Bill Text: IA SSB1023 | 2013-2014 | 85th General Assembly | Introduced
Bill Title: A study bill for an act relating to the termination of the targeted small business financial assistance program and making appropriations for assistance to targeted small businesses.
Spectrum: Unknown
Status: (N/A - Dead) 2013-03-05 - Voted - Economic Growth. [SSB1023 Detail]
Download: Iowa-2013-SSB1023-Introduced.html
Senate
Study
Bill
1023
-
Introduced
SENATE/HOUSE
FILE
_____
BY
(PROPOSED
ECONOMIC
DEVELOPMENT
AUTHORITY
BILL)
A
BILL
FOR
An
Act
relating
to
the
termination
of
the
targeted
small
1
business
financial
assistance
program
and
making
2
appropriations
for
assistance
to
targeted
small
businesses.
3
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
4
TLSB
1272XD
(5)
85
ad/sc
S.F.
_____
H.F.
_____
DIVISION
I
1
TARGETED
SMALL
BUSINESS
FINANCIAL
ASSISTANCE
PROGRAM
2
Section
1.
Section
8.6,
subsection
12,
Code
2013,
is
amended
3
to
read
as
follows:
4
12.
Targeted
small
businesses.
To
assist
the
director
5
of
the
economic
development
authority
as
requested
in
the
6
establishment
and
implementation
of
the
Iowa
targeted
small
7
business
procurement
Act
and
the
targeted
small
business
loan
8
guarantee
program
.
9
Sec.
2.
Section
15.107B,
subsection
2,
paragraph
c,
Code
10
2013,
is
amended
by
striking
the
paragraph.
11
Sec.
3.
Section
15.108,
subsection
7,
paragraph
c,
12
unnumbered
paragraph
1,
Code
2013,
is
amended
to
read
as
13
follows:
14
Aid
for
the
development
and
implementation
of
the
Iowa
15
targeted
small
business
procurement
Act
established
in
sections
16
73.15
through
73.21
and
the
targeted
small
business
financial
17
assistance
program
established
in
section
15.247
.
18
Sec.
4.
Section
15.108,
subsection
7,
paragraph
c,
19
subparagraph
(1),
subparagraph
division
(c),
Code
2013,
is
20
amended
by
striking
the
subparagraph
division.
21
Sec.
5.
Section
15.108,
subsection
7,
paragraph
c,
22
subparagraphs
(3)
and
(5),
Code
2013,
are
amended
by
striking
23
the
subparagraphs.
24
Sec.
6.
Section
15.240,
subsection
2,
paragraph
f,
Code
25
2013,
is
amended
by
striking
the
paragraph.
26
Sec.
7.
Section
15.313,
subsection
2,
paragraph
c,
Code
27
2013,
is
amended
by
striking
the
paragraph.
28
Sec.
8.
Section
73.20,
Code
2013,
is
amended
to
read
as
29
follows:
30
73.20
Determination
of
ability
to
perform.
31
Before
announcing
a
contract
award
pursuant
to
the
targeted
32
small
business
procurement
goal
program,
the
purchasing
33
authority
shall
evaluate
whether
the
targeted
small
business
34
scheduled
to
receive
the
award
is
able
to
perform
the
contract.
35
-1-
LSB
1272XD
(5)
85
ad/sc
1/
5
S.F.
_____
H.F.
_____
This
determination
shall
include
consideration
of
production
1
and
financial
capacity
and
technical
competence.
If
the
2
purchasing
authority
determines
that
the
targeted
small
3
business
may
be
unable
to
perform,
the
director
of
the
economic
4
development
authority
shall
be
notified
and
shall
assist
the
5
targeted
small
business
pursuant
to
section
15.108,
subsection
6
7
,
paragraph
“c”
,
subparagraph
(3)
.
7
Sec.
9.
REPEAL.
Section
15.247,
Code
2013,
is
repealed.
8
Sec.
10.
TRANSITION
UPON
REPEAL.
9
1.
Upon
repeal
of
the
targeted
small
business
financial
10
assistance
program
established
in
section
15.247,
the
authority
11
shall
transfer
all
unencumbered
and
unobligated
moneys
accruing
12
to
the
authority
pursuant
to
existing
agreements
to
a
fund
13
established
by
the
authority
in
the
state
treasury
under
14
the
control
of
the
authority
pursuant
to
section
15.106A,
15
subsection
1,
paragraph
“o”,
to
be
used
for
the
purposes
of
16
administering
economic
development
programs
in
chapter
15,
17
chapter
15E,
or
another
targeted
small
business
assistance
18
program
as
may
be
authorized
by
law.
19
2.
Loan
payments
or
repayments
and
recaptures
of
principal,
20
interest,
or
other
moneys
accruing
to
the
authority
on
or
after
21
June
30,
2013,
pursuant
to
an
agreement
under
section
15.247,
22
shall
be
transferred
to
a
fund
established
by
the
authority
in
23
the
state
treasury
under
the
control
of
the
authority
pursuant
24
to
section
15.106A,
subsection
1,
paragraph
“o”.
25
DIVISION
II
26
TARGETED
SMALL
BUSINESS
APPROPRIATION
27
Sec.
11.
TARGETED
SMALL
BUSINESSES.
There
is
appropriated
28
from
the
general
fund
of
the
state
to
the
economic
development
29
authority
for
the
fiscal
year
beginning
July
1,
2013,
and
30
ending
June
30,
2014,
the
following
amount,
or
so
much
thereof
31
as
is
necessary,
to
be
used
for
the
purposes
designated
in
this
32
section:
33
For
the
services
of
a
qualified
microloan
service
provider
34
to
provide
financial
and
technical
assistance
to
targeted
small
35
-2-
LSB
1272XD
(5)
85
ad/sc
2/
5
S.F.
_____
H.F.
_____
businesses
in
Iowa:
1
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
$
250,000
2
1.
The
authority
shall
enter
into
an
agreement
with
a
3
microloan
service
provider
for
the
provision
of
services
to
4
targeted
small
businesses.
In
engaging
the
services
of
a
5
qualified
microloan
service
provider,
the
authority
shall
6
require
the
service
provider
to
offer
financial
and
technical
7
assistance
to
targeted
small
businesses
at
a
discounted
8
rate.
The
authority
shall
ensure
that
the
moneys
appropriated
9
pursuant
to
this
section
are
used
to
subsidize
the
provision
10
of
financial
and
technical
assistance
by
the
microloan
11
service
provider
to
targeted
small
businesses
in
order
for
12
the
microloan
service
provider
to
offer
its
services
at
a
13
discounted
rate.
14
2.
The
authority
shall,
upon
completion
of
the
terms
of
the
15
agreement
with
the
microloan
service
provider,
submit
a
report
16
to
the
general
assembly
and
the
governor’s
office
regarding
17
the
results
achieved
by
the
service
provider
and
shall
make
18
recommendations
as
to
whether
the
state
should
continue
to
19
appropriate
funds
for
future
fiscal
years
for
the
purpose
20
of
providing
financial
and
technical
assistance
to
targeted
21
small
businesses
through
the
services
of
a
microloan
service
22
provider.
23
3.
For
purposes
of
this
section,
“targeted
small
business”
24
means
the
same
as
defined
in
section
15.102.
25
4.
Notwithstanding
section
8.33,
moneys
appropriated
in
26
this
section
that
remain
unencumbered
or
unobligated
at
the
27
close
of
the
fiscal
year
shall
not
revert
but
shall
remain
28
available
for
expenditure
for
the
purposes
designated
until
the
29
close
of
the
succeeding
fiscal
year.
30
5.
Notwithstanding
section
12C.7,
subsection
2,
earnings
31
or
interest
on
moneys
deposited
in
a
fund
shall
be
credited
to
32
the
fund.
33
EXPLANATION
34
This
bill
terminates
the
targeted
small
business
financial
35
-3-
LSB
1272XD
(5)
85
ad/sc
3/
5
S.F.
_____
H.F.
_____
assistance
program
and
appropriates
moneys
to
the
economic
1
development
authority
for
the
services
of
a
microloan
service
2
provider
to
assist
targeted
small
businesses.
3
Division
I
of
the
bill
repeals
the
targeted
small
business
4
financial
assistance
program.
The
Code
defines
a
targeted
5
small
business
as
a
small
business
that
is
51
percent
or
more
6
owned,
operated,
and
actively
managed
by
a
minority
person,
7
a
person
with
a
disability,
or
a
woman.
A
targeted
small
8
business
must
also
be
located
in
the
state,
operated
for
9
profit,
and
have
an
average
annual
gross
income
of
less
than
$4
10
million
over
the
three
preceding
fiscal
years.
The
targeted
11
small
business
financial
assistance
program
is
a
program
that
12
provides
loan-based
financing
and
grants
to
eligible
targeted
13
small
businesses
through
the
strategic
investment
fund
created
14
in
Code
section
15.313.
The
bill
terminates
the
targeted
small
15
business
financial
assistance
program,
as
well
as
the
program’s
16
board,
and
the
targeted
small
business
advocate
service
17
provider
which
provided
mentoring,
outreach,
and
professional
18
development
services
to
certified
targeted
small
businesses.
19
The
bill
allows
the
economic
development
authority,
upon
20
repeal
of
the
program,
to
transfer
all
unencumbered
and
21
unobligated
moneys
as
well
as
loan
payments
or
repayments
22
and
recaptures
of
principal,
interest,
or
other
moneys
23
accruing
from
an
existing
agreement
entered
into
under
the
24
targeted
small
business
financial
assistance
program
to
a
fund
25
established
by
the
economic
development
authority.
26
Division
II
of
the
bill
appropriates
$250,000
from
the
27
general
fund
to
the
economic
development
authority
for
28
the
services
of
a
qualified
microloan
service
provider
to
29
provide
financial
and
technical
assistance
to
targeted
small
30
businesses.
31
The
bill
provides
that
the
economic
development
authority
32
shall
enter
into
an
agreement
with
a
microloan
service
provider
33
for
the
provision
of
financial
and
technical
services
to
34
targeted
small
businesses.
The
economic
development
authority
35
-4-
LSB
1272XD
(5)
85
ad/sc
4/
5
S.F.
_____
H.F.
_____
shall
require
that
the
microloan
service
provider
offer
1
such
assistance
to
targeted
small
businesses
at
a
discounted
2
rate,
and
the
moneys
appropriated
to
the
economic
development
3
authority
shall
be
used
to
enable
the
microloan
service
4
provider
to
offer
that
discounted
rate.
5
The
bill
requires
the
economic
development
authority
to
6
submit
a
report
to
the
governor
and
the
general
assembly
7
with
the
results
achieved
by
the
service
provider
and
8
recommendations
as
to
whether
the
state
should
continue
to
9
appropriate
funds
for
future
fiscal
years
for
the
purpose
of
10
providing
assistance
to
targeted
small
businesses
through
a
11
microloan
service
provider.
12
-5-
LSB
1272XD
(5)
85
ad/sc
5/
5
