Senate Study Bill 1305
SENATE/HOUSE FILE
BY (PROPOSED GOVERNOR'S BILL)
Passed Senate, Date Passed House, Date
Vote: Ayes Nays Vote: Ayes Nays
Approved
A BILL FOR
1 An Act creating an Iowa jobs bond program, an Iowa jobs board, an
2 Iowa jobs bond fund, authorizing the issuance of tax=exempt
3 bonds, making and revising appropriations, and providing an
4 effective date.
5 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
6 TLSB 1692XL 83
7 rh/rj/8
PAG LIN
1 1 Section 1. Section 8.57, subsection 6, paragraph e,
1 2 subparagraph (1), Code 2009, is amended to read as follows:
1 3 (1) Notwithstanding provisions to the contrary in sections
1 4 99D.17 and 99F.11, for the fiscal year beginning July 1, 2000,
1 5 and for each fiscal year thereafter, not more than a total of
1 6 sixty million dollars shall be deposited in the general fund
1 7 of the state in any fiscal year pursuant to sections 99D.17
1 8 and 99F.11. The next fifteen million dollars of the moneys
1 9 directed to be deposited in the general fund of the state in a
1 10 fiscal year pursuant to sections 99D.17 and 99F.11 shall be
1 11 deposited in the vision Iowa fund created in section 12.72 for
1 12 the fiscal year beginning July 1, 2000, and for each fiscal
1 13 year through the fiscal year beginning July 1, 2019. The next
1 14 five million dollars of the moneys directed to be deposited in
1 15 the general fund of the state in a fiscal year pursuant to
1 16 sections 99D.17 and 99F.11 shall be deposited in the school
1 17 infrastructure fund created in section 12.82 for the fiscal
1 18 year beginning July 1, 2000, and for each fiscal year
1 19 thereafter until the principal and interest on all bonds
1 20 issued by the treasurer of state pursuant to section 12.81 are
1 21 paid, as determined by the treasurer of state. The next
1 22 fifty=six million dollars of the moneys directed to be
1 23 deposited in the general fund of the state in a fiscal year
1 24 pursuant to sections 99D.17 and 99F.11 shall be deposited in
1 25 the Iowa jobs bond fund created in section 12.88 for the
1 26 fiscal year beginning July 1, 2009, and for each fiscal year
1 27 through the fiscal year beginning July 1, 2028. The total
1 28 moneys in excess of the moneys deposited in the general fund
1 29 of the state, the vision Iowa fund, and the school
1 30 infrastructure fund, and the Iowa jobs bond fund in a fiscal
1 31 year shall be deposited in the rebuild Iowa infrastructure
1 32 fund and shall be used as provided in this section,
1 33 notwithstanding section 8.60.
1 34 Sec. 2. NEW SECTION. 12.87 GENERAL AND SPECIFIC BONDING
1 35 POWERS == PUBLIC CONSTRUCTION PROJECTS == IOWA JOBS BOND
2 1 PROGRAM.
2 2 1. The treasurer of state shall issue bonds to be used in
2 3 the development and completion of public construction projects
2 4 in the state including multimodal transportation projects
2 5 including trails, transit, rail, and aviation projects,
2 6 housing projects, water quality and wastewater improvement
2 7 projects, road and highway projects with an emphasis on public
2 8 safety and rehabilitation of deficient bridges, and for
2 9 purposes of the Iowa jobs bond program established in section
2 10 16.192. The treasurer of state shall have all of the powers
2 11 which are necessary to issue and secure bonds and carry out
2 12 the purposes of the Iowa jobs bond fund created in section
2 13 12.88. The treasurer of state shall issue bonds in principal
2 14 amounts which are necessary to provide sufficient funds for
2 15 the Iowa jobs bond fund, the payment of interest on the bonds,
2 16 the establishment of reserves to secure the bonds, the costs
2 17 of issuance of the bonds, other expenditures of the treasurer
2 18 of state incident to and necessary or convenient to carry out
2 19 the bond issues for the fund, and all other expenditures of
2 20 the treasurer of state necessary or convenient to administer
2 21 the fund; provided, however, excluding the issuance of
2 22 refunding bonds, bonds issued pursuant to this section shall
2 23 be issued in two or three phases in amounts which provide
2 24 aggregate net proceeds of not more than seven hundred fifty
2 25 million dollars.
2 26 2. The moneys set aside in a fund or funds pledged for any
2 27 series or issue of bonds or notes shall be held for the sole
2 28 benefit of the series or issue separate and apart from moneys
2 29 pledged for another series or issue of bonds or notes of the
2 30 treasurer of state.
2 31 3. The bonds are investment securities and negotiable
2 32 instruments within the meaning of and for purposes of the
2 33 uniform commercial code, chapter 554.
2 34 4. Bonds issued under this section are payable solely and
2 35 only out of the moneys, assets, or revenues of the Iowa jobs
3 1 bond fund and any bond reserve funds established pursuant to
3 2 section 12.88, all of which may be deposited with trustees or
3 3 depositories in accordance with bond or security documents and
3 4 pledged by the treasurer of state to the payment thereof.
3 5 Bonds issued under this section shall contain on their face a
3 6 statement that the bonds do not constitute an indebtedness of
3 7 the state. The treasurer of state shall not pledge the credit
3 8 or taxing power of this state or any political subdivision of
3 9 this state or make bonds issued pursuant to this section
3 10 payable out of any moneys except those in the Iowa jobs bond
3 11 fund.
3 12 5. The proceeds of bonds issued by the treasurer of state
3 13 and not required for immediate disbursement may be deposited
3 14 with a trustee or depository as provided in the bond documents
3 15 and invested or reinvested in any investment as directed by
3 16 the treasurer of state and specified in the trust indenture,
3 17 resolution, or other instrument pursuant to which the bonds
3 18 are issued without regard to any limitation otherwise provided
3 19 by law.
3 20 6. The bonds shall be:
3 21 a. In a form, issued in denominations, executed in a
3 22 manner, and payable over terms and with rights of redemption,
3 23 and be subject to such other terms and conditions as
3 24 prescribed in the trust indenture, resolution, or other
3 25 instrument authorizing their issuance.
3 26 b. Negotiable instruments under the laws of the state and
3 27 may be sold at prices, at public or private sale, and in a
3 28 manner, as prescribed by the treasurer of state. Chapters
3 29 73A, 74, 74A, and 75 do not apply to the sale or issuance of
3 30 the bonds.
3 31 c. Subject to the terms, conditions, and covenants
3 32 providing for the payment of the principal, redemption
3 33 premiums, if any, interest, and other terms, conditions,
3 34 covenants, and protective provisions safeguarding payment, not
3 35 inconsistent with this section and as determined by the trust
4 1 indenture, resolution, or other instrument authorizing their
4 2 issuance.
4 3 7. The bonds are securities in which public officers and
4 4 bodies of this state; political subdivisions of this state;
4 5 insurance companies and associations and other persons
4 6 carrying on an insurance business; banks, trust companies,
4 7 savings associations, savings and loan associations, and
4 8 investment companies; administrators, guardians, executors,
4 9 trustees, and other fiduciaries; and other persons authorized
4 10 to invest in bonds or other obligations of the state, may
4 11 properly and legally invest funds, including capital, in their
4 12 control or belonging to them.
4 13 8. Bonds must be authorized by a trust indenture,
4 14 resolution, or other instrument of the treasurer of state.
4 15 9. Neither the resolution, trust agreement, nor any other
4 16 instrument by which a pledge is created needs to be recorded
4 17 or filed under the Iowa uniform commercial code, chapter 554,
4 18 to be valid, binding, or effective.
4 19 10. Bonds issued under the provisions of this section are
4 20 declared to be issued for a general public and governmental
4 21 purpose and all bonds issued under this section shall be
4 22 exempt from taxation by the state of Iowa and the interest on
4 23 the bonds shall be exempt from the state income tax and the
4 24 state inheritance tax.
4 25 11. Subject to the terms of any bond documents, moneys in
4 26 the Iowa jobs bond fund may be expended for administration
4 27 expenses.
4 28 12. The treasurer of state shall issue bonds for the
4 29 purpose of refunding any bonds or notes issued pursuant to
4 30 this section then outstanding, including the payment of any
4 31 redemption premiums thereon and any interest accrued or to
4 32 accrue to the date of redemption of the outstanding bonds or
4 33 notes. Until the proceeds of bonds issued for the purpose of
4 34 refunding outstanding bonds or notes are applied to the
4 35 purchase or retirement of outstanding bonds or notes or the
5 1 redemption of outstanding bonds or notes, the proceeds may be
5 2 placed in escrow and be invested and reinvested in accordance
5 3 with the provisions of this section. The interest, income,
5 4 and profits earned or realized on an investment may also be
5 5 applied to the payment of the outstanding bonds or notes to be
5 6 refunded by purchase, retirement, or redemption. After the
5 7 terms of the escrow have been fully satisfied and carried out,
5 8 any balance of proceeds and interest earned or realized on the
5 9 investments may be returned to the treasurer of state for
5 10 deposit in the Iowa jobs bond fund established in section
5 11 12.88. All refunding bonds shall be issued and secured and
5 12 subject to the provisions of this chapter in the same manner
5 13 and to the same extent as other bonds issued pursuant to this
5 14 section.
5 15 13. Bonds or notes issued pursuant to this section are not
5 16 debts of the state, nor of any political subdivision of the
5 17 state, and do not constitute a pledge of the faith and credit
5 18 of the state or a charge against the general credit or general
5 19 fund of the state. The issuance of any bonds or notes
5 20 pursuant to this section by the treasurer of state does not
5 21 directly, indirectly, or contingently obligate the state or a
5 22 political subdivision of the state to apply moneys from, or to
5 23 levy or pledge any form of taxation whatever to, the payment
5 24 of the bonds or notes. Bonds and notes issued under this
5 25 section are payable solely and only from the sources and
5 26 special fund provided in section 12.88.
5 27 Sec. 3. NEW SECTION. 12.88 IOWA JOBS BOND FUND.
5 28 1. An Iowa jobs bond fund is created and established as a
5 29 separate and distinct fund in the state treasury. The moneys
5 30 in the fund are appropriated, as provided in this Act, to the
5 31 departments of administrative services, corrections,
5 32 education, natural resources, transportation, and veterans
5 33 affairs, the department for the blind, Iowa finance authority,
5 34 Iowa state fair, and the state board of regents and to the
5 35 Iowa jobs board for purposes of the Iowa jobs bond program
6 1 established in section 8A.382. The treasurer of state shall
6 2 act as custodian of the fund and disburse moneys contained in
6 3 the fund, including automatic disbursements of funds received
6 4 pursuant to the terms of bond indentures and documents and
6 5 security provisions to trustees.
6 6 2. Revenue for the Iowa jobs bond fund shall include but
6 7 is not limited to the following, which shall be deposited with
6 8 the treasurer of state or the treasurer of state's designee as
6 9 provided by any bond or security documents and credited to the
6 10 fund:
6 11 a. The proceeds of bonds issued to capitalize and pay the
6 12 costs of the fund and investment earnings on the proceeds.
6 13 b. Interest attributable to investment of moneys in the
6 14 fund or an account of the fund.
6 15 c. Moneys in the form of a devise, gift, bequest,
6 16 donation, federal or other grant, reimbursement, repayment,
6 17 judgment, transfer, payment, or appropriation from any source
6 18 intended to be used for the purposes of the fund.
6 19 3. Moneys in the Iowa jobs bond fund are not subject to
6 20 section 8.33. Notwithstanding section 12C.7, subsection 2,
6 21 interest or earnings on moneys in the fund shall be credited
6 22 to the fund.
6 23 4. a. The treasurer of state may create and establish one
6 24 or more special funds, to be known as bond reserve funds, to
6 25 secure one or more issues of bonds or notes issued pursuant to
6 26 section 12.87. The treasurer of state shall pay into each
6 27 bond reserve fund any moneys appropriated and made available
6 28 by the state or the treasurer of state for the purpose of the
6 29 fund, any proceeds of sale of notes or bonds to the extent
6 30 provided in the resolutions authorizing their issuance, and
6 31 any other moneys which may be available to the treasurer of
6 32 state for the purpose of the fund from any other sources. All
6 33 moneys held in a bond reserve fund, except as otherwise
6 34 provided in this chapter, shall be used as required solely for
6 35 the payment of the principal of bonds secured in whole or in
7 1 part by the fund or of the sinking fund payments with respect
7 2 to the bonds, the purchase or redemption of the bonds, the
7 3 payment of interest on the bonds, or the payments of any
7 4 redemption premium required to be paid when the bonds are
7 5 redeemed prior to maturity.
7 6 b. Moneys in a bond reserve fund shall not be withdrawn
7 7 from the fund at any time in an amount that will reduce the
7 8 amount of the fund to less than the bond reserve fund
7 9 requirement established for the fund, as provided in this
7 10 subsection, except for the purpose of making, with respect to
7 11 bonds secured in whole or in part by the fund, payment when
7 12 due of principal, interest, redemption premiums, and the
7 13 sinking fund payments with respect to the bonds for the
7 14 payment of which other moneys of the treasurer of state are
7 15 not available. Any income or interest earned by, or
7 16 incremental to, a bond reserve fund due to the investment of
7 17 moneys in the bond reserve fund may be transferred by the
7 18 treasurer of state to other funds or accounts to the extent
7 19 the transfer does not reduce the amount of that bond reserve
7 20 fund below the established bond reserve fund requirement.
7 21 c. The treasurer of state shall not at any time issue
7 22 bonds, secured in whole or in part by a bond reserve fund if,
7 23 upon the issuance of the bonds, the amount in the bond reserve
7 24 fund will be less than the bond reserve fund requirement for
7 25 the fund, unless the treasurer of state at the time of
7 26 issuance of the bonds deposits in the fund from the proceeds
7 27 of the bonds issued or from other sources an amount which,
7 28 together with the amount then in the fund, will not be less
7 29 than the bond reserve fund requirement for the fund. For the
7 30 purposes of this subsection, the term "bond reserve fund
7 31 requirement" means, as of any particular date of computation,
7 32 an amount of moneys, as provided in the resolutions
7 33 authorizing the bonds with respect to which the fund is
7 34 established.
7 35 d. To assure the continued solvency of any bonds secured
8 1 by the bond reserve fund, provision is made in paragraph "c"
8 2 for the accumulation in each bond reserve fund of an amount
8 3 equal to the bond reserve fund requirement for the fund. In
8 4 order further to assure maintenance of the bond reserve funds,
8 5 the treasurer of state shall, on or before January 1 of each
8 6 calendar year, make and deliver to the governor the treasurer
8 7 of state's certificate stating the sum, if any, required to
8 8 restore each bond reserve fund to the bond reserve fund
8 9 requirement for that fund. Within thirty days after the
8 10 beginning of the session of the general assembly next
8 11 following the delivery of the certificate, the governor shall
8 12 submit to both houses printed copies of a budget including the
8 13 sum, if any, required to restore each bond reserve fund to the
8 14 bond reserve fund requirement for that fund. Any sums
8 15 appropriated by the general assembly and paid to the treasurer
8 16 of state pursuant to this subsection shall be deposited by the
8 17 treasurer of state in the applicable bond reserve fund.
8 18 5. If the revenue source identified in section 8.57,
8 19 subsection 6, is determined to be insufficient to secure the
8 20 bonds issued pursuant to section 12.87, the treasurer of
8 21 state, after consultation with the governor, is authorized to
8 22 issue and sell annual appropriation bonds on behalf of the
8 23 state to provide funds for the development and completion of
8 24 the public construction projects specified in section 12.87,
8 25 subsection 1.
8 26 Sec. 4. NEW SECTION. 12.89 PLEDGES.
8 27 It is the intention of the general assembly that a pledge
8 28 made in respect of bonds or notes shall be valid and binding
8 29 from the time the pledge is made, that the money or property
8 30 so pledged and received after the pledge by the treasurer of
8 31 state shall immediately be subject to the lien of the pledge
8 32 without physical delivery or further act, and that the lien of
8 33 the pledge shall be valid and binding as against all parties
8 34 having claims of any kind in tort, contract, or otherwise
8 35 against the treasurer of state whether or not the parties have
9 1 notice of the lien.
9 2 Sec. 5. NEW SECTION. 12.90 CONSTRUCTION.
9 3 Sections 12.87 through 12.89, being necessary for the
9 4 welfare of this state and its inhabitants, shall be liberally
9 5 construed to effect its purposes.
9 6 Sec. 6. Section 16.26, Code 2009, is amended by adding the
9 7 following new subsection:
9 8 NEW SUBSECTION. 10. All bonds or notes issued by the
9 9 authority in connection with the authority's single=family and
9 10 multi=family programs shall be exempt from taxation by the
9 11 state of Iowa and the interest on the bonds shall be exempt
9 12 from the state income tax.
9 13 Sec. 7. NEW SECTION. 16.191 IOWA JOBS BOARD.
9 14 1. An Iowa jobs board is established consisting of eleven
9 15 members and is located for administrative purposes within the
9 16 Iowa finance authority. The executive director of the Iowa
9 17 finance authority shall provide office space, staff
9 18 assistance, and necessary supplies and equipment for the
9 19 board. The executive director shall budget funds to pay the
9 20 compensation and expenses of the board. In performing its
9 21 functions, the board is performing a public function on behalf
9 22 of the state and is a public instrumentality of the state.
9 23 2. The membership of the board shall be appointed as
9 24 follows:
9 25 a. Five members of the general public.
9 26 b. The director of the department of economic development
9 27 or the director's designee.
9 28 c. The executive director of the rebuild Iowa office or
9 29 the director's designee.
9 30 d. The executive director of the Iowa finance authority or
9 31 the director's designee.
9 32 e. The director of the department of workforce development
9 33 or the director's designee.
9 34 f. The director of the office of energy independence or
9 35 the director's designee.
10 1 g. The director of transportation or the director's
10 2 designee.
10 3 3. All public member appointments, shall comply with
10 4 sections 69.16 and 69.16A, and shall be subject to
10 5 confirmation by the senate. All appointed members of the
10 6 board shall have demonstrable experience or expertise in the
10 7 field of public financing, architecture, engineering, or major
10 8 facility development or construction.
10 9 4. All public members of the board shall be from
10 10 geographically diverse areas of this state.
10 11 5. The chairperson and vice chairperson of the board shall
10 12 be designated by the governor from the board members listed in
10 13 subsection 2, paragraph "a". In case of the absence or
10 14 disability of the chairperson and vice chairperson, the
10 15 members of the board shall elect a temporary chairperson by a
10 16 majority vote of those members who are present and voting.
10 17 6. The public members shall be appointed to three=year
10 18 staggered terms and the terms shall commence and end as
10 19 provided by section 69.19. If a vacancy occurs, a successor
10 20 shall be appointed to serve the unexpired term. A successor
10 21 shall be appointed in the same manner and subject to the same
10 22 qualifications as the original appointment to serve the
10 23 unexpired term.
10 24 7. A majority of the board constitutes a quorum.
10 25 Sec. 8. NEW SECTION. 16.192 IOWA JOBS BOND PROGRAM.
10 26 1. The Iowa jobs board established in section 16.191 shall
10 27 administer an Iowa jobs bond program to assist in the
10 28 development and completion of new public construction projects
10 29 relating to disaster relief and mitigation and to local
10 30 infrastructure.
10 31 2. A city, county, school district, community college,
10 32 institution of higher learning under the control of the state
10 33 board of regents, or a public organization in this state may
10 34 submit an application to the board for financial assistance
10 35 for a project under the program. For purposes of this
11 1 subsection, "public organization" means a nonprofit economic
11 2 development organization or other nonprofit organization that
11 3 sponsors or supports community or tourism attractions and
11 4 activities. The financial assistance from the fund shall be
11 5 provided only from funds, rights, and assets legally available
11 6 to the board and shall be in the form of grants, loans,
11 7 forgivable loans, pledges, and credit enhancements and
11 8 financing instruments. The board shall consider the following
11 9 criteria in prioritizing eligible projects:
11 10 a. Project readiness including how quickly the project can
11 11 be started and the estimated time the project will take to be
11 12 completed.
11 13 b. The total number and quality of jobs to be created by
11 14 the project.
11 15 c. Contributions of the project to the lasting imprint on
11 16 this state.
11 17 d. Amounts of federal, state, and private sources of any
11 18 leveraged funds.
11 19 e. The ability of the project to fund depreciation costs.
11 20 f. Contributions of the project to sustainability and
11 21 energy efficiency.
11 22 g. The benefits of the project to areas distressed by high
11 23 unemployment.
11 24 3. a. The total amount of allocations for disaster relief
11 25 and mitigation projects and public building projects shall not
11 26 exceed one hundred twenty=five million dollars.
11 27 b. The total amount of allocations for local
11 28 infrastructure, broadband technology, and alternative energy
11 29 infrastructure projects shall not exceed seventy=five million
11 30 dollars.
11 31 c. Any portion of an amount allocated for projects that
11 32 remain unexpended or unencumbered one year after the
11 33 allocation has been made may be reallocated to another project
11 34 category, at the discretion of the board. The board shall
11 35 ensure that all net proceeds be expended within three years
12 1 from when the allocation was made.
12 2 4. The board shall develop the appropriate level of
12 3 transparency regarding project fund allocations and shall
12 4 ensure that funds obligated under this section are coordinated
12 5 with other federal program funds received by the state, and
12 6 that projects receiving funds are located in geographically
12 7 diverse areas.
12 8 Sec. 9. 2008 Iowa Acts, chapter 1179, section 18,
12 9 unnumbered paragraph 1, is amended to read as follows:
12 10 There is appropriated from the FY 2009 tax=exempt bond
12 11 proceeds restricted capital funds account of the tobacco
12 12 settlement trust fund Iowa jobs bond fund pursuant to section
12 13 12E.12, subsection 1, paragraph "b", subparagraph (1A) 12.88,
12 14 as if enacted in this Act by the Eighty=third General
12 15 Assembly, 2009 Session, to the following departments and
12 16 agencies for the fiscal year beginning July 1, 2008, and
12 17 ending June 30, 2009, the following amounts, or so much
12 18 thereof as is necessary, to be used for the purposes
12 19 designated:
12 20 Sec. 10. 2008 Iowa Acts, chapter 1179, section 18,
12 21 subsection 1, paragraphs b through k, are amended to read as
12 22 follows:
12 23 b. For renovations to the capitol complex utility tunnel
12 24 system:
12 25 .................................................. $ 4,763,078
12 26 1,000,000
12 27 c. For costs associated with capitol interior and exterior
12 28 restoration:
12 29 .................................................. $ 6,900,000
12 30 d. For upgrades to the electrical distribution system
12 31 serving the capitol complex:
12 32 .................................................. $ 4,470,000
12 33 850,000
12 34 e. For heating, ventilating, and air conditioning
12 35 improvements in the Hoover state office building:
13 1 .................................................. $ 1,500,000
13 2 f. For costs associated with the central energy plant
13 3 addition and improvements:
13 4 .................................................. $ 623,000
13 5 g. For building security and firewall protection in the
13 6 Hoover state office building:
13 7 .................................................. $ 165,000
13 8 h. For projects related to major repairs and major
13 9 maintenance for state buildings and facilities under the
13 10 purview of the department:
13 11 .................................................. $ 15,000,000
13 12 Of the amount appropriated in this lettered paragraph, up
13 13 to $1,000,000 may be used for demolition purposes.
13 14 i. For the purchase of Mercy capitol hospital:
13 15 .................................................. $ 3,400,000
13 16 3,950,000
13 17 It is the intent of the general assembly that the
13 18 department will use other appropriations made or other funds
13 19 available to the department for the acquisition of buildings
13 20 to complete the purchase of this building.
13 21 j. For capital improvements at the civil commitment unit
13 22 for a sexual offenders facility at Cherokee:
13 23 .................................................. $ 829,000
13 24 k. For costs associated with the restoration and
13 25 renovation, including major repairs and major maintenance, at
13 26 the governor's mansion at Terrace Hill:
13 27 .................................................. $ 769,543
13 28 Sec. 11. 2008 Iowa Acts, chapter 1179, section 18,
13 29 subsections 2 through 9, are amended to read as follows:
13 30 2. DEPARTMENT FOR THE BLIND
13 31 For costs associated with the renovation of dormitory
13 32 buildings:
13 33 .................................................. $ 869,748
13 34 3. DEPARTMENT OF CORRECTIONS
13 35 a. For expansion of the community=based corrections
14 1 facility at Sioux City:
14 2 .................................................. $ 5,300,000
14 3 b. For expansion of the community=based corrections
14 4 facility at Ottumwa:
14 5 .................................................. $ 4,100,000
14 6 c. For expansion of the community=based corrections
14 7 facility at Waterloo:
14 8 .................................................. $ 6,000,000
14 9 d. For expansion of the community=based corrections
14 10 facility at Davenport:
14 11 .................................................. $ 2,100,000
14 12 e. For expansion, including land acquisition, of the
14 13 community=based corrections facility at Des Moines:
14 14 .................................................. $ 18,100,000
14 15 It is the intent of the general assembly that the funds
14 16 appropriated in paragraphs "a" through "c" "e" be used to
14 17 expand the number of beds available through new construction
14 18 and remodeling and not for replacement of existing facilities.
14 19 d. f. For expansion of the Iowa correctional facility for
14 20 women at Mitchellville:
14 21 .................................................. $ 47,500,000
14 22 e. g. For the remodeling of kitchens at the correctional
14 23 facilities at Mount Pleasant and Rockwell City:
14 24 .................................................. $ 12,500,000
14 25 4. DEPARTMENT OF EDUCATION
14 26 For major renovation and major repair needs, including
14 27 health, life, and fire safety needs, and for compliance with
14 28 the federal Americans With Disabilities Act, for state
14 29 buildings and facilities under the purview of the community
14 30 colleges:
14 31 .................................................. $ 2,000,000
14 32 The moneys appropriated in this subsection shall be
14 33 allocated to the community colleges based upon the
14 34 distribution formula established in section 260C.18C.
14 35 5. DEPARTMENT OF NATURAL RESOURCES
15 1 a. For infrastructure improvements for a state river
15 2 recreation area located in a county with a population between
15 3 21,900 and 22,100:
15 4 .................................................. $ 750,000
15 5 b. For the construction and installation of an angled
15 6 well, pumps, and piping to connect the existing infrastructure
15 7 from the new well to a lake located in a county with a
15 8 population between 87,500 and 88,000:
15 9 .................................................. $ 500,000
15 10 Moneys appropriated in this lettered paragraph are
15 11 contingent upon receipt of matching funds from a state taxing
15 12 authority surrounding such lake.
15 13 c. For the construction of the cabins, activity building,
15 14 picnic shelters, and other costs associated with the opening
15 15 of the Honey creek premier destination park:
15 16 .................................................. $ 4,900,000
15 17 The department shall not obligate any funding under this
15 18 appropriation without approval from the department of
15 19 management. The department shall provide quarterly updates to
15 20 the Honey creek premier destination park authority and the
15 21 legislative services agency on the obligation and spending of
15 22 this appropriation.
15 23 In light of this appropriation, the department shall not
15 24 request additional appropriations for funding the construction
15 25 of future additional amenities at the Honey creek destination
15 26 park beyond the fiscal year ending June 30, 2009. In the
15 27 event that the chairperson of the authority delivers a
15 28 certificate to the governor, pursuant to section 463C.13,
15 29 stating the amounts necessary to restore bond reserve funds,
15 30 it is the general assembly's intent upon consideration of the
15 31 governor's request to first seek refunding from the
15 32 department's budget.
15 33 d. c. For implementation of lake projects that have
15 34 established watershed improvement initiatives and community
15 35 support in accordance with the department's annual lake
16 1 restoration plan and report, notwithstanding section 8.57,
16 2 subsection 6, paragraph "c":
16 3 .................................................. $ 8,600,000
16 4 (1) It is the intent of the general assembly that the
16 5 department of natural resources shall implement the lake
16 6 restoration annual report and plan submitted to the joint
16 7 appropriations subcommittee on transportation, infrastructure,
16 8 and capitals and the legislative services agency on December
16 9 26, 2006, pursuant to section 456A.33B. The lake restoration
16 10 projects that are recommended by the department to receive
16 11 funding for fiscal year 2007=2008 and that satisfy the
16 12 criteria in section 456A.33B, including local commitment of
16 13 funding for the projects, shall be funded in the amounts
16 14 provided in the report.
16 15 Of the amounts appropriated in this lettered paragraph, at
16 16 least the following amounts shall be allocated as follows:
16 17 (a) For clear lake in Cerro Gordo county:
16 18 .................................................. $ 3,000,000
16 19 (b) For storm lake in Buena Vista county:
16 20 .................................................. $ 1,000,000
16 21 (c) For carter lake in Pottawattamie county:
16 22 .................................................. $ 200,000
16 23 (2) Of the moneys appropriated in this lettered paragraph,
16 24 $200,000 shall be used for the purposes of supporting a low
16 25 head dam public hazard improvement program. The moneys shall
16 26 be used to provide grants to local communities, including
16 27 counties and cities, for projects approved by the department.
16 28 (a) The department shall award grants to dam owners
16 29 including counties, cities, state agencies, cooperatives, and
16 30 individuals, to support projects approved by the department.
16 31 (b) The department shall require each dam owner applying
16 32 for a project grant to submit a project plan for the
16 33 expenditure of the moneys, and file a report with the
16 34 department regarding the project, as required by the
16 35 department.
17 1 (c) The funds can be used for signs, posts, and related
17 2 cabling, and the department shall only award money on a
17 3 matching basis, pursuant to the dam owner contributing at
17 4 least 20 cents for every 80 cents awarded by the department,
17 5 in order to finance the project. For the remainder of the
17 6 funds, including any balance of money not awarded for signs,
17 7 posts, and related cabling, the department shall only award
17 8 moneys to a dam owner on a matching basis. A dam owner shall
17 9 contribute one dollar for each dollar awarded by the
17 10 department in order to finance a project.
17 11 6. STATE BOARD OF REGENTS
17 12 For infrastructure, deferred maintenance, and equipment
17 13 related to Iowa public radio:
17 14 .................................................. $ 2,000,000
17 15 7. IOWA STATE FAIR
17 16 For infrastructure improvements to the Iowa state
17 17 fairgrounds including but not limited to the construction of
17 18 an agricultural exhibition center on the Iowa state
17 19 fairgrounds:
17 20 .................................................. $ 5,000,000
17 21 8,000,000
17 22 8. DEPARTMENT OF TRANSPORTATION
17 23 a. For deposit into the public transit infrastructure
17 24 grant fund created in section 324A.6A:
17 25 .................................................. $ 2,200,000
17 26 b. For infrastructure improvements at the commercial
17 27 service airports within the state:
17 28 .................................................. $ 1,500,000
17 29 Fifty percent of the funds appropriated in this lettered
17 30 paragraph shall be allocated equally between each commercial
17 31 air service airport, forty percent of the funds shall be
17 32 allocated based on the percentage that the number of enplaned
17 33 passengers at each commercial air service airport bears to the
17 34 total number of enplaned passengers in the state during the
17 35 previous fiscal year, and ten percent of the funds shall be
18 1 allocated based on the percentage that the air cargo tonnage
18 2 at each commercial air service airport bears to the total air
18 3 cargo tonnage in the state during the previous fiscal year.
18 4 In order for a commercial air service airport to receive
18 5 funding under this lettered paragraph, the airport shall be
18 6 required to submit applications for funding of specific
18 7 projects to the department for approval by the state
18 8 transportation commission.
18 9 9. DEPARTMENT OF VETERANS AFFAIRS
18 10 a. For matching funds for the construction of resident
18 11 living areas at the Iowa veterans home and related
18 12 improvements associated with the Iowa veterans home
18 13 comprehensive plan:
18 14 .................................................. $ 20,555,329
18 15 b. To build a memorial plaza that honors veterans from the
18 16 Dubuque area:
18 17 .................................................. $ 100,000
18 18 Sec. 12. 2008 Iowa Acts, chapter 1179, sections 19 and 20,
18 19 are amended to read as follows:
18 20 SEC. 19. TAX=EXEMPT STATUS == USE OF APPROPRIATIONS.
18 21 Payment of moneys from the appropriations in this division of
18 22 this Act shall be made in a manner that does not adversely
18 23 affect the tax=exempt status of any outstanding bonds issued
18 24 by the tobacco settlement authority treasurer of state.
18 25 SEC. 20. REVERSION. Notwithstanding section 8.33, moneys
18 26 appropriated in this division of this Act for the fiscal year
18 27 beginning July 1, 2008, and ending June 30, 2009, shall not
18 28 revert at the close of the fiscal year for which they are
18 29 appropriated but shall remain available for the purposes
18 30 designated until the close of the fiscal year that begins July
18 31 1, 2011 2012, or until the project for which the appropriation
18 32 was made is completed, whichever is earlier.
18 33 Sec. 13. APPROPRIATIONS == IOWA JOBS BOND FUND. There is
18 34 appropriated from the Iowa jobs bond fund pursuant to section
18 35 12.88, if enacted by the Eighty=third General Assembly, 2009
19 1 Session, to the following departments and agencies for the
19 2 fiscal year beginning July 1, 2008, and ending June 30, 2009,
19 3 the following amounts, or so much thereof as is necessary, to
19 4 be used for the purposes designated:
19 5 1. DEPARTMENT OF TRANSPORTATION
19 6 a. For multimodal transportation projects including
19 7 trails, transit, rail, and aviation projects:
19 8 .................................................. $ 50,000,000
19 9 b. For road and highway projects with an emphasis on road
19 10 safety and the rehabilitation of deficient bridges:
19 11 .................................................. $200,000,000
19 12 Of the amount appropriated in this lettered paragraph,
19 13 fifty percent shall be allocated for state highway and road
19 14 projects through the state transportation commission's
19 15 application process to reduce structurally deficient or
19 16 functionally obsolete bridges and to improve highway safety,
19 17 twenty percent shall be allocated to cities, twenty percent
19 18 shall be allocated to counties to support local roads not
19 19 eligible for disaster aid and to improve highway safety, and
19 20 ten percent shall be allocated for road flood recovery efforts
19 21 for assisting local governments to rebuild local roads damaged
19 22 by natural disasters.
19 23 2. IOWA FINANCE AUTHORITY
19 24 a. For water quality and wastewater improvement projects:
19 25 .................................................. $100,000,000
19 26 The Iowa finance authority shall establish and administer a
19 27 water quality financial assistance program. The purpose of
19 28 the program shall be to provide additional financial
19 29 assistance to communities receiving loans from the Iowa water
19 30 pollution control works and drinking water facilities
19 31 financing program pursuant to section 16.131. The program
19 32 shall be administered in accordance with rules adopted by the
19 33 authority pursuant to chapter 17A.
19 34 b. For deposit into the housing assistance fund created in
19 35 section 16.40:
20 1 .................................................. $ 10,000,000
20 2 Funds in this lettered paragraph shall be allocated with
20 3 the same funding formula used in the state jumpstart housing
20 4 programs to the same administering entities under contract for
20 5 the state jumpstart housing programs. Administering entities
20 6 may recover reasonable costs.
20 7 For purposes of this lettered paragraph, program funds are
20 8 limited to federal emergency management agency=registered
20 9 homeowners that can demonstrate unmet needs for financial
20 10 assistance to the satisfaction of the administering agency.
20 11 Funds may be used for down payment assistance, interim
20 12 mortgage assistance, and home repairs.
20 13 The state jumpstart housing program income limits do not
20 14 apply for purposes of this lettered paragraph. Including the
20 15 state jumpstart housing programs and the flex housing fund for
20 16 disaster recovery, an aggregate limit of $50,000 per homeowner
20 17 plus a limit of $10,000 per homeowner for energy efficiency
20 18 repairs applies to establish a maximum aggregate limit of
20 19 $60,000 per homeowner.
20 20 c. For deposit into the housing trust fund created in
20 21 section 16.181:
20 22 .................................................. $ 15,000,000
20 23 For purposes of this lettered paragraph, to ensure all Iowa
20 24 communities have reasonable access to funds in the housing
20 25 trust fund, local housing trust funds formed along the
20 26 boundaries set out in chapter 28H shall be eligible to
20 27 participate in the flex housing fund for economic stimulus.
20 28 Counties that are not included in a council of governments
20 29 region shall be included in the same region used for the
20 30 purposes of the community development block grant program for
20 31 purposes of participating in programs established under this
20 32 lettered paragraph. In addition, Iowa cities that receive an
20 33 allocation under the community development block grant program
20 34 are eligible to participate in programs established under this
20 35 lettered paragraph.
21 1 .................................................. $ 25,000,000
21 2 Moneys appropriated in this section shall be prioritized
21 3 based upon project readiness including how quickly the project
21 4 can be started and the estimated time the project will take to
21 5 be completed, the total number and quality of jobs to be
21 6 created by the project, contributions of the project to the
21 7 lasting imprint on this state, contributions of the project to
21 8 sustainability and energy efficiency, amounts of federal,
21 9 state, and private sources of any leveraged funds, the ability
21 10 of the project to fund depreciation costs, and the benefits of
21 11 the project to areas distressed by high unemployment.
21 12 Sec. 14. EMERGENCY RULES. The Iowa jobs board created in
21 13 section 16.191, if enacted in this Act, may adopt emergency
21 14 rules under section 17A.4, subsection 3, and section 17A.5,
21 15 subsection 2, paragraph "b", to implement the provisions of
21 16 this Act and the rules shall be effective immediately upon
21 17 filing unless a later date is specified in the rules. Any
21 18 rules adopted in accordance with this section shall also be
21 19 published as a notice of intended action as provided in
21 20 section 17A.4.
21 21 Sec. 15. EFFECTIVE DATE. This Act, being deemed of
21 22 immediate importance, takes effect upon enactment.
21 23 EXPLANATION
21 24 This bill authorizes the issuance of tax=exempt bonds,
21 25 creates an Iowa jobs bond program, an Iowa jobs board, and an
21 26 Iowa jobs bond fund, makes and revises appropriations, and
21 27 provides for an immediate effective date.
21 28 The bill provides that the treasurer of state shall issue
21 29 tax=exempt bonds to be used in the development and completion
21 30 of public construction projects in the state including
21 31 multimodal transportation projects including trails, transit,
21 32 rail, and aviation projects, housing projects, water quality
21 33 and wastewater improvement projects, road and highway projects
21 34 with an emphasis on public safety and rehabilitation of
21 35 deficient bridges, and for purposes of the Iowa jobs bond
22 1 program created in the bill. The treasurer of state shall
22 2 have all of the powers which are necessary to issue and secure
22 3 bonds and carry out the purposes of the Iowa jobs bond fund
22 4 created in the bill. The treasurer of state shall issue bonds
22 5 in principal amounts which are necessary to provide sufficient
22 6 funds for the Iowa jobs bond fund, the payment of interest on
22 7 the bonds, the establishment of reserves to secure the bonds,
22 8 the costs of issuance of the bonds, other expenditures of the
22 9 treasurer of state incident to and necessary or convenient to
22 10 carry out the bond issues for the fund, and all other
22 11 expenditures of the treasurer of state necessary or convenient
22 12 to administer the fund; provided, however, excluding the
22 13 issuance of refunding bonds, bonds issued pursuant to this
22 14 section may be issued in two or three phases in amounts which
22 15 provide aggregate net proceeds of not more than $750 million.
22 16 The bill provides that the money set aside in a fund or
22 17 funds pledged for any series or issue of bonds or notes shall
22 18 be held for the sole benefit of the series or issue separate
22 19 and apart from moneys pledged for another series or issue of
22 20 bonds or notes of the treasurer of state.
22 21 The bill provides that the bonds are investment securities
22 22 and negotiable instruments within the meaning of and for
22 23 purposes of the uniform commercial code, Code chapter 554.
22 24 The bonds issued under the bill are payable solely and only
22 25 out of the moneys, assets, or revenues of the Iowa jobs bond
22 26 fund and any bond reserve funds, all of which may be deposited
22 27 with trustees or depositories in accordance with bond or
22 28 security documents and pledged by the treasurer of state to
22 29 the payment thereof. Bonds issued under the bill shall
22 30 contain on their face a statement that the bonds do not
22 31 constitute an indebtedness of the state. The treasurer of
22 32 state shall not pledge the credit or taxing power of the state
22 33 or any political subdivision of this state or make bonds
22 34 issued pursuant to this section payable out of any moneys
22 35 except those in the Iowa jobs bond fund. The proceeds of
23 1 bonds issued by the treasurer of state and not required for
23 2 immediate disbursement may be deposited with a trustee or
23 3 depository as provided in the bond documents and invested or
23 4 reinvested in any investment as directed by the treasurer of
23 5 state and specified in the trust indenture, resolution, or
23 6 other instrument pursuant to which the bonds are issued
23 7 without regard to any limitation otherwise provided by law.
23 8 The bill also provides that bonds issued under the bill are
23 9 declared to be issued for a general public and governmental
23 10 purpose and all bonds issued under this section shall be
23 11 exempt from taxation by the state of Iowa and the interest on
23 12 the bonds shall be exempt from the state income tax and the
23 13 state inheritance tax.
23 14 The bill provides that bonds or notes issued pursuant to
23 15 the bill are not debts of the state, nor of any political
23 16 subdivision of the state, and do not constitute a pledge of
23 17 the faith and credit of the state or a charge against the
23 18 general credit or general fund of the state.
23 19 The bill creates the Iowa jobs board consisting of 11
23 20 members located for administrative purposes within the Iowa
23 21 finance authority. Board membership includes five members
23 22 from the general public and the director of the department of
23 23 economic development, the executive director of the rebuild
23 24 Iowa office, the executive director of the Iowa finance
23 25 authority, the director of the department of workforce
23 26 development, the director of the office of energy
23 27 independence, and the director of transportation. The board
23 28 shall administer an Iowa jobs bond program to assist in the
23 29 development and completion of new public construction projects
23 30 relating to disaster relief and mitigation, public buildings,
23 31 local infrastructure, broadband technology, and alternative
23 32 energy infrastructure. The board shall prioritize project
23 33 applications made to the board by a city, county, school
23 34 district, community college, institution of higher learning
23 35 under the state board of regents, or a public organization
24 1 based on how quickly the project can be started and the time
24 2 the project will take to be completed, the total number and
24 3 quality of jobs to be created by the project, contributions of
24 4 the project to the lasting imprint on this state,
24 5 contributions of the project to sustainability and energy
24 6 efficiency, amounts of federal, state, and private sources of
24 7 any leveraged funds, and the ability of the project to fund
24 8 depreciation costs, and the benefits of the project to areas
24 9 distressed by high unemployment.
24 10 The bill creates an Iowa jobs bond fund as a separate and
24 11 distinct fund in the state treasury. The moneys in the fund
24 12 are appropriated to the departments of administrative
24 13 services, corrections, education, natural resources,
24 14 transportation, and veterans affairs, the department for the
24 15 blind, Iowa finance authority, Iowa state fair, and the state
24 16 board of regents and to the Iowa jobs board for purposes of
24 17 the Iowa jobs bond program established in the bill. The
24 18 treasurer of state shall act as custodian of the fund and
24 19 disburse moneys contained in the fund. Revenue for the Iowa
24 20 jobs bond fund shall include but is not limited to the
24 21 proceeds of bonds issued to capitalize and pay the costs of
24 22 the fund and investment earnings on the proceeds, interest
24 23 attributable to investment of money in the fund or an account
24 24 of the fund, moneys in the form of a devise, gift, bequest,
24 25 donation, federal or other grant, reimbursement, repayment,
24 26 judgment, transfer, payment, or appropriation from any source
24 27 intended to be used for the purposes of the fund, all of which
24 28 shall be deposited with the treasurer of state and credited to
24 29 the fund. Moneys in the Iowa jobs bond fund are not subject
24 30 to Code section 8.33. Interest or earnings on moneys in the
24 31 fund shall be credited to the fund.
24 32 The bill also provides that the treasurer of state may
24 33 create and establish one or more special funds, to be known as
24 34 bond reserve funds, to secure one or more issues of bonds or
24 35 notes issued under the bill. The bill also provides that, in
25 1 order further to assure maintenance of the bond reserve funds,
25 2 the treasurer shall, on or before January 1 of each calendar
25 3 year, make and deliver to the governor the treasurer's
25 4 certificate stating the sum, if any, required to restore each
25 5 bond reserve fund to the bond reserve fund requirement for
25 6 that fund. Within 30 days after the beginning of the session
25 7 of the general assembly next following the delivery of the
25 8 certificate, the governor shall submit to both houses printed
25 9 copies of a budget including the sum, if any, required to
25 10 restore each bond reserve fund to the bond reserve fund
25 11 requirement for that fund. Any sums appropriated by the
25 12 general assembly and paid to the treasurer pursuant to this
25 13 subsection shall be deposited by the treasurer in the
25 14 applicable bond reserve fund.
25 15 The bill allocates $56 million annually for the fiscal year
25 16 beginning July 1, 2009, and for each fiscal year through the
25 17 fiscal year beginning July 1, 2028, from the state's wagering
25 18 tax allocations in Code section 8.57 for deposit into the Iowa
25 19 jobs bond fund created in the bill. This allocation is
25 20 preceded by allocations from the state's wagering taxes to the
25 21 general fund, the vision Iowa fund, and the school
25 22 infrastructure fund.
25 23 The bill replaces the appropriations made for project
25 24 funding for FY 2008=2009 from the FY 2009 tax=exempt
25 25 restricted capitals fund account established in Code section
25 26 12E.12 with appropriations from the Iowa jobs bond fund
25 27 created in Code section 12.88 of the bill for the departments
25 28 of administrative services, corrections, education, natural
25 29 resources, transportation, and veterans affairs, the
25 30 department for the blind, Iowa state fair, and the state board
25 31 of regents, and, except for certain appropriations made to the
25 32 departments of administrative services, corrections, natural
25 33 resources, and veterans affairs, appropriates moneys for the
25 34 same fiscal year for the same departments and the same
25 35 projects.
26 1 The bill makes appropriations from the Iowa jobs bond fund
26 2 created in the bill to the department of transportation for
26 3 multimodal transportation projects including trails, transit,
26 4 rails, and aviation projects, and for road and highway
26 5 projects with an emphasis on road safety and the
26 6 rehabilitation of deficient bridges, and to the Iowa finance
26 7 authority for water quality and wastewater improvement
26 8 projects, and for deposit in the housing assistance fund and
26 9 for deposit in the housing trust fund for certain housing
26 10 projects. The designated departments shall consider the same
26 11 eligibility criteria for projects as previously described to
26 12 be considered by the Iowa jobs board.
26 13 The bill takes effect upon enactment.
26 14 LSB 1692XL 83
26 15 rh/rj/8.3