Bill Text: IA SF233 | 2015-2016 | 86th General Assembly | Introduced


Bill Title: A bill for an act relating to the programs and duties of the economic development authority and including effective date and retroactive and other applicability provisions and other properly related matters. (Formerly SSB 1115.)

Spectrum: Partisan Bill (? 1-0)

Status: (Engrossed) 2015-03-23 - Passed subcommittee. [SF233 Detail]

Download: Iowa-2015-SF233-Introduced.html
Senate File 233 - Introduced




                                 SENATE FILE       
                                 BY  COMMITTEE ON ECONOMIC
                                     GROWTH

                                 (SUCCESSOR TO SSB
                                     1115)

                                      A BILL FOR

  1 An Act relating to the programs and duties of the economic
  2    development authority and including effective date and
  3    retroactive and other applicability provisions and other
  4    properly related matters.
  5 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
    TLSB 1213SV (3) 86
    ad/sc

PAG LIN



  1  1                           DIVISION I
  1  2                    LIFE CYCLE COST ANALYSES
  1  3    Section 1.  Section 470.1, Code 2015, 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 a previously existing facility.
  1  9    Sec. 2.  Section 470.1, subsections 6, 7, and 10, Code 2015,
  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 2015, 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 2015, 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 2015, 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 2015, 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 2015, 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 2015, 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 basis. Factors to
  4 19 be considered when developing the exemption criteria shall
  4 20 include, but not be limited to, a description of the purpose
  4 21 of the facility or renovation, the preservation of historical
  4 22 architectural features, site considerations, and health and
  4 23 safety concerns. The commissioner and the director shall grant
  4 24 or deny a request for exemption from the requirements of this
  4 25 section within thirty days of receipt of the request.
  4 26                           DIVISION II
  4 27  SCIENCE, TECHNOLOGY, ENGINEERING, AND MATHEMATICS INTERNSHIP
  4 28    Sec. 9.  Section 15.411, subsection 3, Code 2015, is amended
  4 29 to read as follows:
  4 30    3.  a.  The authority shall establish and administer an
  4 31 internship program with two components for Iowa students.
  4 32 To the extent permitted by this subsection, the authority
  4 33 shall administer the two components in as similar a manner as
  4 34 possible. For purposes of this subsection, "Iowa student" means
  4 35 a student of an Iowa community college, private college, or
  5  1 institution of higher learning under the control of the state
  5  2 board of regents, or a student who graduated from high school
  5  3 in Iowa but now attends an institution of higher learning
  5  4 outside the state of Iowa.
  5  5    b.  The purpose of the first component of the program is
  5  6 to link Iowa students to small and medium sized Iowa firms
  5  7 through internship opportunities. An Iowa employer may receive
  5  8 financial assistance in an amount of one dollar for every
  5  9 two dollars paid by the employer to an intern on a matching
  5 10 basis for a portion of the wages paid to an intern.  If
  5 11 providing financial assistance, the authority  shall provide the
  5 12 assistance on a reimbursement basis such that for every two
  5 13 dollars of wages earned by the student, one dollar paid by the
  5 14 employer is matched by one dollar from the authority. The
  5 15 amount of financial assistance shall not exceed three thousand
  5 16 one hundred dollars for any single internship, or nine thousand
  5 17 three hundred dollars for any single employer. In order to be
  5 18 eligible to receive financial assistance under this paragraph,
  5 19 the employer must have five hundred or fewer employees and must
  5 20 be an innovative business. The authority shall encourage youth
  5 21 who reside in economically distressed areas, youth adjudicated
  5 22 to have committed a delinquent act, and youth transitioning out
  5 23 of foster care to participate in the first component of the
  5 24 internship program.
  5 25    c.  (1)  The purpose of the second component of the program
  5 26 is to assist in placing Iowa students studying in the fields
  5 27 of science, technology, engineering, and mathematics into
  5 28 internships that lead to permanent positions with Iowa
  5 29 employers. The authority shall collaborate with eligible
  5 30 employers, including but not limited to innovative businesses,
  5 31 to ensure that the interns hired are studying in such fields.
  5 32 An Iowa employer may receive financial assistance in an amount
  5 33 of one dollar for every dollar paid by the employer to an
  5 34 intern on a matching basis for a portion of the wages paid to
  5 35 an intern.  If providing financial assistance, the authority
  6  1 shall provide the assistance on a reimbursement basis such
  6  2 that for every two dollars of wages earned by the student,
  6  3 one dollar paid by the employer is matched by one dollar from
  6  4 the authority. The amount of financial assistance shall not
  6  5 exceed five thousand dollars per internship. The authority may
  6  6 adopt rules to administer this component.  In adopting rules to
  6  7 administer this component, the authority shall adopt rules as
  6  8 similar as possible to those adopted pursuant to paragraph "b".
  6  9    (2)  The requirement to administer this component of the
  6 10 internship program is contingent upon the provision of funding
  6 11 for such purposes by the general assembly.
  6 12    Sec. 10.  EMERGENCY RULES.  The economic development
  6 13 authority may adopt emergency rules under section 17A.4,
  6 14 subsection 3, and section 17A.5, subsection 2, paragraph "b",
  6 15 to implement the provisions of this division of this Act and
  6 16 the rules shall be effective immediately upon filing unless
  6 17 a later date is specified in the rules.  Any rules adopted
  6 18 in accordance with this section shall also be published as a
  6 19 notice of intended action as provided in section 17A.4.
  6 20    Sec. 11.  EFFECTIVE UPON ENACTMENT.  This division of this
  6 21 Act, being deemed of immediate importance, takes effect upon
  6 22 enactment.
  6 23    Sec. 12.  RETROACTIVE APPLICABILITY.  This division of this
  6 24 Act applies retroactively to July 1, 2014.
  6 25                          DIVISION III
  6 26           REINVESTMENT DISTRICTS AND FLOOD MITIGATION
  6 27    Sec. 13.  Section 15J.4, subsection 3, paragraph a, Code
  6 28 2015, is amended to read as follows:
  6 29    a.  The municipality shall submit a copy of the resolution,
  6 30 the proposed district plan, and all accompanying materials
  6 31 adopted pursuant to this section to the board for evaluation.
  6 32 The board shall not approve a proposed district plan or an
  6 33 amendment to an existing district's plan on or after July 1,
  6 34 2018.
  6 35    Sec. 14.  Section 28F.12, Code 2015, is amended to read as
  7  1 follows:
  7  2    28F.12  Additional powers of the entity.
  7  3    1.  If the entity is comprised solely of cities, counties,
  7  4 and sanitary districts established under chapter 358, or any
  7  5 combination thereof, the entity shall have in addition to all
  7  6 the powers enumerated in this chapter, the powers which that a
  7  7 county has with respect to solid waste disposal projects.
  7  8    2.  If the entity is comprised solely of cities, counties,
  7  9 and sanitary districts established under chapter 358, or any
  7 10 combination thereof, it is a governmental entity with respect
  7 11 to projects undertaken pursuant to chapter 418 and may exercise
  7 12 all of the powers of a governmental entity under that chapter
  7 13 in connection with the flood mitigation project.  Unless
  7 14 otherwise provided in chapter 418, if undertaking a flood
  7 15 mitigation project as a governmental entity under chapter
  7 16 418, the provisions of chapter 418 shall prevail over any
  7 17 conflicting provision in this chapter.
  7 18    Sec. 15.  Section 418.1, subsection 4, paragraph c,
  7 19 unnumbered paragraph 1, Code 2015, is amended to read as
  7 20 follows:
  7 21    A joint board or other legal or administrative entity
  7 22 established or designated in an agreement pursuant to chapter
  7 23 28E or 28F between any of the following:
  7 24    Sec. 16.  Section 418.1, subsection 4, paragraph c, Code
  7 25 2015, is amended by adding the following new subparagraph:
  7 26    NEW SUBPARAGRAPH.  (4)  One or more counties, one or more
  7 27 cities that are located in whole or in part within those
  7 28 counties, and one or more sanitary districts established under
  7 29 chapter 358 or a combined water and sanitary district as
  7 30 provided for in sections 357.1B and 358.1B, located in whole or
  7 31 in part within those counties.
  7 32    Sec. 17.  Section 418.4, subsection 1, paragraph b, Code
  7 33 2015, is amended to read as follows:
  7 34    b.  A governmental entity as defined in section 418.1,
  7 35 subsection 4, paragraph "c", shall have the power to construct,
  8  1 acquire, own, repair, improve, operate, and maintain a project,
  8  2 may sue and be sued, contract, and acquire and hold real and
  8  3 personal property, subject to the limitation in paragraph
  8  4 "c", and shall have such other powers as may be included in
  8  5 the chapter 28E or 28F agreement. Such a governmental entity
  8  6 may contract with a city or the county participating in the
  8  7 chapter 28E agreement to perform any governmental service,
  8  8 activity, or undertaking that the city or county is authorized
  8  9 by law to perform, including but not limited to contracts for
  8 10 administrative services.
  8 11    Sec. 18.  Section 418.11, subsection 3, paragraph c, Code
  8 12 2015, is amended to read as follows:
  8 13    c.  For projects approved for a governmental entity as
  8 14 defined in section 418.1, subsection 4, paragraph "c", the
  8 15 area used to determine the sales tax increment shall include
  8 16 the incorporated areas of each participating city that is
  8 17 participating in the chapter 28E agreement, the unincorporated
  8 18 areas of the each participating county, and the area of any
  8 19 participating drainage district not otherwise included in
  8 20 the areas of the participating cities or county, and the
  8 21 area served by any sanitary district or combined water and
  8 22 sanitary district and not otherwise included in the areas of
  8 23 the participating cities or counties, as applicable.
  8 24    Sec. 19.  Section 418.11, subsection 3, Code 2015, is amended
  8 25 by adding the following new paragraph:
  8 26    NEW PARAGRAPH.  d.  For all projects, the area used to
  8 27 determine the sales tax increment shall not include any parcels
  8 28 of real property that are included in a reinvestment district
  8 29 designated pursuant to chapter 15J.
  8 30    Sec. 20.  Section 418.14, subsection 3, paragraph a, Code
  8 31 2015, is amended to read as follows:
  8 32    a.  Except as otherwise provided in this section, bonds
  8 33 issued pursuant to this section shall not be subject to
  8 34 the provisions of any other law or charter relating to the
  8 35 authorization, issuance, or sale of bonds. Bonds issued under
  9  1 this section shall not limit or restrict the authority of a
  9  2 governmental entity as defined in section 418.1, subsection 4,
  9  3 paragraphs "a" and "b", or a city, county, or drainage district,
  9  4 sanitary district, or combined water and sanitary district
  9  5  participating in a governmental entity as defined in section
  9  6 418.1, subsection 4, paragraph "c", to issue bonds for the
  9  7 project under other provisions of the Code.
  9  8    Sec. 21.  Section 418.14, subsection 4, paragraph b, Code
  9  9 2015, is amended to read as follows:
  9 10    b.  If the moneys in the governmental entity's flood project
  9 11 fund are insufficient to pay the governmental entity's costs
  9 12 related to bonds, notes, or other obligations issued under
  9 13 this chapter, the amounts necessary to pay such costs may
  9 14 be levied and transferred for deposit in the governmental
  9 15 entity's flood project fund from the debt service fund of the
  9 16 governmental entity or, if applicable, the debt service fund
  9 17 of a participating city or county for a governmental entity as
  9 18 defined in section 418.1, subsection 4, paragraph "c", but only
  9 19 if and to the extent provided in the resolution authorizing the
  9 20 issuance of bonds and, if applicable, the chapter 28E or 28F
  9 21  agreement.
  9 22    Sec. 22.  Section 418.15, subsection 4, Code 2015, is amended
  9 23 to read as follows:
  9 24    4.  All property and improvements acquired by a governmental
  9 25 entity as defined in section 418.1, subsection 4, paragraph
  9 26 "c", relating to a project shall be transferred to the county,
  9 27 city, or drainage district, sanitary district, or combined
  9 28 water and sanitary district designated in the chapter 28E or
  9 29 28F agreement to receive such property and improvements. The
  9 30 county, city, or drainage district, sanitary district, or
  9 31 combined water and sanitary district to which such property or
  9 32 improvements are transferred shall, unless otherwise provided
  9 33 in the chapter 28E or 28F agreement, be solely responsible
  9 34 for the ongoing maintenance and support of such property and
  9 35 improvements.
 10  1    Sec. 23.  Section 423.2, subsection 11, paragraph b, Code
 10  2 2015, is amended by adding the following new subparagraph:
 10  3    NEW SUBPARAGRAPH.  (05)  Beginning the first day of the
 10  4 calendar quarter beginning on the reinvestment district's
 10  5 commencement date, subject to remittance limitations
 10  6 established by the economic development authority board
 10  7 pursuant to section 15J.4, subsection 3, transfer to a district
 10  8 account created in the state reinvestment district fund for
 10  9 each reinvestment district established under chapter 15J, the
 10 10 amount of new state sales tax revenue, determined in section
 10 11 15J.5, subsection 1, paragraph "b", in the district, that
 10 12 remains after the prior transfers required under this paragraph
 10 13 "b". Such transfers shall cease pursuant to section 15J.8.
 10 14    Sec. 24.  Section 423.2, subsection 11, paragraph b,
 10 15 subparagraph (6), Code 2015, is amended by striking the
 10 16 subparagraph.
 10 17    Sec. 25.  Section 423.2, Code 2015, is amended by adding the
 10 18 following new subsection:
 10 19    NEW SUBSECTION.  11A.  Of the amount of sales tax revenue
 10 20 actually transferred per quarter pursuant to subsection 11,
 10 21 paragraph "b", subparagraphs (05) and (5), the department shall
 10 22 retain an amount equal to the actual cost of administering the
 10 23 transfers under subsection 11, paragraph "b", subparagraphs
 10 24 (05) and (5), or twenty=five thousand dollars, whichever is
 10 25 less.  The amount retained by the department pursuant to this
 10 26 subsection shall be divided pro rata each quarter between the
 10 27 amounts that would have been transferred pursuant to subsection
 10 28 11, paragraph "b", subparagraphs (05) and (5), without the
 10 29 deduction made by operation of this subsection.  Revenues
 10 30 retained by the department pursuant to this subsection shall be
 10 31 considered repayment receipts as defined in section 8.2.
 10 32    Sec. 26.  EFFECTIVE UPON ENACTMENT.  This division of this
 10 33 Act, being deemed of immediate importance, takes effect upon
 10 34 enactment.
 10 35    Sec. 27.  RETROACTIVE AND OTHER APPLICABILITY.
 11  1    1.  Except as provided in subsection 3, this division of this
 11  2 Act applies retroactively to reinvestment districts designated
 11  3 under chapter 15J in existence on or after July 1, 2014.
 11  4    2.  Except as provided in subsection 3, this division of
 11  5 this Act applies to flood mitigation project plan applications
 11  6 received under chapter 418 before, on, or after the effective
 11  7 date of this division of this Act.
 11  8    3.  The sections of this division of this Act amending
 11  9 section 423.2, subsection 11, and enacting section 423.2,
 11 10 subsection 11A, apply to transfers of sales tax revenues made
 11 11 on or after July 1, 2015.
 11 12                           DIVISION IV
 11 13                        ENTERPRISE ZONES
 11 14    Sec. 28.  2014 Iowa Acts, chapter 1130, section 43,
 11 15 subsection 1, is amended to read as follows:
 11 16    1.  On or after the effective date of this division of this
 11 17 Act, a city or county shall not create an enterprise zone under
 11 18 chapter 15E, division XVIII, or enter into a new agreement or
 11 19 amend an existing agreement under chapter 15E, division XVIII.
 11 20 A city or county and the economic development authority, with
 11 21 the approval of the economic development authority board, may
 11 22 amend an agreement for compliance reasons if the amendment
 11 23 does not increase the amount of incentives awarded under the
 11 24 agreement.
 11 25                           DIVISION V
 11 26           NUISANCE PROPERTIES AND ABANDONED BUILDINGS
 11 27    Sec. 29.  Section 15.335B, subsection 2, paragraph a, Code
 11 28 2015, is amended by adding the following new subparagraph:
 11 29    NEW SUBPARAGRAPH.  (8)  For deposit in the nuisance property
 11 30 remediation fund created pursuant to section 15.338.
 11 31    Sec. 30.  NEW SECTION.  15.338  Nuisance property remediation
 11 32 assistance ==== fund.
 11 33    1.  a.  The economic development authority shall establish
 11 34 a nuisance property remediation fund pursuant to section
 11 35 15.106A, subsection 1, paragraph "o", for purposes of providing
 12  1 financial assistance to cities for the remediation of nuisance
 12  2 properties and abandoned buildings and other structures.  The
 12  3 authority shall administer the fund in a manner designed to
 12  4 make funds annually available to cities for purposes of this
 12  5 section.
 12  6    b.  The authority may administer a fund established for
 12  7 purposes of this section as a revolving fund.  The fund may
 12  8 consist of any moneys appropriated  by the general assembly for
 12  9 purposes of this section and any other moneys that are lawfully
 12 10 available to the authority, including moneys transferred or
 12 11 deposited from other funds created pursuant to section 15.106A,
 12 12 subsection 1, paragraph "o".
 12 13    c.  The authority shall use any moneys specifically
 12 14 appropriated for purposes of this section only for the purposes
 12 15 of this section.  The authority may use all other moneys in the
 12 16 fund, including interest, earnings, recaptures, and repayments
 12 17 for purposes of this section or the authority may transfer
 12 18 the other moneys to other funds created pursuant to section
 12 19 15.106A, subsection 1, paragraph "o".
 12 20    d.  Notwithstanding section 8.33, moneys in the nuisance
 12 21 property remediation fund at the end of each fiscal year shall
 12 22 not revert to any other fund but shall remain in the fund for
 12 23 expenditure for subsequent fiscal years.
 12 24    e.  The authority may use not more than five percent of
 12 25 the moneys in the fund at the beginning of the fiscal year
 12 26 for purposes of administrative costs, finance, compliance,
 12 27 marketing, and program support.
 12 28    2.  The authority shall use moneys in the fund to provide
 12 29 financial assistance to cities for the remediation of nuisance
 12 30 properties and abandoned buildings and other structures.  Such
 12 31 financial assistance may include grants, loans, forgivable
 12 32 loans, or other forms of financial assistance as necessary
 12 33 to effectuate the purposes of this section.  The authority
 12 34 may provide financial assistance under this section using a
 12 35 competitive scoring process.
 13  1    3.  In providing financial assistance under this section,
 13  2 the authority may give priority to cities with severe blighted
 13  3 areas, widespread dilapidated housing stock, or high rates of
 13  4 low or moderate income residents.
 13  5    4.  The authority shall enter into an agreement with
 13  6 each city for the receipt of financial assistance under
 13  7 this section.  The authority may negotiate the terms of the
 13  8 agreement.
 13  9    5.  In providing financial assistance under this section,
 13 10 the authority shall coordinate with a city to develop a plan
 13 11 for the use of funds that is consistent with the community
 13 12 development, housing, and economic development goals of the
 13 13 city.  The terms of the agreement entered into pursuant to
 13 14 subsection 3 and the use of financial assistance provided under
 13 15 this section shall reflect the plan developed based on a city's
 13 16 goals.
 13 17    Sec. 31.  Section 657A.1, subsections 1 and 3, Code 2015, are
 13 18 amended to read as follows:
 13 19    1.  "Abandoned" or "abandonment" means that a building has
 13 20 remained vacant and has been in violation of the housing code
 13 21 or building code of the city in which the property is located
 13 22 or the housing code or building code applicable in the county
 13 23 in which the property is located if outside the limits of a
 13 24 city for a period of six consecutive months.
 13 25    3.  "Building" means a building or structure located in a
 13 26 city or outside the limits of a city in a county, which is used
 13 27 or intended to be used for commercial or industrial purposes or
 13 28  which is used or intended to be used for residential purposes,
 13 29  and includes a building or structure in which some floors
 13 30 may be used for retail stores, shops, salesrooms, markets,
 13 31 or similar commercial uses, or for offices, banks, civic
 13 32 administration activities, professional services, or similar
 13 33 business or civic uses, and other floors are used, designed, or
 13 34 intended to be used for residential purposes.
 13 35    Sec. 32.  Section 657A.10A, subsection 1, paragraph b, Code
 14  1 2015, is amended to read as follows:
 14  2    b.  The petition shall be filed in the district court of
 14  3 the county in which the property is located. Service on the
 14  4 owner and any other named respondents shall be by personal
 14  5 service or certified mail and or, if service cannot be made by
 14  6 either method, by posting the notice in a conspicuous place
 14  7 on the building and by publication in a newspaper of general
 14  8 circulation in the city. The action shall be in equity.
 14  9    Sec. 33.  Section 657A.10A, subsection 3, paragraphs d, f,
 14 10 and j, Code 2015, are amended to read as follows:
 14 11    d.  Whether the building meets the city's housing code for as
 14 12  being fit for human habitation, occupancy, or use.
 14 13    f.  Whether the building is boarded up or otherwise secured
 14 14 from unauthorized entry.
 14 15    j.  Past and current compliance with orders of the local
 14 16 housing or building code official.
 14 17    Sec. 34.  Section 657A.10A, subsection 3, Code 2015, is
 14 18 amended by adding the following new paragraphs:
 14 19    NEW PARAGRAPH.  0e.  Whether the building meets the city's
 14 20 building code as being fit for occupancy or use.
 14 21    NEW PARAGRAPH.  0h.  Whether those claiming an interest
 14 22 in the property have, prior to the filing of the petition,
 14 23 demonstrated a good=faith effort to restore the property to
 14 24 productive use.
 14 25    Sec. 35.  Section 657A.10A, subsections 4 and 5, Code 2015,
 14 26 are amended to read as follows:
 14 27    4.  In lieu of the considerations in subsection 3, if the
 14 28 city can establish to the court's satisfaction that all parties
 14 29 with an interest in the property have received proper notice
 14 30 and either consented to the entry of an order awarding title
 14 31 to the property to the city or did not make a good faith
 14 32  good=faith effort to comply with the order of the local housing
 14 33 or building code official within sixty days after the filing
 14 34 of the petition, the court shall enter judgment against the
 14 35 respondents granting the city title to the property.
 15  1    5.  If the court determines that the property has been
 15  2 abandoned or that subsection 4 applies, the court shall enter
 15  3 judgment and order awarding title to the city. The title
 15  4 awarded to the city shall be free and clear of any claims,
 15  5 liens, or encumbrances held by the respondents.
 15  6                           DIVISION VI
 15  7                  HOUSING ENTERPRISE TAX CREDIT
 15  8    Sec. 36.  2014 Iowa Acts, chapter 1130, is amended by adding
 15  9 the following new section:
 15 10    NEW SECTION.  SEC. 41A.  Notwithstanding the section of
 15 11 this Act repealing section 15E.193B, the economic development
 15 12 authority may enter into an agreement and issue housing
 15 13 enterprise tax credits to a housing business if all the
 15 14 following conditions are met:
 15 15    1.  The city or county in which the enterprise zone is
 15 16 located mailed, or caused to be mailed, the necessary program
 15 17 application forms on or after June 1, 2014, and prior to July
 15 18 1, 2014, but the applications were not received by the economic
 15 19 development authority.  The economic development authority may
 15 20 accept an affidavit by a city to confirm timely mailing of the
 15 21 application forms, notwithstanding section 622.105.
 15 22    2.  The application forms submitted pursuant to subsection 1
 15 23 were approved by all necessary governing bodies and commissions
 15 24 of the city or county as required by chapter 15E, division
 15 25 XVIII, Code 2014.
 15 26    3.  The economic development authority determines the
 15 27 housing business would otherwise be eligible under section
 15 28 15E.193B, Code 2014.
 15 29    4.  The city or county and the eligible housing business meet
 15 30 all other requirements of the housing enterprise tax credit
 15 31 program under chapter 15E, division XVIII, Code 2014, and the
 15 32 agreement to be entered into pursuant to this section.
 15 33    Sec. 37.  2014 Iowa Acts, chapter 1130, section 43,
 15 34 subsection 1, is amended to read as follows:
 15 35    1.  On or after the effective date of this division of this
 16  1 Act, a city or county shall not create an enterprise zone under
 16  2 chapter 15E, division XVIII, or enter into a new agreement or
 16  3 amend an existing agreement under chapter 15E, division XVIII,
 16  4 unless otherwise authorized in this Act.
 16  5    Sec. 38.  EFFECTIVE UPON ENACTMENT.  This division of this
 16  6 Act, being deemed of immediate importance, takes effect upon
 16  7 enactment.
 16  8    Sec. 39.  RETROACTIVE APPLICABILITY.  This division of this
 16  9 Act applies retroactively to July 1, 2014.
 16 10                           EXPLANATION
 16 11 The inclusion of this explanation does not constitute agreement with
 16 12 the explanation's substance by the members of the general assembly.
 16 13    This bill relates to economic development by modifying life
 16 14 cycle cost analysis provisions relating to public facilities,
 16 15 specifying the state matching funds available for payment of
 16 16 intern wages under the science, technology, engineering, and
 16 17 mathematics internship program, modifying provisions related
 16 18 to reinvestment districts and to flood mitigation projects,
 16 19 modifying provisions concerning enterprise zones, and modifying
 16 20 provisions and establishing a program relating to nuisance
 16 21 property and abandoned buildings.
 16 22    Division I of the bill modifies provisions relating to the
 16 23 life cycle analysis required of certain public facilities.
 16 24 The division adds a definition of "addition" and modifies the
 16 25 definitions of "facility" and "renovation" and requires a
 16 26 public agency responsible for the construction or renovation
 16 27 of a facility or the construction of an addition to a facility
 16 28 to include the performance of a life cycle cost analysis as
 16 29 a design criterion on or after the effective date of the
 16 30 division.  The division requires a public agency or person
 16 31 preparing a life cycle cost analysis for a public agency to
 16 32 use methodology established, by rule, by the state building
 16 33 code commissioner, rather than methods and analytical
 16 34 models provided by the economic development authority.  The
 16 35 division requires the commissioner to also adopt rules for the
 17  1 implementation and adoption of the life cycle cost analysis.
 17  2    Division II of the bill amends language relating to wages
 17  3 paid to an intern under the science, technology, engineering,
 17  4 and mathematics internship program to specify that an Iowa
 17  5 employer may receive financial assistance from the state on a
 17  6 matching basis.  The division provides that if the authority
 17  7 offers financial assistance for a student at a small or
 17  8 medium sized Iowa firm that is an innovative business or for
 17  9 a science, technology, engineering, or mathematics student
 17 10 working with an Iowa employer, for every $2 earned by the
 17 11 student in wages, the employer's payment of $1 shall be
 17 12 matched by the authority with $1 on a reimbursement basis.
 17 13 The division requires the authority to administer the two
 17 14 components of the internship program in as similar a manner
 17 15 as possible. The division authorizes the authority to adopt
 17 16 emergency rules for this division of the bill.  The division
 17 17 takes effect upon enactment and applies retroactively to
 17 18 contracts for financial assistance entered into on or after
 17 19 July 1, 2014.
 17 20    Division III of the bill relates to reinvestment districts
 17 21 under Code chapter 15J and flood mitigation projects under
 17 22 Code chapter 418.  The division eliminates the prohibition on
 17 23 the flood mitigation board approving an amendment on or after
 17 24 July 1, 2018, to an existing district's plan.  The division
 17 25 modifies the definition of "governmental entity" for purposes
 17 26 of a flood mitigation project to include a joint board or other
 17 27 legal or administrative entity formed by a Code chapter 28F
 17 28 agreement entered into by one or more counties, one or more
 17 29 cities at least partly within the counties, and one or more
 17 30 Code chapter 358 sanitary districts or a combined water and
 17 31 sanitary district established by Code chapter 357 or 358 and
 17 32 located at least partly within the city or county.
 17 33    The division provides that, for purposes of funding a
 17 34 flood mitigation project, the sales tax increment area shall
 17 35 not include any parcels that are included in a reinvestment
 18  1 district established under Code chapter 15J.
 18  2    The division provides that transfers of sales tax increment
 18  3 revenue to a reinvestment district account shall be made
 18  4 prior to transfer of sales tax increment revenue to a flood
 18  5 mitigation project account. The division also provides that
 18  6 from the amounts transferred to reinvestment district accounts
 18  7 and flood mitigation project accounts the department of revenue
 18  8 shall retain the lesser of $25,000 or the actual cost of
 18  9 administering the specified transfers of sales tax increment
 18 10 revenue quarterly as a repayment receipt.  The bill provides
 18 11 the process for the retention of the revenue.
 18 12    The division is effective upon enactment.  The division
 18 13 applies retroactively to reinvestment districts designated
 18 14 under Code chapter 15J in existence on or after July 1, 2014,
 18 15 and flood mitigation project plan applications received before,
 18 16 on, or after the effective date of the division.  The sections
 18 17 of the division amending Code section 423.2, regarding the
 18 18 transfers of sales tax increment revenue to a reinvestment
 18 19 district and to a flood mitigation project account as well as
 18 20 the retention of repayment receipts, apply to transfers of
 18 21 sales tax revenues made on or after July 1, 2015.
 18 22    Division IV of the bill relates to enterprise zones.  The
 18 23 division allows a city or county and the economic development
 18 24 authority for compliance reasons to amend agreements made under
 18 25 the enterprise zone program as long as the amendments do not
 18 26 increase the amount of incentives awarded and the economic
 18 27 development authority board approves.
 18 28    Division V of the bill relates to nuisance properties
 18 29 and abandoned buildings. The division requires the economic
 18 30 development authority to establish a nuisance property
 18 31 remediation fund for the purpose of providing financial
 18 32 assistance to cities for the remediation of nuisance
 18 33 properties, abandoned buildings, and other structures.  The
 18 34 division provides that moneys in a fund established in the high
 18 35 quality jobs program may be deposited in the nuisance property
 19  1 remediation fund.  The division allows the authority to operate
 19  2 the fund as a revolving fund and to use moneys in the fund for
 19  3 purposes of the program, or the authority may transfer the
 19  4 moneys to other funds it has created.  However, the division
 19  5 states that the authority must use any money specifically
 19  6 appropriated for nuisance property remediation assistance for
 19  7 the program.  Moneys in the fund consist of appropriations and
 19  8 any other moneys lawfully available to the authority.  The
 19  9 authority may provide this assistance using a competitive
 19 10 scoring process.  The division requires the authority to enter
 19 11 into an agreement with the city concerning the assistance.  The
 19 12 division allows the authority to grant priority to cities with
 19 13 severe blighted areas, widespread dilapidated housing stock, or
 19 14 high rates of low and moderate income residents.
 19 15    Division V also makes changes to the authority of cities and
 19 16 counties relating to certain abandoned or unsafe buildings.
 19 17 Code chapter 657A allows a city or county to take action
 19 18 to abate by rehabilitation a building used primarily for
 19 19 residential purposes that meets the statutory definition of
 19 20 "abandoned" or "public nuisance", as those terms are defined
 19 21 by the Iowa Code.  The costs associated with rehabilitating
 19 22 the building that remain unpaid by the owner create a mortgage
 19 23 lien against the property.  In lieu of abatement through
 19 24 rehabilitation, Code section 657A.10A allows a city to file
 19 25 an action in district court to take title to an abandoned
 19 26 building.  The court may award title to the petitioning city if
 19 27 the court finds that the building is abandoned, using factors
 19 28 established in statute, or if the city establishes that all
 19 29 interested parties received proper notice and the interested
 19 30 parties either consented to the title transfer or had taken no
 19 31 action to comply with local housing official orders within 60
 19 32 days after the filing of the petition.
 19 33    The division amends the definition of "building" in Code
 19 34 section 657A.1 to include buildings used or intended to be used
 19 35 for commercial or industrial purposes and makes corresponding
 20  1 amendments to refer to the local building code or local housing
 20  2 code, as applicable.
 20  3    Currently, Code section 657A.10A requires that service
 20  4 of notice of the filing of the petition for title be made
 20  5 on interested parties by certified mail and by posting on
 20  6 the building.  The division provides that service shall be
 20  7 by personal service or certified mail or, if service cannot
 20  8 be made by either method, by posting on the building and
 20  9 publication in a newspaper of general circulation in the city.
 20 10    The division also amends Code section 657A.10A to add to the
 20 11 listing of factors for the court to consider when determining
 20 12 whether property has been abandoned.
 20 13    Division VI allows the authority to enter into an agreement
 20 14 for a housing enterprise tax credit for certain housing
 20 15 businesses that had mailed applications to the authority prior
 20 16 to the July 1, 2014, repeal of the housing enterprise tax
 20 17 credit in Code section 15E.193B.
 20 18    The division states that the authority may enter into
 20 19 an agreement and issue housing enterprise tax credits to a
 20 20 housing business if the city or county mailed the application
 20 21 forms on or after June 1, 2014, and prior to July 1, 2014,
 20 22 but the applications were not received by the authority, the
 20 23 application forms submitted were approved by the necessary
 20 24 governing bodies and commissions, the authority determines
 20 25 the housing business would otherwise be eligible under the
 20 26 Code section that was repealed, and the city or county and the
 20 27 eligible housing business meet all other requirements of the
 20 28 housing enterprise tax credit program and of the agreement
 20 29 entered into with the economic development authority.
 20 30    The division takes effect upon enactment and applies
 20 31 retroactively to July 1, 2014.
       LSB 1213SV (3) 86
       ad/sc
feedback