Bill Text: IA HF2182 | 2011-2012 | 84th General Assembly | Introduced
Bill Title: A bill for an act establishing the sales tax rebate for county development program and making penalties applicable.
Spectrum: Partisan Bill (Republican 2-0)
Status: (Introduced - Dead) 2012-02-27 - Subcommittee, Helland, Muhlbauer, and Sands. H.J. 338. [HF2182 Detail]
Download: Iowa-2011-HF2182-Introduced.html
House
File
2182
-
Introduced
HOUSE
FILE
2182
BY
ANDERSON
and
DOLECHECK
A
BILL
FOR
An
Act
establishing
the
sales
tax
rebate
for
county
development
1
program
and
making
penalties
applicable.
2
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
3
TLSB
5041HH
(6)
84
mm/sc
H.F.
2182
DIVISION
I
1
SALES
TAX
REBATE
FOR
COUNTY
DEVELOPMENT
PROGRAM
2
Section
1.
NEW
SECTION
.
15E.370
Short
title.
3
This
division
shall
be
known
and
may
be
cited
as
the
“Sales
4
Tax
Rebate
for
County
Development
Program
Act”
.
5
Sec.
2.
NEW
SECTION
.
15E.371
Definitions.
6
For
purposes
of
this
division,
unless
the
context
otherwise
7
requires:
8
1.
“Base
employment
level”
means
the
number
of
full-time
9
equivalent
positions
at
a
business,
as
established
by
the
10
authority
and
a
business
using
the
business’s
payroll
records,
11
as
of
the
date
a
business
applies
for
a
financial
assistance
12
award
under
the
program.
13
2.
“Base
year”
means
the
fiscal
year
immediately
preceding
14
the
year
in
which
an
application
is
made
for
participation
in
15
the
sales
tax
rebate
for
county
development
program.
16
3.
“Created
job”
or
“job
created”
means
a
new,
permanent,
17
full-time
equivalent
position
added
to
a
business’s
payroll
in
18
excess
of
the
business’s
base
employment
level.
19
4.
“Economic
development
entity”
means
a
county
board
20
of
supervisors,
city
council,
or
not-for-profit
business
21
association
vested
by
a
board
of
supervisors
or
city
council
22
with
the
power
to
represent
a
particular
city
or
unincorporated
23
area
of
a
county
under
the
program
including
but
not
limited
24
to
an
area
chamber
of
commerce.
25
5.
“Economic
development
project”
means
a
project
involving
26
private
or
joint
public
and
private
investment
involving
the
27
creation
of
new
jobs
and
income
or
the
retention
of
existing
28
jobs
and
income.
An
economic
development
project
includes
a
29
physical
infrastructure
project
so
long
as
it
is
undertaken
30
with
the
specific
intent
to
create,
attract,
or
retain
jobs
and
31
income.
32
6.
“Financial
assistance
award”
means
assistance
provided
33
only
from
the
special
fund
of
a
county
established
pursuant
to
34
section
15E.373,
subsection
1,
and
includes
but
is
not
limited
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to
assistance
in
the
form
of
grants,
loans,
forgivable
loans,
1
and
royalty
payments.
2
7.
“Full-time
equivalent
position”
means
a
non-part-time
3
position
for
the
number
of
hours
or
days
per
week
considered
4
to
be
full-time
work
for
the
kind
of
service
or
work
performed
5
for
an
employer.
Typically,
a
full-time
equivalent
position
6
requires
two
thousand
eighty
hours
of
work
in
a
calendar
year,
7
including
all
paid
holidays,
vacations,
sick
time,
and
other
8
paid
leave.
9
8.
“Maintenance
period”
means
the
period
of
time
between
the
10
project
completion
date
and
maintenance
period
completion
date.
11
9.
“Maintenance
period
completion
date”
means
the
date
on
12
which
the
maintenance
period
ends.
13
10.
“Physical
infrastructure
project”
means
a
project
14
that
creates
necessary
infrastructure
for
economic
success
15
throughout
Iowa,
provides
the
foundation
for
the
creation
of
16
jobs,
and
that
involves
the
investment
of
a
substantial
amount
17
of
capital.
Physical
infrastructure
projects
include
but
are
18
not
limited
to
projects
involving
any
mode
of
transportation;
19
public
works
and
utilities
such
as
sewer,
water,
power,
or
20
telecommunications;
physical
improvements
that
mitigate,
21
prevent,
or
eliminate
environmental
contamination;
and
other
22
similar
projects
deemed
to
be
physical
infrastructure
by
the
23
authority.
24
11.
“Program”
means
the
sales
tax
rebate
for
county
25
development
program.
26
12.
“Program
application”
means
an
application
by
a
county
27
to
participate
in
the
sales
tax
rebate
for
county
development
28
program.
29
13.
“Program
year”
means
the
fiscal
year
beginning
July
30
1,
2012,
and
every
fiscal
year
thereafter
during
which
31
the
authority
administers
the
sales
tax
rebate
for
county
32
development
program.
33
14.
“Project
completion
date”
means
the
date
by
which
a
34
recipient
of
a
financial
assistance
award
has
agreed
to
meet
35
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2182
all
the
terms
and
obligations
contained
in
an
agreement
with
1
the
authority
as
described
in
section
15E.373,
subsection
6,
2
paragraph
“a”
.
3
15.
“Retained
job”
means
a
full-time
equivalent
position
4
in
existence
at
the
time
an
employer
applies
for
financial
5
assistance
which
remains
continuously
filled
or
authorized
6
to
be
filled
as
soon
as
possible
and
which
is
at
risk
of
7
elimination
if
the
project
for
which
the
employer
is
seeking
8
assistance
does
not
proceed.
9
Sec.
3.
NEW
SECTION
.
15E.372
Sales
tax
rebate
for
county
10
development
program
——
establishment
and
application.
11
1.
The
authority
shall
establish
and
administer
a
sales
12
tax
rebate
for
county
development
program
to
provide
counties
13
participating
in
the
program
with
a
one-time,
limited
rebate
14
of
sales
tax
imposed
and
collected
by
retailers
upon
sales
of
15
tangible
personal
property
or
services
furnished
to
purchasers
16
within
the
county.
The
rebate
shall
be
used
to
provide
17
financial
assistance
awards
to
local
economic
development
18
projects
pursuant
to
this
division.
19
2.
a.
A
county
board
of
supervisors
may
make
application
20
to
the
authority
for
participation
in
the
program.
Program
21
applications
shall
be
received
by
November
30,
2012,
to
be
22
eligible
for
consideration
in
the
first
year
of
the
program,
23
and
by
November
30
for
every
year
thereafter.
24
b.
Program
applications
shall
be
made
in
the
manner
and
form
25
prescribed
by
the
authority
and
shall
contain,
at
a
minimum,
26
the
following
information:
27
(1)
The
identity
of
the
economic
development
entity
located
28
in
the
county
that
is
designated
as
eligible
to
apply
for
29
financial
assistance
awards
under
the
program.
30
(a)
A
city
council
shall
designate
one
economic
development
31
entity
to
represent
it
under
the
program.
32
(b)
A
county
board
of
supervisors
shall
designate
one
33
economic
development
entity
to
represent
the
unincorporated
34
areas
of
the
county
under
the
program.
35
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2182
(c)
An
economic
development
entity
may
represent
more
1
than
one
city
or
unincorporated
area
within
a
county
under
2
the
program,
but
no
city
or
unincorporated
area
shall
be
3
represented
by
more
than
one
economic
development
entity.
4
(2)
Sufficient
information
to
enable
the
authority
to
make
5
selections
based
on
the
criteria
provided
in
subsection
3,
6
paragraphs
“a”
through
“d”
.
7
3.
After
receiving
the
timely
filed
program
applications
8
for
a
program
year,
the
authority
may,
within
sixty
days,
9
select
no
more
than
ten
counties
to
participate
in
the
program.
10
In
making
selection
decisions,
the
authority
shall
consider
11
all
information
contained
in
a
program
application,
as
well
12
as
any
other
relevant
information
and
economic
data,
giving
13
priority
to
counties
demonstrating
the
greatest
economic
14
development
need
and
the
greatest
potential
for
economic
growth
15
and
expansion,
and
giving
considerable
weight
to
the
following:
16
a.
A
recent
business
closure
or
permanent
layoff
that
17
has,
or
may
have,
a
significant
negative
economic
impact
in
18
the
county.
For
purposes
of
this
paragraph,
“recent
business
19
closure
or
permanent
layoff”
means
the
loss
of
full-time
20
employees,
not
including
retail
employees,
at
one
or
more
21
places
or
businesses
within
the
county.
To
qualify
as
a
loss
22
of
a
full-time
employee,
the
loss
must
occur
because
of
the
23
removal
of
the
job
to
an
out-of-state
location,
the
cessation
24
of
one
or
more
production
lines,
the
removal
of
manufacturing
25
machinery
and
equipment,
or
similar
actions
determined
to
be
26
equivalent
in
nature
by
the
authority.
Loss
of
full-time
27
employees
does
not
include
a
layoff
of
seasonal
employees
or
a
28
layoff
that
is
seasonal
in
nature.
29
b.
A
potential
economic
development
project
that
exists
or
30
may
exist
within
a
county.
31
c.
An
unemployment
rate
for
a
county
that
is
greater
than
32
the
state
average
rate
of
unemployment.
33
d.
A
loss
of
population
in
a
county
as
shown
by
the
2010
34
certified
federal
census
when
compared
with
the
2000
certified
35
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federal
census.
1
4.
A
county
chosen
by
the
authority
for
participation
2
in
the
program
that
receives
a
sales
tax
rebate
pursuant
to
3
section
423.4,
subsection
10,
paragraph
“b”
,
subparagraph
(3),
4
is
ineligible
to
submit
another
program
application
to
the
5
authority
for
participation
in
the
program.
6
5.
a.
If
a
member
of
the
governing
body
of
a
city
or
county
7
or
an
employee
of
a
state,
city,
or
county
board,
agency,
8
commission,
or
other
governmental
entity
of
the
state,
city,
or
9
county
involved
in
this
program
has
an
interest,
either
direct
10
or
indirect,
in
a
private
person,
contract,
or
entity
for
11
which
financial
assistance
may
be
provided
under
this
program,
12
the
interest
shall
be
disclosed
to
that
governing
body
or
13
governmental
entity,
and
the
authority,
in
writing.
The
member
14
or
employee
having
the
interest
shall
not
participate
in
the
15
decision-making
process
with
regard
to
the
providing
of
such
16
financial
assistance
to
the
private
person
or
entity.
17
b.
Employment
by
a
governmental
entity,
public
body,
its
18
agencies
or
institutions,
or
by
any
other
person
having
such
19
an
interest
shall
not
be
deemed
an
indicia
of
an
interest
by
20
the
employee
or
of
any
ownership
or
control
by
the
employee
of
21
interests
of
the
employee’s
employer.
22
c.
The
word
“participate”
or
“participation”
shall
be
deemed
23
not
to
include
discussion
or
debate
preliminary
to
a
vote
of
a
24
governmental
entity,
local
governing
body,
or
local
agency
upon
25
proposed
ordinances
or
resolutions
relating
to
such
a
project
26
or
any
abstention
from
such
a
vote.
27
d.
The
designation
of
a
bank
or
trust
company
as
depository,
28
paying
agent,
or
agent
for
investment
of
funds
shall
not
be
29
deemed
a
matter
of
interest
or
personal
interest.
30
e.
Stock
ownership
in
a
corporation,
or
other
equity
31
interest
in
a
business,
having
such
an
interest
shall
not
be
32
deemed
an
indicia
of
an
interest
or
of
ownership
or
control
by
33
the
person
owning
the
stock
or
equity
interest
when
less
than
34
five
percent
of
the
outstanding
stock
or
equity
interest
of
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the
corporation
or
business
is
owned
or
controlled
directly
or
1
indirectly
by
that
person.
2
f.
A
violation
of
a
provision
of
this
subsection
is
3
misconduct
in
office
under
section
721.2.
However,
a
decision
4
of
the
governing
board
or
governmental
entity
is
not
invalid
5
because
of
the
participation
of
the
member
or
employee
in
6
the
decision-making
process
or
because
of
a
vote
cast
by
a
7
member
or
employee
in
violation
of
this
subsection
unless
the
8
participation
or
vote
was
decisive
in
the
awarding
of
the
9
financial
assistance.
10
g.
For
purposes
of
this
subsection,
any
private
11
not-for-profit
economic
development
entity
representing
a
city
12
or
county
under
the
program
shall
be
considered
a
governmental
13
entity
subject
to
the
conflict
of
interest
provisions
in
this
14
subsection.
15
6.
The
authority
shall
notify
the
department
of
revenue
16
of
each
county
chosen
for
participation
in
the
program.
The
17
department
of
revenue
shall
credit
the
sales
tax
receipts
as
18
calculated
in
section
423.4,
subsection
10,
paragraph
“b”
,
19
subparagraph
(3),
to
the
county’s
account
in
the
special
fund
20
created
under
section
15E.373.
21
Sec.
4.
NEW
SECTION
.
15E.373
Special
fund
administration
——
22
appropriation
and
allocation
of
rebate
moneys.
23
1.
The
authority
shall
create
a
special
fund,
and
within
24
that
fund
create
a
separate
account
for
each
county
chosen
for
25
participation
in
the
program.
The
fund
shall
consist
only
26
of
amounts
credited
by
the
department
of
revenue
pursuant
to
27
section
423.4,
subsection
10,
paragraph
“b”
,
subparagraph
28
(3).
The
special
fund
shall
be
administered,
allocated,
and
29
distributed
only
as
provided
in
this
section.
30
2.
Interest
or
earnings
on
moneys
in
a
special
fund
shall
31
revert
to
the
general
fund.
32
3.
All
moneys
remaining
in
a
special
fund
after
five
years
33
from
the
date
the
credit
is
made
shall
revert
to
the
general
34
fund.
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4.
An
economic
development
entity
designated
in
the
1
program
application
of
a
participating
county
may
apply
to
the
2
authority
for
a
financial
assistance
award
from
the
county’s
3
account
in
the
special
fund,
to
be
used
for
the
purpose
of
an
4
economic
development
project.
5
a.
Applications
shall
be
made
in
the
manner
and
form
6
prescribed
by
the
authority
and
shall
contain,
at
a
minimum,
7
the
following
information:
8
(1)
The
amount
requested
and
a
detailed
description
of
9
how
the
moneys
will
be
used
including
but
not
limited
to
a
10
description
and
purpose
of
the
proposed
economic
development
11
project.
12
(2)
The
goal
of
the
proposed
economic
development
project,
13
including
the
projected
jobs
and
income
created
or
retained.
14
(3)
The
projected
source,
type,
and
amount
of
any
private
15
capital
or
other
investment
involved
with
the
proposed
economic
16
development
project.
The
authority
shall
not
require
any
17
economic
development
entity,
county,
or
city
to
provide,
or
18
demonstrate
an
ability
to
provide,
local
matching
moneys
19
in
order
to
receive
a
financial
assistance
award
under
the
20
program.
21
(4)
A
list
of
all
public
and
private
parties
involved
with
22
the
proposed
economic
development
project.
23
b.
If
upon
review
of
an
application
for
a
financial
24
assistance
award,
the
authority
finds
that
the
proposed
25
economic
development
project
meets
the
definition
of
an
26
economic
development
project
in
section
15E.371,
subsection
5,
27
the
authority
and
the
recipient
of
the
financial
assistance
28
award
shall
enter
into
an
agreement
pursuant
to
subsection
6.
29
5.
a.
For
each
city
and
unincorporated
area
within
a
30
county,
the
aggregate
financial
assistance
awards
paid
from
the
31
county’s
account
in
the
special
fund
for
economic
development
32
projects
shall
not
exceed
an
amount
which
is
equal
to
the
33
lesser
of
the
following:
34
(1)
The
state
sales
tax
imposed
and
collected
within
that
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city
or
unincorporated
area
for
the
base
year,
as
calculated
in
1
section
423.4,
subsection
10,
paragraph
“b”
,
subparagraph
(2).
2
(2)
An
amount
equal
to
the
same
proportion
of
the
credit
3
made
pursuant
to
section
423.4,
subsection
10,
paragraph
“b”
,
4
subparagraph
(3),
as
the
amount
of
state
sales
tax
imposed
and
5
collected
in
the
city
or
unincorporated
area
for
the
base
year,
6
as
calculated
in
section
423.4,
subsection
10,
paragraph
“b”
,
7
subparagraph
(2),
bears
to
the
total
amount
of
state
sales
8
tax
imposed
and
collected
in
the
county
for
the
base
year,
as
9
calculated
in
section
423.4,
subsection
10,
paragraph
“b”
,
10
subparagraph
(1).
11
b.
Notwithstanding
paragraph
“a”
,
the
governing
body
of
12
an
economic
development
entity
may
elect
to
allocate
all
or
13
a
portion
of
its
share
of
moneys
in
the
special
fund
to
a
14
different
city
or
unincorporated
area
within
the
same
county
15
if
the
economic
development
entity
determines
all
of
the
16
following:
17
(1)
That
a
viable
proposal
for
an
economic
development
18
project
does
not
currently
exist
within
the
allocating
city
19
or
unincorporated
area,
and
it
is
unlikely
that
one
will
be
20
developed
before
the
expiration
of
the
five-year
period
set
21
forth
in
subsection
3.
22
(2)
That
the
proposed
economic
development
project
to
23
which
it
wishes
to
allocate
all
or
a
portion
of
its
share
of
24
moneys
in
the
special
fund
will
directly
and
materially
benefit
25
the
allocating
city
or
unincorporated
area.
For
purposes
of
26
this
subparagraph,
“directly
and
materially
benefit”
means
27
an
increase
in
jobs,
population,
or
tax
revenue
within
the
28
allocating
city
or
unincorporated
area.
29
6.
The
authority
and
the
recipient
of
the
financial
30
assistance
shall
enter
into
an
agreement
describing
the
terms
31
and
obligations
under
which
the
financial
assistance
will
be
32
provided.
The
authority,
in
consultation
with
the
applicable
33
economic
development
entity,
may
negotiate
the
terms
and
34
obligations
of
the
agreement.
An
agreement
shall
contain
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but
need
not
be
limited
to
all
of
the
following
terms
and
1
obligations:
2
a.
A
project
completion
date.
3
b.
A
maintenance
period
completion
date.
4
c.
The
number
of
jobs
to
be
created
or
retained.
5
d.
The
amount
of
private
capital
or
other
investment
to
be
6
involved.
7
e.
The
amount
of
the
financial
assistance
award
to
be
8
provided
under
the
program.
9
7.
The
authority
may
enforce
the
terms
and
obligations
of
10
agreements
described
in
subsection
6.
11
8.
A
recipient
of
a
financial
assistance
award
shall
meet
12
all
terms
and
obligations
in
an
agreement
by
the
project
13
completion
date,
but
the
authority
may
for
good
cause
extend
14
the
project
completion
date.
15
9.
During
the
maintenance
period,
a
recipient
of
a
financial
16
assistance
award
shall
continue
to
comply
with
the
terms
and
17
obligations
of
an
agreement
entered
into
pursuant
to
subsection
18
6.
19
10.
During
the
entire
life
of
an
agreement
entered
into
20
pursuant
to
subsection
6,
if
the
recipient
of
a
financial
21
assistance
award
fails
to
meet
all
terms
and
obligations
in
22
its
agreement
or
experiences
a
layoff
within
this
state
or
23
closes
any
of
its
facilities
within
this
state,
the
authority
24
may
reduce
or
eliminate
some
or
all
of
the
amount
of
financial
25
assistance
award
to
be
received.
If
the
recipient
of
a
26
financial
assistance
award
under
this
section
fails
to
meet
27
all
terms
and
obligations
in
its
agreement
or
experiences
a
28
layoff
within
this
state
or
closes
any
of
its
facilities
within
29
this
state,
the
recipient
may
be
subject
to
repayment
of
all
or
30
a
portion
of
the
financial
assistance
award
it
has
received.
31
Any
amount
repaid
to
the
authority
under
this
subsection
shall
32
revert
to
the
general
fund.
33
11.
In
addition
to
the
terms
and
obligations
agreed
34
to
pursuant
to
subsection
6,
the
recipient
of
a
financial
35
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assistance
award
shall
be
subject
to
all
of
the
following
1
requirements:
2
a.
The
potential
recipient
of
a
financial
assistance
3
award
shall
submit
to
the
authority
a
report
describing
all
4
violations
of
environmental
law
or
worker
safety
law
within
5
the
last
five
years
by
the
private
parties
involved
in
the
6
proposed
economic
development
project.
If,
upon
review
of
the
7
report,
the
authority
finds
that
a
private
party
has
a
record
8
of
violations
of
the
law,
statutes,
rules,
or
regulations
that
9
tends
to
show
a
consistent
pattern,
the
authority
shall
not
10
make
an
award
of
financial
assistance
to
the
project
unless
the
11
authority
finds
either
that
the
violations
did
not
seriously
12
affect
public
health,
public
safety,
or
the
environment,
or,
13
if
such
violations
did
seriously
affect
public
health,
public
14
safety,
or
the
environment,
that
mitigating
circumstances
were
15
present.
16
b.
The
recipient
of
a
financial
assistance
award
shall
not
17
have
closed,
or
substantially
reduced,
operations
in
one
area
18
of
this
state
and
relocated
substantially
the
same
operations
19
in
a
community
in
another
area
of
this
state.
However,
this
20
section
shall
not
be
construed
to
prohibit
the
recipient
of
a
21
financial
assistance
award
from
expanding
its
operation
in
a
22
community
if
existing
operations
of
a
similar
nature
in
this
23
state
are
not
closed
or
substantially
reduced.
24
c.
The
recipient
of
a
financial
assistance
award
shall
only
25
employ
individuals
legally
authorized
to
work
in
this
state.
26
In
addition
to
any
and
all
other
applicable
penalties
provided
27
by
current
law,
all
or
a
portion
of
the
financial
assistance
28
award
is
subject
to
recapture
by
the
authority
if
the
recipient
29
is
found
to
knowingly
employ
individuals
not
legally
authorized
30
to
work
in
this
state.
Any
amount
repaid
to
the
authority
31
under
this
paragraph
shall
revert
to
the
general
fund.
32
12.
Funds
and
financial
assistance
awards
issued
by
33
the
authority
under
this
program
to
any
party
shall
not
be
34
deposited
in
the
general
fund
of
any
economic
development
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entity,
county,
or
city,
nor
used
for
any
of
the
following
1
purposes:
2
a.
Salaries
or
bonuses
of
any
person
employed
by
an
economic
3
development
entity,
county,
or
city.
4
b.
Consultant
fees.
5
c.
Marketing
fees.
6
d.
Operating
expenses
of
an
economic
development
entity,
7
county,
or
city.
8
13.
The
authority
shall
adopt
rules
for
the
administration
9
of
this
division
in
accordance
with
chapter
17A.
To
the
extent
10
necessary,
the
rules
shall
provide
for
the
inclusion
of
uniform
11
terms
and
obligations
in
agreements
between
the
authority
12
and
the
recipients
of
financial
assistance
awards
under
the
13
program.
14
DIVISION
II
15
CALCULATION
AND
ISSUANCE
OF
SALES
TAX
REBATE
16
Sec.
5.
Section
423.4,
Code
Supplement
2011,
is
amended
by
17
adding
the
following
new
subsection:
18
NEW
SUBSECTION
.
10.
a.
For
purposes
of
this
subsection:
19
(1)
“Authority”
means
the
economic
development
authority
20
created
in
section
15.105.
21
(2)
“Base
year”
means
the
same
as
defined
in
section
22
15E.371.
23
(3)
“Program”
means
the
sales
tax
rebate
for
county
24
development
program
in
chapter
15E,
division
XXVII.
25
(4)
“Program
application”
means
an
application
by
a
county
26
to
participate
in
the
sales
tax
rebate
for
county
development
27
program
in
chapter
15E,
division
XXVII.
28
(5)
“Program
year”
means
the
same
as
defined
in
section
29
15E.371.
30
(6)
“State
sales
tax”
means
sales
tax
imposed
in
section
31
423.2,
and
shall
not
exceed
an
amount
equal
to
five
percent
of
32
the
sales
price
of
the
tangible
personal
property
or
services
33
furnished
to
purchasers.
“State
sales
tax”
does
not
include
34
any
local
option
sales
and
service
taxes
imposed
pursuant
to
35
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chapter
423B.
1
b.
The
department
shall
assist
in
the
administration
of
the
2
sales
tax
rebate
for
county
development
program
in
chapter
15E,
3
division
XXVII,
and
issue
rebates
of
state
sales
tax
imposed
4
and
collected
by
retailers
upon
sales
of
tangible
personal
5
property
or
services
furnished
to
purchasers
within
a
county
in
6
the
following
manner
and
amounts:
7
(1)
Upon
notice
by
the
authority
of
its
applications
for
8
a
program
year
pursuant
to
section
15E.372,
subsection
4,
the
9
department
shall
calculate
the
total
state
sales
tax
imposed
10
and
collected
by
retailers
upon
sales
of
tangible
personal
11
property
or
services
furnished
to
purchasers
in
each
applicant
12
county
for
the
base
year
of
the
program
application
and
provide
13
that
information
to
the
authority
on
or
before
December
31
of
14
the
program
year.
15
(2)
Upon
notice
by
the
authority
of
its
selection
of
a
16
county
for
participation
in
the
program,
the
department
shall
17
calculate
the
total
state
sales
tax
imposed
and
collected
by
18
retailers
upon
sales
of
tangible
personal
property
or
services
19
furnished
to
purchasers
for
each
city
and
unincorporated
area
20
within
that
county
for
the
base
year
of
the
program
application
21
and
provide
that
information
to
the
county
and
the
authority
on
22
or
before
March
1
of
the
program
year.
23
(3)
Upon
notice
by
the
authority
of
its
selection
of
a
24
county
for
participation
in
the
program,
the
department
shall
25
credit
to
the
county’s
account
in
the
special
fund
created
in
26
section
15E.373
an
amount
equal
to
the
state
sales
tax
imposed
27
and
collected
by
retailers
upon
sales
of
tangible
personal
28
property
or
services
furnished
to
purchasers
for
the
base
year
29
of
the
program
application,
or
five
million
dollars,
whichever
30
is
less.
The
credit
shall
be
made
by
March
15
of
the
program
31
year
to
the
county’s
account
in
the
special
fund
under
the
32
control
of
the
authority
to
be
administered
and
distributed
by
33
the
authority
pursuant
to
section
15E.373.
34
DIVISION
III
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ANNUAL
REPORT
TO
GENERAL
ASSEMBLY
AND
GOVERNOR
1
Sec.
6.
Section
15.104,
subsection
8,
Code
Supplement
2011,
2
is
amended
by
adding
the
following
new
paragraph:
3
NEW
PARAGRAPH
.
m.
Sales
tax
rebate
for
county
development
4
program.
Data
on
the
sales
tax
rebate
for
county
development
5
program
established
pursuant
to
chapter
15E,
division
XXVII,
6
including
all
of
the
following
for
each
participant
county:
7
(1)
The
identity
of
each
economic
development
entity
8
designated
to
represent
the
cities
and
unincorporated
areas
of
9
the
county.
10
(2)
A
report
of
all
deposits,
withdrawals,
and
expenditures
11
made
from
the
special
fund
of
the
county.
12
(3)
A
description
of
each
proposed
economic
development
13
project
disapproved
for
a
financial
assistance
award
by
the
14
authority
and
the
reason
for
disapproval.
15
(4)
For
each
economic
development
project
awarded
financial
16
assistance:
17
(a)
The
project’s
description
and
location.
18
(b)
For
each
project,
the
amount
of
financial
assistance
19
awarded
and
the
amount
of
the
award
actually
paid
to
the
20
economic
development
entity
as
of
June
30
of
the
fiscal
year.
21
(c)
If
applicable,
the
number
of
created
or
retained
22
jobs
contracted
for
and
the
actual
number
of
jobs
created
or
23
retained
as
a
result
of
the
project.
24
(d)
If
applicable,
the
amount
of
private
capital
or
other
25
investment
contracted
for
and
the
actual
amount
of
private
26
capital
or
other
investment
made
as
a
result
of
the
project.
27
(e)
If
applicable,
other
terms
and
obligations
contracted
28
for
and
the
actual
terms
and
obligations
complied
with
and
29
fulfilled
as
a
result
of
the
project.
30
EXPLANATION
31
This
bill
relates
to
a
sales
tax
rebate
for
county
32
development
program.
33
Division
I
of
the
bill
relates
to
the
creation
and
34
administration
of
the
program.
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The
division
requires
the
economic
development
authority
1
to
create
and
administer
a
program
to
participating
counties
2
in
the
state
with
a
one-time,
limited
sales
tax
rebate
to
be
3
used
to
provide
financial
assistance
awards
to
local
economic
4
development
projects.
“Economic
development
project”
is
5
defined
as
a
project
involving
private
or
joint
public
and
6
private
investment
involving
the
creation
of
new
jobs
and
7
income
or
the
retention
of
existing
jobs
and
income.
An
8
economic
development
project
includes
a
physical
infrastructure
9
project
as
defined
in
the
bill,
so
long
as
it
is
undertaken
10
with
the
specific
intent
to
create,
attract,
or
retain
jobs
and
11
income.
12
The
economic
development
authority
may
choose
up
to
10
13
counties
per
year
to
participate
in
the
program
and
receive
14
a
sales
tax
rebate,
with
the
rebates
first
payable
during
15
the
fiscal
year
beginning
July
1,
2012.
Applications
for
16
participation
by
a
prospective
county
are
to
be
made
by
17
November
30
by
the
county
board
of
supervisors.
As
part
of
18
the
application,
each
city
and
unincorporated
area
within
the
19
county
is
required
to
designate
one
economic
development
entity
20
to
represent
it
under
the
program.
“Economic
development
21
entity”
is
defined
as
a
county
board
of
supervisors,
city
22
council,
or
not-for-profit
business
association
vested
by
23
a
board
of
supervisors
or
city
council
with
the
power
to
24
represent
it
under
the
program.
The
designation
for
each
city
25
will
be
made
by
its
city
council,
and
the
designation
for
26
each
unincorporated
area
will
be
made
by
the
county
board
of
27
supervisors.
An
economic
development
entity
may
represent
28
more
than
one
city
or
unincorporated
area,
but
no
city
or
29
unincorporated
area
may
be
represented
by
more
than
one
30
economic
development
entity.
In
addition,
each
application
31
is
required
to
have
information
pertaining
to
recent
business
32
closures
or
permanent
layoffs
that
have,
or
may
have,
a
33
significant
negative
impact
in
the
county,
potential
economic
34
development
projects
that
exist
or
may
exist
within
the
35
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county,
the
current
unemployment
rate
of
the
county,
and
the
1
county’s
population
for
the
two
most
recently
completed
federal
2
censuses.
3
The
economic
development
authority
has
60
days
after
4
November
30
to
choose
up
to
10
counties
to
participate
in
the
5
program.
In
making
its
selection
decisions,
the
authority
is
6
required
to
consider
all
information
contained
in
a
program
7
application
and
any
other
relevant
information,
giving
8
considerable
weight
to
counties
that
have
had
a
recent
business
9
closure
or
permanent
layoff
with
a
significant
negative
10
impact
in
the
county,
that
have
potential
economic
development
11
projects
in
the
county,
that
have
unemployment
rates
greater
12
than
the
state
average,
and
that
have
experienced
a
recent
loss
13
of
population.
Applicant
counties
demonstrating
the
greatest
14
need
and
potential
for
economic
growth
and
expansion
are
to
be
15
given
priority.
16
Each
county
is
eligible
to
participate
in
the
program
one
17
time.
A
county
chosen
for
participation
shall
receive
a
sales
18
tax
rebate
from
the
department
of
revenue
equal
to
the
state
19
sales
tax
imposed
and
collected
by
retailers
upon
sales
of
20
tangible
personal
property
or
services
furnished
to
purchasers
21
in
that
county
for
the
base
year
of
the
county’s
application,
22
or
$5
million,
whichever
is
less.
A
county’s
“base
year”
is
23
defined
as
the
fiscal
year
immediately
preceding
the
program
24
year
for
which
the
program
application
is
made.
The
rebate
25
applies
only
to
the
first
5
percent
of
state
sales
tax
imposed
26
in
Code
section
423.2,
and
not
to
any
local
option
sales
and
27
service
tax
imposed
pursuant
to
Code
chapter
423B.
The
rebate
28
shall
be
issued
by
the
department
of
revenue
in
the
form
of
a
29
credit
made
by
March
15
of
the
program
year
into
the
county’s
30
account
in
a
special
fund
to
be
administered
and
distributed
by
31
the
economic
development
authority.
Any
moneys
remaining
in
a
32
special
fund
after
five
years
from
the
date
the
credit
is
made
33
shall
revert
to
the
general
fund
of
the
state.
Any
interest
or
34
earnings
on
moneys
in
a
special
fund
shall
immediately
revert
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to
the
general
fund
of
the
state.
1
An
economic
development
entity
designated
in
a
participating
2
county’s
program
application
may
apply
to
the
authority
for
a
3
financial
assistance
award
from
the
county’s
account
in
the
4
special
fund,
provided
it
is
used
exclusively
for
an
economic
5
development
project.
Applications
for
funds
are
to
be
made
6
in
the
manner
and
form
developed
by
the
authority
and
shall
7
contain,
at
a
minimum,
the
amount
requested
and
a
detailed
8
description
of
how
the
moneys
will
be
used;
the
description
9
and
purpose
of
the
proposed
project;
the
goal
of
the
proposed
10
project
and
estimated
jobs
and
income
created
and
retained;
the
11
projected
source,
type,
and
amount
of
any
private
capital
or
12
other
investment
involved
with
the
proposed
project;
and
a
list
13
of
all
public
and
private
parties
involved
with
the
proposed
14
project.
15
The
authority
is
not
allowed
to
require
any
economic
16
development
entity,
county,
or
city
to
provide,
or
demonstrate
17
an
ability
to
provide,
local
matching
moneys
in
order
to
18
receive
a
financial
assistance
award
under
the
program.
19
The
maximum
aggregate
financial
assistance
awards
paid
20
from
the
special
fund
of
a
participant
county
for
economic
21
development
projects
within
a
city
or
unincorporated
area
22
shall
not
exceed
an
amount
which
is
the
lesser
of
the
total
23
amount
of
state
sales
tax
imposed
and
collected
in
that
city
or
24
unincorporated
area
for
the
base
year
of
the
county’s
program
25
application,
or
an
amount
equal
to
the
same
proportion
of
the
26
county’s
rebate
received
from
the
department
of
revenue,
as
27
the
amount
of
state
sales
tax
imposed
and
collected
in
that
28
city
or
unincorporated
area
for
the
base
year
of
the
county’s
29
program
application
bears
to
the
total
amount
of
state
sales
30
tax
imposed
and
collected
in
that
county
for
the
base
year
of
31
the
program
application.
However,
an
economic
development
32
entity
representing
a
city
or
unincorporated
area
may
elect
to
33
allocate
all
or
a
portion
of
its
share
of
a
county’s
special
34
fund
to
a
different
city
or
unincorporated
area
within
that
35
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same
county
if
it
makes
a
determination
based
on
factors
1
specified
in
the
bill.
2
If
the
authority
determines
that
a
proposed
economic
3
development
project
meets
the
definition
of
“economic
4
development
project”
described
above,
then
it
shall
enter
into
5
an
agreement
with
the
recipient
of
the
financial
assistance
6
award
that
describes
the
terms
and
obligations
under
which
7
the
financial
assistance
will
be
provided.
The
authority,
in
8
consultation
with
the
applicable
economic
development
entity,
9
may
negotiate
the
terms
and
obligations
of
the
agreement.
An
10
agreement
shall
contain,
at
a
minimum,
the
project
completion
11
date,
maintenance
period
completion
date,
the
number
of
jobs
12
to
be
created
or
retained,
the
amount
of
private
capital
or
13
other
investment
to
be
involved,
and
the
amount
of
financial
14
assistance
to
be
provided.
“Project
completion
date”
means
15
the
date
by
which
a
financial
assistance
award
recipient
has
16
agreed
to
meet
all
the
terms
and
conditions
contained
in
its
17
agreement
with
the
authority.
The
maintenance
period
refers
18
to
the
period
of
time
between
the
project
completion
date
19
and
the
maintenance
period
completion
date.
“Maintenance
20
period
completion
date”
is
defined
as
the
date
on
which
the
21
maintenance
period
ends.
22
The
division
also
lists
several
requirements
that
the
23
potential
recipient
of
a
financial
award
must
fulfill.
First,
24
potential
financial
award
recipients
must
submit
to
the
25
authority
a
report
describing
all
violations
of
environmental
26
law
and
worker
safety
in
the
last
five
years.
The
authority
27
must
deny
a
financial
assistance
award
if
it
finds
a
consistent
28
pattern
of
violations
unless
mitigating
circumstances
were
29
present.
Second,
potential
financial
award
recipients
must
30
not
have
closed
or
substantially
reduced
operations
in
one
31
area
of
this
state
and
relocated
substantially
the
same
32
operations
in
another
community
in
another
area
of
this
state.
33
Third,
potential
financial
award
recipients
must
only
employ
34
individuals
legally
authorized
to
work
in
this
state.
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During
the
life
of
the
agreement,
the
authority
may
reduce,
1
eliminate,
or
recapture
some
or
all
of
the
financial
assistance
2
awarded
if
a
recipient
fails
to
meet
all
the
terms
and
3
obligations
of
its
agreement,
experiences
a
layoff
or
closes
4
any
facilities
within
the
state,
or
employs
individuals
not
5
legally
authorized
to
work
in
this
state.
Any
amount
repaid
to
6
the
authority
shall
revert
to
the
general
fund.
7
The
division
provides
that
funds
and
financial
assistance
8
awards
issued
under
the
program
to
any
party
shall
not
be
9
deposited
in
the
general
fund
of
any
economic
development
10
entity,
county,
or
city,
nor
used
for
operating
expenses
of
any
11
economic
development
entity,
county,
or
city,
or
for
salaries
12
or
bonuses
of
any
person
employed
by
an
economic
development
13
entity,
county,
or
city.
It
further
provides
that
funds
and
14
financial
assistance
awards
shall
not
be
used
for
consulting
15
fees
or
marketing
fees.
16
The
division
provides
conflict
of
interest
provisions
that
17
apply
to
any
member
of
a
governing
body
of
a
city
or
county
18
or
an
employee
of
a
state,
city,
or
county
board,
agency,
19
commission,
or
other
governmental
entity
of
this
state
that
20
has
an
interest,
either
direct
or
indirect,
in
a
private
21
person,
contract,
or
entity
for
which
financial
assistance
22
may
be
provided
under
the
program.
For
purposes
of
the
23
conflict
of
interest
provisions,
any
not-for-profit
economic
24
development
entity
representing
a
city
or
county
shall
be
25
considered
a
governmental
entity
subject
to
the
conflict
of
26
interest
provisions.
The
bill
provides
that
violations
of
27
the
conflict
of
interest
provisions
are
considered
misconduct
28
in
office
under
Code
section
721.2
and
classified
as
a
29
serious
misdemeanor.
A
serious
misdemeanor
is
punishable
by
30
confinement
for
no
more
than
one
year
and
a
fine
of
at
least
31
$315
but
not
more
than
$1,875.
32
The
division
provides
that
the
authority
shall
adopt
rules
33
for
the
administration
of
the
sales
tax
rebate
for
county
34
development
program
and
provide
for
the
inclusion
of
uniform
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terms
and
obligations
in
agreements
between
the
authority
and
1
recipients
of
financial
assistance
awards
under
the
program.
2
Division
II
of
the
bill
relates
to
the
calculation
and
3
issuance
of
sales
tax
rebates
by
the
department
of
revenue.
4
The
division
provides
that
the
department
of
revenue
will
5
assist
the
economic
development
authority
in
administering
the
6
sales
tax
rebate
for
county
development
program
by
calculating
7
the
total
state
sales
tax
imposed
and
collected
by
retailers
8
upon
sales
of
tangible
personal
property
or
services
furnished
9
to
purchasers
pursuant
to
Code
section
423.2
in
each
applicant
10
county
for
the
base
year
of
each
program
application.
The
11
department
is
responsible
for
calculating
the
same
amounts
for
12
each
city
and
unincorporated
area
within
any
county
that
is
13
chosen
for
participation
in
the
program,
and
then
crediting
the
14
appropriate
amount
by
March
15
of
the
program
year
to
a
special
15
fund
within
the
economic
development
authority.
16
Division
III
of
the
bill
relates
to
an
annual
report
prepared
17
by
the
economic
development
authority.
18
The
division
provides
that
the
economic
development
19
authority
shall
include
a
report
on
the
sales
tax
rebate
for
20
county
development
program
in
its
annual
report
to
the
general
21
assembly
and
governor.
The
report
shall
include
the
identity
22
of
each
economic
development
entity
designated
to
represent
23
cities
and
unincorporated
areas
under
the
program;
a
report
of
24
all
deposits,
withdrawals,
and
expenditures
made
from
special
25
funds
of
the
counties;
and
a
description
of
each
disapproved
26
economic
development
project
and
the
reason
for
disapproval.
27
For
each
approved
project,
the
report
shall
include
a
28
description
and
the
location
of
the
project;
the
amount
of
29
financial
assistance
awarded
and
paid;
and
if
applicable,
the
30
number
of
jobs,
investments,
or
other
terms
and
conditions
31
contracted
for
and
actually
completed
under
the
agreements.
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