 of each
19 3 calendar year, make and deliver to the governor the treasurer
19 4 of state's certificate stating the sum, if any, required to
19 5 restore each bond reserve fund to the bond reserve fund
19 6 requirement for that fund. Within thirty days after the
19 7 beginning of the session of the general assembly next
19 8 following the delivery of the certificate, the governor shall
19 9 submit to both houses printed copies of a budget including the
19 10 sum, if any, required to restore each bond reserve fund to the
19 11 bond reserve fund requirement for that fund. Any sums
19 12 appropriated by the general assembly and paid to the treasurer
19 13 of state pursuant to this subsection shall be deposited by the
19 14 treasurer of state in the applicable bond reserve fund.
19 15 Sec. 22. NEW SECTION. 12.93 PLEDGES.
19 16 1. It is the intention of the general assembly that a
19 17 pledge made in respect of bonds shall be valid and binding
19 18 from the time the pledge is made, that the moneys or property
19 19 so pledged and received after the pledge by the treasurer of
19 20 state shall immediately be subject to the lien of the pledge
19 21 without physical delivery or further act, and that the lien of
19 22 the pledge shall be valid and binding as against all parties
19 23 having claims of any kind in tort, contract, or otherwise
19 24 against the treasurer of state whether or not the parties have
19 25 notice of the lien.
19 26 2. The moneys set aside in a fund or funds pledged for any
19 27 series or issue of bonds shall be held for the sole benefit of
19 28 the series or issue separate and apart from moneys pledged for
19 29 another series or issue of bonds of the treasurer of state.
19 30 Bonds may be issued in series under one or more resolutions or
19 31 trust indentures and may be fully open=ended, thus providing
19 32 for the unlimited issuance of additional series, or partially
19 33 open=ended, limited as to additional series.
19 34 Sec. 23. NEW SECTION. 12.94 LIMITATIONS.
19 35 Bonds issued pursuant to section 12.91 are not debts of the
20 1 state, or of any political subdivision of the state, and do
20 2 not constitute a pledge of the faith and credit of the state
20 3 or a charge against the general credit or general fund of the
20 4 state. The issuance of any bonds pursuant to section 12.91 by
20 5 the treasurer of state does not directly, indirectly, or
20 6 contingently obligate the state or a political subdivision of
20 7 the state to apply moneys, or to levy or pledge any form of
20 8 taxation whatever, to the payment of the bonds. Bonds issued
20 9 under section 12.91 are payable solely and only from the
20 10 sources and special fund and accounts provided in section
20 11 12.92.
20 12 Sec. 24. NEW SECTION. 12.95 CONSTRUCTION.
20 13 Sections 12.91 through 12.94, being necessary for the
20 14 welfare of this state and its inhabitants, shall be liberally
20 15 construed to effect its purposes.
20 16 Sec. 25. Section 15G.108, Code Supplement 2003, is amended
20 17 to read as follows:
20 18 15G.108 GROW IOWA VALUES FUND.
20 19 A grow Iowa values fund is created and established as a
20 20 separate and distinct fund in the state treasury under the
20 21 control of the grow Iowa values board consisting of moneys
20 22 appropriated to the grow Iowa values board. Moneys in the
20 23 fund are not subject to section 8.33. Notwithstanding section
20 24 12C.7, interest or earnings on moneys in the fund shall be
20 25 credited to the fund. Moneys in the fund shall not be subject
20 26 to appropriation for any other purposes by the general
20 27 assembly other than as provided in this Act and 2003 Iowa
20 28 Acts, First Extraordinary Session, chapter 2, but shall be
20 29 used only for the purposes of the grow Iowa values fund. The
20 30 treasurer of state shall act as custodian of the fund and
20 31 disburse moneys contained in the fund as directed by the grow
20 32 Iowa values board, including automatic disbursements of moneys
20 33 received pursuant to the terms of bond indentures and
20 34 documents and security provisions to trustees. The fund shall
20 35 be administered by the grow Iowa values board, which shall
21 1 make expenditures from the fund consistent with this chapter
21 2 and pertinent Acts of the general assembly. Any financial
21 3 assistance provided using moneys from the fund may be provided
21 4 over a period of time of more than one year. Payments of
21 5 interest, repayments of moneys loaned pursuant to this
21 6 chapter, and recaptures of grants or loans shall be deposited
21 7 in the fund.
21 8 Sec. 26. Section 15G.110, Code Supplement 2003, is amended
21 9 to read as follows:
21 10 15G.110 FUTURE CONSIDERATION.
21 11 Not later than February 1, 2007, the legislative services
21 12 agency shall prepare and deliver to the secretary of the
21 13 senate and the chief clerk of the house of representatives
21 14 identical divisions that repeal the provisions of this
21 15 chapter, with the exception of sections 15G.101, 15G.102,
21 16 15G.103, and 15G.108. It is the intent of this section that
21 17 the general assembly shall bring the division to a vote in
21 18 either the senate or the house of representatives
21 19 expeditiously. It is further the intent of this chapter that
21 20 if the division is approved by the first house in which it is
21 21 considered, it shall expeditiously be brought to a vote in the
21 22 second house.
21 23 Sec. 27. Section 99G.39, subsection 3, paragraph a, Code
21 24 Supplement 2003, is amended to read as follows:
21 25 a. Notwithstanding subsection 1, if gaming revenues under
21 26 sections 99D.17 and 99F.11 are insufficient in a fiscal year
21 27 to meet the total amount of such revenues directed to be
21 28 deposited in the grow Iowa values fund, the vision Iowa fund,
21 29 and the school infrastructure fund during the fiscal year
21 30 pursuant to section 8.57, subsection 5, paragraph "e", the
21 31 difference shall be paid from lottery revenues prior to
21 32 deposit of the lottery revenues in the general fund. If
21 33 lottery revenues are insufficient during the fiscal year to
21 34 pay the difference, the remaining difference shall be paid
21 35 from lottery revenues in subsequent fiscal years as such
22 1 revenues become available.
22 2 Sec. 28. 2003 Iowa Acts, First Extraordinary Session,
22 3 chapter 1, section 114, is amended to read as follows:
22 4 SEC. 114. The divisions of this Act designated the grow
22 5 Iowa values board and fund, with the exception of sections
22 6 15G.101, 15G.102, 15G.103, and 15G.108, Code Supplement 2003,
22 7 the value=added agricultural products and processes financial
22 8 assistance program, the endow Iowa grants, the technology
22 9 transfer advisors, the Iowa economic development loan and
22 10 credit guarantee fund, the economic development assistance and
22 11 data collection, the cultural and entertainment districts, the
22 12 workforce issues, and the university=based research
22 13 utilization program, are repealed effective June 30, 2010.
22 14 Sec. 29. 2003 Iowa Acts, First Extraordinary Session,
22 15 chapter 2, section 75, subsection 1, is amended to read as
22 16 follows:
22 17 1. There is appropriated from the general fund of the
22 18 state from moneys credited to the general fund of the state as
22 19 a result of entering into the streamlined sales and use tax
22 20 agreement, for the fiscal period year beginning July 1, 2003,
22 21 and ending June 30, 2010 2004, the following amounts amount to
22 22 be used for the purpose designated:
22 23 For deposit in the grow Iowa values fund created in section
22 24 15G.107, if enacted by 2003 Iowa Acts, House File 692 or
22 25 another Act 15G.108:
22 26 FY 2003=2004...................................... $ 5,000,000
22 27 FY 2004=2005...................................... $ 23,000,000
22 28 FY 2005=2006...................................... $ 75,000,000
22 29 FY 2006=2007...................................... $ 75,000,000
22 30 FY 2007=2008...................................... $ 75,000,000
22 31 FY 2008=2009...................................... $ 75,000,000
22 32 FY 2009=2010...................................... $ 75,000,000
22 33 EXPLANATION
22 34 This bill relates to economic development and regulatory
22 35 matters at the state and local level and makes appropriations.
23 1 DIVISION I. This division establishes a regulatory
23 2 efficiency commission for purposes of identifying unneeded
23 3 regulations, fines, and fees that hinder business development.
23 4 The division provides that the commission shall also identify
23 5 methods for streamlining access to regulatory information.
23 6 The division provides that the commission shall consist of
23 7 seven voting members appointed by the governor and four
23 8 nonvoting ex officio members of the general assembly. The
23 9 division provides that the meetings of the commission are
23 10 subject to open meetings laws. The division provides that, by
23 11 January 10, 2005, the commission shall submit a written report
23 12 to the governor and the general assembly that includes the
23 13 findings and legislative recommendations of the commission.
23 14 The division provides that the report shall be distributed by
23 15 the secretary of the senate and the chief clerk of the house
23 16 of representatives to the chairpersons and members of the
23 17 administrative rules review committee and the economic growth
23 18 committees in the senate and the house of representatives.
23 19 DIVISION II. This division establishes a partnership
23 20 commission for purposes of identifying unnecessary public
23 21 mandates for elimination and providing recommendations
23 22 designed to encourage city and county governments to share
23 23 services. The division provides that the commission shall
23 24 consist of seven voting members appointed by the governor and
23 25 four nonvoting ex officio members of the general assembly.
23 26 The division provides that the meetings of the commission are
23 27 subject to open meetings laws. The division provides that, by
23 28 January 10, 2005, the commission shall submit a written report
23 29 to the governor and the general assembly that includes the
23 30 findings and legislative recommendations of the commission.
23 31 The division provides that the report shall be distributed by
23 32 the secretary of the senate and the chief clerk of the house
23 33 of representatives to the chairpersons and members of the
23 34 administrative rules review committee and the state government
23 35 committees in the senate and the house of representatives.
24 1 DIVISION III. This division provides that in order for an
24 2 economic development region to receive moneys from the grow
24 3 Iowa values fund, the organization of the economic development
24 4 region must be approved by the grow Iowa values board. The
24 5 division provides that the board shall approve an economic
24 6 development region that consists of not less than three
24 7 contiguous counties and establishes a single, focused economic
24 8 development effort, approved by the board, that shall include
24 9 the development of a regional development plan and regional
24 10 marketing strategies. The division provides that an approved
24 11 economic development region may create an economic development
24 12 region revolving fund.
24 13 The division provides that a nongovernmental entity making
24 14 a contribution to an economic development region revolving
24 15 fund at any time prior to July 1, 2009, may claim a tax credit
24 16 equal to 20 percent of the amount contributed to the revolving
24 17 fund. The tax credit shall be allowed against personal and
24 18 corporate income tax, the franchise tax for financial
24 19 institutions, the insurance premium tax, and the moneys and
24 20 credits tax for credit unions. The division provides that any
24 21 tax credit in excess of the taxpayer's liability for the tax
24 22 year may be credited to the tax liability for the following
24 23 seven years or until depleted, whichever occurs first. The
24 24 division provides that the tax credit shall not be carried
24 25 back to a tax year prior to the tax year in which the taxpayer
24 26 redeems the tax credit and is not transferable. The division
24 27 provides that the aggregate amount of tax credits authorized
24 28 shall not total more than $20 million. The division provides
24 29 that the total amount of tax credits authorized during a
24 30 fiscal year shall not exceed $4 million plus any unused tax
24 31 credits carried over from previous years. Any tax credits
24 32 which remain unused for a fiscal year may be carried forward
24 33 to the succeeding fiscal year. The division provides that the
24 34 maximum amount of tax credits that may be authorized in a
24 35 fiscal year for contributions made to a specific economic
25 1 development region revolving fund is equal to $4 million plus
25 2 any unused tax credits carried over from previous years
25 3 divided by the number of economic development region revolving
25 4 funds existing in the state. The tax credit provisions are
25 5 retroactively applicable to January 1, 2004, and are
25 6 applicable on and after that date.
25 7 The division provides that an approved economic development
25 8 region may apply for financial assistance from the grow Iowa
25 9 values fund to assist with physical infrastructure needs
25 10 related to a specific business partner. The division provides
25 11 that an approved economic development region may apply for
25 12 financial assistance from the grow Iowa values fund to assist
25 13 an existing business located in the economic development
25 14 region impacted by business consolidation actions. The
25 15 division provides that an approved economic development region
25 16 may apply for financial assistance to implement economic
25 17 development initiatives unique to the region. The division
25 18 provides that an approved economic development region may
25 19 apply for financial assistance to implement innovative
25 20 initiatives that do not qualify for other financial assistance
25 21 from the fund. The division requires the grow Iowa values
25 22 board to establish and administer a regional economic
25 23 development revenue sharing pilot project for one or more
25 24 regions. The division provides that direct financial
25 25 assistance under this section and the next seciton of the
25 26 division shall total not more than $20 million.
25 27 The division provides that an approved economic development
25 28 region may apply to the grow Iowa values board for approval as
25 29 an economically isolated area. In order to be considered an
25 30 economically isolated area, the region must have at least one
25 31 county that has a majority of the land area of the county
25 32 located at least 40 miles away from a major commercial area,
25 33 as determined by the board, and the county has either a per
25 34 capita income that ranks in the lowest 25 counties in the
25 35 state based on the 2000 census or has an annualized average
26 1 weekly wage for employees in private business that ranks in
26 2 the lowest 25 counties in the state in calendar year 2000.
26 3 The division provides that an approved economically isolated
26 4 area is eligible to apply to the department of economic
26 5 development for up to $750,000 over a five=year period for
26 6 purposes of economic=development=related marketing assistance
26 7 for the area.
26 8 From the grow Iowa values fund, the division appropriates
26 9 to the department of economic development for the fiscal year
26 10 beginning July 1, 2004, and ending June 30, 2005, $20 million
26 11 for providing financial assistance to economic development
26 12 regions and economically isolated areas. From the grow Iowa
26 13 values fund, the division appropriates to the general fund of
26 14 the state, for the fiscal period beginning July 1, 2004, and
26 15 ending June 30, 2009, $20 million for payment of economic
26 16 development region revolving fund tax credits.
26 17 DIVISION IV. This division makes appropriations from the
26 18 grow Iowa values fund.
26 19 The division appropriates from the grow Iowa values fund to
26 20 the general fund of the state for the fiscal period beginning
26 21 July 1, 2004, and ending June 30, 2006, $1.5 million each
26 22 fiscal year for payment of tax credits approved for projects
26 23 located in certified cultural and entertainment districts.
26 24 The division makes conforming amendments to Code section
26 25 404A.4.
26 26 The division appropriates from the grow Iowa values fund to
26 27 the office of the treasurer of state for the fiscal period
26 28 beginning July 1, 2004, and ending June 30, 2007, $15 million
26 29 each fiscal year for deposit in the community attraction and
26 30 tourism fund.
26 31 The division appropriates from the grow Iowa values fund to
26 32 the grow Iowa values board for the fiscal period beginning
26 33 July 1, 2004, and ending June 30, 2006, $3 million each fiscal
26 34 year for the purpose of providing financial assistance for
26 35 projects in targeted state parks and destination parks.
27 1 The division appropriates from the grow Iowa values fund to
27 2 the office of the treasurer of state for the fiscal period
27 3 beginning July 1, 2004, and ending June 30, 2006, $2 million
27 4 for deposit in the Iowa cultural trust fund.
27 5 DIVISION V. This division allows the treasurer of state to
27 6 issue bonds for the purpose of partially funding the grow Iowa
27 7 values fund. Currently, the grow Iowa values fund is funded
27 8 through certain anticipated federal moneys and an annual
27 9 appropriation from moneys credited to the general fund of the
27 10 state as a result of entering into the streamlined sales and
27 11 use tax agreement. The bill eliminates the funding from the
27 12 moneys credited to the general fund of the state as a result
27 13 of entering into a streamlined sales and use tax agreement.
27 14 The bill allows the treasurer of state to issue bonds for the
27 15 purpose of funding the grow Iowa values fund. The division
27 16 amends Code section 15G.108 relating to the grow Iowa values
27 17 fund due to the partial funding of the fund through the
27 18 issuance of bonds.
27 19 The division provides that the treasurer of state may issue
27 20 bonds in principal amounts which are necessary to provide
27 21 sufficient funds for the grow Iowa values fund, the payment of
27 22 interest on the bonds, the establishment of reserves to secure
27 23 the bonds, the costs of issuance of the bonds, other
27 24 expenditures incident to and necessary or convenient to carry
27 25 out the bond issue, and all other expenditures of the grow
27 26 Iowa values board necessary or convenient to administer the
27 27 fund.
27 28 The division provides that the bonds are payable solely and
27 29 only out of the moneys, assets, or revenues of the grow Iowa
27 30 values fund and any bond reserve funds. The division provides
27 31 that the bonds shall contain on their face a statement that
27 32 the bonds do not constitute an indebtedness of the state and
27 33 that the treasurer of state shall not pledge the credit or
27 34 taxing power of this state or any political subdivision of
27 35 this state or make the bonds payable out of any moneys except
28 1 those in the grow Iowa values fund. The division provides
28 2 that the proceeds of the bonds not required for immediate
28 3 disbursement may be deposited with a trustee or depository as
28 4 provided in the bond documents and invested or reinvested in
28 5 any investment as directed by the board and specified in the
28 6 trust indenture, resolution, or other instrument pursuant to
28 7 which the bonds are issued without regard to any limitation
28 8 otherwise provided by law. The division provides certain
28 9 requirements for the bonds, including the form of the bonds,
28 10 that the bonds must be negotiable instruments under the laws
28 11 of the state, and certain terms, conditions, and covenants for
28 12 the bonds. The division provides for who may invest in the
28 13 bonds. The division provides that the bonds must be
28 14 authorized by a trust indenture, resolution, or other
28 15 instrument of the treasurer of state approved by the board.
28 16 The division provides that neither the resolution, trust
28 17 agreement, nor any other instrument by which a pledge is
28 18 created needs to be recorded or filed under the Iowa uniform
28 19 commercial code to be valid, binding, or effective.
28 20 The division provides that the bonds are declared to be
28 21 issued for a general public and governmental purpose and all
28 22 bonds issued under the division's provisions shall be exempt
28 23 from taxation by the state of Iowa and the interest on the
28 24 bonds shall be exempt from the state income tax and the state
28 25 inheritance and estate tax. The division provides that,
28 26 subject to the terms of any bond documents, moneys in the grow
28 27 Iowa values fund may be expended for administration expenses.
28 28 The division provides that the treasurer of state may issue
28 29 bonds for the purpose of refunding any bonds or notes issued
28 30 pursuant to this section then outstanding, including the
28 31 payment of any redemption premiums thereon and any interest
28 32 accrued or to accrue to the date of redemption of the
28 33 outstanding bonds or notes.
28 34 The division requires the treasurer of state to establish
28 35 accounts within the grow Iowa values fund as may be
29 1 appropriate. The division defines what revenue for the grow
29 2 Iowa values fund shall be deposited with the treasurer of
29 3 state or the treasurer's designee as provided by any bond or
29 4 security documents and credited to the debt service account.
29 5 The division provides that the treasurer of state may create
29 6 and establish one or more special funds, to be known as "bond
29 7 reserve funds", to secure one or more issues of bonds or
29 8 notes. The division provides that moneys in a bond reserve
29 9 fund shall not be withdrawn from it at any time in an amount
29 10 that will reduce the amount of the fund to less than the bond
29 11 reserve fund requirement established for the fund, except for
29 12 the purpose of making, with respect to bonds secured in whole
29 13 or in part by the fund, payment when due of principal,
29 14 interest, redemption premiums, and the sinking fund payments
29 15 with respect to the bonds for the payment of which other
29 16 moneys of the treasurer are not available. The division
29 17 provides that the treasurer of state shall not at any time
29 18 issue bonds, secured in whole or in part by a bond reserve
29 19 fund if, upon the issuance of the bonds, the amount in the
29 20 bond reserve fund will be less than the bond reserve fund
29 21 requirement for the fund, unless the treasurer at the time of
29 22 issuance of the bonds deposits in the fund from the proceeds
29 23 of the bonds issued or from other sources an amount which,
29 24 together with the amount then in the fund, will not be less
29 25 than the bond reserve fund requirement for the fund. The
29 26 division provides for the continued solvency of any bonds
29 27 secured by a bond reserve fund.
29 28 The division provides that it is the intent of the general
29 29 assembly that a pledge made in respect of bonds or notes shall
29 30 be valid and binding from the time the pledge is made, that
29 31 the moneys or property so pledged and received after the
29 32 pledge by the treasurer of state shall immediately be subject
29 33 to the lien of the pledge without physical delivery or further
29 34 act, and that the lien of the pledge shall be valid and
29 35 binding as against all parties having claims of any kind in
30 1 tort, contract, or otherwise against the treasurer of state
30 2 whether or not the parties have notice of the lien.
30 3 The division provides that the bonds or notes are not debts
30 4 of the state, or of any political subdivision of the state,
30 5 and do not constitute a pledge of the faith and credit of the
30 6 state or a charge against the general credit or general fund
30 7 of the state.
30 8 The division also amends a provision in Code section 8.57,
30 9 which provides for the annual deposit of gambling revenues in
30 10 the general fund of the state and other funds. Currently, the
30 11 first $60 million of gambling revenues is deposited in the
30 12 general fund of the state and the remaining moneys are
30 13 deposited in the vision Iowa fund, the school infrastructure
30 14 fund, and the rebuild Iowa infrastructure fund. The division
30 15 provides that for the fiscal period beginning July 1, 2004,
30 16 and ending June 30, 2030, $21.7 million will be deposited in
30 17 the general fund of the state, $38.3 million will be deposited
30 18 in the grow Iowa values fund, and the deposits for the vision
30 19 Iowa fund, the school infrastructure fund, and the rebuild
30 20 Iowa infrastructure fund remain unchanged. The deposits
30 21 return to the manner in which they are currently distributed
30 22 in the fiscal year beginning July 1, 2030. The division
30 23 provides that if gambling revenues directed to be deposited in
30 24 the grow Iowa values fund, the vision Iowa fund, and the
30 25 school infrastructure fund are insufficient to fully fund the
30 26 required deposits in a fiscal year, the difference shall be
30 27 paid from lottery revenues.
30 28 LSB 6043YH 80
30 29 tm/sh/8.1