Executive Order 10

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| Fixe ecutitiy Mep arhuent

fi THE NAME AND By THE AutHority of THE Stare oF lowa

BXECUTTVE ORDER NUMBER TEN

WHEREAS, on October 21, 1983, the Ways and Means Committee of the United States House o£ Representatives reported out o€ committee HR 4179, the Tax Reform Act o£ LY¥Y83 (the “Tax Reform Act");

WHEREAS , on November 16, 1983, the Ways and Means Committee o€ the United States House of Representatives reported out o€ committee certain amendments to the Tax Reform Ack (the Tax Reform Act, as reported out of the Ways and Means Committee and as so amended or as it may be amended in the €uture is hereafter referred to as "HR 4179");

WHEREAS, Section 721 o€ HR 4170 would restrict the total principal amount of certain municipal bonds the interest on which is exempt from federal income taxes under Section 103 o€ the {Internal Revenue Code of 1954, as amended (the "Bonds"), which may be issued by any state of the United States during each calendar year;

WHEREAS, the provisions o€ Section 72L o£ HR 4170, if enacted into law in either present form, would be effective retroactively on January 1, 1984;

WHEREAS , Section 721 of HR 4170 provides a method of allocating the total amount of Bonds which may be issued within a state in any calendar year among the various cities, counties and issuing ayencies and authorities of the state (collectively the "Political subdivisions" or ‘singularly the "Political Subdivision"), which method of allocation will become effective at the time WR 4170 is enacked into law and will apply retroactively unless the legislature of a state oe the Governor of a state, on an interim hasis, provides for an alternative method of allocating the total amount of Bonds which may be issued within the state in this calendar year;

WHEREAS, the Governor of the State o€ Iowa recoynizes that the provisions of Section 72l of HR 4170 place unne sacy, cumbersome and costly restric+ tions on the amount o£ HKonds which may be issued by the Polikicat subdivisions o€ the State of Towa during this calendar year;

WHEREAS, the Governor o£ the Stake of Lowa Further recognizes that the provision of Section 721 o€ HR 4170 for allocating, among the Political Subdivisions o€ the State o€ Lowa, the amount n€ Bonds which may be issued within the State of Iowa during each calendar year is inequitable and would result in a decrease in the amount o€

a COURTESY STATE LIBRARY OF IOWA

industrial, agricultural and commercial development within the State of Iowa and would result ina decrease in the amount of financiny available

for pollution control facilities and health care facilities, and would potentially decrease the amount o€ financial aid, provided to the students

o£€ the State of Iowa;

WHEREAS, the e£tect of the proposed January 1, 1984 retroactive effective date of HR 4170 has heen to curtail the issuance of Bonds until such time as HR 4170 is defeated;

WHEREAS, in accordance with the provisions 9£€ Section 721 o€ HR 4170 and to permit the issuance of fonds within the State of Iowa during the period while HR 4170 is pending in the United States Conyress, the Governor o£ the State nf Lowa deams the best interest of the citizens of the State of Lowa to be served by an executive order that will permit, on an interim basis only, an orderly and equitable allocation of the amount of fonds which can be issued by Political Subdivisions of the State of Iowa during the calendar year 1984 or until such time as HR 4170 is defeated or is no longer pending, or the legislature of the State of Iowa enacts an alternate allocation method,

NOW, THEREFORE, I, Terry &. Branstad, Governor of the State of Iowa, by the power and authority vested in me by the Constitution and by the laws of the State o€ Iowa, do hereby order and decree that the following procedure be used to allocate the total principal amount o£ Bonds which can be issued by Political Subdivisions of the State of Inwa during the calendar year 1984 or until such time as HR 4170 is defeated or is no lonyer pending, or the legislature of the State of Lowa enacts an alternate allocation method, it being fully undecstood that the procedure ordered hereby is for the purpose o€ promoting commerce, including industrial, agricultural and commercial development within the State of Lowa, controlling pollution o€ the air or water, creating and improving health care facilities and insuring the availability of Einancial aid to students of the State of [owa, on an interim basis only, and is not intended to be a permanent solution to or acceptance of the unnecessary, cumbersome and costly provisions contained in Section 721 o€ HR 4170:

Section 1. The agyregate amount o€ Bonds which may be Issued collectively by all of the Political Subdivisions of the State of Iowa during the calendar year 1984, or until such time as HR 4179 is defeated or is no longer pending, shall not exceed the total amount of Bonds allocatad to

the State of Lowa by HR 4170 (the “Ceiling").

Section 2. The "Ceiling" shall be allocated among the Political Subdivisions of the State o& Iowa on the basis of the chronoloyical order o€ receipt Erom a Political Subdivision of the application described in Section 3 of this Rxecutive Order.

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Section 3. A Political Subdivision of the State Of Towa which proposes to issue Bonds for a specific project or purpose must make application for an allocation of a portion of the Ceiling

for the particular project or purpose by submitting an application (in the form prescribed and approved by the Governof, or his designee) to

the Governor, or his designee, which contains, where appropriate, the followiny information:

(a) The name and address of the Political Subdivision and the name of the elected chief executive officer of the Political Subdivision;

(bo) The name and location (by mailing address or other definitive description) o£ the project for which an allocation o€ the Ceiling is requested and the name and mailing address o€ both the initial owner or operator of the project and an appropriate person from whom information regarding the project can be obtained;

(c) The date o€ adoption by the yoverniny body o£ the Political Subdivision of an inducement resolution adopted for the purpose o€ taking “official action", as required by the Treasury Regulations relating to Section 103 0€ the Internal Revenue Code of 1954, as amended (the "Code"), if the issue o£ Bonds for which the allocation of the Ceiling is requested requires the takiny of "“ofEicial ackhion" under the Code; and

(d) The amount o€ the Ceiling which the Political Subdivision is requesting be allocated for the project oc purpose subject to the application,

Section 4. Upon receipt of the completed application required by Section 3 hereof, the Governor, or his designee, shall immediately notify the Political Subdivision of the allocation “of the Ceiling to be applied to the project or purpose requested in the Political Subdivision's application. The allocation of the Ceiling will remain valid foc 90 days from the dake notice o€ the allocation is mailed to the Political Subdivision unless either of the following conditions have occurred:

(a) The Bonds are issued and delivered within the 90 day period in which event the allocation will be debited against the Ceiling on the date o€ issuance and delivery o€ the Bonds; or

(b) Evidence of an agreement to purchase the Bonds is obtained Erom an entity with the legal ability to so purchase and is Eiled with the Governor, oc his‘desiynee, in which event the allocation will be extended for an additional 30 days beyond the date 9E€ expiration of the 90 day period. In the event the Bonds are not issued and delivered within the additional 30 day period, the allocation of the Ceiling will expire at the close of business on the 30th day.

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In the event the allocation of the Ceiling expires as provided in Section 4 of this Executive Order, the Political Subdivision may resumbit its application for an allocation of a portion of the Ceiling for a specifie project or purpose and the application of the Political Subdivision relating to the project or purpose will he reviewed in chronological order of receipt with no preference or priority being given to the Political Subdivision as a result of its prior application for the same project or purpose. :

Section 6. In the event the Last day of either the 90 day period or the 30 day period described in Section 4 hereof is a Saturday, Sunday or any day on which offices o£ the State of Iowa,. banking institutions or savings and loan associations in the State of Iowa are authorized orc required to close, then the time for expiration of either the 90 day period or the 30 day period shall he extended to the first day thereafter which is not: a Saturday, Sunday or any of the previously described days.

Section 7. The Governor reserves the right to modify the allocation method set forth in Section 2 of this Order to comply with any provisions o£ HR 4170, which require that certain projects orc purposes be given priority over other projects or purposes in the allocation of the Ceiling.

IN TES'TUMONY WHEREOF, IT have hereunto subscribed my name and caused the Great Seal of the State o£ Iowa to be affixed. Done at Nes Moines this QJ _ day of March in the year of

our Lord one thousand nine hundred and eighty-four.

“GOyERNOR

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