Bill Text: IA SF2328 | 2013-2014 | 85th General Assembly | Enrolled
Bill Title: A bill for an act providing for the reorganization of the Code provisions relating to the Iowa finance authority, revising and eliminating programs, including the beginning farm loan program, providing for existing tax credits, providing for the powers and duties of the authority, and including effective date provisions. (Formerly SSB 3141.) Various effective dates; see bill.
Spectrum: Committee Bill
Status: (Passed) 2014-04-10 - Signed by Governor. S.J. 762. [SF2328 Detail]
Download: Iowa-2013-SF2328-Enrolled.html
Senate
File
2328
AN
ACT
PROVIDING
FOR
THE
REORGANIZATION
OF
THE
CODE
PROVISIONS
RELATING
TO
THE
IOWA
FINANCE
AUTHORITY,
REVISING
AND
ELIMINATING
PROGRAMS,
INCLUDING
THE
BEGINNING
FARM
LOAN
PROGRAM,
PROVIDING
FOR
EXISTING
TAX
CREDITS,
PROVIDING
FOR
THE
POWERS
AND
DUTIES
OF
THE
AUTHORITY,
AND
INCLUDING
EFFECTIVE
DATE
PROVISIONS.
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
DIVISION
I
REORGANIZATION
OF
THE
IOWA
FINANCE
AUTHORITY
GENERAL
PROVISIONS
Section
1.
Section
16.1,
subsection
1,
paragraphs
a,
f,
g,
i,
o,
aa,
ak,
and
al,
Code
2014,
are
amended
by
striking
the
paragraphs.
Sec.
2.
Section
16.1,
subsection
1,
paragraphs
d,
n,
p,
and
af,
Code
2014,
are
amended
to
read
as
follows:
d.
“Bond”
means
a
bond
issued
by
the
authority
pursuant
to
sections
16.26
to
16.30
,
this
chapter
and
includes
a
note
or
other
instrument
evidencing
a
debt
authorized
or
referred
to
in
this
chapter
.
n.
“Guiding
principles”
means
the
principles
provided
in
section
16.4
subchapter
III
which
shall
be
considered
for
amplification
and
interpretation
of
the
goals
of
the
authority.
p.
(1)
“Housing”
means
single
family
and
multifamily
dwellings,
and
facilities
incidental
or
appurtenant
to
the
dwellings,
and
includes
group
homes
of
fifteen
beds
or
less
licensed
as
health
care
facilities
or
child
foster
care
facilities
and
modular
or
mobile
homes
which
are
permanently
affixed
to
a
foundation
and
are
assessed
as
realty.
(2)
“Adequate
housing”
means
housing
which
meets
minimum
Senate
File
2328,
p.
2
structural,
heating,
lighting,
ventilation,
sanitary,
occupancy,
and
maintenance
standards
compatible
with
applicable
building
and
housing
codes,
as
determined
under
rules
of
the
authority.
af.
“Programs”
“Program”
means
any
program
administered
by
the
authority
or
any
program
in
which
the
authority
is
directed
or
authorized
to
participate
pursuant
to
any
statute,
executive
order,
or
interagency
agreement,
or
any
other
program
participation
or
administration
of
which
the
authority
finds
useful
and
convenient
to
further
the
goals
and
purposes
of
the
authority.
“Program”
shall
include
but
not
be
limited
to
all
of
the
following:
(1)
The
housing
assistance
payments
program.
(2)
The
rent
supplements
program.
(3)
The
emergency
housing
fund
program.
(4)
The
special
housing
assistance
program.
(5)
The
single-family
housing
program.
(6)
The
multifamily
housing
program.
(7)
The
title
guaranty
program.
(8)
The
housing
improvement
fund
program.
(9)
The
economic
development
loan
program.
(10)
The
Iowa
economic
development
bond
bank
program.
(11)
The
sewage
treatment
and
drinking
facilities
financing
program.
(12)
The
Iowa
tank
assistance
bond
program.
(13)
The
residential
treatment
facilities
program.
(14)
The
E-911
program.
(15)
The
community
college
dormitory
program.
(16)
The
prison
infrastructure
program.
(17)
The
wastewater
treatment
financial
assistance
program.
(18)
Any
other
program
established
by
the
authority
which
the
authority
finds
useful
and
convenient
to
further
goals
of
the
authority
and
which
is
consistent
with
the
legislative
findings.
Such
additional
programs
shall
be
administered
in
accordance
with
the
guiding
principles
of
the
authority
after
such
notice
and
hearing
as
is
determined
to
be
reasonable
by
the
authority
under
the
circumstances.
Such
additional
programs
shall
be
administered
in
accordance
with
rules,
if
any,
which
the
authority
determines
useful
and
convenient
to
adopt
pursuant
to
chapter
17A
.
Sec.
3.
Section
16.1,
subsection
1,
Code
2014,
is
amended
by
adding
the
following
new
paragraphs:
NEW
PARAGRAPH
.
0a.
“Adequate
housing”
means
housing
which
Senate
File
2328,
p.
3
meets
minimum
structural,
heating,
lighting,
ventilation,
sanitary,
occupancy,
and
maintenance
standards
compatible
with
applicable
building
and
housing
codes,
as
determined
under
rules
of
the
authority.
NEW
PARAGRAPH
.
0g.
“Depreciable
property”
means
personal
property
for
which
an
income
tax
deduction
for
depreciation
is
allowable
in
computing
federal
income
tax
under
the
Internal
Revenue
Code
as
defined
in
section
422.3.
NEW
PARAGRAPH
.
0p.
“Historic
properties”
means
landmarks,
landmark
sites,
or
districts
which
are
significant
in
the
history,
architecture,
archaeology,
or
culture
of
this
state,
its
communities,
or
the
nation.
NEW
PARAGRAPH
.
0v.
(1)
“Lending
institution”
means
any
bank,
trust
company,
mortgage
company,
national
banking
association,
federal
savings
association,
or
life
insurance
company;
any
state
or
federal
governmental
agency
or
instrumentality;
the
federal
land
bank
or
any
of
its
local
associations;
or
any
other
institution
authorized
to
make
loans
in
this
state.
(2)
“Lending
institution”
includes
a
financial
institution
as
defined
in
section
496B.2,
which
lends
moneys
for
farming
purposes
as
provided
in
subchapter
VIII,
or
for
industrial
or
business
purposes.
NEW
PARAGRAPH
.
0ac.
“Net
worth”
means
a
person’s
total
assets
minus
total
liabilities
as
determined
in
accordance
with
generally
accepted
accounting
principles
with
appropriate
exceptions
and
exemptions
reasonably
related
to
an
equitable
determination
of
a
person’s
net
worth.
Assets
shall
be
valued
at
fair
market
value.
NEW
PARAGRAPH
.
0aj.
“Secured
loan”
means
a
financial
obligation
secured
by
a
chattel
mortgage,
security
agreement,
or
other
instrument
creating
a
lien
on
an
interest
in
depreciable
property.
NEW
PARAGRAPH
.
an.
“Veteran”
means
the
same
as
defined
in
section
35.1.
Sec.
4.
Section
16.1,
subsection
2,
Code
2014,
is
amended
by
striking
the
subsection.
Sec.
5.
Section
16.1A,
Code
2014,
is
amended
to
read
as
follows:
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.
Senate
File
2328,
p.
4
2.
The
authority
shall
undertake
and
administer
all
of
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
established
by
the
authority
which
the
authority
finds
useful
and
convenient
to
further
goals
of
the
authority
and
which
are
consistent
with
the
legislative
findings
.
Such
programs
shall
be
administered
in
accordance
with
section
16.4.
Such
additional
programs
shall
be
administered
in
accordance
with
rules,
if
any,
which
the
authority
determines
useful
and
convenient
to
adopt
pursuant
to
chapter
17A.
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
described
in
this
section
.
4.
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.
5.
The
board
may,
by
resolution,
delegate
to
the
agricultural
development
board,
title
guaranty
division
board,
executive
director,
or
other
authority
employee
such
of
its
powers,
under
such
terms
and
conditions,
as
it
deems
appropriate.
Sec.
6.
Section
16.2,
subsection
9,
Code
2014,
is
amended
by
striking
the
subsection.
Sec.
7.
Section
16.2A,
subsection
1,
Code
2014,
is
amended
to
read
as
follows:
1.
A
title
guaranty
division
is
created
within
the
authority.
The
division
may
also
be
referred
to
as
Iowa
title
guaranty.
The
powers
of
the
division
relating
to
the
issuance
of
title
guaranties
are
vested
in
and
shall
be
exercised
by
a
division
board
of
five
members
appointed
by
the
governor
subject
to
confirmation
by
the
senate.
The
membership
of
the
division
board
shall
include
an
attorney,
an
abstractor,
a
real
estate
broker,
a
representative
of
a
mortgage
lender
lending
institution
that
engages
in
mortgage
lending
,
and
a
representative
of
the
housing
development
industry.
The
Senate
File
2328,
p.
5
executive
director
of
the
authority
shall
appoint
an
attorney
as
director
of
the
title
guaranty
division,
who
shall
serve
as
an
ex
officio
member
of
the
division
board.
The
appointment
of
and
compensation
for
the
division
director
are
exempt
from
the
merit
system
provisions
of
chapter
8A,
subchapter
IV
.
Sec.
8.
NEW
SECTION
.
16.2B
Agricultural
development
division
——
administration
of
programs.
1.
An
agricultural
development
division
is
created
within
the
authority.
The
agricultural
development
division
shall
administer
subchapter
VIII
,
by
providing
assistance
to
beginning
farmers,
agricultural
producers,
or
other
persons
qualifying
for
such
assistance
under
subchapter
VIII
.
2.
The
agricultural
development
division
shall
be
administered
in
accordance
with
the
policies
of
the
agricultural
development
board
created
in
section
16.2C
.
The
executive
director
of
the
authority
may
organize
the
agricultural
development
division
and
employ
necessary
qualified
personnel
to
administer
subchapter
VIII.
3.
The
agricultural
development
division
shall,
to
every
extent
practical,
assist
persons
to
do
all
of
the
following:
a.
Acquire
agricultural
land,
agricultural
improvements,
or
depreciable
agricultural
property,
including
as
provided
in
subchapter
VIII.
b.
Obtain
agricultural
assets
transfer
tax
credits,
including
by
issuing
tax
credit
certificates
pursuant
to
subchapter
VIII,
part
5.
c.
Obtain
financing
for
other
capital
requirements
or
operating
expenses.
4.
The
net
earnings
of
the
agricultural
development
division,
beyond
that
necessary
for
retirement
of
its
notes,
bonds,
or
other
obligations
or
to
implement
the
public
purposes
and
programs
authorized
in
subchapter
VIII,
shall
not
inure
to
the
benefit
of
any
person
other
than
the
state.
5.
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
subchapter
VIII.
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.
Senate
File
2328,
p.
6
(3)
Improve
delivery
of
services.
b.
This
subsection
is
repealed
on
July
1,
2015.
Sec.
9.
NEW
SECTION
.
16.2C
Agricultural
development
board.
1.
The
powers
of
the
agricultural
development
division
are
vested
in
and
shall
be
exercised
by
the
agricultural
development
board
as
provided
in
section
16.2B
and
this
section
.
2.
The
agricultural
development
board
is
created
to
exercise
all
powers
and
perform
all
duties
necessary
to
administer
subchapter
VIII
according
to
policies
established
by
the
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
subchapter
VIII,
including
decisions
of
the
agricultural
development
board.
3.
The
agricultural
development
board
consists
of
five
members
appointed
by
the
governor
subject
to
confirmation
by
the
senate.
The
executive
director
of
the
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
retained
in
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
lending
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
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
Senate
File
2328,
p.
7
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
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.
NEW
SECTION
.
16.2D
Council
on
homelessness.
1.
A
council
on
homelessness
is
created
consisting
of
thirty-eight
voting
members.
At
least
one
voting
member
at
all
times
shall
be
a
member
of
a
minority
group.
2.
Members
of
the
council
shall
consist
of
all
of
the
following:
a.
Twenty-six
members
of
the
general
public
appointed
to
two-year
staggered
terms
by
the
governor
in
consultation
with
the
nominating
committee
under
subsection
4
,
paragraph
“a”
.
(1)
Voting
members
from
the
general
public
may
include
but
are
not
limited
to
the
following
types
of
individuals
and
representatives
of
the
following
programs:
homeless
or
formerly
homeless
individuals
and
their
family
members,
youth
shelters,
faith-based
organizations,
local
homeless
service
providers,
emergency
shelters,
transitional
housing
providers,
family
and
domestic
violence
shelters,
private
business,
local
government,
and
community-based
organizations.
(2)
Five
of
the
twenty-six
voting
members
selected
from
the
general
public
shall
be
individuals
who
are
homeless,
formerly
homeless,
or
family
members
of
homeless
or
formerly
homeless
individuals.
(3)
One
of
the
twenty-six
members
selected
from
the
general
Senate
File
2328,
p.
8
public
shall
be
a
representative
of
the
Iowa
state
association
of
counties.
(4)
One
of
the
twenty-six
members
selected
from
the
general
public
shall
be
a
representative
of
the
Iowa
league
of
cities.
b.
Twelve
agency
director
members
consisting
of
all
of
the
following:
(1)
The
director
of
the
department
of
education
or
the
director’s
designee.
(2)
The
director
of
the
economic
development
authority
or
the
director’s
designee.
(3)
The
director
of
human
services
or
the
director’s
designee.
(4)
The
attorney
general
or
the
attorney
general’s
designee.
(5)
The
director
of
the
department
of
human
rights
or
the
director’s
designee.
(6)
The
director
of
public
health
or
the
director’s
designee.
(7)
The
director
of
the
department
on
aging
or
the
director’s
designee.
(8)
The
director
of
the
department
of
corrections
or
the
director’s
designee.
(9)
The
director
of
the
department
of
workforce
development
or
the
director’s
designee.
(10)
The
director
of
the
department
of
public
safety
or
the
director’s
designee.
(11)
The
director
of
the
department
of
veterans
affairs
or
the
director’s
designee.
(12)
The
executive
director
of
the
Iowa
finance
authority
or
the
executive
director’s
designee.
3.
An
agency
director’s
designee
may
vote
on
council
matters
in
the
absence
of
the
director.
4.
a.
A
nominating
committee
initially
comprised
of
all
twelve
agency
director
members
shall
nominate
persons
to
the
governor
to
fill
the
general
public
member
positions.
Following
appointment
of
all
twenty-six
general
public
members,
the
composition
of
the
nominating
committee
may
be
modified
by
rule.
b.
The
council
may
establish
other
committees
and
subcommittees
comprised
of
members
of
the
council.
5.
A
vacancy
on
the
council
shall
be
filled
in
the
same
manner
as
the
original
appointment.
A
member
appointed
to
fill
a
vacancy
created
other
than
by
expiration
of
a
term
shall
be
Senate
File
2328,
p.
9
appointed
for
the
remainder
of
the
unexpired
term.
6.
a.
A
majority
of
the
members
of
the
council
constitutes
a
quorum.
Any
action
taken
by
the
council
must
be
adopted
by
the
affirmative
vote
of
a
majority
of
its
membership.
b.
The
council
shall
elect
a
chairperson
and
vice
chairperson
from
the
membership
of
the
council.
The
chairperson
and
vice
chairperson
shall
each
serve
two-year
terms.
The
positions
of
chairperson
and
vice
chairperson
shall
not
be
held
by
members
who
are
both
either
general
public
members
or
agency
directors.
The
position
of
chairperson
shall
rotate
between
agency
director
members
and
general
public
members.
c.
The
council
shall
meet
at
least
six
times
per
year.
Meetings
of
the
council
may
be
called
by
the
chairperson
or
by
a
majority
of
the
members.
d.
General
public
members
shall
be
reimbursed
by
the
authority
for
actual
and
necessary
expenses
incurred
while
engaged
in
their
official
duties.
7.
The
authority
shall
provide
staff
assistance
and
administrative
support
to
the
council.
8.
The
duties
of
the
council
shall
include
but
are
not
limited
to
the
following:
a.
Develop
a
process
for
evaluating
state
policies,
programs,
statutes,
and
rules
to
determine
whether
any
state
policies,
programs,
statutes,
or
rules
should
be
revised
to
help
prevent
and
alleviate
homelessness.
b.
Evaluate
whether
state
agency
resources
could
be
more
efficiently
coordinated
with
other
state
agencies
to
prevent
and
alleviate
homelessness.
c.
Work
to
develop
a
coordinated
and
seamless
service
delivery
system
to
prevent
and
alleviate
homelessness.
d.
Use
existing
resources
to
identify
and
prioritize
efforts
to
prevent
persons
from
becoming
homeless
and
to
eliminate
factors
that
keep
people
homeless.
e.
Identify
and
use
federal
and
other
funding
opportunities
to
address
and
reduce
homelessness
within
the
state.
f.
Work
to
identify
causes
and
effects
of
homelessness
and
increase
awareness
among
policymakers
and
the
general
public.
g.
Advise
the
governor’s
office,
the
authority,
state
agencies,
and
private
organizations
on
strategies
to
prevent
and
eliminate
homelessness.
9.
a.
The
council
shall
make
annual
recommendations
to
the
governor
regarding
matters
which
impact
homelessness
on
or
Senate
File
2328,
p.
10
before
September
15.
b.
The
council
shall
prepare
and
file
with
the
governor
and
the
general
assembly
on
or
before
the
first
day
of
December
in
each
odd-numbered
year,
a
report
on
homelessness
in
Iowa.
c.
The
council
shall
assist
in
the
completion
of
the
state’s
continuum
of
care
application
to
the
United
States
department
of
housing
and
urban
development.
10.
a.
The
authority,
in
consultation
with
the
council,
shall
adopt
rules
pursuant
to
chapter
17A
for
carrying
out
the
duties
of
the
council
pursuant
to
this
section
.
b.
The
council
shall
establish
internal
rules
of
procedure
consistent
with
the
provisions
of
this
section
.
c.
Rules
adopted
or
internal
rules
of
procedure
established
pursuant
to
paragraph
“a”
or
“b”
shall
be
consistent
with
the
requirements
of
the
federal
McKinney-Vento
Homeless
Assistance
Act,
42
U.S.C.
§11301
et
seq.
11.
The
council
shall
comply
with
the
requirements
of
chapters
21
and
22
.
The
authority
shall
be
the
official
repository
of
council
records.
Sec.
11.
NEW
SECTION
.
16.2E
Legislative
findings
——
general.
The
general
assembly
finds
and
declares
all
of
the
following:
1.
The
establishment
of
the
authority
is
in
all
respects
for
the
benefit
of
the
people
of
the
state
of
Iowa,
for
the
improvement
of
their
health
and
welfare,
and
for
the
promotion
of
the
economy,
which
are
public
purposes.
2.
The
authority
will
be
performing
an
essential
governmental
function
in
the
exercise
of
the
powers
and
duties
conferred
upon
it
by
this
chapter.
3.
All
of
the
purposes
stated
in
this
chapter
are
public
purposes
and
uses
for
which
public
moneys
may
be
borrowed,
expended,
advanced,
loaned,
or
granted.
Sec.
12.
Section
16.3,
subsections
1,
2,
14,
15,
16,
17,
and
18,
Code
2014,
are
amended
by
striking
the
subsections.
Sec.
13.
Section
16.4,
subsection
7,
Code
2014,
is
amended
to
read
as
follows:
7.
The
authority
shall
encourage
the
protection,
restoration
and
rehabilitation
of
historic
properties,
and
the
preservation
of
other
properties
of
special
value
for
architectural
or
esthetic
reasons.
As
used
in
this
subsection
,
“historic
properties”
means
landmarks,
landmark
sites,
or
districts
which
are
significant
in
the
history,
architecture,
Senate
File
2328,
p.
11
archaeology,
or
culture
of
this
state,
its
communities,
or
the
nation.
Sec.
14.
NEW
SECTION
.
16.4A
Legislative
findings
——
agricultural
development.
The
general
assembly
finds
and
declares
all
of
the
following:
1.
There
exists
a
serious
problem
in
this
state
regarding
the
ability
of
nonestablished
farmers
to
acquire
agricultural
land
and
agricultural
improvements
and
depreciable
agricultural
property
in
order
to
enter
farming.
2.
This
barrier
to
entry
into
farming
is
conducive
to
consolidation
of
acreage
of
agricultural
land
with
fewer
individuals
resulting
in
a
grave
threat
to
the
traditional
family
farm.
3.
These
conditions
result
in
a
loss
in
population,
unemployment,
and
a
movement
of
persons
from
rural
communities
to
urban
areas
accompanied
by
added
costs
to
communities
for
creation
of
new
public
facilities
and
services.
4.
One
major
cause
of
this
condition
has
been
recurrent
shortages
of
funds
in
private
channels
and
the
high
interest
cost
of
borrowing.
5.
These
shortages
and
costs
have
made
the
sale
and
purchase
of
agricultural
land
to
beginning
farmers
a
virtual
impossibility
in
many
parts
of
the
state.
6.
The
ordinary
operations
of
private
enterprise
have
not
in
the
past
corrected
these
conditions.
7.
A
stable
supply
of
adequate
funds
for
agricultural
financing
is
required
to
encourage
beginning
farmers
in
an
orderly
and
sustained
manner
and
to
reduce
the
problems
described
in
this
section
.
8.
Article
IX,
2nd
subarticle,
section
3,
of
the
Constitution
of
the
State
of
Iowa
requires
that,
“The
General
Assembly
shall
encourage,
by
all
suitable
means,
the
promotion
of
intellectual,
scientific,
moral,
and
agricultural
improvement,”
and
agricultural
improvement
and
the
public
good
are
served
by
a
policy
of
facilitating
access
to
capital
by
beginning
farmers
unable
to
obtain
capital
elsewhere
in
order
to
preserve,
encourage,
and
protect
the
family
farm
which
has
been
the
economic,
political,
and
social
backbone
of
rural
Iowa.
9.
It
is
necessary
to
create
a
program
to
encourage
ownership
of
farms
by
beginning
farmers
by
providing
purchase
money
loans
to
beginning
farmers
who
are
not
able
to
obtain
Senate
File
2328,
p.
12
adequate
capital
elsewhere
to
provide
such
funds
and
to
lower
costs
through
the
use
of
public
financing.
10.
There
exists
a
serious
problem
in
this
state
regarding
the
ability
of
farmers
to
obtain
affordable
operating
loans
for
reasonable
and
necessary
expenses
and
cash
flow
requirements
of
farming.
11.
Farming
is
one
of
the
principal
pursuits
of
the
inhabitants
of
this
state.
Many
other
industries
and
pursuits,
in
turn,
are
wholly
dependent
upon
farming.
12.
The
inability
of
farmers
to
obtain
affordable
operating
loans
is
conducive
to
a
general
decline
of
the
economy
in
this
state.
13.
A
serious
problem
continues
to
exist
in
this
state
regarding
the
ability
of
agricultural
producers
to
obtain,
retain,
restructure,
or
service
loans
or
other
financing
on
a
reasonable
and
affordable
basis
for
operating
expenses,
cash
flow
requirements,
and
capital
asset
acquisition
or
maintenance.
14.
Because
the
Iowa
economy
is
dependent
upon
the
production
and
marketing
of
agricultural
produce,
the
inability
of
agricultural
producers
to
obtain,
retain,
restructure,
or
service
loans
or
other
financing
on
a
reasonable
and
an
affordable
basis
for
operating
expenses,
cash
flow
requirements,
or
capital
asset
acquisition
or
maintenance
contributes
to
a
general
decline
of
the
state’s
economy.
Sec.
15.
NEW
SECTION
.
16.4B
Guiding
principles
——
agricultural
development.
In
the
performance
of
its
duties,
implementation
of
its
powers,
and
the
selection
of
specific
programs
and
projects
to
receive
its
assistance
under
subchapter
VIII,
the
authority
shall
be
guided
by
the
following
precatory
principles:
1.
The
authority
shall
not
become
an
owner
of
real
or
depreciable
property,
except
on
a
temporary
basis
where
necessary
in
order
to
implement
its
programs,
to
protect
its
investments
by
means
of
foreclosure
or
other
means,
or
to
facilitate
transfer
of
real
or
depreciable
property
for
the
use
of
beginning
farmers.
2.
The
authority
shall
exercise
diligence
and
care
in
selection
of
projects
to
receive
its
assistance
and
shall
apply
customary
and
acceptable
business
and
lending
standards
in
selection
and
subsequent
implementation
of
the
projects.
The
authority
may
delegate
primary
responsibility
for
determination
and
implementation
of
the
projects
to
any
federal
governmental
Senate
File
2328,
p.
13
agency
which
assumes
any
obligation
to
repay
the
loan,
either
directly
or
by
insurance
or
guaranty.
3.
The
authority
shall
develop
programs
for
providing
financial
assistance
to
agricultural
producers
in
this
state.
Sec.
16.
NEW
SECTION
.
16.4C
Legislative
findings
——
title
guaranty.
The
general
assembly
finds
and
declares
that
the
abstract
attorney’s
title
opinion
system
promotes
land
title
stability
for
determining
the
marketability
of
land
titles
and
is
a
public
purpose.
A
public
purpose
is
served
by
providing,
as
an
adjunct
to
the
abstract
attorney’s
title
opinion
system,
a
low-cost
mechanism
to
provide
for
additional
guaranties
of
real
property
titles
in
Iowa.
The
title
guaranties
facilitate
mortgage
lenders’
participation
in
the
secondary
market
and
add
to
the
integrity
of
the
land-title
transfer
system
in
the
state.
Sec.
17.
NEW
SECTION
.
16.4D
Legislative
findings
——
economic
development.
The
general
assembly
finds
and
declares
all
of
the
following:
1.
Economic
development
and
expansion
of
business,
industry,
and
farming
in
the
state
is
dependent
upon
the
availability
of
financing
of
the
development
and
expansion
at
affordable
interest
rates.
2.
The
pooling
of
private
financing
enhances
the
marketability
of
the
obligations
involved
and
increases
access
to
other
state,
regional,
and
national
credit
markets.
3.
The
creation
of
an
economic
development
program
as
provided
in
section
16.102
will
make
the
pooling
of
private
financing
available
to
small
businesses,
farmers,
agricultural
landowners
and
operators,
and
commercial,
industrial,
and
other
business
enterprises
at
favorable
interest
rates
with
reduced
marketing
costs.
Sec.
18.
Section
16.5,
subsection
1,
paragraph
p,
Code
2014,
is
amended
to
read
as
follows:
p.
Through
the
Iowa
title
guaranty
division,
make
and
issue
title
guaranties
on
Iowa
real
property
in
a
form
acceptable
to
the
secondary
market,
to
fix
and
collect
the
charges
for
the
guaranties
and
to
procure
reinsurance
against
any
loss
in
connection
with
the
guaranties.
Sec.
19.
Section
16.5C,
subsections
6
and
8,
Code
2014,
are
amended
to
read
as
follows:
6.
Renegotiate
a
mortgage
loan
or
loan
to
a
mortgage
lender
Senate
File
2328,
p.
14
lending
institution
in
default;
waive
a
default
or
consent
to
the
modification
of
the
terms
of
a
mortgage
loan
or
a
loan
to
a
mortgage
lender
lending
institution
;
forgive
or
forbear
all
or
part
of
a
mortgage
loan
or
a
loan
to
a
mortgage
lender
lending
institution
;
and
commence,
prosecute,
and
enforce
a
judgment
in
any
action,
including
but
not
limited
to
a
foreclosure
action,
to
protect
or
enforce
any
right
conferred
upon
the
authority
by
law,
mortgage
loan
agreement,
contract,
or
other
agreement,
and
in
connection
with
any
such
action,
bid
for
and
purchase
the
property
or
acquire
or
take
possession
of
it,
complete,
administer,
and
pay
the
principal
of
and
interest
on
any
obligations
incurred
in
connection
with
the
property,
and
dispose
of
and
otherwise
deal
with
the
property
in
a
manner
as
the
authority
deems
advisable
to
protect
its
interests.
8.
Purchase,
and
make
advance
commitments
to
purchase,
residential
mortgage
loans
from
mortgage
lenders
lending
institutions
at
prices
and
upon
terms
and
conditions
it
determines
consistent
with
its
goals
and
legislative
findings.
However,
the
total
purchase
price
for
all
residential
mortgage
loans
which
the
authority
commits
to
purchase
from
a
mortgage
lender
lending
institution
at
any
one
time
shall
not
exceed
the
total
of
the
unpaid
principal
balances
of
the
residential
mortgage
loans
purchased.
Mortgage
lenders
Lending
institutions
are
authorized
to
sell
residential
mortgage
loans
to
the
authority
in
accordance
with
this
section
and
the
rules
of
the
authority.
The
authority
may
charge
a
mortgage
lender
lending
institution
a
commitment
fee
or
other
fees
as
set
by
rule
as
a
condition
for
the
authority
purchasing
residential
mortgage
loans.
Sec.
20.
NEW
SECTION
.
16.5D
Specific
powers
and
duties
——
agricultural
development.
The
authority
has
all
of
the
general
and
specific
powers
needed
to
carry
out
its
purposes
and
duties
as
provided
in
this
subchapter
and
to
exercise
its
specific
powers
under
subchapter
VIII.
Sec.
21.
Section
16.7,
Code
2014,
is
amended
to
read
as
follows:
16.7
Annual
report.
1.
The
authority
shall
submit
to
the
governor
and
to
the
general
assembly,
not
later
than
January
15
each
year
,
a
an
annual
report.
2.
The
complete
annual
report
shall
contain
at
least
three
parts
which
include
all
of
the
following:
Senate
File
2328,
p.
15
a.
A
general
description
of
the
authority
setting
forth:
a.
(1)
Its
operations
and
accomplishments.
b.
(2)
Its
receipts
and
expenditures
during
the
fiscal
year,
in
accordance
with
the
classifications
it
establishes
for
its
operating
and
capital
accounts.
c.
(3)
Its
assets
and
liabilities
at
the
end
of
its
fiscal
year
and
the
status
of
reserve,
special
,
and
other
funds.
d.
(4)
A
schedule
of
its
bonds
and
notes
outstanding
at
the
end
of
its
fiscal
year,
together
with
a
statement
of
the
amounts
redeemed
and
issued
during
its
fiscal
year.
e.
(5)
A
statement
of
its
proposed
and
projected
activities.
f.
(6)
Recommendations
to
the
general
assembly,
as
it
deems
necessary.
g.
An
analysis
of
current
housing
needs
in
the
state.
2.
The
annual
report
shall
identify
performance
(7)
Performance
goals
of
the
authority,
and
clearly
indicate
indicating
the
extent
of
progress
during
the
reporting
period,
in
attaining
the
goals.
b.
A
summary
of
housing
programs
administered
under
this
chapter.
The
summary
shall
include
an
analysis
of
current
housing
needs
in
this
state.
Where
possible,
results
shall
be
expressed
in
terms
of
housing
units.
c.
A
summary
of
agricultural
development
programs
administered
under
subchapter
VIII.
Where
possible,
findings
and
results
shall
be
expressed
in
terms
of
number
of
loans,
tax
credits,
participating
qualified
beginning
farmers,
and
acres
of
agricultural
land,
including
by
county.
Sec.
22.
Section
16.9,
Code
2014,
is
amended
by
striking
the
section
and
inserting
in
lieu
thereof
the
following:
16.9
Nondiscrimination
and
affirmative
action.
In
administering
its
programs
under
this
chapter,
the
authority
shall
comply
with
all
applicable
state
and
federal
laws
relating
to
nondiscrimination
and
affirmative
action.
Sec.
23.
NEW
SECTION
.
16.11
Assistance
by
state
officers,
agencies,
and
departments.
State
officers
and
state
departments
and
agencies
may
render
services
to
the
authority
within
their
respective
functions
as
requested
by
the
authority.
Sec.
24.
NEW
SECTION
.
16.13
Conflicts
of
interest.
1.
As
used
in
this
section,
“member”
means
each
individual
appointed
to
any
of
the
following:
a.
The
board
of
directors
of
the
authority
created
pursuant
Senate
File
2328,
p.
16
to
section
16.2.
b.
The
board
of
directors
of
the
agricultural
development
division
created
pursuant
to
section
16.2C.
2.
a.
If
a
member
or
employee
of
the
authority
other
than
the
executive
director
of
the
authority
has
an
interest,
either
direct
or
indirect,
in
a
contract
to
which
the
authority
is,
or
is
to
be,
a
party,
or
in
a
mortgage
lender
requesting
a
loan
from,
or
offering
to
sell
mortgage
loans
to,
the
authority,
the
interest
shall
be
disclosed
to
the
authority
in
writing
and
shall
be
set
forth
in
the
minutes
of
the
authority.
The
member
or
employee
having
the
interest
shall
not
participate
in
any
action
of
the
authority
with
respect
to
that
contract
or
mortgage
lender.
b.
A
violation
of
a
provision
of
this
subsection
is
misconduct
in
office
under
section
721.2.
However,
a
resolution
of
the
authority
is
not
invalid
because
of
a
vote
cast
by
a
member
in
violation
of
this
subsection
unless
the
vote
was
decisive
in
the
passage
of
the
resolution.
c.
For
the
purposes
of
this
subsection,
“action
of
the
authority
with
respect
to
that
contract
or
mortgage
lender”
means
only
an
action
directly
affecting
a
separate
contract
or
mortgage
lender,
and
does
not
include
an
action
which
benefits
the
general
public
or
which
affects
all
or
a
substantial
portion
of
the
contracts
or
mortgage
lenders
included
in
a
program
of
the
authority.
3.
Nothing
in
this
section
shall
be
deemed
to
limit
the
right
of
a
member,
officer,
or
employee
of
the
authority
to
acquire
an
interest
in
bonds
or
notes
of
the
authority
or
to
limit
the
right
of
a
member,
officer,
or
employee
other
than
the
executive
director
to
have
an
interest
in
a
financial
institution,
including
a
lending
institution,
in
which
the
funds
of
the
authority
are,
or
are
to
be,
deposited
or
which
is,
or
is
to
be,
acting
as
trustee
or
paying
agent
under
a
trust
indenture
to
which
the
authority
is
a
party.
4.
The
executive
director
shall
not
have
an
interest
in
a
financial
institution,
including
a
lending
institution,
in
which
the
funds
of
the
authority
are,
or
are
to
be,
deposited
or
which
is,
or
is
to
be,
acting
as
trustee
or
paying
agent
under
a
trust
indenture
to
which
the
authority
is
a
party.
The
executive
director
shall
not
receive,
in
addition
to
fixed
salary
or
compensation,
any
money
or
valuable
thing,
either
directly
or
indirectly,
or
through
any
substantial
interest
in
any
other
corporation
or
business
unit,
for
negotiating,
Senate
File
2328,
p.
17
procuring,
recommending,
or
aiding
in
any
purchase
or
sale
of
property,
or
loan,
made
by
the
authority,
nor
shall
the
executive
director
be
pecuniarily
interested,
either
as
principal,
coprincipal,
agent,
or
beneficiary,
either
directly
or
indirectly,
or
through
any
substantial
interest
in
any
other
corporation
or
business
unit,
in
any
such
purchase,
sale,
or
loan.
Sec.
25.
NEW
SECTION
.
16.16
Liability.
1.
A
member,
as
defined
in
section
16.13,
or
a
person
acting
on
behalf
of
the
authority
while
acting
within
the
scope
of
the
member’s
or
person’s
agency
or
employment,
is
not
subject
to
personal
liability
resulting
from
carrying
out
the
powers
and
duties
in
this
chapter.
2.
The
United
States
and
the
secretary
of
agriculture
of
the
United
States
are
not
subject
to
liability
by
virtue
of
the
transfer
of
the
assets
to
the
authority
under
this
chapter.
3.
The
treasurer
of
state
shall
not
be
subject
to
personal
liability
resulting
from
carrying
out
the
powers
and
duties
of
the
authority
or
the
treasurer
of
state,
as
applicable,
in
subchapter
X,
part
15.
Sec.
26.
NEW
SECTION
.
16.17
Rules.
1.
The
authority
shall
adopt
all
rules
necessary
to
administer
this
chapter.
2.
The
authority
may
establish
by
rule
further
definitions
applicable
to
this
chapter,
and
clarification
of
the
definitions
in
this
chapter,
as
it
deems
convenient
and
necessary
to
carry
out
the
public
purposes
of
this
chapter
including
all
the
following:
a.
Any
rules
necessary
to
assure
eligibility
for
funds
available
under
federal
housing
laws,
or
to
assure
compliance
with
federal
tax
laws
relating
to
the
issuance
of
tax
exempt
bonds
pursuant
to
the
Internal
Revenue
Code
or
relating
to
the
allowance
of
low-income
credits
under
Internal
Revenue
Code
§42.
b.
Any
rule
as
necessary
to
assure
eligibility
for
funds,
insurance,
or
guaranties
available
under
federal
laws
and
to
carry
out
the
public
purposes
of
subchapter
VIII.
3.
The
authority
may
adopt
rules
pursuant
to
chapter
17A
relating
to
the
purchase
and
sale
of
residential
mortgage
loans
and
the
sale
of
mortgage-backed
securities.
Sec.
27.
NEW
SECTION
.
16.18
Inconsistent
provisions.
This
chapter
takes
precedence
over
any
conflicting
provisions
contained
in
section
535.8,
subsection
2,
with
Senate
File
2328,
p.
18
respect
to
the
use
or
enforcement
of
a
due-on-sale
or
similar
clause
in
a
mortgage
loan
agreement,
and
takes
precedence
over
any
conflicting
provisions
contained
in
laws
enacted
after
July
1,
1981,
with
respect
to
the
use
or
enforcement
of
a
due-on-sale
or
similar
clause
in
a
mortgage
loan
agreement
unless
those
laws
expressly
provide
that
they
take
precedence
over
this
chapter.
Sec.
28.
NEW
SECTION
.
16.19
Liberal
interpretation.
This
chapter,
being
necessary
for
the
welfare
of
this
state
and
its
inhabitants,
shall
be
liberally
construed
to
effect
its
purposes.
Sec.
29.
NEW
SECTION
.
16.22
Application
of
funds
from
sales
of
obligations.
All
moneys
received
by
or
on
behalf
of
the
authority,
whether
as
proceeds
from
the
sale
of
obligations
or
as
revenues,
are
trust
funds
to
be
held
and
applied
solely
for
the
purposes
specified
in
the
appropriation,
bond
resolution,
or
other
document
authorizing
receipt
of
the
moneys
by
the
authority.
A
person
with
which
the
moneys
are
deposited
shall
act
as
trustee
of
the
moneys
and
shall
hold
and
apply
the
moneys
for
the
purposes
specified
in
this
chapter
subject
to
limitations
specified
in
this
chapter
and
in
the
bond
resolution
authorizing
the
issuance
of
the
obligations.
Sec.
30.
Section
16.26,
subsection
4,
paragraph
a,
Code
2014,
is
amended
to
read
as
follows:
a.
State
the
date
and
series
of
the
issue,
be
consecutively
numbered,
and
state
on
their
face
that
they
are
payable
both
as
to
principal
and
interest
solely
out
of
the
assets
of
the
authority
and
do
not
constitute
an
indebtedness
of
this
state
or
any
political
subdivision
of
this
state
other
than
the
authority
within
the
meaning
of
any
constitutional
or
statutory
debt
limit.
Sec.
31.
Section
16.26,
subsections
5
and
6,
Code
2014,
are
amended
to
read
as
follows:
5.
The
authority
may
issue
its
bonds
for
the
purpose
of
refunding
any
bonds
or
notes
of
the
authority
then
outstanding,
including
the
payment
of
any
redemption
premiums
thereon
and
any
interest
accrued
or
to
accrue
to
the
date
of
redemption
of
the
outstanding
bonds
or
notes.
Until
the
proceeds
of
bonds
issued
for
the
purpose
of
refunding
outstanding
bonds
or
notes
are
applied
to
the
purchase
or
retirement
of
outstanding
bonds
or
notes
or
the
redemption
of
outstanding
bonds
or
notes,
the
proceeds
may
be
placed
in
escrow
and
be
Senate
File
2328,
p.
19
invested
and
reinvested
in
accordance
with
the
provisions
of
this
chapter
.
The
interest,
income,
and
profits
earned
or
realized
on
an
investment
may
also
be
applied
to
the
payment
of
the
outstanding
bonds
or
notes
to
be
refunded
by
purchase,
retirement,
or
redemption.
After
the
terms
of
the
escrow
have
been
fully
satisfied
and
carried
out,
any
balance
of
proceeds
and
interest
earned
or
realized
on
the
investments
may
be
returned
to
the
authority
for
use
by
it
in
any
lawful
manner.
All
refunding
bonds
shall
be
issued
and
secured
and
subject
to
the
provisions
of
this
chapter
in
the
same
manner
and
to
the
same
extent
as
other
bonds
issued
pursuant
to
this
chapter
.
6.
The
authority
may
issue
negotiable
bond
anticipation
notes
and
may
renew
them
from
time
to
time
but
the
maximum
maturity
of
the
notes,
including
renewals,
shall
not
exceed
ten
years
from
the
date
of
issue
of
the
original
notes.
Notes
Bond
anticipation
notes
are
payable
from
any
available
moneys
of
the
authority
not
otherwise
pledged,
or
from
the
proceeds
of
the
sale
of
bonds
of
the
authority
in
anticipation
of
which
the
bond
anticipation
notes
were
issued.
Notes
Bond
anticipation
notes
may
be
issued
for
any
corporate
purpose
of
the
authority.
Notes
Bond
anticipation
notes
shall
be
issued
in
the
same
manner
as
bonds
,
and
bond
anticipation
notes
,
and
the
resolution
authorizing
them
may
contain
any
provisions,
conditions,
or
limitations,
not
inconsistent
with
the
provisions
of
this
subsection
,
which
the
bonds
or
a
bond
resolution
of
the
authority
may
contain.
Notes
Bond
anticipation
notes
may
be
sold
at
public
or
private
sale.
In
case
of
default
on
its
bond
anticipation
notes
or
violation
of
any
obligations
of
the
authority
to
the
noteholders,
the
noteholders
shall
have
all
the
remedies
provided
in
this
chapter
for
bondholders.
Notes
Bond
anticipation
notes
shall
be
as
fully
negotiable
as
bonds
of
the
authority.
Sec.
32.
NEW
SECTION
.
16.27A
Powers
relating
to
loans.
Subject
to
any
agreement
with
bondholders
or
noteholders,
the
authority
may
renegotiate
a
mortgage
or
secured
loan
or
a
loan
to
a
lending
institution
in
default,
waive
a
default
or
consent
to
the
modification
of
the
terms
of
a
mortgage
or
secured
loan
or
a
loan
to
a
lending
institution,
forgive
or
forbear
all
or
part
of
a
mortgage
or
secured
loan
or
a
loan
to
a
lending
institution,
and
commence,
prosecute,
and
enforce
a
judgment
in
any
action,
including
but
not
limited
to
a
foreclosure
action,
to
protect
or
enforce
any
right
conferred
upon
it
by
law,
mortgage
or
secured
loan
agreement,
contract
Senate
File
2328,
p.
20
or
other
agreement,
and
in
connection
with
any
action,
bid
for
and
purchase
the
property
or
acquire
or
take
possession
of
it,
complete,
administer,
pay
the
principal
of
and
interest
on
any
obligations
incurred
in
connection
with
the
property,
and
dispose
of
and
otherwise
deal
with
the
property
in
a
manner
the
authority
deems
advisable
to
protect
its
interests.
Sec.
33.
NEW
SECTION
.
16.29
Agreement
of
the
state.
The
state
pledges
and
agrees
with
the
holders
of
any
bonds
or
notes
that
the
state
will
not
limit
or
alter
the
rights
vested
in
the
authority
to
fulfill
the
terms
of
agreements
made
with
the
holders
or
in
any
way
to
impair
the
rights
and
remedies
of
the
holders
until
the
bonds
or
notes
together
with
the
interest
on
them,
plus
interest
on
unpaid
installments
of
interest,
and
all
costs
and
expenses
in
connection
with
an
action
by
or
on
behalf
of
the
holders
are
fully
met
and
discharged.
The
authority
may
include
this
pledge
and
agreement
of
the
state
in
any
agreement
with
the
holders
of
bonds
or
notes.
Sec.
34.
NEW
SECTION
.
16.32
Surplus
moneys
——
loan
and
grant
fund.
1.
Moneys
declared
by
the
authority
to
be
surplus
moneys
which
are
not
required
to
service
bonds
and
notes
issued
by
the
authority,
to
pay
administrative
expenses
of
the
authority,
or
to
accumulate
necessary
operating
or
loss
reserves,
shall
be
used
by
the
authority
to
provide
grants,
loans,
subsidies,
and
services
or
assistance
through
programs
authorized
in
this
chapter.
2.
The
authority
may
establish
a
loan
and
grant
fund
which
may
be
comprised
of
the
proceeds
of
appropriations,
grants,
contributions,
surplus
moneys
transferred
as
provided
in
this
section,
and
repayment
of
authority
loans
made
from
such
fund.
Sec.
35.
NEW
SECTION
.
16.34A
Special
definition.
As
used
in
this
subchapter,
unless
the
context
otherwise
requires,
“state
housing
credit
ceiling”
means
the
state
housing
credit
ceiling
as
defined
in
Internal
Revenue
Code
§42(h)(3)(C).
Sec.
36.
NEW
SECTION
.
16.35
State
housing
credit
ceiling
allocation.
1.
The
authority
is
designated
the
housing
credit
agency
for
the
allowance
of
low-income
housing
credits
under
the
state
housing
credit
ceiling.
2.
The
authority
shall
adopt
rules
and
allocation
procedures
which
will
ensure
the
maximum
use
of
available
tax
credits
in
order
to
encourage
development
of
low-income
housing
Senate
File
2328,
p.
21
in
the
state.
The
authority
shall
consider
the
following
factors
in
the
adoption
and
application
of
the
allocation
rules:
a.
Timeliness
of
the
application.
b.
Location
of
the
proposed
housing
project.
c.
Relative
need
in
the
proposed
area
for
low-income
housing.
d.
Availability
of
low-income
housing
in
the
proposed
area.
e.
Economic
feasibility
of
the
proposed
project.
f.
Ability
of
the
applicant
to
proceed
to
completion
of
the
project
in
the
calendar
year
for
which
the
credit
is
sought.
3.
The
authority
shall
adopt
rules
specifying
the
application
procedure
and
the
allowance
of
low-income
housing
credits
under
the
state
housing
credit
ceiling.
Sec.
37.
NEW
SECTION
.
16.36
Participation
in
federal
housing
assistance
payments
program.
The
authority
shall
participate
in
the
housing
assistance
payments
program
under
section
8
of
the
United
States
Housing
Act
of
1937,
as
amended
by
§201
of
the
Housing
and
Community
Development
Act
of
1974,
Pub.
L.
No.
93-383,
codified
at
42
U.S.C.
§1437
et
seq.
Sec.
38.
NEW
SECTION
.
16.38
Loans
to
lending
institutions.
1.
The
authority
may
make,
and
contract
to
make,
loans
to
lending
institutions
on
terms
and
conditions
as
the
authority
determines
are
reasonably
related
to
protecting
the
security
of
the
authority’s
investment
and
to
implementing
the
purposes
of
this
chapter
,
and
subject
to
this
section
.
All
lending
institutions
are
authorized
to
borrow
from
the
authority
in
accordance
with
the
provisions
of
this
section
and
the
rules
of
the
authority.
2.
The
authority
shall
require
as
a
condition
of
each
loan
to
a
lending
institution
that
the
lending
institution,
within
a
reasonable
period
after
receipt
of
the
loan
proceeds
as
the
authority
prescribes
by
rule,
shall
have
entered
into
written
commitments
to
make,
and,
within
a
reasonable
period
thereafter
as
the
authority
prescribes
by
rule,
shall
have
disbursed
the
loan
proceeds
in
new
mortgage
loans
to
low
or
moderate
income
families
in
an
aggregate
principal
amount
equal
to
the
amount
of
the
loan.
New
mortgage
loans
shall
have
terms
and
conditions
as
the
authority
prescribes
by
rules
which
are
reasonably
related
to
implementing
the
purposes
of
this
chapter
.
3.
The
authority
shall
require
the
submission
to
the
Senate
File
2328,
p.
22
authority
by
each
lending
institution
to
which
the
authority
has
made
a
loan,
of
evidence
satisfactory
to
the
authority
of
the
making
of
new
mortgage
loans
to
low
or
moderate
income
families
as
required
by
this
section
,
and
in
that
connection
may,
through
its
members,
employees,
or
agents,
inspect
the
books
and
records
of
a
lending
institution.
4.
Compliance
by
a
lending
institution
with
the
terms
of
its
agreement
with
the
authority
with
respect
to
the
making
of
new
mortgage
loans
to
low
or
moderate
income
families
may
be
enforced
by
decree
of
any
district
court
of
this
state.
The
authority
may
require
as
a
condition
of
a
loan
to
a
national
banking
association
or
a
federally
chartered
savings
and
loan
association,
the
consent
of
the
association
to
the
jurisdiction
of
courts
of
this
state
over
any
such
proceeding.
The
authority
may
also
require,
as
a
condition
of
a
loan
to
a
lending
institution,
agreement
by
the
lending
institution
to
the
payment
of
penalties
to
the
authority
for
violation
by
the
lending
institution
of
its
agreement
with
the
authority,
and
the
penalties
shall
be
recoverable
at
the
suit
of
the
authority.
5.
The
authority
shall
require
that
each
lending
institution
receiving
a
loan
pursuant
to
this
section
shall
issue
and
deliver
to
the
authority
an
evidence
of
its
indebtedness
to
the
authority
which
shall
constitute
a
general
obligation
of
the
lending
institution
and
shall
bear
a
date,
mature
at
a
time,
be
subject
to
prepayment,
and
contain
other
provisions
consistent
with
this
section
and
reasonably
related
to
protecting
the
security
of
the
authority’s
investment,
as
the
authority
determines.
6.
Notwithstanding
any
other
provision
of
this
section
to
the
contrary,
the
interest
rate
and
other
terms
of
loans
to
lending
institutions
made
from
the
proceeds
of
an
issue
of
bonds
or
notes
of
the
authority
shall
be
at
least
sufficient
to
assure
the
payment
of
the
bonds
or
notes
and
the
interest
on
them
as
they
become
due.
7.
The
authority
shall
require
that
loans
to
lending
institutions
are
additionally
secured
as
to
payment
of
both
principal
and
interest
by
a
pledge
of
and
lien
upon
collateral
security
by
special
escrow
funds
or
other
forms
of
guaranty
and
in
such
amounts
and
forms
as
the
authority
shall
by
resolution
determine
to
be
necessary
to
assure
the
payment
of
the
loans
and
the
interest
thereon
as
they
become
due.
Collateral
security
shall
consist
of
direct
obligations
of,
or
obligations
Senate
File
2328,
p.
23
guaranteed
by,
the
United
States
or
one
of
its
agencies,
obligations
satisfactory
to
the
authority
which
are
issued
by
other
federal
agencies,
direct
obligations
of
or
obligations
guaranteed
by
a
state
or
a
political
subdivision
of
a
state,
or
investment
quality
obligations
approved
by
the
authority.
8.
The
authority
may
require
that
collateral
for
loans
be
deposited
with
a
bank,
trust
company,
or
other
financial
institution
acceptable
to
the
authority
located
in
this
state
and
designated
by
the
authority
as
custodian.
In
the
absence
of
such
a
requirement,
each
lending
institution
shall
enter
into
an
agreement
with
the
authority
containing
provisions
as
the
authority
deems
necessary
to
adequately
identify
and
maintain
the
collateral,
service
the
collateral,
and
require
the
lending
institution
to
hold
the
collateral
as
an
agent
for
the
authority
and
be
accountable
to
the
authority
as
the
trustee
of
an
express
trust
for
the
application
and
disposition
of
the
collateral
and
the
income
from
it.
The
authority
may
also
establish
additional
requirements
as
the
authority
deems
necessary
with
respect
to
the
pledging,
assigning,
setting
aside,
or
holding
of
collateral
and
the
making
of
substitutions
for
it
or
additions
to
it
and
the
disposition
of
income
and
receipts
from
it.
9.
The
authority
may
require
as
a
condition
of
loans
to
lending
institutions,
any
representations
and
warranties
the
authority
determines
are
necessary
to
secure
the
loans
and
carry
out
the
purposes
of
this
section
.
10.
If
a
provision
of
this
section
is
inconsistent
with
a
provision
of
law
of
this
state
governing
lending
institutions,
the
provision
of
this
section
controls
for
the
purposes
of
this
section
.
Sec.
39.
NEW
SECTION
.
16.39
Purchase
of
mortgage
loans.
1.
The
authority
may
purchase,
and
make
advance
commitments
to
purchase,
mortgage
loans
from
lending
institutions
at
prices
and
upon
terms
and
conditions
as
the
authority
determines
subject
to
this
section
.
However,
the
total
purchase
price
for
all
mortgage
loans
which
the
authority
commits
to
purchase
from
a
lending
institution
at
any
one
time
shall
not
exceed
the
total
of
the
unpaid
principal
balances
of
the
mortgage
loans
purchased.
Lending
institutions
are
authorized
to
sell
mortgage
loans
to
the
authority
in
accordance
with
the
provisions
of
this
section
and
the
rules
of
the
authority.
2.
The
authority
shall
require
as
a
condition
of
purchase
of
mortgage
loans
from
lending
institutions
that
the
lending
Senate
File
2328,
p.
24
institutions,
within
a
reasonable
period
after
receipt
of
the
purchase
price
as
the
authority
prescribes
by
rule,
shall
enter
into
written
commitments
to
loan
and,
within
a
reasonable
period
thereafter
as
the
authority
prescribes
by
rule,
shall
loan
an
amount
equal
to
the
entire
purchase
price
of
the
mortgage
loans,
on
new
mortgage
loans
to
low
or
moderate
income
families
or
certify
that
mortgage
loans
purchased
are
mortgage
loans
made
to
low
or
moderate
income
families.
New
mortgage
loans
to
be
made
by
lending
institutions
shall
have
terms
and
conditions
as
the
authority
prescribes
by
rule.
The
authority
may
make
a
commitment
to
purchase
mortgage
loans
from
lending
institutions
in
advance
of
the
time
such
loans
are
made
by
lending
institutions.
The
authority
shall
require
as
a
condition
of
such
commitment
that
lending
institutions
certify
in
writing
that
all
mortgage
loans
represented
by
the
commitment
will
be
made
to
low
or
moderate
income
families,
and
that
other
authority
specifications
will
be
complied
with.
3.
The
authority
shall
require
the
submission
to
the
authority
by
each
lending
institution
from
which
the
authority
has
purchased
mortgages,
of
evidence
satisfactory
to
the
authority
of
the
making
of
new
mortgage
loans
to
low
or
moderate
income
families
as
required
by
this
section
and
in
that
connection
may,
through
its
members,
employees,
or
agents,
inspect
the
books
and
records
of
a
lending
institution.
4.
Compliance
by
a
lending
institution
with
the
terms
of
its
agreement
with
the
authority
with
respect
to
the
making
of
new
mortgage
loans
to
low
or
moderate
income
families
may
be
enforced
by
decree
of
any
district
court
of
this
state.
The
authority
may
require
as
a
condition
of
purchase
of
mortgage
loans
from
any
national
banking
association
or
federally
chartered
savings
and
loan
association,
the
consent
of
the
association
to
the
jurisdiction
of
courts
of
this
state
over
any
such
proceeding.
The
authority
may
also
require
as
a
condition
of
the
authority’s
purchase
of
mortgage
loans
from
a
lending
institution,
agreement
by
the
lending
institution
to
the
payment
of
penalties
to
the
authority
for
violation
by
the
lending
institution
of
its
agreement
with
the
authority,
and
the
penalties
shall
be
recoverable
at
the
suit
of
the
authority.
5.
The
authority
may
require
as
a
condition
of
purchase
of
a
mortgage
loan
from
a
lending
institution
that
the
lending
institution
represent
and
warrant
to
the
authority
that:
a.
The
unpaid
principal
balance
of
the
mortgage
loan
and
Senate
File
2328,
p.
25
the
interest
rate
on
it
have
been
accurately
stated
to
the
authority.
b.
The
amount
of
the
unpaid
principal
balance
is
justly
due
and
owing.
c.
The
lending
institution
has
no
notice
of
the
existence
of
any
counterclaim,
offset,
or
defense
asserted
by
the
mortgagor
or
the
mortgagor’s
successor
in
interest.
d.
The
mortgage
loan
is
evidenced
by
a
bond
or
promissory
note
and
a
mortgage
which
has
been
properly
recorded
with
the
appropriate
public
official.
e.
The
mortgage
constitutes
a
valid
first
lien
on
the
real
property
described
to
the
authority
subject
only
to
real
property
taxes
not
yet
due,
installments
of
assessments
not
yet
due,
and
easements
and
restrictions
of
record
which
do
not
adversely
affect,
to
a
material
degree,
the
use
or
value
of
the
real
property
or
improvements
on
it.
f.
The
mortgagor
is
not
now
in
default
in
the
payment
of
any
installment
of
principal
or
interest,
escrow
funds,
or
real
property
taxes,
or
otherwise
in
the
performance
of
obligations
under
the
mortgage
documents
and
has
not
to
the
knowledge
of
the
lending
institution
been
in
default
in
the
performance
of
any
obligation
under
the
mortgage
for
a
period
of
longer
than
sixty
days
during
the
life
of
the
mortgage.
g.
The
improvements
to
the
mortgaged
real
property
are
covered
by
a
valid
and
subsisting
policy
of
insurance
issued
by
a
company
authorized
to
issue
such
policies
in
this
state
and
providing
fire
and
extended
coverage
in
amounts
as
the
authority
prescribes
by
rule.
h.
The
mortgage
loan
meets
the
prevailing
investment
quality
standards
for
mortgage
loans
in
this
state.
6.
A
lending
institution
is
liable
to
the
authority
for
damages
suffered
by
the
authority
by
reason
of
the
untruth
of
a
representation
or
the
breach
of
a
warranty
and,
in
the
event
that
a
representation
proves
to
be
untrue
when
made
or
in
the
event
of
a
breach
of
warranty,
the
lending
institution
shall,
at
the
option
of
the
authority,
repurchase
the
mortgage
loan
for
the
original
purchase
price
adjusted
for
amounts
subsequently
paid
on
it,
as
the
authority
determines.
7.
The
authority
shall
require
the
recording
of
an
assignment
of
a
mortgage
loan
purchased
by
the
authority
from
a
lending
institution
and
shall
not
be
required
to
notify
the
mortgagor
of
the
authority’s
purchase
of
the
mortgage
loan.
The
authority
shall
not
be
required
to
inspect
or
take
Senate
File
2328,
p.
26
possession
of
the
mortgage
documents
if
the
mortgage
lender
from
which
the
mortgage
loan
is
purchased
by
the
authority
enters
into
a
contract
to
service
the
mortgage
loan
and
account
to
the
authority
for
it.
8.
If
a
provision
of
this
section
is
inconsistent
with
another
provision
of
law
of
this
state
governing
lending
institutions,
the
provision
of
this
section
controls
for
the
purposes
of
this
section
.
Sec.
40.
Section
16.40,
subsection
3,
Code
2014,
is
amended
to
read
as
follows:
3.
The
authority
may
use
moneys
in
the
fund
to
provide
financial
assistance
to
a
housing
sponsor
or
an
individual
in
the
form
of
a
loan,
loan
guarantee
guaranty
,
grant,
or
interest
subsidy,
or
by
other
means
under
the
general
powers
of
the
authority.
Sec.
41.
NEW
SECTION
.
16.46
Senior
living
revolving
loan
program
fund.
1.
A
senior
living
revolving
loan
program
fund
is
created
within
the
authority.
The
moneys
in
the
senior
living
revolving
loan
program
fund
shall
be
used
by
the
authority
for
the
development
and
operation
of
a
revolving
loan
program
to
provide
financing
to
construct
affordable
assisted
living
and
service-enriched
affordable
housing
for
seniors
and
persons
with
disabilities,
including
through
new
construction
or
acquisition
and
rehabilitation.
2.
Moneys
transferred
by
the
authority
for
deposit
in
the
senior
living
revolving
loan
program
fund,
moneys
appropriated
to
the
senior
living
revolving
loan
program,
and
any
other
moneys
available
to
and
obtained
or
accepted
by
the
authority
for
placement
in
the
senior
living
revolving
loan
program
fund
shall
be
deposited
in
the
fund.
Additionally,
payment
of
interest,
recaptures
of
awards,
and
other
repayments
to
the
senior
living
revolving
loan
program
fund
shall
be
deposited
in
the
fund.
Notwithstanding
section
12C.7,
subsection
2
,
interest
or
earnings
on
moneys
in
the
senior
living
revolving
loan
program
fund
shall
be
credited
to
the
fund.
Notwithstanding
section
8.33
,
moneys
that
remain
unencumbered
or
unobligated
at
the
end
of
the
fiscal
year
shall
not
revert
but
shall
remain
available
for
the
same
purpose
in
the
succeeding
fiscal
year.
3.
The
authority
shall
annually
allocate
moneys
available
in
the
senior
living
revolving
loan
program
fund
for
the
development
of
affordable
assisted
living
and
service-enriched
Senate
File
2328,
p.
27
affordable
housing
for
seniors
and
persons
with
disabilities.
The
authority
shall
develop
a
joint
application
process
for
the
allocation
of
federal
low-income
housing
tax
credits
and
funds
available
under
this
section
.
Moneys
allocated
to
such
developments
may
be
in
the
form
of
loans,
grants,
or
a
combination
of
loans
and
grants.
Sec.
42.
NEW
SECTION
.
16.47
Home
and
community-based
services
revolving
loan
program
fund.
1.
A
home
and
community-based
services
revolving
loan
program
fund
is
created
within
the
authority
to
further
the
goals
specified
in
section
231.3
,
adult
day
services,
respite
services,
congregate
meals,
health
and
wellness,
health
screening,
and
nutritional
assessments.
The
moneys
in
the
home
and
community-based
services
revolving
loan
program
fund
shall
be
used
by
the
authority
for
the
development
and
operation
of
a
revolving
loan
program
to
develop
and
expand
facilities
and
infrastructure
that
provide
adult
day
services,
respite
services,
congregate
meals,
and
programming
space
for
health
and
wellness,
health
screening,
and
nutritional
assessments
that
address
the
needs
of
persons
with
low
incomes.
2.
Moneys
transferred
by
the
authority
for
deposit
in
the
home
and
community-based
services
revolving
loan
program
fund,
moneys
appropriated
to
the
home
and
community-based
services
revolving
loan
program,
and
any
other
moneys
available
to
and
obtained
or
accepted
by
the
authority
for
placement
in
the
home
and
community-based
services
revolving
loan
program
fund
shall
be
deposited
in
the
fund.
Additionally,
payment
of
interest,
recaptures
of
awards,
and
other
repayments
to
the
home
and
community-based
services
revolving
loan
program
fund
shall
be
deposited
in
the
fund.
Notwithstanding
section
12C.7,
subsection
2
,
interest
or
earnings
on
moneys
in
the
home
and
community-based
services
revolving
loan
program
fund
shall
be
credited
to
the
fund.
Notwithstanding
section
8.33
,
moneys
that
remain
unencumbered
or
unobligated
at
the
end
of
the
fiscal
year
shall
not
revert
but
shall
remain
available
for
the
same
purpose
in
the
succeeding
fiscal
year.
3.
The
authority,
in
cooperation
with
the
department
on
aging,
shall
annually
allocate
moneys
available
in
the
home
and
community-based
services
revolving
loan
program
fund
to
develop
and
expand
facilities
and
infrastructure
that
provide
adult
day
services,
respite
services,
congregate
meals,
and
programming
space
for
health
and
wellness,
health
screening,
and
nutritional
assessments
that
address
the
needs
of
persons
Senate
File
2328,
p.
28
with
low
incomes.
Sec.
43.
NEW
SECTION
.
16.48
Transitional
housing
revolving
loan
program
fund.
1.
A
transitional
housing
revolving
loan
program
fund
is
created
within
the
authority
to
further
the
availability
of
affordable
housing
for
parents
that
are
reuniting
with
their
children
while
completing
or
participating
in
substance
abuse
treatment.
The
moneys
in
the
fund
are
annually
appropriated
to
the
authority
to
be
used
for
the
development
and
operation
of
a
revolving
loan
program
to
provide
financing
to
construct
affordable
transitional
housing,
including
through
new
construction
or
acquisition
and
rehabilitation
of
existing
housing.
The
housing
provided
shall
be
geographically
located
in
close
proximity
to
licensed
substance
abuse
treatment
programs.
Preference
in
funding
shall
be
given
to
projects
that
reunite
mothers
with
the
mothers’
children.
2.
Moneys
transferred
by
the
authority
for
deposit
in
the
transitional
housing
revolving
loan
program
fund,
moneys
appropriated
to
the
transitional
housing
revolving
loan
program,
and
any
other
moneys
available
to
and
obtained
or
accepted
by
the
authority
for
placement
in
the
fund
shall
be
deposited
in
the
fund.
Additionally,
payment
of
interest,
recaptures
of
awards,
and
other
repayments
to
the
transitional
housing
revolving
loan
program
fund
shall
be
credited
to
the
fund.
Notwithstanding
section
12C.7,
subsection
2
,
interest
or
earnings
on
moneys
in
the
transitional
housing
revolving
loan
program
fund
shall
be
credited
to
the
fund.
Notwithstanding
section
8.33
,
moneys
that
remain
unencumbered
or
unobligated
at
the
close
of
the
fiscal
year
shall
not
revert
but
shall
remain
available
for
the
same
purpose
in
the
succeeding
fiscal
year.
3.
The
authority
shall
annually
allocate
moneys
available
in
the
transitional
housing
revolving
loan
program
fund
for
the
development
of
affordable
transitional
housing
for
parents
that
are
reuniting
with
the
parents’
children
while
completing
or
participating
in
substance
abuse
treatment.
The
authority
shall
develop
a
joint
application
process
for
the
allocation
of
federal
low-income
housing
tax
credits
and
the
funds
available
under
this
section
.
Moneys
allocated
to
such
projects
may
be
in
the
form
of
loans,
grants,
or
a
combination
of
loans
and
grants.
Sec.
44.
NEW
SECTION
.
16.49
Community
housing
and
services
for
persons
with
disabilities
revolving
loan
program
fund.
1.
A
community
housing
and
services
for
persons
with
Senate
File
2328,
p.
29
disabilities
revolving
loan
program
fund
is
created
within
the
authority
to
further
the
availability
of
affordable
housing
and
supportive
services
for
Medicaid
waiver-eligible
individuals
with
behaviors
that
provide
significant
barriers
to
accessing
traditional
rental
and
supportive
services
opportunities.
The
moneys
in
the
fund
are
annually
appropriated
to
the
authority
to
be
used
for
the
development
and
operation
of
a
revolving
loan
program
to
provide
financing
to
construct
affordable
permanent
supportive
housing
or
develop
infrastructure
in
which
to
provide
supportive
services,
including
through
new
construction,
acquisition
and
rehabilitation
of
existing
housing
or
infrastructure,
or
conversion
or
adaptive
reuse.
2.
Moneys
transferred
by
the
authority
for
deposit
in
the
community
housing
and
services
for
persons
with
disabilities
revolving
loan
program
fund,
moneys
appropriated
to
the
community
housing
and
services
for
persons
with
disabilities
revolving
loan
program,
and
any
other
moneys
available
to
and
obtained
or
accepted
by
the
authority
for
placement
in
the
fund
shall
be
credited
to
the
fund.
Additionally,
payment
of
interest,
recaptures
of
awards,
and
other
repayments
to
the
community
housing
and
services
for
persons
with
disabilities
revolving
loan
program
fund
shall
be
credited
to
the
fund.
Notwithstanding
section
12C.7,
subsection
2
,
interest
or
earnings
on
moneys
in
the
fund
shall
be
credited
to
the
fund.
Notwithstanding
section
8.33
,
moneys
credited
to
the
fund
from
any
other
fund
that
remain
unencumbered
or
unobligated
at
the
close
of
the
fiscal
year
shall
not
revert
to
the
other
fund.
3.
a.
The
authority
shall
annually
allocate
moneys
available
in
the
fund
for
the
development
of
permanent
supportive
housing
for
Medicaid
waiver-eligible
individuals.
The
authority
shall
develop
a
joint
application
process
for
the
allocation
of
United
States
housing
and
urban
development
HOME
investment
partnerships
program
funding
and
the
funds
available
under
this
section
.
Moneys
allocated
to
such
projects
may
be
in
the
form
of
loans,
forgivable
loans,
or
a
combination
of
loans
and
forgivable
loans.
b.
The
authority
shall
annually
allocate
moneys
available
in
the
fund
for
the
development
of
infrastructure
in
which
to
provide
supportive
services
for
Medicaid
waiver-eligible
individuals
who
meet
the
psychiatric
medical
institution
for
children
level
of
care.
Moneys
allocated
to
such
projects
may
be
in
the
form
of
loans,
forgivable
loans,
or
a
combination
of
loans
and
forgivable
loans.
Senate
File
2328,
p.
30
4.
a.
A
project
shall
demonstrate
written
approval
of
the
project
by
the
department
of
human
services
to
the
authority
prior
to
application
for
funding
under
this
section
.
b.
In
order
to
be
approved
by
the
department
of
human
services
for
application
for
funding
for
development
of
permanent
supportive
housing
under
this
section,
a
project
shall
include
all
of
the
following
components:
(1)
Provision
of
services
to
any
of
the
following
Medicaid
waiver-eligible
individuals:
(a)
Individuals
who
are
currently
underserved
in
community
placements,
including
individuals
who
are
physically
aggressive
or
have
behaviors
that
are
difficult
to
manage
or
individuals
who
meet
the
psychiatric
medical
institution
for
children
level
of
care.
(b)
Individuals
who
are
currently
residing
in
out-of-state
facilities.
(c)
Individuals
who
are
currently
receiving
care
in
a
licensed
health
care
facility.
(2)
A
plan
to
provide
each
individual
with
crisis
stabilization
services
to
ensure
that
the
individual’s
behavioral
issues
are
appropriately
addressed
by
the
provider.
(3)
Policies
and
procedures
that
prohibit
discharge
of
the
individual
from
the
waiver
services
provided
by
the
project
provider
unless
an
alternative
placement
that
is
acceptable
to
the
client
or
the
client’s
guardian
is
identified.
c.
In
order
to
be
approved
by
the
department
of
human
services
for
application
for
funding
for
development
of
infrastructure
in
which
to
provide
supportive
services
under
this
section
,
a
project
shall
include
all
of
the
following
components:
(1)
Provision
of
services
to
Medicaid
waiver-eligible
individuals
who
meet
the
psychiatric
medical
institution
for
children
level
of
care.
(2)
Policies
and
procedures
that
prohibit
discharge
of
the
individual
from
the
waiver
services
provided
by
the
project
provider
unless
an
alternative
placement
that
is
acceptable
to
the
client
or
the
client’s
guardian
is
identified.
d.
Housing
provided
through
a
project
under
this
section
is
exempt
from
the
requirements
of
chapter
135O
.
Sec.
45.
NEW
SECTION
.
16.50
Workforce
housing
assistance
grant
fund.
1.
A
workforce
housing
assistance
grant
fund
is
created
under
the
control
of
the
authority.
The
fund
shall
consist
of
Senate
File
2328,
p.
31
appropriations
made
to
the
fund.
The
fund
shall
be
separate
from
the
general
fund
of
the
state
and
the
balance
in
the
fund
shall
not
be
considered
part
of
the
balance
of
the
general
fund
of
the
state.
However,
the
fund
shall
be
considered
a
special
account
for
the
purposes
of
section
8.53
,
relating
to
generally
accepted
accounting
principles.
2.
Notwithstanding
section
12C.7,
subsection
2
,
interest
or
earnings
on
moneys
in
the
fund
shall
be
credited
to
the
fund.
3.
a.
Moneys
in
the
fund
in
a
fiscal
year
are
appropriated
to
the
authority
to
be
used
for
grants
for
projects
that
create
workforce
housing
or
for
projects
that
include
adaptive
reuse
of
buildings
for
workforce
housing.
For
purposes
of
this
section
,
“workforce
housing”
means
housing
that
is
affordable
for
a
household
whose
income
does
not
exceed
one
hundred
twenty
percent
of
the
median
income
for
the
area.
b.
Priority
shall
be
given
to
the
following
types
of
projects:
(1)
Projects
that
are
eligible
for
historic
preservation
and
cultural
and
entertainment
district
tax
credits
under
section
404A.1
.
(2)
Projects
for
the
construction
of
new
single-family
dwellings
that
incorporate
one
or
more
energy-efficient
measures.
The
authority
shall
by
rule
identify
the
types
of
energy-efficient
measures
that
will
qualify
a
project
for
priority
under
this
subparagraph.
(3)
Projects
that
utilize
new
markets
tax
credits,
established
under
the
federal
Community
Renewal
Tax
Relief
Act
of
2000,
Pub.
L.
No.
106-554,
114
Stat.
2763A,
and
undertaken
by
a
qualified
community
development
entity,
as
defined
in
the
federal
Act.
(4)
Projects
that
are
located
in
an
area
where
other
state
funding
has
been
used
to
support
the
creation
of
new
jobs.
c.
In
any
fiscal
year,
an
area
shall
not
receive
grants
totaling
more
than
twenty-five
percent
of
the
moneys
expended
from
the
fund
in
that
fiscal
year.
For
purposes
of
this
paragraph,
“area”
means
the
same
area
used
to
determine
the
median
income
under
paragraph
“a”
.
4.
Annually,
on
or
before
January
15
of
each
year,
the
authority
shall
report
to
the
legislative
services
agency
and
the
department
of
management
the
status
of
all
projects
that
received
moneys
from
the
workforce
housing
assistance
grant
fund.
The
report
shall
include
a
description
of
each
project,
the
progress
of
work
completed,
the
total
estimated
cost
of
Senate
File
2328,
p.
32
each
project,
a
list
of
all
revenue
sources
being
used
to
fund
each
project,
the
amount
of
funds
expended,
the
amount
of
funds
obligated,
and
the
date
each
project
was
completed
or
an
estimated
completion
date
of
each
project,
where
applicable.
5.
Payment
of
moneys
from
appropriations
from
the
fund
shall
be
made
in
a
manner
that
does
not
adversely
affect
the
tax
exempt
status
of
any
outstanding
bonds
issued
by
the
treasurer
of
state
pursuant
to
section
12.87
.
Sec.
46.
NEW
SECTION
.
16.56
Jumpstart
housing
assistance
program.
1.
As
used
in
this
section
,
unless
the
context
otherwise
requires:
a.
“Disaster-affected
home”
means
a
primary
residence
that
was
destroyed
or
damaged
due
to
a
natural
disaster
occurring
after
May
24,
2008,
and
before
August
14,
2008.
b.
“Local
government
participant”
means
the
cities
of
Ames,
Cedar
Falls,
Cedar
Rapids,
Council
Bluffs,
Davenport,
Des
Moines,
Dubuque,
Iowa
City,
Waterloo,
and
West
Des
Moines;
a
council
of
governments
whose
territory
includes
at
least
one
county
that
was
declared
a
disaster
area
by
the
president
of
the
United
States
after
May
24,
2008,
and
before
August
14,
2008;
and
any
county
that
is
not
part
of
any
council
of
governments
and
was
declared
a
disaster
area
by
the
president
of
the
United
States
after
May
24,
2008,
and
before
August
14,
2008.
2.
The
authority
shall
establish
and
administer
a
jumpstart
housing
assistance
program.
Under
the
program,
the
authority
shall
provide
grants
to
local
government
participants
for
purposes
of
distributing
the
moneys
to
eligible
residents
for
eligible
purposes
which
relate
to
disaster-affected
homes.
3.
An
eligible
resident
is
a
person
residing
in
a
disaster-affected
home
who
is
the
owner
of
record
of
a
right,
title,
or
interest
in
the
disaster-affected
home
and
who
has
been
approved
by
the
federal
emergency
management
agency
for
housing
assistance.
An
eligible
resident
must
have
a
family
income
equal
to
or
less
than
one
hundred
fifty
percent
of
the
area
median
family
income.
4.
Eligible
purposes
include
forgivable
loans
for
down
payment
assistance,
emergency
housing
repair
or
rehabilitation,
and
interim
mortgage
assistance.
An
eligible
resident
who
receives
a
forgivable
loan
may
also
receive
energy
efficiency
assistance
which
shall
be
added
to
the
principal
of
the
forgivable
loan.
Senate
File
2328,
p.
33
5.
A
local
government
participant
may
retain
a
portion
of
the
grant
moneys
for
administrative
purposes
as
provided
in
a
grant
agreement
between
the
authority
and
the
local
government
participant.
6.
Any
money
paid
to
a
local
government
participant
by
an
eligible
resident
shall
be
remitted
to
the
authority
for
deposit
in
the
housing
assistance
fund
created
in
section
16.40
.
7.
As
determined
by
the
authority,
unused
or
unobligated
moneys
may
be
reclaimed
and
reallocated
by
the
authority
to
other
local
government
participants.
Sec.
47.
NEW
SECTION
.
16.57
Residential
treatment
facilities.
1.
The
authority
may
issue
its
bonds
and
notes
and
loan
the
proceeds
of
the
bonds
or
notes
to
a
nonprofit
corporation
for
the
purpose
of
financing
the
acquisition
or
construction
of
residential
housing
or
treatment
facilities
serving
juveniles
or
persons
with
disabilities.
2.
The
authority
may
enter
into
a
loan
agreement
with
a
nonprofit
corporation
for
the
purpose
of
financing
the
acquisition
or
construction
of
residential
housing
or
treatment
facilities
serving
juveniles
or
persons
with
disabilities
and
shall
provide
for
payment
of
the
loan
and
security
for
the
loan
as
the
authority
deems
advisable.
3.
In
the
resolution
authorizing
the
issuance
of
the
bonds
or
notes
pursuant
to
this
section
,
the
authority
may
provide
that
the
related
principal
and
interest
are
limited
obligations
payable
solely
out
of
the
revenues
derived
from
the
debt
obligation,
collateral,
or
other
security
furnished
by
or
on
behalf
of
the
nonprofit
corporation,
and
the
principal
or
interest
does
not
constitute
an
indebtedness
of
the
authority
or
a
charge
against
the
authority’s
general
credit
or
general
fund.
4.
The
powers
granted
the
authority
under
this
section
are
in
addition
to
the
authority’s
other
powers
under
this
chapter
.
All
other
provisions
of
this
chapter
,
except
section
16.28,
subsection
4
,
apply
to
bonds
or
notes
issued
pursuant
to,
and
powers
granted
to
the
authority
under
this
section
,
except
to
the
extent
the
provisions
are
inconsistent
with
this
section
.
Sec.
48.
NEW
SECTION
.
16.58
Definitions.
As
used
in
this
subchapter
,
unless
the
context
otherwise
requires:
1.
“Agricultural
assets”
means
agricultural
land,
Senate
File
2328,
p.
34
depreciable
agricultural
property,
crops,
or
livestock.
2.
“Agricultural
improvements”
means
any
improvements,
buildings,
structures,
or
fixtures
suitable
for
use
in
farming
which
are
located
on
agricultural
land.
3.
“Agricultural
land”
means
land
suitable
for
use
in
farming.
4.
“Agricultural
producer”
means
a
person
that
engages
or
wishes
to
engage
or
intends
to
engage
in
the
business
of
producing
and
marketing
agricultural
produce
in
this
state.
5.
“Bankhead-Jones
Farm
Tenant
Act”
means
the
Act
cited
as
50
Stat.
522
(1937),
formerly
codified
as
7
U.S.C.
§1000
et
seq.,
repealed
by
Pub.
L.
No.
87-128
(1961).
6.
“Beginning
farmer”
means
an
individual,
partnership,
family
farm
corporation,
or
family
farm
limited
liability
company,
with
a
low
or
moderate
net
worth
that
engages
in
farming
or
wishes
to
engage
in
farming.
7.
“Beginning
farmer
tax
credit
program”
means
all
of
the
following:
a.
The
agricultural
assets
transfer
tax
credit
as
provided
in
section
16.80
.
b.
The
custom
farming
contract
tax
credit
as
provided
in
section
16.81
.
8.
“Family
farm
corporation”
means
the
same
as
defined
in
section
9H.1.
9.
“Family
farm
limited
liability
company”
means
the
same
as
defined
in
section
9H.1.
10.
“Farming”
means
the
cultivation
of
land
for
the
production
of
agricultural
crops,
the
raising
of
poultry,
the
production
of
eggs,
the
production
of
milk,
the
production
of
fruit
or
other
horticultural
crops,
grazing,
the
production
of
livestock,
aquaculture,
hydroponics,
the
production
of
forest
products,
or
other
activities
designated
by
the
authority
by
rules
subject
to
chapter
17A
.
11.
“Low
or
moderate
net
worth”
means
a
net
worth
that
does
not
exceed
the
maximum
allowable
net
worth
established
by
the
authority.
The
authority
shall
establish
the
maximum
allowable
net
worth
in
accordance
with
the
prices
paid
by
farmers
index
as
compiled
by
the
United
States
department
of
agriculture.
12.
“Production
item”
includes
tools,
machinery,
or
equipment
principally
used
to
produce
crops
or
livestock.
13.
“Qualified
beginning
farmer”
means
a
beginning
farmer
who
meets
the
requirements
to
participate
in
a
beginning
farmer
tax
credit
program
as
provided
in
part
5,
subpart
B.
Senate
File
2328,
p.
35
Sec.
49.
NEW
SECTION
.
16.59
Special
financing
——
calculations.
A
low
or
moderate
net
worth
requirement
provided
in
this
subchapter
applies
to
an
individual,
partnership,
family
farm
corporation,
or
family
farm
limited
liability
company.
The
requirement
as
applied
to
each
such
person
is
calculated
as
follows:
1.
For
an
individual,
an
aggregate
net
worth
of
the
individual
and
the
individual’s
spouse
and
minor
children
not
greater
than
the
low
or
moderate
net
worth.
2.
For
a
partnership,
an
aggregate
net
worth
of
all
partners,
including
each
partner’s
net
capital
in
the
partnership,
and
each
partner’s
spouse
and
minor
children
not
greater
than
twice
the
low
or
moderate
net
worth.
However,
the
aggregate
net
worth
of
each
partner
and
that
partner’s
spouse
and
minor
children
shall
not
exceed
the
low
or
moderate
net
worth.
3.
For
a
family
farm
corporation,
an
aggregate
net
worth
of
all
shareholders,
including
the
value
of
each
shareholder’s
share
in
the
family
farm
corporation,
and
each
shareholder’s
spouse
and
minor
children
not
greater
than
twice
the
low
or
moderate
net
worth.
However,
the
aggregate
net
worth
of
each
shareholder
and
that
shareholder’s
spouse
and
minor
children
shall
not
exceed
the
low
or
moderate
net
worth.
4.
For
a
family
farm
limited
liability
company,
an
aggregate
net
worth
of
all
members,
including
each
member’s
ownership
interest
in
the
family
farm
limited
liability
company,
and
each
member’s
spouse
and
minor
children
of
not
greater
than
the
low
or
moderate
net
worth.
However,
the
aggregate
net
worth
of
each
member
and
that
member’s
spouse
and
minor
children
shall
not
exceed
the
low
or
moderate
net
worth.
Sec.
50.
NEW
SECTION
.
16.60
Combination
programs.
Programs
authorized
in
this
subchapter
may
be
combined
with
any
other
programs
authorized
in
this
chapter
or
any
other
public
or
private
programs.
Sec.
51.
NEW
SECTION
.
16.62
Trust
assets.
The
authority
shall
make
application
to
and
receive
from
the
United
States
secretary
of
agriculture,
or
any
other
proper
federal
official,
pursuant
and
subject
to
the
provisions
of
Pub.
L.
No.
81-499,
64
Stat.
152
(1950),
formerly
codified
at
40
U.S.C.
§440
et
seq.
(1976),
all
of
the
trust
assets
held
by
the
United
States
in
trust
for
the
Iowa
rural
rehabilitation
corporation
now
dissolved.
Senate
File
2328,
p.
36
Sec.
52.
NEW
SECTION
.
16.63
Agreements.
The
authority
may
enter
into
agreements
with
the
United
States
secretary
of
agriculture
pursuant
to
Pub.
L.
No.
81-499
§2(f)
(1950)
upon
terms
and
conditions
and
for
periods
of
time
as
mutually
agreeable,
authorizing
the
authority
to
accept,
administer,
expend,
and
use
in
the
state
of
Iowa
all
or
any
part
of
the
trust
assets
or
other
funds
in
the
state
of
Iowa
which
have
been
appropriated
for
use
in
carrying
out
the
purposes
of
the
Bankhead-Jones
Farm
Tenant
Act
and
to
do
any
and
all
things
necessary
to
effectuate
and
carry
out
the
purposes
of
such
agreements.
Sec.
53.
NEW
SECTION
.
16.64
Bonds
and
notes
——
tax
exemption.
1.
An
action
shall
not
be
brought
questioning
the
legality
of
any
bonds
or
notes
or
the
power
of
the
authority
to
issue
any
bonds
or
notes
or
to
the
legality
of
any
proceedings
in
connection
with
the
authorization
or
issuance
of
the
bonds
or
notes
after
determination
by
the
board
of
the
authority
to
proceed
with
the
issuance
of
the
bonds
or
notes
sixty
days
from
the
date
of
publication
of
the
notice.
2.
Bonds
and
notes
issued
by
the
authority
for
purposes
of
financing
the
beginning
farmer
loan
program
provided
in
section
16.75
are
exempt
from
taxation
by
the
state,
and
interest
earned
on
the
bonds
and
notes
is
deductible
in
determining
net
income
for
purposes
of
the
state
individual
and
corporate
income
tax
under
divisions
II
and
III
of
chapter
422.
Sec.
54.
NEW
SECTION
.
16.70
Loans
to
lending
institutions.
1.
The
authority
may
make
and
contract
to
make
loans
to
lending
institutions
on
terms
and
conditions
the
authority
determines
are
reasonably
related
to
protecting
the
security
of
the
authority’s
investment
and
to
implementing
the
purposes
of
this
subchapter
.
Lending
institutions
are
authorized
to
borrow
from
the
authority
in
accordance
with
the
provisions
of
this
section
and
the
rules
of
the
authority.
2.
The
authority
shall
require
as
a
condition
of
each
loan
to
a
lending
institution
that
the
lending
institution,
within
a
reasonable
period
after
receipt
of
the
loan
proceeds
as
the
authority
prescribes
by
rule,
shall
have
entered
into
written
commitments
to
make
and,
within
a
reasonable
period
thereafter
as
the
authority
prescribes
by
rule,
shall
have
disbursed
the
loan
proceeds
in
new
mortgage
or
secured
loans
to
beginning
farmers
in
an
aggregate
principal
amount
of
not
less
than
the
amount
of
the
loan.
New
mortgage
or
secured
loans
shall
have
Senate
File
2328,
p.
37
terms
and
conditions
as
the
authority
prescribes
by
rules
which
are
reasonably
related
to
implementing
the
purposes
of
this
subchapter
as
provided
in
subchapter
III.
3.
The
authority
shall
require
the
submission
by
each
lending
institution
to
which
the
authority
has
made
a
loan,
of
evidence
satisfactory
to
the
authority
of
the
making
of
new
mortgage
or
secured
loans
to
beginning
farmers
as
required
by
this
section
,
and
in
that
connection
may,
through
its
members,
employees,
or
agents,
inspect
the
books
and
records
of
a
lending
institution.
4.
Compliance
by
a
lending
institution
with
the
terms
of
its
agreement
with
the
authority
with
respect
to
the
making
of
new
mortgage
or
secured
loans
to
beginning
farmers
may
be
enforced
by
decree
of
any
district
court
of
this
state.
The
authority
may
require
as
a
condition
of
a
loan
to
a
national
banking
association
or
a
federally
chartered
savings
and
loan
association,
the
consent
of
the
association
to
the
jurisdiction
of
the
courts
of
this
state
over
any
enforcement
proceeding.
The
authority
may
also
require,
as
a
condition
of
a
loan
to
a
lending
institution,
agreement
by
the
lending
institution
to
the
payment
of
penalties
to
the
authority
for
violation
by
the
lending
institution
of
its
agreement
with
the
authority,
and
the
penalties
shall
be
recoverable
at
the
suit
of
the
authority.
5.
The
authority
shall
require
that
each
lending
institution
receiving
a
loan
pursuant
to
this
section
shall
issue
and
deliver
to
the
authority
evidence
of
its
indebtedness
to
the
authority
which
shall
constitute
a
general
obligation
of
the
lending
institution
and
shall
bear
a
date,
mature
at
a
time,
be
subject
to
prepayment,
and
contain
other
provisions
consistent
with
this
section
and
reasonably
related
to
protecting
the
security
of
the
authority’s
investment,
as
the
authority
determines.
6.
Notwithstanding
any
other
provision
of
this
section
,
the
interest
rate
and
other
terms
of
loans
to
lending
institutions
made
from
the
proceeds
of
an
issue
of
bonds
or
notes
of
the
authority
shall
be
at
least
sufficient
to
assure
the
payment
of
the
bonds
or
notes
and
the
interest
on
them
as
they
become
due.
7.
The
authority
may
require
that
loans
to
lending
institutions
are
additionally
secured
as
to
payment
of
both
principal
and
interest
by
a
pledge
of
and
lien
upon
collateral
security
by
special
escrow
funds
or
other
forms
of
guaranty
and
in
amounts
and
forms
as
the
authority
by
resolution
determines
Senate
File
2328,
p.
38
to
be
necessary
to
assure
the
payment
of
the
loans
and
the
interest
as
they
become
due.
Collateral
security
shall
consist
of
direct
obligations
of
or
obligations
guaranteed
by
the
United
States
or
one
of
its
agencies,
obligations
satisfactory
to
the
authority
which
are
issued
by
other
federal
agencies,
direct
obligations
of
or
obligations
guaranteed
by
a
state
or
a
political
subdivision
of
a
state,
or
investment
quality
obligations
approved
by
the
authority.
8.
The
authority
may
require
that
collateral
for
loans
be
deposited
with
a
bank,
trust
company,
or
other
financial
institution
acceptable
to
the
authority
located
in
this
state
and
designated
by
the
authority
as
custodian.
In
the
absence
of
that
requirement,
each
lending
institution
shall
enter
into
an
agreement
with
the
authority
containing
provisions
the
authority
deems
necessary
to
adequately
identify
and
maintain
the
collateral,
service
the
collateral
and
require
the
lending
institution
to
hold
the
collateral
as
an
agent
for
the
authority,
and
be
accountable
to
the
authority
as
the
trustee
of
an
express
trust
for
the
application
and
disposition
of
the
collateral
and
the
income
from
it.
The
authority
may
also
establish
additional
requirements
the
authority
deems
necessary
with
respect
to
the
pledging,
assigning,
setting
aside,
or
holding
of
collateral
and
the
making
of
substitutions
for
it
or
additions
to
it
and
the
disposition
of
income
and
receipts
from
it.
9.
The
authority
may
require
as
a
condition
of
loans
to
lending
institutions
any
representations
and
warranties
the
authority
determines
are
necessary
to
secure
the
loans
and
carry
out
the
purposes
of
this
section
.
10.
The
authority
may
require
the
beginning
farmer
to
satisfy
conditions
and
requirements
normally
imposed
by
lending
institutions
in
making
similar
loans,
including
but
not
limited
to
the
purchase
of
capital
stock
in
the
federal
land
bank.
11.
If
a
provision
of
this
section
is
inconsistent
with
a
provision
of
law
of
this
state
governing
lending
institutions,
the
provision
of
this
section
controls
for
the
purposes
of
this
section
.
Sec.
55.
NEW
SECTION
.
16.71
Purchase
of
loans.
1.
The
authority
may
purchase
and
make
advance
commitments
to
purchase
mortgage
or
secured
loans
from
lending
institutions
at
prices
and
upon
terms
and
conditions
as
the
authority
determines.
However,
the
total
purchase
price
for
all
mortgage
or
secured
loans
which
the
authority
commits
to
purchase
from
a
Senate
File
2328,
p.
39
lending
institution
at
any
one
time
shall
not
exceed
the
total
of
the
unpaid
principal
balances
of
the
mortgage
or
secured
loans
purchased.
Lending
institutions
are
authorized
to
sell
mortgage
or
secured
loans
to
the
authority
in
accordance
with
the
provisions
of
this
section
and
the
rules
of
the
authority.
2.
The
authority
shall
require
as
a
condition
of
purchase
of
mortgage
or
secured
loans
from
lending
institutions
that
the
lending
institutions
certify
that
the
mortgage
or
secured
loans
purchased
are
loans
made
to
beginning
farmers.
Mortgage
or
secured
loans
to
be
made
by
lending
institutions
shall
have
terms
and
conditions
as
the
authority
prescribes
by
rule.
The
authority
may
make
a
commitment
to
purchase
mortgage
or
secured
loans
from
lending
institutions
in
advance
of
the
time
the
loans
are
made
by
lending
institutions.
The
authority
shall
require
as
a
condition
of
a
commitment
that
lending
institutions
certify
in
writing
that
all
mortgage
or
secured
loans
represented
by
the
commitment
will
be
made
to
beginning
farmers
and
that
the
lending
institution
will
comply
with
other
authority
specifications.
3.
The
authority
shall
require
the
submission
to
it
by
each
lending
institution
from
which
the
authority
has
purchased
loans
of
evidence
satisfactory
to
the
authority
of
the
making
of
mortgage
or
secured
loans
to
beginning
farmers
as
required
by
this
section
and
in
that
connection
may,
through
its
members,
employees,
or
agents,
inspect
the
books
and
records
of
a
lending
institution.
4.
Compliance
by
a
lending
institution
with
the
terms
of
its
agreement
with
the
authority
with
respect
to
the
making
of
mortgage
or
secured
loans
to
beginning
farmers
may
be
enforced
by
decree
of
any
district
court
of
this
state.
The
authority
may
require
as
a
condition
of
purchase
of
mortgage
or
secured
loans
from
any
national
banking
association
or
federally
chartered
savings
and
loan
association
the
consent
of
the
association
to
the
jurisdiction
of
the
courts
of
this
state
over
any
enforcement
proceeding.
The
authority
may
also
require
as
a
condition
of
the
purchase
of
mortgage
or
secured
loans
from
a
lending
institution
agreement
by
the
lending
institution
to
the
payment
of
penalties
to
the
authority
for
violation
by
the
lending
institution
of
its
agreement
with
the
authority
and
the
penalties
shall
be
recoverable
at
the
suit
of
the
authority.
5.
The
authority
may
require
as
a
condition
of
purchase
of
a
mortgage
or
secured
loan
from
a
lending
institution
that
the
Senate
File
2328,
p.
40
lending
institution
make
representations
and
warranties
the
authority
requires.
A
lending
institution
is
liable
to
the
authority
for
damages
suffered
by
the
authority
by
reason
of
the
untruth
of
a
representation
or
the
breach
of
a
warranty
and,
in
the
event
that
a
representation
proves
to
be
untrue
when
made
or
in
the
event
of
a
breach
of
warranty,
the
lending
institution
shall,
at
the
option
of
the
authority,
repurchase
the
mortgage
or
secured
loan
for
the
original
purchase
price
adjusted
for
amounts
subsequently
paid
on
it,
as
the
authority
determines.
6.
The
authority
shall
require
the
recording
of
an
assignment
of
a
mortgage
loan
purchased
by
the
authority
from
a
lending
institution
and
is
not
required
to
notify
the
mortgagor
of
the
authority’s
purchase
of
the
mortgage
loan.
The
authority
is
not
required
to
inspect
or
take
possession
of
the
mortgage
documents
if
the
lending
institution
from
which
the
mortgage
loan
is
purchased
enters
into
a
contract
to
service
the
mortgage
loan
and
account
to
the
authority
for
it.
7.
If
a
provision
of
this
section
is
inconsistent
with
another
provision
of
law
of
this
state
governing
lending
institutions,
the
provision
of
this
section
controls
for
the
purposes
of
this
section
.
Sec.
56.
NEW
SECTION
.
16.75
Beginning
farmer
loan
program.
1.
The
authority
shall
develop
a
beginning
farmer
loan
program
to
facilitate
the
acquisition
of
agricultural
land
and
improvements
and
depreciable
agricultural
property
by
beginning
farmers.
The
authority
shall
exercise
the
powers
granted
to
the
authority
in
this
chapter
in
order
to
fulfill
the
goal
of
providing
financial
assistance
to
beginning
farmers
in
the
acquisition
of
agricultural
land
and
agricultural
improvements
and
depreciable
agricultural
property.
The
authority
may
participate
in
and
cooperate
with
programs
of
the
United
States
department
of
agriculture
consolidated
farm
service
agency,
federal
land
bank,
or
any
other
agency
or
instrumentality
of
the
federal
government
or
with
any
program
of
any
other
state
agency
in
the
administration
of
the
beginning
farmer
loan
program
and
in
the
making
of
loans
or
purchasing
of
mortgage
or
secured
loans
pursuant
to
this
subchapter
.
2.
The
authority
may
participate
in
any
federal
programs
designed
to
assist
beginning
farmers
or
in
any
related
federal
or
state
programs.
3.
The
authority
shall
provide
in
a
beginning
farmer
loan
program
that
a
loan
to
or
on
behalf
of
a
beginning
farmer
shall
Senate
File
2328,
p.
41
be
provided
only
if
the
following
criteria
are
satisfied:
a.
The
beginning
farmer
is
a
resident
of
the
state.
b.
The
agricultural
land
and
agricultural
improvements
or
depreciable
agricultural
property
the
beginning
farmer
proposes
to
purchase
will
be
located
in
the
state.
c.
The
beginning
farmer
has
sufficient
education,
training,
or
experience
in
the
type
of
farming
for
which
the
beginning
farmer
requests
the
loan.
d.
If
the
loan
is
for
the
acquisition
of
agricultural
land,
the
beginning
farmer
has
or
will
have
access
to
adequate
working
capital,
farm
equipment,
machinery,
or
livestock.
If
the
loan
is
for
the
acquisition
of
depreciable
agricultural
property,
the
beginning
farmer
has
or
will
have
access
to
adequate
working
capital
or
agricultural
land.
e.
The
beginning
farmer
shall
materially
and
substantially
participate
in
farming.
f.
The
agricultural
land
and
agricultural
improvements
shall
only
be
used
for
farming
by
the
beginning
farmer,
the
beginning
farmer’s
spouse,
or
the
beginning
farmer’s
minor
children.
g.
Other
criteria
as
the
authority
prescribes
by
rule.
4.
The
authority
may
provide
in
a
loan
made
or
purchased
pursuant
to
this
subchapter
that
the
loan
shall
not
be
assumed
or
that
any
interest
in
the
agricultural
land
or
improvements
or
depreciable
agricultural
property
may
not
be
leased,
sold,
or
otherwise
conveyed
without
the
authority’s
prior
written
consent,
and
may
provide
a
due-on-sale
clause
with
respect
to
the
occurrence
of
any
of
the
foregoing
events
without
the
authority’s
prior
written
consent.
The
authority
may
provide
by
rule
the
grounds
for
permitted
assumptions
of
a
mortgage
or
for
the
leasing,
sale,
or
other
conveyance
of
any
interest
in
the
agricultural
land
or
improvements.
However,
the
authority
shall
provide
and
state
in
a
loan
that
the
authority
has
the
power
to
raise
the
interest
rate
of
the
loan
to
the
prevailing
market
rate
if
the
loan
is
assumed
by
a
farmer
who
is
already
established
in
that
field
at
the
time
of
the
assumption
of
the
loan.
This
provision
controls
with
respect
to
a
loan
made
or
purchased
pursuant
to
this
subchapter
notwithstanding
the
provisions
of
chapter
535
.
5.
The
authority
may
participate
in
any
interest
in
any
loan
made
or
purchased
pursuant
to
this
subchapter
with
a
lending
institution.
The
participation
interest
may
be
on
a
parity
with
the
interest
in
the
loan
retained
by
the
authority,
equally
and
ratably
secured
by
a
mortgage
or
security
agreement
Senate
File
2328,
p.
42
securing
the
loan.
Sec.
57.
NEW
SECTION
.
16.76
Loans
to
beginning
farmers.
1.
As
used
in
this
section,
“loan”
includes
financing
pursuant
to
an
installment
contract
or
contract
for
purchase
arrangement.
2.
The
authority
may
make
loans,
including
but
not
limited
to
mortgage
or
secured
loans,
or
loans
insured,
guaranteed,
or
otherwise
secured
by
the
federal
government
or
a
federal
governmental
agency
or
instrumentality,
or
a
state
agency
or
private
mortgage
insurers,
to
beginning
farmers
to
provide
financing
for
agricultural
land
and
agricultural
improvements
or
depreciable
agricultural
property.
3.
A
loan
shall
contain
terms
and
provisions,
including
interest
rates,
and
be
in
a
form
established
by
rules
of
the
authority.
The
authority
may
require
a
beginning
farmer
to
execute
a
note,
loan,
or
financing
agreement,
or
other
evidence
of
indebtedness
and
to
furnish
additional
assurances
and
guaranties,
including
insurance,
reasonably
related
to
protecting
the
security
of
the
loan,
as
the
authority
deems
necessary.
Sec.
58.
NEW
SECTION
.
16.78
Administration
of
beginning
farmer
tax
credit
program.
1.
To
every
extent
practicable,
the
authority
shall
administer
tax
credits
under
the
beginning
farmer
tax
credit
program
in
a
uniform
manner
that
encourages
participation
by
qualified
beginning
farmers.
The
authority
shall
determine
a
qualified
beginning
farmer’s
low
or
moderate
net
worth
by
using
a
single
method
applicable
to
all
its
programs,
including
the
beginning
farmer
tax
credit
program.
2.
The
authority
shall
establish
a
due
date
to
receive
applications
to
participate
in
the
beginning
farmer
tax
credit
program.
The
authority
may
establish
different
due
dates
for
applications
to
qualify
for
each
beginning
farmer
tax
credit.
3.
The
department
of
revenue
shall
cooperate
with
the
authority
in
administering
the
beginning
farmer
tax
credit
program.
Sec.
59.
NEW
SECTION
.
16.79
Criteria
for
beginning
farmers
qualifying
to
participate
in
the
beginning
farmer
tax
credit
program.
A
beginning
farmer
qualifies
to
participate
in
the
beginning
farmer
tax
credit
program
as
provided
in
this
subchapter
by
meeting
all
of
the
following
criteria:
1.
Is
a
resident
of
the
state.
If
the
beginning
farmer
is
a
Senate
File
2328,
p.
43
partnership,
all
partners
must
be
residents
of
the
state.
If
a
beginning
farmer
is
a
family
farm
corporation,
all
shareholders
must
be
residents
of
the
state.
If
the
beginning
farmer
is
a
family
farm
limited
liability
company,
all
members
must
be
residents
of
the
state.
2.
Has
sufficient
education,
training,
or
experience
in
farming.
If
the
beginning
farmer
is
a
partnership,
each
partner
who
is
not
a
minor
must
have
sufficient
education,
training,
or
experience
in
farming.
If
the
beginning
farmer
is
a
family
farm
corporation,
each
shareholder
who
is
not
a
minor
must
have
sufficient
education,
training,
or
experience
in
farming.
If
the
beginning
farmer
is
a
family
farm
limited
liability
company,
each
member
who
is
not
a
minor
must
have
sufficient
education,
training,
or
experience
in
farming.
3.
Has
access
to
adequate
working
capital
and
production
items.
4.
Will
materially
and
substantially
participate
in
farming.
If
the
beginning
farmer
is
a
partnership,
family
farm
corporation,
or
family
farm
limited
liability
company,
each
partner,
shareholder,
or
member
who
is
not
a
minor
must
materially
and
substantially
participate
in
farming.
5.
Is
not
responsible
for
managing
or
maintaining
agricultural
land
and
other
agricultural
assets
that
are
greater
than
necessary
to
adequately
support
a
beginning
farmer
as
determined
by
the
authority
according
to
rules
which
shall
be
adopted
by
the
authority.
Sec.
60.
NEW
SECTION
.
16.80
Agricultural
assets
transfer
tax
credit
——
agreement.
1.
An
agricultural
assets
transfer
tax
credit
is
allowed
under
this
section
.
The
tax
credit
is
allowed
against
the
taxes
imposed
in
chapter
422,
division
II
,
as
provided
in
section
422.11M
,
and
in
chapter
422,
division
III
,
as
provided
in
section
422.33
,
to
facilitate
the
transfer
of
agricultural
assets
from
a
taxpayer
to
a
qualified
beginning
farmer.
2.
In
order
to
qualify
for
the
tax
credit,
the
taxpayer
must
meet
qualifications
established
by
rules
adopted
by
the
authority.
At
a
minimum,
the
taxpayer
must
comply
with
all
of
the
following:
a.
Be
a
person
who
may
acquire
or
otherwise
obtain
or
lease
agricultural
land
in
this
state
pursuant
to
chapter
9H
or
9I
.
However,
the
taxpayer
must
not
be
a
person
who
may
acquire
or
otherwise
obtain
or
lease
agricultural
land
exclusively
because
of
an
exception
provided
in
one
of
those
chapters
or
in
Senate
File
2328,
p.
44
a
provision
of
another
chapter
of
this
Code
including
but
not
limited
to
chapter
10
,
10D
,
or
501
,
or
section
15E.207
.
b.
Execute
an
agricultural
assets
transfer
agreement
with
a
qualified
beginning
farmer
as
provided
in
this
section
.
3.
An
individual
may
claim
a
tax
credit
under
this
section
of
a
partnership,
limited
liability
company,
S
corporation,
estate,
or
trust
electing
to
have
income
taxed
directly
to
the
individual.
The
amount
claimed
by
the
individual
shall
be
based
upon
the
pro
rata
share
of
the
individual’s
earnings
from
the
partnership,
limited
liability
company,
S
corporation,
estate,
or
trust.
4.
The
tax
credit
is
allowed
only
for
agricultural
assets
that
are
subject
to
an
agricultural
assets
transfer
agreement.
The
agreement
shall
provide
for
the
lease
of
agricultural
land
located
in
this
state,
including
any
improvements,
and
may
provide
for
the
rental
of
agricultural
equipment
as
defined
in
section
322F.1
.
a.
The
agreement
shall
include
a
lease
made
on
a
cash
basis
or
on
a
commodity
share
basis
which
includes
a
share
of
the
crops
or
livestock
produced
on
the
agricultural
land.
The
agreement
shall
be
in
writing.
b.
The
agreement
shall
be
for
at
least
two
years,
but
not
more
than
five
years.
The
agreement
or
that
part
of
the
agreement
providing
for
the
lease
may
be
renewed
by
the
qualified
beginning
farmer
for
a
term
of
at
least
two
years,
but
not
more
than
five
years.
An
agreement
does
not
include
a
lease
or
the
rental
of
equipment
intended
as
a
security.
c.
The
agricultural
transfer
agreement
cannot
be
assigned
and
the
land
subject
to
the
agreement
cannot
be
subleased.
5.
The
tax
credit
shall
be
based
on
the
agricultural
assets
transfer
agreement.
The
agreement
shall
be
based
on
a
cash
basis
or
a
commodity
share
basis
or
both.
a.
For
an
agreement
that
includes
a
lease
on
a
cash
basis,
the
tax
credit
shall
be
computed
as
follows:
(1)
If
the
qualified
beginning
farmer
is
not
a
veteran,
the
taxpayer
may
claim
a
tax
credit
equal
to
seven
percent
of
the
gross
amount
paid
to
the
taxpayer
under
the
agreement
for
each
tax
year
that
the
tax
credit
is
allowed.
(2)
If
the
qualified
beginning
farmer
is
a
veteran,
the
taxpayer
may
claim
eight
percent
of
the
gross
amount
paid
to
the
taxpayer
under
the
agreement
for
the
first
year
that
the
tax
credit
is
allowed
and
seven
percent
of
the
gross
amount
paid
to
the
taxpayer
for
each
subsequent
tax
year
that
the
Senate
File
2328,
p.
45
tax
credit
is
allowed.
However,
the
taxpayer
may
only
claim
seven
percent
of
the
gross
amount
paid
to
the
taxpayer
under
a
renewed
agreement
or
a
new
agreement
executed
by
the
same
parties.
b.
For
an
agreement
that
includes
a
lease
on
a
commodity
share
basis,
the
tax
credit
shall
be
computed
as
follows:
(1)
(a)
If
the
qualified
beginning
farmer
is
not
a
veteran,
the
taxpayer
may
claim
a
tax
credit
equal
to
seventeen
percent
of
the
amount
paid
to
the
taxpayer
from
crops
or
animals
sold
under
the
agreement
in
which
the
payment
is
exclusively
made
from
the
sale
of
crops
or
animals.
(b)
If
the
qualified
beginning
farmer
is
a
veteran,
the
taxpayer
may
claim
a
tax
credit
equal
to
eighteen
percent
of
the
amount
paid
to
the
taxpayer
from
crops
or
animals
sold
under
the
agreement
for
the
first
tax
year
that
the
taxpayer
is
allowed
the
tax
credit
and
seventeen
percent
of
the
amount
paid
to
the
taxpayer
for
each
subsequent
tax
year
that
the
taxpayer
is
allowed
the
tax
credit.
However,
the
taxpayer
may
only
claim
seventeen
percent
of
the
amount
paid
to
the
taxpayer
from
crops
or
animals
sold
for
any
tax
year
under
a
renewed
agreement
or
a
new
agreement
executed
by
the
same
parties.
(2)
Notwithstanding
subparagraph
(1),
the
authority
may
elect
an
alternative
method
to
compute
a
tax
credit
for
a
lease
based
on
a
crop
share
basis.
The
alternative
method
shall
utilize
a
formula
which
uses
data
compiled
by
the
United
States
department
of
agriculture.
The
formula
shall
calculate
the
amount
of
the
tax
credit
by
multiplying
the
average
per
bushel
yield
for
the
same
type
of
grain
as
produced
under
the
lease
in
the
same
county
where
the
leased
land
is
located
by
a
per
bushel
state
price
established
for
such
type
of
grain
harvested
the
previous
fall.
6.
A
tax
credit
in
excess
of
the
taxpayer’s
liability
for
the
tax
year
may
be
credited
to
the
tax
liability
for
the
following
five
years
or
until
depleted,
whichever
is
earlier.
A
tax
credit
shall
not
be
carried
back
to
a
tax
year
prior
to
the
tax
year
in
which
the
taxpayer
redeems
the
tax
credit.
A
tax
credit
shall
not
be
transferable
to
any
other
person
other
than
the
taxpayer’s
estate
or
trust
upon
the
taxpayer’s
death.
7.
A
taxpayer
shall
not
claim
a
tax
credit
under
this
section
unless
a
tax
credit
certificate
issued
by
the
authority
is
included
with
the
taxpayer’s
tax
return
for
the
tax
year
for
which
the
tax
credit
is
claimed.
The
authority
must
review
and
approve
an
application
for
a
tax
credit
as
provided
by
Senate
File
2328,
p.
46
rules
adopted
by
the
authority.
The
application
must
include
a
copy
of
the
agricultural
assets
transfer
agreement.
The
authority
may
approve
an
application
and
issue
a
tax
credit
certificate
to
a
taxpayer
who
has
previously
been
allowed
a
tax
credit
under
this
section
.
The
authority
may
require
that
the
parties
to
an
agricultural
assets
transfer
agreement
provide
additional
information
as
determined
relevant
by
the
authority.
The
authority
shall
review
an
application
for
a
tax
credit
which
includes
the
renewal
of
an
agricultural
assets
transfer
agreement
to
determine
that
the
parties
to
the
renewed
agreement
meet
the
same
qualifications
as
required
for
an
original
application.
The
authority
shall
not
approve
an
application
or
issue
a
tax
credit
certificate
to
a
taxpayer
for
an
amount
in
excess
of
fifty
thousand
dollars.
In
addition,
the
authority
shall
not
approve
an
application
or
issue
a
certificate
to
a
taxpayer
if
any
of
the
following
applies:
a.
The
taxpayer
is
at
fault
for
terminating
a
prior
agricultural
assets
transfer
agreement
as
determined
by
the
authority.
b.
The
taxpayer
is
any
of
the
following:
(1)
A
party
to
a
pending
administrative
or
judicial
action,
including
a
contested
case
proceeding
under
chapter
17A
,
relating
to
an
alleged
violation
involving
an
animal
feeding
operation
as
regulated
by
the
department
of
natural
resources,
regardless
of
whether
the
pending
action
is
brought
by
the
department
or
the
attorney
general.
(2)
Classified
as
a
habitual
violator
for
a
violation
of
state
law
involving
an
animal
feeding
operation
as
regulated
by
the
department
of
natural
resources.
c.
The
agricultural
assets
are
being
leased
or
rented
at
a
rate
which
is
substantially
higher
or
lower
than
the
market
rate
for
similar
agricultural
assets
leased
or
rented
within
the
same
community,
as
determined
by
the
authority.
8.
A
taxpayer
or
the
qualified
beginning
farmer
may
terminate
an
agricultural
assets
transfer
agreement
as
provided
in
the
agreement
or
by
law.
The
taxpayer
must
immediately
notify
the
authority
of
the
termination.
a.
If
the
authority
determines
that
the
taxpayer
is
not
at
fault
for
the
termination,
the
authority
shall
not
issue
a
tax
credit
certificate
to
the
taxpayer
for
a
subsequent
tax
year
based
on
the
approved
application.
Any
prior
tax
credit
is
allowed
as
provided
in
this
section
.
The
taxpayer
may
apply
for
and
be
issued
another
tax
credit
certificate
for
the
Senate
File
2328,
p.
47
same
agricultural
assets
as
provided
in
this
section
for
any
remaining
tax
years
for
which
a
certificate
was
not
issued.
b.
If
the
authority
determines
that
the
taxpayer
is
at
fault
for
the
termination,
any
prior
tax
credit
allowed
under
this
section
is
disallowed.
The
amount
of
the
tax
credit
shall
be
immediately
due
and
payable
to
the
department
of
revenue.
If
a
taxpayer
does
not
immediately
notify
the
authority
of
the
termination,
the
taxpayer
shall
be
conclusively
deemed
at
fault
for
the
termination.
Sec.
61.
NEW
SECTION
.
16.81
Custom
farming
contract
tax
credit.
1.
A
custom
farming
contract
tax
credit
is
allowed
under
this
section
.
The
tax
credit
is
allowed
against
the
taxes
imposed
in
chapter
422,
division
II
,
as
provided
in
section
422.11M
,
and
in
chapter
422,
division
III
,
as
provided
in
section
422.33
,
to
encourage
taxpayers
who
are
considering
custom
farming
agricultural
land
located
in
this
state
to
negotiate
with
qualified
beginning
farmers.
2.
In
order
to
be
eligible
to
claim
a
custom
farming
contract
tax
credit,
the
taxpayer
must
meet
qualifications
established
by
rules
adopted
by
the
authority.
At
a
minimum,
the
taxpayer
must
be
a
person
who
may
acquire
or
otherwise
obtain
or
lease
agricultural
land
in
the
same
manner
as
provided
for
a
taxpayer
claiming
an
agricultural
assets
transfer
tax
credit
under
section
16.80
.
3.
An
individual
may
claim
a
custom
farming
contract
tax
credit
of
a
partnership,
limited
liability
company,
S
corporation,
estate,
or
trust
electing
to
have
income
taxed
directly
to
the
individual.
The
amount
claimed
by
the
individual
shall
be
based
upon
the
pro
rata
share
of
the
individual’s
earnings
from
the
partnership,
limited
liability
company,
S
corporation,
estate,
or
trust.
4.
A
custom
farming
contract
tax
credit
is
allowed
only
for
the
amount
paid
by
the
taxpayer
to
a
qualified
beginning
farmer
under
a
custom
farming
contract
as
provided
in
rules
adopted
by
the
department.
The
contract
must
provide
for
the
production
of
crops
located
on
agricultural
land
or
the
production
of
livestock
principally
located
on
agricultural
land.
The
agricultural
land
must
be
real
estate
and
any
improvements
used
for
farming
in
which
the
taxpayer
holds
a
legal
or
equitable
interest.
5.
The
custom
farming
contract
must
provide
that
the
taxpayer
pay
the
qualified
beginning
farmer
on
a
cash
basis.
Senate
File
2328,
p.
48
The
contract
must
be
in
writing
for
a
term
of
not
more
than
twelve
months.
The
total
cash
payment
must
equal
at
least
one
thousand
dollars.
6.
The
taxpayer
must
make
all
management
decisions
substantially
contributing
to
or
affecting
the
production
of
crops
located
on
the
agricultural
land
or
the
production
of
livestock
principally
located
on
the
agricultural
land.
However,
nothing
in
this
subsection
prohibits
a
qualified
beginning
farmer
from
regularly
or
frequently
taking
part
in
making
day-to-day
operational
decisions
affecting
production.
The
qualified
beginning
farmer
must
provide
for
all
of
the
following:
a.
Production
items
principally
used
to
produce
crops
located
on
the
agricultural
land
or
to
produce
livestock
principally
located
on
the
agricultural
land.
b.
Labor
principally
used
to
produce
crops
located
on
the
agricultural
land
or
to
produce
livestock
principally
located
on
the
agricultural
land.
The
qualified
beginning
farmer
must
personally
provide
such
labor
on
a
regular,
continuous,
and
substantial
basis.
7.
A
custom
farming
contract
tax
credit
is
not
allowed
if
the
taxpayer
and
qualified
beginning
farmer
are
related
as
any
of
the
following:
a.
Persons
who
hold
a
legal
or
equitable
interest
in
the
same
agricultural
land,
including
as
individuals
or
as
general
partners,
limited
partners,
shareholders,
or
members
in
the
same
business
entity
as
defined
in
section
501A.102
.
b.
Family
members
related
as
spouse,
child,
stepchild,
brother,
or
sister.
c.
Partners
in
the
same
partnership
which
holds
agricultural
land,
or
shareholders
in
the
same
family
farm
corporation
or
members
in
the
same
family
farm
limited
liability
company
as
defined
in
section
9H.1
.
8.
A
custom
farming
contract
tax
credit
shall
be
calculated
based
on
the
gross
amount
paid
to
the
qualified
beginning
farmer
under
the
custom
farming
contract.
a.
If
the
qualified
beginning
farmer
is
not
a
veteran,
the
taxpayer
may
claim
a
tax
credit
equal
to
seven
percent
of
the
gross
amount
paid
to
the
qualified
beginning
farmer
under
the
contract
for
each
tax
year
that
the
tax
credit
is
allowed.
b.
If
the
qualified
beginning
farmer
is
a
veteran,
the
taxpayer
may
claim
a
tax
credit
equal
to
eight
percent
of
the
gross
amount
paid
to
the
qualified
beginning
farmer
under
the
Senate
File
2328,
p.
49
contract
for
the
first
year
that
the
tax
credit
is
allowed
and
seven
percent
of
the
gross
amount
paid
to
the
qualified
beginning
farmer
under
the
contract
for
each
subsequent
tax
year
that
the
tax
credit
is
allowed.
However,
the
taxpayer
may
only
claim
seven
percent
of
the
gross
amount
paid
to
the
qualified
beginning
farmer
under
a
renewed
contract
or
a
new
contract
executed
by
the
same
parties.
9.
A
custom
farming
contract
tax
credit
in
excess
of
the
taxpayer’s
liability
for
the
tax
year
may
be
credited
to
the
tax
liability
for
the
following
five
years
or
until
depleted,
whichever
is
earlier.
A
tax
credit
shall
not
be
carried
back
to
a
tax
year
prior
to
the
tax
year
in
which
the
taxpayer
redeems
the
tax
credit.
A
tax
credit
shall
not
be
transferable
to
any
other
person
other
than
the
taxpayer’s
estate
or
trust
upon
the
taxpayer’s
death.
10.
A
taxpayer
shall
not
claim
a
custom
farming
contract
tax
credit
unless
a
tax
credit
certificate
issued
by
the
authority
under
this
section
is
included
with
the
taxpayer’s
tax
return
for
the
tax
year
for
which
the
tax
credit
is
claimed.
The
authority
must
review
and
approve
an
application
for
a
tax
credit
certificate
as
provided
by
rules
adopted
by
the
authority.
The
application
must
include
a
copy
of
the
custom
farming
contract.
The
authority
may
approve
an
application
and
issue
a
tax
credit
certificate
to
a
taxpayer
who
has
previously
been
allowed
a
tax
credit
under
this
section
.
The
authority
may
require
that
the
parties
to
the
contract
provide
additional
information
as
determined
relevant
by
the
authority.
The
authority
shall
review
an
application
for
a
tax
credit
certificate
which
includes
the
renewal
of
a
contract
to
determine
that
the
parties
to
the
renewed
contract
meet
the
same
qualifications
as
required
for
an
original
application.
The
authority
shall
not
approve
an
application
or
issue
a
tax
credit
certificate
to
a
taxpayer
for
an
amount
in
excess
of
fifty
thousand
dollars.
In
addition,
the
authority
shall
not
approve
an
application
or
issue
a
tax
credit
certificate
to
a
taxpayer
if
any
of
the
following
applies:
a.
The
taxpayer
is
at
fault
for
terminating
another
custom
farming
contract,
as
determined
by
the
authority.
b.
The
taxpayer
is
party
to
a
pending
administrative
or
judicial
action,
or
classified
as
a
habitual
violator
in
the
same
manner
as
provided
in
section
16.80
.
c.
The
contract
amount
is
substantially
higher
or
lower
than
the
market
rate
for
a
similar
custom
farming
contract,
as
Senate
File
2328,
p.
50
determined
by
the
authority.
11.
A
taxpayer
or
the
qualified
beginning
farmer
may
terminate
a
custom
farming
contract
as
provided
in
the
contract
or
by
law.
The
taxpayer
must
immediately
notify
the
authority
of
the
termination.
a.
If
the
authority
determines
that
the
taxpayer
is
not
at
fault
for
the
termination,
the
authority
shall
not
issue
a
tax
credit
certificate
to
the
taxpayer
for
a
subsequent
tax
year
based
on
the
approved
application.
Any
prior
tax
credit
is
allowed
as
provided
in
this
section
until
its
expiration.
The
taxpayer
may
apply
for
and
be
issued
another
tax
credit
certificate
for
the
same
agricultural
land
under
a
custom
farming
contract
with
another
qualified
beginning
farmer.
b.
If
the
authority
determines
that
the
taxpayer
is
at
fault
for
the
termination,
any
prior
tax
credit
allowed
under
this
section
is
disallowed,
and
the
amount
of
the
tax
credit
shall
be
immediately
due
and
payable
to
the
department
of
revenue.
If
a
taxpayer
does
not
immediately
notify
the
authority
of
the
termination,
the
taxpayer
shall
be
conclusively
deemed
at
fault
for
the
termination.
Sec.
62.
NEW
SECTION
.
16.82
Tax
credit
certificates
——
availability.
1.
The
amount
of
tax
credits
that
may
be
issued
to
support
the
beginning
farmer
tax
credit
program
shall
not
in
the
aggregate
exceed
twelve
million
dollars
in
any
year.
Of
the
aggregate
amount,
eight
million
dollars
is
allocated
to
support
the
agricultural
assets
transfer
tax
credit
as
provided
in
section
16.80
and
four
million
dollars
is
allocated
to
support
the
custom
farming
contract
tax
credit
as
provided
in
section
16.81.
However,
the
authority’s
board
of
directors
may
at
any
time
during
the
year
adjust
the
allocation
by
adopting
a
resolution.
2.
The
authority
shall
issue
tax
certificates
to
support
a
beginning
farmer
tax
credit
on
a
first-come,
first-served
basis.
Sec.
63.
NEW
SECTION
.
16.83
Additional
loan
program.
1.
The
authority
may
enter
into
a
loan
agreement
with
a
beginning
farmer
to
finance
in
whole
or
in
part
the
acquisition
by
construction
or
purchase
of
agricultural
land,
agricultural
improvements,
or
depreciable
agricultural
property.
The
repayment
obligation
of
the
beginning
farmer
may
be
unsecured,
or
may
be
secured
by
a
mortgage
or
security
agreement
or
by
other
security
as
the
authority
deems
advisable,
and
may
Senate
File
2328,
p.
51
be
evidenced
by
one
or
more
notes
of
the
beginning
farmer.
The
loan
agreement
may
contain
terms
and
conditions
as
the
authority
deems
advisable.
2.
The
authority
may
issue
its
bonds
and
notes
for
the
purposes
set
forth
in
subsection
1
and
may
enter
into
a
lending
agreement
or
purchase
agreement
with
one
or
more
bondholders
or
noteholders
containing
the
terms
and
conditions
of
the
repayment
of
and
the
security
for
the
bonds
or
notes.
Bonds
and
notes
must
be
authorized
by
a
resolution
of
the
authority.
The
authority
and
the
bondholders
or
noteholders
may
enter
into
an
agreement
to
provide
for
any
of
the
following:
a.
That
the
proceeds
of
the
bonds
and
notes,
and
the
investments
on
the
proceeds,
may
be
received,
held,
and
disbursed
by
the
bondholders
or
noteholders,
or
by
a
trustee
or
agent
designated
by
the
authority.
b.
That
the
bondholders
or
noteholders
or
a
trustee
or
agent
designated
by
the
authority
may
collect,
invest,
and
apply
the
amounts
payable
under
the
loan
agreement
or
any
other
security
instrument
securing
the
debt
obligation
of
the
beginning
farmer.
c.
That
the
bondholders
or
noteholders
may
enforce
the
remedies
provided
in
the
loan
agreement
or
security
instrument
on
their
own
behalf
without
the
appointment
or
designation
of
a
trustee
and
if
there
is
a
default
in
the
principal
of
or
interest
on
the
bonds
or
notes
or
in
the
performance
of
any
agreement
contained
therein,
the
payment
or
performance
may
be
enforced
in
accordance
with
the
provisions
contained
therein.
d.
That
if
there
is
a
default
in
the
payment
of
the
principal
or
interest
on
a
mortgage
or
security
instrument
or
a
violation
of
an
agreement
contained
in
the
mortgage
or
security
instrument,
the
mortgage
or
security
instrument
may
be
foreclosed
or
enforced
and
any
collateral
sold
under
proceedings
or
actions
permitted
by
law
and
a
trustee
under
the
mortgage
or
security
agreement
or
the
holder
of
any
bonds
or
notes
secured
thereby
may
become
a
purchaser
if
the
trustee
or
holder
is
the
highest
bidder.
e.
Other
terms
and
conditions.
3.
The
authority
may
provide
in
the
resolution
authorizing
the
issuance
of
the
bonds
or
notes
that
the
principal
and
interest
shall
be
limited
obligations
payable
solely
out
of
the
revenues
derived
from
the
debt
obligation,
collateral,
or
other
security
furnished
by
or
on
behalf
of
the
beginning
farmer,
and
that
the
principal
and
interest
does
not
constitute
an
Senate
File
2328,
p.
52
indebtedness
of
the
authority
or
a
charge
against
its
general
credit
or
general
fund.
4.
The
powers
granted
the
authority
under
this
section
are
in
addition
to
other
powers
granted
to
the
authority
to
administer
this
subchapter
as
provided
in
this
chapter
.
All
other
provisions
of
this
chapter
,
except
section
16.28,
subsection
4
,
apply
to
bonds
or
notes
issued
pursuant
to
and
powers
granted
to
the
authority
under
this
section
except
to
the
extent
that
they
are
inconsistent
with
this
section
.
Sec.
64.
NEW
SECTION
.
16.84
Financial
assistance
for
agricultural
producers.
1.
In
addition
to
the
other
programs
authorized
pursuant
to
this
subchapter
,
the
authority
is
authorized
to
provide
any
type
of
economic
assistance
directly
or
indirectly
to
agricultural
producers,
and
may
develop
and
implement
programs
including
but
not
limited
to
the
making
of
loan
guaranties,
interest
buy-downs,
grants,
secured
or
unsecured
direct
loans,
secondary
market
purchases
of
loans
or
mortgages,
loans
to
lending
institutions
or
other
agricultural
lenders
as
designated
by
rule
of
the
authority,
or
entities
that
provide
funds
or
credits
to
such
lenders
or
institutions,
to
assist
agricultural
producers
within
the
state.
The
authority
may
exercise
any
of
the
powers
granted
to
the
authority
in
this
chapter
in
order
to
fulfill
the
goal
of
providing
financial
assistance
to
agricultural
producers.
The
authority
may
participate
in
and
cooperate
with
programs
of
any
agency
or
instrumentality
of
the
federal
government
or
with
programs
of
any
other
state
agency
in
the
administration
of
the
programs
to
provide
economic
assistance
to
agricultural
producers.
2.
The
authority
shall
provide
in
any
program
developed
and
implemented
pursuant
to
this
section
that
assistance
shall
be
provided
only
if
the
following
criteria
are
satisfied:
a.
The
agricultural
producer
is
a
resident
of
the
state.
b.
The
agricultural
producer’s
land
and
farm
operations
are
located
within
the
state.
c.
Based
upon
the
agricultural
producer’s
net
worth,
cash
flow,
debt-to-asset
ratio,
and
other
criteria
as
prescribed
by
rule
of
the
authority,
the
authority
determines
that
without
such
assistance
the
agricultural
producer
could
not
reasonably
be
expected
to
be
able
to
obtain,
retain,
restructure,
or
service
loans
or
other
financing
for
operating
expenses,
cash
flow
requirements,
or
capital
acquisition
and
maintenance
upon
a
reasonable
and
affordable
basis.
Senate
File
2328,
p.
53
d.
Other
criteria
as
the
authority
prescribes
by
rule.
3.
The
authority
is
granted
all
powers
which
are
necessary
or
useful
to
develop
and
implement
programs
and
authorizations
pursuant
to
subsection
1
.
These
powers
include
but
are
not
limited
to:
a.
All
general
and
specific
powers
stated
in
subchapter
IV
and
this
subchapter.
b.
The
power
to
make
or
enter
into
or
to
require
the
making
or
entry
into
of
agreements
of
any
type,
with
or
by
any
person,
that
are
necessary
to
effect
the
purposes
of
this
section
.
These
agreements
may
include
but
are
not
limited
to
contracts,
notes,
bonds,
guaranties,
mortgages,
loan
agreements,
trust
indentures,
reimbursement
agreements,
letters
of
credit
or
other
liquidity
or
credit
enhancement
agreements,
reserve
agreements,
loan
or
mortgage
purchase
agreements,
buy-down
agreements,
grants,
collateral
or
security
agreements,
insurance
contracts,
or
other
similar
documents.
The
agreements
may
contain
any
terms
and
conditions
which
the
authority
determines
are
reasonably
necessary
or
useful
to
implement
the
purposes
of
this
section
or
which
are
usually
included
in
agreements
or
documents
between
private
or
public
persons
in
similar
transactions.
c.
The
power
to
require
submission
of
evidence
satisfactory
to
the
authority
of
the
receipt
by
an
agricultural
producer
of
the
assistance
intended
under
a
program
developed
and
implemented
pursuant
to
this
section
.
In
that
connection,
the
authority,
through
its
members,
employees,
or
agents,
may
inspect
the
books
and
records
of
any
person
receiving
or
involved
in
the
provision
of
assistance
in
accordance
with
this
section
.
d.
The
power
to
establish
by
rule
appropriate
enforcement
provisions
in
order
to
assure
compliance
with
this
section
and
rules
adopted
pursuant
to
this
section
,
to
seek
the
enforcement
of
such
rules
and
the
terms
of
any
agreement
or
document
by
decree
of
any
court
of
competent
jurisdiction,
and
to
require
as
a
condition
of
providing
assistance
pursuant
to
this
section
the
consent
of
any
person
receiving
or
involved
in
the
provision
of
the
assistance
to
the
jurisdiction
of
the
courts
of
this
state
over
any
enforcement
proceeding.
e.
The
power
to
require,
as
a
condition
of
the
provision
of
assistance
pursuant
to
this
section
,
any
representations
and
warranties
on
the
part
of
any
person
receiving
or
involved
in
providing
such
assistance
that
the
authority
Senate
File
2328,
p.
54
determines
are
reasonably
necessary
or
useful
to
carry
out
the
purposes
of
this
section
.
A
person
receiving
or
involved
in
providing
assistance
pursuant
to
this
section
is
liable
to
the
authority
for
damages
suffered
by
the
authority
by
reason
of
a
misrepresentation
or
the
breach
of
a
warranty.
4.
All
persons,
public
and
private,
are
authorized
to
cooperate
with
the
authority
and
to
participate
in
the
programs
developed
and
implemented
pursuant
to
this
section
and
in
accordance
with
the
rules
of
the
authority.
5.
The
powers
granted
the
authority
under
this
section
are
in
addition
to
other
powers
contained
in
this
chapter
.
All
other
provisions
of
this
chapter
,
except
section
16.28,
subsection
4
,
apply
to
bonds
or
notes
issued
pursuant
to
powers
granted
to
the
authority
under
this
section
,
to
reserve
funds,
to
appropriations,
and
to
the
remedies
of
bondholders
and
noteholders
except
to
the
extent
that
they
are
inconsistent
with
this
section
.
Sec.
65.
NEW
SECTION
.
16.90
Definition.
As
used
in
this
subchapter,
unless
the
context
otherwise
requires,
“title
guaranty”
means
a
guaranty
against
loss
or
damage
caused
by
a
defective
title
to
real
property.
Sec.
66.
Section
16.91,
subsection
1,
Code
2014,
is
amended
to
read
as
follows:
1.
The
authority
through
the
Iowa
title
guaranty
division
shall
initiate
and
operate
a
program
in
which
the
division
shall
offer
guaranties
of
real
property
titles
in
this
state.
The
terms,
conditions
and
form
of
the
guaranty
contract
shall
be
forms
approved
by
the
division
board.
The
division
shall
fix
a
charge
for
the
guaranty
in
an
amount
sufficient
to
permit
the
program
to
operate
on
a
self-sustaining
basis,
including
payment
of
administrative
costs
and
the
maintenance
of
an
adequate
reserve
against
claims
under
the
title
guaranty
program.
A
title
guaranty
fund
is
created
in
the
office
of
the
treasurer
of
state.
Funds
collected
under
this
program
shall
be
placed
in
the
title
guaranty
fund
and
are
available
to
pay
all
claims,
necessary
reserves
and
all
administrative
costs
of
the
title
guaranty
program.
Moneys
in
the
fund
shall
not
revert
to
the
general
fund
and
interest
on
the
moneys
in
the
fund
shall
be
deposited
in
the
housing
trust
fund
established
in
section
16.181
and
shall
not
accrue
to
the
general
fund.
If
the
authority
board
in
consultation
with
the
division
board
determines
that
there
are
surplus
funds
in
the
title
guaranty
fund
after
providing
for
adequate
reserves
and
Senate
File
2328,
p.
55
operating
expenses
of
the
division,
the
surplus
funds
shall
be
transferred
to
the
housing
assistance
fund
created
pursuant
to
section
16.40
.
Sec.
67.
Section
16.92,
subsection
1,
paragraph
c,
Code
2014,
is
amended
to
read
as
follows:
c.
“Division”
means
the
Iowa
title
guaranty
division
in
the
Iowa
finance
authority,
the
director
of
the
division,
or
a
designee
of
the
director.
Sec.
68.
Section
16.93,
subsection
1,
unnumbered
paragraph
1,
Code
2014,
is
amended
to
read
as
follows:
The
authority
through
the
Iowa
title
guaranty
division
may
issue
a
closing
protection
letter
to
a
person
to
whom
a
proposed
title
guaranty
is
to
be
issued,
upon
the
request
of
the
person,
if
the
division
issues
a
commitment
for
title
guaranty
or
title
guaranty
certificate.
The
closing
protection
letter
shall
conform
to
the
terms
of
coverage
and
form
of
the
instrument
as
approved
by
the
division
board
and
may
indemnify
a
person
to
whom
a
proposed
title
guaranty
is
to
be
issued
against
loss
of
settlement
funds
due
to
only
the
following
acts
of
the
division’s
named
participating
attorney,
participating
abstractor,
or
closer:
Sec.
69.
Section
16.102,
Code
2014,
is
amended
to
read
as
follows:
16.102
Establishment
of
bond
bank
economic
development
program
——
bonds
and
notes
——
projects.
The
authority
may
assist
the
development
and
expansion
of
family
farming,
soil
conservation,
housing,
and
business
in
the
state
through
the
establishment
of
the
Iowa
economic
development
bond
bank
program.
The
authority
may
issue
its
bonds
or
notes,
or
series
of
bonds
or
notes
for
the
purpose
of
defraying
the
cost
of
one
or
more
projects
and
make
secured
and
unsecured
loans
for
the
acquisition
and
construction
of
projects
on
terms
the
authority
determines.
Sec.
70.
Section
16.103,
unnumbered
paragraph
1,
Code
2014,
is
amended
to
read
as
follows:
In
carrying
out
the
Iowa
economic
development
bond
bank
program,
the
authority
may
do
any
of
the
following:
Sec.
71.
Section
16.105,
subsection
1,
unnumbered
paragraph
1,
Code
2014,
is
amended
to
read
as
follows:
The
authority
may
provide
in
the
resolution
authorizing
the
issuance
of
its
bonds
or
notes
for
the
Iowa
economic
development
bond
bank
program
that
the
principal
of,
premium,
if
any,
and
interest
on
the
bonds
or
notes
are
payable
Senate
File
2328,
p.
56
exclusively
from
any
of
the
following:
Sec.
72.
Section
16.105,
subsection
13,
Code
2014,
is
amended
by
striking
the
subsection.
Sec.
73.
Section
16.131,
subsection
1,
Code
2014,
is
amended
to
read
as
follows:
1.
The
authority
shall
cooperate
with
the
department
of
natural
resources
in
the
creation,
administration,
and
financing
of
the
Iowa
water
pollution
control
works
and
drinking
water
facilities
financing
program
established
in
sections
455B.291
through
455B.299
.
Sec.
74.
Section
16.131A,
subsection
8,
Code
2014,
is
amended
to
read
as
follows:
8.
“Program”
means
the
Iowa
water
pollution
control
works
and
drinking
water
facilities
financing
program
created
pursuant
to
section
455B.294
.
Sec.
75.
Section
16.132,
subsection
6,
Code
2014,
is
amended
by
striking
the
subsection.
Sec.
76.
Section
16.134,
subsection
4,
paragraph
c,
Code
2014,
is
amended
to
read
as
follows:
c.
Priority
shall
be
given
to
projects
in
which
the
financial
assistance
is
used
to
obtain
financing
under
the
Iowa
water
pollution
control
works
and
drinking
water
facilities
financing
program
pursuant
to
section
16.131
or
other
federal
or
state
financing.
RULEMAKING
Sec.
77.
RULEMAKING.
The
Iowa
finance
authority
may
adopt
rules
pursuant
to
chapter
17A
to
implement
this
division
of
this
Act
prior
to
January
1,
2015.
The
rules
shall
be
effective
January
1,
2015,
unless
a
later
date
is
specified
in
the
rules.
EFFECTIVE
DATE
Sec.
78.
EFFECTIVE
DATE.
1.
Except
as
provided
in
subsection
2,
this
division
of
this
Act
takes
effect
January
1,
2015.
2.
The
provision
of
this
Act
allowing
the
Iowa
finance
authority
to
adopt
rules
pursuant
to
chapter
17A
to
implement
this
division
of
this
Act
prior
to
January
1,
2015,
takes
effect
upon
enactment.
DIVISION
II
COORDINATING
AMENDMENTS
GENERAL
PROVISIONS
Sec.
79.
Section
2.48,
subsection
3,
paragraph
c,
subparagraph
(4),
Code
2014,
is
amended
by
striking
the
Senate
File
2328,
p.
57
subparagraph.
Sec.
80.
Section
2.48,
subsection
3,
paragraph
e,
subparagraph
(1),
Code
2014,
is
amended
to
read
as
follows:
(1)
(a)
The
agricultural
assets
transfer
tax
credit
under
as
provided
in
section
175.37
and
the
16.80.
(b)
The
custom
farming
contract
tax
credit
as
provided
in
section
175.38
16.81
.
Sec.
81.
Section
7C.4A,
subsection
4,
Code
2014,
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
farmers
under
chapter
175
16,
subchapter
VIII
.
However,
at
any
time
during
the
calendar
year
the
governor’s
designee,
with
the
approval
of
the
Iowa
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.
82.
Section
15F.204,
subsection
8,
paragraph
e,
Code
2014,
is
amended
by
striking
the
paragraph.
Sec.
83.
Section
159.18,
subsection
1,
Code
2014,
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
Iowa
finance
authority
as
provided
in
section
175.12
16.75
.
Sec.
84.
Section
237.14,
Code
2014,
is
amended
to
read
as
follows:
237.14
Enhanced
foster
care
services.
The
department
shall
provide
for
enhanced
foster
care
services
by
establishing
supplemental
per
diem
or
performance-based
contracts
which
include
payment
of
costs
relating
to
payments
of
principal
and
interest
for
bonds
and
notes
issued
pursuant
to
section
16.155
16.57
with
facilities
licensed
under
this
chapter
which
provide
special
services
to
children
who
would
otherwise
be
placed
in
a
state
juvenile
institution
or
an
out-of-state
program.
Before
completion
of
the
department’s
budget
estimate
as
required
by
section
8.23
,
the
department
shall
determine
and
include
in
the
estimate
the
amount
which
should
be
appropriated
for
enhanced
foster
care
services
for
the
forthcoming
fiscal
year
in
order
to
provide
Senate
File
2328,
p.
58
sufficient
services.
Sec.
85.
Section
422.7,
subsection
2,
paragraphs
e
and
k,
Code
2014,
are
amended
to
read
as
follows:
e.
Iowa
water
Water
pollution
control
works
and
drinking
facilities
financing
program
bonds
pursuant
to
section
16.131,
subsection
5
.
k.
Iowa
finance
authority
beginning
farmer
loan
program
bonds
pursuant
to
section
175.17
16.64
,
subsection
10
2
.
Sec.
86.
Section
422.11M,
Code
2014,
is
amended
to
read
as
follows:
422.11M
Beginning
farmers
——
agricultural
assets
transfer
tax
credit
and
custom
farming
contract
tax
credit.
The
taxes
imposed
under
this
division
,
less
the
credits
allowed
under
section
422.12
,
shall
be
reduced
by
the
following:
1.
An
agricultural
assets
transfer
tax
credit
as
allowed
under
section
175.37
16.80
.
2.
A
custom
farming
contract
tax
credit
as
allowed
under
section
175.38
16.81
.
Sec.
87.
Section
422.33,
subsection
21,
Code
2014,
is
amended
to
read
as
follows:
21.
The
taxes
imposed
under
this
division
shall
be
reduced
by
the
following:
a.
An
agricultural
assets
transfer
tax
credit
as
allowed
under
section
175.37
16.80
.
b.
A
custom
farming
contract
tax
credit
as
allowed
under
section
175.38
16.81
.
Sec.
88.
Section
422.33,
subsection
27,
Code
2014,
is
amended
by
striking
the
subsection.
Sec.
89.
Section
455B.291,
subsection
8,
Code
2014,
is
amended
to
read
as
follows:
8.
“Program”
means
the
Iowa
water
pollution
control
works
and
drinking
water
facilities
financing
program
created
pursuant
to
section
455B.294
.
Sec.
90.
Section
455B.294,
Code
2014,
is
amended
to
read
as
follows:
455B.294
Establishment
of
the
Iowa
water
pollution
control
works
and
drinking
water
facilities
financing
program.
The
Iowa
water
pollution
control
works
and
drinking
water
facilities
financing
program
is
established
for
the
purpose
of
making
loans
available
to
eligible
entities
to
finance
all
or
part
of
the
costs
of
projects.
The
program
shall
be
a
joint
and
cooperative
undertaking
of
the
department
and
the
authority.
Senate
File
2328,
p.
59
The
department
and
the
authority
may
enter
into
and
provide
any
agreements,
documents,
instruments,
certificates,
data,
or
information
necessary
in
connection
with
the
operation,
administration,
and
financing
of
the
program
consistent
with
this
part,
the
Safe
Drinking
Water
Act,
the
Clean
Water
Act,
the
rules
of
the
department
and
the
commission,
the
rules
of
the
authority,
and
other
applicable
federal
and
state
law.
The
authority
and
the
department
may
act
to
conform
the
program
to
the
applicable
guidance
and
regulations
adopted
by
the
United
States
environmental
protection
agency.
Sec.
91.
Section
456A.38,
subsection
1,
paragraph
a,
Code
2014,
is
amended
to
read
as
follows:
a.
“Agricultural
land”
,
“authority”
,
“beginning
farmer”
,
and
“farming”
mean
the
same
as
defined
in
section
175.2
16.58
.
Sec.
92.
Section
456A.38,
subsection
4,
Code
2014,
is
amended
to
read
as
follows:
4.
The
department
shall
execute
a
lease
with
a
beginning
farmer
selected
to
participate
in
the
program
after
such
person
has
been
certified
by
the
authority
as
a
beginning
farmer
who
meets
the
requirements
of
the
authority,
which
shall
be
based
on
section
175.12
16.75
,
subsection
3
,
paragraphs
“a”
,
“c”
,
“f”
,
and
“g”
.
Sec.
93.
Section
502.201,
subsection
9B,
Code
2014,
is
amended
to
read
as
follows:
9B.
Iowa
finance
authority.
Any
security
issued
by
the
Iowa
finance
authority
under
chapter
175
16,
subchapter
VIII
.
Sec.
94.
Section
535B.10,
subsection
6,
paragraph
h,
Code
2014,
is
amended
to
read
as
follows:
h.
The
administrator
may
furnish
information
to
the
Iowa
title
guaranty
division
of
the
Iowa
finance
authority
relating
to
supervision
of
closing
agent
licensees
whose
activities
relate
to
the
issuance
of
title
guaranty
certificates
issued
by
the
title
guaranty
division.
The
Iowa
title
guaranty
division
may
use
this
information
to
satisfy
its
reinsurance
requirements
and
may
provide
the
information
to
its
reinsurer
to
the
extent
necessary
to
satisfy
reinsurer
requirements
provided
the
reinsurer
agrees
to
maintain
the
confidentiality
of
the
information.
The
Iowa
title
guaranty
division
shall
maintain
the
confidentiality
of
the
information
provided
pursuant
to
this
paragraph
in
all
other
respects.
Sec.
95.
Section
654.16,
unnumbered
paragraph
1,
Code
2014,
is
amended
to
read
as
follows:
If
a
sheriff’s
sale
is
ordered
on
agricultural
land
used
for
Senate
File
2328,
p.
60
farming,
as
defined
in
section
175.2
16.58
,
the
mortgagor
may,
by
a
date
set
by
the
court
but
not
later
than
ten
days
before
the
sale,
designate
to
the
court
the
portion
of
the
land
which
the
mortgagor
claims
as
a
homestead.
The
homestead
may
be
any
contiguous
portion
of
forty
acres
or
less
of
the
real
estate
subject
to
the
sheriff’s
sale.
The
homestead
shall
contain
the
residence
of
the
mortgagor
and
shall
be
as
compact
as
practicable.
Sec.
96.
Section
654.16A,
subsection
1,
Code
2014,
is
amended
to
read
as
follows:
1.
Not
later
than
the
time
a
sheriff’s
deed
to
agricultural
land
used
for
farming,
as
defined
in
section
175.2
16.58
,
is
recorded,
the
grantee
recording
the
sheriff’s
deed
shall
notify
the
mortgagor
of
the
mortgagor’s
right
of
first
refusal.
The
grantee
shall
record
the
sheriff’s
deed
within
one
year
and
sixty
days
from
the
date
of
the
sheriff’s
sale.
A
copy
of
this
section
,
titled
“Notice
of
Right
of
First
Refusal”
is
sufficient
notice.
RULEMAKING
Sec.
97.
RULEMAKING.
The
Iowa
finance
authority
may
adopt
rules
pursuant
to
chapter
17A
to
implement
this
division
of
this
Act
prior
to
January
1,
2015.
The
rules
shall
be
effective
January
1,
2015,
unless
a
later
date
is
specified
in
the
rules.
EFFECTIVE
DATE
Sec.
98.
EFFECTIVE
DATE.
1.
Except
as
provided
in
subsection
2,
this
division
of
this
Act
takes
effect
January
1,
2015.
2.
The
provision
of
this
Act
allowing
the
Iowa
finance
authority
to
adopt
rules
pursuant
to
chapter
17A
to
implement
this
division
of
this
Act
prior
to
January
1,
2015,
takes
effect
upon
enactment.
DIVISION
III
CODIFICATION
GENERAL
PROVISIONS
Sec.
99.
REORGANIZATION.
The
Code
editor
shall
create
new
subchapters,
parts,
and
subparts
in
chapter
16,
as
amended
in
this
Act,
for
publication
in
the
2015
Code
as
follows:
1.
Subchapter
I
may
include
section
16.1
as
amended
in
this
Act.
The
subchapter
may
be
entitled
“General
Definitions”.
2.
Subchapter
II
may
include
sections
16.1A,
16.2,
and
16.2A,
as
amended
in
this
Act,
and
sections
16.2B
through
16.2D
as
enacted
in
this
Act.
The
subchapter
may
be
entitled
Senate
File
2328,
p.
61
“Governance”.
The
subchapter
may
be
divided
into
parts
as
follows:
a.
Part
1
may
include
sections
16.1A
and
16.2
as
amended
in
this
Act.
The
part
may
be
entitled
“General”.
b.
Part
2
may
include
section
16.2A
as
amended
in
this
Act
and
sections
16.2B
through
16.2D
as
enacted
in
this
Act.
The
part
may
be
entitled
“Special
Governing
Units”.
3.
Subchapter
III
may
include
section
16.2E
as
enacted
in
this
Act,
section
16.3
as
amended
by
this
Act,
reserved
section
16.3A
as
repealed
in
this
Act,
section
16.4
as
amended
in
this
Act,
and
sections
16.4A
through
16.4D
as
enacted
in
this
Act.
The
subchapter
may
be
entitled
“Legislative
Findings
and
Guiding
Principles”.
The
subchapter
may
be
divided
into
parts
as
follows:
a.
Part
1
may
include
section
16.2E
as
enacted
in
this
Act.
The
part
may
be
entitled
“General”.
b.
Part
2
may
include
sections
16.3
as
amended
by
this
Act,
reserved
section
16.3A
as
repealed
in
this
Act,
and
section
16.4
as
amended
in
this
Act.
The
part
may
be
entitled
“Housing”.
c.
Part
3
may
include
sections
16.4A
and
16.4B
as
enacted
in
this
Act.
The
part
may
be
entitled
“Agricultural
Development”.
d.
Part
4
may
include
section
16.4C
as
enacted
in
this
Act.
The
part
may
be
entitled
“Title
Guaranty”.
e.
Part
5
may
include
section
16.4D
as
enacted
in
this
Act.
The
part
may
be
entitled
“Economic
Development”.
4.
Subchapter
IV
may
include
sections
16.5
as
amended
in
this
Act,
reserved
sections
16.5A
and
16.5B,
section
16.5C
as
amended
in
this
Act,
and
section
16.5D
as
enacted
in
this
Act.
The
subchapter
may
be
entitled
“Powers
and
Duties”.
The
subchapter
may
be
divided
into
parts
as
follows:
a.
Part
1
may
include
section
16.5
as
amended
in
this
Act,
and
reserved
sections
16.5A
and
16.5B.
The
part
may
be
entitled
“General
Powers
and
Duties”.
b.
Part
2
may
include
section
16.5C
as
amended
in
this
Act
and
section
16.5D
as
enacted
in
this
Act.
The
part
may
be
entitled
“Specific
Powers”.
5.
Subchapter
V
may
include
section
16.6,
section
16.7
as
amended
in
this
Act,
reserved
section
16.8,
section
16.9
as
amended
in
this
Act,
reserved
section
16.10
as
repealed
in
this
Act,
section
16.11
as
enacted
in
this
Act,
reserved
section
16.12,
section
16.13
as
enacted
in
this
Act,
reserved
section
16.14,
reserved
section
16.15
as
repealed
in
this
Act,
Senate
File
2328,
p.
62
and
sections
16.16
through
16.19
as
enacted
in
this
Act.
The
subchapter
may
be
entitled
“Administration”.
The
subchapter
may
be
divided
into
parts
as
follows:
a.
Part
1
may
include
section
16.6.
The
part
may
be
entitled
“Executive
Director”.
b.
Part
2
may
include
section
16.7
as
amended
in
this
Act,
reserved
section
16.8,
section
16.9
as
amended
in
this
Act,
reserved
section
16.10
as
repealed
in
this
Act,
section
16.11
as
enacted
in
this
Act,
reserved
section
16.12,
section
16.13
as
enacted
in
this
Act,
reserved
section
16.14,
reserved
section
16.15
as
repealed
in
this
Act,
and
section
16.16
as
enacted
in
this
Act.
The
part
may
be
entitled
“General”.
c.
Part
3
may
include
sections
16.17
through
16.19
as
enacted
in
this
Act.
The
part
may
be
entitled
“Statutory
Construction”.
6.
Subchapter
VI
may
include
reserved
sections
16.20
and
16.21
as
repealed
in
this
Act,
section
16.22
as
enacted
in
this
Act,
reserved
sections
16.23
through
16.25,
section
16.26
as
amended
in
this
Act,
section
16.27,
section
16.27A
as
enacted
in
this
Act,
section
16.28,
section
16.29
as
enacted
in
this
Act,
sections
16.30
and
16.31,
section
16.32
as
enacted
in
this
Act,
and
reserved
section
16.33
as
repealed
in
this
Act.
The
subchapter
may
be
entitled
“Financing”.
7.
Subchapter
VII
may
include
reserved
section
16.34
as
repealed
in
this
Act,
sections
16.34A
through
16.36
as
enacted
in
this
Act,
reserved
section
16.37
as
repealed
in
this
Act,
sections
16.38
and
16.39
as
enacted
in
this
Act,
section
16.40
as
amended
in
this
Act,
section
16.41,
reserved
section
16.42
as
repealed
in
this
Act,
reserved
section
16.43,
section
16.44,
reserved
section
16.45,
sections
16.46
through
16.50
as
enacted
in
this
Act,
section
16.51,
reserved
section
16.52
as
repealed
in
this
Act,
sections
16.53
and
16.54,
reserved
section
16.55,
and
sections
16.56
and
16.57
as
enacted
in
this
Act.
The
subchapter
may
be
entitled
“Housing”.
The
subchapter
may
be
divided
into
parts
as
follows:
a.
Part
1
may
include
reserved
section
16.34
as
repealed
in
this
Act
and
section
16.34A
as
enacted
in
this
Act.
The
part
may
be
entitled
“Special
Definition”.
b.
Part
2
may
include
sections
16.35
through
16.36
as
enacted
in
this
Act,
and
reserved
section
16.37
as
repealed
in
this
Act.
The
part
may
be
entitled
“Administration”.
c.
Part
3
may
include
sections
16.38
and
16.39
as
enacted
in
this
Act.
The
part
may
be
entitled
“Lending
Institutions”.
Senate
File
2328,
p.
63
d.
Part
4
may
include
section
16.40
as
amended
in
this
Act,
section
16.41,
reserved
section
16.42
as
repealed
in
this
Act,
reserved
section
16.43,
section
16.44,
reserved
section
16.45,
and
section
16.46
through
16.50
as
enacted
in
this
Act.
The
part
may
be
entitled
“Special
Funds”.
e.
Part
5
may
include
section
16.51,
reserved
section
16.52
as
repealed
in
this
Act,
sections
16.53
and
16.54,
reserved
section
16.55,
and
sections
16.56
and
16.57
as
enacted
in
this
Act.
The
part
may
be
entitled
“Additional
Programs”.
8.
Subchapter
VIII
may
include
sections
16.58
through
16.64
as
enacted
in
this
Act,
reserved
sections
16.65
through
16.67,
reserved
sections
16.68
and
16.69,
sections
16.70
and
16.71
as
enacted
in
this
Act,
reserved
section
16.72,
reserved
section
16.73
as
repealed
in
this
Act,
reserved
section
16.74,
sections
16.75
and
16.76
as
enacted
in
this
Act,
reserved
section
16.77,
sections
16.78
through
16.84
as
enacted
in
this
Act,
and
reserved
sections
16.85
through
16.89.
The
subchapter
may
be
entitled
“Agricultural
Development”.
The
subchapter
may
be
divided
into
parts
as
follows:
a.
Part
1
may
include
sections
16.58
and
16.59
as
enacted
in
this
Act.
The
part
may
be
entitled
“General”.
b.
Part
2
may
include
sections
16.60
through
16.63
as
enacted
in
this
Act.
The
part
may
be
entitled
“Administration”.
c.
Part
3
may
include
section
16.64
as
enacted
in
this
Act,
reserved
sections
16.65
through
16.67,
section
16.68
as
enacted
in
this
Act,
and
reserved
section
16.69.
The
part
may
be
entitled
“Special
Financing”.
d.
Part
4
may
include
sections
16.70
and
16.71
as
enacted
in
this
Act,
reserved
section
16.72,
reserved
section
16.73
as
repealed
in
this
Act,
and
reserved
section
16.74.
The
part
may
be
entitled
“Loans
to
Lending
Institutions”.
e.
Part
5
may
include
sections
16.75
and
16.76
as
enacted
in
this
Act,
reserved
section
16.77,
and
sections
16.78
through
16.84
as
enacted
in
this
Act,
and
reserved
sections
16.85
through
16.89.
The
part
may
be
entitled
“Beginning
Farmer
Programs”.
The
part
may
be
divided
into
subparts
as
follows:
(1)
Subpart
A
may
include
sections
16.75
and
16.76
as
enacted
in
this
Act
and
reserved
section
16.77.
The
subpart
may
be
entitled
“Beginning
Farmer
Loan
Program”.
(2)
Subpart
B
may
include
sections
16.78
through
16.82
as
enacted
in
this
Act.
The
subpart
may
be
entitled
“Beginning
Farmer
Tax
Credit
Program”.
Senate
File
2328,
p.
64
(3)
Subpart
C
may
include
sections
16.83
and
16.84
as
enacted
in
this
Act,
and
reserved
sections
16.85
through
16.89.
The
subpart
may
be
entitled
“Agricultural
Producer
Programs”.
9.
Subchapter
IX
may
include
section
16.90
as
enacted
in
this
Act,
and
section
16.91
as
amended
in
this
Act,
and
sections
16.92
through
16.97.
The
subchapter
may
be
entitled
“Title
Guaranty”.
The
subchapter
may
be
divided
into
parts
as
follows:
a.
Part
1
may
include
section
16.90
as
enacted
in
this
Act.
The
part
may
be
entitled
“General”.
b.
Part
2
may
include
section
16.91
as
amended
in
this
Act,
sections
16.92
and
16.93,
and
reserved
sections
16.94
through
16.97.
The
part
may
be
entitled
“Program”.
10.
Subchapter
X
may
include
reserved
sections
16.98
and
16.99,
reserved
sections
16.100
and
16.100A
as
repealed
in
this
Act,
reserved
section
16.101,
section
16.102,
section
16.103
as
amended
in
this
Act,
section
16.104,
section
16.105
as
amended
in
this
Act,
section
16.106
as
repealed
by
this
Act,
reserved
sections
16.107
through
16.130,
section
16.131
and
section
16.132
as
amended
in
this
Act,
sections
16.133
and
16.133A,
sections
16.134
as
amended
in
this
Act,
section
16.135,
reserved
sections
16.136
through
16.140,
section
16.141,
reserved
sections
16.142
through
16.154,
reserved
section
16.155
as
repealed
in
this
Act,
reserved
sections
16.156
through
16.160,
sections
16.161
and
16.162,
reserved
sections
16.163
through
16.170,
repealed
section
16.171
as
repealed
in
this
Act,
reserved
sections
16.172
through
16.176,
section
16.177,
reserved
sections
16.178
through
16.180,
sections
16.181
and
16.181A,
reserved
sections
16.182
through
16.185
as
repealed
in
this
Act,
reserved
sections
16.186
and
16.187,
reserved
section
16.188
as
repealed
in
this
Act,
reserved
sections
16.189
through
16.192,
sections
16.193
through
16.196,
reserved
section
16.197
as
repealed
by
this
Act,
reserved
sections
16.198
through
16.200,
reserved
section
16.201
as
repealed
in
this
Act,
reserved
sections
16.202
through
16.210,
reserved
sections
16.211
and
16.212
as
repealed
in
this
Act,
reserved
sections
16.213
through
16.220,
and
reserved
section
16.221
as
repealed
in
this
Act.
The
subchapter
may
be
entitled
“Special
Financing
Programs”.
The
subchapter
may
be
divided
into
parts
as
follows:
a.
Part
1
may
include
reserved
sections
16.98
and
16.99,
reserved
sections
16.100
and
16.100A
as
repealed
in
this
Act,
reserved
section
16.101,
sections
16.102
and
16.103
as
amended
Senate
File
2328,
p.
65
in
this
Act,
section
16.104,
section
16.105
as
amended
in
this
Act,
section
16.106
as
repealed
in
this
Act,
and
reserved
sections
16.107
through
16.130.
The
part
may
be
entitled
“Economic
Development
Program”.
b.
Part
2
may
include
sections
16.131
through
16.132
as
amended
in
this
Act,
sections
16.133
and
16.133A,
section
16.134
as
amended
in
this
Act,
section
16.135,
and
reserved
sections
16.136
through
16.140.
The
part
may
be
entitled
“Water
Pollution
Control
Works
and
Drinking
Water
Facilities
Financing”.
c.
Part
3
may
include
section
16.141
and
reserved
sections
16.142
through
16.154.
The
part
may
be
entitled
“Unsewered
Community
Revolving
Loan
Program”.
d.
Part
4
may
include
section
16.155
as
repealed
in
this
Act,
reserved
sections
16.156
through
16.160,
and
section
16.161.
The
part
may
be
entitled
“E911
Program”.
e.
Part
5
may
include
section
16.162
and
reserved
sections
16.163
through
16.170.
The
part
may
be
entitled
“Community
College
Dormitories”.
f.
Part
6
may
include
section
16.171
and
reserved
sections
16.172
through
16.176.
The
part
may
be
entitled
“Recovery
Zone
Bonds”.
g.
Part
7
may
include
section
16.177,
and
reserved
sections
16.178
through
16.180.
The
part
may
be
entitled
“Prison
Infrastructure
Revenue
Bonds”.
h.
Part
8
may
include
sections
16.181
and
16.181A,
reserved
sections
16.182
through
16.185
as
repealed
in
this
Act,
reserved
sections
16.186
and
16.187,
reserved
section
16.188
as
repealed
in
this
Act,
and
reserved
sections
16.189
and
16.190.
The
part
may
be
entitled
“Housing
Trust
Fund”.
i.
Part
9
may
include
reserved
sections
16.191
and
16.192,
sections
16.193
through
16.196,
reserved
section
16.197
as
repealed
in
this
Act,
reserved
sections
16.198
through
16.200,
reserved
section
16.201
as
repealed
in
this
Act,
reserved
sections
16.202
through
16.210,
reserved
sections
16.211
and
16.212
as
repealed
in
this
Act,
reserved
sections
16.213
through
16.220,
and
reserved
section
16.221
as
repealed
by
this
Act.
The
part
may
be
entitled
“Iowa
Jobs
Program”.
CORRECTIONS
AND
FURTHER
REORGANIZATION
Sec.
100.
AUTHORITY
TO
CODE
EDITOR.
In
reorganizing
chapter
16
for
publication
as
part
of
the
2015
Code,
all
of
the
following
shall
apply:
1.
The
Code
editor
shall
correct
internal
references
as
Senate
File
2328,
p.
66
necessary.
2.
Nothing
in
this
Act
prevents
the
Code
editor
from
organizing
chapter
16,
as
provided
in
section
2B.13,
in
a
manner
other
than
specified
in
this
division.
The
Code
editor
may
consolidate
the
subchapters,
parts,
subparts,
or
sections
in
chapter
16,
including
by
eliminating
unused
section
numbers
and
renumbering
sections
included
in
chapter
16
as
amended
by
this
Act,
and
correcting
internal
references
in
a
manner
that
enhances
its
readability.
EFFECTIVE
DATE
Sec.
101.
EFFECTIVE
DATE.
This
division
of
this
Act
takes
effect
upon
enactment.
DIVISION
IV
TRANSITIONAL
PROVISIONS
ADMINISTRATION
Sec.
102.
POWERS
AND
DUTIES
OF
THE
IOWA
FINANCE
AUTHORITY.
This
Act
does
not
do
any
of
the
following:
1.
Substantively
affect
the
powers
and
duties
of
the
Iowa
finance
authority
provided
for
in
chapter
16
or
175
as
either
chapter
existed
immediately
prior
to
the
effective
date
of
this
division
of
this
Act.
2.
Restrict
the
Iowa
finance
authority
from
adopting
a
rule,
form,
order,
or
directive
that
it
could
have
adopted
under
chapter
16
or
175
as
either
chapter
existed
immediately
prior
to
the
effective
date
of
this
division
of
this
Act.
Sec.
103.
ADMINISTRATION
OF
ONGOING
PROGRAMS.
The
Iowa
finance
authority
shall
continue
the
administration
of
ongoing
programs
under
chapter
16
or
175,
in
progress
on
the
effective
date
of
this
division
of
this
Act.
Sec.
104.
ADMINISTRATIVE
RULES
AND
OTHER
ACTIONS
AND
DOCUMENTS.
Any
rule,
form,
order,
or
directive
promulgated
by
the
Iowa
finance
authority
pursuant
to
chapter
16,
including
section
16.1A,
or
chapter
175,
as
required
to
administer
and
enforce
the
provisions
of
chapter
16
as
amended
in
this
Act,
shall
continue
in
full
force
and
effect
until
amended,
rescinded,
or
supplemented
by
the
affirmative
action
of
the
Iowa
finance
authority.
Sec.
105.
GOVERNING
BODIES.
1.
This
Act’s
repeal
of
section
175.3
and
the
enactment
of
section
16.2C
shall
not
affect
the
original
appointment
or
term
of
office
of
a
member
to
the
agricultural
development
board
by
the
governor
pursuant
to
2013
Iowa
Acts,
chapter
100.
However,
such
a
member
shall
comply
with
any
new
requirement
as
provided
Senate
File
2328,
p.
67
in
this
Act
upon
reappointment
and
a
new
member
shall
comply
with
all
requirements
as
provided
in
this
Act
upon
appointment
or
reappointment.
2.
This
Act’s
repeal
of
section
16.100
and
the
enactment
of
section
16.2D
shall
not
affect
the
appointment
or
term
of
office
of
a
member
to
the
council
on
homelessness.
Sec.
106.
PERSONNEL.
Nothing
in
this
Act
affects
personnel
in
the
state
merit
system
of
employment.
LEGAL
OR
EQUITABLE
RIGHTS
Sec.
107.
PENDING
ADMINISTRATIVE
OR
JUDICIAL
PROCEEDINGS.
1.
An
administrative
or
judicial
proceeding
arising
under
chapter
16
or
175
prior
to
the
effective
date
of
this
division
of
this
Act,
and
pending
on
the
effective
date
of
this
division
of
this
Act,
shall
not
be
affected
due
to
the
enactment
of
this
Act.
2.
A
cause
of
action
or
statute
of
limitation
relating
to
an
action
taken
by
a
party
in
a
matter
arising
under
chapter
16
or
175
prior
to
the
effective
date
of
this
division
of
this
Act
shall
not
be
affected
by
this
Act.
3.
The
Iowa
finance
authority
or
the
attorney
general
acting
on
behalf
of
the
Iowa
finance
authority
in
an
administrative
or
judicial
proceeding
pending
on
the
effective
date
of
this
division
of
this
Act
shall
not
be
affected
as
a
result
of
this
Act.
Any
statute
of
limitation
that
would
have
otherwise
applied
to
the
parties
in
such
proceeding
shall
continue
to
apply
to
the
parties
as
if
this
Act
had
not
been
enacted.
Sec.
108.
EXISTING
RIGHTS
AND
OBLIGATIONS
OF
THE
IOWA
FINANCE
AUTHORITY.
Nothing
in
this
Act
affects
any
of
the
following:
1.
An
interest
in
real
property,
tangible
personal
property,
or
intangible
personal
property
held
by
the
Iowa
finance
authority.
2.
A
property
right,
security
interest,
or
lien
held
by
the
Iowa
finance
authority,
including
but
not
limited
to
a
deed,
contract,
or
endorsement.
3.
Any
debt,
obligation,
or
liability
incurred
by
the
Iowa
finance
authority
which
shall
continue
according
to
the
same
terms
and
conditions
as
applied
prior
to
the
effective
date
of
this
division
of
this
Act.
Sec.
109.
PRESERVATION
OF
EXISTING
RIGHTS.
1.
This
Act
shall
preserve
and
shall
neither
increase
nor
decrease
a
right
or
obligation
of
a
party
or
any
other
person
connected
with
the
issuance,
holding,
transfer,
redemption,
or
Senate
File
2328,
p.
68
payment
of
a
bond
or
note
under
chapter
16
or
175
as
either
chapter
existed
prior
to
the
effective
date
of
this
division
of
this
Act.
2.
This
Act
shall
not
limit,
modify,
or
otherwise
affect
the
term
or
condition
of
an
agreement
between
the
Iowa
finance
authority
and
another
person
which
was
originally
executed
under
chapter
16
or
175
as
either
chapter
existed
prior
to
the
effective
date
of
this
division
of
this
Act.
This
Act
specifically
does
not
affect
any
program
for
beginning
farmers
or
first-time
farmers
as
that
program
existed
under
chapter
175
prior
to
the
effective
date
of
this
division
of
this
Act.
3.
This
Act
shall
not
limit,
modify,
or
otherwise
adversely
affect
a
taxpayer’s
right
to
claim
or
redeem
a
tax
credit
issued,
awarded,
or
allowed
under
sections
175.36A
through
175.39,
including
but
not
limited
to
any
tax
credit
carryforward
amount
so
long
as
the
tax
credit
was
issued,
awarded,
or
allowed
when
sections
175.36A
through
175.39
were
in
effect.
A
person
shall
not
claim
or
be
issued,
awarded,
or
allowed
the
same
tax
credit
under
sections
175.36A
through
175.39
in
effect
prior
to
the
effective
date
of
this
division
of
this
Act
and
chapter
16,
subchapter
VIII,
part
5,
as
enacted
in
this
Act
on
and
after
the
effective
date
of
this
division
of
this
Act.
EFFECTIVE
DATE
Sec.
110.
EFFECTIVE
DATE.
This
division
of
this
Act
takes
effect
on
January
1,
2015.
DIVISION
V
CURRENT
REPEAL
PROVISIONS
GENERAL
Sec.
111.
REPEAL.
Sections
16.3A,
16.10,
16.15,
16.20,
16.21,
16.33,
16.34,
16.37,
16.42,
16.44,
16.52,
16.73,
16.100,
16.100A,
16.106,
16.155,
16.171,
16.182,
16.183,
16.184,
16.185,
16.188,
16.197,
16.201,
16.211,
16.212,
16.221,
and
422.11X,
Code
2014,
are
repealed.
Sec.
112.
REPEAL.
Chapter
175,
Code
2014,
is
repealed.
REPEAL
OF
CONFLICTING
INTERVENING
PROVISION
Sec.
113.
REPEAL.
Any
intervening
provision
effective
prior
to
the
effective
date
of
this
division
of
this
Act
that
amends
a
section
or
chapter
repealed
in
another
section
of
this
division
of
this
Act
is
also
repealed,
unless
that
Act
or
another
Act
specifically
provides
otherwise.
EFFECTIVE
DATE
Sec.
114.
EFFECTIVE
DATE.
This
division
of
this
Act
takes
Senate
File
2328,
p.
69
effect
January
1,
2015.
DIVISION
VI
FUTURE
PROVISIONS
REPEAL
OF
THE
BEGINNING
FARMER
TAX
CREDIT
PROGRAM
Sec.
115.
REPEAL.
Section
2.48,
subsection
3,
paragraph
e,
subparagraph
(1),
subparagraph
division
(b),
as
amended
by
this
Act,
is
amended
by
striking
the
subparagraph
division.
Sec.
116.
REPEAL.
Section
16.1,
subsection
1,
paragraph
an,
as
enacted
by
this
Act,
is
amended
by
striking
the
paragraph.
Sec.
117.
REPEAL.
Section
16.58,
subsections
7
and
13,
as
enacted
by
this
Act,
are
amended
by
striking
the
subsections.
Sec.
118.
REPEAL.
Section
422.11M,
subsection
2,
as
amended
by
this
Act,
is
amended
by
striking
the
subsection.
Sec.
119.
REPEAL.
Section
422.33,
subsection
21,
paragraph
b,
as
amended
by
this
Act,
is
amended
by
striking
the
paragraph.
Sec.
120.
REPEAL.
Sections
16.78,
16.79,
16.81,
and
16.82,
as
enacted
by
this
Act,
are
repealed.
Sec.
121.
REPEAL.
2013
Iowa
Acts,
chapter
125,
division
II,
is
repealed.
ENACTMENT
OF
THE
AGRICULTURAL
ASSETS
TRANSFER
TAX
CREDIT
Sec.
122.
Section
16.80,
as
enacted
by
this
Act,
is
amended
by
striking
the
section
and
inserting
in
lieu
thereof
the
following:
16.80
Agricultural
assets
transfer
tax
credit
——
agreement.
1.
An
agricultural
assets
transfer
tax
credit
is
allowed
under
this
section.
The
tax
credit
is
allowed
against
the
taxes
imposed
in
chapter
422,
division
II,
as
provided
in
section
422.11M,
and
in
chapter
422,
division
III,
as
provided
in
section
422.33,
to
facilitate
the
transfer
of
agricultural
assets
from
a
taxpayer
to
a
beginning
farmer.
2.
In
order
to
qualify
for
the
tax
credit,
the
taxpayer
must
meet
qualifications
established
by
rules
adopted
by
the
authority.
At
a
minimum,
the
taxpayer
must
comply
with
all
of
the
following:
a.
Be
a
person
who
may
acquire
or
otherwise
obtain
or
lease
agricultural
land
in
this
state
pursuant
to
chapter
9H
or
9I.
However,
the
taxpayer
must
not
be
a
person
who
may
acquire
or
otherwise
obtain
or
lease
agricultural
land
exclusively
because
of
an
exception
provided
in
one
of
those
chapters
or
in
a
provision
of
another
chapter
of
this
Code
including
but
not
limited
to
chapter
10,
10D,
or
501,
or
section
15E.207.
b.
Execute
an
agricultural
assets
transfer
agreement
with
a
Senate
File
2328,
p.
70
beginning
farmer
as
provided
in
this
section.
3.
An
individual
may
claim
a
tax
credit
under
this
section
of
a
partnership,
limited
liability
company,
S
corporation,
estate,
or
trust
electing
to
have
income
taxed
directly
to
the
individual.
The
amount
claimed
by
the
individual
shall
be
based
upon
the
pro
rata
share
of
the
individual’s
earnings
from
the
partnership,
limited
liability
company,
S
corporation,
estate,
or
trust.
4.
The
tax
credit
is
allowed
only
for
agricultural
assets
that
are
subject
to
an
agricultural
assets
transfer
agreement.
The
agreement
shall
provide
for
the
lease
of
agricultural
land
including
any
improvements
and
may
provide
for
the
rental
of
agricultural
equipment
as
defined
in
section
322F.1.
a.
The
agreement
may
be
made
on
a
cash
basis
or
on
a
commodity
share
basis
which
includes
a
share
of
the
crops
or
livestock
produced
on
the
agricultural
land.
The
agreement
must
be
in
writing.
b.
The
agreement
shall
be
for
at
least
two
years,
but
not
more
than
five
years.
The
agreement
or
that
part
of
the
agreement
providing
for
the
lease
may
be
renewed
by
the
beginning
farmer
for
a
term
of
at
least
two
years,
but
not
more
than
five
years.
An
agreement
does
not
include
a
lease
or
the
rental
of
equipment
intended
as
a
security.
5.
The
tax
credit
shall
be
calculated
based
on
the
gross
amount
paid
to
the
taxpayer
under
the
agricultural
assets
transfer
agreement.
a.
Except
as
provided
in
paragraph
“b”
,
the
tax
credit
shall
equal
five
percent
of
the
amount
paid
to
the
taxpayer
under
the
agreement.
b.
The
tax
credit
shall
equal
fifteen
percent
of
the
amount
paid
to
the
taxpayer
from
crops
or
animals
sold
under
an
agreement
in
which
the
payment
is
exclusively
made
from
the
sale
of
crops
or
animals.
6.
In
order
to
qualify
as
a
beginning
farmer,
a
person
must
be
eligible
to
receive
financial
assistance
under
section
16.75.
7.
A
tax
credit
in
excess
of
the
taxpayer’s
liability
for
the
tax
year
may
be
credited
to
the
tax
liability
for
the
following
five
years
or
until
depleted,
whichever
is
earlier.
A
tax
credit
shall
not
be
carried
back
to
a
tax
year
prior
to
the
tax
year
in
which
the
taxpayer
redeems
the
tax
credit.
A
tax
credit
shall
not
be
transferable
to
any
other
person
other
than
the
taxpayer’s
estate
or
trust
upon
the
taxpayer’s
death.
Senate
File
2328,
p.
71
8.
A
taxpayer
shall
not
claim
a
tax
credit
under
this
section
unless
a
tax
credit
certificate
issued
by
the
authority
is
included
with
the
taxpayer’s
tax
return
for
the
tax
year
for
which
the
tax
credit
is
claimed.
The
authority
must
review
and
approve
an
application
for
a
tax
credit
as
provided
by
rules
adopted
by
the
authority.
The
application
must
include
a
copy
of
the
agricultural
assets
transfer
agreement.
The
authority
may
approve
an
application
and
issue
a
tax
credit
certificate
to
a
taxpayer
who
has
previously
been
allowed
a
tax
credit
under
this
section.
The
authority
may
require
that
the
parties
to
an
agricultural
assets
transfer
agreement
provide
additional
information
as
determined
relevant
by
the
authority.
The
authority
shall
review
an
application
for
a
tax
credit
which
includes
the
renewal
of
an
agricultural
assets
transfer
agreement
to
determine
that
the
parties
to
the
renewed
agreement
meet
the
same
qualifications
as
required
for
an
original
application.
However,
the
authority
shall
not
approve
an
application
or
issue
a
certificate
to
a
taxpayer
if
any
of
the
following
applies:
a.
The
taxpayer
is
at
fault
for
terminating
a
prior
agricultural
assets
transfer
agreement
as
determined
by
the
authority.
b.
The
taxpayer
is
any
of
the
following:
(1)
A
party
to
a
pending
administrative
or
judicial
action,
including
a
contested
case
proceeding
under
chapter
17A,
relating
to
an
alleged
violation
involving
an
animal
feeding
operation
as
regulated
by
the
department
of
natural
resources,
regardless
of
whether
the
pending
action
is
brought
by
the
department
or
the
attorney
general.
(2)
Classified
as
a
habitual
violator
for
a
violation
of
state
law
involving
an
animal
feeding
operation
as
regulated
by
the
department
of
natural
resources.
c.
The
beginning
farmer
is
responsible
for
managing
or
maintaining
agricultural
land
and
other
agricultural
assets
that
are
greater
than
necessary
to
adequately
support
a
beginning
farmer
as
determined
by
the
authority
according
to
rules
which
shall
be
adopted
by
the
authority.
d.
The
agricultural
assets
are
being
leased
or
rented
at
a
rate
which
is
substantially
higher
or
lower
than
the
market
rate
for
similar
agricultural
assets
leased
or
rented
within
the
same
community,
as
determined
by
the
authority.
9.
A
taxpayer
or
the
beginning
farmer
may
terminate
an
agricultural
assets
transfer
agreement
as
provided
in
the
Senate
File
2328,
p.
72
agreement
or
by
law.
The
taxpayer
must
immediately
notify
the
authority
of
the
termination.
a.
If
the
authority
determines
that
the
taxpayer
is
not
at
fault
for
the
termination,
the
authority
shall
not
issue
a
tax
credit
certificate
to
the
taxpayer
for
a
subsequent
tax
year
based
on
the
approved
application.
Any
prior
tax
credit
is
allowed
as
provided
in
this
section.
The
taxpayer
may
apply
for
and
be
issued
another
tax
credit
certificate
for
the
same
agricultural
assets
as
provided
in
this
section
for
any
remaining
tax
years
for
which
a
certificate
was
not
issued.
b.
If
the
authority
determines
that
the
taxpayer
is
at
fault
for
the
termination,
any
prior
tax
credit
allowed
under
this
section
is
disallowed.
The
tax
credit
shall
be
recaptured
and
the
amount
of
the
tax
credit
shall
be
immediately
due
and
payable
to
the
department
of
revenue.
If
a
taxpayer
does
not
immediately
notify
the
authority
of
the
termination,
the
taxpayer
shall
be
conclusively
deemed
at
fault
for
the
termination.
10.
The
amount
of
tax
credit
certificates
that
may
be
issued
pursuant
to
this
section
shall
not
exceed
six
million
dollars
in
any
fiscal
year.
The
authority
shall
issue
the
tax
credit
certificates
on
a
first-come,
first-served
basis.
REPEAL
OF
INTERVENING
PROVISIONS
Sec.
123.
REPEAL.
Any
intervening
provision
effective
prior
to
the
effective
date
of
this
division
of
this
Act
that
amends
a
section,
subsection,
paragraph,
subparagraph,
or
subparagraph
division,
as
enacted
or
amended
in
another
division
of
this
Act,
and
repealed
in
another
section
of
this
division
of
this
Act
is
also
repealed,
unless
that
Act
or
another
Act
specifically
provides
otherwise.
PROPOSED
LEGISLATION
Sec.
124.
IOWA
FINANCE
AUTHORITY.
The
Iowa
finance
authority
established
in
chapter
16
shall
propose
legislation
to
the
general
assembly
necessary
to
implement
this
division
of
this
Act.
The
Iowa
finance
authority
shall
propose
such
legislation
for
consideration
by
the
general
assembly
during
its
2017
legislative
session.
EFFECTIVE
DATE
Sec.
125.
EFFECTIVE
DATES.
1.
a.
Except
as
provided
in
subsection
2,
this
division
of
this
Act
takes
effect
January
1,
2018.
b.
The
section
of
this
division
of
this
Act
which
enacts
the
agricultural
assets
transfer
tax
credit
as
codified
in
Senate
File
2328,
p.
73
section
16.80
takes
effect
instantly
upon
the
repeal
of
the
agricultural
assets
transfer
tax
credit
previously
codified
in
section
16.80
and
enacted
in
another
division
of
this
Act.
2.
The
section
of
this
division
of
this
Act
which
requires
the
Iowa
finance
authority
to
propose
legislation
for
consideration
by
the
general
assembly
takes
effect
July
1,
2016.
______________________________
PAM
JOCHUM
President
of
the
Senate
______________________________
KRAIG
PAULSEN
Speaker
of
the
House
I
hereby
certify
that
this
bill
originated
in
the
Senate
and
is
known
as
Senate
File
2328,
Eighty-fifth
General
Assembly.
______________________________
MICHAEL
E.
MARSHALL
Secretary
of
the
Senate
Approved
_______________,
2014
______________________________
TERRY
E.
BRANSTAD
Governor