H.F. 555 DIVISION I 1 SPORTS TOURISM PROGRAM —— TECHNICAL CHANGES 2 Section 1. Section 15F.401, subsections 2 and 6, Code 2017, 3 are amended to read as follows: 4 2. a. A city or county in the state or a public 5 organization entity , including a convention and visitors 6 bureau or a district, may apply to the authority for financial 7 assistance for a project that actively and directly promotes 8 sporting events for accredited colleges and universities and 9 other sporting events in the area served by the city, county, 10 or public organization entity . 11 b. A city, county, or public organization entity may apply 12 for and receive financial assistance for more than one project. 13 c. A city, county, or public organization entity may apply 14 for financial assistance for a project that spans multiple 15 fiscal years or may apply for renewal of financial assistance 16 awarded in a prior year if all applicable contractual 17 requirements are met. The decision as to whether to renew 18 an award shall be at the discretion of the board. The board 19 may adopt by rule certain metrics and return on investment 20 estimates for purposes of this paragraph. The authority may 21 include such metrics and estimates in a program agreement 22 executed pursuant to this section . 23 d. A convention and visitors bureau may apply to the 24 authority for financial assistance pursuant to this section and 25 a district may apply to the authority for district financial 26 assistance, but a convention and visitors bureau shall not in 27 the same year receive financial assistance under the program 28 created in this section and financial assistance as part of a 29 district. 30 6. a. A city, county, or public organization entity 31 may use financial assistance received under the program for 32 marketing, promotions, and infrastructure. Whether an activity 33 or individual cost item is directly related to the promotion 34 of the sporting event shall be within the discretion of the 35 -1- LSB 1328HV (1) 87 aw/sc/rn 1/ 7

H.F. 555 authority. 1 b. All applications to the authority for financial 2 assistance shall be made at least ninety days prior to an 3 event’s scheduled date. A city, county, or public organization 4 entity shall not use financial assistance received under the 5 program as reimbursement for completed projects. 6 Sec. 2. Section 15F.403, subsection 2, paragraph a, Code 7 2017, is amended to read as follows: 8 a. Moneys in the fund are appropriated to the authority 9 for purposes of providing financial assistance to cities, 10 counties, and public organizations entities under the sports 11 tourism program established and administered pursuant to this 12 subchapter . 13 DIVISION II 14 TARGETED SMALL BUSINESS CERTIFICATION 15 Sec. 3. Section 8A.111, subsection 7, Code 2017, is amended 16 to read as follows: 17 7. An annual report regarding the Iowa targeted small 18 business procurement Act activities of the department as 19 required under section 15.108, subsection 7 , paragraph 20 “c” , and quarterly reports regarding the total dollar 21 amount of certified purchases for certified targeted small 22 businesses during the previous quarter as required in section 23 73.16, subsection 2 . The department shall keep any vendor 24 identification information received from the department of 25 inspections and appeals economic development authority as 26 provided in section 10A.104, subsection 8 15.108, subsection 27 7, paragraph “0d” , and necessary for the quarterly reports, 28 confidential to the same extent as the department of inspection 29 and appeals economic development authority is required to 30 keep such information. Confidential information received by 31 the department from the department of inspections and appeals 32 economic development authority shall not be disclosed except 33 pursuant to court order or with the approval of the department 34 of inspections and appeals economic development authority . 35 -2- LSB 1328HV (1) 87 aw/sc/rn 2/ 7

H.F. 555 Sec. 4. Section 10A.104, subsection 8, Code 2017, is amended 1 by striking the subsection. 2 Sec. 5. Section 12.44, Code 2017, is amended to read as 3 follows: 4 12.44 Iowa satisfaction and performance bond program. 5 Agencies of state government shall be required to waive the 6 requirement of satisfaction, performance, surety, or bid bonds 7 for targeted small businesses which are able to demonstrate 8 the inability of securing such a bond because of a lack of 9 experience, lack of net worth, or lack of capital. This waiver 10 shall not apply to businesses with a record of repeated failure 11 of substantial performance or material breach of contract in 12 prior circumstances. The waiver shall be applied only to a 13 project or individual transaction amounting to fifty thousand 14 dollars or less, notwithstanding section 573.2 . In order to 15 qualify, the targeted small business shall provide written 16 evidence to the department of inspections and appeals economic 17 development authority that the bond would otherwise be denied 18 the business. The granting of the waiver shall in no way 19 relieve the business from its contractual obligations and shall 20 not preclude the state agency from pursuing any remedies under 21 law upon default or breach of contract. 22 The department of inspections and appeals economic 23 development authority shall certify targeted small businesses 24 for eligibility and participation in this program and shall 25 make this information available to other state agencies. 26 Subdivisions of state government may also grant such a 27 waiver under similar circumstances. 28 Sec. 6. Section 15.107B, subsection 2, paragraph b, Code 29 2017, is amended to read as follows: 30 b. A summary of the report filed by December 1 of each year 31 by the department of inspections and appeals with the authority 32 regarding certifications of targeted small businesses. At a 33 minimum, the summary shall include the number of certified 34 targeted small businesses for the previous year, the increase 35 -3- LSB 1328HV (1) 87 aw/sc/rn 3/ 7

H.F. 555 or decrease in that number during the previous fiscal year 1 compared to the prior fiscal year, and the number of targeted 2 small businesses that have been decertified in the previous 3 fiscal year. 4 Sec. 7. Section 15.108, subsection 7, paragraph c, 5 subparagraph (1), subparagraph division (b), Code 2017, is 6 amended by striking the subparagraph division. 7 Sec. 8. Section 15.108, subsection 7, Code 2017, is amended 8 by adding the following new paragraph: 9 NEW PARAGRAPH . 0d. (1) Establish standards and procedures, 10 by rule, for certifying that targeted small businesses are 11 eligible to participate in the procurement program established 12 in sections 73.15 through 73.21 and are eligible for financial 13 and technical assistance provided for under this subsection. 14 The rules for certifying eligibility adopted pursuant to this 15 paragraph shall not recognize self-certification by a business. 16 The authority may also establish, by rule, the appropriate 17 level of public access to differing classes of electronic 18 records and other records under the procurement program to 19 ensure the confidentiality of any records that are required by 20 law to be confidential. 21 (2) Maintain a current directory of targeted small 22 businesses certified pursuant to this paragraph. The 23 authority shall also provide information to the department of 24 administrative services necessary for the identification of 25 targeted small businesses under section 8A.111, subsection 7. 26 Sec. 9. Section 15.108, subsection 7, paragraph g, 27 subparagraph (1), Code 2017, is amended to read as follows: 28 (1) Developing a uniform small business vendor application 29 form which can be adopted by all agencies and departments of 30 state government to identify small businesses and targeted 31 small businesses which desire to sell goods and services to the 32 state. This form shall also contain information which can be 33 used to determine certification as a targeted small business 34 pursuant to section 10A.104, subsection 8 paragraph “0d” . 35 -4- LSB 1328HV (1) 87 aw/sc/rn 4/ 7

H.F. 555 Sec. 10. Section 73.16, subsection 2, paragraph a, 1 unnumbered paragraph 1, Code 2017, is amended to read as 2 follows: 3 Prior to the commencement of a fiscal year, the director of 4 each agency or department of state government having purchasing 5 authority, in cooperation with the targeted small business 6 marketing and compliance project manager of the economic 7 development authority, shall establish for that fiscal year 8 a procurement goal from certified targeted small businesses 9 identified pursuant to section 10A.104, subsection 8 15.108, 10 subsection 7, paragraph “0d” . 11 Sec. 11. Section 73.16, subsection 2, paragraph c, 12 subparagraph (3), Code 2017, is amended to read as follows: 13 (3) A community college, area education agency, or school 14 district shall establish a procurement goal from certified 15 targeted small businesses, identified pursuant to section 16 10A.104, subsection 8 15.108, subsection 7, paragraph “0d” , of 17 at least ten percent of the value of anticipated procurements 18 of goods and services including construction, but not including 19 utility services, each fiscal year. 20 DIVISION III 21 TARGETED JOBS WITHHOLDING CREDIT 22 Sec. 12. Section 403.19A, subsection 1, Code 2017, is 23 amended by adding the following new paragraph: 24 NEW PARAGRAPH . 0d. “Laborshed wage” means the wage level 25 represented by those wages within two standard deviations 26 from the mean wage within the laborshed area in which the 27 eligible business is located, as calculated by the authority, 28 by rule, using the most current covered wage and employment 29 data available from the department of workforce development for 30 the laborshed area. The authority shall designate laborshed 31 areas by rule, in consultation with the department of workforce 32 development. 33 Sec. 13. Section 403.19A, subsection 1, paragraph g, Code 34 2017, is amended to read as follows: 35 -5- LSB 1328HV (1) 87 aw/sc/rn 5/ 7

H.F. 555 g. “Targeted job” means a job in a business which is or will 1 be located in a pilot project city that pays a wage at least 2 equal to the countywide average laborshed wage. “Targeted job” 3 includes new or retained jobs from Iowa business expansions or 4 retentions within the city limits of the pilot project city and 5 those jobs resulting from established out-of-state businesses, 6 as defined by the economic development authority, moving to or 7 expanding in Iowa. 8 Sec. 14. Section 403.19A, subsection 2, paragraph b, Code 9 2017, is amended to read as follows: 10 b. (1) The department of economic development authority 11 shall approve four eligible cities as pilot project cities, one 12 pursuant to paragraph “a” , subparagraph (1), one pursuant to 13 paragraph “a” , subparagraph (2), and two pursuant to paragraph 14 “a” , subparagraph (3). If two eligible cities are approved 15 which are located in the same county and the county has a 16 population of less than forty-five thousand, the two approved 17 eligible cities shall be considered one pilot project city. If 18 more than two cities meeting the requirements of paragraph “a” , 19 subparagraph (3), apply to be designated as a pilot project 20 city, the department of economic development authority shall 21 determine which two cities hold the most potential to create 22 new jobs or generate the greatest capital within their areas. 23 Applications from eligible cities filed on or after October 1, 24 2006, shall not be considered. 25 (2) If a pilot project city does not enter into a 26 withholding agreement within one year of its approval as a 27 pilot project city, the city shall lose its status as a pilot 28 project city. If two pilot project cities are located in the 29 same county, the loss of status by one pilot project city shall 30 not cause the second pilot project city in the county to lose 31 its status as a pilot project city. Upon such occurrence, 32 the department of economic development authority shall take 33 applications from other eligible cities to replace that city. 34 Another city shall be designated within six months. 35 -6- LSB 1328HV (1) 87 aw/sc/rn 6/ 7

H.F. 555 (3) On July 1, 2011, the economic development authority 1 shall assume responsibility for the administration of this 2 subsection . 3 EXPLANATION 4 The inclusion of this explanation does not constitute agreement with 5 the explanation’s substance by the members of the general assembly. 6 This bill relates to programs and projects administered by 7 the economic development authority (authority). 8 Division I of the bill makes technical changes relating 9 to the eligibility for applying for and receiving financial 10 assistance under the sports tourism program by replacing the 11 term “organization” with “entity”. 12 Division II of the bill transfers responsibility for 13 certifying targeted small businesses under the targeted small 14 business procurement goal program, and associated reporting 15 requirements, from the department of inspections and appeals to 16 the authority. The division also specifies that the authority 17 may establish standards for public access to different classes 18 of information obtained under the program. 19 Division III of the bill relates to the targeted jobs 20 withholding credit pilot project by requiring that targeted 21 jobs be determined on the basis of a laborshed wage, as defined 22 in the bill, rather than a countywide average wage. Under 23 the division, a laborshed wage is a wage within two standard 24 deviations above or below the average wage within the laborshed 25 area. 26 -7- LSB 1328HV (1) 87 aw/sc/rn 7/ 7