Bill Text: IA HF654 | 2015-2016 | 86th General Assembly | Introduced


Bill Title: A bill for an act relating to the programs and duties of the economic development authority and including effective date and retroactive applicability provisions and other properly related matters. (Formerly HF 385) (Formerly HSB 99)

Spectrum: Committee Bill

Status: (Engrossed - Dead) 2015-06-05 - Referred to Economic Growth. S.J. 1123. [HF654 Detail]

Download: Iowa-2015-HF654-Introduced.html
House File 654 - Introduced




                                 HOUSE FILE       
                                 BY  COMMITTEE ON WAYS AND
                                     MEANS

                                 (SUCCESSOR TO HF 385)
                                 (SUCCESSOR TO HSB 99)

                                      A BILL FOR

  1 An Act relating to the programs and duties of the economic
  2    development authority and including effective date and
  3    retroactive applicability provisions and other properly
  4    related matters.
  5 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
    TLSB 1213HZ (2) 86
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PAG LIN



  1  1                           DIVISION I
  1  2                    LIFE CYCLE COST ANALYSES
  1  3    Section 1.  Section 470.1, Code 2015, is amended by adding
  1  4 the following new subsection:
  1  5    NEW SUBSECTION.  01.  "Addition" means new construction equal
  1  6 to or greater than twenty thousand square feet of usable floor
  1  7 space that is heated or cooled by a mechanical or electrical
  1  8 system and is joined to a previously existing facility.
  1  9    Sec. 2.  Section 470.1, subsections 6, 7, and 10, Code 2015,
  1 10 are amended to read as follows:
  1 11    6.  "Facility" means a building having twenty thousand square
  1 12 feet or more of usable floor space that is heated or cooled
  1 13 by a mechanical or electrical system or any building, system,
  1 14 or physical operation which consumes more than forty thousand
  1 15 British thermal units (BTUs) per square foot per year.
  1 16    7.  "Initial cost" means the moneys required for the capital
  1 17 construction or renovation of a facility or the construction
  1 18 of an addition.
  1 19    10.  "Renovation" means a project where additions or
  1 20  alterations, that are not additions, to an existing facility
  1 21  exceed fifty percent of the value of a facility and will affect
  1 22 an energy system.
  1 23    Sec. 3.  Section 470.2, Code 2015, is amended to read as
  1 24 follows:
  1 25    470.2  Policy ==== analysis required.
  1 26    The general assembly declares that energy management is of
  1 27 primary importance in the design of publicly owned facilities.
  1 28 Commencing January 1, 1980 On or after the effective date of
  1 29 this division of this Act, a public agency responsible for the
  1 30 construction or renovation of a facility or the construction of
  1 31 an addition shall, in a design begun after that date, include
  1 32 as a design criterion the requirement that a life cycle cost
  1 33 analysis be conducted for the facility. The objectives of the
  1 34 life cycle cost analysis are to optimize energy efficiency at
  1 35 an acceptable life cycle cost. The life cycle cost analysis
  2  1 shall meet the requirements of section 470.3.
  2  2    Sec. 4.  Section 470.3, subsection 2, Code 2015, is amended
  2  3 to read as follows:
  2  4    2.  A public agency or a person preparing a life cycle cost
  2  5 analysis for a public agency shall consider the methods and
  2  6 analytical models provided by the authority and available
  2  7 through the commissioner, which are suited to the purpose
  2  8 for which the project is intended. Within sixty days of
  2  9 final selection of a design architect or engineer, a public
  2 10 agency, which is also a state agency under section 7D.34, shall
  2 11 notify the commissioner and the authority of the methodology
  2 12 to be used to perform the life cycle cost analysis, on forms
  2 13 provided by the authority use the methodology set forth in the
  2 14 guidelines established, by rule, by the commissioner.
  2 15    Sec. 5.  Section 470.4, Code 2015, is amended to read as
  2 16 follows:
  2 17    470.4  Analysis approved.
  2 18    The life cycle cost analysis shall be approved by the public
  2 19 agency before contracts for the construction or renovation
  2 20 of a facility or the construction of an addition are let. A
  2 21 public agency may accept a facility design and shall meet
  2 22 the requirements of this chapter if the design meets the
  2 23 operational requirements of the agency and provides the optimum
  2 24 life cycle cost. The public agency shall retain a copy of the
  2 25 life cycle cost analysis and a statement justifying a design
  2 26 decision both of which shall be available for public inspection
  2 27 at reasonable hours.
  2 28    Sec. 6.  Section 470.6, Code 2015, is amended to read as
  2 29 follows:
  2 30    470.6  Restriction on use of public funds.
  2 31    Public funds shall not be used for the construction or
  2 32 renovation of a facility or the construction of an addition
  2 33  unless the design for the work is prepared in accordance with
  2 34 this chapter and the actual construction or renovation of
  2 35 the facility or the construction of the addition meets the
  3  1 requirements of the design.
  3  2    Sec. 7.  Section 470.7, Code 2015, is amended to read as
  3  3 follows:
  3  4    470.7  Life cycle cost analysis ==== approval.
  3  5    1.  The public agency responsible for the new construction
  3  6 or renovation of a public facility or the construction of an
  3  7 addition to a public facility shall submit a copy of the life
  3  8 cycle cost analysis for review by the commissioner who shall
  3  9 consult with the authority. If the public agency is also a
  3 10 state agency under section 7D.34, comments by the authority
  3 11 or the commissioner, including any recommendation for changes
  3 12 in the analysis, shall, within thirty days of receipt of the
  3 13 analysis, be forwarded in writing to the public agency. If
  3 14 either the authority or the commissioner disagrees with any
  3 15 aspects of the life cycle cost analysis, the public agency
  3 16 affected shall timely respond in writing to the commissioner
  3 17 and the authority. The response shall indicate whether the
  3 18 agency intends to implement the recommendations and, if the
  3 19 agency does not intend to implement them, the public agency
  3 20 shall present its reasons. The reasons may include but are
  3 21 not limited to a description of the purpose of the facility or
  3 22 renovation, preservation of historical architectural features,
  3 23 architectural and site considerations, and health and safety
  3 24 concerns.
  3 25    2.  Within thirty days of receipt of the response of the
  3 26 public agency affected, the authority, the commissioner, or
  3 27 both, shall notify in writing the public agency affected of
  3 28 the authority's, the commissioner's, or both's agreement
  3 29 or disagreement with the response. In the event of a
  3 30 disagreement, the authority, the commissioner, or both, shall
  3 31 at the same time transmit the notification of disagreement
  3 32 with response and related papers to the executive council
  3 33 for resolution pursuant to section 7D.34. The life cycle
  3 34 cost analysis process, including submittal and approval, and
  3 35 implementation exemption requests pursuant to section 470.8,
  4  1 shall be completed prior to the letting of contracts for the
  4  2 construction or renovation of a facility or the construction
  4  3 of an addition.
  4  4    Sec. 8.  Section 470.8, Code 2015, is amended to read as
  4  5 follows:
  4  6    470.8  Life cycle cost analysis ==== implementation and
  4  7 exemptions.
  4  8    1.  The public agency responsible for the new construction
  4  9 or renovation of a public facility or the construction of an
  4 10 addition shall implement the recommendations of the life cycle
  4 11 cost analysis.
  4 12    2.  The commissioner shall adopt rules for the
  4 13 implementation and administration of the life cycle cost
  4 14 analysis.  The commissioner, in consultation with the director,
  4 15 shall, by rule, develop criteria to exempt facilities from
  4 16 the implementation requirements of this section. Using the
  4 17 criteria, the commissioner, in cooperation with the director,
  4 18 shall exempt facilities on a case by case basis. Factors to
  4 19 be considered when developing the exemption criteria shall
  4 20 include, but not be limited to, a description of the purpose
  4 21 of the facility or renovation, the preservation of historical
  4 22 architectural features, site considerations, and health and
  4 23 safety concerns. The commissioner and the director shall grant
  4 24 or deny a request for exemption from the requirements of this
  4 25 section within thirty days of receipt of the request.
  4 26                           DIVISION II
  4 27  SCIENCE, TECHNOLOGY, ENGINEERING, AND MATHEMATICS INTERNSHIP
  4 28    Sec. 9.  Section 15.411, subsection 3, Code 2015, is amended
  4 29 to read as follows:
  4 30    3.  a.  The authority shall establish and administer an
  4 31 internship program with two components for Iowa students.
  4 32 To the extent permitted by this subsection, the authority
  4 33 shall administer the two components in as similar a manner as
  4 34 possible. For purposes of this subsection, "Iowa student" means
  4 35 a student of an Iowa community college, private college, or
  5  1 institution of higher learning under the control of the state
  5  2 board of regents, or a student who graduated from high school
  5  3 in Iowa but now attends an institution of higher learning
  5  4 outside the state of Iowa.
  5  5    b.  The purpose of the first component of the program is
  5  6 to link Iowa students to small and medium sized Iowa firms
  5  7 through internship opportunities. An Iowa employer may receive
  5  8 financial assistance in an amount of one dollar for every
  5  9 two dollars paid by the employer to an intern on a matching
  5 10 basis for a portion of the wages paid to an intern.  If
  5 11 providing financial assistance, the authority  shall provide
  5 12 the assistance on a reimbursement basis such that for every
  5 13 two dollars of wages earned by the student, one dollar paid by
  5 14 the employer is matched by one dollar from the authority. The
  5 15 amount of financial assistance shall not exceed three thousand
  5 16 one hundred dollars for any single internship, or nine thousand
  5 17 three hundred dollars for any single employer. In order to be
  5 18 eligible to receive financial assistance under this paragraph,
  5 19 the employer must have five hundred or fewer employees and must
  5 20 be an innovative business. The authority shall encourage youth
  5 21 who reside in economically distressed areas, youth adjudicated
  5 22 to have committed a delinquent act, and youth transitioning out
  5 23 of foster care to participate in the first component of the
  5 24 internship program.
  5 25    c.  (1)  The purpose of the second component of the program
  5 26 is to assist in placing Iowa students studying in the fields
  5 27 of science, technology, engineering, and mathematics into
  5 28 internships that lead to permanent positions with Iowa
  5 29 employers. The authority shall collaborate with eligible
  5 30 employers, including but not limited to innovative businesses,
  5 31 to ensure that the interns hired are studying in such fields.
  5 32 An Iowa employer may receive financial assistance in an amount
  5 33 of one dollar for every dollar paid by the employer to an
  5 34 intern on a matching basis for a portion of the wages paid to
  5 35 an intern.  If providing financial assistance, the authority
  6  1 shall provide the assistance on a reimbursement basis such
  6  2 that for every two dollars of wages earned by the student,
  6  3 one dollar paid by the employer is matched by one dollar from
  6  4 the authority. The amount of financial assistance shall not
  6  5 exceed five thousand dollars per internship. The authority may
  6  6 adopt rules to administer this component.  In adopting rules to
  6  7 administer this component, the authority shall adopt rules as
  6  8 similar as possible to those adopted pursuant to paragraph "b".
  6  9    (2)  The requirement to administer this component of the
  6 10 internship program is contingent upon the provision of funding
  6 11 for such purposes by the general assembly.
  6 12    Sec. 10.  EMERGENCY RULES.  The economic development
  6 13 authority may adopt emergency rules under section 17A.4,
  6 14 subsection 3, and section 17A.5, subsection 2, paragraph "b",
  6 15 to implement the provisions of this division of this Act and
  6 16 the rules shall be effective immediately upon filing unless
  6 17 a later date is specified in the rules.  Any rules adopted
  6 18 in accordance with this section shall also be published as a
  6 19 notice of intended action as provided in section 17A.4.
  6 20    Sec. 11.  EFFECTIVE UPON ENACTMENT.  This division of this
  6 21 Act, being deemed of immediate importance, takes effect upon
  6 22 enactment.
  6 23    Sec. 12.  RETROACTIVE APPLICABILITY.  This division of this
  6 24 Act applies retroactively to July 1, 2014.
  6 25                          DIVISION III
  6 26                        ENTERPRISE ZONES
  6 27    Sec. 13.  2014 Iowa Acts, chapter 1130, section 43,
  6 28 subsection 1, is amended to read as follows:
  6 29    1.  On or after the effective date of this division of this
  6 30 Act, a city or county shall not create an enterprise zone under
  6 31 chapter 15E, division XVIII, or enter into a new agreement or
  6 32 amend an existing agreement under chapter 15E, division XVIII.
  6 33 A city or county and the economic development authority, with
  6 34 the approval of the economic development authority board, may
  6 35 amend an agreement for compliance reasons if the amendment
  7  1 does not increase the amount of incentives awarded under the
  7  2 agreement.
  7  3                           DIVISION IV
  7  4                  HOUSING ENTERPRISE TAX CREDIT
  7  5    Sec. 14.  2014 Iowa Acts, chapter 1130, is amended by adding
  7  6 the following new section:
  7  7    NEW SECTION.  SEC. 41A.  Notwithstanding the section of
  7  8 this Act repealing section 15E.193B, the economic development
  7  9 authority may enter into an agreement and issue housing
  7 10 enterprise tax credits to a housing business if all the
  7 11 following conditions are met:
  7 12    1.  The city or county in which the enterprise zone is
  7 13 located mailed, or caused to be mailed, the necessary program
  7 14 application forms on or after June 1, 2014, and prior to July
  7 15 1, 2014, but the applications were not received by the economic
  7 16 development authority.  The economic development authority may
  7 17 accept an affidavit by a city to confirm timely mailing of the
  7 18 application forms, notwithstanding section 622.105.
  7 19    2.  The application forms submitted pursuant to subsection 1
  7 20 were approved by all necessary governing bodies and commissions
  7 21 of the city or county as required by chapter 15E, division
  7 22 XVIII, Code 2014.
  7 23    3.  The economic development authority determines the
  7 24 housing business would otherwise be eligible under section
  7 25 15E.193B, Code 2014.
  7 26    4.  The city or county and the eligible housing business meet
  7 27 all other requirements of the housing enterprise tax credit
  7 28 program under chapter 15E, division XVIII, Code 2014, and the
  7 29 agreement to be entered into pursuant to this section.
  7 30    Sec. 15.  2014 Iowa Acts, chapter 1130, section 43,
  7 31 subsection 1, is amended to read as follows:
  7 32    1.  On or after the effective date of this division of this
  7 33 Act, a city or county shall not create an enterprise zone under
  7 34 chapter 15E, division XVIII, or enter into a new agreement or
  7 35 amend an existing agreement under chapter 15E, division XVIII,
  8  1 unless otherwise authorized in this Act.
  8  2    Sec. 16.  EFFECTIVE UPON ENACTMENT.  This division of this
  8  3 Act, being deemed of immediate importance, takes effect upon
  8  4 enactment.
  8  5    Sec. 17.  RETROACTIVE APPLICABILITY.  This division of this
  8  6 Act applies retroactively to July 1, 2014.
  8  7                           EXPLANATION
  8  8 The inclusion of this explanation does not constitute agreement with
  8  9 the explanation's substance by the members of the general assembly.
  8 10    This bill relates to economic development by modifying life
  8 11 cycle cost analysis provisions relating to public facilities,
  8 12 specifying the state matching funds available for payment
  8 13 of intern wages under the science, technology, engineering,
  8 14 and mathematics internship program, and modifying provisions
  8 15 concerning enterprise zones.
  8 16    Division I of the bill modifies provisions relating to the
  8 17 life cycle analysis required of certain public facilities.
  8 18 The division adds a definition of "addition" and modifies the
  8 19 definitions of "facility" and "renovation" and requires a
  8 20 public agency responsible for the construction or renovation
  8 21 of a facility or the construction of an addition to a facility
  8 22 to include the performance of a life cycle cost analysis as
  8 23 a design criterion on or after the effective date of the
  8 24 division.  The division requires a public agency or person
  8 25 preparing a life cycle cost analysis for a public agency to
  8 26 use methodology established, by rule, by the state building
  8 27 code commissioner, rather than methods and analytical
  8 28 models provided by the economic development authority.  The
  8 29 division requires the commissioner to also adopt rules for the
  8 30 implementation and adoption of the life cycle cost analysis.
  8 31    Division II of the bill amends language relating to wages
  8 32 paid to an intern under the science, technology, engineering,
  8 33 and mathematics internship program to specify that an Iowa
  8 34 employer may receive financial assistance from the state on a
  8 35 matching basis.  The division provides that if the authority
  9  1 offers financial assistance for a student at a small or
  9  2 medium sized Iowa firm that is an innovative business or for
  9  3 a science, technology, engineering, or mathematics student
  9  4 working with an Iowa employer, for every $2 earned by the
  9  5 student in wages, the employer's payment of $1 shall be
  9  6 matched by the authority with $1 on a reimbursement basis.
  9  7 The division requires the authority to administer the two
  9  8 components of the internship program in as similar a manner
  9  9 as possible. The division authorizes the authority to adopt
  9 10 emergency rules for this division of the bill.  The division
  9 11 takes effect upon enactment and applies retroactively to
  9 12 contracts for financial assistance entered into on or after
  9 13 July 1, 2014.
  9 14    Divisions III and IV of the bill relate to enterprise
  9 15 zones.  Division III allows a city or county and the economic
  9 16 development authority for compliance reasons to amend
  9 17 agreements made under the enterprise zone program as long as
  9 18 the amendments do not increase the amount of incentives awarded
  9 19 and the economic development authority board approves.
  9 20    Division IV allows the authority to enter into an agreement
  9 21 for a housing enterprise tax credit for certain housing
  9 22 businesses that had mailed applications to the authority prior
  9 23 to the July 1, 2014, repeal of the housing enterprise tax
  9 24 credit in Code section 15E.193B.
  9 25    The division states that the authority may enter into
  9 26 an agreement and issue housing enterprise tax credits to a
  9 27 housing business if the city or county mailed the application
  9 28 forms on or after June 1, 2014, and prior to July 1, 2014,
  9 29 but the applications were not received by the authority, the
  9 30 application forms submitted were approved by the necessary
  9 31 governing bodies and commissions, the authority determines
  9 32 the housing business would otherwise be eligible under the
  9 33 Code section that was repealed, and the city or county and the
  9 34 eligible housing business meet all other requirements of the
  9 35 housing enterprise tax credit program and of the agreement
 10  1 entered into with the economic development authority.
 10  2    The division takes effect upon enactment and applies
 10  3 retroactively to July 1, 2014.
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