Bill Text: IA HF607 | 2013-2014 | 85th General Assembly | Enrolled

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Bill Title: A bill for an act relating to the state government, by providing for the transfer of powers and duties from the agricultural development authority to the Iowa finance authority, the composition of the Iowa finance authority board of directors, implementation of law by the board, and including effective date provisions. (Formerly HSB 162) Effective 7-1-13, with exception of Division IV, effective 5-9-13.

Sponsorship: Committee Bill

Status: (Passed) 2013-12-31 - END OF 2013 ACTIONS [HF607 Detail]

Download: Iowa-2013-HF607-Enrolled.html

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House File 607
AN ACT
RELATING TO THE STATE GOVERNMENT, BY PROVIDING FOR THE TRANSFER
OF POWERS AND DUTIES FROM THE AGRICULTURAL DEVELOPMENT
AUTHORITY TO THE IOWA FINANCE AUTHORITY, THE COMPOSITION
OF THE IOWA FINANCE AUTHORITY BOARD OF DIRECTORS,
IMPLEMENTATION OF LAW BY THE BOARD, AND INCLUDING EFFECTIVE
DATE PROVISIONS.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
DIVISION I
GENERAL PROVISIONS
Section 1. Section 16.1, subsection 1, Code 2013, is amended
by adding the following new paragraphs:
NEW PARAGRAPH . 0c. “Board” means the Iowa finance authority
board of directors created pursuant to section 16.2.

House File 607, p. 2
NEW PARAGRAPH . 0j. “Executive director” means the executive
director of the Iowa finance authority as appointed pursuant to
section 16.6.
Sec. 2. NEW SECTION . 16.1A Creation —— administration of
programs.
1. The Iowa finance authority is created, and constitutes
a public instrumentality and agency of the state exercising
public and essential governmental functions.
2. The authority shall undertake and administer the
following:
a. Programs established under this chapter to assist in
attainment of adequate housing for low- or moderate-income
families, elderly families, and families which include one or
more persons with disabilities, and to undertake the various
finance programs under this chapter.
b. Programs which assist qualified farmers or agricultural
producers, including beginning farmers, as provided in chapter
175.
3. The Iowa finance authority board of directors shall have
general control, supervision, and regulation of all authority
programs established under this chapter and chapter 175. The
authority is charged with the broad administrative authority
to make, administer, interpret, construe, repeal, and execute
the rules, and to administer, interpret, construe, and execute
the laws of this state relating to such programs. The board
may, by resolution, delegate to the agricultural development
board, executive director, or other authority employee such
of its powers, under such terms and conditions, as it deems
appropriate.
Sec. 3. Section 16.2, subsection 1, Code 2013, is amended
to read as follows:
1. The Iowa finance authority is established, and
constituted a public instrumentality and agency of the state
exercising public and essential governmental functions, to
undertake programs which assist in attainment of adequate
housing for low or moderate income families, elderly
families, and families which include one or more persons with
disabilities, and to undertake the various finance programs.
An Iowa finance authority board of directors is created. The
powers of the authority are vested in and shall be exercised by
a the board of . The board includes nine members appointed by
the governor subject to confirmation by the senate.
a. No Not more than five members shall belong to the same

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political party.
b. As far as possible, the governor shall include within
the membership persons who represent community and housing
development industries, housing finance industries, the real
estate sales industry, elderly families, minorities, lower
income families, very low income families, families which
include persons with disabilities, average taxpayers, local
government, business interests, and any other person specially
interested in community housing, finance, or small business.
Sec. 4. Section 16.2A, subsections 5 and 7, Code 2013, are
amended to read as follows:
5. Members of the board and the executive director shall
give bond as required for public officers in chapter 64 .
7. Members shall elect a chair and vice chair annually and
other officers as they determine. The executive director shall
serve as secretary to the board.
Sec. 5. Section 16.103, subsection 1, Code 2013, is amended
to read as follows:
1. Make secured and unsecured loans for both the acquisition
and the construction of projects on terms the authority
determines. Any loan made with respect to any project for
which a loan may be made pursuant to chapter 175 shall be made
only upon the request and with the consent of the agricultural
development authority. The loans A loan may be made to any
person or entity including, but not limited to, a city , a or
county , and the agricultural development authority for projects
a project approved by the Iowa finance authority. The Iowa
finance authority may take any action which is reasonable and
lawful to protect its security and to avoid losses from its
loans.
Sec. 6. NEW SECTION . 16.221 Agricultural development
division —— administration of programs.
1. An agricultural development division is created within
the authority. The division shall administer chapter 175,
by providing assistance to beginning farmers, agricultural
producers, displaced farmers, or other persons qualifying for
such assistance under chapter 175.
2. The agricultural development division shall be
administered in accordance with the policies of the
agricultural development board created in section 175.3. The
executive director of the authority may organize the division
and employ necessary qualified personnel to administer this
chapter and chapter 175.

House File 607, p. 4
3. The division shall, to every extent practical, assist
such persons to do all of the following:
a. Acquire agricultural land, agricultural improvements,
or depreciable agricultural property, including as provided in
section 175.12 or 175.33.
b. Implement the installation of permanent soil and water
conservation practices and the acquisition of conservation
farm equipment for agricultural land, including as provided in
section 175.34.
c. Obtain affordable operating capital, including as
provided by section 175.35.
d. Begin or expand beef cattle operations, including as
provided in section 175.36.
e. Obtain agricultural assets transfer tax credits,
including by issuing tax credit certificates pursuant to
section 175.37.
f. Develop programs to assist qualified agricultural
producers within the state with financing other capital
requirements or operating expenses.
4. A program established in chapter 175 may be combined with
any other program established in this chapter, or a federal
program, in order to facilitate, as far as practical, the types
of assistance described in this section.
5. The net earnings of the division, beyond that necessary
for retirement of its notes, bonds, or other obligations or to
implement the public purposes and programs authorized in this
chapter or chapter 175, shall not inure to the benefit of any
person other than the state.
6. a. At least two of the authority’s full-time equivalent
positions, as defined in section 8.36A, shall be entirely
dedicated to administering programs established pursuant to
chapter 175. One of those full-time equivalent positions
shall be dedicated to overseeing the administration of those
programs, and to the extent that the programs are affected, the
full-time equivalent position shall be provided the powers and
duties necessary to do all of the following:
(1) Participate in making managerial decisions.
(2) Provide for outreach and promotion.
(3) Improve delivery of services.
b. This subsection is repealed on July 1, 2015.
Sec. 7. Section 175.2, subsection 1, paragraph e, Code 2013,
is amended to read as follows:
e. “Authority” means the agricultural development Iowa

House File 607, p. 5
finance authority established created in section 175.3 16.1A .
Sec. 8. Section 175.2, subsection 1, Code 2013, is amended
by adding the following new paragraphs:
NEW PARAGRAPH . 0h. “Board” means the agricultural
development board created in section 175.3.
NEW PARAGRAPH . 0k. “Executive director” means the executive
director of the Iowa finance authority appointed pursuant to
section 16.6.
Sec. 9. Section 175.3, Code 2013, is amended by striking the
section and inserting in lieu thereof the following:
175.3 Agricultural development board.
1. The powers of the agricultural development division,
created within the Iowa finance authority under section 16.221,
are vested in and shall be exercised by the agricultural
development board as provided in section 16.221 and this
section.
2. The agricultural development board is created to
exercise all powers and perform all duties necessary to
administer this chapter according to policies established by
the Iowa finance authority. The authority shall establish
policies and practices for the division and oversee its
operations. The authority may review or approve decisions
affecting the division or administration of this chapter,
including decisions of the agricultural development board.
3. The agricultural development board consists of five
members appointed by the governor. The executive director of
the Iowa finance authority or the executive director’s designee
shall serve as an ex officio nonvoting member.
4. The appointed members of the agricultural development
board shall be appointed and retain office as follows:
a. Not more than three members shall belong to the same
political party.
b. As far as possible the governor shall include within
the membership persons who represent financial institutions
experienced in agricultural lending, real estate sales,
farmers, beginning farmers, average taxpayers, local
government, soil and water conservation district officials,
agricultural educators, and other persons specially interested
in family farm development.
c. Members shall serve for staggered terms of six years
beginning and ending as provided in section 69.19. A person
appointed to fill a vacancy shall serve only for the unexpired
portion of the member’s term. A member is eligible for

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reappointment. An appointed member may be removed from office
by the governor for misfeasance, malfeasance, willful neglect
of duty, or other just cause, after notice and hearing, unless
the notice and hearing is expressly waived in writing.
5. The agricultural development board shall conduct
business according to all of the following:
a. Three appointed members constitute a quorum and the
affirmative vote of a majority of the appointed members is
necessary for any substantive action taken by the board. A
majority of appointed members shall not include any member who
has a conflict of interest and a statement by a member that
the member has a conflict of interest is conclusive for this
purpose. A vacancy in the membership does not impair the right
of a quorum to exercise all rights and perform all duties of
the board.
b. Meetings of the board shall be held at the call of the
chairperson or whenever two appointed members so request.
c. The appointed members shall elect a chairperson and vice
chairperson annually, and other officers as they determine.
The executive director of the Iowa finance authority or the
executive director’s designee shall serve as secretary to the
board.
6. An appointed member of the agricultural development
board is entitled to receive a per diem as specified in section
7E.6 for each day spent in performance of duties as a member,
and shall be reimbursed for all actual and necessary expenses
incurred in the performance of duties as a member.
7. An appointed member of the agricultural development
board shall give bond as required for public officers in
chapter 64.
Sec. 10. Section 175.4, subsection 11, Code 2013, is amended
to read as follows:
11. It is necessary to create an agricultural development
authority to encourage ownership of farms by beginning farmers
by providing purchase money loans to beginning farmers who are
not able to obtain adequate capital elsewhere to provide such
funds and to lower costs through the use of public financing.
Sec. 11. Section 175.5, unnumbered paragraph 1, Code 2013,
is amended to read as follows:
In the performance of its duties, implementation of its
powers, selection of specific programs and projects to receive
its assistance under this chapter , the authority shall be
guided by the following principles:

House File 607, p. 7
Sec. 12. Section 175.6, unnumbered paragraph 1, Code 2013,
is amended to read as follows:
The authority has all of the general powers needed to carry
out its purposes and duties, and to exercise its specific
powers , under this chapter including but not limited to the
power to do any of the following :
Sec. 13. Section 175.8, subsection 1, unnumbered paragraph
1, Code 2013, is amended to read as follows:
The authority shall submit to the governor and to the members
of the general assembly as request it, not later than January
15 of each year, a complete and economically designed and
reproduced As part of the authority’s report setting forth:
required in section 16.7, the authority shall detail its
activities under this chapter, which shall include all of the
following:
Sec. 14. Section 175.8, subsections 3 and 4, Code 2013, are
amended to read as follows:
3. For fiscal years beginning on or after July 1, 2007,
the auditor of state shall conduct an annual audit of the
agricultural development authority to be paid from resources
of the authority notwithstanding any other audit conducted on
behalf of the authority’s board of directors. The auditor of
state may acquire the services of an outside audit firm, if
necessary, to conduct the audit as required in this subsection .
4. 3. The authority’s executive director , appointed
pursuant to section 175.7 , shall report semiannually to the
general assembly’s standing committees on government oversight
regarding the operations of the authority.
Sec. 15. Section 175.26, Code 2013, is amended by striking
the section and inserting in lieu thereof the following:
175.26 Conflicts of interest.
The requirements and procedures for conflicts of interest
by a member or employee of the authority set forth in section
16.3A shall also apply to this chapter.
Sec. 16. REPEAL. Section 175.7, Code 2013, is repealed.
Sec. 17. EFFECTIVE DATE. This division of this Act takes
effect on July 1, 2013.
DIVISION II
COORDINATING PROVISIONS
Sec. 18. Section 7C.4A, subsection 4, Code 2013, is amended
to read as follows:
4. Twenty-one percent of the state ceiling shall be
allocated to qualified small issue bonds issued for first-time

House File 607, p. 8
farmers under chapter 175 . However, at any time during the
calendar year the governor’s designee, with the approval of the
Iowa agricultural development finance authority, may determine
that a lesser amount need be allocated to qualified small issue
bonds for first-time farmers and on that date this lesser
amount shall be the amount allocated for those bonds and the
excess shall be allocated under subsection 7 .
Sec. 19. Section 12.28, subsection 1, paragraph b, Code
2013, is amended to read as follows:
b. “State agency” means a board, commission, bureau,
division, office, department, or branch of state government.
However, state agency does not mean the state board of regents,
institutions governed by the board of regents, or authorities
created under chapter 16 , 175 , 257C , or 261A .
Sec. 20. Section 12.30, subsection 1, paragraph a, Code
2013, is amended to read as follows:
a. “Authority” means a department, or public or quasi-public
instrumentality of the state including but not limited to the
authority created under chapter 12E , 16 , 175 , 257C , 261A , or
463C , which has the power to issue obligations, except that
“authority” does not include the state board of regents or
the Iowa finance authority to the extent it acts pursuant
to chapter 260C . “Authority” also includes a port authority
created under chapter 28J .
Sec. 21. Section 16.1, subsection 1, paragraph b, Code 2013,
is amended to read as follows:
b. “Authority” means the Iowa finance authority established
created in section 16.2 16.1A .
Sec. 22. Section 159.18, subsection 1, Code 2013, is amended
to read as follows:
1. As used in this section , “farm programs” includes, but
is not limited to, financial incentive programs established
within the division of soil conservation of the department of
agriculture and land stewardship as provided in section 161A.70
and the beginning farmer loan program administered by the
agricultural development Iowa finance authority as provided in
section 175.12 .
Sec. 23. Section 422.7, subsection 19, Code 2013, is amended
to read as follows:
19. Subtract interest earned on bonds and notes issued by
the agricultural development Iowa finance authority as provided
in section 175.17, subsection 10 .
Sec. 24. Section 422.35, subsection 13, Code 2013, is

House File 607, p. 9
amended to read as follows:
13. Subtract the interest earned from bonds and notes issued
by the agricultural development Iowa finance authority as
provided in section 175.17, subsection 10 .
Sec. 25. Section 455B.291, subsection 2, Code 2013, is
amended to read as follows:
2. “Authority” means the Iowa finance authority established
created in section 16.2 16.1A .
Sec. 26. Section 502.201, subsection 9B, Code 2013, is
amended to read as follows:
9B. Agricultural development Iowa finance authority. Any
security issued by the agricultural development Iowa finance
authority under chapter 175 .
Sec. 27. EFFECTIVE DATE. This division of this Act takes
effect on July 1, 2013.
DIVISION III
TRANSITIONAL PROVISIONS —— GENERAL
Sec. 28. ADMINISTRATIVE RULES AND OTHER ACTIONS AND
DOCUMENTS. Any rule, regulation, form, order, or directive
promulgated by agricultural development authority under the
umbrella of the department of agriculture and land stewardship
pursuant to section 175.3, Code 2013, as required to administer
and enforce the provisions of chapter 175 shall continue in
full force and effect until amended, repealed, or supplemented
by affirmative action of the Iowa finance authority.
Sec. 29. PENDING ADMINISTRATIVE OR JUDICIAL PROCEEDINGS.
1. An administrative or judicial proceeding arising under
chapter 175 pending on the effective date of this division of
this Act shall not be affected due to this Act.
2. Any cause of action or statute of limitation relating to
an action taken by a party in a matter arising under chapter
175 shall not be affected by this Act, except that the Iowa
finance authority shall replace the agricultural development
authority as a party.
3. The department of agriculture and land stewardship
or the office of attorney general acting on behalf of the
agricultural development authority in an administrative or
judicial proceeding shall not be affected as result of this
Act. Any statue of limitation shall apply to the parties as if
this Act had not been enacted.
Sec. 30. PERSONNEL. Any personnel in the state merit system
of employment who are transferred due to the effect of this Act
shall be so transferred without any loss in salary, benefits,

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or accrued years of service.
Sec. 31. REPLACEMENT ITEMS. Any replacement of signs,
logos, stationery, insignia, uniforms, and related items that
are made due to the effect of this Act shall be done as part of
the normal replacement cycle for such items.
Sec. 32. APPOINTMENTS. In making appointments to the
agricultural development board as created in section 175.3, as
enacted in this Act, the governor shall appoint a number of
initial members to serve for less than six years to ensure that
members serve staggered terms.
Sec. 33. OUTSTANDING LEGAL OBLIGATIONS AND RIGHTS. Any
interest in real property, tangible personal property,
or intangible personal property held by the agricultural
development authority shall be transferred to the Iowa finance
authority. Any property right, security interest, or lien
held by the agricultural development authority shall vest in
the Iowa finance authority without an instrument of transfer
including but not limited to a deed, contract, or endorsement.
However, nothing in this section prohibits the execution of
such instrument if the Iowa finance authority determines it
is necessary or prudent. Any debt, obligation, or liability
incurred by the agricultural development authority shall be
assumed by the Iowa finance authority, and shall continue
according to the same terms and conditions as applied to the
agricultural development authority. Any right or benefit
arising from a legal instrument in which the agricultural
development authority was a party shall be transferred to the
Iowa finance authority and shall continue as if the transfer
had not occurred.
Sec. 34. ADMINISTRATION OF ONGOING PROGRAMS. The Iowa
finance authority shall complete the administration of ongoing
programs of the agricultural development authority as provided
in chapter 175, to the extent that the administration of
those programs are in progress on the effective date of this
Act. The Iowa finance authority shall assume all rights
and obligations of the agricultural development authority
to the extent that moneys have been committed, obligations
incurred, or rights accrued prior to the effective date of
this Act. Moneys owing due to the rights and obligations of
the agricultural development authority and assumed by the Iowa
finance authority shall be paid as directed by the Iowa finance
authority.
Sec. 35. IOWA RURAL REHABILITATION CORPORATION.

House File 607, p. 11
1. The assets and liabilities of the former Iowa rural
rehabilitation corporation assumed by the agricultural
development authority pursuant to section 175.28 shall be
transferred to the Iowa finance authority on the effective
date of this Act. On such effective date, the Iowa finance
authority shall be the successor in interest to the agreements
in effect between the United States government and the
agricultural development authority on behalf of this state.
2. The United States, acting through the United States
department of agriculture, and its officials, shall be held
harmless against any liability arising out of the transfer of
assets from the agricultural development authority to the Iowa
finance authority, or from the Iowa finance authority carrying
out the provisions of any agreement relating to the use by
this state of the Iowa rural rehabilitation corporation assets
under the management of agricultural development authority as
contained in the Iowa rural rehabilitation corporation trust
liquidation.
Sec. 36. EFFECTIVE DATE. This division of this Act takes
effect July 1, 2013.
DIVISION IV
TRANSITIONAL PROVISIONS —— REQUIREMENTS OF THE IOWA FINANCE
AUTHORITY AND THE AGRICULTURAL DEVELOPMENT AUTHORITY
Sec. 37. GENERAL. The Iowa finance authority shall provide
for the implementation of this Act according to a schedule
approved by the Iowa finance authority’s board of directors
which is consistent with this Act.
Sec. 38. EMERGENCY RULEMAKING. The Iowa finance authority
may adopt emergency rules under section 17A.4, subsection 3,
and section 17A.5, subsection 2, paragraph “b”, to implement
the provisions of this Act, and the rules shall be effective
July 1, 2013, unless a later date is specified in the rules.
Any rules adopted in accordance with this section shall also be
published as a notice of intended action as provided in section
17A.4.
Sec. 39. INTERAUTHORITY COOPERATION. The Iowa finance
authority shall consult with the agricultural development board
when implementing this Act. The agricultural development
authority shall assist the Iowa finance authority in
implementing this Act by providing for an effective transition
of powers and duties from one authority to the other authority
under chapter 175 and related administrative rules.
Sec. 40. EFFECTIVE UPON ENACTMENT. This division of this

House File 607, p. 12
Act, being deemed of immediate importance, takes effect upon
enactment.
______________________________
KRAIG PAULSEN
Speaker of the House
______________________________
PAM JOCHUM
President of the Senate
I hereby certify that this bill originated in the House and
is known as House File 607, Eighty-fifth General Assembly.
______________________________
CARMINE BOAL
Chief Clerk of the House
Approved _______________, 2013
______________________________
TERRY E. BRANSTAD
Governor