S.F. 408 DIVISION I 1 IOWA JOBS BOARD 2 Section 1. Section 12.87, subsection 12, Code 2013, is 3 amended to read as follows: 4 12. Neither the treasurer of state, the Iowa jobs board 5 finance authority , nor any person acting on behalf of the 6 treasurer of state or the Iowa jobs board finance authority 7 while acting within the scope of their employment or agency, is 8 subject to personal liability resulting from carrying out the 9 powers and duties conferred by this section and sections 12.88 10 through 12.90 . 11 Sec. 2. Section 16.193, subsection 1, Code 2013, is amended 12 to read as follows: 13 1. The Iowa finance authority , subject to approval by the 14 Iowa jobs board, shall adopt administrative rules pursuant to 15 chapter 17A necessary to administer the Iowa jobs program and 16 Iowa jobs II program. The authority shall provide the board 17 with assistance in implementing administrative functions, be 18 responsible for providing technical assistance and application 19 assistance to applicants under the programs, negotiating 20 contracts, and providing project follow up. The authority, in 21 cooperation with the board, may conduct negotiations on behalf 22 of the board with applicants regarding terms and conditions 23 applicable to awards under the program. 24 Sec. 3. Section 16.194, subsection 2, Code 2013, is amended 25 to read as follows: 26 2. A city or county or a public organization in this 27 state may submit an application to the Iowa jobs board 28 authority for financial assistance for a local infrastructure 29 competitive grant for an eligible project under the program, 30 notwithstanding any limitation on the state’s percentage in 31 funding as contained in section 29C.6, subsection 17 . 32 Sec. 4. Section 16.194, subsection 4, unnumbered paragraph 33 1, Code 2013, is amended to read as follows: 34 The board authority shall consider the following criteria in 35 -1- LSB 2116SV (3) 85 ec/nh 1/ 14

S.F. 408 evaluating eligible projects to receive financial assistance 1 under the program: 2 Sec. 5. Section 16.194, subsection 7, Code 2013, is amended 3 to read as follows: 4 7. In order for a project to be eligible to receive 5 financial assistance from the board authority , the project 6 must be a public construction project pursuant to subsection 1 7 with a demonstrated substantial local, regional, or statewide 8 economic impact. 9 Sec. 6. Section 16.194, subsection 8, unnumbered paragraph 10 1, Code 2013, is amended to read as follows: 11 The board authority shall not approve an application for 12 assistance for any of the following purposes: 13 Sec. 7. Section 16.194, subsection 9, paragraph b, Code 14 2013, is amended to read as follows: 15 b. Any portion of an amount allocated for projects 16 that remains unexpended or unencumbered one year after the 17 allocation has been made may be reallocated to another project 18 category, at the discretion of the board authority . The board 19 authority shall ensure that all bond proceeds be expended 20 within three years from when the allocation was initially made. 21 Sec. 8. Section 16.194, subsection 10, Code 2013, is amended 22 to read as follows: 23 10. The board authority shall ensure that funds obligated 24 under this section are coordinated with other federal program 25 funds received by the state, and that projects receiving funds 26 are located in geographically diverse areas of the state. 27 Sec. 9. Section 16.194A, subsections 2, 7, 9, and 10, Code 28 2013, are amended to read as follows: 29 2. A city or county in this state that applies the smart 30 planning principles and guidelines pursuant to sections 18B.1 31 and 18B.2 may submit an application to the Iowa jobs board 32 authority for financial assistance for a local infrastructure 33 competitive grant for an eligible project under the program, 34 notwithstanding any limitation on the state’s percentage in 35 -2- LSB 2116SV (3) 85 ec/nh 2/ 14

S.F. 408 funding as contained in section 29C.6, subsection 17 . 1 7. In order for a project to be eligible to receive 2 financial assistance from the board authority , the project 3 must be a public construction project pursuant to subsection 1 4 with a demonstrated substantial local, regional, or statewide 5 economic impact. 6 9. Any portion of an amount allocated for projects 7 that remains unexpended or unencumbered one year after the 8 allocation has been made may be reallocated to another project 9 category, at the discretion of the board authority . The board 10 authority shall ensure that all bond proceeds be expended 11 within three years from when the allocation was initially made. 12 10. The board authority shall ensure that funds obligated 13 under this section are coordinated with other federal program 14 funds received by the state, and that projects receiving funds 15 are located in geographically diverse areas of the state. 16 Sec. 10. Section 16.194A, subsection 4, unnumbered 17 paragraph 1, Code 2013, is amended to read as follows: 18 The board authority shall consider the following criteria in 19 evaluating eligible projects to receive financial assistance 20 under the program: 21 Sec. 11. Section 16.194A, subsection 8, unnumbered 22 paragraph 1, Code 2013, is amended to read as follows: 23 The board authority shall not approve an application for 24 assistance for any of the following purposes: 25 Sec. 12. Section 16.195, Code 2013, is amended to read as 26 follows: 27 16.195 Iowa jobs program application review. 28 1. Applications for assistance under the Iowa jobs program 29 and Iowa jobs II program shall be submitted to the Iowa finance 30 authority for review and approval . The authority shall provide 31 a staff review and evaluation of applications to the Iowa jobs 32 program review committee referred to in subsection 2 and to the 33 Iowa jobs board. 34 2. A review committee composed of members of the board 35 -3- LSB 2116SV (3) 85 ec/nh 3/ 14

S.F. 408 as determined by the board shall review Iowa jobs program 1 applications submitted to the board and make recommendations 2 regarding the applications to the board. When reviewing the 3 applications, the review committee and the authority shall 4 consider the project criteria specified in sections 16.194 and 5 16.194A . The board authority shall develop the appropriate 6 level of transparency regarding project fund allocations. 7 3. Upon approval of an application for financial assistance 8 under the program, the board authority shall notify the 9 treasurer of state regarding the amount of moneys needed to 10 satisfy the award of financial assistance and the terms of the 11 award. The treasurer of state shall notify the Iowa finance 12 authority any time moneys are disbursed to a recipient of 13 financial assistance under the program. 14 Sec. 13. Section 16.196, Code 2013, is amended to read as 15 follows: 16 16.196 Iowa jobs restricted capitals fund —— fund 17 appropriations. 18 1. An Iowa jobs restricted capitals fund is created and 19 established as a separate and distinct fund in the state 20 treasury. The fund consists of moneys appropriated from 21 the revenue bonds capitals fund created in section 12.88 . 22 The moneys in the fund are appropriated to the Iowa jobs 23 board for purposes of the Iowa jobs program established in 24 section 16.194 . Moneys in the fund shall not be subject to 25 appropriation for any other purpose by the general assembly, 26 but shall be used only for the purposes of the Iowa jobs 27 program. The treasurer of state shall act as custodian of the 28 fund and disburse moneys contained in the fund. The fund shall 29 be administered by the board which shall make allocations from 30 the fund consistent with the purposes of the Iowa jobs program. 31 2. 1. There is appropriated from the revenue bonds capitals 32 fund created in section 12.88 , to the Iowa jobs restricted 33 capitals fund authority , for the fiscal year beginning July 1, 34 2009, and ending June 30, 2010, one hundred sixty-five million 35 -4- LSB 2116SV (3) 85 ec/nh 4/ 14

S.F. 408 dollars to be allocated as follows: 1 a. One hundred eighteen million five hundred thousand 2 dollars for competitive grants for local infrastructure 3 projects relating to disaster rebuilding, reconstruction 4 and replacement of local buildings, flood control and flood 5 protection, and future flood prevention public projects. An 6 applicant for a local infrastructure grant shall not receive 7 more than fifty million dollars in financial assistance from 8 the fund. 9 b. Forty-six million five hundred thousand dollars for 10 disaster relief and mitigation and local infrastructure 11 grants for the following renovation and construction projects, 12 notwithstanding any limitation on the state’s percentage 13 participation in funding as contained in section 29C.6, 14 subsection 17 : 15 (1) For grants to a county with a population between 16 one hundred eighty-nine thousand and one hundred ninety-six 17 thousand in the latest preceding certified federal census, to 18 be distributed as follows: 19 (a) Ten million dollars for the construction of a new, 20 shared facility between nonprofit human service organizations 21 serving the public, especially the needs of low-income Iowans, 22 including those displaced as a result of the disaster of 2008. 23 (b) Five million dollars for the construction or renovation 24 of a facility for a county-funded workshop program serving 25 the public and particularly persons with mental illness or 26 developmental disabilities. 27 (2) For grants to a city with a population between one 28 hundred ten thousand and one hundred twenty thousand in the 29 latest preceding certified federal census, to be distributed 30 as follows: 31 (a) Five million dollars for an economic redevelopment 32 project benefiting the public by improving energy efficiency 33 and the development of alternative and renewable energy 34 technologies. 35 -5- LSB 2116SV (3) 85 ec/nh 5/ 14

S.F. 408 (b) Ten million dollars for a museum serving the public and 1 dedicated to the preservation of an eastern European cultural 2 heritage through the collection, exhibition, preservation, and 3 interpretation of historical artifacts. 4 (c) Five million dollars for a theater serving the public 5 and promoting culture, entertainment, and tourism. 6 (d) Five million dollars for a public library. 7 (e) Five million dollars for a public works building. 8 (3) One million five hundred thousand dollars, to be 9 distributed as follows: 10 (a) Five hundred thousand dollars to a city with a 11 population between six hundred and six hundred fifty in the 12 latest preceding certified federal census, for a public fire 13 station. 14 (b) Five hundred thousand dollars to a city with a 15 population between one thousand four hundred and one thousand 16 five hundred in the latest preceding certified federal census, 17 for a public fire station. 18 (c) Five hundred thousand dollars for a city with a 19 population between seven thousand eight hundred and seven 20 thousand eight hundred fifty, for a public fire station. 21 3. 2. Grant awards for a project under subsection 2 1 , 22 paragraph “b” , are contingent upon submission of a plan for each 23 project by the applicable county or city governing board or in 24 the case of a project submitted pursuant to subsection 2 1 , 25 paragraph “b” , subparagraph (2), subparagraph division (b), by 26 the board of directors, to the Iowa jobs board authority , no 27 later than September 1, 2009, detailing a description of the 28 project, the plan to rebuild, and the amount or percentage of 29 federal, state, local, or private matching moneys which will 30 be or have been provided for the project. Funds not utilized 31 in accordance with subsection 2 , paragraph “b” , due to failure 32 to file a plan by the September 1 deadline 1, shall revert to 33 the Iowa jobs restricted revenue bonds capitals fund to be 34 available for local infrastructure competitive grants . A grant 35 -6- LSB 2116SV (3) 85 ec/nh 6/ 14

S.F. 408 recipient under subsection 2 1 , paragraph “b” , shall not be 1 precluded from applying for a local infrastructure competitive 2 grant pursuant to this section and section 16.195 . 3 4. Moneys in the fund are not subject to section 8.33 . 4 Notwithstanding section 12C.7, subsection 2 , interest or 5 earnings on moneys in the fund shall be credited to the fund. 6 5. 3. Annually, on or before January 15 of each year, the 7 board authority shall report to the legislative services agency 8 and the department of management the status of all projects 9 receiving moneys from the fund completed or in progress. The 10 report shall include a description of the project, the progress 11 of work completed, the total estimated cost of the project, a 12 list of all revenue sources being used to fund the project, the 13 amount of funds expended, the amount of funds obligated, and 14 the date the project was completed or an estimated completion 15 date of the project, where applicable. 16 6. 4. Payment of moneys appropriated from the fund shall be 17 made in a manner that does not adversely affect the tax-exempt 18 status of any outstanding bonds issued by the treasurer of 19 state. 20 Sec. 14. Section 16.197, Code 2013, is amended to read as 21 follows: 22 16.197 Limitation of liability. 23 A member of the Iowa jobs board, a person acting on behalf of 24 the board while acting within the scope of their employment or 25 agency, The authority or the treasurer of state, shall not be 26 subject to personal liability resulting from carrying out the 27 powers and duties of the board authority or the treasurer, as 28 applicable, in sections 16.192 16.193 through 16.196 . 29 Sec. 15. IOWA JOBS BOARD —— TRANSITION PROVISIONS —— 30 LIMITATION OF LIABILITY. 31 1. Any contract or agreement issued or entered into by the 32 Iowa jobs board relating to the provisions of this division 33 of this Act, in effect on the effective date of this division 34 of this Act, shall continue in full force and effect and 35 -7- LSB 2116SV (3) 85 ec/nh 7/ 14

S.F. 408 any responsibility of the board relative to the contracts or 1 agreements as provided in those contracts or agreements shall 2 be transferred to the Iowa finance authority. 3 2. A member of the Iowa jobs board or a person acting on 4 behalf of the board while acting within the scope of that 5 person’s employment or agency shall not be subject to personal 6 liability resulting from carrying out the powers and duties 7 of the board prior to the effective date of this division of 8 this Act, as applicable, in sections 12.87 through 12.90 and in 9 sections 16.192 through 16.196, Code 2013. 10 Sec. 16. REPEAL. Sections 16.191 and 16.192, Code 2013, 11 are repealed. 12 DIVISION II 13 TITLE GUARANTY 14 Sec. 17. Section 16.1, subsection 1, paragraph ad, 15 subparagraph (7), Code 2013, is amended to read as follows: 16 (7) The Iowa title guaranty program. 17 Sec. 18. Section 16.2A, subsection 1, Code 2013, is amended 18 to read as follows: 19 1. A title guaranty division is created within the 20 authority. The division may also be referred to as Iowa title 21 guaranty. The powers of the division relating to the issuance 22 of title guaranties are vested in and shall be exercised by 23 a division board of five members appointed by the governor 24 subject to confirmation by the senate. The membership of 25 the board shall include an attorney, an abstractor, a real 26 estate broker, a representative of a mortgage lender, and 27 a representative of the housing development industry. The 28 executive director of the authority shall appoint an attorney 29 as director of the title guaranty division, who shall serve 30 as an ex officio member of the board. The appointment of and 31 compensation for the division director are exempt from the 32 merit system provisions of chapter 8A, subchapter IV . 33 Sec. 19. Section 16.91, subsections 1, 3, and 4, Code 2013, 34 are amended to read as follows: 35 -8- LSB 2116SV (3) 85 ec/nh 8/ 14

S.F. 408 1. The authority through the title guaranty division shall 1 initiate and operate a program in which the division shall 2 offer guaranties of real property titles in this state. The 3 terms, conditions , and form of the guaranty contract shall be 4 forms approved by the division board. The division shall fix 5 a charge for the guaranty in an amount sufficient to permit 6 the program to operate on a self-sustaining basis, including 7 payment of administrative costs and the maintenance of an 8 adequate reserve against claims under the Iowa title guaranty 9 program. A title guaranty fund is created in the office of 10 the treasurer of state. Funds collected under this program 11 shall be placed in the title guaranty fund and are available 12 to pay all claims, necessary reserves and all administrative 13 costs of the Iowa title guaranty program. Moneys in the fund 14 shall not revert to the general fund and interest on the 15 moneys in the fund shall be deposited in the housing trust 16 fund established in section 16.181 and shall not accrue to the 17 general fund. If the authority board in consultation with the 18 division board determines that there are surplus funds in the 19 title guaranty fund after providing for adequate reserves and 20 operating expenses of the division, the surplus funds shall be 21 transferred to the housing assistance fund created pursuant to 22 section 16.40 . 23 3. With the approval of the authority board the division 24 and its board shall consult with the insurance division of 25 the department of commerce in developing a guaranty contract 26 acceptable to the secondary market and developing any other 27 feature of the program with which the insurance division may 28 have special expertise. The insurance division shall establish 29 the amount for a loss reserve fund. Except as provided in this 30 subsection , the Iowa title guaranty program is not subject to 31 the jurisdiction of or regulation by the insurance division or 32 the commissioner of insurance. 33 4. Each participating attorney and abstractor may be 34 required to pay an annual participation fee to be eligible to 35 -9- LSB 2116SV (3) 85 ec/nh 9/ 14

S.F. 408 participate in the Iowa title guaranty program. The fee, if 1 any, shall be set by the division, subject to the approval of 2 the authority. 3 Sec. 20. Section 16.91, subsection 5, paragraph a, 4 subparagraph (2), Code 2013, is amended to read as follows: 5 (2) Additionally, each participating abstractor is required 6 to own or lease, and maintain and use in the preparation of 7 abstracts, an up-to-date abstract title plant including tract 8 indices for real estate for each county in which abstracts are 9 prepared for real property titles guaranteed by the division. 10 The tract indices shall contain a reference to all instruments 11 affecting the real estate which are recorded in the office of 12 the county recorder, and shall commence not less than forty 13 years prior to the date the abstractor commences participation 14 in the Iowa title guaranty program. However, a participating 15 attorney providing abstract services continuously from November 16 12, 1986, to the date of application, either personally or 17 through persons under the attorney’s supervision and control is 18 exempt from the requirements of this subparagraph. 19 Sec. 21. Section 16.91, subsection 8, Code 2013, is amended 20 to read as follows: 21 8. The authority shall adopt rules pursuant to chapter 17A 22 that are necessary for the implementation of the Iowa title 23 guaranty program as established by the division and that have 24 been approved by the authority. 25 Sec. 22. Section 16.92, subsection 1, paragraph g, Code 26 2013, is amended to read as follows: 27 g. “Participating abstractor” means an abstractor 28 participating in the Iowa title guaranty program. 29 Sec. 23. Section 447.13, subsection 1, Code 2013, is amended 30 to read as follows: 31 1. The cost of serving the notice, including the cost of 32 sending certified mail notices, and the cost of publication 33 under section 447.10 , if publication is required, shall be 34 added to the amount necessary to redeem. The cost of a record 35 -10- LSB 2116SV (3) 85 ec/nh 10/ 14

S.F. 408 search shall also be added to the amount necessary to redeem. 1 However, if the certificate holder is other than a county, the 2 search must be performed by an abstractor who is an active 3 participant in the Iowa title guaranty program under section 4 16.91 or by an attorney licensed to practice law in the state 5 of Iowa, and the amount of the cost of the record search that 6 may be added to the amount necessary to redeem shall not exceed 7 three hundred dollars. 8 DIVISION III 9 IOWA FINANCE AUTHORITY 10 Sec. 24. Section 7C.4A, subsection 5, Code 2013, is amended 11 to read as follows: 12 5. Eighteen percent of the state ceiling shall be allocated 13 to bonds issued by political subdivisions to finance a 14 qualified industry or industries for the manufacturing, 15 processing, or assembly of agricultural or manufactured 16 products even though the processed products may require further 17 treatment before delivery to the ultimate consumer. A single 18 project allocated a portion of the state ceiling pursuant to 19 this subsection shall not receive an allocation in excess of 20 ten twenty million dollars in any calendar year. 21 Sec. 25. Section 16.5, subsection 1, paragraph o, Code 2013, 22 is amended to read as follows: 23 o. Contract directly with architects, engineers, attorneys, 24 accountants, housing construction and finance experts, 25 and other advisors. However, the authority may enter into 26 contracts or agreements for such services with local, state, or 27 federal governmental agencies. 28 Sec. 26. Section 16.26, Code 2013, is amended by adding the 29 following new subsections: 30 NEW SUBSECTION . 10. In connection with any financing 31 which involves an out-of-state issuer issuing bonds, notes, 32 or other obligations for facilities located in the state, the 33 authority is designated as the only governmental unit in the 34 state that may conduct the public hearing required by section 35 -11- LSB 2116SV (3) 85 ec/nh 11/ 14

S.F. 408 147(f) of the federal Internal Revenue Code, as defined in 1 section 422.3, and the governor of Iowa is designated as the 2 applicable elected representative pursuant to section 147(f) of 3 the federal Internal Revenue Code, as defined in section 422.3. 4 NEW SUBSECTION . 11. All bonds or notes issued by the 5 authority in connection with its single family and multifamily 6 programs are exempt from taxation by this state, and the 7 interest on the bonds or notes is exempt from state income tax. 8 Sec. 27. Section 16.102, Code 2013, is amended to read as 9 follows: 10 16.102 Establishment of bond bank program —— bonds and notes 11 —— projects. 12 1. The authority may assist the development and expansion 13 of family farming, soil conservation, housing, and business 14 in the state through the establishment of the Iowa economic 15 development bond bank program. The authority may issue its 16 bonds or notes, or series of bonds or notes for the purpose of 17 defraying the cost of one or more projects and make secured 18 and unsecured loans for the acquisition and construction of 19 projects on terms the authority determines regardless of 20 location . 21 2. For purposes of this section, “project” includes real 22 or personal property connected with a facility that is located 23 outside of the state if at least fifty percent of the financing 24 for the program shall be used in the state and if the authority 25 has conclusively determined that the entity financing or 26 refinancing property located outside the state, or an affiliate 27 thereof, is also engaged in the financing or refinancing of 28 property located within the state, or, alternatively, the 29 entity seeking the financing or refinancing, or an affiliate 30 thereof, maintains a presence within the state, and financing 31 or refinancing the property located outside the state would 32 promote the economy of the state for the benefit of the health, 33 welfare, safety, trade, commerce, industry, or economy of the 34 people of the state. 35 -12- LSB 2116SV (3) 85 ec/nh 12/ 14

S.F. 408 EXPLANATION 1 This bill concerns the Iowa finance authority. 2 Division I eliminates the Iowa jobs board and provides that 3 any duties or responsibilities of the Iowa jobs board shall 4 become the responsibility of the Iowa finance authority. The 5 division also provides transition provisions relative to any 6 contracts or agreements entered into by the Iowa jobs board and 7 provides for a limitation of personal liability for actions by 8 a member or agent of the board taken prior to the effective 9 date of the division relative to the duties of the board. 10 Division II renames the title guaranty program as the 11 Iowa title guaranty program. The bill also allows the title 12 guaranty division to be referred to as Iowa title guaranty. 13 Division III concerns bond activity and the Iowa finance 14 authority. 15 Code section 7C.4A(5), concerning the allocation of 16 the state ceiling on bonds to bonds issued by a political 17 subdivision, is amended to increase the amount any one project 18 may receive from private activity bonds from $10 million to $20 19 million. 20 Code section 16.5, describing the general powers of the Iowa 21 finance authority, is amended. The bill grants the power to 22 the authority to contract directly with architects, engineers, 23 attorneys, and other advisors. 24 Code section 16.26, concerning bonds and notes, is amended. 25 The bill provides that for certain bonds, notes, or other 26 obligations, the authority is designated as the governmental 27 unit that may conduct the public hearing required by the 28 federal Internal Revenue Code and the governor of Iowa is 29 designated as the applicable elected representative pursuant to 30 the Internal Revenue Code. In addition, the bill allows for 31 bonds issued for the single family and multifamily programs to 32 be exempt from state income tax. 33 Code section 16.102, concerning the bond bank program, is 34 amended to allow projects for property located outside of the 35 -13- LSB 2116SV (3) 85 ec/nh 13/ 14