Senate Study Bill 1321
SENATE FILE
BY (PROPOSED COMMITTEE ON
APPROPRIATIONS BILL BY
CHAIRPERSON DVORSKY)
Passed Senate, Date Passed House, Date
Vote: Ayes Nays Vote: Ayes Nays
Approved
A BILL FOR
1 An Act relating to bonding authority for the Iowa comprehensive
2 petroleum underground storage tank fund and providing an
3 effective date.
4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
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PAG LIN
1 1 Section 1. Section 455G.2, subsection 1, Code 2009, is
1 2 amended by striking the subsection.
1 3 Sec. 2. Section 455G.2, subsection 3, Code 2009, is
1 4 amended to read as follows:
1 5 3. "Bond" means a bond, note, or other obligation issued
1 6 by the authority treasurer of state for the fund and the
1 7 purposes of this chapter.
1 8 Sec. 3. Section 455G.3, subsection 2, Code 2009, is
1 9 amended to read as follows:
1 10 2. The board shall assist Iowa's owners and operators of
1 11 petroleum underground storage tanks in complying with federal
1 12 environmental protection agency technical and financial
1 13 responsibility regulations by establishment of the Iowa
1 14 comprehensive petroleum underground storage tank fund. The
1 15 authority treasurer of state may issue its bonds, or series of
1 16 bonds, to assist the board, as provided in this chapter.
1 17 Sec. 4. Section 455G.6, subsections 7 through 9, Code
1 18 2009, are amended to read as follows:
1 19 7. The board may contract with the authority treasurer of
1 20 state for the authority treasurer of state to issue bonds and
1 21 do all things necessary with respect to the purposes of the
1 22 fund, as set out in the contract between the board and the
1 23 authority treasurer of state. The board may delegate to the
1 24 authority treasurer of state and the authority treasurer of
1 25 state shall then have all of the powers of the board which are
1 26 necessary to issue and secure bonds and carry out the purposes
1 27 of the fund, to the extent provided in the contract between
1 28 the board and the authority treasurer of state. The authority
1 29 treasurer of state may issue the authority's treasurer of
1 30 state's bonds in principal amounts which, in the opinion of
1 31 the board, are necessary to provide sufficient funds for the
1 32 fund, the payment of interest on the bonds, the establishment
1 33 of reserves to secure the bonds, the costs of issuance of the
1 34 bonds, other expenditures of the authority treasurer of state
1 35 incident to and necessary or convenient to carry out the bond
2 1 issue for the fund, and all other expenditures of the board
2 2 necessary or convenient to administer the fund. The bonds are
2 3 investment securities and negotiable instruments within the
2 4 meaning of and for purposes of the uniform commercial code,
2 5 chapter 554.
2 6 8. Bonds issued under this section are payable solely and
2 7 only out of the moneys, assets, or revenues of the fund, all
2 8 of which may be deposited with trustees or depositories in
2 9 accordance with bond or security documents and pledged by the
2 10 board to the payment thereof, and are not an indebtedness of
2 11 this state or the authority, or a charge against the general
2 12 credit or general fund of the state or the authority, and the
2 13 state shall not be liable for any financial undertakings with
2 14 respect to the fund. Bonds issued under this chapter shall
2 15 contain on their face a statement that the bonds do not
2 16 constitute an indebtedness of the state or the authority.
2 17 9. The proceeds of bonds issued by the authority treasurer
2 18 of state and not required for immediate disbursement may be
2 19 deposited with a trustee or depository as provided in the bond
2 20 documents and invested in any investment approved by the
2 21 authority treasurer of state and specified in the trust
2 22 indenture, resolution, or other instrument pursuant to which
2 23 the bonds are issued without regard to any limitation
2 24 otherwise provided by law.
2 25 Sec. 5. Section 455G.6, subsection 10, paragraph b, Code
2 26 2009, is amended to read as follows:
2 27 b. Negotiable instruments under the laws of the state and
2 28 may be sold at prices, at public or private sale, and in a
2 29 manner, as prescribed by the authority treasurer of state.
2 30 Chapters 73A, 74, 74A and 75 do not apply to their sale or
2 31 issuance of the bonds.
2 32 Sec. 6. Section 455G.6, subsection 12, Code 2009, is
2 33 amended to read as follows:
2 34 12. Bonds must be authorized by a trust indenture,
2 35 resolution, or other instrument of the authority treasurer of
3 1 state, approved by the board. However, a trust indenture,
3 2 resolution, or other instrument authorizing the issuance of
3 3 bonds may delegate to an officer of the issuer the power to
3 4 negotiate and fix the details of an issue of bonds.
3 5 Sec. 7. Section 455G.7, Code 2009, is amended to read as
3 6 follows:
3 7 455G.7 SECURITY FOR BONDS == CAPITAL RESERVE FUND ==
3 8 IRREVOCABLE CONTRACTS.
3 9 1. a. For the purpose of securing one or more issues of
3 10 bonds for the fund, the authority treasurer of state, with the
3 11 approval of the board, may authorize the establishment of one
3 12 or more special funds, called "capital reserve funds". The
3 13 authority treasurer of state may pay into the capital reserve
3 14 funds the proceeds of the sale of its bonds and other money
3 15 which may be made available to the authority treasurer of
3 16 state from other sources for the purposes of the capital
3 17 reserve funds. Except as provided in this section, money in a
3 18 capital reserve fund shall be used only as required for any of
3 19 the following:
3 20 a. (1) The payment of the principal of and interest on
3 21 bonds or of the sinking fund payments with respect to those
3 22 bonds.
3 23 b. (2) The purchase or redemption of the bonds.
3 24 c. (3) The payment of a redemption premium required to be
3 25 paid when the bonds are redeemed before maturity.
3 26 b. However, money in a capital reserve fund shall not be
3 27 withdrawn if the withdrawal would reduce the amount in the
3 28 capital reserve fund to less than the capital reserve fund
3 29 requirement, except for the purpose of making payment, when
3 30 due, of principal, interest, redemption premiums on the bonds,
3 31 and making sinking fund payments when other money pledged to
3 32 the payment of the bonds is not available for the payments.
3 33 Income or interest earned by, or increment to, a capital
3 34 reserve fund from the investment of all or part of the capital
3 35 reserve fund may be transferred by the authority treasurer of
4 1 state to other accounts of the fund if the transfer does not
4 2 reduce the amount of the capital reserve fund below the
4 3 capital reserve fund requirement.
4 4 2. If the authority treasurer of state decides to issue
4 5 bonds secured by a capital reserve fund, the bonds shall not
4 6 be issued if the amount in the capital reserve fund is less
4 7 than the capital reserve fund requirement, unless at the time
4 8 of issuance of the bonds the authority treasurer of state
4 9 deposits in the capital reserve fund from the proceeds of the
4 10 bonds to be issued or from other sources, an amount which,
4 11 together with the amount then in the capital reserve fund, is
4 12 not less than the capital reserve fund requirement.
4 13 3. In computing the amount of a capital reserve fund for
4 14 the purpose of this section, securities in which all or a
4 15 portion of the capital reserve fund is invested shall be
4 16 valued by a reasonable method established by the authority
4 17 treasurer of state. Valuation shall include the amount of
4 18 interest earned or accrued as of the date of valuation.
4 19 4. In this section, "capital reserve fund requirement"
4 20 means the amount required to be on deposit in the capital
4 21 reserve fund as of the date of computation.
4 22 5. To assure maintenance of the capital reserve funds, the
4 23 authority treasurer of state shall, on or before July 1 of
4 24 each calendar year, make and deliver to the governor the
4 25 authority's treasurer of state's certificate stating the sum,
4 26 if any, required to restore each capital reserve fund to the
4 27 capital reserve fund requirement for that fund. Within thirty
4 28 days after the beginning of the session of the general
4 29 assembly next following the delivery of the certificate, the
4 30 governor may submit to both houses printed copies of a budget
4 31 including the sum, if any, required to restore each capital
4 32 reserve fund to the capital reserve fund requirement for that
4 33 fund. Any sums appropriated by the general assembly and paid
4 34 to the authority treasurer of state pursuant to this section
4 35 shall be deposited in the applicable capital reserve fund.
5 1 6. All amounts paid by the state pursuant to this section
5 2 shall be considered advances by the state and, subject to the
5 3 rights of the holders of any bonds of the authority treasurer
5 4 of state that have previously been issued or will be issued,
5 5 shall be repaid to the state without interest from all
5 6 available revenues of the fund in excess of amounts required
5 7 for the payment of bonds of the authority treasurer of state,
5 8 the capital reserve fund, and operating expenses.
5 9 7. If any amount deposited in a capital reserve fund is
5 10 withdrawn for payment of principal, premium, or interest on
5 11 the bonds or sinking fund payments with respect to bonds thus
5 12 reducing the amount of that fund to less than the capital
5 13 reserve fund requirement, the authority treasurer of state
5 14 shall immediately notify the governor and the general assembly
5 15 of this event and shall take steps to restore the capital
5 16 reserve fund to the capital reserve fund requirement for that
5 17 fund from any amounts designated as being available for such
5 18 purpose.
5 19 Sec. 8. Section 455G.8, subsection 2, Code 2009, is
5 20 amended to read as follows:
5 21 2. STATUTORY ALLOCATIONS FUND. The moneys credited from
5 22 the statutory allocations fund under section 321.145,
5 23 subsection 2, paragraph "a", shall be allocated, consistent
5 24 with this chapter, among the fund's accounts, for debt service
5 25 and other fund expenses, according to the fund budget,
5 26 resolution, trust agreement, or other instrument prepared or
5 27 entered into by the board or authority treasurer of state
5 28 under direction of the board.
5 29 Sec. 9. Section 16.151, Code 2009, is repealed.
5 30 Sec. 10. 1989 Iowa Acts, chapter 131, section 63, is
5 31 repealed.
5 32 Sec. 11. EFFECTIVE DATE. This Act, being deemed of
5 33 immediate importance, takes effect upon enactment.
5 34 EXPLANATION
5 35 This bill relates to bonding authority for the Iowa
6 1 comprehensive petroleum underground storage tank fund.
6 2 Currently, the Iowa comprehensive petroleum underground
6 3 storage tank fund board may contract with the Iowa finance
6 4 authority for purposes of the authority issuing bonds for the
6 5 Iowa comprehensive petroleum underground storage tank fund.
6 6 The bill transfers this authority to issue bonds from the Iowa
6 7 finance authority to the treasurer of state and makes
6 8 conforming amendments.
6 9 The bill eliminates a July 1, 2009, repeal of Code sections
6 10 455G.6 and 455G.7, relating to bonding authority for the Iowa
6 11 comprehensive petroleum underground storage tank fund.
6 12 The bill takes effect upon enactment.
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