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Senate Study Bill 2335

Conference Committee Text

PAG LIN
  1  1    Section 1.  Section 260E.2, subsection 8, Code 1995, is
  1  2 amended by striking the subsection.
  1  3    Sec. 2.  Section 260E.3, subsection 1, Code Supplement
  1  4 1995, is amended to read as follows:
  1  5    1.  A community college may enter into an agreement to
  1  6 establish a project.  If an agreement is entered into, the
  1  7 community college and the employer shall notify the department
  1  8 of revenue and finance as soon as possible.  An agreement
  1  9 shall provide for program costs, including deferred costs,
  1 10 which may be paid from one or a combination of the following
  1 11 sources:
  1 12    a.  Incremental property taxes to be received or derived
  1 13 from an employer's business property where new jobs are
  1 14 created as a result of the project.
  1 15    b. a.  New jobs credit from withholding to be received or
  1 16 derived from new employment resulting from the project.
  1 17    c. b.  Tuition, student fees, or special charges fixed by
  1 18 the board of directors to defray program costs in whole or in
  1 19 part.
  1 20    d. c.  Guarantee of payments to be received under paragraph
  1 21 "a," "b," or "c" "a" or "b".
  1 22    Sec. 3.  Section 260E.3, subsection 4, Code Supplement
  1 23 1995, is amended to read as follows:
  1 24    4.  An agreement shall include a provision which fixes the
  1 25 minimum amount of incremental property taxes, new jobs credit
  1 26 from withholding, or tuition and fee payments which shall be
  1 27 paid for program costs.
  1 28    Sec. 4.  Section 260E.5, subsection 2, Code 1995, is
  1 29 amended to read as follows:
  1 30    2.  An amount equal to one and one-half three percent of
  1 31 the gross wages paid by the employer to each employee
  1 32 participating in a project shall be credited from the payment
  1 33 made by an employer pursuant to section 422.16.  If the amount
  1 34 of the withholding by the employer is less than one and one-
  1 35 half three percent of the gross wages paid to the employees
  2  1 covered by the agreement, then the employer shall receive a
  2  2 credit against other withholding taxes due by the employer.
  2  3 The employer shall remit the amount of the credit quarterly in
  2  4 the same manner as withholding payments are reported to the
  2  5 department of revenue and finance, to the community college to
  2  6 be allocated to and when collected paid into a special fund of
  2  7 the community college to pay the principal of and interest on
  2  8 certificates issued by the community college to finance or
  2  9 refinance, in whole or in part, the project.  When the
  2 10 principal and interest on the certificates have been paid, the
  2 11 employer credits shall cease and any money received after the
  2 12 certificates have been paid shall be remitted to the treasurer
  2 13 of state to be deposited in the general fund of the state.
  2 14    Sec. 5.  Section 260F.2, subsection 7, Code 1995, is
  2 15 amended by striking the subsection.
  2 16    Sec. 6.  Section 260F.3, subsection 1, Code 1995, is
  2 17 amended to read as follows:
  2 18    1.  A community college may enter into an agreement to
  2 19 establish a project.  If an agreement is entered into, the
  2 20 community college and the business shall notify the department
  2 21 of revenue and finance as soon as possible.  An agreement
  2 22 shall provide for program costs, including deferred costs, for
  2 23 a project creating new jobs by providing education and
  2 24 training of workers for a new or expanding small business
  2 25 which may be paid from one or a combination of the following
  2 26 sources:
  2 27    a.  Incremental property taxes to be received or derived
  2 28 from the business' property where new jobs are created as a
  2 29 result of the project.
  2 30    b. a.  New jobs credit from withholding to be received or
  2 31 derived from new employment resulting from the project.
  2 32    c. b.  Tuition, student fees, or special charges fixed by
  2 33 the board of directors to defray program costs in whole or in
  2 34 part.
  2 35    d. c.  Guarantee of payments to be received under paragraph
  3  1 "a", or "b", or "c".
  3  2    Sec. 7.  Section 260F.3, subsection 5, Code 1995, is
  3  3 amended to read as follows:
  3  4    5.  If applicable, an agreement shall include a provision
  3  5 which fixes the minimum amount of incremental property taxes,
  3  6 new jobs credit from withholding, or tuition and fee payments
  3  7 which shall be paid for program costs.
  3  8    Sec. 8.  Section 260F.5, subsection 2, Code 1995, is
  3  9 amended to read as follows:
  3 10    2.  An amount equal to one and one-half three percent of
  3 11 the gross wages paid by the business to each employee
  3 12 participating in a project shall be credited from the payment
  3 13 made by a business pursuant to section 422.16.  If the amount
  3 14 of the withholding by the business is less than one and one-
  3 15 half three percent of the gross wages paid to the employees
  3 16 covered by the agreement, then the business shall receive a
  3 17 credit against other withholding taxes due by the business.
  3 18 The business shall remit the amount of the credit quarterly in
  3 19 the same manner as withholding payments are reported to the
  3 20 department of revenue and finance, to the community college.
  3 21 To the extent this credit represents repayments of an advance
  3 22 made under section 260F.6 plus interest, it shall be paid to
  3 23 the treasurer of state.  When the repayments of an advance
  3 24 plus interest have been paid, the business credits shall cease
  3 25 and any money received after this shall be remitted to the
  3 26 treasurer of state to be deposited in the general fund of the
  3 27 state.
  3 28    Sec. 9.  Section 403.19, subsection 1, paragraph c, Code
  3 29 1995, is amended by striking the paragraph.
  3 30    Sec. 10.  Section 427B.17, subsection 7, Code Supplement
  3 31 1995, is amended by striking the subsection.
  3 32    Sec. 11.  Sections 260E.4, 260F.4, and 403.21, Code 1995,
  3 33 are repealed.
  3 34    Sec. 12.  APPLICABILITY.  This Act applies to new jobs
  3 35 training project agreements and small business new jobs
  4  1 training project agreements entered into on or after July 1,
  4  2 1996.  
  4  3                           EXPLANATION
  4  4    This bill removes incremental property taxes as a source of
  4  5 funding for industrial new jobs training projects and small
  4  6 business new jobs training projects.  The bill also increases
  4  7 from 1.5 percent to 3 percent the wage withholding amount
  4  8 which may be used to fund such projects.
  4  9    The bill applies to new jobs training agreements entered
  4 10 into on or after July 1, 1996.  
  4 11 LSB 4388SC 76
  4 12 sc/sc/14
     

Text: SSB02334                          Text: SSB02336
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