HF 2569 (LSB 5503HV (2) 88)

HOUSE FILE 2569

BY  COMMITTEE ON STATE GOVERNMENT

(SUCCESSOR TO HF 2136)

A BILL FOR

An Act relating to the establishment of a grant fund and a grant program administered by the economic development authority to assist eligible out-of-state candidates residing in Puerto Rico with relocation expenses to move to the state to fill specific jobs, and making an appropriation. 
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  NEW SECTION.  15.371  Grow Iowa’s talent pool grant program and fund.
   1.  As used in this section, unless the context otherwise requires:
   a.  “Eligible business” means a business meeting the requirements of subsection 5.
   b.  “Fund” means the grow Iowa’s talent pool grant fund.
   c.  “Located in” means the place at which a business’s operations are located and where at least ninety-five percent of the business’s employees work, or where employees that are paid at least ninety-five percent of the business’s payroll work.
   d.  “Program” means the grow Iowa’s talent pool grant program.
   e.  “Rural community” means any city or township located in the state that has a population of fifty thousand or less, except those located wholly within one or more of the eleven most populous counties in the state, as determined by the most recent population estimates issued by the United States bureau of census.
   2.  a.  A grow Iowa’s talent pool grant fund is created in the state treasury under the control of the authority and consisting of any moneys appropriated to the fund by the general assembly and any other moneys available and obtained or accepted by the authority for placement in the fund. The fund shall be used to provide grants as provided under the program. The authority shall use any moneys specifically appropriated for purposes of this section only for the purposes of this section.
   b.  There is appropriated from the general fund of the state to the authority for deposit in the fund for the fiscal year beginning July 1, 2020, the sum of two hundred fifty thousand dollars. Of the moneys appropriated under this paragraph, sixty percent shall be reserved for grant awards to eligible businesses located in rural communities.
   c.  The director of the authority may transfer any unobligated and unencumbered moneys in any fund created pursuant to section 15.106A, subsection 1, paragraph “o”, for deposit in the fund.
   d.  Notwithstanding section 12C.7, subsection 2, interest or earnings on moneys in the fund shall accrue to the authority and shall be used for purposes of this section. Notwithstanding section 8.33, moneys in the fund at the end of each fiscal year shall not revert to any other fund but shall remain in the fund for expenditure for subsequent fiscal years. All repayments or recaptures of grants provided under this section shall accrue to the authority and shall be used for purposes of this section.
   e.  The authority may use not more than five percent of the moneys in the fund at the beginning of the fiscal year for purposes of administrative costs, marketing, and other program support.
   3.  The authority shall establish and administer a grow Iowa’s talent pool grant program for purposes of awarding grants to eligible businesses.
   4.  The authority shall begin to award grants from the fund not later than January 1, 2021.
   5.  A business is eligible to apply for a grant under the program if the business meets all of the following criteria at the time of the business’s application:
   a.  The business is located in Iowa. 
   b.  If the business has been a going concern for two years or more, the business has not been found to be in violation of any environmental or worker safety laws or rules.
   c.  The business only employs individuals legally authorized to work in the state.
   d.  The business is not in bankruptcy and is not imminently contemplating filing for bankruptcy.
   e.  The business has a candidate pending hire for a job with the business that pays the laborshed wage and the candidate currently resides in Puerto Rico. For purposes of this paragraph, “laborshed wage” means the wage level represented by a wage within two standard deviations from the mean wage within the laborshed area in which the business is located, as calculated by the authority, by rule, using the most current covered wage and employment data available from the department of workforce development for the laborshed area.
   f.  The business offers health insurance for its employees and the employees’ dependents.
   g.  The business has at least one letter of support from community leaders of the community in which the candidate will be working that supports the relocation of the candidate to the community.
   h.  The business can demonstrate the ability to match the grant awarded by the authority in an amount equal to one dollar for every dollar of the grant awarded by the authority. 
   6.  Upon approval by the authority of a business’s application, the business shall enter into an agreement with the authority which shall include but not be limited to all of the following provisions:
   a.  The business shall use the grant, and the matching dollar-for-dollar contribution from the business, specifically for relocation-related expenses for the candidate for whom the business was awarded the grant. The relocation-related expenses must be substantiated by the candidate. Relocation-related expenses may include any of the following: 
   (1)  The cost of the candidate’s transportation to the state.
   (2)  The costs to pack and move the candidate’s personal possessions.
   (3)  Housing and utility deposits for the candidate’s housing in the state.
   (4)  Up to three months rent for the candidate’s housing in the state. 
   (5)  Temporary storage fees for the candidate’s personal possessions. 
   (6)  A transportation allowance.
   b.  If the business, after being awarded a grant, does not continue to meet all of the eligibility criteria under subsection 5, all or a portion of the grant received is subject to disallowance, recapture, or immediate repayment.
   c.  If, after being awarded a grant, the business ceases operations or removes a significant portion of its operations to a location outside of the state, all or a portion of the grant received is subject to disallowance, recapture, or immediate repayment.
   7.  A grant awarded to an eligible business pursuant to the program shall not exceed five thousand dollars per relocating candidate.
   8.  An eligible business may receive more than one grant under this section. An eligible business must submit a new application for each grant. 
   9.  The authority shall, by January 15 of each year, submit a report on the program to the general assembly. The report shall include all of the following information for each business that is awarded a grant under the program in the immediately preceding calendar year:
   a.  The number of candidates relocated by the business.
   b.  The job, and the pay rate, for which each candidate relocated.
   c.  The total amount of the grant the authority awarded to the business.
   d.  The city and county in which the business is located.
   e.  Whether the business is a start-up or a going concern.
   f.  The current number of open jobs at the business.
   10.  The authority shall adopt rules pursuant to chapter 17A as necessary to administer the program. 
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   This bill relates to the establishment of a grant fund and a grant program administered by the economic development authority to assist eligible out-of-state candidates residing in Puerto Rico with relocation expenses to move to the state to fill specific jobs. 
   The bill creates a grow Iowa’s talent pool grant fund (fund) in the state treasury under the control of the economic development authority (authority) that consists of any moneys appropriated to the fund by the general assembly and any other moneys available to the authority for placement in the fund. The fund must be used to provide grants as provided under the grow Iowa’s talent pool grant program (program) and the authority must use any moneys specifically appropriated for purposes of the program only for purposes of the program.
   The bill appropriates $250,000 from the general fund of the state to the authority for deposit in the fund for the fiscal year beginning July 1, 2020. Of the appropriated moneys, 60 percent must be reserved for grants to eligible businesses located in rural communities. “Rural community” is defined in the bill as any city or township located in the state that has a population of 50,000 or less, except those located wholly within 1 or more of the 11 most populous counties in the state, as determined by the most recent population estimates issued by the United States bureau of census.
   Interest or earnings on moneys in the fund accrue to the authority and must be used for purposes of the program. Moneys in the fund at the end of each fiscal year do not revert to any other fund but remain in the fund for expenditure for subsequent fiscal years. All repayments or recaptures of grants provided under the program accrue to the authority to be used for purposes of the program. The director of the authority may transfer any unobligated and unencumbered moneys in any fund created pursuant to Code section 15.106A(1)(o) for deposit in the fund. The authority may use not more than 5 percent of the moneys in the fund at the beginning of the fiscal year for purposes of administrative costs, marketing, and other program support. The authority must begin to award grants from the fund not later than January 1, 2021.
   The bill requires the authority to establish and administer the program for purposes of awarding grants to eligible businesses. A business is eligible to apply for a grant under the program if, at the time the business applies, the business is located in Iowa, as defined in the bill; if the business has been a going concern for two years or more, the business has not been found to be in violation of any environmental or worker safety laws or rules; the business only employs individuals legally authorized to work in the state; the business is not in bankruptcy and is not imminently contemplating filing for bankruptcy; the business has a candidate pending hire for a job at the business that pays the laborshed wage and the candidate currently resides in Puerto Rico; the business offers health insurance for its employees and the employees’ dependents; the business has at least one letter of support from community leaders of the community in which the candidate will be working that supports the candidate’s relocation; and the business can demonstrate the ability to match a grant awarded by the authority in an amount equal to $1 for every dollar awarded by the authority. “Laborshed wage” is defined in the bill as the wage level represented by a wage within two standard deviations from the mean wage within the laborshed area in which the business is located, as calculated by the authority, by rule, using the most current covered wage and employment data available from the department of workforce development for the laborshed area.
   A grant awarded to an eligible business cannot exceed $5,000 per relocating candidate. Upon approval of a business’s application, the business must enter into an agreement with the authority that must include a provision requiring the business to use the grant assistance, and the matching dollar-for-dollar contribution from the business, specifically for relocation-related expenses, as detailed in the bill, for the candidate for whom the business was awarded the grant. The candidate must substantiate the relocation-related expenses.
   The agreement must also have provisions allowing for all or a portion of the grant received to be subject to disallowance, recapture, or immediate repayment, in certain circumstances as outlined in the bill.
   An eligible business may receive more than one grant under the program and must submit a new application for each award.
   The bill requires the authority to submit an annual report on the program to the general assembly. The report must include information as outlined in the bill for each business that is awarded a grant under the program in the immediately preceding calendar year.
   The authority is required to adopt rules pursuant to Code chapter 17A as necessary to administer the program.