Senate File 2289 - Reprinted SENATE FILE 2289 BY COMMITTEE ON COMMERCE (SUCCESSOR TO SSB 3109) (As Amended and Passed by the Senate March 5, 2024 ) A BILL FOR An Act relating to economic development and energy shortages 1 under the purview of the economic development authority and 2 governor, and providing penalties. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 SF 2289 (2) 90 jm/ko/mb
S.F. 2289 DIVISION I 1 ECONOMIC DEVELOPMENT PROGRAMS 2 Section 1. Section 15.106B, subsection 5, paragraph b, Code 3 2024, is amended by striking the paragraph. 4 Sec. 2. NEW SECTION . 15.106E Application or award —— 5 prohibition. 6 1. The authority may prohibit a person from receiving an 7 award of financial assistance, or from being selected as a 8 vendor to provide goods or services to the authority in any of 9 the following circumstances: 10 a. An act or omission by the person seriously affects or 11 threatens public health, public safety, or the environment. 12 b. The person is charged with or convicted of a crime 13 involving dishonesty. 14 c. An act or omission by the person indicates a lack of 15 integrity or honesty. 16 d. The person violates the terms of an agreement or 17 transaction that detrimentally impacts the integrity of a 18 program administered by the authority, or other governmental 19 entity as defined in section 8A.101. 20 e. A compelling cause exists that is relevant to and affects 21 the person’s obligations under the programs administered by the 22 authority, or is relevant to and affects the provision of goods 23 and services to the authority by a vendor. 24 2. Upon a determination by the authority, a person shall 25 be prohibited from receiving an award of financial assistance, 26 or from being selected as a vendor pursuant to subsection 1. 27 The authority shall provide written notice to the prohibited 28 person stating the reason for the prohibition. The authority 29 may immediately disqualify a prohibited person from receiving 30 financial assistance, or from being selected as a vendor. 31 3. A prohibited person may request a review of the 32 determination made by the authority pursuant to subsection 2. 33 a. The request to review the determination shall be made 34 within thirty-five calendar days of the date the authority 35 -1- SF 2289 (2) 90 jm/ko/mb 1/ 7
S.F. 2289 provided written notice to the prohibited person. The request 1 to review the determination must be in writing and state the 2 specific reasons or legal basis for review. 3 b. Within sixty calendar days of the receipt of the request 4 to review, the authority shall approve, deny, or modify the 5 determination, if the authority finds that the determination 6 is based on a clear error of material fact or law, or if the 7 authority finds the determination was arbitrary, capricious, or 8 an abuse of discretion. 9 c. The authority shall issue its decision in writing and 10 provide written notice of the decision to the prohibited 11 person. 12 d. The decision of the authority pursuant to this subsection 13 shall be considered final agency action. A petition for 14 judicial review of the decision of the authority shall be filed 15 pursuant to section 17A.19. 16 4. The authority shall adopt rules as necessary pursuant to 17 chapter 17A to administer this section. 18 Sec. 3. Section 15.108, subsection 2, Code 2024, is amended 19 by striking the subsection and inserting in lieu thereof the 20 following: 21 2. Marketing. To aid in all of the following: 22 a. The marketing and promotion of Iowa products and 23 services. 24 b. The promotion and development of the agricultural 25 processing industry in the state. 26 Sec. 4. Section 15.108, subsection 3, paragraph a, 27 subparagraph (5), Code 2024, is amended to read as follows: 28 (5) Encourage cities, counties, local and regional 29 government organizations, and local and regional economic 30 development organizations to develop and implement 31 comprehensive community and economic development plans. In 32 evaluating financial assistance applications, the authority 33 shall award supplementary credit to applications submitted by 34 cities, counties, local and regional government organizations, 35 -2- SF 2289 (2) 90 jm/ko/mb 2/ 7
S.F. 2289 and local and regional economic development organizations 1 that have developed a comprehensive community and economic 2 development plan. 3 Sec. 5. Section 15.108, subsection 4, Code 2024, is amended 4 by striking the subsection and inserting in lieu thereof the 5 following: 6 4. Exporting. To promote and aid in the marketing and 7 sale of Iowa industrial and agricultural products and services 8 outside of the state. To carry out this responsibility, the 9 authority shall: 10 a. Perform the duties and activities specified for the 11 agricultural marketing program under sections 15.201 and 12 15.202. 13 b. Seek assistance and advice from the Iowa district export 14 council which advises the United States department of commerce. 15 Sec. 6. Section 15.108, subsection 5, paragraph d, Code 16 2024, is amended to read as follows: 17 d. Coordinate with other divisions of the authority to add 18 Promote the contributions of Iowa’s recreation, tourism, and 19 leisure resources to the agricultural and other images which 20 characterize the state on a national level. 21 Sec. 7. Section 15.108, subsection 5, paragraph o, Code 22 2024, is amended by striking the paragraph. 23 Sec. 8. Section 15.108, subsection 6, paragraph c, Code 24 2024, is amended by striking the paragraph and inserting in 25 lieu thereof the following: 26 c. Provide aid for the development and implementation of 27 the Iowa targeted small business procurement Act established in 28 sections 73.15 through 73.22. 29 Sec. 9. Section 15.108, subsection 6, paragraphs f and g, 30 Code 2024, are amended by striking the paragraphs. 31 Sec. 10. Section 15.108, subsection 7, Code 2024, is amended 32 by striking the subsection. 33 Sec. 11. Section 15.108, subsection 10, paragraph b, 34 subparagraph (3), Code 2024, is amended to read as follows: 35 -3- SF 2289 (2) 90 jm/ko/mb 3/ 7
S.F. 2289 (3) Establish programs which assist communities or local 1 entities in developing housing to meet a range of community 2 needs, including programs to assist homeless shelter operations 3 and programs to assist in the development of housing to enhance 4 economic development opportunities in the community. 5 Sec. 12. Section 15.371, subsection 5, paragraph e, Code 6 2024, is amended to read as follows: 7 e. Employ a minimum of three full-time employees and no more 8 than seventy-five one hundred twenty-five full-time employees 9 across all of the manufacturer’s locations. 10 Sec. 13. NEW SECTION . 73.22 Reports. 11 1. By December 1 of each calendar year, the department of 12 administrative services shall provide a written summary to the 13 economic development authority of all activities undertaken 14 by the department of administrative services to maximize the 15 purposes of this subchapter during the immediately preceding 16 fiscal year. 17 2. By December 1 of each calendar year, the economic 18 development authority shall compile a list of the procurement 19 goals established pursuant to section 73.16, subsection 2, for 20 the prior fiscal year, and the performance of each agency or 21 department of state government having purchasing authority in 22 meeting the goals. The compilation shall be based upon the 23 reports required to be filed under section 73.16, subsection 2. 24 3. By January 15 of each calendar year, the economic 25 development authority shall submit to the governor and the 26 general assembly a summary of all reports required under this 27 section. 28 4. The director of the economic development authority, in 29 cooperation with the department of administrative services and 30 other state agencies shall do all of the following: 31 a. Publicize the targeted small business procurement goal 32 program to targeted small businesses and to agencies of state 33 government. 34 b. Identify targeted small businesses able to perform 35 -4- SF 2289 (2) 90 jm/ko/mb 4/ 7
S.F. 2289 contracts under the program. 1 c. Encourage targeted small businesses to participate in the 2 program. 3 Sec. 14. REPEAL. Sections 15.246, 15.271, and 15.272, Code 4 2024, are repealed. 5 DIVISION II 6 ENERGY SHORTAGES 7 Sec. 15. Section 12.28, subsection 6, Code 2024, is amended 8 to read as follows: 9 6. The maximum principal amount of financing agreements 10 which the treasurer of state can enter into shall be one 11 million dollars per state agency in a fiscal year, subject 12 to the requirements of section 8.46 . For the fiscal year, 13 the treasurer of state shall not enter into more than one 14 million dollars of financing agreements per state agency, 15 not considering interest expense. However, the treasurer 16 of state may enter into financing agreements in excess of 17 the one million dollar per agency per fiscal year limit if a 18 constitutional majority of each house of the general assembly, 19 or the legislative council if the general assembly is not in 20 session, and the governor, authorize the treasurer of state 21 to enter into additional financing agreements above the one 22 million dollar authorization contained in this section . The 23 treasurer of state shall not enter into a financing agreement 24 for real or personal property which is to be constructed for 25 use as a prison or prison-related facility without prior 26 authorization by a constitutional majority of each house of 27 the general assembly and approval by the governor of the use, 28 location, and maximum cost, not including interest expense, 29 of the real or personal property to be financed. However, 30 financing agreements for an energy conservation measure, as 31 defined in section 7D.34 , for an energy management improvement, 32 as defined in section 473.19 , or for costs associated with 33 projects under section 473.13A , are exempt from the provisions 34 of this subsection , but are subject to the requirements of 35 -5- SF 2289 (2) 90 jm/ko/mb 5/ 7
S.F. 2289 section 7D.34 . In addition, financing agreements funded 1 through the materials and equipment revolving fund established 2 in section 307.47 are exempt from the provisions of this 3 subsection . 4 Sec. 16. Section 279.53, Code 2024, is amended to read as 5 follows: 6 279.53 Loan proceeds. 7 The proceeds of loans issued to school districts pursuant to 8 section 279.48 , or 279.52 , or 473.20 shall be deposited into 9 either the general fund of a school district or the physical 10 plant and equipment levy fund. The board of directors shall 11 expend the amount of the principal and interest due each year 12 to maturity from the same fund into which the loan proceeds 13 were deposited. 14 Sec. 17. Section 298.3, subsection 1, paragraph g, Code 15 2024, is amended to read as follows: 16 g. Expenditures for energy conservation , including payments 17 made pursuant to a guarantee furnished by a school district 18 entering into a financing agreement for energy management 19 improvements, limited to agreements pursuant to section 473.19 , 20 473.20 , or 473.20A . 21 Sec. 18. Section 473.3, subsection 2, Code 2024, is amended 22 by striking the subsection. 23 Sec. 19. NEW SECTION . 473.4 Duties of the authority. 24 The authority shall do the following: 25 1. Periodically update the Iowa energy plan that identifies 26 objectives and strategies for developing the energy sector in 27 the state. 28 2. Administer and coordinate federal funds received for 29 energy conservation, energy management, and alternative and 30 renewable energy programs. 31 3. Apply for, receive, administer, and use federal or other 32 funds available for achieving the purposes of this chapter. 33 Sec. 20. NEW SECTION . 473.5 Energy security plan. 34 1. The governor or the governor’s designee shall maintain 35 -6- SF 2289 (2) 90 jm/ko/mb 6/ 7
S.F. 2289 an energy security plan. 1 2. The energy security plan shall include but is not limited 2 to the following: 3 a. A description of the circumstances that indicate an 4 actual or imminent acute shortage of usable energy, including 5 liquid fossil fuels. 6 b. Any action to be taken by the authority or relevant 7 agencies in response to an executive order by the governor 8 under section 473.8. 9 Sec. 21. REPEAL. Sections 473.13A, 473.15, 473.19, 10 473.19A, 473.20, 473.20A, and 473.41, Code 2024, are repealed. 11 Sec. 22. TRANSFER OF MONEYS. On the effective date of this 12 division of this Act, any moneys remaining in the building 13 energy management fund in section 473.19A, Code 2024, shall be 14 transferred to the general fund of the state. 15 -7- SF 2289 (2) 90 jm/ko/mb 7/ 7