HSB 707 (LSB 6192HC (7) 83)

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, recapture, and reallocation of recovery zone bonds, and including effective date provisions.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  NEW SECTION.  16.171  Recovery zone bonds —— reporting —— reallocation.
   1.  As used in this section:
   a.  “Eligible issuer” means the state or any political subdivision of the state authorized to issue bonds, including any entity authorized to issue bonds on behalf of the state or the political subdivision, the interest from which is excludable from gross income under section 103 of the Internal Revenue Code.
   b.  “Recovery zone bonds” means recovery zone economic development bonds and recovery zone facility bonds allocated under the federal American Recovery and Reinvestment Act of 2009, Pub. L. No. 111-5, 123 Stat. 115, codified in section 1400U-1 of the Internal Revenue Code.
   c.  “Large municipality” means a city having a population of more than one hundred thousand.
   2.  The authority shall provide written notice to each county and large municipality in the state of the amount of the recovery zone bond allocation designated for each by the internal revenue service of the United States department of the treasury.
   3.  Each county or large municipality that issues recovery zone bonds shall provide a written notice of each such issuance to the authority on a form prescribed by the authority. The authority shall track the amount of the recovery zone bond allocation used by each county and large municipality.
   4.  a.  A county or large municipality may, at any time prior to July 1, 2010, waive all or a portion of the county or large municipality’s recovery zone bond allocation, as applicable.
   b.  Any portion of a county or large municipality’s recovery zone bond allocation that remains unused on July 1, 2010, is deemed waived by the applicable county or large municipality.
   5.  a.  On July 1, 2010, the authority shall determine the total amount of waived recovery zone bond allocations. The authority shall recapture the total amount of waived recovery zone bond allocations.
   b.  On or after June 1, 2010, any eligible issuer may apply to the authority requesting an allocation from the total amount of waived recovery zone bond allocations recaptured by the authority.
   c.  On or after July 1, 2010, the authority may reallocate the amount recaptured under this subsection according to rules adopted by the authority.
   6.  The authority shall promulgate rules to implement the provisions of this section, including any rules necessary to assure compliance with federal laws relating to the issuance of recovery zone bonds.
    Sec. 2.  EFFECTIVE UPON ENACTMENT.  This Act, being deemed of immediate importance, takes effect upon enactment.
EXPLANATION
   This bill requires the Iowa finance authority to provide written notice to each county and large municipality, as defined in the bill, of the amount of the recovery zone bond allocation designated for each county and large municipality under the federal American Recovery and Reinvestment Act of 2009. 
   The bill requires each county or large municipality that issues recovery zone bonds to provide a written notice of each such issuance to the Iowa finance authority. The Iowa finance authority is required to track the amount of the recovery zone bond allocation used by each county and large municipality. 
   A county or large municipality may, at any time prior to July 1, 2010, waive all or a portion of its recovery zone bond allocation. Any portion of a county or large municipality’s recovery zone bond allocation that remains unused on July 1, 2010, is deemed waived, and the Iowa finance authority is required to recapture those waived portions of the allocations. 
   On or after June 1, 2010, any eligible issuer, as defined in the bill, may apply to the Iowa finance authority requesting an allocation from the amount of waived recovery zone bond allocations recaptured by the authority. The bill authorizes the Iowa finance authority to reallocate the amount recaptured according to rules adopted by the authority. The bill requires the Iowa finance authority to promulgate rules to implement the provisions of the bill, including any rules necessary to assure compliance with federal laws relating to the issuance of recovery zone bonds.
   The bill takes effect upon enactment.