Iowa-2015-SF2154-Introduced
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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