Text: HF00256 Text: HF00258 Text: HF00200 - HF00299 Text: HF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 Section 1. NEW SECTION. 15E.180 ECONOMIC DEVELOPMENT 1 2 BLOCK GRANTS. 1 3 1. A multicommunity development organization which 1 4 annually meets the eligibility requirements of this section 1 5 shall receive, upon application to the department of economic 1 6 development, an economic development block grant of up to one 1 7 hundred thousand dollars each year for a five-year period. 1 8 The department shall determine the amount of the grant for 1 9 which the multicommunity development organization is qualified 1 10 and notify the director of the department of revenue and 1 11 finance of this amount. Recipients may reapply for a second 1 12 grant period. The multicommunity development organization may 1 13 be a multicommunity-based economic development organization, 1 14 or a county or city government economic development 1 15 organization. Block grant moneys shall be paid by the 1 16 treasurer of state out of franchise tax moneys received by the 1 17 state and appropriated for the purpose of economic development 1 18 block grants pursuant to section 422.65. 1 19 2. In order to be eligible to receive block grant moneys, 1 20 the multicommunity development organization shall do all of 1 21 the following: 1 22 a. Provide public or private matching funds of one dollar 1 23 for every two dollars qualified for under subsection 1. 1 24 b. Demonstrate approval from the communities or counties 1 25 served by the multicommunity development organization. 1 26 c. File with the department of economic development a 1 27 five-year economic development plan. The plan must include, 1 28 at a minimum, all of the following components: 1 29 (1) A statement explaining the economic development 1 30 mission of the multicommunity development organization. 1 31 (2) A program to assist existing industry in the 1 32 communities or counties served by the multicommunity 1 33 development organization. 1 34 (3) A program to encourage businesses to locate in the 1 35 communities or counties served by the multicommunity 2 1 development organization and to assist in the start-up of new 2 2 businesses in those communities or counties. 2 3 (4) A plan to market the communities or counties to 2 4 businesses seeking to locate or relocate businesses and to 2 5 market to individuals or businesses the services available 2 6 under the economic development plan. 2 7 (5) A budget for implementation of the plan. 2 8 (6) A minimum of one full-time economic development staff 2 9 person. 2 10 3. Recipients may use block grant moneys for any 2 11 recognized economic development purpose which is consistent 2 12 with state and federal law including, but not limited to, all 2 13 of the following: 2 14 a. Contracting for economic development services. 2 15 b. Distributing block grant moneys to any city, county, or 2 16 community economic development organization. 2 17 c. Using block grant moneys as matching funds for federal 2 18 or state economic development programs. 2 19 d. Developing infrastructure. 2 20 e. Renovating or building speculative shell buildings as 2 21 defined in section 427.1, subsection 27, paragraph "c". 2 22 f. Building housing development infrastructure. 2 23 g. Creating a fund to provide grants or revolving loans to 2 24 businesses. 2 25 h. Funding community marketing activities, including 2 26 tourism marketing. 2 27 i. Funding reasonable expenses of operational costs 2 28 including staff salaries. 2 29 j. Funding for the planning and start-up costs for 2 30 organizing local multicommunity development organizations. 2 31 4. This section is repealed effective June 30, 2008. 2 32 Sec. 2. Section 422.65, Code 1997, is amended to read as 2 33 follows: 2 34 422.65 ALLOCATION OF REVENUE. 2 35 1. All moneys received from the franchise tax shall be 3 1 deposited in thestategeneral fund of the state. Commencing 3 2 with the fiscal year beginning July 1,19931997, there is 3 3 appropriated for each fiscal year from the franchise tax money 3 4 received and deposited in thestategeneral fundthe sum of3 5eight million eight hundred thousand dollars which shall be3 6paid quarterly on warrants by the director, after3 7certification by the director, as followsof the state the 3 8 following amounts: 3 9 a. Thirty percent which shall be paid quarterly on 3 10 warrants by the director, after certification by the director, 3 11 as follows: 3 121.(1) Sixty percent of the thirty percent to the general 3 13 fund of the city from which the tax is collected. 3 142.(2) Forty percent of the thirty percent to the county 3 15 from which the tax is collected. 3 16 b. Thirty percent, up to nine million nine hundred 3 17 thousand dollars, or as much as may be necessary up to thirty 3 18 percent, which shall provide for economic development block 3 19 grants to be given to eligible multicommunity development 3 20 organizations in accordance with section 15E.180. Block 3 21 grants are limited to one hundred thousand dollars per 3 22 multicommunity development organization per year. 3 23 (1) Any portion of the thirty percent, up to nine million 3 24 nine hundred thousand dollars, remaining unobligated in any 3 25 fiscal year shall be transferred to the rural enterprise fund, 3 26 created in 261 IAC 46, for grants or loans to businesses with 3 27 fifty or fewer employees. 3 28 (2) Any portion of the thirty percent exceeding nine 3 29 million nine hundred thousand dollars shall revert to the 3 30 general fund of the state. 3 31 c. Forty percent of the moneys received from the franchise 3 32 tax shall remain in the general fund of the state. 3 33 2. If the financial institution maintains one or more 3 34 offices for the transaction of business, other than its 3 35 principal office, a portion of its franchise tax shall be 4 1 allocated to each office, based upon a reasonable measure of 4 2 the business activity of each office. The director shall 4 3 prescribe, for each type of financial institution, a method of 4 4 measuring the business activity of each office. Financial 4 5 institutions shall furnish all necessary information for this 4 6 purpose at the request of the director. 4 7 3. Quarterly, the director shall certify to the treasurer 4 8 of state the amounts to be paid to each city,andcounty, and 4 9 multicommunity development organization from thestategeneral 4 10 fund of the state under subsection 1, paragraphs "a" and "b". 4 11 All moneys received from the franchise tax are appropriated 4 12 according tothe provisions ofthis section. 4 13 Sec. 3. REPEAL. The amendments made to Code section 4 14 422.65 in this Act are repealed effective June 30, 2008. Upon 4 15 repeal, the Code editor shall return the language of section 4 16 422.65 to the language used in the 1995 Code of Iowa. 4 17 Intervening amendments to the changes made to section 422.65 4 18 are not repealed. 4 19 EXPLANATION 4 20 This bill provides for economic development block grants to 4 21 be given to qualifying multicommunity development 4 22 organizations. Qualifying block grant recipients may receive 4 23 up to $100,000 per year for a period of five years. 4 24 Multicommunity development organizations may be a 4 25 multicommunity-based economic development organization or a 4 26 county or city government economic development organization. 4 27 This bill provides that in order to be eligible to receive a 4 28 block grant, a multicommunity development organization shall 4 29 provide public or private matching funds or both of one dollar 4 30 for every two dollars qualified for, demonstrate approval from 4 31 the communities or counties served by the organization, and 4 32 file with the department of economic development a five-year 4 33 economic development plan. Block grant moneys may be used for 4 34 any recognized economic development purpose which is 4 35 consistent with state and federal law. 5 1 The bill amends Code section 422.65 which deals with the 5 2 allocation of moneys received from the franchise tax imposed 5 3 on financial institutions. The bill provides that, beginning 5 4 July 1, 1997, 30 percent shall be paid to the city and county 5 5 from which the tax is collected, 30 percent or up to 5 6 $9,900,000 to provide for economic development block grants 5 7 awarded pursuant to Code section 15E.180, and 40 percent shall 5 8 remain in the general fund of the state. Of the 30 percent or 5 9 up to $9,900,000 designated for economic development block 5 10 grants, any unobligated moneys in any fiscal year are 5 11 transferred to the rural enterprise fund and any portion of 5 12 the 30 percent exceeding $9,900,000 reverts to the general 5 13 fund of the state. 5 14 The economic development block grant program and the 5 15 conforming amendments in Code section 422.65 are repealed 5 16 effective June 30, 2008. 5 17 LSB 1623YH 77 5 18 tm/jw/5
Text: HF00256 Text: HF00258 Text: HF00200 - HF00299 Text: HF Index Bills and Amendments: General Index Bill History: General Index
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