Senate
File
2308
-
Introduced
SENATE
FILE
2308
BY
COMMITTEE
ON
ECONOMIC
GROWTH/REBUILD
IOWA
(SUCCESSOR
TO
SSB
3110)
A
BILL
FOR
An
Act
relating
to
economic
development
by
affecting
programs,
1
tax
incentives,
and
project
completion
and
other
assistance
2
administered
by
the
economic
development
authority,
by
3
abolishing
the
film
tax
credit
program,
by
replacing
4
references
to
the
economic
development
fund
and
financial
5
assistance
program,
and
by
providing
spending
authority,
6
by
providing
for
properly
related
matters,
and
including
7
effective
date
and
retroactive
and
other
applicability
8
provisions.
9
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
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DIVISION
I
1
HIGH
QUALITY
JOBS
PROGRAM
AND
RELATED
ASSISTANCE
AND
PROGRAMS
2
Section
1.
Section
15.327,
subsections
2,
5,
7,
8,
10,
12,
3
and
13,
Code
Supplement
2011,
are
amended
to
read
as
follows:
4
2.
“Benefit”
has
the
same
meaning
as
defined
in
section
5
15G.101
means
nonwage
compensation
provided
to
an
employee
.
6
Benefits
typically
include
medical
and
dental
insurance
7
plans,
pension,
retirement,
and
profit-sharing
plans,
child
8
care
services,
life
insurance
coverage,
vision
insurance
9
coverage,
disability
insurance
coverage,
and
any
other
nonwage
10
compensation
as
determined
by
the
board.
11
5.
“Created
job”
has
the
same
meaning
as
defined
in
section
12
15G.101
means
a
new,
permanent,
full-time
equivalent
position
13
added
to
a
business’s
payroll
in
excess
of
the
business’s
base
14
employment
level
.
15
7.
“Fiscal
impact
ratio”
has
the
same
meaning
as
defined
16
in
section
15G.101
means
a
ratio
calculated
by
estimating
the
17
amount
of
taxes
to
be
received
from
a
business
by
the
state
18
and
dividing
the
estimate
by
the
estimated
cost
to
the
state
19
of
providing
certain
project
completion
assistance
and
tax
20
incentives
to
the
business,
reflecting
a
ten-year
period
and
21
expressed
in
terms
of
current
dollars
.
For
purposes
of
the
22
program,
“fiscal
impact
ratio”
does
not
include
taxes
received
23
by
political
subdivisions.
24
8.
“Maintenance
period
completion
date”
has
the
same
meaning
25
as
defined
in
section
15G.101
means
the
date
on
which
the
26
maintenance
period
ends
.
27
10.
“Project
completion
date”
has
the
same
meaning
as
28
defined
in
section
15G.101
means
the
date
by
which
a
recipient
29
of
project
completion
assistance
has
agreed
to
meet
all
the
30
terms
and
obligations
contained
in
an
agreement
with
the
31
authority
.
32
12.
“Qualifying
wage
threshold”
has
the
same
meaning
as
33
defined
in
section
15G.101
means
the
laborshed
wage
for
an
34
eligible
business
.
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13.
“Retained
job”
has
the
same
meaning
as
defined
in
1
section
15G.101
means
a
full-time
equivalent
position,
in
2
existence
at
the
time
an
employer
applies
for
financial
3
assistance
which
remains
continuously
filled
and
which
is
at
4
risk
of
elimination
if
the
project
for
which
the
employer
is
5
seeking
assistance
does
not
proceed
.
6
Sec.
2.
Section
15.327,
Code
Supplement
2011,
is
amended
by
7
adding
the
following
new
subsections:
8
NEW
SUBSECTION
.
1A.
“Base
employment
level”
means
the
9
number
of
full-time
equivalent
positions
at
a
business,
10
as
established
by
the
authority
and
a
business
using
the
11
business’s
payroll
records,
as
of
the
date
a
business
applies
12
for
incentives
or
project
completion
assistance
under
the
13
program.
14
NEW
SUBSECTION
.
2A.
“Business
engaged
in
disaster
recovery”
15
means
a
business
located
in
an
area
declared
a
disaster
area
16
by
a
federal
official,
that
has
sustained
substantial
physical
17
damage,
that
has
closed
as
the
result
of
a
natural
disaster,
18
and
that
has
a
plan
for
reopening
that
includes
employing
a
19
substantial
number
of
the
employees
the
business
employed
20
before
the
natural
disaster
occurred.
21
NEW
SUBSECTION
.
6A.
“Financial
assistance”
means
assistance
22
provided
only
from
the
funds,
rights,
and
assets
legally
23
available
to
the
authority
pursuant
to
this
chapter
and
24
includes
but
is
not
limited
to
assistance
in
the
form
of
25
grants,
loans,
forgivable
loans,
and
royalty
payments.
26
NEW
SUBSECTION
.
7A.
“Full-time
equivalent
position”
means
27
a
non-part-time
position
for
the
number
of
hours
or
days
per
28
week
considered
to
be
full-time
work
for
the
kind
of
service
29
or
work
performed
for
an
employer.
Typically,
a
full-time
30
equivalent
position
requires
two
thousand
eighty
hours
of
work
31
in
a
calendar
year,
including
all
paid
holidays,
vacations,
32
sick
time,
and
other
paid
leave.
33
NEW
SUBSECTION
.
7B.
“Fund”
means
a
fund
created
pursuant
34
to
section
15.335B.
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NEW
SUBSECTION
.
7C.
“Laborshed
wage”
means
the
wage
level
1
represented
by
those
wages
within
two
standard
deviations
2
from
the
mean
wage
within
the
laborshed
area
in
which
the
3
eligible
business
is
located,
as
calculated
by
the
authority,
4
by
rule,
using
the
most
current
covered
wage
and
employment
5
data
available
from
the
department
of
workforce
development
for
6
the
laborshed
area.
7
NEW
SUBSECTION
.
7D.
“Maintenance
period”
means
the
period
8
of
time
between
the
project
completion
date
and
the
maintenance
9
period
completion
date.
10
NEW
SUBSECTION
.
8A.
“Necessary
physical
infrastructure
11
project”
means
a
project
that
creates
necessary
infrastructure
12
for
economic
success
throughout
Iowa,
provides
the
foundation
13
for
the
creation
of
jobs,
and
involves
the
investment
of
14
a
substantial
amount
of
capital.
Physical
infrastructure
15
projects
include
but
are
not
limited
to
projects
involving
16
any
mode
of
transportation;
public
works
and
utilities
such
17
as
sewer,
water,
power,
or
telecommunications;
physical
18
improvements
that
mitigate,
prevent,
or
eliminate
environmental
19
contamination;
and
other
similar
projects
deemed
to
be
physical
20
infrastructure
by
the
authority.
21
NEW
SUBSECTION
.
9A.
“Program
support”
means
the
services
22
necessary
for
the
efficient
administration
of
this
part,
23
including
the
delivery
of
program
services
to
eligible
24
businesses.
“Program
support”
may
include
the
administrative
25
costs
of
providing
project
assistance,
conducting
a
statewide
26
laborshed
study
in
coordination
with
the
department
of
27
workforce
development,
outreach
to
business
and
marketing
of
28
programs,
the
procurement
of
technical
assistance,
and
the
29
implementation
of
information
technology.
30
NEW
SUBSECTION
.
9B.
“Project
completion
assistance”
means
31
financial
assistance
or
technical
assistance
provided
to
32
an
eligible
business
in
order
to
facilitate
the
start-up,
33
location,
or
expansion
of
the
business
in
this
state
and
34
provided
in
an
expedient
manner
to
ensure
the
successful
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completion
of
the
start-up,
location,
or
expansion
project.
1
NEW
SUBSECTION
.
10A.
“Project
completion
period”
means
the
2
period
of
time
between
the
date
financial
assistance
is
awarded
3
and
the
project
completion
date.
4
Sec.
3.
Section
15.329,
subsection
1,
unnumbered
paragraph
5
1,
Code
Supplement
2011,
is
amended
to
read
as
follows:
6
To
be
eligible
to
receive
incentives
or
assistance
7
under
this
part,
a
business
shall
meet
all
of
the
following
8
requirements:
9
Sec.
4.
Section
15.329,
subsection
1,
paragraph
b,
Code
10
Supplement
2011,
is
amended
to
read
as
follows:
11
b.
(1)
The
business
has
not
closed
or
substantially
12
reduced
operations
in
one
area
of
this
state
and
relocated
13
substantially
the
same
operations
in
a
community
in
another
14
area
of
this
state
shall
not
be
solely
relocating
operations
15
from
one
area
of
the
state
while
seeking
state
or
local
16
incentives
.
A
project
that
does
not
create
new
jobs
or
17
involve
a
substantial
amount
of
new
capital
investment
shall
18
be
presumed
to
be
a
relocation.
In
determining
whether
a
19
business
is
solely
relocating
operations
for
purposes
of
this
20
subparagraph,
the
authority
shall
consider
a
letter
of
support
21
for
the
move
from
the
affected
local
community.
22
(2)
The
business
shall
not
be
in
the
process
of
reducing
23
operations
in
one
community
while
simultaneously
applying
24
for
assistance
under
the
program.
For
purposes
of
this
25
subparagraph,
a
reduction
in
operations
within
twelve
months
26
before
or
after
an
application
for
assistance
is
submitted
to
27
the
authority
shall
be
presumed
to
be
a
reduction
in
operations
28
while
simultaneously
applying
for
assistance
under
the
program.
29
(3)
This
paragraph
shall
not
be
construed
to
prohibit
30
a
business
from
expanding
its
operation
in
a
community
if
31
existing
operations
of
a
similar
nature
in
this
state
are
not
32
closed
or
substantially
reduced.
33
Sec.
5.
Section
15.329,
subsection
1,
paragraph
c,
34
subparagraphs
(1)
and
(2),
Code
Supplement
2011,
are
amended
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to
read
as
follows:
1
(1)
If
the
business
is
creating
jobs,
the
business
shall
2
demonstrate
that
the
jobs
will
pay
at
least
one
hundred
percent
3
of
the
qualifying
wage
threshold
at
the
start
of
the
project
4
completion
period,
at
least
one
hundred
thirty
twenty
percent
5
of
the
qualifying
wage
threshold
by
the
project
completion
6
date,
and
at
least
one
hundred
thirty
twenty
percent
of
7
the
qualifying
wage
threshold
until
the
maintenance
period
8
completion
date.
9
(2)
If
the
business
is
retaining
jobs,
the
business
10
shall
demonstrate
that
the
jobs
retained
will
pay
at
least
11
one
hundred
thirty
twenty
percent
of
the
qualifying
wage
12
threshold
throughout
both
the
project
completion
period
and
the
13
maintenance
period.
14
Sec.
6.
Section
15.329,
subsection
2,
Code
Supplement
2011,
15
is
amended
by
striking
the
subsection.
16
Sec.
7.
Section
15.330,
Code
Supplement
2011,
is
amended
to
17
read
as
follows:
18
15.330
Agreement.
19
A
business
shall
enter
into
an
agreement
with
the
authority
20
specifying
the
requirements
that
must
be
met
to
confirm
21
eligibility
pursuant
to
this
part.
The
authority
shall
may
22
consult
with
the
community
during
negotiations
relating
to
the
23
agreement.
The
agreement
shall
contain,
at
a
minimum,
the
24
following
provisions:
25
1.
A
business
that
is
approved
to
receive
incentives
26
or
assistance
under
this
part
shall,
for
the
length
of
the
27
agreement,
certify
annually
to
the
authority
the
compliance
of
28
the
business
with
the
requirements
of
the
agreement.
If
the
29
business
receives
a
local
property
tax
exemption,
the
business
30
shall
also
certify
annually
to
the
community
the
compliance
of
31
the
business
with
the
requirements
of
the
agreement.
32
2.
The
repayment
of
incentives
or
financial
assistance
33
by
the
business
if
the
business
does
not
meet
any
of
the
34
requirements
of
this
part
or
the
resulting
agreement.
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3.
If
a
business
that
is
approved
to
receive
incentives
1
or
assistance
under
this
part
experiences
a
layoff
within
the
2
state
or
closes
any
of
its
facilities
within
the
state,
the
3
authority
shall
have
the
discretion
to
reduce
or
eliminate
4
some
or
all
of
the
incentives
or
assistance
.
If
a
business
5
has
received
incentives
or
assistance
under
this
part
and
6
experiences
a
layoff
within
the
state
or
closes
any
of
its
7
facilities
within
the
state,
the
business
may
be
subject
to
8
repayment
of
all
or
a
portion
of
the
incentives
or
financial
9
assistance
that
it
has
received.
10
4.
A
project
completion
date,
a
maintenance
period
11
completion
date,
the
number
of
jobs
to
be
created
or
retained,
12
or
certain
other
terms
and
obligations
described
in
section
13
15G.112,
subsection
1
,
paragraph
“d”
,
as
the
authority
14
deems
necessary
in
order
to
make
the
requirements
in
project
15
agreements
uniform.
The
authority,
with
the
approval
of
16
the
board,
may
adopt
rules
as
necessary
for
making
such
17
requirements
uniform.
Such
rules
shall
be
in
compliance
with
18
the
provisions
of
this
part
and
with
the
provisions
of
chapter
19
15G
.
20
5.
The
amount
and
type
of
project
completion
assistance
to
21
be
provided
under
section
15.335B.
22
6.
The
amount
of
matching
funds
to
be
received
by
a
business
23
from
a
city
or
county.
The
authority
shall
adopt
by
rule
a
24
formula
for
determining
the
amount
of
matching
funds
required
25
under
the
program.
26
7.
The
business
shall
not
be
relocating
or
reducing
27
operations
as
described
in
section
15.329,
subsection
1,
28
paragraph
“b”
.
29
8.
The
proposed
project
shall
not
negatively
impact
other
30
businesses
in
competition
with
the
business
being
considered
31
for
assistance.
The
authority
shall
make
a
good-faith
effort
32
to
identify
existing
Iowa
businesses
within
an
industry
in
33
competition
with
the
business
being
considered
for
incentives
34
or
assistance.
The
authority
shall
make
a
good-faith
effort
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to
determine
the
probability
that
the
proposed
incentives
or
1
assistance
will
displace
employees
of
the
existing
businesses.
2
In
determining
the
impact
on
businesses
in
competition
with
the
3
business
being
considered
for
incentives
or
assistance,
jobs
4
created
or
retained
as
a
result
of
other
jobs
being
displaced
5
elsewhere
in
the
state
shall
not
be
considered
direct
jobs
6
created
or
retained.
7
9.
A
report
submitted
to
the
authority
with
its
application
8
describing
all
violations
of
environmental
law
or
worker
9
safety
law
within
the
last
five
years.
If,
upon
review
of
the
10
application,
the
authority
finds
that
a
business
has
a
record
11
of
violations
of
the
law,
statutes,
rules,
or
regulations
that
12
tends
to
show
a
consistent
pattern,
the
authority
shall
not
13
provide
incentives
or
assistance
to
the
business
unless
the
14
authority
finds
either
that
the
violations
did
not
seriously
15
affect
public
health,
public
safety,
or
the
environment,
or,
16
if
such
violations
did
seriously
affect
public
health,
public
17
safety,
or
the
environment,
that
mitigating
circumstances
were
18
present.
19
10.
That
the
business
shall
only
employ
individuals
legally
20
authorized
to
work
in
this
state.
In
addition
to
any
and
21
all
other
applicable
penalties
provided
by
current
law,
all
22
or
a
portion
of
the
incentives
or
assistance
received
under
23
this
part
by
a
business
that
is
found
to
knowingly
employ
24
individuals
not
legally
authorized
to
work
in
this
state
is
25
subject
to
recapture
by
the
authority
or
by
the
department
of
26
revenue.
27
11.
Any
terms
deemed
necessary
by
the
authority
to
effect
28
compliance
with
the
eligibility
requirements
of
section
15.329.
29
Sec.
8.
NEW
SECTION
.
15.330A
Maintenance
of
agreements.
30
1.
An
eligible
business
receiving
incentives
or
assistance
31
under
this
part
shall
meet
all
terms
and
obligations
in
an
32
agreement
by
the
project
completion
date,
but
the
board
may
33
for
good
cause
extend
the
project
completion
date
or
otherwise
34
amend
an
agreement.
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2.
During
the
maintenance
period
an
eligible
business
1
receiving
incentives
or
assistance
under
this
part
shall
2
continue
to
comply
with
the
terms
and
obligations
of
an
3
agreement
entered
into
pursuant
to
section
15.330.
4
3.
The
authority
may
enforce
the
terms
of
an
agreement
as
5
necessary
and
appropriate.
6
Sec.
9.
Section
15.335A,
subsection
1,
unnumbered
paragraph
7
1,
Code
Supplement
2011,
is
amended
to
read
as
follows:
8
Tax
incentives
are
available
to
eligible
businesses
as
9
provided
in
this
section
.
The
incentives
are
based
upon
the
10
number
of
jobs
created
or
retained
that
pay
at
least
one
11
hundred
thirty
twenty
percent
of
the
qualifying
wage
threshold
12
as
computed
pursuant
to
section
15G.112,
subsection
4
,
and
13
the
amount
of
the
qualifying
investment
made
according
to
the
14
following
schedule:
15
Sec.
10.
Section
15.335A,
subsection
2,
paragraphs
b,
c,
16
f,
and
g,
Code
Supplement
2011,
are
amended
by
striking
the
17
paragraphs.
18
Sec.
11.
Section
15.335A,
subsections
3
through
5,
Code
19
Supplement
2011,
are
amended
to
read
as
follows:
20
3.
A
community
may
apply
to
the
economic
development
21
authority
for
a
project-specific
waiver
from
the
qualifying
22
wage
threshold
requirement
provided
in
subsection
1
in
order
to
23
seek
tax
incentives
for
an
eligible
business.
The
authority
24
may
grant
a
project-specific
waiver
from
the
qualifying
25
wage
threshold
requirement
in
subsection
1
for
the
remainder
26
of
a
calendar
year
,
based
on
county
wage
or
regional
wage
27
calculations
brought
forth
by
the
applicant
county
including
28
but
not
limited
to
any
of
the
following:
29
a.
The
county
wage
calculated
without
wage
data
from
30
the
business
in
the
county
employing
the
greatest
number
of
31
full-time
employees
if
the
community
meets
the
requirements
of
32
an
economically
distressed
community
pursuant
to
15.335C
.
33
b.
The
regional
wage
calculated
without
wage
data
from
up
to
34
two
adjacent
counties.
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c.
The
county
wage
calculated
without
wage
data
from
the
1
largest
city
in
the
county.
2
d.
A
qualifying
wage
guideline
for
a
specific
project
based
3
upon
unusual
economic
circumstances
present
in
the
city
or
4
county.
5
e.
The
annualized,
average
hourly
wage
paid
by
all
6
businesses
in
the
county
located
outside
the
largest
city
of
7
the
county.
8
f.
The
annualized,
average
hourly
wage
paid
by
all
9
businesses
other
than
the
largest
employer
in
the
entire
10
county.
11
4.
Each
calendar
year,
the
authority
shall
not
approve
12
more
than
three
million
six
hundred
thousand
dollars
worth
of
13
investment
tax
credits
for
projects
with
qualifying
investments
14
of
less
than
one
million
dollars.
15
5.
4.
The
authority
shall
negotiate
the
amount
of
16
tax
incentives
provided
to
an
applicant
under
the
program
17
in
accordance
with
this
section
and
section
15G.112
,
as
18
applicable
.
19
Sec.
12.
NEW
SECTION
.
15.335B
Assistance
for
certain
20
programs
and
projects.
21
1.
a.
Under
the
authority
provided
in
section
15.106A,
22
there
shall
be
established
one
or
more
funds
within
the
state
23
treasury,
under
the
control
of
the
authority,
to
be
used
for
24
purposes
of
this
section.
25
b.
A
fund
established
for
purposes
of
this
section
shall
26
consist
of
the
moneys
appropriated
or
otherwise
provided
for
27
purposes
of
this
section.
28
c.
Interest
or
earnings
on
moneys
appropriated
or
provided
29
to
a
fund
to
be
used
for
the
purposes
of
this
section,
and
30
all
repayments
or
recaptures
of
the
assistance
provided
under
31
this
section,
shall
accrue
to
the
authority
and
shall
be
used
32
for
purposes
of
this
section,
notwithstanding
section
12C.7.
33
Moneys
in
a
fund
are
not
subject
to
section
8.33.
34
2.
a.
Moneys
appropriated
or
provided
pursuant
to
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subsection
1
shall
be
allocated
by
the
authority
in
appropriate
1
amounts
to
be
used
for
the
following
purposes:
2
(1)
For
providing
project
completion
assistance
to
eligible
3
businesses
under
this
part
and
for
program
support
of
such
4
assistance.
5
(2)
For
providing
economic
development
region
financial
6
assistance
under
section
15E.232,
subsections
1,
3,
4,
5,
and
7
6.
8
(3)
For
providing
financial
assistance
for
business
9
accelerators
pursuant
to
section
15E.351.
10
(4)
For
deposit
in
the
innovation
and
commercialization
11
fund
created
pursuant
to
section
15.412.
12
(5)
For
providing
financial
assistance
to
businesses
or
13
communities
engaged
in
necessary
physical
infrastructure
14
projects.
15
(6)
For
providing
financial
assistance
to
businesses
16
engaged
in
disaster
recovery.
17
(7)
For
providing
financial
assistance
to
Iowa’s
councils
18
of
governments.
19
b.
Each
fiscal
year,
the
authority
shall
estimate
the
20
amount
of
revenues
available
for
purposes
of
this
section
and
21
shall
develop
a
budget
appropriate
for
the
expenditure
of
the
22
revenues
available.
23
3.
In
providing
assistance
under
this
section,
the
24
authority
shall
make
a
determination
as
to
the
amount
and
25
type
of
assistance
that
is
most
appropriate
for
facilitating
26
the
successful
completion
of
an
eligible
business’s
project.
27
Before
making
such
a
determination,
the
authority
shall
do
all
28
of
the
following:
29
a.
Consider
a
business’s
eligibility
for
the
tax
incentives
30
available
under
section
15.335A
and
ensure
that
the
amount
of
31
assistance
to
be
provided
appropriately
complements
the
amount
32
and
type
of
tax
incentives
to
be
provided.
33
b.
Consider
the
amount
of
private
sector
investment
to
be
34
leveraged
by
the
project,
including
the
eligible
business’s
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equity
investment,
debt
financing,
and
any
venture
capital
or
1
foreign
investment
available,
and
make
a
good-faith
effort
to
2
provide
only
the
amount
of
incentives
and
assistance
necessary
3
to
facilitate
the
project’s
successful
completion.
4
c.
Consider
the
amount
and
type
of
the
local
community
5
match.
The
authority
may
provide
assistance
to
an
early-stage
6
business
in
a
high-growth
industry
regardless
of
the
amount
of
7
local
match
involved.
8
d.
Calculate
the
fiscal
impact
ratio
of
the
project
and
use
9
it
to
guide
the
provision
of
incentives
and
assistance
under
10
this
part.
11
e.
Evaluate
the
quality
of
the
project
based
on
the
factors
12
described
in
section
15.329,
subsection
5,
and
any
other
13
relevant
factors.
14
f.
Ensure
that
the
combined
amount
of
incentives
and
15
assistance
are
appropriate
to
the
size
of
the
project,
to
16
the
value
of
the
project,
to
the
fiscal
impact
ratio
of
the
17
project,
and
to
any
other
relevant
factors.
18
4.
Each
eligible
business
receiving
assistance
under
this
19
section
shall
enter
into
an
agreement
with
the
authority
and
20
the
agreement
shall
meet
the
requirements
of
sections
15.330
21
and
15.330A.
22
Sec.
13.
NEW
SECTION
.
15.335C
Economically
distressed
23
areas.
24
1.
a.
Notwithstanding
section
15.329,
subsection
1,
25
paragraph
“c”
,
the
authority
may
provide
tax
incentives
or
26
project
completion
assistance
under
this
part
to
an
eligible
27
business
paying
less
than
one
hundred
twenty
percent
of
the
28
qualifying
wage
threshold
if
that
business
is
located
in
an
29
economically
distressed
area.
30
b.
A
business
in
an
economically
distressed
area
receiving
31
incentives
or
assistance
pursuant
to
this
section
shall
be
32
required
to
pay
at
least
one
hundred
percent
of
the
qualifying
33
wage
threshold.
34
2.
For
purposes
of
this
section,
“economically
distressed
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area”
means
a
county
that
ranks
among
the
bottom
twenty-five
of
1
all
Iowa
counties,
as
measured
by
one
of
the
following:
2
a.
Average
monthly
unemployment
level
for
the
most
recent
3
twelve-month
period.
4
b.
Average
annualized
unemployment
level
for
the
most
recent
5
five-year
period.
6
Sec.
14.
Section
15A.7,
subsection
3,
Code
Supplement
2011,
7
is
amended
to
read
as
follows:
8
3.
That
the
employer
shall
agree
to
pay
wages
for
the
jobs
9
for
which
the
credit
is
taken
of
at
least
the
county
wage
or
10
the
regional
laborshed
wage,
as
calculated
by
the
authority
11
pursuant
to
section
15G.112
15.327
,
subsection
3
,
whichever
12
is
lower
7C
.
Eligibility
for
the
supplemental
credit
shall
13
be
based
on
a
one-time
determination
of
starting
wages
by
the
14
community
college.
15
Sec.
15.
Section
15E.193,
subsection
1,
paragraph
b,
16
subparagraph
(1),
Code
Supplement
2011,
is
amended
to
read
as
17
follows:
18
(1)
The
business
shall
provide
a
sufficient
package
of
19
benefits
to
each
employee
holding
a
created
or
retained
job.
20
For
purposes
of
this
paragraph,
“created
job”
and
“retained
job”
21
have
the
same
meaning
as
defined
in
section
15G.101
15.327
.
22
Sec.
16.
Section
15E.193,
subsection
1,
paragraphs
c
and
d,
23
Code
Supplement
2011,
are
amended
to
read
as
follows:
24
c.
The
business
shall
pay
a
wage
that
is
at
least
ninety
25
percent
of
the
qualifying
wage
threshold.
For
purposes
of
this
26
paragraph,
“qualifying
wage
threshold”
has
the
same
meaning
as
27
defined
in
section
15G.101
15.327
.
28
d.
Creates
or
retains
at
least
ten
full-time
equivalent
29
positions
and
maintains
them
until
the
maintenance
period
30
completion
date.
For
purposes
of
this
paragraph,
“maintenance
31
period
completion
date”
and
“full-time
equivalent
position”
have
32
the
same
meanings
as
defined
in
section
15G.101
15.327
.
33
Sec.
17.
Section
15E.231,
unnumbered
paragraph
1,
Code
34
Supplement
2011,
is
amended
to
read
as
follows:
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In
order
for
an
economic
development
region
to
receive
1
moneys
under
the
economic
development
financial
assistance
2
program
established
in
section
15G.112
assistance
pursuant
to
3
section
15.335B
,
an
economic
development
region’s
regional
4
development
plan
must
be
approved
by
the
authority.
An
5
economic
development
region
shall
consist
of
not
less
than
6
three
counties,
unless
two
contiguous
counties
have
a
combined
7
population
of
at
least
three
hundred
thousand
based
on
the
8
most
recent
federal
decennial
census.
An
economic
development
9
region
shall
establish
a
focused
economic
development
effort
10
that
shall
include
a
regional
development
plan
relating
to
one
11
or
more
of
the
following
areas:
12
Sec.
18.
Section
15E.232,
subsections
1,
3,
4,
5,
and
6,
13
Code
Supplement
2011,
are
amended
to
read
as
follows:
14
1.
An
economic
development
region
may
apply
for
financial
15
assistance
from
the
economic
development
a
fund
established
16
pursuant
to
section
15.335B
to
assist
with
the
installation
17
of
physical
infrastructure
needs
including,
but
not
limited
18
to,
horizontal
infrastructure,
water
and
sewer
infrastructure,
19
and
telecommunications
infrastructure,
related
to
the
20
development
of
fully
served
business
and
industrial
sites
by
21
one
or
more
of
the
region’s
economic
development
partners
22
or
for
the
installation
of
infrastructure
related
to
a
23
new
business
location
or
expansion.
In
order
to
receive
24
financial
assistance
pursuant
to
this
subsection
,
the
economic
25
development
region
must
demonstrate
all
of
the
following:
26
a.
The
ability
to
provide
matching
moneys
on
a
basis
of
a
27
one
dollar
contribution
of
local
matching
moneys
for
every
two
28
dollars
received
from
the
economic
development
fund.
29
b.
The
commitment
of
the
specific
business
partner
30
including,
but
not
limited
to,
a
letter
of
intent
defining
a
31
capital
commitment
or
a
percentage
of
equity.
32
c.
That
all
other
funding
alternatives
have
been
exhausted.
33
3.
An
economic
development
region
may
apply
for
financial
34
assistance
from
the
economic
development
a
fund
established
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pursuant
to
section
15.335B
to
assist
an
existing
business
1
threatened
with
closure
due
to
a
potential
consolidation
to
an
2
out-of-state
location.
The
economic
development
region
may
3
apply
for
financial
assistance
from
the
economic
development
4
fund
for
the
purchase,
rehabilitation,
or
marketing
of
a
5
building
that
has
become
available
due
to
the
closing
of
an
6
existing
business
due
to
a
consolidation
to
an
out-of-state
7
location.
In
order
to
receive
financial
assistance
under
this
8
subsection
,
an
economic
development
region
must
demonstrate
the
9
ability
to
provide
local
matching
moneys
on
a
basis
of
a
one
10
dollar
contribution
of
local
moneys
for
every
three
dollars
11
received
from
the
economic
development
fund.
12
4.
An
economic
development
region
may
apply
for
financial
13
assistance
from
the
economic
development
a
fund
established
14
pursuant
to
section
15.335B
to
establish
and
operate
an
15
entrepreneurial
initiative.
In
order
to
receive
financial
16
assistance
under
this
subsection
,
an
economic
development
17
region
must
demonstrate
the
ability
to
provide
local
matching
18
moneys
on
a
basis
of
a
one
dollar
contribution
of
local
moneys
19
for
every
two
dollars
received
from
the
economic
development
20
fund.
21
5.
a.
An
economic
development
region
may
apply
for
22
financial
assistance
from
the
economic
development
a
fund
23
established
pursuant
to
section
15.335B
to
establish
and
24
operate
a
business
succession
assistance
program
for
the
25
region.
26
b.
In
order
to
receive
financial
assistance
under
this
27
subsection
,
an
economic
development
region
must
demonstrate
28
the
ability
to
provide
local
matching
moneys
on
a
basis
of
a
29
one
dollar
contribution
of
local
moneys
for
every
two
dollars
30
received
from
the
economic
development
fund.
31
6.
An
economic
development
region
may
apply
for
financial
32
assistance
from
the
economic
development
a
fund
established
33
pursuant
to
section
15.335B
to
implement
economic
development
34
initiatives
that
are
either
unique
to
the
region
or
innovative
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in
design
and
implementation.
In
order
to
receive
financial
1
assistance
under
this
subsection
,
an
economic
development
2
region
must
demonstrate
the
ability
to
provide
local
matching
3
moneys
on
a
one-to-one
basis.
4
Sec.
19.
Section
15E.351,
subsection
1,
Code
Supplement
5
2011,
is
amended
to
read
as
follows:
6
1.
The
economic
development
authority
shall
establish
and
7
administer
a
business
accelerator
program
to
provide
financial
8
assistance
for
the
establishment
and
operation
of
a
business
9
accelerator
for
technology-based,
value-added
agricultural,
10
information
solutions,
alternative
and
renewable
energy
11
including
the
alternative
and
renewable
energy
sectors
listed
12
in
section
476.42,
subsection
1
,
paragraph
“a”
,
subparagraph
13
(1),
or
advanced
manufacturing
start-up
businesses
or
for
a
14
satellite
of
an
existing
business
accelerator.
The
program
15
shall
be
designed
to
foster
the
accelerated
growth
of
new
16
and
existing
businesses
through
the
provision
of
technical
17
assistance.
The
economic
development
authority
may
provide
18
financial
assistance
under
this
section
from
moneys
allocated
19
for
regional
financial
assistance
for
business
accelerators
20
pursuant
to
section
15G.111
section
15.335B
,
subsection
9
2
.
21
Sec.
20.
Section
159A.6B,
subsection
2,
Code
Supplement
22
2011,
is
amended
to
read
as
follows:
23
2.
The
office
may
execute
contracts
in
order
to
provide
24
technical
support
and
outreach
services
for
purposes
of
25
assisting
and
educating
interested
persons
as
provided
in
this
26
section
.
The
office
may
also
contract
with
a
consultant
to
27
provide
part
or
all
of
these
services.
The
office
may
require
28
that
a
person
receiving
assistance
pursuant
to
this
section
29
contribute
up
to
fifty
percent
of
the
amount
required
to
30
support
the
costs
of
contracting
with
the
consultant
to
provide
31
assistance
to
the
person.
The
office
shall
assist
the
person
32
in
completing
any
technical
information
required
in
order
33
to
receive
assistance
by
the
economic
development
authority
34
pursuant
to
the
value-added
agriculture
component
of
the
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economic
development
financial
assistance
program
established
1
pursuant
to
section
15G.112
section
15.335B
.
2
Sec.
21.
Section
266.19,
Code
Supplement
2011,
is
amended
3
to
read
as
follows:
4
266.19
Renewable
fuel
——
assistance.
5
The
university
shall
cooperate
in
assisting
renewable
fuel
6
production
facilities
supporting
livestock
operations
managed
7
by
persons
receiving
assistance
pursuant
to
the
value-added
8
agriculture
component
of
the
economic
development
financial
9
assistance
program
established
in
section
15G.112
section
10
15.335B
.
11
Sec.
22.
Section
455B.104,
subsection
2,
Code
Supplement
12
2011,
is
amended
to
read
as
follows:
13
2.
The
department
shall
assist
persons
applying
for
14
assistance
to
establish
and
operate
renewable
fuel
production
15
facilities
pursuant
to
the
value-added
agriculture
component
16
of
the
economic
development
financial
assistance
program
17
established
in
section
15G.112
section
15.335B
.
18
Sec.
23.
Section
455B.433,
Code
Supplement
2011,
is
amended
19
to
read
as
follows:
20
455B.433
Physical
infrastructure
assistance
——
funding
——
21
liability.
22
1.
The
department
of
natural
resources
shall
work
in
23
conjunction
with
the
economic
development
authority
to
identify
24
environmentally
contaminated
sites
which
qualify
for
the
25
infrastructure
component
of
the
economic
development
financial
26
assistance
program
established
in
section
15G.112
assistance
27
under
section
15.335B
as
necessary
physical
infrastructure
28
projects
.
The
department
shall
provide
an
assessment
of
the
29
site
and
shall
provide
any
emergency
response
activities
which
30
the
department
deems
necessary.
The
department
may
take
any
31
further
action,
including
remediation
of
the
site,
that
the
32
department
deems
to
be
appropriate
and
which
promotes
the
33
purposes
of
the
necessary
physical
infrastructure
component
34
project
.
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2.
The
department
shall
be
reimbursed
from
the
economic
1
development
fund
created
in
section
15G.111
by
the
economic
2
development
authority
for
any
costs
incurred
pursuant
to
this
3
section
.
4
3.
A
person
shall
not
have
standing
pursuant
to
section
5
455B.111
to
commence
a
citizen
suit
which
is
based
upon
6
property
that
is
part
of
the
infrastructure
component
of
the
7
economic
development
financial
assistance
program
established
8
in
section
15G.112
receiving
assistance
pursuant
to
section
9
15.335B
as
a
necessary
physical
infrastructure
project
.
10
Sec.
24.
RULES.
The
economic
development
authority
shall
11
adopt
rules
for
the
implementation
of
this
division
of
this
12
Act.
13
DIVISION
II
14
TARGETED
INDUSTRIES
PROGRAM
15
Sec.
25.
Section
15.102,
subsection
11,
Code
Supplement
16
2011,
is
amended
to
read
as
follows:
17
11.
“Targeted
industries”
means
the
same
as
defined
18
in
section
15.411,
subsection
1
industries
of
advanced
19
manufacturing,
biosciences,
and
information
technology
.
20
Sec.
26.
Section
15.106B,
subsection
2,
paragraph
d,
21
subparagraph
(1),
Code
Supplement
2011,
is
amended
by
adding
22
the
following
new
subparagraph
division:
23
NEW
SUBPARAGRAPH
DIVISION
.
(g)
Services
related
to
24
outreach
and
assistance
to
businesses
for
small
business
25
innovation
research
and
technology
transfer
pursuant
to
section
26
15.411,
subsection
5.
27
Sec.
27.
Section
15.411,
Code
Supplement
2011,
is
amended
28
to
read
as
follows:
29
15.411
Targeted
industries
Innovative
business
development
——
30
internships
——
technical
and
financial
assistance.
31
1.
As
used
in
this
part,
unless
the
context
otherwise
32
requires:
33
a.
“Innovative
business”
means
the
same
as
defined
in
34
section
15E.52.
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a.
b.
“Internship”
means
temporary
employment
of
a
student
1
that
focuses
on
providing
the
student
with
work
experience
in
2
the
student’s
field
of
study.
3
b.
“Targeted
industries”
means
the
industries
of
advanced
4
manufacturing,
biosciences,
and
information
technology.
5
2.
The
authority
shall,
upon
board
approval,
may
contract
6
with
service
providers
on
a
case-by-case
basis
for
services
7
related
to
statewide
commercialization
development
in
the
8
targeted
industries
of
innovative
businesses
.
Services
9
provided
shall
include
all
of
the
following:
10
a.
Assistance
provided
directly
to
businesses
by
experienced
11
serial
entrepreneurs
for
all
of
the
following
activities:
12
(1)
Business
plan
development.
13
(2)
Due
diligence.
14
(3)
Market
assessments.
15
(4)
Technology
assessments.
16
(5)
Other
planning
activities.
17
b.
Operation
and
coordination
of
various
available
18
competitive
seed
and
prototype
development
funds.
19
c.
Connecting
businesses
to
private
angel
investors
and
the
20
venture
capital
community.
21
d.
Assistance
in
obtaining
access
to
an
experienced
pool
22
of
managers
and
operations
talent
that
can
staff,
mentor,
or
23
advise
start-up
enterprises.
24
e.
Support
and
advice
for
accessing
sources
of
early
stage
25
financing.
26
3.
The
authority
shall
establish
and
administer
a
program
27
to
provide
financial
and
technical
assistance
to
encourage
28
prototype
and
concept
development
activities
by
innovative
29
businesses
that
have
a
clear
potential
to
lead
to
commercially
30
viable
products
or
services
within
a
reasonable
period
of
time
31
in
the
targeted
industries
.
Financial
assistance
shall
be
32
awarded
on
a
per
project
basis
upon
board
approval.
The
amount
33
of
financial
assistance
available
for
a
single
project
shall
34
not
exceed
one
hundred
fifty
thousand
dollars.
In
order
to
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receive
financial
assistance,
an
applicant
must
demonstrate
1
the
ability
to
secure
one
dollar
of
nonstate
moneys
for
every
2
two
dollars
received
from
the
authority.
For
purposes
of
this
3
section,
“financial
assistance”
means
assistance
provided
only
4
from
the
funds,
rights,
and
assets
legally
available
to
the
5
authority
pursuant
to
this
chapter
and
includes
but
is
not
6
limited
to
assistance
in
the
form
of
grants,
loans,
forgivable
7
loans,
and
royalty
payments.
8
4.
The
authority
shall,
upon
board
approval,
establish
9
and
administer
a
program
to
provide
financial
assistance
for
10
projects
designed
to
encourage
collaboration
between
commercial
11
users
and
developers
of
information
technology
in
the
state
12
for
the
purpose
of
commercializing
existing
software
and
13
applications
technologies.
Financial
assistance
shall
not
14
exceed
one
hundred
thousand
dollars
per
project.
In
order
to
15
receive
financial
assistance,
an
applicant
must
demonstrate
the
16
ability
to
secure
two
dollars
of
nonstate
moneys
for
every
one
17
dollar
received
from
the
authority.
Financial
assistance
shall
18
be
awarded
to
projects
that
will
result
in
technologies
being
19
developed
as
commercial
products
for
sale
by
Iowa
companies
20
rather
than
as
custom
applications
for
proprietary
use
by
a
21
participating
firm.
22
5.
The
authority
shall,
upon
board
approval,
establish
23
and
administer
a
program
to
provide
financial
assistance
to
24
businesses
or
departments
of
businesses
engaged
in
the
delivery
25
of
information
technology
services
in
the
state
for
the
purpose
26
of
upgrading
the
high-level
technical
skills
of
existing
27
employees.
The
amount
of
financial
assistance
shall
not
exceed
28
twenty-five
thousand
dollars
for
any
business
site.
In
order
29
to
receive
financial
assistance,
an
applicant
must
demonstrate
30
the
ability
to
secure
two
dollars
of
nonstate
moneys
for
every
31
one
dollar
received
from
the
authority.
32
6.
4.
The
authority
shall
,
upon
board
approval,
establish
33
and
administer
a
targeted
industries
an
innovative
businesses
34
internship
program
for
Iowa
students.
For
purposes
of
this
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subsection
,
“Iowa
student”
means
a
student
of
an
Iowa
community
1
college,
private
college,
or
institution
of
higher
learning
2
under
the
control
of
the
state
board
of
regents,
or
a
student
3
who
graduated
from
high
school
in
Iowa
but
now
attends
an
4
institution
of
higher
learning
outside
the
state
of
Iowa.
The
5
purpose
of
the
program
is
to
link
Iowa
students
to
small
and
6
medium
sized
Iowa
firms
in
the
targeted
industries
through
7
internship
opportunities.
An
Iowa
employer
may
receive
8
financial
assistance
in
an
amount
of
one
dollar
for
every
9
two
dollars
paid
by
the
employer
to
an
intern.
The
amount
10
of
financial
assistance
shall
not
exceed
three
thousand
one
11
hundred
dollars
for
any
single
internship,
or
nine
thousand
12
three
hundred
dollars
for
any
single
employer.
In
order
to
be
13
eligible
to
receive
financial
assistance
under
this
subsection
,
14
the
employer
must
have
five
hundred
or
fewer
employees
and
must
15
be
engaged
in
a
targeted
industry
an
innovative
business
.
The
16
authority
shall
encourage
youth
who
reside
in
economically
17
distressed
areas,
youth
adjudicated
to
have
committed
a
18
delinquent
act,
and
youth
transitioning
out
of
foster
care
to
19
participate
in
the
targeted
industries
internship
program.
20
7.
The
economic
development
authority
shall
work
with
the
21
department
of
workforce
development
to
create
a
statewide
22
supplier
capacity
and
product
database
to
assist
the
economic
23
development
authority
in
linking
suppliers
to
Iowa-based
24
companies.
The
economic
development
authority
may
procure
25
technical
assistance
for
the
creation
of
the
database
from
a
26
third
party
through
a
request
for
proposals
process.
27
8.
The
technology
commercialization
committee
created
28
pursuant
to
section
15.116
shall
review
all
applications
for
29
financial
assistance
and
requests
for
proposals
pursuant
to
30
this
section
and
make
recommendations
to
the
board.
31
9.
In
each
fiscal
year,
the
authority
may
transfer
32
additional
moneys
that
become
available
to
the
authority
33
from
sources
such
as
loan
repayments
or
recaptures
of
awards
34
from
federal
economic
stimulus
funds
to
the
innovation
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and
commercialization
development
fund
created
in
section
1
15.412
,
provided
the
authority
spends
those
moneys
for
the
2
implementation
of
the
recommendations
included
in
the
separate
3
consultant
reports
on
bioscience,
advanced
manufacturing,
4
information
technology,
and
entrepreneurship
submitted
to
the
5
department
in
calendar
years
2004,
2005,
and
2006.
6
5.
a.
(1)
The
authority
shall
establish
and
administer
7
an
outreach
program
for
purposes
of
assisting
businesses
with
8
applications
to
the
federal
small
business
innovation
research
9
and
small
business
technology
transfer
programs.
10
(2)
The
goals
of
this
assistance
are
to
increase
the
number
11
of
successful
phase
II
small
business
innovation
research
grant
12
proposals
in
the
state,
increase
the
amount
of
such
grant
13
funds
awarded
in
the
state,
stimulate
subsequent
investment
by
14
industry,
venture
capital,
and
other
sources,
and
encourage
15
businesses
to
commercialize
promising
technologies.
16
b.
(1)
In
administering
the
program,
the
authority
may
17
provide
technical
and
financial
assistance
to
businesses.
18
Financial
assistance
provided
pursuant
to
this
subsection
shall
19
not
exceed
twenty-five
thousand
dollars
to
any
single
business.
20
(2)
The
authority
may
require
successful
applicants
to
21
repay
the
amount
of
financial
assistance
received,
but
shall
22
not
require
unsuccessful
applicants
to
repay
such
assistance.
23
Any
moneys
repaid
pursuant
to
this
subsection
may
be
used
to
24
provide
financial
assistance
to
other
applicants.
25
c.
The
authority
may
also
provide
financial
assistance
26
for
purposes
of
helping
businesses
meet
the
matching
funds
27
requirements
of
the
federal
small
business
innovation
research
28
and
small
business
technology
transfer
programs.
29
d.
The
authority
may
contract
with
outside
service
providers
30
for
assistance
with
the
programs
described
in
this
subsection
31
or
may
delegate
the
functions
to
be
performed
under
this
32
subsection
to
the
corporation
pursuant
to
section
15.106B.
33
10.
6.
The
board
shall
adopt
rules
pursuant
to
chapter
17A
34
necessary
for
the
administration
of
this
section
.
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Sec.
28.
Section
15.412,
subsections
2
and
3,
Code
1
Supplement
2011,
are
amended
to
read
as
follows:
2
2.
Moneys
in
the
fund
are
appropriated
to
the
authority
and,
3
with
the
approval
of
the
board,
shall
be
used
to
facilitate
4
agreements,
enhance
commercialization
in
the
targeted
5
industries
,
and
increase
the
availability
of
skilled
workers
6
within
the
targeted
industries
in
innovative
businesses
.
Such
7
moneys
shall
not
be
used
for
the
support
of
retail
businesses,
8
health
care
businesses,
or
other
businesses
requiring
a
9
professional
license.
10
3.
Moneys
in
the
fund
,
with
the
approval
of
the
board,
may
11
also
be
used
for
the
following
purposes:
12
a.
For
assistance
to
entities
providing
student
internship
13
opportunities.
14
b.
For
increasing
career
awareness
training.
15
c.
For
recruiting
management
talent.
16
d.
b.
For
assistance
to
entities
engaged
in
prototype
and
17
concept
development
activities.
18
e.
c.
For
developing
a
statewide
commercialization
network.
19
f.
For
deploying
and
maintaining
an
Iowa
entrepreneur
20
website.
21
g.
For
funding
asset
mapping
and
supply
chain
initiatives,
22
including
for
identifying
methods
of
supporting
lean
23
manufacturing
practices
or
processes.
24
h.
For
information
technology
training.
25
i.
For
networking
events
to
facilitate
the
transfer
of
26
technology
among
researchers
and
industries.
27
j.
For
funding
student
competition
programs.
28
k.
For
the
purchase
of
advanced
equipment
and
software
29
at
Iowa
community
colleges
in
order
to
support
training
and
30
coursework
related
to
the
targeted
industries.
31
Sec.
29.
Section
15E.52,
subsection
1,
paragraph
c,
Code
32
Supplement
2011,
is
amended
to
read
as
follows:
33
c.
“Innovative
business”
means
a
business
applying
novel
34
or
original
methods
to
the
manufacture
of
a
product
or
the
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delivery
of
a
service.
“Innovative
business”
includes
but
1
is
not
limited
to
a
business
engaged
in
a
targeted
industry
2
as
defined
in
section
15.411
the
industries
of
advanced
3
manufacturing,
biosciences,
and
information
technology
.
4
DIVISION
III
5
OTHER
ECONOMIC
DEVELOPMENT
CHANGES
6
Sec.
30.
Section
15.106A,
subsection
1,
paragraph
o,
Code
7
Supplement
2011,
is
amended
to
read
as
follows:
8
o.
Establish
one
or
more
funds
within
the
state
treasury
9
under
the
control
of
the
authority.
Moneys
deposited
in
or
10
accruing
to
such
a
fund
are
appropriated
to
the
authority
for
11
purposes
of
administering
the
economic
development
programs
in
12
this
chapter,
chapter
15E,
or
such
other
programs
as
directed
13
by
law.
Notwithstanding
section
8.33
or
12C.7
,
or
any
other
14
provision
to
the
contrary,
moneys
invested
by
the
treasurer
15
of
state
pursuant
to
this
subsection
shall
not
revert
to
the
16
general
fund
of
the
state
and
interest
accrued
on
the
moneys
17
shall
be
moneys
of
the
authority
and
shall
not
be
credited
to
18
the
general
fund.
The
nonreversion
of
moneys
allowed
under
19
this
paragraph
does
not
apply
to
moneys
appropriated
to
the
20
authority
by
the
general
assembly.
21
Sec.
31.
REPEAL.
Sections
15.103
and
15.104,
Code
22
Supplement
2011,
are
repealed.
23
Sec.
32.
HOUSING
ENTERPRISE
ZONE
TAX
CREDIT
ISSUANCE.
24
1.
Notwithstanding
section
15E.193B,
subsection
4,
the
25
authority
may
issue
a
tax
credit
to
an
eligible
housing
26
business
for
a
project
not
completed
within
two
years
from
27
the
time
the
business
began
construction
if
a
city
failed
to
28
file
the
appropriate
paperwork
with
the
authority
requesting
29
an
extension
for
the
project
pursuant
to
section
15E.193B,
30
subsection
4.
31
2.
The
authorization
described
in
subsection
1
only
applies
32
to
projects
for
which
a
city
failed
to
file
an
extension
33
between
January
1,
2007,
and
January
1,
2008,
and
only
to
34
benefits
earned
for
a
project
between
February
8,
2005,
and
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February
8,
2008.
1
DIVISION
IV
2
FILM
TAX
CREDIT
PROGRAM
3
Sec.
33.
Section
2.48,
subsection
3,
paragraph
c,
4
subparagraph
(5),
Code
2011,
is
amended
by
striking
the
5
subparagraph.
6
Sec.
34.
Section
15.119,
subsection
2,
paragraph
b,
Code
7
Supplement
2011,
is
amended
by
striking
the
paragraph.
8
Sec.
35.
Section
422.7,
subsection
52,
Code
Supplement
9
2011,
is
amended
by
striking
the
subsection.
10
Sec.
36.
Section
422.33,
subsections
23
and
24,
Code
11
Supplement
2011,
are
amended
by
striking
the
subsections.
12
Sec.
37.
Section
422.35,
subsection
23,
Code
Supplement
13
2011,
is
amended
by
striking
the
subsection.
14
Sec.
38.
Section
422.60,
subsections
10
and
11,
Code
15
Supplement
2011,
are
amended
by
striking
the
subsections.
16
Sec.
39.
Section
533.329,
subsection
2,
paragraphs
f
and
g,
17
Code
Supplement
2011,
are
amended
by
striking
the
paragraphs.
18
Sec.
40.
REPEAL.
Sections
15.391,
15.392,
422.11T,
19
422.11U,
432.12J,
and
432.12K,
Code
2011,
are
repealed.
20
Sec.
41.
REPEAL.
Section
15.393,
Code
Supplement
2011,
is
21
repealed.
22
Sec.
42.
EFFECTIVE
UPON
ENACTMENT.
This
division
of
this
23
Act,
being
deemed
of
immediate
importance,
takes
effect
upon
24
enactment.
25
Sec.
43.
RETROACTIVE
APPLICABILITY.
This
division
of
this
26
Act
applies
retroactively
to
January
1,
2012,
for
tax
years
27
beginning
on
or
after
that
date.
28
Sec.
44.
APPLICABILITY.
This
division
of
this
Act
does
not
29
apply
to
contracts
or
agreements
entered
into
on
or
before
the
30
effective
date
of
this
division
of
this
Act.
31
EXPLANATION
32
This
bill
relates
to
economic
development
by
affecting
33
programs,
tax
incentives,
and
project
completion
and
other
34
assistance
administered
by
the
economic
development
authority.
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The
bill
provides
general
spending
authority
to
the
economic
1
development
authority
for
funds
established
pursuant
to
Code
2
section
15.106A.
The
bill
abolishes
the
film
tax
credit
3
program.
4
HIGH
QUALITY
JOBS
PROGRAM.
Division
I
relates
to
assistance
5
in
the
high
quality
jobs
program
and
related
assistance
and
6
programs.
7
The
bill
amends
Code
chapter
15,
part
13,
to
provide
for
8
assistance
when
providing
for
incentives.
The
bill
includes
9
amendments
to
definitions,
which
incorporate
the
language
of
10
the
definitions
in
Code
chapter
15G,
the
economic
development
11
fund
and
financial
assistance
program
(formerly,
the
grow
Iowa
12
values
fund
and
program),
which
is
repealed
June
30,
2012,
with
13
some
modifications.
The
bill
transfers
the
definitions
of
14
“created
job”,
“maintenance
period
completion
date”,
“retained
15
job”,
“financial
assistance”,
“full-time
equivalent
position”,
16
“maintenance
period”,
and
“project
completion
period”
from
Code
17
section
15G.101
to
Code
section
15.327.
18
The
bill
transfers
the
definitions
of
“benefit”,
“fiscal
19
impact
ratio”,
“project
completion
date”,
“qualifying
wage
20
threshold”,
and
“base
employment
level”
from
Code
section
21
15G.101
to
Code
section
15.327,
with
modifications.
The
bill
22
changes
the
definition
of
“benefit”
by
providing
that
the
23
economic
development
board,
rather
than
the
authority,
shall
24
determine
any
other
nonwage
compensation
that
is
considered
a
25
benefit.
The
bill
changes
the
calculation
of
a
“fiscal
impact
26
ratio”.
The
estimated
taxes
to
be
received
by
the
state
from
a
27
business
would
be
divided
by
the
estimated
cost
to
the
state
of
28
providing
certain
project
completion
assistance
and
incentives
29
to
the
business
rather
than
dividing
the
estimated
taxes
by
30
the
cost
of
providing
financial
incentives
to
the
business.
31
The
bill
amends
the
definition
of
“project
completion
date”
32
to
provide
that
the
person
may
be
a
recipient
of
project
33
completion
assistance
rather
than
financial
assistance.
The
34
bill
amends
the
definition
of
“qualifying
wage
threshold”.
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The
bill
provides
that
the
qualifying
wage
threshold
means
1
the
“laborshed
wage”
as
defined
in
the
bill
rather
than
the
2
county
or
regional
wage.
The
bill
provides
that
the
“base
3
employment
level”
is
calculated
as
of
the
date
the
business
4
applies
for
incentives
or
project
completion
assistance
rather
5
than
financial
assistance.
6
The
bill
also
adds
definitions
for
“business
engaged
in
7
disaster
recovery”,
“fund”,
“laborshed
wage”,
“necessary
8
physical
infrastructure
project”,
“program
support”,
and
9
“project
completion
assistance”
in
Code
section
15.327.
The
10
bill
provides
that
a
“business
engaged
in
disaster
recovery”
11
means
a
business
located
in
a
federally
declared
disaster
12
area
that
sustained
substantial
physical
damage
and
closed
13
as
a
result
of
the
disaster,
but
has
a
plan
for
reopening
14
that
includes
employing
a
substantial
number
of
the
employees
15
the
business
employed
before
the
natural
disaster.
The
bill
16
provides
that
“fund”
means
a
fund
created
pursuant
to
new
Code
17
section
15.335B.
The
bill
provides
that
“laborshed
wage”
means
18
the
wage
level
represented
by
those
wages
within
two
standard
19
deviations
from
the
mean
wage
within
the
laborshed
area,
as
20
calculated
by
the
authority.
The
bill
defines
“necessary
21
physical
infrastructure
project”
as
a
project
creating
22
necessary
infrastructure
for
economic
success
by
providing
23
the
foundation
for
job
creation,
and
involving
investment
of
24
capital.
The
bill
defines
“program
support”
as
the
services
25
necessary
for
the
efficient
administration
of
the
high
quality
26
jobs
program.
The
bill
defines
“project
completion
assistance”
27
as
financial
or
technical
assistance
provided
to
an
eligible
28
business
to
facilitate
the
start-up,
location,
or
expansion
of
29
the
business.
30
The
bill
strikes
the
definitions
for
“benefits”,
“county
31
wage”,
“qualifying
wage
threshold”,
and
“regional
wage”
as
used
32
in
Code
section
15.335A,
as
those
definitions
placed
by
the
33
bill
in
Code
section
15.327
also
apply
to
Code
section
15.335A.
34
The
bill
amends
Code
section
15.329
regarding
qualifying
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wage
thresholds
for
eligible
businesses.
The
current
law
1
requires
that
any
jobs
created
or
retained
pay
at
least
2
130
percent
of
the
qualifying
wage
threshold
at
the
project
3
completion
date
until
the
maintenance
period
completion
4
date.
The
bill
provides
that
a
business
eligible
to
receive
5
incentives
or
assistance
for
creating
or
retaining
jobs
must
6
pay
at
least
120
percent
of
the
qualifying
wage
threshold
7
at
the
project
completion
date
until
the
maintenance
period
8
completion
date.
The
bill
also
eliminates
a
credit
against
9
the
qualifying
wage
threshold
for
businesses
that
create
or
10
retain
jobs
with
sufficient
benefits
packages.
However,
the
11
bill
allows
the
authority
to
provide
assistance
to
a
business
12
paying
less
than
120
percent
but
at
least
100
percent
of
the
13
qualifying
wage
threshold
if
the
business
is
located
in
an
14
economically
distressed
area.
An
economically
distressed
15
area
is
defined
in
the
bill
as
a
county
that
ranks
among
the
16
bottom
25
counties
in
Iowa
based
on
either
the
average
monthly
17
unemployment
level
for
the
most
recent
12-month
period,
or
18
the
average
annualized
unemployment
level
for
the
most
recent
19
five-year
period.
20
The
bill
amends
Code
section
15.330
to
include
financial
21
assistance
where
the
statutory
language
provides
for
22
incentives.
The
bill
also
amends
Code
section
15.330
to
23
eliminate
references
to
Code
chapter
15G,
the
economic
24
development
fund
and
financial
assistance
program,
which
is
25
repealed
on
June
30,
2012.
26
The
bill
allows
the
authority
to
consult
with
the
community
27
during
negotiations
relating
to
an
agreement
between
the
28
authority
and
a
business
under
the
high
quality
jobs
program.
29
The
bill
provides
that
an
agreement
between
the
business
30
and
the
authority
that
specifies
the
requirements
to
be
met
to
31
confirm
eligibility
must
include
the
amount
and
type
of
project
32
completion
assistance
to
be
provided,
the
amount
of
matching
33
funds
from
a
city
or
county,
a
provision
that
the
business
34
shall
not
close
or
substantially
reduce
operations
as
those
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terms
are
modified
in
the
bill,
a
provision
that
the
proposed
1
project
shall
not
negatively
impact
other
businesses
in
2
competition
with
the
business
being
considered
for
assistance,
3
a
report
submitted
to
the
authority
describing
violations
of
4
environmental
law
or
worker
safety
law,
a
provision
that
the
5
business
shall
only
employ
individuals
legally
authorized
to
6
work
in
the
state,
and
any
terms
necessary
to
effect
compliance
7
with
the
eligibility
requirements
of
Code
section
15.329.
8
The
bill
adds
a
new
Code
section
15.330A
regarding
the
9
maintenance
of
agreements.
The
new
Code
section
provides
that
10
an
eligible
business
that
is
receiving
incentives
or
assistance
11
must
meet
the
terms
and
obligations
in
the
agreement
by
the
12
project
completion
date
and
the
business
must
comply
with
the
13
agreement
throughout
the
maintenance
period.
If
the
recipient
14
business
experiences
a
layoff
or
closure
within
the
state,
the
15
authority
is
authorized
to
reduce
or
eliminate
part
or
all
of
16
the
incentives
or
assistance.
The
business
may
also
be
subject
17
to
repayment
of
the
incentives
and
assistance.
The
bill
allows
18
the
authority
to
enforce
the
terms
of
an
agreement
as
necessary
19
and
appropriate.
20
The
bill
provides
that
a
community
may
apply
to
the
economic
21
development
authority
for
a
project-specific
waiver
from
22
the
qualifying
wage
threshold
requirement
in
order
to
seek
23
tax
incentives,
and
the
authority
may
grant
the
waiver
for
24
the
remainder
of
the
calendar
year
if
the
community
meets
25
the
requirements
of
an
economically
distressed
community
as
26
provided
by
new
Code
section
15.335C.
The
bill
eliminates
27
the
county
wage
or
regional
wage
calculations
as
a
tool
for
28
determining
whether
to
grant
a
project-specific
waiver.
The
29
bill
also
eliminates
a
provision
that
prohibits
the
authority
30
from
approving
more
than
$3.6
million
worth
of
investment
tax
31
credits
for
projects
with
qualifying
investments
of
less
than
32
$1
million.
33
The
bill
provides
that
one
or
more
funds
shall
be
established
34
within
the
state
treasury
to
be
used
for
assistance
under
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newly
created
Code
section
15.335B.
Moneys
deposited
into
the
1
fund
shall
be
used
for
project
completion
assistance,
economic
2
development
region
financial
assistance,
financial
assistance
3
for
business
accelerators,
the
innovation
and
commercialization
4
fund,
financial
assistance
to
business
or
communities
5
for
necessary
physical
infrastructure
projects,
financial
6
assistance
to
businesses
engaged
in
disaster
recovery,
and
7
financial
assistance
to
Iowa’s
councils
of
governments.
8
The
bill
provides
that
the
authority
shall
estimate
the
9
revenues
available
for
project
completion
and
shall
develop
10
a
budget
for
the
expenditure
of
funds
each
fiscal
year.
In
11
providing
assistance,
the
authority
shall
make
determinations
12
as
to
the
amount
and
type
of
assistance
that
is
most
13
appropriate.
Each
eligible
business
that
receives
assistance
14
under
Code
section
15.335B
must
enter
into
an
agreement
with
15
the
authority
that
meets
the
requirements
of
agreements
under
16
the
high
quality
jobs
program
pursuant
to
Code
sections
15.330
17
and
15.330A.
18
The
bill
removes
references
to
the
economic
development
19
fund
and
financial
assistance
program
and
replaces
it
with
the
20
assistance
created
by
new
Code
section
15.335B.
21
TARGETED
INDUSTRIES
PROGRAM.
Division
II
relates
to
the
22
targeted
industries
program.
The
term
“targeted
industries”
23
in
Code
section
15.411
is
replaced
with
“innovative
business”.
24
The
bill
no
longer
requires
board
approval
for
the
authority
25
to
contract
with
service
providers
for
services
related
to
26
commercialization
development.
The
bill
removes
the
$150,000
27
limitation
on
financial
assistance
for
a
single
project
of
28
an
innovative
business.
The
bill
removes
the
requirement
29
that
the
authority
administer
a
program
to
provide
financial
30
assistance
for
projects
designed
to
encourage
collaboration
31
between
commercial
users
and
developers
of
information
32
technology.
The
bill
also
removes
the
requirement
the
33
authority
establish
and
administer
a
program
to
provide
34
financial
assistance
to
business
or
business
departments
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engaged
in
the
delivery
of
information
technology
services
1
in
the
state.
The
bill
eliminates
the
requirement
that
the
2
authority
and
department
of
workforce
development
create
a
3
statewide
supplier
capacity
and
product
database.
The
bill
4
provides
that
applications
for
financial
assistance
under
the
5
innovative
businesses
program
no
longer
require
a
review
by
6
the
technology
commercialization
committee.
The
bill
removes
7
the
transfer
provisions
relating
to
money
received
by
the
8
authority
as
loan
repayments
or
recaptures
of
federal
economic
9
stimulus
funds.
The
bill
requires
the
authority
to
establish
10
and
administer
an
outreach
program
to
assist
businesses
with
11
applications
to
the
federal
small
business
innovation
research
12
and
small
business
technology
transfer
programs.
However,
13
the
authority
may
contract
with
outside
service
providers
for
14
assistance
with
the
program
or
may
delegate
the
administration
15
of
the
program
to
the
Iowa
innovation
corporation
pursuant
to
16
Code
section
15.106B.
The
authority
may
provide
technical
17
or
financial
assistance
and
may
require
that
successful
18
applicants
repay
any
financial
assistance
received.
The
19
bill
specifies
that
moneys
appropriated
to
the
innovation
20
and
commercialization
development
fund
shall
not
be
used
for
21
retail
businesses,
health
care
businesses,
or
other
businesses
22
requiring
a
professional
license.
The
bill
also
reduces
the
23
number
of
purposes
for
which
money
in
the
innovation
and
24
commercialization
development
fund
may
be
used.
25
OTHER
ECONOMIC
DEVELOPMENT
CHANGES.
Division
III
of
the
26
bill
repeals
Code
sections
15.103
and
15.104,
relating
to
the
27
economic
development
board,
which
was
replaced
by
the
economic
28
development
authority
board
in
Code
section
15.105.
29
The
bill
provides
spending
authority
for
moneys
deposited
30
in
or
accruing
to
funds
established
pursuant
to
Code
section
31
15.106A
for
the
purposes
of
administering
economic
development
32
programs
in
Code
chapters
15
and
15E,
or
other
programs
as
33
directed
by
law.
34
The
bill
allows
the
authority
to
issue
a
tax
credit
to
an
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eligible
housing
business,
as
defined
in
Code
section
15E.193B,
1
when
the
project
was
not
completed
within
two
years
from
the
2
time
the
business
began
construction
if
a
city
failed
to
file
3
appropriate
paperwork
with
the
economic
development
authority
4
requesting
an
extension.
The
authorization
to
issue
a
tax
5
credit
is
limited
to
projects
for
which
a
city
failed
to
file
6
an
extension
between
January
1,
2007,
and
January
1,
2008,
and
7
only
to
benefits
earned
for
a
project
between
February
8,
2005,
8
and
February
8,
2008.
9
FILM
TAX
CREDIT
PROGRAM.
Division
IV
repeals
the
film
tax
10
credit
program
and
the
tax
credits
provided
under
that
program.
11
The
bill
makes
changes
corresponding
to
the
repeal
of
the
12
program
and
the
related
tax
credits.
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