House File 920 - Enrolled PAG LIN 1 1 HOUSE FILE 920 1 2 1 3 AN ACT 1 4 AUTHORIZING THE STATE BOARD OF REGENTS TO BORROW MONEYS AND 1 5 ISSUE REVENUE BONDS TO FINANCE THE COSTS OF CERTAIN BUILDING 1 6 AND FACILITY IMPROVEMENT PROGRAMS. 1 7 1 8 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 1 9 1 10 Section 1. STATE BOARD OF REGENTS BONDING. 1 11 1. FINDINGS. The general assembly finds that: 1 12 a. The state board of regents has approved a buildings and 1 13 facilities improvement program for the institutions of higher 1 14 learning under the jurisdiction of the board, which the board 1 15 deems necessary to further the educational objectives of the 1 16 institutions, together with an estimate of the cost of each of 1 17 the buildings and facilities. 1 18 b. The projects contained in the buildings and facilities 1 19 improvement program are deemed necessary for the proper 1 20 performance of the instructional, research, and service 1 21 functions of the institutions. 1 22 c. Section 262A.4 provides that the state board of 1 23 regents, after authorization by a constitutional majority of 1 24 each house of the general assembly and approval by the 1 25 governor, may undertake and carry out at the institutions of 1 26 higher learning under the jurisdiction of the board any 1 27 project as defined in chapter 262A. 1 28 d. Chapter 262A authorizes the state board of regents to 1 29 borrow moneys and to issue and sell negotiable revenue bonds 1 30 to pay all or any part of the cost of carrying out projects at 1 31 any institution payable solely from and secured by an 1 32 irrevocable pledge of a sufficient portion of the student fees 1 33 and charges and institutional income received by the 1 34 particular institution. 1 35 e. To further the educational objectives of the 2 1 institutions, the state board of regents requests 2 2 authorization to finance certain costs of the capital 2 3 improvement program by borrowing moneys and issuing negotiable 2 4 bonds under chapter 262A in a total amount as provided in this 2 5 section, with the remaining costs of the projects to be 2 6 financed by appropriations or by federal or other funds 2 7 lawfully available. 2 8 2. AUTHORIZATION OF PROJECTS. The state board of regents 2 9 is authorized to undertake, plan, construct, improve, repair, 2 10 remodel, furnish, and equip, and otherwise carry out the 2 11 following projects at the institutions of higher learning 2 12 under the jurisdiction of the board at a cost not to exceed 2 13 the following amounts: 2 14 a. State university of Iowa: 2 15 .................................................. $ 35,900,000 2 16 Of the amount authorized in this lettered paragraph, 2 17 $18,700,000 shall be allocated to the college of public health 2 18 academic building. 2 19 Of the amount authorized in this lettered paragraph, 2 20 $4,200,000 shall be allocated to the renovation of the old 2 21 music building. 2 22 Of the amount authorized in this lettered paragraph, 2 23 $13,000,000 shall be allocated for renewal and HVAC 2 24 modernization of the pentacrest. 2 25 Any balance remaining in a project fund after a project is 2 26 completed may be expended for fire and environmental safety, 2 27 deferred maintenance, or campus security improvements at the 2 28 buildings and facilities of the institution as deemed 2 29 necessary by the state board of regents. 2 30 b. Iowa state university of science and technology: 2 31 For chemistry building facilities: 2 32 .................................................. $ 53,900,000 2 33 Any balance remaining in the project fund after the project 2 34 is completed may be expended for fire and environmental 2 35 safety, deferred maintenance, or campus security improvements 3 1 at the buildings and facilities of the institution as deemed 3 2 necessary by the state board of regents. 3 3 c. University of northern Iowa: 3 4 .................................................. $ 17,600,000 3 5 Of the amount authorized in this lettered paragraph, 3 6 $5,800,000 shall be allocated for phase II of the electrical 3 7 distribution loop system load break. 3 8 Of the amount authorized in this lettered paragraph, 3 9 $11,800,000 shall be allocated for the renovation of Sabin 3 10 hall. 3 11 Any balance remaining in a project fund after a project is 3 12 completed may be expended for fire and environmental safety, 3 13 deferred maintenance, or campus security improvements at the 3 14 buildings and facilities of the institution as deemed 3 15 necessary by the state board of regents. 3 16 d. For fire and environmental safety, deferred 3 17 maintenance, and campus security improvements at buildings and 3 18 facilities of the universities as deemed necessary by the 3 19 state board of regents: 3 20 .................................................. $ 24,000,000 3 21 3. AUTHORIZATION OF BORROWING AND BONDING. 3 22 a. The general assembly authorizes the state board of 3 23 regents to borrow moneys and to issue and sell negotiable 3 24 revenue bonds in the amount of $131,400,000 in the manner 3 25 provided in sections 262A.5 and 262A.6 in order to pay all or 3 26 any part of the costs of carrying out the projects at the 3 27 institutions approved and authorized in subsection 2, with the 3 28 remaining costs of the projects to be financed by 3 29 appropriations or by federal or other funds lawfully 3 30 available. The amount of bonds may be exceeded by the amount 3 31 the state board of regents determines to be necessary to 3 32 capitalize bond reserves, interest during construction, and 3 33 issuance costs. No commitment is implied or intended by 3 34 approval to fund any portion of the buildings and facilities 3 35 improvement program beyond the portion that is financed and 4 1 approved by the Eighty=second General Assembly, 2007 Session, 4 2 and the governor. 4 3 b. In light of this bonding authorization, the state board 4 4 of regents shall not request additional state capital funding 4 5 for its universities for new academic buildings through the 4 6 fiscal year ending June 30, 2013. Capital projects already 4 7 receiving some state dollars, new infrastructure projects 4 8 resulting from economic development initiatives, completion of 4 9 phase II of the college of veterinary medicine project at Iowa 4 10 state university of science and technology, and projects for 4 11 deferred maintenance, fire safety, or campus security 4 12 improvements are excluded from this funding restriction. 4 13 4 14 4 15 4 16 PATRICK J. MURPHY 4 17 Speaker of the House 4 18 4 19 4 20 4 21 JOHN P. KIBBIE 4 22 President of the Senate 4 23 4 24 I hereby certify that this bill originated in the House and 4 25 is known as House File 920, Eighty=second General Assembly. 4 26 4 27 4 28 4 29 MARK BRANDSGARD 4 30 Chief Clerk of the House 4 31 Approved , 2007 4 32 4 33 4 34 4 35 CHESTER J. CULVER 5 1 Governor