Bill Text: IA SSB1025 | 2013-2014 | 85th General Assembly | Introduced
Bill Title: A study bill for an act relating to the administration of duties and programs by the economic development authority.
Spectrum: Unknown
Status: (N/A - Dead) 2013-02-28 - Voted - Economic Growth. [SSB1025 Detail]
Download: Iowa-2013-SSB1025-Introduced.html
Senate
Study
Bill
1025
-
Introduced
SENATE/HOUSE
FILE
_____
BY
(PROPOSED
ECONOMIC
DEVELOPMENT
AUTHORITY
BILL)
A
BILL
FOR
An
Act
relating
to
the
administration
of
duties
and
programs
by
1
the
economic
development
authority.
2
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
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DIVISION
I
1
CONTRACT
ADMINISTRATION
2
Section
1.
Section
15.106B,
subsection
4,
paragraph
c,
Code
3
2013,
is
amended
by
striking
the
paragraph.
4
Sec.
2.
Section
15.329,
subsection
2,
Code
2013,
is
amended
5
to
read
as
follows:
6
2.
a.
If
the
authority
finds
that
a
business
has
a
7
record
of
violations
of
the
law,
including
but
not
limited
to
8
antitrust,
environmental
,
and
worker
safety
statutes,
rules,
9
and
regulations,
that
over
a
period
of
time
that
tends
to
show
10
a
consistent
pattern
or
that
establishes
intentional,
criminal,
11
or
reckless
conduct
in
violation
of
such
laws
,
the
business
12
shall
not
qualify
for
economic
development
assistance
under
13
this
part,
unless
except
as
provided
in
paragraph
“b”
.
14
b.
If
the
authority
finds
that
the
violations
described
15
in
paragraph
“a”
did
not
seriously
affect
public
health
or
,
16
public
safety,
or
the
environment,
or
if
it
did,
the
authority
17
finds
that
there
were
mitigating
circumstances
involved,
the
18
business
may
qualify
for
economic
development
assistance
under
19
this
part,
notwithstanding
paragraph
“a”
.
20
c.
In
making
the
findings
and
determinations
regarding
21
violations,
mitigating
circumstances,
and
whether
the
business
22
is
disqualified
for
economic
development
assistance
under
this
23
part,
the
authority
shall
be
exempt
from
chapter
17A
.
24
Sec.
3.
Section
15.330,
unnumbered
paragraph
1,
Code
2013,
25
is
amended
to
read
as
follows:
26
A
business
shall
enter
into
an
agreement
with
the
authority
27
specifying
the
requirements
that
must
be
met
to
confirm
28
eligibility
pursuant
to
this
part
and
the
requirements
that
29
must
be
maintained
throughout
the
period
of
the
agreement
30
in
order
to
retain
the
incentives
or
financial
assistance
31
received
.
The
authority
shall
consult
with
the
community
32
during
negotiations
relating
to
the
agreement.
The
agreement
33
shall
contain,
at
a
minimum,
the
following
provisions:
34
Sec.
4.
Section
15.330,
subsection
2,
Code
2013,
is
amended
35
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to
read
as
follows:
1
2.
The
repayment
of
incentives
or
financial
assistance
2
by
the
business
if
the
business
does
not
meet
any
of
the
3
requirements
of
this
part
or
the
resulting
agreement.
The
4
repayment
of
incentives
pursuant
to
this
subsection
shall
be
5
considered
a
tax
payment
due
and
payable
to
the
department
of
6
revenue
by
any
taxpayer
who
has
claimed
such
incentives,
and
7
the
failure
to
make
such
a
repayment
may
be
treated
by
the
8
department
of
revenue
in
the
same
manner
as
a
failure
to
pay
9
the
tax
shown
due
or
required
to
be
shown
due
with
the
filing
of
10
a
return
or
deposit
form.
In
addition,
the
county
shall
have
11
the
authority
to
take
action
to
recover
the
value
of
property
12
taxes
not
collected
as
a
result
of
the
exemption
provided
to
13
the
business
under
this
part.
14
Sec.
5.
Section
15.333,
subsection
1,
Code
2013,
is
amended
15
to
read
as
follows:
16
1.
An
eligible
business
may
claim
a
tax
credit
equal
17
to
a
percentage
of
the
new
investment
directly
related
to
18
new
jobs
created
or
retained
by
the
location
or
expansion
19
of
an
eligible
business
under
the
program.
The
tax
credit
20
shall
be
amortized
equally
over
five
calendar
years
over
the
21
period
of
time
determined
by
the
authority
and
specified
in
22
the
agreement
entered
into
pursuant
to
section
15.330.
The
23
tax
credit
may
be
amortized
in
amounts
negotiated
with
the
24
authority
.
The
tax
credit
shall
be
allowed
against
taxes
25
imposed
under
chapter
422,
division
II,
III,
or
V
,
and
against
26
the
moneys
and
credits
tax
imposed
in
section
533.329
.
If
the
27
business
is
a
partnership,
S
corporation,
limited
liability
28
company,
cooperative
organized
under
chapter
501
and
filing
29
as
a
partnership
for
federal
tax
purposes,
or
estate
or
trust
30
electing
to
have
the
income
taxed
directly
to
the
individual,
31
an
individual
may
claim
the
tax
credit
allowed.
The
amount
32
claimed
by
the
individual
shall
be
based
upon
the
pro
rata
33
share
of
the
individual’s
earnings
of
the
partnership,
S
34
corporation,
limited
liability
company,
cooperative
organized
35
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under
chapter
501
and
filing
as
a
partnership
for
federal
1
tax
purposes,
or
estate
or
trust.
The
percentage
shall
be
2
determined
as
provided
in
section
15.335A
.
Any
tax
credit
in
3
excess
of
the
tax
liability
for
the
tax
year
may
be
credited
4
to
the
tax
liability
for
the
following
seven
years
or
until
5
depleted,
whichever
occurs
first.
6
DIVISION
II
7
MICROENTERPRISES
8
Sec.
6.
Section
15.102,
subsections
5
and
9,
Code
2013,
are
9
amended
by
striking
the
subsections.
10
Sec.
7.
REPEAL.
Section
15.240,
Code
2013,
is
repealed.
11
DIVISION
III
12
BROADBAND
ACCESS
GOVERNING
BOARD
13
Sec.
8.
2009
Iowa
Acts,
chapter
173,
section
13,
subsection
14
5,
paragraphs
b,
c,
and
d,
are
amended
by
striking
the
15
paragraphs.
16
DIVISION
IV
17
INDUSTRIAL
PROPERTY
TAX
EXEMPTION
APPROVALS
18
Sec.
9.
Section
427B.1,
subsection
1,
Code
2013,
is
amended
19
to
read
as
follows:
20
1.
A
city
council,
or
a
county
board
of
supervisors
as
21
authorized
by
section
427B.2
,
may
provide
by
ordinance
for
22
a
partial
exemption
from
property
taxation
of
the
actual
23
value
added
to
industrial
real
estate
by
the
new
construction
24
of
industrial
real
estate,
research-service
facilities,
25
warehouses,
distribution
centers
and
the
acquisition
of
or
26
improvement
to
machinery
and
equipment
assessed
as
real
estate
27
pursuant
to
section
427A.1,
subsection
1
,
paragraph
“e”
.
“New
28
construction”
means
new
buildings
and
structures
and
includes
29
new
buildings
and
structures
which
are
constructed
as
additions
30
to
existing
buildings
and
structures.
“New
construction”
does
31
not
include
reconstruction
of
an
existing
building
or
structure
32
which
does
not
constitute
complete
replacement
of
an
existing
33
building
or
structure
or
refitting
of
an
existing
building
or
34
structure,
unless
the
reconstruction
of
an
existing
building
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or
structure
is
required
due
to
economic
obsolescence
and
the
1
reconstruction
is
necessary
to
implement
recognized
industry
2
standards
for
the
manufacturing
and
processing
of
specific
3
products
and
the
reconstruction
is
required
for
the
owner
4
of
the
building
or
structure
to
continue
to
competitively
5
manufacture
or
process
those
products
which
determination
shall
6
receive
prior
approval
from
the
city
council
of
the
city
or
the
7
board
of
supervisors
of
the
county
upon
the
recommendation
of
8
the
economic
development
authority
.
The
exemption
shall
also
9
apply
to
new
machinery
and
equipment
assessed
as
real
estate
10
pursuant
to
section
427A.1,
subsection
1
,
paragraph
“e”
,
unless
11
the
machinery
or
equipment
is
part
of
the
normal
replacement
12
or
operating
process
to
maintain
or
expand
the
existing
13
operational
status.
“Research-service
facilities”
means
a
14
building
or
group
of
buildings
devoted
primarily
to
research
15
and
development
activities,
including
,
but
not
limited
to
,
the
16
design
and
production
or
manufacture
of
prototype
products
for
17
experimental
use,
and
corporate-research
services
which
do
not
18
have
a
primary
purpose
of
providing
on-site
services
to
the
19
public.
“Warehouse”
means
a
building
or
structure
used
as
a
20
public
warehouse
for
the
storage
of
goods
pursuant
to
chapter
21
554,
article
7
,
except
that
it
does
not
mean
a
building
or
22
structure
used
primarily
to
store
raw
agricultural
products
23
or
from
which
goods
are
sold
at
retail.
“Distribution
center”
24
means
a
building
or
structure
used
primarily
for
the
storage
25
of
goods
which
are
intended
for
subsequent
shipment
to
retail
26
outlets.
“Distribution
center”
does
not
mean
a
building
or
27
structure
used
primarily
to
store
raw
agricultural
products,
28
used
primarily
by
a
manufacturer
to
store
goods
to
be
used
in
29
the
manufacturing
process,
used
primarily
for
the
storage
of
30
petroleum
products,
or
used
for
the
retail
sale
of
goods.
31
EXPLANATION
32
This
bill
relates
to
the
administration
of
duties
and
33
programs
of
the
economic
development
authority.
34
Division
I
of
the
bill
eliminates
the
two-year
limitation
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on
the
length
of
a
contract
for
services
entered
into
by
the
1
authority.
2
Currently,
a
business
is
generally
ineligible
to
receive
3
economic
development
assistance
under
the
high
quality
jobs
4
program
if
the
business
has
a
record
that
tends
to
show
5
a
consistent
pattern
of
violations
of
the
law,
including
6
environmental
and
worker
safety
laws
as
well
as
violations
7
of
related
rules
and
regulations.
The
division
adds
that
8
a
business
is
also
ineligible
for
economic
development
9
assistance
if
the
business
engages
in
a
pattern
of
antitrust
10
violations
or
if
a
business’s
conduct
in
violating
any
laws,
11
including
environmental,
worker
safety,
and
antitrust
laws
is
12
intentional,
criminal,
or
reckless.
13
Current
law
requires
that
an
agreement
under
the
high
14
quality
jobs
program
for
assistance
or
incentives
entered
into
15
between
the
authority
and
a
business
include
requirements
for
a
16
business’s
eligibility
for
the
incentives
or
assistance.
The
17
bill
adds
that
the
agreement
must
also
include
the
requirements
18
that
a
business
receiving
incentives
or
assistance
must
19
maintain
throughout
the
period
of
the
agreement.
The
authority
20
must
ensure
that
a
business
only
receives
the
incentives
or
21
assistance
if
the
business
meets
the
initial
eligibility
22
requirements
and
maintains
the
program
requirements
throughout
23
the
agreement
period.
24
Current
law
also
provides
that
an
agreement
under
the
high
25
quality
jobs
program
must
include
the
repayment
of
incentives
26
or
assistance
by
a
business
if
a
business
does
not
meet
27
the
requirements
in
statute
or
the
agreement.
The
division
28
provides
that
the
repayment
of
incentives,
in
this
context,
is
29
a
tax
payment
due
and
payable
to
the
department
of
revenue
by
30
a
taxpayer,
and
the
taxpayer’s
failure
to
make
the
repayment
31
may
be
treated
by
the
department
of
revenue
in
the
same
manner
32
as
a
failure
to
pay
the
tax
shown
or
required
to
be
shown
33
due
when
filing
a
return
or
deposit
form.
The
division
also
34
authorizes
the
county
to
recover
property
taxes
exempted
under
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the
agreement.
1
Under
current
law,
an
eligible
business
under
the
high
2
quality
jobs
program
may
claim
a
tax
credit
equal
to
a
3
percentage
of
the
new
investment
directly
related
to
new
jobs
4
created
or
retained
by
a
location
expansion
of
the
eligible
5
business.
The
tax
credit
is
amortized
equally
over
five
6
calendar
years.
The
division
amends
this
provision
to
allow
7
the
authority
and
the
eligible
business
to
negotiate
the
amount
8
of
amortization,
and
the
length
of
the
amortization
period
9
would
be
described
in
the
agreement
entered
into
between
the
10
authority
and
the
eligible
business.
11
Division
II
of
the
bill
eliminates
the
community
12
microenterprise
development
organization
grant
program.
13
Division
III
of
the
bill
eliminates
the
broadband
access
14
governing
board
created
in
2009
Iowa
Acts.
The
governing
15
board
was
tasked
with
establishing
a
comprehensive
plan
for
16
the
deployment
and
sustainability
of
high-speed
broadband
17
access
in
areas
capable
of
timely
implementation
of
the
18
access,
establishing
a
competitive
process
for
the
disbursement
19
of
funds
for
such
deployment
and
sustainability,
making
20
recommendations
to
the
general
assembly,
and
establishing
and
21
maintaining
separate
accounts
for
the
use
of
certain
proceeds.
22
Division
IV
of
the
bill
relates
to
the
economic
development
23
authority’s
approval
of
industrial
property
tax
exemptions.
24
The
division
eliminates
the
requirement
that
the
economic
25
development
authority
recommend
prior
approval
of
industrial
26
property
tax
exemptions
by
local
governments.
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