House File 586 - Introduced HOUSE FILE 586 BY COMMITTEE ON COMMERCE (SUCCESSOR TO HSB 153) A BILL FOR An Act relating to financial matters, including mechanic’s 1 liens, and the Iowa finance authority by establishing a rent 2 subsidy program, modifying shelter assistance fund grant 3 award requirements, and revising filing requirements for 4 certain bonds and notes issued by the authority. 5 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 6 TLSB 1235HV (2) 87 ec/nh

H.F. 586 Section 1. Section 16.26, subsection 7, Code 2017, is 1 amended by striking the subsection and inserting in lieu 2 thereof the following: 3 7. A pledge made in respect of bonds or notes shall be 4 valid and binding from the time the pledge is made. The moneys 5 or property so pledged and received after the pledge by the 6 authority shall immediately be subject to the lien of the 7 pledge without physical delivery or further act. The lien of 8 the pledge shall be valid and binding as against all parties 9 having claims of any kind in tort, contract, or otherwise 10 against the authority whether or not the parties have notice 11 of the lien. Neither the resolution, trust agreement, nor 12 any other instrument by which a pledge is created needs to 13 be recorded or filed under the Iowa uniform commercial code, 14 chapter 554, to be valid, binding, or effective against the 15 parties. 16 Sec. 2. Section 16.41, subsection 2, Code 2017, is amended 17 to read as follows: 18 2. The authority shall award grants annually to qualified 19 applicants on a competitive basis. The authority shall 20 establish application procedures, requirements, priorities, and 21 maximum and minimum grant award amounts for each annual grant 22 competition. 23 Sec. 3. NEW SECTION . 16.55 Home and community-based 24 services rent subsidy program. 25 The authority shall establish and administer a home and 26 community-based services rent subsidy program. Under the 27 program, the authority shall provide rent subsidies to 28 those persons who are approved participants under a home 29 and community-based services Medicaid waiver, and to those 30 individuals who are approved participants in the federal 31 money follows the person grant program under the medical 32 assistance program. If the authority utilizes a waiting list 33 for purposes of the program, the authority shall give priority 34 to a person participating in the state’s money follows the 35 -1- LSB 1235HV (2) 87 ec/nh 1/ 3

H.F. 586 person partnership for community integration project who has 1 been assigned to work with a transition specialist. 2 Sec. 4. Section 572.13A, subsection 1, unnumbered paragraph 3 1, Code 2017, is amended to read as follows: 4 A Either a general contractor , or an owner-builder who has 5 contracted or will contract with a subcontractor to provide 6 labor or furnish material for the property , shall post a 7 notice of commencement of work to the mechanics’ notice and 8 lien registry internet site no later than ten days after the 9 commencement of work on the property. A notice of commencement 10 of work is effective only as to any labor, service, equipment, 11 or material furnished to the property subsequent to the 12 posting of the notice of commencement of work. A notice 13 of commencement of work shall include all of the following 14 information: 15 EXPLANATION 16 The inclusion of this explanation does not constitute agreement with 17 the explanation’s substance by the members of the general assembly. 18 This bill concerns the Iowa finance authority and mechanic’s 19 liens. 20 Code section 16.26, concerning bonds and notes issued by 21 the Iowa finance authority, is amended. The bill strikes the 22 requirement that a copy of each pledge agreement relating to 23 bonds and notes shall be filed with the secretary of state to 24 be valid and effective. The bill provides that a pledge made 25 in respect of bonds or notes shall be valid and binding from 26 the time the pledge is made, and that the resolution, trust 27 agreement, or any other instrument by which a pledge is created 28 does not need to be recorded or filed to be valid, binding, or 29 effective against the parties. 30 Code section 16.41, concerning the shelter assistance fund, 31 is amended to eliminate the requirement that the authority 32 award grants from the fund annually. 33 New Code section 16.55 requires the Iowa finance authority 34 to establish and administer a home and community-based services 35 -2- LSB 1235HV (2) 87 ec/nh 2/ 3

H.F. 586 rent subsidy program. The program is to provide rent subsidies 1 to persons who are approved participants under a home and 2 community-based services Medicaid waiver and to individuals 3 who are approved participants in the federal money follows the 4 person grant program under the medical assistance program. 5 Code section 572.13A, concerning posting a notice of 6 commencement of work to the mechanics’ notice and lien 7 registry internet site, is amended. The bill provides that the 8 statutory provision that limits who has to post this notice to 9 one who has contracted or will contract with a subcontractor to 10 provide labor or furnish material for the property applies to 11 an owner-builder but not to a general contractor. 12 -3- LSB 1235HV (2) 87 ec/nh 3/ 3