Bill Text: IA SF356 | 2013-2014 | 85th General Assembly | Introduced
Bill Title: A bill for an act relating to the termination of the targeted small business financial assistance program and transferring funds for assistance to targeted small businesses. (Formerly SSB 1023.)
Spectrum: Committee Bill
Status: (Introduced - Dead) 2013-12-31 - END OF 2013 ACTIONS [SF356 Detail]
Download: Iowa-2013-SF356-Introduced.html
Senate
File
356
-
Introduced
SENATE
FILE
356
BY
COMMITTEE
ON
ECONOMIC
GROWTH
(SUCCESSOR
TO
SSB
1023)
A
BILL
FOR
An
Act
relating
to
the
termination
of
the
targeted
small
1
business
financial
assistance
program
and
transferring
funds
2
for
assistance
to
targeted
small
businesses.
3
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
4
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Section
1.
Section
8.6,
subsection
12,
Code
2013,
is
amended
1
to
read
as
follows:
2
12.
Targeted
small
businesses.
To
assist
the
director
3
of
the
economic
development
authority
as
requested
in
the
4
establishment
and
implementation
of
the
Iowa
targeted
small
5
business
procurement
Act
and
the
targeted
small
business
loan
6
guarantee
program
.
7
Sec.
2.
Section
15.107B,
subsection
2,
paragraph
c,
Code
8
2013,
is
amended
by
striking
the
paragraph.
9
Sec.
3.
Section
15.108,
subsection
7,
paragraph
c,
10
unnumbered
paragraph
1,
Code
2013,
is
amended
to
read
as
11
follows:
12
Aid
for
the
development
and
implementation
of
the
Iowa
13
targeted
small
business
procurement
Act
established
in
sections
14
73.15
through
73.21
and
the
targeted
small
business
financial
15
assistance
program
established
in
section
15.247
.
16
Sec.
4.
Section
15.108,
subsection
7,
paragraph
c,
17
subparagraph
(1),
subparagraph
division
(c),
Code
2013,
is
18
amended
by
striking
the
subparagraph
division.
19
Sec.
5.
Section
15.108,
subsection
7,
paragraph
c,
20
subparagraphs
(3)
and
(5),
Code
2013,
are
amended
by
striking
21
the
subparagraphs.
22
Sec.
6.
Section
15.240,
subsection
2,
paragraph
f,
Code
23
2013,
is
amended
by
striking
the
paragraph.
24
Sec.
7.
Section
15.313,
subsection
2,
paragraph
c,
Code
25
2013,
is
amended
by
striking
the
paragraph.
26
Sec.
8.
Section
73.20,
Code
2013,
is
amended
to
read
as
27
follows:
28
73.20
Determination
of
ability
to
perform.
29
Before
announcing
a
contract
award
pursuant
to
the
targeted
30
small
business
procurement
goal
program,
the
purchasing
31
authority
shall
evaluate
whether
the
targeted
small
business
32
scheduled
to
receive
the
award
is
able
to
perform
the
contract.
33
This
determination
shall
include
consideration
of
production
34
and
financial
capacity
and
technical
competence.
If
the
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purchasing
authority
determines
that
the
targeted
small
1
business
may
be
unable
to
perform,
the
director
of
the
economic
2
development
authority
shall
be
notified
and
shall
assist
the
3
targeted
small
business
pursuant
to
section
15.108,
subsection
4
7
,
paragraph
“c”
,
subparagraph
(3)
.
5
Sec.
9.
REPEAL.
Section
15.247,
Code
2013,
is
repealed.
6
Sec.
10.
TRANSITION
UPON
REPEAL.
7
1.
Upon
repeal
of
the
targeted
small
business
financial
8
assistance
program
established
in
section
15.247,
the
authority
9
shall
transfer
all
unencumbered
and
unobligated
moneys
accruing
10
to
the
authority
pursuant
to
existing
agreements
to
a
fund
11
established
by
the
authority
in
the
state
treasury
under
12
the
control
of
the
authority
pursuant
to
section
15.106A,
13
subsection
1,
paragraph
“o”,
to
be
used
for
the
purposes
of
14
providing
assistance
to
targeted
small
businesses
pursuant
to
15
subsection
3
of
this
section
of
this
Act.
16
2.
Loan
payments
or
repayments
and
recaptures
of
principal,
17
interest,
or
other
moneys
accruing
to
the
authority
on
or
after
18
June
30,
2013,
pursuant
to
an
agreement
under
section
15.247,
19
shall
be
transferred
to
a
fund
established
by
the
authority
in
20
the
state
treasury
under
the
control
of
the
authority
pursuant
21
to
section
15.106A,
subsection
1,
paragraph
“o”,
to
be
used
22
for
the
purposes
of
providing
assistance
to
targeted
small
23
businesses
pursuant
to
subsection
3
of
this
section
of
this
24
Act.
25
3.
a.
From
the
moneys
transferred
pursuant
to
subsections
1
26
and
2,
the
authority
shall
procure
the
services
of
a
qualified
27
microloan
service
provider
to
provide
financial
and
technical
28
assistance
to
targeted
small
businesses
in
Iowa.
29
b.
The
authority
shall
enter
into
an
agreement
with
a
30
microloan
service
provider
for
the
provision
of
services
to
31
targeted
small
businesses.
The
agreement
shall
provide
for
32
an
initial
performance
period
of
three
years.
In
engaging
33
the
services
of
a
qualified
microloan
service
provider,
the
34
authority
shall
require
the
service
provider
to
offer
financial
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and
technical
assistance
to
targeted
small
businesses
at
a
1
discounted
rate.
The
authority
shall
ensure
that
the
moneys
2
transferred
for
purposes
of
this
subsection
are
used
to
3
subsidize
the
provision
of
financial
and
technical
assistance
4
by
the
microloan
service
provider
to
targeted
small
businesses
5
in
order
for
the
microloan
service
provider
to
offer
its
6
services
at
a
discounted
rate.
7
c.
The
authority
shall,
upon
completion
of
the
initial
8
performance
period
and
the
other
applicable
terms
of
the
9
agreement
with
the
microloan
service
provider,
submit
a
report
10
to
the
general
assembly
and
the
governor’s
office
describing
11
the
results
achieved
by
the
service
provider
and
shall
make
12
recommendations
as
to
whether
the
state
should
continue
to
13
provide
funds
for
future
fiscal
years
for
the
purpose
of
14
providing
financial
and
technical
assistance
to
targeted
15
small
businesses
through
the
services
of
a
microloan
service
16
provider.
17
d.
For
purposes
of
this
subsection,
“targeted
small
18
business”
means
the
same
as
defined
in
section
15.102.
19
EXPLANATION
20
This
bill
terminates
the
targeted
small
business
financial
21
assistance
program
and
transfers
funds
to
the
economic
22
development
authority
for
the
services
of
a
microloan
service
23
provider
to
assist
targeted
small
businesses.
24
The
Code
defines
a
targeted
small
business
as
a
small
25
business
that
is
51
percent
or
more
owned,
operated,
and
26
actively
managed
by
a
minority
person,
a
person
with
a
27
disability,
or
a
woman.
A
targeted
small
business
must
also
be
28
located
in
the
state,
operated
for
profit,
and
have
an
average
29
annual
gross
income
of
less
than
$4
million
over
the
three
30
preceding
fiscal
years.
The
targeted
small
business
financial
31
assistance
program
is
a
program
that
provides
loan-based
32
financing
and
grants
to
eligible
targeted
small
businesses
33
through
the
strategic
investment
fund
created
in
Code
section
34
15.313.
The
bill
terminates
the
targeted
small
business
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financial
assistance
program,
as
well
as
the
program’s
board,
1
and
the
targeted
small
business
advocate
service
provider
which
2
provided
mentoring,
outreach,
and
professional
development
3
services
to
certified
targeted
small
businesses.
4
The
bill
allows
the
economic
development
authority,
upon
5
repeal
of
the
program,
to
transfer
all
unencumbered
and
6
unobligated
moneys
as
well
as
loan
payments
or
repayments
7
and
recaptures
of
principal,
interest,
or
other
moneys
8
accruing
from
an
existing
agreement
entered
into
under
the
9
targeted
small
business
financial
assistance
program
to
a
fund
10
established
by
the
economic
development
authority.
11
The
bill
requires
the
authority
to
use
the
moneys
12
transferred
to
provide
assistance
to
targeted
small
businesses
13
through
the
procurement
of
the
services
of
a
qualified
14
microloan
service
provider
that
will
provide
financial
and
15
technical
assistance
to
targeted
small
businesses
in
Iowa.
16
The
bill
provides
that
the
economic
development
authority
17
shall
enter
into
an
agreement
with
a
microloan
service
provider
18
for
the
provision
of
financial
and
technical
services
to
19
targeted
small
businesses.
The
economic
development
authority
20
shall
require
that
the
microloan
service
provider
offer
21
such
assistance
to
targeted
small
businesses
at
a
discounted
22
rate,
and
the
transferred
moneys
shall
be
used
to
enable
the
23
microloan
service
provider
to
offer
that
discounted
rate.
The
24
agreement
shall
provide
for
a
three-year
initial
performance
25
period.
26
After
completion
of
the
initial
performance
period,
the
27
bill
requires
the
economic
development
authority
to
submit
28
a
report
to
the
governor
and
the
general
assembly
with
the
29
results
achieved
by
the
service
provider
and
recommendations
30
as
to
whether
the
state
should
continue
to
provide
funds
for
31
future
fiscal
years
for
the
purpose
of
providing
assistance
to
32
targeted
small
businesses
through
a
microloan
service
provider.
33
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