Senate File 2387 - Reprinted SENATE FILE 2387 BY COMMITTEE ON STATE GOVERNMENT (SUCCESSOR TO SSB 3118) (COMPANION TO HF 2536 BY COMMITTEE ON STATE GOVERNMENT) (As Amended and Passed by the Senate March 18, 2024 ) A BILL FOR An Act relating to the duties of the Iowa finance authority. 1 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 2 SF 2387 (3) 90 jm/ko

S.F. 2387 Section 1. NEW SECTION . 16.5E Application or award —— 1 prohibition. 2 1. The authority may prohibit a person from receiving an 3 award of financial assistance, or from being selected as a 4 vendor to provide goods or services to the authority in any of 5 the following circumstances: 6 a. An act or omission by the person seriously affects or 7 threatens public health, public safety, or the environment. 8 b. The person is charged with or convicted of a crime 9 involving dishonesty. 10 c. An act or omission by the person indicates a lack of 11 integrity or honesty. 12 d. The person violates the terms of an agreement or 13 transaction that detrimentally impacts the integrity of a 14 program administered by the authority, or other governmental 15 entity as defined in section 8A.101. 16 e. A compelling cause exists that is relevant to and affects 17 the person’s obligations under the programs administered by the 18 authority, or is relevant to and affects the provision of goods 19 and services to the authority by a vendor. 20 2. Upon a determination by the authority, a person shall 21 be prohibited from receiving an award of financial assistance, 22 or from being selected as a vendor pursuant to subsection 1. 23 The authority shall provide written notice to the prohibited 24 person stating the reason for the prohibition. The authority 25 may immediately disqualify a prohibited person from receiving 26 financial assistance, or from being selected as a vendor. 27 3. A prohibited person may request a review of the 28 determination made by the authority pursuant to subsection 2. 29 a. The request to review the determination shall be made 30 within thirty-five calendar days of the date the authority 31 provided written notice to the prohibited person. The request 32 to review the determination must be in writing and state the 33 specific reasons or legal basis for review. 34 b. Within sixty calendar days of the receipt of the request 35 -1- SF 2387 (3) 90 jm/ko 1/ 3

S.F. 2387 to review, the authority shall approve, deny, or modify the 1 determination, if the authority finds that the determination 2 is based on a clear error of material fact or law, or if the 3 authority finds the determination was arbitrary, capricious, or 4 an abuse of discretion. 5 c. The authority shall issue its decision in writing and 6 provide written notice of the decision to the prohibited 7 person. 8 d. The decision of the authority pursuant to this subsection 9 shall be considered final agency action. A petition for 10 judicial review of the decision of the authority shall be filed 11 pursuant to section 17A.19. 12 4. The authority shall adopt rules as necessary pursuant to 13 chapter 17A to administer this section. 14 Sec. 2. Section 16.35, subsection 2, Code 2024, is amended 15 by striking the subsection and inserting in lieu thereof the 16 following: 17 2. The authority shall adopt a qualified allocation 18 plan that satisfies the requirements of section 42 of 19 the Internal Revenue Code. The authority may revise the 20 qualified allocation plan provided the revision satisfies the 21 requirements of section 42 of the Internal Revenue Code. When 22 adopting the qualified allocation plan, the authority shall 23 specify the selection criteria, the application procedure, and 24 the allocation of low-income housing credits under the state 25 housing credit ceiling. The selection criteria described 26 in the qualified allocation plan shall include all of the 27 following: 28 a. The selection criteria described in section 42 of the 29 Internal Revenue Code. 30 b. The statutory preferences described in section 42 of the 31 Internal Revenue Code. 32 c. The economic feasibility of the proposed project. 33 d. The ability of the applicant to complete the project in a 34 timely manner. 35 -2- SF 2387 (3) 90 jm/ko 2/ 3

S.F. 2387 Sec. 3. Section 16.35, subsection 3, Code 2024, is amended 1 by striking the subsection. 2 Sec. 4. Section 16.154, subsection 1, Code 2024, is amended 3 to read as follows: 4 1. An eligible entity may apply to the authority for 5 financial assistance under the program by submitting a plan 6 that meets on an application form as required by the authority. 7 To be approved for an award of financial assistance, the plan 8 must meet all of the following requirements: 9 a. The plan includes proposes one or more projects that 10 improve water quality in the local area or watershed. Projects 11 shall use practices identified in the Iowa nutrient reduction 12 strategy. 13 b. The plan describes in detail describes the manner in 14 which the projects will be financed and undertaken, including, 15 as applicable, the sources of revenue directed to financing 16 the improvements as well as the eligible entities that will be 17 receiving the revenues and how such revenues will be spent on 18 the projects. 19 -3- SF 2387 (3) 90 jm/ko 3/ 3