House Study Bill 707 - Introduced HOUSE FILE _____ BY (PROPOSED COMMITTEE ON REBUILD IOWA AND DISASTER RECOVERY BILL BY CHAIRPERSON SCHUELLER) A BILL FOR An Act relating to the allocation, issuance, reporting, 1 recapture, and reallocation of recovery zone bonds, and 2 including effective date provisions. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 6192HC (7) 83 md/sc

H.F. _____ Section 1. NEW SECTION . 16.171 Recovery zone bonds —— 1 reporting —— reallocation. 2 1. As used in this section: 3 a. “Eligible issuer” means the state or any political 4 subdivision of the state authorized to issue bonds, including 5 any entity authorized to issue bonds on behalf of the state 6 or the political subdivision, the interest from which is 7 excludable from gross income under section 103 of the Internal 8 Revenue Code. 9 b. “Recovery zone bonds” means recovery zone economic 10 development bonds and recovery zone facility bonds allocated 11 under the federal American Recovery and Reinvestment Act of 12 2009, Pub. L. No. 111-5, 123 Stat. 115, codified in section 13 1400U-1 of the Internal Revenue Code. 14 c. “Large municipality” means a city having a population of 15 more than one hundred thousand. 16 2. The authority shall provide written notice to each 17 county and large municipality in the state of the amount of 18 the recovery zone bond allocation designated for each by the 19 internal revenue service of the United States department of the 20 treasury. 21 3. Each county or large municipality that issues recovery 22 zone bonds shall provide a written notice of each such issuance 23 to the authority on a form prescribed by the authority. The 24 authority shall track the amount of the recovery zone bond 25 allocation used by each county and large municipality. 26 4. a. A county or large municipality may, at any time prior 27 to July 1, 2010, waive all or a portion of the county or large 28 municipality’s recovery zone bond allocation, as applicable. 29 b. Any portion of a county or large municipality’s recovery 30 zone bond allocation that remains unused on July 1, 2010, is 31 deemed waived by the applicable county or large municipality. 32 5. a. On July 1, 2010, the authority shall determine the 33 total amount of waived recovery zone bond allocations. The 34 authority shall recapture the total amount of waived recovery 35 -1- LSB 6192HC (7) 83 md/sc 1/ 3

H.F. _____ zone bond allocations. 1 b. On or after June 1, 2010, any eligible issuer may apply 2 to the authority requesting an allocation from the total amount 3 of waived recovery zone bond allocations recaptured by the 4 authority. 5 c. On or after July 1, 2010, the authority may reallocate 6 the amount recaptured under this subsection according to rules 7 adopted by the authority. 8 6. The authority shall promulgate rules to implement the 9 provisions of this section, including any rules necessary to 10 assure compliance with federal laws relating to the issuance 11 of recovery zone bonds. 12 Sec. 2. EFFECTIVE UPON ENACTMENT. This Act, being deemed of 13 immediate importance, takes effect upon enactment. 14 EXPLANATION 15 This bill requires the Iowa finance authority to provide 16 written notice to each county and large municipality, as 17 defined in the bill, of the amount of the recovery zone bond 18 allocation designated for each county and large municipality 19 under the federal American Recovery and Reinvestment Act of 20 2009. 21 The bill requires each county or large municipality that 22 issues recovery zone bonds to provide a written notice of each 23 such issuance to the Iowa finance authority. The Iowa finance 24 authority is required to track the amount of the recovery zone 25 bond allocation used by each county and large municipality. 26 A county or large municipality may, at any time prior to 27 July 1, 2010, waive all or a portion of its recovery zone bond 28 allocation. Any portion of a county or large municipality’s 29 recovery zone bond allocation that remains unused on July 1, 30 2010, is deemed waived, and the Iowa finance authority is 31 required to recapture those waived portions of the allocations. 32 On or after June 1, 2010, any eligible issuer, as defined in 33 the bill, may apply to the Iowa finance authority requesting 34 an allocation from the amount of waived recovery zone bond 35 -2- LSB 6192HC (7) 83 md/sc 2/ 3

H.F. _____ allocations recaptured by the authority. The bill authorizes 1 the Iowa finance authority to reallocate the amount recaptured 2 according to rules adopted by the authority. The bill requires 3 the Iowa finance authority to promulgate rules to implement 4 the provisions of the bill, including any rules necessary to 5 assure compliance with federal laws relating to the issuance 6 of recovery zone bonds. 7 The bill takes effect upon enactment. 8 -3- LSB 6192HC (7) 83 md/sc 3/ 3