Bill Text: IA SF2154 | 2015-2016 | 86th General Assembly | Introduced

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Bill Title: A bill for an act relating to the programs and duties of the economic development authority and including effective date provisions. (Formerly SSB 3050.)

Spectrum: Committee Bill

Status: (Engrossed - Dead) 2016-03-18 - Rereferred to Economic Growth. H.J. 507. [SF2154 Detail]

Download: Iowa-2015-SF2154-Introduced.html

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Senate File 2154 - Introduced




                                 SENATE FILE       
                                 BY  COMMITTEE ON ECONOMIC
                                     GROWTH

                                 (SUCCESSOR TO SSB
                                     3050)

                                      A BILL FOR

  1 An Act relating to the programs and duties of the economic
  2    development authority and including effective date
  3    provisions.
  4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
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PAG LIN



  1  1                           DIVISION I
  1  2                    LIFE CYCLE COST ANALYSES
  1  3    Section 1.  Section 470.1, Code 2016, 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 an existing facility.
  1  9    Sec. 2.  Section 470.1, subsections 6, 7, and 10, Code 2016,
  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 2016, 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 2016, 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 2016, 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 2016, 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 2016, 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 2016, 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 case=by=case basis.
  4 19 Factors to be considered when developing the exemption criteria
  4 20 shall include, but not be limited to, a description of the
  4 21 purpose of the facility or renovation, the preservation
  4 22 of historical architectural features, site considerations,
  4 23 and health and safety concerns. The commissioner and the
  4 24 director shall grant or deny a request for exemption from the
  4 25 requirements of this section within thirty days of receipt of
  4 26 the request.
  4 27    Sec. 9.  EFFECTIVE UPON ENACTMENT.  This division of this
  4 28 Act, being deemed of immediate importance, takes effect upon
  4 29 enactment.
  4 30                           DIVISION II
  4 31             HIGH QUALITY JOBS PROGRAM ==== DEFINITION
  4 32    Sec. 10.  Section 15.333, subsection 2, unnumbered paragraph
  4 33 1, Code 2016, is amended to read as follows:
  4 34    For purposes of this section, "new investment directly
  4 35 related to new jobs created by the project" investment" means the
  5  1 cost of machinery and equipment, as defined in section 427A.1,
  5  2 subsection 1, paragraphs "e" and "j", purchased for use in the
  5  3 operation of the eligible business, the purchase price of which
  5  4 has been depreciated in accordance with generally accepted
  5  5 accounting principles, the purchase price of real property and
  5  6 any buildings and structures located on the real property, and
  5  7 the cost of improvements made to real property which is used
  5  8 in the operation of the eligible business. "New investment
  5  9 directly related to new jobs created by the project" investment"
  5 10  also means the annual base rent paid to a third=party developer
  5 11 by an eligible business for a period not to exceed ten years,
  5 12 provided the cumulative cost of the base rent payments for that
  5 13 period does not exceed the cost of the land and the third=party
  5 14 developer's costs to build or renovate the building for the
  5 15 eligible business. The eligible business shall enter into a
  5 16 lease agreement with the third=party developer for a minimum
  5 17 of five years. If, however, within five years of purchase,
  5 18 the eligible business sells, disposes of, razes, or otherwise
  5 19 renders unusable all or a part of the land, buildings, or other
  5 20 existing structures for which tax credit was claimed under this
  5 21 section, the tax liability of the eligible business for the
  5 22 year in which all or part of the property is sold, disposed of,
  5 23 razed, or otherwise rendered unusable shall be increased by one
  5 24 of the following amounts:
  5 25    Sec. 11.  Section 15.333A, subsection 2, unnumbered
  5 26 paragraph 1, Code 2016, is amended to read as follows:
  5 27    For purposes of this section, "new investment directly
  5 28 related to new jobs created by the project" investment" means the
  5 29 cost of machinery and equipment, as defined in section 427A.1,
  5 30 subsection 1, paragraphs "e" and "j", purchased for use in the
  5 31 operation of the eligible business, the purchase price of which
  5 32 has been depreciated in accordance with generally accepted
  5 33 accounting principles, the purchase price of real property and
  5 34 any buildings and structures located on the real property, and
  5 35 the cost of improvements made to real property which is used
  6  1 in the operation of the eligible business. "New investment
  6  2 directly related to new jobs created by the project" investment"
  6  3  also means the annual base rent paid to a third=party developer
  6  4 by an eligible business for a period not to exceed ten years,
  6  5 provided the cumulative cost of the base rent payments for that
  6  6 period does not exceed the cost of the land and the third=party
  6  7 developer's costs to build or renovate the building for the
  6  8 eligible business. The eligible business shall enter into a
  6  9 lease agreement with the third=party developer for a minimum
  6 10 of five years. If, however, within five years of purchase,
  6 11 the eligible business sells, disposes of, razes, or otherwise
  6 12 renders unusable all or a part of the land, buildings, or other
  6 13 existing structures for which tax credit was claimed under this
  6 14 section, the tax liability of the eligible business for the
  6 15 year in which all or part of the property is sold, disposed of,
  6 16 razed, or otherwise rendered unusable shall be increased by one
  6 17 of the following amounts:
  6 18                          DIVISION III
  6 19     FEDERAL SMALL BUSINESS PROGRAMS ==== AUTHORITY ASSISTANCE
  6 20    Sec. 12.  Section 15.411, subsection 4, paragraphs a, b, and
  6 21 c, Code 2016, are amended to read as follows:
  6 22    a.  (1)  The authority shall establish and administer an
  6 23 outreach program for purposes of assisting businesses with
  6 24 applications to the federal small business innovation research
  6 25 and small business technology transfer programs.
  6 26    (2)  The goals of this assistance are to increase the number
  6 27 of successful phase II small business innovation research grant
  6 28 and contract proposals in the state, increase the amount of
  6 29 such grant and contract funds awarded in the state, stimulate
  6 30 subsequent investment by industry, venture capital, and other
  6 31 sources, and encourage businesses to commercialize promising
  6 32 technologies.
  6 33    b.  (1)  In administering the program, the authority may
  6 34 provide technical and financial assistance to businesses.
  6 35 Financial assistance provided pursuant to this subsection
  7  1 shall may be awarded to a business in an amount not to exceed
  7  2 twenty=five one hundred thousand dollars to for any single
  7  3 business individual federal award under this subsection.
  7  4    (2)  The authority may require successful applicants to
  7  5 repay the amount of financial assistance received, but shall
  7  6 not require unsuccessful applicants to repay such assistance.
  7  7 Any moneys repaid pursuant to this subsection may be used to
  7  8 provide financial assistance to other applicants.
  7  9    c.  The authority may also provide financial assistance
  7 10 for purposes of helping businesses meet the matching funds
  7 11  requirements of the federal small business innovation research
  7 12 and small business technology transfer programs.
  7 13                           DIVISION IV
  7 14                        ENTERPRISE ZONES
  7 15    Sec. 13.  2014 Iowa Acts, chapter 1130, section 43,
  7 16 subsection 1, is amended to read as follows:
  7 17    1.  On or after the effective date of this division of this
  7 18 Act, a city or county shall not create an enterprise zone under
  7 19 chapter 15E, division XVIII, or enter into a new agreement or
  7 20 amend an existing agreement under chapter 15E, division XVIII.
  7 21 A city or county and the economic development authority, with
  7 22 the approval of the economic development authority board, may
  7 23 amend an agreement for compliance reasons if the amendment
  7 24 does not increase the amount of incentives awarded under the
  7 25 agreement.
  7 26                           EXPLANATION
  7 27 The inclusion of this explanation does not constitute agreement with
  7 28 the explanation's substance by the members of the general assembly.
  7 29    This bill relates to the programs and duties of the
  7 30 economic development authority by modifying life cycle cost
  7 31 analysis provisions relating to public facilities, making
  7 32 technical changes pertaining to the high quality jobs program,
  7 33 modifying economic development authority (authority) assistance
  7 34 provisions related to the federal small business innovation
  7 35 research and small business technology transfer programs, and
  8  1 modifying provisions concerning enterprise zones.
  8  2    Division I of the bill modifies provisions relating to the
  8  3 life cycle analysis required of certain public facilities.
  8  4 The division adds a definition of "addition" and modifies the
  8  5 definitions of "facility" and "renovation" and requires a
  8  6 public agency responsible for the construction or renovation
  8  7 of a facility or the construction of an addition to a facility
  8  8 to include the performance of a life cycle cost analysis as
  8  9 a design criterion on or after the effective date of the
  8 10 division. The division requires a public agency or person
  8 11 preparing a life cycle cost analysis for a public agency to
  8 12 use methodology established, by rule, by the state building
  8 13 code commissioner, rather than methods and analytical
  8 14 models provided by the authority. The division requires the
  8 15 commissioner to also adopt rules for the implementation and
  8 16 adoption of the life cycle cost analysis. The division takes
  8 17 effect upon enactment.
  8 18    Division II of the bill makes technical changes related to
  8 19 the definition of a "new investment" under the high quality
  8 20 jobs program.
  8 21    Division III of the bill relates to the authority's business
  8 22 outreach program, which provides technical and financial
  8 23 assistance to businesses applying for federal small business
  8 24 innovation research and small business technology transfer
  8 25 program grants and contracts.
  8 26    Under current law, the authority is allowed to provide
  8 27 financial assistance of up to $25,000 to any single business
  8 28 and is allowed to provide such financial assistance as matching
  8 29 funds to allow a business to qualify for either federal
  8 30 program. The division provides that the authority may provide
  8 31 financial assistance of up to $100,000 to a business for any
  8 32 individual federal award under those programs and that the
  8 33 financial assistance may be used for any purpose to allow a
  8 34 business to meet federal program requirements.
  8 35    Division IV of the bill relates to enterprise zones.
  9  1 The division allows a city or county and the authority
  9  2 for compliance reasons to amend agreements made under the
  9  3 enterprise zone program as long as the amendments do not
  9  4 increase the amount of incentives awarded and the economic
  9  5 development authority board approves.
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