Bill Text: IA HSB612 | 2015-2016 | 86th General Assembly | Introduced
Bill Title: A study bill relating to the programs and duties of the economic development authority and including effective date provisions.
Spectrum: Unknown
Status: (Introduced - Dead) 2016-02-17 - Voted - Economic Growth. [HSB612 Detail]
Download: Iowa-2015-HSB612-Introduced.html
House
Study
Bill
612
-
Introduced
SENATE/HOUSE
FILE
_____
BY
(PROPOSED
ECONOMIC
DEVELOPMENT
AUTHORITY
BILL)
A
BILL
FOR
An
Act
relating
to
the
programs
and
duties
of
the
economic
1
development
authority
and
including
effective
date
2
provisions.
3
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
4
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S.F.
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H.F.
_____
DIVISION
I
1
LIFE
CYCLE
COST
ANALYSES
2
Section
1.
Section
470.1,
Code
2016,
is
amended
by
adding
3
the
following
new
subsection:
4
NEW
SUBSECTION
.
01.
“Addition”
means
new
construction
equal
5
to
or
greater
than
twenty
thousand
square
feet
of
usable
floor
6
space
that
is
heated
or
cooled
by
a
mechanical
or
electrical
7
system
and
is
joined
to
an
existing
facility.
8
Sec.
2.
Section
470.1,
subsections
6,
7,
and
10,
Code
2016,
9
are
amended
to
read
as
follows:
10
6.
“Facility”
means
a
building
having
twenty
thousand
square
11
feet
or
more
of
usable
floor
space
that
is
heated
or
cooled
12
by
a
mechanical
or
electrical
system
or
any
building,
system,
13
or
physical
operation
which
consumes
more
than
forty
thousand
14
British
thermal
units
(BTUs)
per
square
foot
per
year
.
15
7.
“Initial
cost”
means
the
moneys
required
for
the
capital
16
construction
or
renovation
of
a
facility
or
the
construction
17
of
an
addition
.
18
10.
“Renovation”
means
a
project
where
additions
or
19
alterations
,
that
are
not
additions,
to
an
existing
facility
20
exceed
fifty
percent
of
the
value
of
a
facility
and
will
affect
21
an
energy
system.
22
Sec.
3.
Section
470.2,
Code
2016,
is
amended
to
read
as
23
follows:
24
470.2
Policy
——
analysis
required.
25
The
general
assembly
declares
that
energy
management
is
of
26
primary
importance
in
the
design
of
publicly
owned
facilities.
27
Commencing
January
1,
1980
On
or
after
the
effective
date
of
28
this
division
of
this
Act
,
a
public
agency
responsible
for
the
29
construction
or
renovation
of
a
facility
or
the
construction
of
30
an
addition
shall,
in
a
design
begun
after
that
date,
include
31
as
a
design
criterion
the
requirement
that
a
life
cycle
cost
32
analysis
be
conducted
for
the
facility.
The
objectives
of
the
33
life
cycle
cost
analysis
are
to
optimize
energy
efficiency
at
34
an
acceptable
life
cycle
cost.
The
life
cycle
cost
analysis
35
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S.F.
_____
H.F.
_____
shall
meet
the
requirements
of
section
470.3
.
1
Sec.
4.
Section
470.3,
subsection
2,
Code
2016,
is
amended
2
to
read
as
follows:
3
2.
A
public
agency
or
a
person
preparing
a
life
cycle
cost
4
analysis
for
a
public
agency
shall
consider
the
methods
and
5
analytical
models
provided
by
the
authority
and
available
6
through
the
commissioner,
which
are
suited
to
the
purpose
7
for
which
the
project
is
intended.
Within
sixty
days
of
8
final
selection
of
a
design
architect
or
engineer,
a
public
9
agency,
which
is
also
a
state
agency
under
section
7D.34
,
shall
10
notify
the
commissioner
and
the
authority
of
the
methodology
11
to
be
used
to
perform
the
life
cycle
cost
analysis,
on
forms
12
provided
by
the
authority
use
the
methodology
set
forth
in
the
13
guidelines
established,
by
rule,
by
the
commissioner
.
14
Sec.
5.
Section
470.4,
Code
2016,
is
amended
to
read
as
15
follows:
16
470.4
Analysis
approved.
17
The
life
cycle
cost
analysis
shall
be
approved
by
the
public
18
agency
before
contracts
for
the
construction
or
renovation
19
of
a
facility
or
the
construction
of
an
addition
are
let.
A
20
public
agency
may
accept
a
facility
design
and
shall
meet
21
the
requirements
of
this
chapter
if
the
design
meets
the
22
operational
requirements
of
the
agency
and
provides
the
optimum
23
life
cycle
cost.
The
public
agency
shall
retain
a
copy
of
the
24
life
cycle
cost
analysis
and
a
statement
justifying
a
design
25
decision
both
of
which
shall
be
available
for
public
inspection
26
at
reasonable
hours.
27
Sec.
6.
Section
470.6,
Code
2016,
is
amended
to
read
as
28
follows:
29
470.6
Restriction
on
use
of
public
funds.
30
Public
funds
shall
not
be
used
for
the
construction
or
31
renovation
of
a
facility
or
the
construction
of
an
addition
32
unless
the
design
for
the
work
is
prepared
in
accordance
with
33
this
chapter
and
the
actual
construction
or
renovation
of
34
the
facility
or
the
construction
of
the
addition
meets
the
35
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H.F.
_____
requirements
of
the
design.
1
Sec.
7.
Section
470.7,
Code
2016,
is
amended
to
read
as
2
follows:
3
470.7
Life
cycle
cost
analysis
——
approval.
4
1.
The
public
agency
responsible
for
the
new
construction
5
or
renovation
of
a
public
facility
or
the
construction
of
an
6
addition
to
a
public
facility
shall
submit
a
copy
of
the
life
7
cycle
cost
analysis
for
review
by
the
commissioner
who
shall
8
consult
with
the
authority.
If
the
public
agency
is
also
a
9
state
agency
under
section
7D.34
,
comments
by
the
authority
10
or
the
commissioner,
including
any
recommendation
for
changes
11
in
the
analysis,
shall,
within
thirty
days
of
receipt
of
the
12
analysis,
be
forwarded
in
writing
to
the
public
agency.
If
13
either
the
authority
or
the
commissioner
disagrees
with
any
14
aspects
of
the
life
cycle
cost
analysis,
the
public
agency
15
affected
shall
timely
respond
in
writing
to
the
commissioner
16
and
the
authority.
The
response
shall
indicate
whether
the
17
agency
intends
to
implement
the
recommendations
and,
if
the
18
agency
does
not
intend
to
implement
them,
the
public
agency
19
shall
present
its
reasons.
The
reasons
may
include
but
are
20
not
limited
to
a
description
of
the
purpose
of
the
facility
or
21
renovation,
preservation
of
historical
architectural
features,
22
architectural
and
site
considerations,
and
health
and
safety
23
concerns.
24
2.
Within
thirty
days
of
receipt
of
the
response
of
the
25
public
agency
affected,
the
authority,
the
commissioner,
or
26
both,
shall
notify
in
writing
the
public
agency
affected
of
27
the
authority’s,
the
commissioner’s,
or
both’s
agreement
28
or
disagreement
with
the
response.
In
the
event
of
a
29
disagreement,
the
authority,
the
commissioner,
or
both,
shall
30
at
the
same
time
transmit
the
notification
of
disagreement
31
with
response
and
related
papers
to
the
executive
council
32
for
resolution
pursuant
to
section
7D.34
.
The
life
cycle
33
cost
analysis
process,
including
submittal
and
approval,
and
34
implementation
exemption
requests
pursuant
to
section
470.8
,
35
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shall
be
completed
prior
to
the
letting
of
contracts
for
the
1
construction
or
renovation
of
a
facility
or
the
construction
2
of
an
addition
.
3
Sec.
8.
Section
470.8,
Code
2016,
is
amended
to
read
as
4
follows:
5
470.8
Life
cycle
cost
analysis
——
implementation
and
6
exemptions.
7
1.
The
public
agency
responsible
for
the
new
construction
8
or
renovation
of
a
public
facility
or
the
construction
of
an
9
addition
shall
implement
the
recommendations
of
the
life
cycle
10
cost
analysis.
11
2.
The
commissioner
shall
adopt
rules
for
the
12
implementation
and
administration
of
the
life
cycle
cost
13
analysis.
The
commissioner,
in
consultation
with
the
director,
14
shall,
by
rule,
develop
criteria
to
exempt
facilities
from
15
the
implementation
requirements
of
this
section
.
Using
the
16
criteria,
the
commissioner,
in
cooperation
with
the
director,
17
shall
exempt
facilities
on
a
case
by
case
case-by-case
basis.
18
Factors
to
be
considered
when
developing
the
exemption
criteria
19
shall
include,
but
not
be
limited
to,
a
description
of
the
20
purpose
of
the
facility
or
renovation,
the
preservation
21
of
historical
architectural
features,
site
considerations,
22
and
health
and
safety
concerns.
The
commissioner
and
the
23
director
shall
grant
or
deny
a
request
for
exemption
from
the
24
requirements
of
this
section
within
thirty
days
of
receipt
of
25
the
request.
26
Sec.
9.
EFFECTIVE
UPON
ENACTMENT.
This
division
of
this
27
Act,
being
deemed
of
immediate
importance,
takes
effect
upon
28
enactment.
29
DIVISION
II
30
HIGH
QUALITY
JOBS
PROGRAM
——
DEFINITION
31
Sec.
10.
Section
15.333,
subsection
2,
unnumbered
paragraph
32
1,
Code
2016,
is
amended
to
read
as
follows:
33
For
purposes
of
this
section
,
“new
investment
directly
34
related
to
new
jobs
created
by
the
project”
investment”
means
the
35
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H.F.
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cost
of
machinery
and
equipment,
as
defined
in
section
427A.1,
1
subsection
1
,
paragraphs
“e”
and
“j”
,
purchased
for
use
in
the
2
operation
of
the
eligible
business,
the
purchase
price
of
which
3
has
been
depreciated
in
accordance
with
generally
accepted
4
accounting
principles,
the
purchase
price
of
real
property
and
5
any
buildings
and
structures
located
on
the
real
property,
and
6
the
cost
of
improvements
made
to
real
property
which
is
used
7
in
the
operation
of
the
eligible
business.
“New
investment
8
directly
related
to
new
jobs
created
by
the
project”
investment”
9
also
means
the
annual
base
rent
paid
to
a
third-party
developer
10
by
an
eligible
business
for
a
period
not
to
exceed
ten
years,
11
provided
the
cumulative
cost
of
the
base
rent
payments
for
that
12
period
does
not
exceed
the
cost
of
the
land
and
the
third-party
13
developer’s
costs
to
build
or
renovate
the
building
for
the
14
eligible
business.
The
eligible
business
shall
enter
into
a
15
lease
agreement
with
the
third-party
developer
for
a
minimum
16
of
five
years.
If,
however,
within
five
years
of
purchase,
17
the
eligible
business
sells,
disposes
of,
razes,
or
otherwise
18
renders
unusable
all
or
a
part
of
the
land,
buildings,
or
other
19
existing
structures
for
which
tax
credit
was
claimed
under
this
20
section
,
the
tax
liability
of
the
eligible
business
for
the
21
year
in
which
all
or
part
of
the
property
is
sold,
disposed
of,
22
razed,
or
otherwise
rendered
unusable
shall
be
increased
by
one
23
of
the
following
amounts:
24
Sec.
11.
Section
15.333A,
subsection
2,
unnumbered
25
paragraph
1,
Code
2016,
is
amended
to
read
as
follows:
26
For
purposes
of
this
section
,
“new
investment
directly
27
related
to
new
jobs
created
by
the
project”
investment”
means
the
28
cost
of
machinery
and
equipment,
as
defined
in
section
427A.1,
29
subsection
1
,
paragraphs
“e”
and
“j”
,
purchased
for
use
in
the
30
operation
of
the
eligible
business,
the
purchase
price
of
which
31
has
been
depreciated
in
accordance
with
generally
accepted
32
accounting
principles,
the
purchase
price
of
real
property
and
33
any
buildings
and
structures
located
on
the
real
property,
and
34
the
cost
of
improvements
made
to
real
property
which
is
used
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H.F.
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in
the
operation
of
the
eligible
business.
“New
investment
1
directly
related
to
new
jobs
created
by
the
project”
investment”
2
also
means
the
annual
base
rent
paid
to
a
third-party
developer
3
by
an
eligible
business
for
a
period
not
to
exceed
ten
years,
4
provided
the
cumulative
cost
of
the
base
rent
payments
for
that
5
period
does
not
exceed
the
cost
of
the
land
and
the
third-party
6
developer’s
costs
to
build
or
renovate
the
building
for
the
7
eligible
business.
The
eligible
business
shall
enter
into
a
8
lease
agreement
with
the
third-party
developer
for
a
minimum
9
of
five
years.
If,
however,
within
five
years
of
purchase,
10
the
eligible
business
sells,
disposes
of,
razes,
or
otherwise
11
renders
unusable
all
or
a
part
of
the
land,
buildings,
or
other
12
existing
structures
for
which
tax
credit
was
claimed
under
this
13
section
,
the
tax
liability
of
the
eligible
business
for
the
14
year
in
which
all
or
part
of
the
property
is
sold,
disposed
of,
15
razed,
or
otherwise
rendered
unusable
shall
be
increased
by
one
16
of
the
following
amounts:
17
DIVISION
III
18
FEDERAL
SMALL
BUSINESS
PROGRAMS
——
AUTHORITY
ASSISTANCE
19
Sec.
12.
Section
15.411,
subsection
4,
paragraphs
a,
b,
and
20
c,
Code
2016,
are
amended
to
read
as
follows:
21
a.
(1)
The
authority
shall
establish
and
administer
an
22
outreach
program
for
purposes
of
assisting
businesses
with
23
applications
to
the
federal
small
business
innovation
research
24
and
small
business
technology
transfer
programs.
25
(2)
The
goals
of
this
assistance
are
to
increase
the
number
26
of
successful
phase
II
small
business
innovation
research
grant
27
and
contract
proposals
in
the
state,
increase
the
amount
of
28
such
grant
and
contract
funds
awarded
in
the
state,
stimulate
29
subsequent
investment
by
industry,
venture
capital,
and
other
30
sources,
and
encourage
businesses
to
commercialize
promising
31
technologies.
32
b.
(1)
In
administering
the
program,
the
authority
may
33
provide
technical
and
financial
assistance
to
businesses.
34
Financial
assistance
provided
pursuant
to
this
subsection
35
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_____
shall
may
be
awarded
to
a
business
in
an
amount
not
to
exceed
1
twenty-five
one
hundred
thousand
dollars
to
for
any
single
2
business
individual
federal
award
under
this
subsection
.
3
(2)
The
authority
may
require
successful
applicants
to
4
repay
the
amount
of
financial
assistance
received,
but
shall
5
not
require
unsuccessful
applicants
to
repay
such
assistance.
6
Any
moneys
repaid
pursuant
to
this
subsection
may
be
used
to
7
provide
financial
assistance
to
other
applicants.
8
c.
The
authority
may
also
provide
financial
assistance
9
for
purposes
of
helping
businesses
meet
the
matching
funds
10
requirements
of
the
federal
small
business
innovation
research
11
and
small
business
technology
transfer
programs.
12
DIVISION
IV
13
ENTERPRISE
ZONES
14
Sec.
13.
2014
Iowa
Acts,
chapter
1130,
section
43,
15
subsection
1,
is
amended
to
read
as
follows:
16
1.
On
or
after
the
effective
date
of
this
division
of
this
17
Act,
a
city
or
county
shall
not
create
an
enterprise
zone
under
18
chapter
15E,
division
XVIII,
or
enter
into
a
new
agreement
or
19
amend
an
existing
agreement
under
chapter
15E,
division
XVIII.
20
A
city
or
county
and
the
economic
development
authority,
with
21
the
approval
of
the
economic
development
authority
board,
may
22
amend
an
agreement
for
compliance
reasons
if
the
amendment
23
does
not
increase
the
amount
of
incentives
awarded
under
the
24
agreement.
25
EXPLANATION
26
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
27
the
explanation’s
substance
by
the
members
of
the
general
assembly.
28
This
bill
relates
to
the
programs
and
duties
of
the
29
economic
development
authority
by
modifying
life
cycle
cost
30
analysis
provisions
relating
to
public
facilities,
making
31
technical
changes
pertaining
to
the
high
quality
jobs
program,
32
modifying
economic
development
authority
(authority)
assistance
33
provisions
related
to
the
federal
small
business
innovation
34
research
and
small
business
technology
transfer
programs,
and
35
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S.F.
_____
H.F.
_____
modifying
provisions
concerning
enterprise
zones.
1
Division
I
of
the
bill
modifies
provisions
relating
to
the
2
life
cycle
analysis
required
of
certain
public
facilities.
3
The
division
adds
a
definition
of
“addition”
and
modifies
the
4
definitions
of
“facility”
and
“renovation”
and
requires
a
5
public
agency
responsible
for
the
construction
or
renovation
6
of
a
facility
or
the
construction
of
an
addition
to
a
facility
7
to
include
the
performance
of
a
life
cycle
cost
analysis
as
8
a
design
criterion
on
or
after
the
effective
date
of
the
9
division.
The
division
requires
a
public
agency
or
person
10
preparing
a
life
cycle
cost
analysis
for
a
public
agency
to
11
use
methodology
established,
by
rule,
by
the
state
building
12
code
commissioner,
rather
than
methods
and
analytical
13
models
provided
by
the
authority.
The
division
requires
the
14
commissioner
to
also
adopt
rules
for
the
implementation
and
15
adoption
of
the
life
cycle
cost
analysis.
The
division
takes
16
effect
upon
enactment.
17
Division
II
of
the
bill
makes
technical
changes
related
to
18
the
definition
of
a
“new
investment”
under
the
high
quality
19
jobs
program.
20
Division
III
of
the
bill
relates
to
the
authority’s
business
21
outreach
program,
which
provides
technical
and
financial
22
assistance
to
businesses
applying
for
federal
small
business
23
innovation
research
and
small
business
technology
transfer
24
program
grants
and
contracts.
25
Under
current
law,
the
authority
is
allowed
to
provide
26
financial
assistance
of
up
to
$25,000
to
any
single
business
27
and
is
allowed
to
provide
such
financial
assistance
as
matching
28
funds
to
allow
a
business
to
qualify
for
either
federal
29
program.
The
division
provides
that
the
authority
may
provide
30
financial
assistance
of
up
to
$100,000
to
a
business
for
any
31
individual
federal
award
under
those
programs
and
that
the
32
financial
assistance
may
be
used
for
any
purpose
to
allow
a
33
business
to
meet
federal
program
requirements.
34
Division
IV
of
the
bill
relates
to
enterprise
zones.
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The
division
allows
a
city
or
county
and
the
authority
1
for
compliance
reasons
to
amend
agreements
made
under
the
2
enterprise
zone
program
as
long
as
the
amendments
do
not
3
increase
the
amount
of
incentives
awarded
and
the
economic
4
development
authority
board
approves.
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