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PAG LIN 1 1 Section 1. Section 15.343, subsection 1, paragraph c, 1 2 unnumbered paragraph 1, Code Supplement 1995, is amended to 1 3 read as follows: 1 4 Repayment moneys pursuant to section 422.16A, up to a 1 5 maximum oftwoten million dollars each year. 1 6 Sec. 2. Section 15.343, subsection 1, Code Supplement 1 7 1995, is amended by adding the following new paragraph: 1 8 NEW PARAGRAPH. d. The innovative skill development 1 9 account created in section 15.349. 1 10 Sec. 3. NEW SECTION. 15.349 INNOVATIVE SKILL DEVELOPMENT 1 11 ACCOUNT. 1 12 An innovative skill development account is created within 1 13 the workforce development fund to be used by the department to 1 14 support innovative skill development training for Iowa 1 15 businesses. Training to be funded shall include but is not 1 16 limited to business network training programs, innovative 1 17 apprenticeship programs for emerging industries, and critical 1 18 skill training for industries experiencing labor shortages. 1 19 The department shall adopt rules governing the operation of 1 20 and eligibility for participation beginning July 1, 1996, in 1 21 the account. 1 22 Sec. 4. NEW SECTION. 15A.7 SUPPLEMENTAL NEW JOBS CREDIT 1 23 FROM WITHHOLDING. 1 24 In order to promote the creation of additional high-quality 1 25 new jobs within the state, an agreement under section 260E.3 1 26 may include a provision for a supplemental new jobs credit 1 27 from withholding from jobs created under the agreement. An 1 28 agreement which includes a supplemental credit from 1 29 withholding shall provide for the following: 1 30 1. That the project shall be administered in the same 1 31 manner as a project under chapter 260E and that a supplemental 1 32 new jobs credit from withholding in an amount equal to one and 1 33 one-half percent of the gross wages paid by the employer 1 34 pursuant to section 422.16 is authorized to fund the program 1 35 services for the additional project. 2 1 2. That the supplemental new jobs credit from withholding 2 2 shall be collected, accounted for, and may be pledged by the 2 3 community college in the same manner as described in section 2 4 260E.5. 2 5 3. That the employer shall pay wages for the jobs for 2 6 which the credit is taken of at least the average county wage 2 7 to remain eligible for the project. 2 8 4. To provide funds for the payment of the costs of the 2 9 additional project, a community college may borrow money, 2 10 issue and sell certificates, and secure the payment of the 2 11 certificates in the same manner as described in section 2 12 260E.6, including, but not limited to, providing the 2 13 assessment of an annual levy as described in section 260E.6, 2 14 subsection 4. The program and credit authorized by this 2 15 subsection is in addition to, and not in lieu of, the program 2 16 and credit authorized in chapter 260E. 2 17 Sec. 5. Section 15E.112, subsection 1, Code 1995, is 2 18 amended to read as follows: 2 19 1. A value-added agricultural products and processes 2 20 financial assistance fund is created within the state treasury 2 21 under the control of the department. The fund shall consist 2 22 of any money appropriated by the general assembly and any 2 23 other moneys available to and obtained or accepted by the 2 24 department from the federal government or private sources for 2 25 placement in the fund. Until July 1, 2000, moneys shall be 2 26 deposited in the fund as provided in section 423.24. Not more 2 27 thanonefour percent of the total moneys available to support 2 28 value-added agricultural products and processes pursuant to 2 29 section 423.24 during each quarter shall be used by the 2 30 department for administration of the value-added agricultural 2 31 products and processes financial assistance program, as 2 32 provided in section 15E.111. The assets of the fund shall be 2 33 used by the department only for carrying out the purposes of 2 34 section 15E.111. 2 35 Sec. 6. NEW SECTION. 15E.113 MICROBUSINESS RURAL 3 1 ENTERPRISE ASSISTANCE. 3 2 1. As used in this section: 3 3 a. "Department" means the department of economic 3 4 development. 3 5 b. "Microbusiness" or "microbusiness enterprise" means a 3 6 business producing services with five or fewer full-time 3 7 equivalent employee positions and with assistance requirements 3 8 of not more than twenty-five thousand dollars. 3 9 c. "Microbusiness organization" means a nonprofit 3 10 corporation organized under chapter 504A which is exempt from 3 11 taxation pursuant to section 501(c) of the Internal Revenue 3 12 Code and which has a principal mission of actively engaging in 3 13 microbusiness development, training, technical assistance, and 3 14 capital access for the start-up or expansion of 3 15 microbusinesses. 3 16 2. The department shall allocate one hundred twenty-five 3 17 thousand dollars each year from the value-added agricultural 3 18 products and processes financial assistance fund to be used 3 19 for the purpose of conducting a microbusiness rural enterprise 3 20 assistance program. 3 21 3. The department may contract with a microenterprise 3 22 organization actively engaged in microbusiness enterprise to 3 23 assist in the establishment of this program. In order to 3 24 qualify for the contract, the microenterprise organization 3 25 shall do all of the following: 3 26 a. Demonstrate a past performance of and a capacity to 3 27 successfully engage in microbusiness development. 3 28 b. Have a statewide commitment to and focus on 3 29 microbusiness development. 3 30 c. Provide training and technical assistance. 3 31 d. Demonstrate an ability to provide access to capital for 3 32 start-up or expansion of a microbusiness. 3 33 e. Have established linkages with financial institutions. 3 34 f. Demonstrate an ability to provide follow-up technical 3 35 assistance after a microbusiness start-up or expansion. 4 1 4. Moneys allocated pursuant to this section which remain 4 2 unexpended or unobligated at the end of a fiscal year shall 4 3 remain available to the department to support the assistance 4 4 program or may be credited to the value-added agricultural 4 5 products and processes financial assistance fund created in 4 6 section 15E.112 and shall not revert notwithstanding section 4 7 8.33. 4 8 5. The department shall submit a report in accordance with 4 9 section 7A.11 not later than November 1 of each year detailing 4 10 the activities of the microenterprise organization and 4 11 describing the success of the project. 4 12 Sec. 7. Section 260F.1, Code 1995, is amended to read as 4 13 follows: 4 14 260F.1 TITLE. 4 15 This chapter shall be known and may be cited as the "Iowa 4 16small business newjobs training Act". 4 17 Sec. 8. Section 260F.2, Code 1995, is amended to read as 4 18 follows: 4 19 260F.2 DEFINITIONS. 4 20 When used in this chapter, unless the context otherwise 4 21 requires: 4 22 1. "Agreement" is the agreement between a business and a 4 23 community college concerning a project. 4 242. "Board of directors" means the board of directors of a4 25community college.4 263.2. "Community college" means a community college 4 27 established under chapter 260C. 4 284.3. "Date of commencement of the project" means the date 4 29 of the preliminary agreement or the date an application for 4 30 assistance is received by the department. 4 31 4. "Department" means the department of economic 4 32 development. 4 33 5. "Eligible business" or "business" means a business 4 34 training employees which is engaged in interstate or 4 35 intrastate commerce for the purpose of manufacturing, 5 1 processing, or assembling products, conducting research and 5 2 development, or providing services in interstate commerce, but 5 3 excludes retail, health, or professional services and which 5 4 meets the other criteria established by theIowadepartmentof5 5economic development."Eligible business" does not include a5 6business which closes or substantially reduces its operation5 7in one area of the state of Iowa and relocates substantially5 8the same operation in another area of the state of Iowa. This5 9subsection does not prohibit a business from expanding its5 10operations in another area of the state provided that existing5 11operations of a similar nature are not closed or substantially5 12reduced. "Small"Eligible business" does not include a 5 13 business whose training costs can be economically funded under 5 14 chapter 260E, a business which closes or substantially reduces 5 15 its employment base in order to relocate substantially the 5 16 same operation to another area of the state, or a business 5 17 which is involved in a strike, lockout, or other labor 5 18 dispute. 5 19"Eligible business" includes the following:5 20a. Retraining business which is currently conducting5 21retooling of a production facility.5 22b. Small business which meets other criteria established5 23by the department of economic development relating to business5 24size.5 25 6. "Employee" meansthe person employed in a new job by a5 26small business ora person currently employed by a business 5 27 who is to beretrainedtrained. However, "employee" does not 5 28 include replacement workers who are hired as a result of a 5 29 strike, lockout, or other labor dispute. 5 307. "Incremental property taxes" means the taxes as5 31provided in section 260F.4.5 328.7. "Jobs training program" or "program" means the 5 33 project or projects established by a community college for the 5 34creation of jobs by providing education and training of5 35workers for new jobs for a new or expanding small business or6 1for the retraining of workers of an existing businesstraining 6 2 of employees. 6 39. "New job" means a job in a new or expanding small6 4business but does not include jobs of recalled workers, or6 5replacement jobs or other jobs that formerly existed in the6 6small business in the state of Iowa.6 710. "New jobs credit from withholding" means the credit as6 8provided in section 260F.5.6 911.8. "Participating business" meansthe small business6 10providing new jobs or retraining jobs anda business training 6 11 employees which enters into an agreement with the community 6 12 college. 6 1312.9. "Program costs" means all necessary and incidental 6 14 costs of providing program services. 6 1513.10. "Program services" includes but is not limited to 6 16 the following: 6 17a. New jobs training.6 18b.a.RetrainingTraining ofexisting workersemployees. 6 19c.b. Adult basic education and job-related instruction. 6 20d.c. Vocational and skill-assessment services and 6 21 testing. 6 22e.d. Training facilities, equipment, materials, and 6 23 supplies. 6 24f. On-the-job training.6 25g.e. Administrative expenses for the jobs training 6 26 program. 6 27h.f. Subcontracted services with institutions governed by 6 28 the state board of regents, private colleges or universities, 6 29 or other federal, state, or local agencies. 6 30i.g. Contracted or professional services. 6 3114.11. "Project" means a training arrangement which is 6 32 the subject of an agreement entered into between the community 6 33 college and a business to provide program services. 6 3415. "Retooling" means upgrading, modernizing, or expanding6 35a business to increase the production or efficiency of7 1business operations including, but not limited to, replacing7 2equipment, introducing new manufacturing processes, or7 3changing managerial procedures.7 416. "Retraining job" means a job with an existing business7 5that is substantially at risk of becoming displaced within the7 6following ten years due to the retooling of the business.7 7 Sec. 9. Section 260F.3, Code 1995, is amended by striking 7 8 the section and inserting in lieu thereof the following: 7 9 260F.3 AGREEMENT. 7 10 A community college may enter into an agreement to 7 11 establish a project. An agreement shall provide for, but is 7 12 not limited to, the following: 7 13 1. Date of agreement. 7 14 2. Anticipated number of employees to be trained. 7 15 3. Estimated cost of training. 7 16 4. Anticipated dates of commencement and termination of 7 17 training. 7 18 5. Other criteria established by the department. 7 19 Sec. 10. Section 260F.6, subsection 2, Code Supplement 7 20 1995, is amended to read as follows: 7 21 2. To provide funds for the present payment of the costs 7 22 of a training program by the business, the community college 7 23 may provide to the business an advance of the moneys to be 7 24 used to pay for the program costs as provided in the 7 25 agreement. To receive the funds for this advance from the job 7 26 training fund established in subsection 1, the community 7 27 college shall submit an application to the department of 7 28 economic development. The amount of the advance shall not 7 29 exceedfiftytwenty-five thousand dollars for anyproject7 30 business site, or fifty thousand dollars within a three- 7 31 fiscal-year period for any business site.The advance, if the7 32agreement provides it as a loan, shall be repaid with interest7 33from the sources provided in the agreement. The rate of7 34interest to be charged for advances made in a calendar month7 35is equal to one-half of the average rate of interest on tax8 1exempt certificates issued by community colleges pursuant to8 2chapter 260E for the previous twelve months. The rate shall8 3be computed by the department of economic development.If the 8 4 project involves a consortium of businesses, the maximum award 8 5 per project shall not exceed fifty thousand dollars. 8 6 Participation in a consortium does not affect a business 8 7 site's eligibility for individual project assistance. Prior 8 8 to approval a business shall agree to match program amounts in 8 9 accordance with criteria established by the department. 8 10 Sec. 11. NEW SECTION. 260F.6A BUSINESS NETWORK TRAINING. 8 11 The community colleges and the department are authorized to 8 12 fund business network training projects which include five or 8 13 more businesses and are located in two or more community 8 14 college districts. A business network training project must 8 15 have a designated organization or lead business to serve as 8 16 the administrative entity that will coordinate the training 8 17 program. The businesses must have common training needs and 8 18 develop a plan to meet those needs. The department shall 8 19 adopt rules governing this section's operation and participant 8 20 eligibility. 8 21 Sec. 12. Section 260F.7, Code 1995, is amended to read as 8 22 follows: 8 23 260F.7 DEPARTMENT OF ECONOMIC DEVELOPMENT TO COORDINATE. 8 24 The department of economic development, in consultation 8 25 with the department of education and the division of job 8 26 service of the department of employment services, shall 8 27 coordinate the jobs training program. A project shall not be 8 28 funded under this chapter unless the department of economic 8 29 development approves the project. The departmentof economic8 30developmentshall adopt rules pursuant to chapter 17Athat the8 31community college will use in developing projects with new and8 32expanding small business new jobs training proposals or8 33existing business retraining proposalsgoverning the program's 8 34 operation and eligibility for participation in the program. 8 35 The department shall establish by rule criteria for 9 1 determining what constitutes an eligible business.A project9 2shall not be funded under this chapter unless the department9 3approves the project. The department shall establish by rule9 4criteria for approval of projects. The department may adopt9 5any rule effective immediately upon filing with the9 6administrative rules coordinator or at a subsequent stated9 7date prior to indexing and publication, or at a stated date9 8less than thirty-five days after filing, indexing, and9 9publication. The department of economic development shall9 10prepare an annual report for the governor and general assembly9 11on the activities and the future anticipated needs of this9 12jobs training program.9 13 Sec. 13. Section 260F.8, Code 1995, is amended to read as 9 14 follows: 9 15 260F.8 ALLOCATION. 9 16 1. Fortheeach fiscal yearbeginning July 1, 1992, and9 17subsequent years, the departmentof economic developmentshall 9 18 make funds available to the community colleges. The 9 19 department shall allocate by formulaat the beginning of the9 20fiscal yearfrom the moneys in the fund an amount for each 9 21merged areacommunity college to be used to provide the 9 22 financial assistance for proposals of businesseslocated in9 23the merged areawhose applications have been approved by the 9 24 department. The financial assistance shall be provided by the 9 25 department from the amount set aside for thatmerged area9 26 community college. If any portion of the moneys set aside for 9 27 amerged areacommunity college have not been used or 9 28 committed byMarchMay 1 of the fiscal year, that portion is 9 29 available for use by the department to provide financial 9 30 assistance to businesses located in othermerged areas9 31 community colleges. The department shall adopt by rule a 9 32 formula for this set-asidebased on population and per capita9 33income of the merged area. 9 34 2. Moneys available to the community colleges for this 9 35 program may be used to providegrantsforgivable loans to 10 1 trainfor new jobs or retain existing jobs when the project10 2costs are less than five thousand dollarsemployees.If the10 3project is for a consortium of businesses, project costs shall10 4not exceed an average of five thousand dollars per business.10 5 Sec. 14. Section 403.19, subsection 1, paragraph c, Code 10 6 1995, is amended to read as follows: 10 7 c. For the purposes of dividing taxes undersections10 8 section 260E.4and 260F.4, the applicable assessment roll for 10 9 purposes of paragraph "a" shall be the assessment roll as of 10 10 January 1 of the calendar year preceding the first written 10 11 agreement providing that all or a portion of program costs are 10 12 to be paid for by incremental property taxes. The community 10 13 college shall file a copy of the agreement with the 10 14 appropriate assessor. The assessor may, within fourteen days 10 15 of such filing, physically inspect the applicable taxable 10 16 business property. If upon such inspection the assessor 10 17 determines that there has been a change in the value of the 10 18 property from the value as shown on the assessment roll as of 10 19 January 1 of the calendar year preceding the filing of the 10 20 agreement and such change in value is due to new construction, 10 21 additions or improvements to existing structures, or 10 22 remodeling of existing structures for which a building permit 10 23 was required, the assessor shall promptly determine the value 10 24 of the property as of the inspection in the manner provided in 10 25 chapter 441 and that value shall be included for purposes of 10 26 the jobs training project in the assessed value of the 10 27 employer's taxable business property as shown on the 10 28 assessment roll as of January 1 of the calendar year preceding 10 29 the filing of the agreement. The assessor, within thirty days 10 30 of such filing, shall notify the community college and the 10 31 employer or business of that valuation which shall be included 10 32 in the assessed valuation for purposes of this subsection and 10 33 section 260E.4or 260F.4. The value determined by the 10 34 assessor shall reflect the change in value due solely to new 10 35 construction, additions or improvements to existing 11 1 structures, or remodeling of existing structures for which a 11 2 building permit was required. 11 3 Sec. 15. Section 422.16A, Code Supplement 1995, is amended 11 4 to read as follows: 11 5 422.16A JOB TRAINING WITHHOLDING – CERTIFICATION AND 11 6 TRANSFER. 11 7 Upon payment in full of a certificate of participation or 11 8 other obligation issued to fund a job training program under 11 9 chapter 260E, the community college providing the job training 11 10 program shall notify the department of economic development of 11 11 the amount paid by the employer or business to the community 11 12 college to retire the certificate during thepreviouslast 11 13 twelve months of withholding collections. The department of 11 14 economic development shall notify the department of revenue 11 15 and finance of that amount. The department shall credit to 11 16 the workforce development fund established in section 15.343 11 17 twenty-five percent of that amount each quarter for a period 11 18 of ten years. If the amount of withholding from the business 11 19 or employer is insufficient, the department shall prorate the 11 20 quarterly amount credited to the workforce development fund. 11 21 The maximum amount from all employers which shall be 11 22 transferred to the workforce development fund in any year is 11 23twoten million dollars. 11 24 Sec. 16. Section 427B.17, subsection 7, Code Supplement 11 25 1995, is amended to read as follows: 11 26 7. For the purpose of dividing taxes under section 260E.4 11 27or 260F.4, the employer's or business's valuation of property 11 28 defined in section 427A.1, subsection 1, paragraphs "e" and 11 29 "j", and used to fund a new jobs training project which 11 30 project's first written agreement providing for a division of 11 31 taxes as provided in section 403.19 is approved on or before 11 32 June 30, 1995, shall be limited to thirty percent of the net 11 33 acquisition cost of the property. An employer's or business's 11 34 taxable property used to fund a new jobs training project 11 35 shall not be valued pursuant to subsection 2 or 3, whichever 12 1 is applicable, until the assessment year following the 12 2 calendar year in which the certificates or other funding 12 3 obligations have been retired or escrowed. The taxpayer's 12 4 valuation for such property shall then be the valuation 12 5 specified in subsection 1 for the applicable assessment year. 12 6 If the certificates issued, or other funding obligations 12 7 incurred, between January 1, 1982, and June 30, 1995, are 12 8 refinanced or refunded after June 30, 1995, the valuation of 12 9 such property shall then be the valuation specified in 12 10 subsection 2 or 3, whichever is applicable, for the applicable 12 11 assessment year beginning with the assessment year following 12 12 the calendar year in which those certificates or other funding 12 13 obligations are refinanced or refunded after June 30, 1995. 12 14 Sec. 17. 1995 Iowa Acts, chapter 184, section 12, is 12 15 repealed. 12 16 Sec. 18. REPEALS. Sections 260F.4 and 260F.5, Code 1995, 12 17 are repealed. 12 18 EXPLANATION 12 19 This bill makes changes and additions to department of 12 20 economic development programs. The bill provides as follows: 12 21 Sections 15.343 and 422.16A are amended to change the cap 12 22 on the amount which can be transferred into the workforce 12 23 development fund from employer withholding amounts previously 12 24 used to retire job training program certificates under chapter 12 25 260E from $2 million to $10 million. The bill also repeals 12 26 the provisions enacted as part of House File 573 in 1995 which 12 27 sunset the workforce development fund program in 1997. 12 28 The bill creates an innovative skill development account to 12 29 the workforce development fund program. Moneys in the account 12 30 shall be used to fund business network training and other 12 31 innovative skill development training for Iowa businesses. 12 32 Section 15A.7 is created authorizing a supplemental new 12 33 jobs credit from withholding for employers creating jobs which 12 34 pay at least the average wage in the county in which the jobs 12 35 are located. The supplemental credit would be an amount equal 13 1 to 1.50 percent of the gross wages paid on the jobs and would 13 2 be used to fund job training program services. The 13 3 supplemental credit from withholding is to be administered in 13 4 the same manner as the new jobs credit under chapter 260E and 13 5 is in addition to and not in lieu of the credit under chapter 13 6 260E. 13 7 Section 15E.112 is amended to provide that not more than 4 13 8 percent (currently one percent) of the total moneys available 13 9 to the support value-added agricultural products and processes 13 10 program during each quarter may be used for administration of 13 11 the program. 13 12 New section 15E.113 provides that the department may 13 13 contract with a microbusinesses organization which meets 13 14 certain criteria, including a track record of assistance to 13 15 microbusinesses, to establish a program of assistance to rural 13 16 microbusinesses. The section also provides that $125,000 of 13 17 the moneys available for the value-added agricultural products 13 18 and processes program shall be used annually to fund the 13 19 microbusiness rural enterprise assistance program. 13 20 Microbusinesses are defined by the bill as service businesses 13 21 employing five or fewer full-time equivalent employees with 13 22 the need for up to $25,000 in assistance. The department is 13 23 to report to the general assembly regarding the activities of 13 24 the program. Further, moneys allocated to the program are not 13 25 to revert to the general fund. 13 26 The bill renames chapter 260F the Iowa jobs training Act 13 27 and makes several changes to the chapter including the 13 28 following: 13 29 1. Businesses which are eligible for assistance are those 13 30 which are currently training existing employees, rather than 13 31 employees in new jobs. The bill provides that a business is 13 32 ineligible for assistance if the business closes or 13 33 substantially reduces employment to relocate to another area 13 34 of the state or is involved in a strike, lockout, or other 13 35 labor dispute and that program funds shall not be used to 14 1 train replacement workers hired as part of a labor dispute. 14 2 2. The bill eliminates the tax increment financing 14 3 provisions currently used to provide program funds under the 14 4 chapter. The new jobs credit from withholding is also 14 5 eliminated. This provision allowed 1.50 percent of the gross 14 6 wages paid to each employee in a new job training project to 14 7 be credited to the cost of the training project. The 14 8 department of economic development shall allocate funds for 14 9 projects under the chapter. 14 10 3. The bill also provides for training of groups of 14 11 businesses and for providing a maximum amount of assistance 14 12 for businesses participating in training under chapter 260F 14 13 would be $25,000 per business with a cap of $50,000 per three- 14 14 year period. 14 15 LSB 4375SC 76 14 16 mk/cf/24
Text: SSB02285 Text: SSB02287 Text: SSB02200 - SSB02299 Text: SSB Index Bills and Amendments: General Index Bill History: General Index
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