HSB 661 (LSB 5332XD (5) 90)

SENATE/HOUSE FILE _____

BY  (PROPOSED IOWA FINANCE AUTHORITY BILL)

A BILL FOR

An Act relating to the duties of the Iowa finance authority.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  NEW SECTION.  16.5E  Application or award —— prohibition.
   1.  The authority may prohibit a person from receiving an award of financial assistance, or from being selected as a vendor to provide goods or services to the authority in any of the following circumstances:
   a.  An act or omission by the person seriously affects or threatens public health, public safety, or the environment.
   b.  The person is charged with or convicted of a crime involving dishonesty.
   c.  An act or omission by the person indicates a lack of integrity or honesty.
   d.  The person violates the terms of an agreement or transaction that detrimentally impacts the integrity of a program administered by the authority, or other governmental entity as defined in section 8A.101.
   e.  A compelling cause exists that is relevant to and affects the person’s obligations under the programs administered by the authority, or is relevant to and affects the provision of goods and services to the authority by a vendor.
   2.  Upon a determination by the authority, a person shall be prohibited from receiving an award of financial assistance, or from being selected as a vendor pursuant to subsection 1. The authority shall provide written notice to the prohibited person stating the reason for the prohibition. The authority may immediately disqualify a prohibited person from receiving financial assistance, or from being selected as a vendor.
   3.  The authority shall adopt rules as necessary pursuant to chapter 17A to administer this section.
    Sec. 2.  Section 16.35, subsection 2, Code 2024, is amended by striking the subsection and inserting in lieu thereof the following:
   2.  The authority shall adopt a qualified allocation plan that satisfies the requirements of section 42 of the Internal Revenue Code. The authority may revise the qualified allocation plan provided the revision satisfies the requirements of section 42 of the Internal Revenue Code. When adopting the qualified allocation plan, the authority shall specify the selection criteria, the application procedure, and the allocation of low-income housing credits under the state housing credit ceiling. The selection criteria described in the qualified allocation plan shall include all of the following:
   a.  The selection criteria described in section 42 of the Internal Revenue Code.
   b.  The statutory preferences described in section 42 of the Internal Revenue Code.
   c.  The economic feasibility of the proposed project.
   d.  The ability of the applicant to complete the project in a timely manner.
    Sec. 3.  Section 16.35, subsection 3, Code 2024, is amended by striking the subsection.
    Sec. 4.  Section 16.154, subsection 1, Code 2024, is amended to read as follows:
   1.  An eligible entity may apply to the authority for financial assistance under the program by submitting a plan that meets on an application form as required by the authority. To be approved for an award of financial assistance, the plan must meet all of the following requirements:
   a.  The plan includes proposes one or more projects that improve water quality in the local area or watershed. Projects shall may use practices identified in the Iowa nutrient reduction strategy. 
   b.  The plan describes in detail describes the manner in which the projects will be financed and undertaken, including, as applicable, the sources of revenue directed to financing the improvements as well as the eligible entities that will be receiving the revenues and how such revenues will be spent on the projects.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   This bill relates to the duties of the Iowa finance authority (authority).
   The bill specifies the circumstances in which the authority may prohibit a person from receiving an award or financial assistance, or from being selected as a vendor to provide goods or services to the authority. The circumstances include: an act or omission by the person that seriously affects or threatens public health, public safety, or the environment; the person is charged with or convicted of a crime involving dishonesty; an act or omission by the person that indicates a lack of integrity or honesty; the person violates the terms of an agreement or transaction; or a compelling cause exists that is relevant to and affects the obligations of the person or vendor under programs administered by the authority. The authority is required to provide written notification to the person of the reason for the prohibition, and may immediately disqualify such a person from receiving financial assistance or being selected as a vendor.
   The authority is the designated housing credit agency for the allowance of low-income housing credits under the state housing credit ceiling. The bill requires the authority to adopt a qualified allocation plan that satisfies the requirements of section 42 of the Internal Revenue Code (IRC). The bill allows the authority to revise the qualified allocation plan provided the revision satisfies the requirements of section 42 of the IRC. When adopting the qualified allocation plan under the bill, the authority is required to specify the selection criteria, the application procedure, and the allocation of low-income housing credits under the state housing credit ceiling.
   Under the bill, the selection criteria shall include all of the following: the selection criteria described in section 42 of the IRC, the statutory preferences described in section 42 of the IRC, the economic feasibility of the proposed project, and the ability of the applicant to complete the project in a timely manner.
   The bill strikes a provision allowing the authority to adopt rules specifying the application procedure and the allowance of low-income housing credits under the state housing credit ceiling.
   The bill amends Code section 16.154 relating to entities applying for financial assistance under the water quality financing program. The bill requires an applicant to submit the plan project to the authority on a form required by the authority. The bill strikes the requirement the plan project use practices identified in the Iowa nutrient reduction strategy. The bill provides the plan project describe the manner in which the plan project will be financed and undertaken, and strikes the requirement the description be detailed.