Bill Text: IA HF2473 | 2011-2012 | 84th General Assembly | Enrolled

---

Bill Title: A bill for an act relating to economic development and the use of funds by establishing programs and funds, affecting programs, tax incentives, and project completion and other assistance administered by the economic development authority, by replacing references to the economic development fund and financial assistance program, and by providing spending authority, by providing for properly related matters, and including effective date and retroactive applicability provisions. Effective 7-1-12 with exception of section 37, effective 5-25-12.

Spectrum: Committee Bill

Status: (Passed) 2012-05-25 - Signed by Governor. H.J. 963. [HF2473 Detail]

Download: Iowa-2011-HF2473-Enrolled.html

---

House File 2473
AN ACT
RELATING TO ECONOMIC DEVELOPMENT AND THE USE OF FUNDS BY
ESTABLISHING PROGRAMS AND FUNDS, AFFECTING PROGRAMS, TAX
INCENTIVES, AND PROJECT COMPLETION AND OTHER ASSISTANCE
ADMINISTERED BY THE ECONOMIC DEVELOPMENT AUTHORITY, BY
REPLACING REFERENCES TO THE ECONOMIC DEVELOPMENT FUND AND
FINANCIAL ASSISTANCE PROGRAM, AND BY PROVIDING SPENDING
AUTHORITY, BY PROVIDING FOR PROPERLY RELATED MATTERS, AND
INCLUDING EFFECTIVE DATE AND RETROACTIVE APPLICABILITY
PROVISIONS.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
DIVISION I
HIGH QUALITY JOBS PROGRAM AND RELATED ASSISTANCE AND PROGRAMS
Section 1. Section 15.327, subsections 2, 5, 7, 8, 10, 12,
and 13, Code Supplement 2011, are amended to read as follows:
2. “Benefit” has the same meaning as defined in section
15G.101 means nonwage compensation provided to an employee .

House File 2473, p. 2
Benefits typically include medical and dental insurance
plans, pension, retirement, and profit-sharing plans, child
care services, life insurance coverage, vision insurance
coverage, disability insurance coverage, and any other nonwage
compensation as determined by the board.
5. “Created job” has the same meaning as defined in section
15G.101 means a new, permanent, full-time equivalent position
added to a business’s payroll in excess of the business’s base
employment level .
7. “Fiscal impact ratio” has the same meaning as defined
in section 15G.101 means a ratio calculated by estimating the
amount of taxes to be received from a business by the state
and dividing the estimate by the estimated cost to the state
of providing certain project completion assistance and tax
incentives to the business, reflecting a ten-year period and
expressed in terms of current dollars . For purposes of the
program, “fiscal impact ratio” does not include taxes received
by political subdivisions.
8. “Maintenance period completion date” has the same meaning
as defined in section 15G.101 means the date on which the
maintenance period ends .
10. “Project completion date” has the same meaning as
defined in section 15G.101 means the date by which a recipient
of project completion assistance has agreed to meet all the
terms and obligations contained in an agreement with the
authority .
12. “Qualifying wage threshold” has the same meaning as
defined in section 15G.101 means the laborshed wage for an
eligible business .
13. “Retained job” has the same meaning as defined in
section 15G.101 means a full-time equivalent position, in
existence at the time an employer applies for financial
assistance which remains continuously filled and which is at
risk of elimination if the project for which the employer is
seeking assistance does not proceed .
Sec. 2. Section 15.327, Code Supplement 2011, is amended by
adding the following new subsections:
NEW SUBSECTION . 1A. “Base employment level” means the
number of full-time equivalent positions at a business,
as established by the authority and a business using the
business’s payroll records, as of the date a business applies
for incentives or project completion assistance under the
program.

House File 2473, p. 3
NEW SUBSECTION . 2A. “Business engaged in disaster recovery”
means a business located in an area declared a disaster area
by a federal official, that has sustained substantial physical
damage, that has closed as the result of a natural disaster,
and that has a plan for reopening that includes employing a
substantial number of the employees the business employed
before the natural disaster occurred.
NEW SUBSECTION . 6A. “Financial assistance” means assistance
provided only from the funds, rights, and assets legally
available to the authority pursuant to this chapter and
includes but is not limited to assistance in the form of
grants, loans, forgivable loans, and royalty payments.
NEW SUBSECTION . 7A. “Full-time equivalent position” means
a non-part-time position for the number of hours or days per
week considered to be full-time work for the kind of service
or work performed for an employer. Typically, a full-time
equivalent position requires two thousand eighty hours of work
in a calendar year, including all paid holidays, vacations,
sick time, and other paid leave.
NEW SUBSECTION . 7B. “Fund” means a fund created pursuant
to section 15.335B.
NEW SUBSECTION . 7C. “Laborshed wage” means the wage level
represented by those wages within two standard deviations
from the mean wage within the laborshed area in which the
eligible business is located, as calculated by the authority,
by rule, using the most current covered wage and employment
data available from the department of workforce development for
the laborshed area.
NEW SUBSECTION . 7D. “Maintenance period” means the period
of time between the project completion date and the maintenance
period completion date.
NEW SUBSECTION . 9A. “Program support” means the services
necessary for the efficient administration of this part,
including the delivery of program services to eligible
businesses. “Program support” may include the administrative
costs of providing project assistance, conducting a statewide
laborshed study in coordination with the department of
workforce development, outreach to business and marketing of
programs, the procurement of technical assistance, and the
implementation of information technology.
NEW SUBSECTION . 9B. “Project completion assistance” means
financial assistance or technical assistance provided to
an eligible business in order to facilitate the start-up,

House File 2473, p. 4
location, or expansion of the business in this state and
provided in an expedient manner to ensure the successful
completion of the start-up, location, or expansion project.
NEW SUBSECTION . 10A. “Project completion period” means the
period of time between the date financial assistance is awarded
and the project completion date.
Sec. 3. Section 15.329, subsection 1, unnumbered paragraph
1, Code Supplement 2011, is amended to read as follows:
To be eligible to receive incentives or assistance
under this part, a business shall meet all of the following
requirements:
Sec. 4. Section 15.329, subsection 1, paragraph b, Code
Supplement 2011, is amended to read as follows:
b. (1) The business has not closed or substantially
reduced operations in one area of this state and relocated
substantially the same operations in a community in another
area of this state shall not be solely relocating operations
from one area of the state while seeking state or local
incentives . A project that does not create new jobs or
involve a substantial amount of new capital investment shall
be presumed to be a relocation. In determining whether a
business is solely relocating operations for purposes of this
subparagraph, the authority shall consider a letter of support
for the move from the affected local community.
(2) The business shall not be in the process of reducing
operations in one community while simultaneously applying
for assistance under the program. For purposes of this
subparagraph, a reduction in operations within twelve months
before or after an application for assistance is submitted to
the authority shall be presumed to be a reduction in operations
while simultaneously applying for assistance under the program.
(3) This paragraph shall not be construed to prohibit
a business from expanding its operation in a community if
existing operations of a similar nature in this state are not
closed or substantially reduced.
Sec. 5. Section 15.329, subsection 1, paragraph c,
subparagraphs (1) and (2), Code Supplement 2011, are amended
to read as follows:
(1) If the business is creating jobs, the business shall
demonstrate that the jobs will pay at least one hundred percent
of the qualifying wage threshold at the start of the project
completion period, at least one hundred thirty twenty percent
of the qualifying wage threshold by the project completion

House File 2473, p. 5
date, and at least one hundred thirty twenty percent of
the qualifying wage threshold until the maintenance period
completion date.
(2) If the business is retaining jobs, the business
shall demonstrate that the jobs retained will pay at least
one hundred thirty twenty percent of the qualifying wage
threshold throughout both the project completion period and the
maintenance period.
Sec. 6. Section 15.329, subsection 2, Code Supplement 2011,
is amended by striking the subsection.
Sec. 7. Section 15.330, Code Supplement 2011, is amended to
read as follows:
15.330 Agreement.
A business shall enter into an agreement with the authority
specifying the requirements that must be met to confirm
eligibility pursuant to this part. The authority shall
consult with the community during negotiations relating to the
agreement. The agreement shall contain, at a minimum, the
following provisions:
1. A business that is approved to receive incentives
or assistance under this part shall, for the length of the
agreement, certify annually to the authority the compliance of
the business with the requirements of the agreement. If the
business receives a local property tax exemption, the business
shall also certify annually to the community the compliance of
the business with the requirements of the agreement.
2. The repayment of incentives or financial assistance
by the business if the business does not meet any of the
requirements of this part or the resulting agreement.
3. If a business that is approved to receive incentives
or assistance under this part experiences a layoff within the
state or closes any of its facilities within the state, the
authority shall have the discretion to reduce or eliminate
some or all of the incentives or assistance . If a business
has received incentives or assistance under this part and
experiences a layoff within the state or closes any of its
facilities within the state, the business may be subject to
repayment of all or a portion of the incentives or financial
assistance that it has received.
4. A project completion date, a maintenance period
completion date, the number of jobs to be created or retained,
or certain other terms and obligations described in section
15G.112, subsection 1 , paragraph “d” , as the authority

House File 2473, p. 6
deems necessary in order to make the requirements in project
agreements uniform. The authority, with the approval of
the board, may adopt rules as necessary for making such
requirements uniform. Such rules shall be in compliance with
the provisions of this part and with the provisions of chapter
15G .
5. The amount and type of project completion assistance to
be provided under section 15.335B.
6. The amount of matching funds to be received by a business
from a city or county. The authority shall adopt by rule a
formula for determining the amount of matching funds required
under the program.
7. The business shall not be relocating or reducing
operations as described in section 15.329, subsection 1,
paragraph “b” .
8. The proposed project shall not negatively impact other
businesses in competition with the business being considered
for assistance. The authority shall make a good-faith effort
to identify existing Iowa businesses within an industry in
competition with the business being considered for incentives
or assistance. The authority shall make a good-faith effort
to determine the probability that the proposed incentives or
assistance will displace employees of the existing businesses.
In determining the impact on businesses in competition with the
business being considered for incentives or assistance, jobs
created or retained as a result of other jobs being displaced
elsewhere in the state shall not be considered direct jobs
created or retained.
9. A report submitted to the authority with its application
describing all violations of environmental law or worker
safety law within the last five years. If, upon review of the
application, the authority finds that a business has a record
of violations of the law, statutes, rules, or regulations that
tends to show a consistent pattern, the authority shall not
provide incentives or assistance to the business unless the
authority finds either that the violations did not seriously
affect public health, public safety, or the environment, or,
if such violations did seriously affect public health, public
safety, or the environment, that mitigating circumstances were
present.
10. That the business shall only employ individuals legally
authorized to work in this state. In addition to any and
all other applicable penalties provided by current law, all

House File 2473, p. 7
or a portion of the incentives or assistance received under
this part by a business that is found to knowingly employ
individuals not legally authorized to work in this state is
subject to recapture by the authority or by the department of
revenue.
11. Any terms deemed necessary by the authority to effect
compliance with the eligibility requirements of section 15.329.
Sec. 8. NEW SECTION . 15.330A Maintenance of agreements.
1. An eligible business receiving incentives or assistance
under this part shall meet all terms and obligations in an
agreement by the project completion date, but the board may
for good cause extend the project completion date or otherwise
amend an agreement.
2. During the maintenance period an eligible business
receiving incentives or assistance under this part shall
continue to comply with the terms and obligations of an
agreement entered into pursuant to section 15.330.
3. The authority may enforce the terms of an agreement as
necessary and appropriate.
Sec. 9. Section 15.335A, subsection 1, unnumbered paragraph
1, Code Supplement 2011, is amended to read as follows:
Tax incentives are available to eligible businesses as
provided in this section . The incentives are based upon the
number of jobs created or retained that pay at least one
hundred thirty twenty percent of the qualifying wage threshold
as computed pursuant to section 15G.112, subsection 4 , and
the amount of the qualifying investment made according to the
following schedule:
Sec. 10. Section 15.335A, subsection 2, paragraphs b, c,
f, and g, Code Supplement 2011, are amended by striking the
paragraphs.
Sec. 11. Section 15.335A, subsections 3 and 4, Code
Supplement 2011, are amended by striking the subsections.
Sec. 12. Section 15.335A, subsection 5, Code Supplement
2011, is amended to read as follows:
5. The authority shall negotiate the amount of tax
incentives provided to an applicant under the program
in accordance with this section and section 15G.112 , as
applicable .
Sec. 13. NEW SECTION . 15.335B Assistance for certain
programs and projects.
1. a. Under the authority provided in section 15.106A,
there shall be established one or more funds within the state

House File 2473, p. 8
treasury, under the control of the authority, to be used for
purposes of this section.
b. A fund established for purposes of this section shall
consist of any moneys appropriated to the authority for
purposes of this section, or moneys otherwise accruing to
the authority and deposited in the fund for purposes of this
section.
c. Interest or earnings on moneys in a fund used for the
purposes of this section, and all repayments or recaptures of
the assistance provided under this section, shall accrue to
the authority and shall be used for purposes of this section,
notwithstanding section 12C.7. Moneys in a fund are not
subject to section 8.33.
2. a. The moneys in a fund established for purposes of
this section, as described in subsection 1, shall be allocated
by the authority in appropriate amounts to be used for the
following purposes:
(1) For providing project completion assistance to eligible
businesses under this part and for program support of such
assistance.
(2) For providing economic development region financial
assistance under section 15E.232, subsections 1, 3, 4, 5, and
6.
(3) For providing financial assistance for business
accelerators pursuant to section 15E.351.
(4) For deposit in the innovation and commercialization
fund created pursuant to section 15.412.
(5) For providing financial assistance to businesses
engaged in disaster recovery.
(6) For deposit in the entrepreneur investment awards
program fund pursuant to section 15E.363.
b. Each fiscal year, the authority shall estimate the
amount of revenues available for purposes of this section and
shall develop a budget appropriate for the expenditure of the
revenues available.
3. In providing assistance under this section, the
authority shall make a determination as to the amount and
type of assistance that is most appropriate for facilitating
the successful completion of an eligible business’s project.
Before making such a determination, the authority shall do all
of the following:
a. Consider a business’s eligibility for the tax incentives
available under section 15.335A and ensure that the amount of

House File 2473, p. 9
assistance to be provided appropriately complements the amount
and type of tax incentives to be provided.
b. Consider the amount of private sector investment to be
leveraged by the project, including the eligible business’s
equity investment, debt financing, and any venture capital or
foreign investment available, and make a good-faith effort to
provide only the amount of incentives and assistance necessary
to facilitate the project’s successful completion.
c. Consider the amount and type of the local community
match. The authority may provide assistance to an early-stage
business in a high-growth industry regardless of the amount of
local match involved.
d. Calculate the fiscal impact ratio of the project and use
it to guide the provision of incentives and assistance under
this part.
e. Evaluate the quality of the project based on the factors
described in section 15.329, subsection 5, and any other
relevant factors.
f. Ensure that the combined amount of incentives and
assistance are appropriate to the size of the project, to
the value of the project, to the fiscal impact ratio of the
project, and to any other relevant factors.
4. Each eligible business receiving assistance under this
section shall enter into an agreement with the authority and
the agreement shall meet the requirements of sections 15.330
and 15.330A.
Sec. 14. NEW SECTION . 15.335C Economically distressed
areas.
1. a. Notwithstanding section 15.329, subsection 1,
paragraph “c” , the authority may provide tax incentives or
project completion assistance under this part to an eligible
business paying less than one hundred twenty percent of the
qualifying wage threshold if that business is located in an
economically distressed area.
b. A business in an economically distressed area receiving
incentives or assistance pursuant to this section shall be
required to pay at least one hundred percent of the qualifying
wage threshold.
2. For purposes of this section, “economically distressed
area” means a county that ranks among the bottom twenty-five of
all Iowa counties, as measured by one of the following:
a. Average monthly unemployment level for the most recent
twelve-month period.

House File 2473, p. 10
b. Average annualized unemployment level for the most recent
five-year period.
Sec. 15. Section 15A.7, subsection 3, Code Supplement 2011,
is amended to read as follows:
3. That the employer shall agree to pay wages for the jobs
for which the credit is taken of at least the county wage or
the regional laborshed wage, as calculated by the authority
pursuant to section 15G.112 15.327 , subsection 3 , whichever
is lower 7C . Eligibility for the supplemental credit shall
be based on a one-time determination of starting wages by the
community college.
Sec. 16. Section 15E.193, subsection 1, paragraph b,
subparagraph (1), Code Supplement 2011, is amended to read as
follows:
(1) The business shall provide a sufficient package of
benefits to each employee holding a created or retained job.
For purposes of this paragraph, “created job” and “retained job”
have the same meaning as defined in section 15G.101 15.327 .
Sec. 17. Section 15E.193, subsection 1, paragraphs c and d,
Code Supplement 2011, are amended to read as follows:
c. The business shall pay a wage that is at least ninety
percent of the qualifying wage threshold. For purposes of this
paragraph, “qualifying wage threshold” has the same meaning as
defined in section 15G.101 15.327 .
d. Creates or retains at least ten full-time equivalent
positions and maintains them until the maintenance period
completion date. For purposes of this paragraph, “maintenance
period completion date” and “full-time equivalent position” have
the same meanings as defined in section 15G.101 15.327 .
Sec. 18. Section 15E.231, unnumbered paragraph 1, Code
Supplement 2011, is amended to read as follows:
In order for an economic development region to receive
moneys under the economic development financial assistance
program established in section 15G.112 assistance pursuant to
section 15.335B , an economic development region’s regional
development plan must be approved by the authority. An
economic development region shall consist of not less than
three counties, unless two contiguous counties have a combined
population of at least three hundred thousand based on the
most recent federal decennial census. An economic development
region shall establish a focused economic development effort
that shall include a regional development plan relating to one
or more of the following areas:

House File 2473, p. 11
Sec. 19. Section 15E.232, subsections 1, 3, 4, 5, and 6,
Code Supplement 2011, are amended to read as follows:
1. An economic development region may apply for financial
assistance from the economic development a fund established
pursuant to section 15.335B to assist with the installation
of physical infrastructure needs including, but not limited
to, horizontal infrastructure, water and sewer infrastructure,
and telecommunications infrastructure, related to the
development of fully served business and industrial sites by
one or more of the region’s economic development partners
or for the installation of infrastructure related to a
new business location or expansion. In order to receive
financial assistance pursuant to this subsection , the economic
development region must demonstrate all of the following:
a. The ability to provide matching moneys on a basis of a
one dollar contribution of local matching moneys for every two
dollars received from the economic development fund.
b. The commitment of the specific business partner
including, but not limited to, a letter of intent defining a
capital commitment or a percentage of equity.
c. That all other funding alternatives have been exhausted.
3. An economic development region may apply for financial
assistance from the economic development a fund established
pursuant to section 15.335B to assist an existing business
threatened with closure due to a potential consolidation to an
out-of-state location. The economic development region may
apply for financial assistance from the economic development
fund for the purchase, rehabilitation, or marketing of a
building that has become available due to the closing of an
existing business due to a consolidation to an out-of-state
location. In order to receive financial assistance under this
subsection , an economic development region must demonstrate the
ability to provide local matching moneys on a basis of a one
dollar contribution of local moneys for every three dollars
received from the economic development fund.
4. An economic development region may apply for financial
assistance from the economic development a fund established
pursuant to section 15.335B to establish and operate an
entrepreneurial initiative. In order to receive financial
assistance under this subsection , an economic development
region must demonstrate the ability to provide local matching
moneys on a basis of a one dollar contribution of local moneys
for every two dollars received from the economic development

House File 2473, p. 12
fund.
5. a. An economic development region may apply for
financial assistance from the economic development a fund
established pursuant to section 15.335B to establish and
operate a business succession assistance program for the
region.
b. In order to receive financial assistance under this
subsection , an economic development region must demonstrate
the ability to provide local matching moneys on a basis of a
one dollar contribution of local moneys for every two dollars
received from the economic development fund.
6. An economic development region may apply for financial
assistance from the economic development a fund established
pursuant to section 15.335B to implement economic development
initiatives that are either unique to the region or innovative
in design and implementation. In order to receive financial
assistance under this subsection , an economic development
region must demonstrate the ability to provide local matching
moneys on a one-to-one basis.
Sec. 20. Section 15E.351, subsection 1, Code Supplement
2011, is amended to read as follows:
1. The economic development authority shall establish and
administer a business accelerator program to provide financial
assistance for the establishment and operation of a business
accelerator for technology-based, value-added agricultural,
information solutions, alternative and renewable energy
including the alternative and renewable energy sectors listed
in section 476.42, subsection 1 , paragraph “a” , subparagraph
(1), or advanced manufacturing start-up businesses or for a
satellite of an existing business accelerator. The program
shall be designed to foster the accelerated growth of new
and existing businesses through the provision of technical
assistance. The economic development authority may provide
financial assistance under this section from moneys allocated
for regional financial assistance for business accelerators
pursuant to section 15G.111 15.335B , subsection 9 2 .
Sec. 21. NEW SECTION . 15E.362 Entrepreneur investment
awards program.
1. The authority shall establish and administer an
entrepreneur investment awards program for purposes of
providing grants to programs that provide technical and
financial assistance to entrepreneurs seeking to create,
locate, or expand a business in the state if the business

House File 2473, p. 13
derives or intends to derive more than ten percent of its gross
sales from markets outside of the state. Financial assistance
under the program shall be provided from the entrepreneur
investment awards program fund created in section 15E.363.
2. In determining whether an entrepreneur assistance
program qualifies for a grant under the entrepreneur investment
awards program, the authority shall find that the entrepreneur
assistance program demonstrates all of the following:
a. The entrepreneur assistance program expended at least
five hundred thousand dollars in the program’s previous
fiscal year to provide technical and financial assistance to
entrepreneurs seeking to create, locate, or expand a business
in the state if the business derives or intends to derive more
than ten percent of its gross sales from markets outside of the
state. The five hundred thousand dollars in expenditures in
the program’s previous fiscal year shall not include grants
awarded pursuant to this section or any funds invested in
clients’ businesses.
b. The entrepreneur assistance program provides services to
meet the broad-based needs of entrepreneurs seeking to create,
locate, or expand a business in the state if the business
derives or intends to derive more than ten percent of its gross
sales from markets outside of the state.
c. The entrepreneur assistance program communicates with
and cooperates with other entrepreneur assistance programs and
similar service providers in the state.
d. The entrepreneur assistance program engages various
funding sources for entrepreneurs seeking to create, locate,
or expand a business in the state if the business derives or
intends to derive more than ten percent of its gross sales from
markets outside of the state.
e. The entrepreneur assistance program communicates with
and cooperates with various entities for purposes of locating
suitable facilities for clients of the entrepreneur assistance
program.
f. The entrepreneur assistance program is an Iowa-based
business.
3. In determining whether an entrepreneur assistance
program qualifies for a grant under the entrepreneur investment
awards program, the authority may consider any of the
following:
a. The business experience of the professional staff
employed or retained by the entrepreneur assistance program.

House File 2473, p. 14
b. The business plan review capacity of the entrepreneur
assistance program’s professional staff.
c. The expertise of the entrepreneur assistance program’s
professional staff in all aspects of business disciplines.
d. The entrepreneur assistance program’s professional
staff’s access to external service providers including legal,
accounting, marketing, and financial services.
4. Upon being awarded a grant under this section, the
entrepreneur assistance program shall accept client referrals
from the economic development authority.
5. The amount of a grant awarded to a qualifying
entrepreneur assistance program shall not exceed the lesser of
the following for any fiscal year:
a. An amount equal to twenty-five percent of the funds
expended by the qualifying program in the program’s previous
fiscal year to provide technical and financial assistance to
entrepreneurs seeking to create, locate, or expand a business
in the state if the business derives or intends to derive more
than ten percent of its gross sales from markets outside of
the state. For purposes of this paragraph, “funds expended”
shall not include grants awarded pursuant to this section or
any funds invested in clients’ businesses.
b. An amount equal to one hundred percent of funds raised by
the entrepreneur assistance program in the previous fiscal year
from private foundations, federal or local government funds,
financial institutions, or individuals.
c. Two hundred thousand dollars.
6. The grant awarded to a qualifying entrepreneur
assistance program shall only be used for the purpose of the
operating costs incurred by the program.
7. The economic development authority board may approve,
deny, or defer each application for a grant from the
entrepreneur investment awards program fund created in section
15E.363.
8. The maximum amount of the total grants awarded by the
authority for the entrepreneur investment awards program shall
not exceed one million dollars in a fiscal year. The authority
shall award the grants on a first-come, first-served basis.
9. The authority may contract with outside service
providers for assistance with the grant program described in
this section or may delegate the administration of the program
to the Iowa innovation corporation pursuant to section 15.106B.
10. The authority shall not award a grant to an entrepreneur

House File 2473, p. 15
assistance program from the entrepreneur investment awards
program fund after June 30, 2014. It is the intent of the
general assembly to review and assess the success of the
entrepreneur investment awards program based on the report
provided by the economic development authority.
11. The economic development authority shall conduct a
comprehensive review of the entrepreneur investment awards
program and shall, by December 31, 2013, submit a report of the
findings of the review, as well as any recommendations and cost
projections of its recommendations, to the governor and the
general assembly. The report shall consist of the following
information:
a. The number of grants awarded, the total amount of the
grants awarded, the total amount expended on the entrepreneur
investment awards program, and the number of entrepreneur
investment awards to entrepreneur assistance programs that were
the subject of repayment or collection activity.
b. The number of applications received by the authority for
the program and the status of the applications.
c. For each entrepreneur assistance program receiving moneys
from the entrepreneur investment awards program fund, the
following information:
(1) The amount the entrepreneur assistance program received
from the entrepreneur investment awards program fund.
(2) The number of entrepreneurs creating a business in the
state that were assisted by the entrepreneur assistance program
and the number of new jobs associated with the business.
(3) The number of entrepreneurs locating or expanding a
business in the state that were assisted by the entrepreneur
assistance program and the number of new or retained jobs
associated with the business.
(4) The entrepreneur assistance program’s location.
(5) The amount, if any, of private and local matching funds
received by the entrepreneur assistance program.
d. The number of clients referred by the authority to an
entrepreneur assistance program receiving moneys from the
entrepreneur investment awards program fund.
e. An evaluation of the investment made by the state of Iowa
in the entrepreneur investment awards program.
f. Any other information the authority deems relevant to
assessing the success of the entrepreneur investment awards
program.
Sec. 22. NEW SECTION . 15E.363 Entrepreneur investment

House File 2473, p. 16
awards program fund.
1. An entrepreneur investment awards program fund is
created in the state treasury under the control of the
authority and consisting of any moneys appropriated by the
general assembly and any other moneys available to and obtained
or accepted by the authority for placement in the fund.
2. Payments of interest, repayments of moneys provided, and
recaptures of moneys provided shall be deposited in the fund.
3. The fund shall be used to provide grants under the
entrepreneur investment awards program established in section
15E.362.
4. Moneys in the fund are not subject to section 8.33.
Notwithstanding section 12C.7, interest or earnings on moneys
in the fund shall be credited to the fund.
Sec. 23. Section 159A.6B, subsection 2, Code Supplement
2011, is amended to read as follows:
2. The office may execute contracts in order to provide
technical support and outreach services for purposes of
assisting and educating interested persons as provided in this
section . The office may also contract with a consultant to
provide part or all of these services. The office may require
that a person receiving assistance pursuant to this section
contribute up to fifty percent of the amount required to
support the costs of contracting with the consultant to provide
assistance to the person. The office shall assist the person
in completing any technical information required in order
to receive assistance by the economic development authority
pursuant to the value-added agriculture component of the
economic development financial assistance program established
pursuant to section 15G.112 section 15.335B .
Sec. 24. Section 266.19, Code Supplement 2011, is amended
to read as follows:
266.19 Renewable fuel —— assistance.
The university shall cooperate in assisting renewable fuel
production facilities supporting livestock operations managed
by persons receiving assistance pursuant to the value-added
agriculture component of the economic development financial
assistance program established in section 15G.112 section
15.335B .
Sec. 25. Section 455B.104, subsection 2, Code Supplement
2011, is amended to read as follows:
2. The department shall assist persons applying for
assistance to establish and operate renewable fuel production

House File 2473, p. 17
facilities pursuant to the value-added agriculture component
of the economic development financial assistance program
established in section 15G.112 section 15.335B .
Sec. 26. REPEAL. Section 455B.433, Code Supplement 2011,
is repealed.
Sec. 27. RULES. The economic development authority shall
adopt rules for the implementation of this division of this
Act.
DIVISION II
TARGETED INDUSTRIES PROGRAM
Sec. 28. Section 15.102, subsection 11, Code Supplement
2011, is amended to read as follows:
11. “Targeted industries” means the same as defined
in section 15.411, subsection 1 industries of advanced
manufacturing, biosciences, and information technology .
Sec. 29. Section 15.106B, subsection 2, paragraph d,
subparagraph (1), Code Supplement 2011, is amended by adding
the following new subparagraph divisions:
NEW SUBPARAGRAPH DIVISION . (g) Services related to
outreach and assistance to businesses for small business
innovation research and technology transfer pursuant to section
15.411, subsection 5, or services related to accelerating the
generation and development of innovative ideas and businesses
pursuant to section 15.411, subsection 6.
NEW SUBPARAGRAPH DIVISION . (h) Services related to the
administration of an entrepreneur investment awards program
pursuant to section 15E.362.
Sec. 30. Section 15.117A, subsection 2, paragraph a,
subparagraph (5), Code Supplement 2011, is amended to read as
follows:
(5) The person appointed as the chief information officer
pursuant to section 8A.201A , or, if no person has been so
appointed, the director of the department of administrative
services workforce development , or the director’s designee.
Sec. 31. Section 15.411, Code Supplement 2011, is amended
to read as follows:
15.411 Targeted industries Innovative business development ——
internships —— technical and financial assistance.
1. As used in this part, unless the context otherwise
requires:
a. “Innovative business” means the same as defined in
section 15E.52.
a. b. “Internship” means temporary employment of a student

House File 2473, p. 18
that focuses on providing the student with work experience in
the student’s field of study.
b. “Targeted industries” means the industries of advanced
manufacturing, biosciences, and information technology.
2. The authority shall, upon board approval, may contract
with service providers on a case-by-case basis for services
related to statewide commercialization development in the
targeted industries of innovative businesses . Services
provided shall include all of the following:
a. Assistance provided directly to businesses by experienced
serial entrepreneurs for all of the following activities:
(1) Business plan development.
(2) Due diligence.
(3) Market assessments.
(4) Technology assessments.
(5) Other planning activities.
b. Operation and coordination of various available
competitive seed and prototype development funds.
c. Connecting businesses to private angel investors and the
venture capital community.
d. Assistance in obtaining access to an experienced pool
of managers and operations talent that can staff, mentor, or
advise start-up enterprises.
e. Support and advice for accessing sources of early stage
financing.
3. The authority shall establish and administer a program
to provide financial and technical assistance to encourage
prototype and concept development activities by innovative
businesses that have a clear potential to lead to commercially
viable products or services within a reasonable period of time
in the targeted industries . Financial assistance shall be
awarded on a per project basis upon board approval. The amount
of financial assistance available for a single project shall
not exceed one hundred fifty thousand dollars. In order to
receive financial assistance, an applicant must demonstrate
the ability to secure one dollar of nonstate moneys for every
two dollars received from the authority. For purposes of this
section, “financial assistance” means assistance provided only
from the funds, rights, and assets legally available to the
authority pursuant to this chapter and includes but is not
limited to assistance in the form of grants, loans, forgivable
loans, and royalty payments.
4. The authority shall, upon board approval, establish

House File 2473, p. 19
and administer a program to provide financial assistance for
projects designed to encourage collaboration between commercial
users and developers of information technology in the state
for the purpose of commercializing existing software and
applications technologies. Financial assistance shall not
exceed one hundred thousand dollars per project. In order to
receive financial assistance, an applicant must demonstrate the
ability to secure two dollars of nonstate moneys for every one
dollar received from the authority. Financial assistance shall
be awarded to projects that will result in technologies being
developed as commercial products for sale by Iowa companies
rather than as custom applications for proprietary use by a
participating firm.
5. The authority shall, upon board approval, establish
and administer a program to provide financial assistance to
businesses or departments of businesses engaged in the delivery
of information technology services in the state for the purpose
of upgrading the high-level technical skills of existing
employees. The amount of financial assistance shall not exceed
twenty-five thousand dollars for any business site. In order
to receive financial assistance, an applicant must demonstrate
the ability to secure two dollars of nonstate moneys for every
one dollar received from the authority.
6. 4. The authority shall , upon board approval, establish
and administer a targeted industries an innovative businesses
internship program for Iowa students. For purposes of this
subsection , “Iowa student” means a student of an Iowa community
college, private college, or institution of higher learning
under the control of the state board of regents, or a student
who graduated from high school in Iowa but now attends an
institution of higher learning outside the state of Iowa. The
purpose of the program is to link Iowa students to small and
medium sized Iowa firms in the targeted industries through
internship opportunities. An Iowa employer may receive
financial assistance in an amount of one dollar for every
two dollars paid by the employer to an intern. The amount
of financial assistance shall not exceed three thousand one
hundred dollars for any single internship, or nine thousand
three hundred dollars for any single employer. In order to be
eligible to receive financial assistance under this subsection ,
the employer must have five hundred or fewer employees and must
be engaged in a targeted industry an innovative business . The
authority shall encourage youth who reside in economically

House File 2473, p. 20
distressed areas, youth adjudicated to have committed a
delinquent act, and youth transitioning out of foster care to
participate in the targeted industries internship program.
7. The economic development authority shall work with the
department of workforce development to create a statewide
supplier capacity and product database to assist the economic
development authority in linking suppliers to Iowa-based
companies. The economic development authority may procure
technical assistance for the creation of the database from a
third party through a request for proposals process.
8. The technology commercialization committee created
pursuant to section 15.116 shall review all applications for
financial assistance and requests for proposals pursuant to
this section and make recommendations to the board.
9. In each fiscal year, the authority may transfer
additional moneys that become available to the authority
from sources such as loan repayments or recaptures of awards
from federal economic stimulus funds to the innovation
and commercialization development fund created in section
15.412 , provided the authority spends those moneys for the
implementation of the recommendations included in the separate
consultant reports on bioscience, advanced manufacturing,
information technology, and entrepreneurship submitted to the
department in calendar years 2004, 2005, and 2006.
5. a. (1) The authority shall establish and administer
an outreach program for purposes of assisting businesses with
applications to the federal small business innovation research
and small business technology transfer programs.
(2) The goals of this assistance are to increase the number
of successful phase II small business innovation research grant
proposals in the state, increase the amount of such grant
funds awarded in the state, stimulate subsequent investment by
industry, venture capital, and other sources, and encourage
businesses to commercialize promising technologies.
b. (1) In administering the program, the authority may
provide technical and financial assistance to businesses.
Financial assistance provided pursuant to this subsection shall
not exceed twenty-five thousand dollars to any single business.
(2) The authority may require successful applicants to
repay the amount of financial assistance received, but shall
not require unsuccessful applicants to repay such assistance.
Any moneys repaid pursuant to this subsection may be used to
provide financial assistance to other applicants.

House File 2473, p. 21
c. The authority may also provide financial assistance
for purposes of helping businesses meet the matching funds
requirements of the federal small business innovation research
and small business technology transfer programs.
d. The authority may contract with outside service providers
for assistance with the programs described in this subsection
or may delegate the functions to be performed under this
subsection to the corporation pursuant to section 15.106B.
6. a. The authority shall establish and administer a
program to accelerate the generation and development of
innovative ideas and businesses. The program shall include
assistance for the expansion of the proof of commercial
relevance concept, the expansion of investment in applied
research, and support for a manufacturing extension partnership
program.
b. The authority may contract with outside service providers
for assistance with the program described in this subsection
or may delegate the functions to be performed under this
subsection to the corporation pursuant to section 15.106B.
10. 7. The board shall adopt rules pursuant to chapter 17A
necessary for the administration of this section .
Sec. 32. Section 15.412, subsections 2 and 3, Code
Supplement 2011, are amended to read as follows:
2. Moneys in the fund are appropriated to the authority and,
with the approval of the board, shall be used to facilitate
agreements, enhance commercialization in the targeted
industries , and increase the availability of skilled workers
within the targeted industries in innovative businesses . Such
moneys shall not be used for the support of retail businesses,
health care businesses, or other businesses requiring a
professional license.
3. Moneys in the fund , with the approval of the board, may
also be used for the following purposes:
a. For assistance to entities providing student internship
opportunities.
b. For increasing career awareness training.
c. For recruiting management talent.
d. b. For assistance to entities engaged in prototype and
concept development activities.
e. c. For developing a statewide commercialization network.
f. For deploying and maintaining an Iowa entrepreneur
website.
g. For funding asset mapping and supply chain initiatives,

House File 2473, p. 22
including for identifying methods of supporting lean
manufacturing practices or processes.
h. For information technology training.
i. For networking events to facilitate the transfer of
technology among researchers and industries.
j. For funding student competition programs.
k. For the purchase of advanced equipment and software
at Iowa community colleges in order to support training and
coursework related to the targeted industries.
d. For establishing and administering the programs described
in section 15.411.
Sec. 33. Section 15E.52, subsection 1, paragraph c, Code
Supplement 2011, is amended to read as follows:
c. “Innovative business” means a business applying novel
or original methods to the manufacture of a product or the
delivery of a service. “Innovative business” includes but
is not limited to a business engaged in a targeted industry
as defined in section 15.411 the industries of advanced
manufacturing, biosciences, and information technology .
DIVISION III
OTHER ECONOMIC DEVELOPMENT CHANGES
Sec. 34. Section 15.106A, subsection 1, paragraph o, Code
Supplement 2011, is amended to read as follows:
o. Establish one or more funds within the state treasury
under the control of the authority. Moneys deposited in or
accruing to such a fund are appropriated to the authority for
purposes of administering the economic development programs in
this chapter, chapter 15E, or such other programs as directed
by law. Notwithstanding section 8.33 or 12C.7 , or any other
provision to the contrary, moneys invested by the treasurer
of state pursuant to this subsection shall not revert to the
general fund of the state and interest accrued on the moneys
shall be moneys of the authority and shall not be credited to
the general fund. The nonreversion of moneys allowed under
this paragraph does not apply to moneys appropriated to the
authority by the general assembly.
Sec. 35. Section 15.107B, subsection 1, Code Supplement
2011, is amended to read as follows:
1. On or before January 31 of each year, the director
shall submit to the authority board and the general assembly a
report that describes the activities of the authority during
the preceding fiscal year. The report shall include detailed
information about jobs created, capital invested, wages paid,

House File 2473, p. 23
and awards made under the programs the authority administers.
The report may include such other information as the director
deems necessary or as otherwise required by law. Subsequent
to submitting the report and within the same session of the
general assembly, the director shall discuss and review the
report with the general assembly’s standing committees on
economic growth and rebuild Iowa.
Sec. 36. NEW SECTION . 15.113 Tax lien and delinquency
search requirement.
Before authorizing tax incentives or disbursing moneys to
a person or business applying for assistance under any of the
authority’s programs, the authority shall conduct a search
for outstanding state or local tax liability, tax liens, or
other related delinquencies. The authority shall not authorize
tax incentives or disburse moneys if the result of the search
shows that the applicant is currently delinquent in the
payment of state or local taxes or is otherwise in substantial
noncompliance with Iowa tax law.
Sec. 37. Section 97B.1A, subsection 8, paragraph a,
subparagraph (12), Code Supplement 2011, is amended by striking
the subparagraph.
Sec. 38. REPEAL. Sections 15.103 and 15.104, Code
Supplement 2011, are repealed.
Sec. 39. HOUSING ENTERPRISE ZONE TAX CREDIT ISSUANCE.
1. Notwithstanding section 15E.193B, subsection 4, the
authority may issue a tax credit to an eligible housing
business for a project not completed within two years from
the time the business began construction if a city failed to
file the appropriate paperwork with the authority requesting
an extension for the project pursuant to section 15E.193B,
subsection 4.
2. The authorization described in subsection 1 only applies
to projects for which a city failed to file an extension
between January 1, 2007, and January 1, 2008, and only to
benefits earned for a project between February 8, 2005, and
February 8, 2008.
Sec. 40. EFFECTIVE UPON ENACTMENT. The following provision
or provisions of this division of this Act, being deemed of
immediate importance, take effect upon enactment:
1. The section of this Act amending section 97B.1A.
Sec. 41. RETROACTIVE APPLICABILITY. The following
provision or provisions of this division of this Act apply
retroactively to July 1, 2011:

House File 2473, p. 24
1. The section of this Act amending section 97B.1A.
______________________________
KRAIG PAULSEN
Speaker of the House
______________________________
JOHN P. KIBBIE
President of the Senate
I hereby certify that this bill originated in the House and
is known as House File 2473, Eighty-fourth General Assembly.
______________________________
W. CHARLES SMITHSON
Chief Clerk of the House
Approved _______________, 2012
______________________________
TERRY E. BRANSTAD
Governor