House Study Bill 539
SENATE/HOUSE FILE
BY (PROPOSED IOWA FINANCE
AUTHORITY BILL)
Passed Senate, Date Passed House, Date
Vote: Ayes Nays Vote: Ayes Nays
Approved
A BILL FOR
1 An Act relating to private activity bond allocation procedures.
2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
3 TLSB 5325XD 82
4 md/rj/8
PAG LIN
1 1 Section 1. Section 7C.7, Code 2007, is amended to read as
1 2 follows:
1 3 7C.7 CERTIFICATION OF ALLOCATION.
1 4 Upon the receipt of a completed application pursuant to
1 5 section 7C.6, the governor's designee shall promptly certify
1 6 to the political subdivision the amount of the state ceiling
1 7 allocated to the bonds for the purpose or project with respect
1 8 to which the application was submitted. The allocation shall
1 9 remain valid for thirty one hundred twenty days from the date
1 10 the allocation was certified, subject to the following
1 11 conditions:
1 12 1. If the bonds are issued and delivered for the purpose
1 13 or project within the thirty=day one=hundred=twenty=day period
1 14 or the forty=five day thirty=day extension period provided in
1 15 subsection 2, the political subdivision or its representative
1 16 shall within ten days following the issuance and delivery of
1 17 the bonds or not later than June 30 of that year, if the bonds
1 18 were issued and delivered on or before that date, file with
1 19 the governor's designee, in the form or manner the governor's
1 20 designee may prescribe, a notification of the date of issuance
1 21 and the delivery of the bonds, and the actual principal amount
1 22 of bonds issued and delivered. The filing of the notification
1 23 shall be done by actual delivery or by posting in a United
1 24 States post office depository with correct first class postage
1 25 paid. If the actual principal amount of bonds issued and
1 26 delivered is less than the amount of the allocation, the
1 27 amount of the allocation is automatically reduced to the
1 28 actual principal amount of the bonds issued and delivered.
1 29 2. If the political subdivision does not reasonably expect
1 30 to issue and deliver the bonds within the thirty=day
1 31 one=hundred=twenty=day period and evidence of an executed,
1 32 valid and binding agreement to purchase the bonds is obtained
1 33 from an entity with the legal ability to purchase and this
1 34 agreement is filed with the governor's designee, the
1 35 thirty=day one=hundred=twenty=day allocation period is
2 1 automatically extended for an additional forty=five thirty
2 2 days. The allocation period shall not be extended beyond that
2 3 additional forty=five thirty days.
2 4 3. The allocation is no longer valid unless the bonds are
2 5 issued and delivered prior to December 24 or in the case of
2 6 bonds described in section 7C.11 are issued and delivered
2 7 prior to December 31 of the calendar year in which the
2 8 allocation is certified, except as provided in section 7C.8.
2 9 Sec. 2. Section 7C.9, Code 2007, is amended to read as
2 10 follows:
2 11 7C.9 NONBUSINESS DAYS.
2 12 If the expiration date of either the thirty=day
2 13 one=hundred=twenty=day period or the forty=five day thirty=day
2 14 extension period described in subsection 1 or 2 of section
2 15 7C.7 is a Saturday, Sunday or any day on which the offices of
2 16 the state, banking institutions or savings and loan
2 17 associations in the state are authorized or required to close,
2 18 the expiration date is extended to the first day thereafter
2 19 which is not a Saturday, Sunday or other previously described
2 20 day.
2 21 EXPLANATION
2 22 A political subdivision that proposes to issue bonds for a
2 23 particular project or purpose for which an allocation of the
2 24 state ceiling is required and has not already been made, must
2 25 submit an application to the governor's designee before
2 26 issuance of the bonds. This bill increases the length of the
2 27 validity period following certification of the allocation by
2 28 the governor's designee from 30 days to 120 days. The bill
2 29 also decreases the extension period from 45 days to 30 days in
2 30 situations where the political subdivision does not reasonably
2 31 expect to issue and deliver the bonds within the 120=day
2 32 certification period and evidence of an executed, valid, and
2 33 binding agreement to purchase the bonds is obtained from an
2 34 entity with the legal ability to purchase and the agreement is
2 35 filed with the governor's designee.
3 1 LSB 5325XD 82
3 2 md/rj/8