House File 920 - Introduced HOUSE FILE BY COMMITTEE ON APPROPRIATIONS (SUCCESSOR TO HSB 314) Passed House, Date Passed Senate, Date Vote: Ayes Nays Vote: Ayes Nays Approved A BILL FOR 1 An Act authorizing the state board of regents to borrow moneys 2 and issue revenue bonds to finance the costs of certain 3 building and facility improvement programs. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 5 TLSB 2919HV 82 6 ak/gg/14 PAG LIN 1 1 Section 1. STATE BOARD OF REGENTS BONDING. 1 2 1. FINDINGS. The general assembly finds that: 1 3 a. The state board of regents has approved a buildings and 1 4 facilities improvement program for the institutions of higher 1 5 learning under the jurisdiction of the board, which the board 1 6 deems necessary to further the educational objectives of the 1 7 institutions, together with an estimate of the cost of each of 1 8 the buildings and facilities. 1 9 b. The projects contained in the buildings and facilities 1 10 improvement program are deemed necessary for the proper 1 11 performance of the instructional, research, and service 1 12 functions of the institutions. 1 13 c. Section 262A.4 provides that the state board of 1 14 regents, after authorization by a constitutional majority of 1 15 each house of the general assembly and approval by the 1 16 governor, may undertake and carry out at the institutions of 1 17 higher learning under the jurisdiction of the board any 1 18 project as defined in chapter 262A. 1 19 d. Chapter 262A authorizes the state board of regents to 1 20 borrow moneys and to issue and sell negotiable revenue bonds 1 21 to pay all or any part of the cost of carrying out projects at 1 22 any institution payable solely from and secured by an 1 23 irrevocable pledge of a sufficient portion of the student fees 1 24 and charges and institutional income received by the 1 25 particular institution. 1 26 e. To further the educational objectives of the 1 27 institutions, the state board of regents requests 1 28 authorization to finance certain costs of the capital 1 29 improvement program by borrowing moneys and issuing negotiable 1 30 bonds under chapter 262A in a total amount as provided in this 1 31 section, with the remaining costs of the projects to be 1 32 financed by appropriations or by federal or other funds 1 33 lawfully available. 1 34 2. AUTHORIZATION OF PROJECTS. The state board of regents 1 35 is authorized to undertake, plan, construct, improve, repair, 2 1 remodel, furnish, and equip, and otherwise carry out the 2 2 following projects at the institutions of higher learning 2 3 under the jurisdiction of the board at a cost not to exceed 2 4 the following amounts: 2 5 a. State university of Iowa: 2 6 .................................................. $ 35,900,000 2 7 Of the amount authorized in this lettered paragraph, 2 8 $18,700,000 shall be allocated to the college of public health 2 9 academic building. 2 10 Of the amount authorized in this lettered paragraph, 2 11 $4,200,000 shall be allocated to the renovation of the old 2 12 music building. 2 13 Of the amount authorized in this lettered paragraph, 2 14 $13,000,000 shall be allocated for renewal and HVAC 2 15 modernization of the pentacrest. 2 16 Any balance remaining in a project fund after a project is 2 17 completed may be expended for fire and environmental safety, 2 18 deferred maintenance, or campus security improvements at the 2 19 buildings and facilities of the institution as deemed 2 20 necessary by the state board of regents. 2 21 b. Iowa state university of science and technology: 2 22 For chemistry building facilities: 2 23 .................................................. $ 53,900,000 2 24 Any balance remaining in the project fund after the project 2 25 is completed may be expended for fire and environmental 2 26 safety, deferred maintenance, or campus security improvements 2 27 at the buildings and facilities of the institution as deemed 2 28 necessary by the state board of regents. 2 29 c. University of northern Iowa: 2 30 .................................................. $ 17,600,000 2 31 Of the amount authorized in this lettered paragraph, 2 32 $5,800,000 shall be allocated for phase II of the electrical 2 33 distribution loop system load break. 2 34 Of the amount authorized in this lettered paragraph, 2 35 $11,800,000 shall be allocated for the renovation of Sabin 3 1 hall. 3 2 Any balance remaining in a project fund after a project is 3 3 completed may be expended for fire and environmental safety, 3 4 deferred maintenance, or campus security improvements at the 3 5 buildings and facilities of the institution as deemed 3 6 necessary by the state board of regents. 3 7 d. For fire and environmental safety, deferred 3 8 maintenance, and campus security improvements at buildings and 3 9 facilities of the universities as deemed necessary by the 3 10 state board of regents: 3 11 .................................................. $ 24,000,000 3 12 3. AUTHORIZATION OF BORROWING AND BONDING. 3 13 a. The general assembly authorizes the state board of 3 14 regents to borrow moneys and to issue and sell negotiable 3 15 revenue bonds in the amount of $131,400,000 in the manner 3 16 provided in sections 262A.5 and 262A.6 in order to pay all or 3 17 any part of the costs of carrying out the projects at the 3 18 institutions approved and authorized in subsection 2, with the 3 19 remaining costs of the projects to be financed by 3 20 appropriations or by federal or other funds lawfully 3 21 available. The amount of bonds may be exceeded by the amount 3 22 the state board of regents determines to be necessary to 3 23 capitalize bond reserves, interest during construction, and 3 24 issuance costs. No commitment is implied or intended by 3 25 approval to fund any portion of the buildings and facilities 3 26 improvement program beyond the portion that is financed and 3 27 approved by the Eighty=second General Assembly, 2007 Session, 3 28 and the governor. 3 29 b. In light of this bonding authorization, the state board 3 30 of regents shall not request additional state capital funding 3 31 for its universities for new academic buildings through the 3 32 fiscal year ending June 30, 2013. Capital projects already 3 33 receiving some state dollars, new infrastructure projects 3 34 resulting from economic development initiatives, and projects 3 35 for deferred maintenance, fire safety, or campus security 4 1 improvements are excluded from this funding restriction. 4 2 EXPLANATION 4 3 This bill authorizes the state board of regents, pursuant 4 4 to Code chapter 262A, to borrow moneys and to issue and sell 4 5 negotiable revenue bonds to pay all or part of the cost of 4 6 certain building and facility improvement projects at its 4 7 institutions of higher education, payable solely from student 4 8 fees and charges and institutional income. The bill 4 9 authorizes the state board of regents to carry out the 4 10 following projects at the following institutions: 4 11 1. University of Iowa: college of public health academic 4 12 building; old music building renovation; pentacrest renewal 4 13 and HVAC modernization. The total amount of spending 4 14 authorized is $35.9 million. 4 15 2. Iowa state university of science and technology: 4 16 chemistry building facilities. The total amount of spending 4 17 authorized is $53.9 million. 4 18 3. University of northern Iowa: phase II of the 4 19 electrical distribution loop system load break and Sabin hall 4 20 renovation. The total amount of spending authorized is $17.6 4 21 million. 4 22 4. Fire and safety, deferred maintenance, and campus 4 23 security improvements at buildings and facilities of the 4 24 universities as deemed necessary by the board. The total 4 25 amount of spending authorized is $24 million. 4 26 LSB 2919HV 82 4 27 ak:rj/gg/14