House Study Bill 205 - Introduced SENATE/HOUSE FILE _____ BY (PROPOSED COMMITTEE ON APPROPRIATIONS BILL BY JOINT APPROPRIATIONS SUBCOMMITTEE ON ECONOMIC DEVELOPMENT) A BILL FOR An Act making appropriations to the department of cultural 1 affairs, the economic development authority, the Iowa 2 finance authority, the public employment relations board, 3 the department of workforce development, and the state board 4 of regents and certain regents institutions, and properly 5 related matters. 6 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 7 TLSB 1048JB (2) 87 aw/tm

S.F. _____ H.F. _____ DIVISION I 1 FY 2017-2018 2 Section 1. DEPARTMENT OF CULTURAL AFFAIRS. 3 1. There is appropriated from the general fund of the state 4 to the department of cultural affairs for the fiscal year 5 beginning July 1, 2017, and ending June 30, 2018, the following 6 amounts, or so much thereof as is necessary, to be used for the 7 purposes designated: 8 a. ADMINISTRATION 9 For salaries, support, maintenance, and miscellaneous 10 purposes, and for not more than the following full-time 11 equivalent positions for the department: 12 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 168,637 13 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . FTEs 56.50 14 The department of cultural affairs shall coordinate 15 activities with the tourism office of the economic development 16 authority to promote attendance at the state historical 17 building and at this state’s historic sites. 18 Full-time equivalent positions authorized under this 19 paragraph are funded, in full or in part, using moneys 20 appropriated under this paragraph and paragraphs “c” through 21 “g”. 22 b. COMMUNITY CULTURAL GRANTS 23 For planning and programming for the community cultural 24 grants program established under section 303.3 : 25 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 172,090 26 c. HISTORICAL DIVISION 27 For the support of the historical division: 28 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2,977,797 29 d. HISTORIC SITES 30 For the administration and support of historic sites: 31 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 426,398 32 e. ARTS DIVISION 33 For the support of the arts division: 34 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,192,188 35 -1- LSB 1048JB (2) 87 aw/tm 1/ 42

S.F. _____ H.F. _____ Of the moneys appropriated in this paragraph, the department 1 shall allocate $300,000 for purposes of the film office. 2 f. IOWA GREAT PLACES 3 For the Iowa great places program established under section 4 303.3C: 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 150,000 6 g. RECORDS CENTER RENT 7 For payment of rent for the state records center: 8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 227,243 9 h. CULTURAL TRUST GRANTS 10 For grant programs administered by the Iowa arts council 11 including but not limited to those programs supporting the 12 long-term financial stability and sustainability of nonprofit 13 cultural organizations: 14 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 25,000 15 2. Notwithstanding section 8.33, moneys appropriated in 16 this section that remain unencumbered or unobligated at the 17 close of the fiscal year shall not revert but shall remain 18 available for expenditure for the purposes designated until the 19 close of the succeeding fiscal year. 20 Sec. 2. GOALS AND ACCOUNTABILITY —— ECONOMIC DEVELOPMENT. 21 1. For the fiscal year beginning July 1, 2017, the goals 22 for the economic development authority shall be to expand and 23 stimulate the state economy, increase the wealth of Iowans, and 24 increase the population of the state. 25 2. To achieve the goals in subsection 1, the economic 26 development authority shall do all of the following for the 27 fiscal year beginning July 1, 2017: 28 a. Concentrate its efforts on programs and activities that 29 result in commercially viable products and services. 30 b. Adopt practices and services consistent with free 31 market, private sector philosophies. 32 c. Ensure economic growth and development throughout the 33 state. 34 d. Work with businesses and communities to continually 35 -2- LSB 1048JB (2) 87 aw/tm 2/ 42

S.F. _____ H.F. _____ improve the economic development climate along with the 1 economic well-being and quality of life for Iowans. 2 e. Coordinate with other state agencies to ensure that they 3 are attentive to the needs of an entrepreneurial culture. 4 f. Establish a strong and aggressive marketing image to 5 showcase Iowa’s workforce, existing industry, and potential. 6 A priority shall be placed on recruiting new businesses, 7 business expansion, and retaining existing Iowa businesses. 8 Emphasis shall be placed on entrepreneurial development through 9 helping entrepreneurs secure capital, and developing networks 10 and a business climate conducive to entrepreneurs and small 11 businesses. 12 g. Encourage the development of communities and quality of 13 life to foster economic growth. 14 h. Prepare communities for future growth and development 15 through development, expansion, and modernization of 16 infrastructure. 17 i. Develop public-private partnerships with Iowa businesses 18 in the tourism industry, Iowa tour groups, Iowa tourism 19 organizations, and political subdivisions in this state to 20 assist in the development of advertising efforts. 21 j. Develop, to the fullest extent possible, cooperative 22 efforts for advertising with contributions from other sources. 23 Sec. 3. ECONOMIC DEVELOPMENT AUTHORITY. 24 1. APPROPRIATION 25 a. There is appropriated from the general fund of the state 26 to the economic development authority for the fiscal year 27 beginning July 1, 2017, and ending June 30, 2018, the following 28 amount, or so much thereof as is necessary, to be used for the 29 purposes designated in this subsection, and for not more than 30 the following full-time equivalent positions: 31 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 13,400,000 32 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . FTEs 147.45 33 b. (1) For salaries, support, miscellaneous purposes, 34 programs, marketing, and the maintenance of an administration 35 -3- LSB 1048JB (2) 87 aw/tm 3/ 42

S.F. _____ H.F. _____ division, a business development division, a community 1 development division, a small business development division, 2 and other divisions the authority may organize. 3 (2) The full-time equivalent positions authorized under 4 this section are funded, in whole or in part, by the moneys 5 appropriated under this subsection or by other moneys received 6 by the authority, including certain federal moneys. 7 (3) For business development operations and programs, 8 international trade, export assistance, workforce recruitment, 9 and the partner state program. 10 (4) For transfer to a fund created pursuant to section 11 15.313 for purposes of financing strategic infrastructure 12 projects. 13 (5) For community economic development programs, tourism 14 operations, community assistance, plans for Iowa green corps 15 and summer youth programs, the mainstreet and rural mainstreet 16 programs, the school-to-career program, the community 17 development block grant, and housing and shelter-related 18 programs. 19 (6) For achieving the goals and accountability, and 20 fulfilling the requirements and duties required under this Act. 21 c. Notwithstanding section 8.33, moneys appropriated in 22 this subsection that remain unencumbered or unobligated at the 23 close of the fiscal year shall not revert but shall remain 24 available for expenditure for the purposes designated in this 25 subsection until the close of the succeeding fiscal year. 26 2. FINANCIAL ASSISTANCE RESTRICTIONS 27 a. A business creating jobs through moneys appropriated in 28 subsection 1 shall be subject to contract provisions requiring 29 new and retained jobs to be filled by individuals who are 30 citizens of the United States who reside within the United 31 States or any person authorized to work in the United States 32 pursuant to federal law, including legal resident aliens in the 33 United States. 34 b. Any vendor who receives moneys appropriated in 35 -4- LSB 1048JB (2) 87 aw/tm 4/ 42

S.F. _____ H.F. _____ subsection 1 shall adhere to such contract provisions and 1 provide periodic assurances as the state shall require that the 2 jobs are filled solely by citizens of the United States who 3 reside within the United States or any person authorized to 4 work in the United States pursuant to federal law, including 5 legal resident aliens in the United States. 6 c. A business that receives financial assistance from 7 the authority from moneys appropriated in subsection 1 shall 8 only employ individuals legally authorized to work in this 9 state. In addition to all other applicable penalties provided 10 by current law, all or a portion of the assistance received 11 by a business which is found to knowingly employ individuals 12 not legally authorized to work in this state is subject to 13 recapture by the authority. 14 3. USES OF APPROPRIATIONS 15 a. From the moneys appropriated in subsection 1, the 16 authority may provide financial assistance in the form of a 17 grant to a community economic development entity for conducting 18 a local workforce recruitment effort designed to recruit former 19 citizens of the state and former students at colleges and 20 universities in the state to meet the needs of local employers. 21 b. From the moneys appropriated in subsection 1, the 22 authority may provide financial assistance to early stage 23 industry companies being established by women entrepreneurs. 24 c. From the moneys appropriated in subsection 1, the 25 authority may provide financial assistance in the form of 26 grants, loans, or forgivable loans for advanced research and 27 commercialization projects involving value-added agriculture, 28 advanced technology, or biotechnology. 29 d. The authority shall not use any moneys appropriated in 30 subsection 1 for purposes of providing financial assistance for 31 the Iowa green streets pilot project or for any other program 32 or project that involves the installation of geothermal systems 33 for melting snow and ice from streets or sidewalks. 34 4. WORLD FOOD PRIZE 35 -5- LSB 1048JB (2) 87 aw/tm 5/ 42

S.F. _____ H.F. _____ There is appropriated from the general fund of the state 1 to the economic development authority for the fiscal year 2 beginning July 1, 2017, and ending June 30, 2018, the following 3 amount for the world food prize and in lieu of the standing 4 appropriation in section 15.368 : 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 400,000 6 5. IOWA COMMISSION ON VOLUNTEER SERVICE 7 There is appropriated from the general fund of the state 8 to the economic development authority for the fiscal year 9 beginning July 1, 2017, and ending June 30, 2018, the following 10 amount for allocation to the Iowa commission on volunteer 11 service for purposes of the Iowa state commission grant 12 program, the Iowa’s promise and Iowa mentoring partnership 13 programs, and for not more than the following full-time 14 equivalent positions: 15 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 168,201 16 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . FTEs 7.00 17 Of the moneys appropriated in this subsection, the 18 authority shall allocate $75,000 for purposes of the Iowa state 19 commission grant program and $93,201 for purposes of the Iowa’s 20 promise and Iowa mentoring partnership programs. 21 Notwithstanding section 8.33 , moneys appropriated in this 22 subsection that remain unencumbered or unobligated at the close 23 of the fiscal year shall not revert but shall remain available 24 for expenditure for the purposes designated until the close of 25 the succeeding fiscal year. 26 6. COUNCILS OF GOVERNMENTS —— ASSISTANCE 27 There is appropriated from the general fund of the state 28 to the economic development authority for the fiscal year 29 beginning July 1, 2017, and ending June 30, 2018, the following 30 amount to be used for the purposes of providing financial 31 assistance to Iowa’s councils of governments: 32 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 175,000 33 7. SCIENCE, TECHNOLOGY, ENGINEERING, AND MATHEMATICS 34 INTERNSHIPS 35 -6- LSB 1048JB (2) 87 aw/tm 6/ 42

S.F. _____ H.F. _____ a. There is appropriated from the Iowa skilled worker and 1 job creation fund created in section 8.75 to the Iowa economic 2 development authority for the fiscal year beginning July 1, 3 2017, and ending June 30, 2018, the following amount, or so 4 much thereof as is necessary, for the purposes designated: 5 For the funding of internships for students studying in the 6 fields of science, technology, engineering, and mathematics 7 with eligible Iowa employers as provided in section 15.411, 8 subsection 3, paragraph “c”: 9 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,000,000 10 b. No more than 3 percent of the moneys appropriated in this 11 subsection may be used by the authority for costs associated 12 with administration of the internship program. 13 c. Notwithstanding section 8.33, moneys appropriated in 14 this subsection which remain unencumbered or unobligated at 15 the end of the fiscal year shall not revert but shall remain 16 available for expenditure for the purposes designated in 17 subsequent fiscal years. 18 Sec. 4. LIMITATIONS OF STANDING APPROPRIATIONS —— FY 19 2017-2018. Notwithstanding the standing appropriations 20 in the following designated sections for the fiscal year 21 beginning July 1, 2017, and ending June 30, 2018, the amounts 22 appropriated from the general fund of the state pursuant to 23 these sections for the following purposes shall not exceed the 24 following amounts: 25 1. For operational support grants and community cultural 26 grants under section 99F.11, subsection 3, paragraph “d”, 27 subparagraph (1): 28 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 416,702 29 2. For the purposes of regional tourism marketing under 30 section 99F.11, subsection 3, paragraph “d”, subparagraph (2): 31 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 900,000 32 Sec. 5. INSURANCE ECONOMIC DEVELOPMENT. From the moneys 33 collected by the division of insurance in excess of the 34 anticipated gross revenues under section 505.7, subsection 35 -7- LSB 1048JB (2) 87 aw/tm 7/ 42

S.F. _____ H.F. _____ 3 , during the fiscal year beginning July 1, 2017, $100,000 1 shall be transferred to the economic development authority for 2 insurance economic development and international insurance 3 economic development. 4 Sec. 6. IOWA FINANCE AUTHORITY. 5 1. There is appropriated from the general fund of the state 6 to the Iowa finance authority for the fiscal year beginning 7 July 1, 2017, and ending June 30, 2018, the following amount, 8 or so much thereof as is necessary, to be used to provide 9 reimbursement for rent expenses to eligible persons under the 10 rent subsidy program: 11 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 658,000 12 2. Participation in the rent subsidy program shall be 13 limited to only those persons who meet the requirements for the 14 nursing facility level of care for home and community-based 15 services waiver services as in effect on July 1, 2017, 16 and to those individuals who are eligible for the federal 17 money follows the person grant program under the medical 18 assistance program. If the Iowa finance authority utilizes 19 a waiting list, the authority shall give priority to a 20 person participating in the state’s money follows the person 21 partnership for community integration project who has been 22 assigned to work with a transition specialist. Of the moneys 23 appropriated in this section, not more than $35,000 may be used 24 for administrative costs. 25 Sec. 7. IOWA FINANCE AUTHORITY AUDIT. The auditor of state 26 is requested to review the audit of the Iowa finance authority 27 performed by the auditor hired by the authority. 28 Sec. 8. PUBLIC EMPLOYMENT RELATIONS BOARD. 29 1. There is appropriated from the general fund of the state 30 to the public employment relations board for the fiscal year 31 beginning July 1, 2017, and ending June 30, 2018, the following 32 amount, or so much thereof as is necessary, for the purposes 33 designated: 34 For salaries, support, maintenance, and miscellaneous 35 -8- LSB 1048JB (2) 87 aw/tm 8/ 42

S.F. _____ H.F. _____ purposes, and for not more than the following full-time 1 equivalent positions: 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,342,452 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . FTEs 10.00 4 2. Of the moneys appropriated in this section, the board 5 shall allocate $15,000 for maintaining an internet site that 6 allows searchable access to a database of collective bargaining 7 information. 8 Sec. 9. DEPARTMENT OF WORKFORCE DEVELOPMENT. There 9 is appropriated from the general fund of the state to the 10 department of workforce development for the fiscal year 11 beginning July 1, 2017, and ending June 30, 2018, the following 12 amounts, or so much thereof as is necessary, for the purposes 13 designated: 14 1. DIVISION OF LABOR SERVICES 15 a. For the division of labor services, including salaries, 16 support, maintenance, and miscellaneous purposes, and for not 17 more than the following full-time equivalent positions: 18 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 3,491,252 19 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . FTEs 61.12 20 b. From the contractor registration fees, the division of 21 labor services shall reimburse the department of inspections 22 and appeals for all costs associated with hearings under 23 chapter 91C , relating to contractor registration. 24 2. DIVISION OF WORKERS’ COMPENSATION 25 a. For the division of workers’ compensation, including 26 salaries, support, maintenance, and miscellaneous purposes, and 27 for not more than the following full-time equivalent positions: 28 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 3,259,044 29 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . FTEs 27.20 30 b. The division of workers’ compensation shall charge a 31 $100 filing fee for workers’ compensation cases. The filing 32 fee shall be paid by the petitioner of a claim. However, the 33 fee can be taxed as a cost and paid by the losing party, except 34 in cases where it would impose an undue hardship or be unjust 35 -9- LSB 1048JB (2) 87 aw/tm 9/ 42

S.F. _____ H.F. _____ under the circumstances. The moneys generated by the filing 1 fee allowed under this subsection are appropriated to the 2 department of workforce development to be used for purposes of 3 administering the division of workers’ compensation. 4 3. WORKFORCE DEVELOPMENT OPERATIONS 5 a. For the operation of field offices, the workforce 6 development board, and for not more than the following 7 full-time equivalent positions: 8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 7,945,650 9 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . FTEs 187.75 10 b. Of the moneys appropriated in paragraph “a” of this 11 subsection, the department shall allocate $150,000 to the state 12 library for the purpose of licensing an online resource which 13 prepares persons to succeed in the workplace through programs 14 which improve job skills and vocational test-taking abilities. 15 4. OFFENDER REENTRY PROGRAM 16 a. For the development and administration of an offender 17 reentry program to provide offenders with employment skills, 18 and for not more than the following full-time equivalent 19 positions: 20 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 287,158 21 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . FTEs 4.00 22 b. The department of workforce development shall partner 23 with the department of corrections to provide staff within the 24 correctional facilities to improve offenders’ abilities to find 25 and retain productive employment. 26 5. INTEGRATED INFORMATION FOR IOWA SYSTEM 27 For the payment of services provided by the department of 28 administrative services related to the integrated information 29 for Iowa system: 30 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 228,822 31 6. NONREVERSION 32 Notwithstanding section 8.33 , moneys appropriated in this 33 section that remain unencumbered or unobligated at the close of 34 the fiscal year shall not revert but shall remain available for 35 -10- LSB 1048JB (2) 87 aw/tm 10/ 42

S.F. _____ H.F. _____ expenditure for the purposes designated until the close of the 1 succeeding fiscal year. 2 Sec. 10. GENERAL FUND —— EMPLOYEE MISCLASSIFICATION 3 PROGRAM. There is appropriated from the general fund of the 4 state to the department of workforce development for the fiscal 5 year beginning July 1, 2017, and ending June 30, 2018, the 6 following amount, or so much thereof as is necessary, to be 7 used for the purposes designated: 8 For enhancing efforts to investigate employers that 9 misclassify workers and for not more than the following 10 full-time equivalent positions: 11 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 429,631 12 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . FTEs 5.00 13 Sec. 11. SPECIAL EMPLOYMENT SECURITY CONTINGENCY FUND. 14 1. There is appropriated from the special employment 15 security contingency fund to the department of workforce 16 development for the fiscal year beginning July 1, 2017, and 17 ending June 30, 2018, the following amount, or so much thereof 18 as is necessary, to be used for field offices: 19 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,766,084 20 2. Any remaining additional penalty and interest revenue 21 collected by the department of workforce development is 22 appropriated to the department for the fiscal year beginning 23 July 1, 2017, and ending June 30, 2018, to accomplish the 24 mission of the department. 25 Sec. 12. UNEMPLOYMENT COMPENSATION RESERVE FUND —— 26 FIELD OFFICES. Notwithstanding section 96.9, subsection 8 , 27 paragraph “e”, there is appropriated from interest earned on 28 the unemployment compensation reserve fund to the department 29 of workforce development for the fiscal year beginning July 1, 30 2017, and ending June 30, 2018, the following amount, or so 31 much thereof as is necessary, for the purposes designated: 32 For the operation of field offices: 33 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,060,000 34 Sec. 13. VIRTUAL ACCESS WORKFORCE DEVELOPMENT OFFICES. The 35 -11- LSB 1048JB (2) 87 aw/tm 11/ 42

S.F. _____ H.F. _____ department of workforce development shall require a unique 1 identification login for all users of workforce development 2 centers operated through electronic means. 3 Sec. 14. UNEMPLOYMENT COMPENSATION PROGRAM. Notwithstanding 4 section 96.9, subsection 4 , paragraph “a”, moneys credited to 5 the state by the secretary of the treasury of the United 6 States pursuant to section 903 of the Social Security 7 Act are appropriated to the department of workforce 8 development and shall be used by the department for the 9 administration of the unemployment compensation program only. 10 This appropriation shall not apply to any fiscal year 11 beginning after December 31, 2017. 12 Sec. 15. UNEMPLOYMENT INSURANCE SYSTEMS MODERNIZATION 13 —— USE OF FUNDS AUTHORIZATION. Incentive payment moneys 14 transferred by the secretary of labor of the United States to 15 the state as a special transfer pursuant to section 2003 of 16 the Assistance for Unemployed Workers and Struggling Families 17 Act, enacted pursuant to Pub. L. No. 111-5, and credited to 18 the unemployment compensation fund established pursuant to 19 section 96.9, are appropriated to the department of workforce 20 development for the fiscal year beginning July 1, 2017, for the 21 purpose of unemployment insurance systems modernization and 22 for the acquisition of programming, software, and equipment 23 required to provide an administrative system for the Iowa 24 unemployment insurance program, in an amount not to exceed the 25 following amount: 26 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 9,600,000 27 Sec. 16. UNEMPLOYMENT COMPENSATION AND EMPLOYMENT SERVICES 28 PROGRAMS —— USE OF FUNDS AUTHORIZATION. Incentive payment 29 moneys transferred by the secretary of labor of the United 30 States to the state as a special transfer pursuant to section 31 2003 of the Assistance for Unemployed Workers and Struggling 32 Families Act, enacted pursuant to Pub. L. No. 111-5, and 33 credited to the unemployment compensation fund established 34 pursuant to section 96.9, are appropriated to the department 35 -12- LSB 1048JB (2) 87 aw/tm 12/ 42

S.F. _____ H.F. _____ of workforce development for the fiscal year beginning July 1, 1 2017, for the administration of the Iowa employment security 2 law and public employment offices, in an amount not to exceed 3 the following amount: 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 597,000 5 Sec. 17. IOWA SKILLED WORKER AND JOB CREATION FUND. 6 1. There is appropriated from the Iowa skilled worker and 7 job creation fund created in section 8.75 to the following 8 departments, agencies, and institutions for the fiscal year 9 beginning July 1, 2017, and ending June 30, 2018, the following 10 amounts, or so much thereof as is necessary, to be used for the 11 purposes designated: 12 a. ECONOMIC DEVELOPMENT AUTHORITY 13 (1) For the purposes of providing assistance under the high 14 quality jobs program as described in section 15.335B: 15 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 15,900,000 16 (2) From the moneys appropriated in this lettered paragraph 17 “a”, the economic development authority may use not more than 18 $1,000,000 for purposes of providing infrastructure grants to 19 mainstreet communities under the main street Iowa program. 20 (3) As a condition of receiving moneys appropriated in 21 this lettered paragraph “a”, an entity shall testify upon the 22 request of the joint appropriations subcommittee on economic 23 development regarding the expenditure of such moneys. 24 b. STATE BOARD OF REGENTS AND REGENTS INSTITUTIONS 25 (1) STATE BOARD OF REGENTS. For capacity building 26 infrastructure in areas related to technology 27 commercialization, marketing and business development 28 efforts in areas related to technology commercialization, 29 entrepreneurship, and business growth, and infrastructure 30 projects and programs needed to assist in implementation of 31 activities under chapter 262B: 32 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 3,000,000 33 Of the moneys appropriated pursuant to this subparagraph 34 (1), 35 percent shall be allocated for Iowa state university of 35 -13- LSB 1048JB (2) 87 aw/tm 13/ 42

S.F. _____ H.F. _____ science and technology, 35 percent shall be allocated for the 1 state university of Iowa, and 30 percent shall be allocated for 2 the university of northern Iowa. 3 (a) The institutions shall provide a one-to-one match 4 of additional moneys for the activities funded with moneys 5 appropriated under this subparagraph (1). 6 (b) The state board of regents shall annually submit a 7 report by January 15 to the governor, the general assembly, 8 and the legislative services agency regarding the activities, 9 projects, and programs funded with moneys appropriated under 10 this subparagraph (1). The report shall be provided in an 11 electronic format and shall include a list of metrics and 12 criteria mutually agreed to in advance by the board of regents 13 and the economic development authority. The metrics and 14 criteria shall allow the governor’s office and the general 15 assembly to quantify and evaluate the progress of the board of 16 regents institutions with regard to their activities, projects, 17 and programs in the areas of technology commercialization, 18 entrepreneurship, regional development, and market research. 19 (2) IOWA STATE UNIVERSITY OF SCIENCE AND TECHNOLOGY. For 20 small business development centers, the science and technology 21 research park, and the center for industrial research and 22 service, and for not more than the following full-time 23 equivalent positions: 24 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2,424,302 25 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . FTEs 56.63 26 (a) Of the moneys appropriated in this subparagraph (2), 27 Iowa state university of science and technology shall allocate 28 at least $735,728 for purposes of funding small business 29 development centers. Iowa state university of science and 30 technology may allocate the appropriated moneys to the various 31 small business development centers in any manner necessary to 32 achieve the purposes of this subparagraph. 33 (b) Iowa state university of science and technology shall 34 do all of the following: 35 -14- LSB 1048JB (2) 87 aw/tm 14/ 42

S.F. _____ H.F. _____ (i) Direct expenditures for research toward projects that 1 will provide economic stimulus for Iowa. 2 (ii) Provide emphasis to providing services to Iowa-based 3 companies. 4 (c) It is the intent of the general assembly that the 5 industrial incentive program focus on Iowa industrial sectors 6 and seek contributions and in-kind donations from businesses, 7 industrial foundations, and trade associations, and that moneys 8 for the center for industrial research and service industrial 9 incentive program shall be allocated only for projects which 10 are matched by private sector moneys for directed contract 11 research or for nondirected research. The match required of 12 small businesses as defined in section 15.102, subsection 8, 13 for directed contract research or for nondirected research 14 shall be $1 for each $3 of state funds. The match required 15 for other businesses for directed contract research or 16 for nondirected research shall be $1 for each $1 of state 17 funds. The match required of industrial foundations or trade 18 associations shall be $1 for each $1 of state funds. 19 Iowa state university of science and technology shall 20 report annually to the joint appropriations subcommittee on 21 economic development and the legislative services agency the 22 total amount of private contributions, the proportion of 23 contributions from small businesses and other businesses, and 24 the proportion for directed contract research and nondirected 25 research of benefit to Iowa businesses and industrial sectors. 26 (3) STATE UNIVERSITY OF IOWA. For the state university 27 of Iowa research park and for the advanced drug development 28 program at the Oakdale research park, including salaries, 29 support, maintenance, equipment, and miscellaneous purposes, 30 and for not more than the following full-time equivalent 31 positions: 32 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 209,279 33 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . FTEs 6.00 34 The state university of Iowa shall do all of the following: 35 -15- LSB 1048JB (2) 87 aw/tm 15/ 42

S.F. _____ H.F. _____ (a) Direct expenditures for research toward projects that 1 will provide economic stimulus for Iowa. 2 (b) Provide emphasis to providing services to Iowa-based 3 companies. 4 (4) STATE UNIVERSITY OF IOWA. For the purpose of 5 implementing the entrepreneurship and economic growth 6 initiative, and for not more than the following full-time 7 equivalent positions: 8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2,000,000 9 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . FTEs 8.00 10 (5) UNIVERSITY OF NORTHERN IOWA. For the metal casting 11 institute, the MyEntreNet internet application, and the 12 institute of decision making, including salaries, support, 13 maintenance, and miscellaneous purposes, and for not more than 14 the following full-time equivalent positions: 15 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,066,419 16 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . FTEs 8.12 17 (a) Of the moneys appropriated pursuant to this 18 subparagraph (5), the university of northern Iowa shall 19 allocate at least $617,639 for purposes of support of 20 entrepreneurs through the university’s center for business 21 growth and innovation and advance Iowa program. 22 (b) The university of northern Iowa shall do all of the 23 following: 24 (i) Direct expenditures for research toward projects that 25 will provide economic stimulus for Iowa. 26 (ii) Provide emphasis to providing services to Iowa-based 27 companies. 28 (6) As a condition of receiving moneys appropriated in 29 this lettered paragraph “b”, an entity shall testify upon the 30 request of the joint appropriations subcommittee on economic 31 development regarding the expenditure of such moneys. 32 c. DEPARTMENT OF WORKFORCE DEVELOPMENT 33 To develop a long-term sustained program to train unemployed 34 and underemployed central Iowans with skills necessary to 35 -16- LSB 1048JB (2) 87 aw/tm 16/ 42