Text: H01622 Text: H01624 Text: H01600 - H01699 Text: H Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 Amend the Senate amendment, H-1615, to House File 1 2 692, as amended, passed, and reprinted by the House, 1 3 as follows: 1 4 #1. Page 5, line 23, by striking the word "or". 1 5 #2. By striking page 23, line 23, through page 24, 1 6 line 14, and inserting the following: 1 7 "a. On all taxable income from 1 8 zero through one thousand dollars,1 9thirty-six hundredths of one1 10percent.: ............................. .35% .34% .32% 1 11 b. On all taxable income exceeding 1 12 one thousand dollars but not 1 13 exceeding two thousand dollars,1 14seventy-two hundredths of one1 15percent.: ............................. .70% .68% .65% 1 16 c. On all taxable income exceeding 1 17 two thousand dollars but not 1 18 exceeding four thousand dollars,1 19two and forty-three hundredths1 20percent.: ............................ 2.36% 2.30% 2.19% 1 21 d. On all taxable income exceeding 1 22 four thousand dollars but not 1 23 exceeding nine thousand dollars,1 24four and one-half percent.: .......... 4.37% 4.27% 4.05% 1 25 e. On all taxable income exceeding 1 26 nine thousand dollars but not 1 27 exceeding fifteen thousand 1 28 dollars, six and twelve hundredths1 29percent.: ............................ 5.94% 5.80% 5.51% 1 30 f. On all taxable income exceeding 1 31 fifteen thousand dollars but not 1 32 exceeding twenty thousand 1 33 dollars, six and forty-eight hundredths1 34percent.: ............................ 6.29% 6.14% 5.84% 1 35 g. On all taxable income exceeding 1 36 twenty thousand dollars but not 1 37 exceeding thirty thousand 1 38 dollars, six and eight-tenths1 39percent.: ............................ 6.60% 6.45% 6.13% 1 40 h. On all taxable income exceeding 1 41 thirty thousand dollars but not 1 42 exceeding forty-five thousand 1 43 dollars, seven and ninety-two hundredths1 44percent.: ............................ 7.68% 7.51% 7.14% 1 45 i. On all taxable income exceeding 1 46 forty-five thousand dollars, eight1 47and ninety-eight hundredths1 48percent.: ............................ 8.71% 8.51% 8.09%" 1 49 #3. By striking page 24, line 28, through page 25, 1 50 line 19, and inserting the following: 2 1 "a. On all taxable income from 2 2 zero through one thousand dollars,2 3thirty-six hundredths of one2 4percent.: ............................. .31% 2 5 b. On all taxable income exceeding 2 6 one thousand dollars but not 2 7 exceeding two thousand dollars,2 8seventy-two hundredths of one2 9percent.: ............................. .62% 2 10 c. On all taxable income exceeding 2 11 two thousand dollars but not 2 12 exceeding four thousand dollars,2 13two and forty-three hundredths2 14percent.: ............................ 2.09% 2 15 d. On all taxable income exceeding 2 16 four thousand dollars but not 2 17 exceeding nine thousand dollars,2 18four and one-half percent.: .......... 3.87% 2 19 e. On all taxable income exceeding 2 20 nine thousand dollars but not 2 21 exceeding fifteen thousand 2 22 dollars, six and twelve hundredths2 23percent.: ............................ 5.26% 2 24 f. On all taxable income exceeding 2 25 fifteen thousand dollars but not 2 26 exceeding twenty thousand 2 27 dollars, six and forty-eight hundredths2 28percent.: ............................ 5.57% 2 29 g. On all taxable income exceeding 2 30 twenty thousand dollars but not 2 31 exceeding thirty thousand 2 32 dollars, six and eight-tenths2 33percent.: ............................ 5.84% 2 34 h. On all taxable income exceeding 2 35 thirty thousand dollars but not 2 36 exceeding forty-five thousand 2 37 dollars, seven and ninety-two hundredths2 38percent.: ............................ 6.80% 2 39 i. On all taxable income exceeding 2 40 forty-five thousand dollars, eight2 41and ninety-eight hundredths2 42percent.: ............................ 7.71%" 2 43 #4. Page 26, line 12, by striking the words "two 2 44 and five" and inserting the following: "one and 2 45 eighty-five". 2 46 #5. Page 26, line 15, by striking the word "sixty- 2 47 five" and inserting the following: "seventy-five". 2 48 #6. Page 26, line 17, by striking the word "nine- 2 49 tenths" and inserting the following: "ninety-nine 2 50 hundredths". 3 1 #7. By striking page 39, line 5 through page 65, 3 2 line 1 and inserting the following: 3 3 "DIVISION __ 3 4 GROW IOWA VALUES BOARD AND FUND 3 5 Sec. . Section 15.108, subsection 9, Code 2003, 3 6 is amended by adding the following new paragraph: 3 7 NEW PARAGRAPH. g. Administer the marketing 3 8 strategy selected pursuant to section 15G.108. 3 9 Sec. . NEW SECTION. 15G.101 DEFINITIONS. 3 10 As used in this chapter, unless the context 3 11 otherwise requires: 3 12 1. "Board" means the grow Iowa values board 3 13 established in section 15G.102. 3 14 2. "Department" means the Iowa department of 3 15 economic development created in section 15.105. 3 16 3. "Director" means the director of the department 3 17 of economic development. 3 18 4. "Fund" means the grow Iowa values fund created 3 19 in section 15G.107. 3 20 5. "Grow Iowa values geographic regions" means the 3 21 geographic regions defined in section 15G.105. 3 22 Sec. . NEW SECTION. 15G.102 GROW IOWA VALUES 3 23 BOARD. 3 24 1. The grow Iowa values board is established 3 25 consisting of eleven voting members and four ex 3 26 officio, nonvoting members. The grow Iowa values 3 27 board shall be located for administrative purposes 3 28 within the department and the director shall provide 3 29 office space, staff assistance, and necessary supplies 3 30 and equipment for the board. The director shall 3 31 budget moneys to pay the compensation and expenses of 3 32 the board. In performing its functions, the board is 3 33 performing a public function on behalf of the state 3 34 and is a public instrumentality of the state. 3 35 2. a. The eleven voting members of the board 3 36 shall be appointed by the governor, subject to 3 37 confirmation by the senate. 3 38 b. The four ex officio, nonvoting members shall be 3 39 appointed as follows: 3 40 (1) One member appointed by the president of the 3 41 senate. 3 42 (2) One member appointed by the minority leader of 3 43 the senate. 3 44 (3) One member appointed by the speaker of the 3 45 house of representatives. 3 46 (4) One member appointed by the minority leader of 3 47 the house of representatives. 3 48 c. All appointments shall comply with sections 3 49 69.16 and 69.16A. 3 50 d. At least one member of the board shall be from 4 1 each grow Iowa values geographic region. 4 2 e. Each of the following areas of expertise shall 4 3 be represented by at least one member of the board who 4 4 has professional experience in that area of expertise: 4 5 (1) Finance and investment banking. 4 6 (2) Advanced manufacturing. 4 7 (3) Statewide agriculture. 4 8 (4) Life sciences. 4 9 (5) Small business development. 4 10 (6) Information technology. 4 11 (7) Economics. 4 12 (8) Labor. 4 13 (9) Marketing. 4 14 (10) Entrepreneurship. 4 15 f. At least nine voting members of the board shall 4 16 be actively employed in the private, for-profit sector 4 17 of the economy. 4 18 g. The board membership shall be balanced between 4 19 representation by employers with less than two hundred 4 20 employees and employers with two hundred or more 4 21 employees. 4 22 3. The chairperson and vice chairperson shall be 4 23 elected by the voting members of the board from the 4 24 membership of the board. In the case of the absence 4 25 or disability of the chairperson and vice chairperson, 4 26 the voting members of the board shall elect a 4 27 temporary chairperson by a majority vote of those 4 28 voting members who are present and voting, provided a 4 29 quorum is present. 4 30 4. The members of the board shall be appointed to 4 31 three-year staggered terms and the terms shall 4 32 commence and end as provided in section 69.19. If a 4 33 vacancy occurs, a successor shall be appointed in the 4 34 same manner and subject to the same qualifications as 4 35 the original appointment to serve the unexpired term. 4 36 5. A majority of the voting members of the board 4 37 constitutes a quorum. 4 38 6. A member of the board shall abstain from voting 4 39 on the provision of financial assistance to a project 4 40 which is located in the county in which the member of 4 41 the board resides. 4 42 7. The members of the board are entitled to 4 43 receive reimbursement for actual expenses incurred 4 44 while engaged in the performance of official duties. 4 45 A board member may also be eligible to receive 4 46 compensation as provided in section 7E.6. 4 47 Sec. . NEW SECTION. 15G.103 BOARD DUTIES. 4 48 The board shall do all of the following: 4 49 1. Organize. 4 50 2. Receive advice and recommendations from the due 5 1 diligence committee, the economic development 5 2 marketing board, and the grow Iowa values review 5 3 commission. 5 4 3. Assist the department in implementing programs 5 5 and activities in a manner designed to achieve the 5 6 goals set out in section 15G.106. 5 7 4. By December 15 of each year, submit a written 5 8 report to the general assembly reviewing the 5 9 activities of the board during the calendar year. The 5 10 report shall include information necessary for the 5 11 review of the goals and performance measures set out 5 12 in section 15G.106. State agencies and other entities 5 13 receiving moneys from the fund shall cooperate with 5 14 and assist the board in compilation of the report. 5 15 5. Adopt administrative rules pursuant to chapter 5 16 17A necessary to administer this chapter. This 5 17 delegation shall be construed narrowly. 5 18 6. Adopt a strategic plan pursuant to section 5 19 8E.204 by July 1, 2004. 5 20 Sec. . NEW SECTION. 15G.104 DUE DILIGENCE 5 21 COMMITTEE. 5 22 1. A due diligence committee is established 5 23 consisting of five members and is located for 5 24 administrative purposes within the department. The 5 25 director of the department shall provide office space, 5 26 staff assistance, and necessary supplies and equipment 5 27 for the committee. The director shall budget moneys 5 28 to pay the compensation and expenses of the committee. 5 29 In performing its functions, the committee is 5 30 performing a public function on behalf of the state 5 31 and is a public instrumentality of the state. 5 32 2. a. Membership of the due diligence committee 5 33 shall consist of five voting members of the grow Iowa 5 34 values board elected annually by the voting members of 5 35 the board. Committee members shall have expertise in 5 36 the areas of banking and entrepreneurship. 5 37 b. The chairperson and vice chairperson of the 5 38 committee shall be elected by and from the committee 5 39 members. The terms of the members shall commence and 5 40 end as provided by section 69.19. If a vacancy 5 41 occurs, a successor shall be appointed in the same 5 42 manner and subject to the same qualifications as the 5 43 original appointment to serve the unexpired term. A 5 44 majority of the committee constitutes a quorum. 5 45 3. The committee, after a thorough review, shall 5 46 determine whether a proposed project using moneys from 5 47 the grow Iowa values fund is practical and shall 5 48 provide recommendations to the grow Iowa values board 5 49 regarding any moneys proposed to be expended from the 5 50 grow Iowa values fund, with the exception of moneys 6 1 appropriated for purposes of the loan and credit 6 2 guarantee program and regarding whether a proposed 6 3 project is practical. The recommendations shall be 6 4 based on whether the expenditure would make the 6 5 achievement of the goals in accordance with the 6 6 performance measures set out in section 15G.106 more 6 7 likely. The recommendations may include conditions or 6 8 that a proposed expenditure be rejected. 6 9 4. The members of the committee are entitled to 6 10 receive reimbursement for actual expenses incurred 6 11 while engaged in the performance of official duties. 6 12 A committee member may also be eligible to receive 6 13 compensation as provided in section 7E.6. 6 14 Sec. . NEW SECTION. 15G.104A GROW IOWA VALUES 6 15 REVIEW COMMISSION. 6 16 1. A grow Iowa values review commission is 6 17 established consisting of three members and is located 6 18 for administrative purposes within the office of the 6 19 auditor of state. The auditor of state shall provide 6 20 office space, staff assistance, and necessary supplies 6 21 and equipment for the review commission. The auditor 6 22 of state shall budget moneys to pay the compensation 6 23 and expenses of the commission, including the actual 6 24 expenses of the auditor of state incurred while 6 25 engaged in the performance of official commission 6 26 duties. In performing its functions, the review 6 27 commission is performing a public function on behalf 6 28 of the state and is a public instrumentality of the 6 29 state. 6 30 2. Membership of the review commission shall 6 31 include the auditor of state, one member appointed by 6 32 the governor subject to confirmation by the senate, 6 33 and one member appointed by the legislative council. 6 34 The members appointed by the governor and the 6 35 legislative council shall possess experience and 6 36 expertise in the field of economics. The appointments 6 37 shall comply with sections 69.16 and 69.16A. The 6 38 chairperson of the review commission shall be the 6 39 auditor of state. The members shall be appointed to 6 40 three-year staggered terms and the terms shall 6 41 commence and end as provided by section 69.19. If a 6 42 vacancy occurs, a successor shall be appointed in the 6 43 same manner and subject to the same qualifications as 6 44 the original appointment to serve the unexpired term. 6 45 A majority of the review commission constitutes a 6 46 quorum. 6 47 3. The review commission shall analyze all annual 6 48 reports of the grow Iowa values board for purposes of 6 49 determining if the goals and performance measures set 6 50 out in section 15G.106 have been met. By January 1, 7 1 2007, the review commission shall submit a report to 7 2 the grow Iowa values board, the department, and the 7 3 general assembly. The report shall include findings, 7 4 itemized by grow Iowa values geographic regions, 7 5 regarding whether the goals and performance measures 7 6 were met. The report shall also include 7 7 recommendations regarding the continuation, 7 8 elimination, or modification of any programs receiving 7 9 moneys from the grow Iowa values fund and whether 7 10 moneys should continue to be appropriated to and from 7 11 the grow Iowa values fund. The recommendations shall 7 12 be based on whether the goals in accordance with the 7 13 performance measures are being achieved. 7 14 4. The members of the commission, including the 7 15 auditor of state, are entitled to receive 7 16 reimbursement for actual expenses incurred while 7 17 engaged in the performance of official duties. A 7 18 commission member may also be eligible to receive 7 19 compensation as provided in section 7E.6. 7 20 Sec. . NEW SECTION. 15G.105 GROW IOWA VALUES 7 21 GEOGRAPHIC REGIONS. 7 22 For purposes of applying the goals and performance 7 23 measurements, the state shall be divided into five 7 24 grow Iowa values geographic regions. The regions 7 25 shall be the following: 7 26 1. The northwest region shall include the counties 7 27 of Lyon, Osceola, Dickinson, Emmet, Kossuth, 7 28 Winnebago, Sioux, O'Brien, Clay, Palo Alto, Hancock, 7 29 Plymouth, Cherokee, Buena Vista, Pocahontas, Humboldt, 7 30 Wright, Woodbury, Ida, Sac, Calhoun, Webster, and 7 31 Hamilton. 7 32 2. The northeast region shall include the counties 7 33 of Worth, Mitchell, Howard, Winneshiek, Allamakee, 7 34 Cerro Gordo, Floyd, Chickasaw, Fayette, Clayton, 7 35 Franklin, Butler, Bremer, Hardin, Grundy, Black Hawk, 7 36 Buchanan, Delaware, Dubuque, Tama, Benton, Linn, 7 37 Jones, and Jackson. 7 38 3. The southeast region shall include the counties 7 39 of Poweshiek, Iowa, Johnson, Cedar, Clinton, Scott, 7 40 Muscatine, Mahaska, Keokuk, Washington, Louisa, 7 41 Monroe, Wapello, Jefferson, Henry, Des Moines, 7 42 Appanoose, Davis, Van Buren, and Lee. 7 43 4. The southwest region shall include the counties 7 44 of Monona, Crawford, Carroll, Greene, Harrison, 7 45 Shelby, Audubon, Guthrie, Pottawattamie, Cass, Adair, 7 46 Mills, Montgomery, Adams, Union, Clarke, Lucas, 7 47 Fremont, Page, Taylor, Ringgold, Decatur, and Wayne. 7 48 5. The central region shall include the counties 7 49 of Boone, Story, Marshall, Dallas, Polk, Jasper, 7 50 Madison, Warren, and Marion. 8 1 Sec. . NEW SECTION. 15G.106 GOALS – 8 2 PERFORMANCE MEASURES. 8 3 1. In performing the duties provided in this 8 4 chapter, chapter 15, and chapter 15E, the grow Iowa 8 5 values board, the due diligence committee, the 8 6 economic development marketing board, the grow Iowa 8 7 values review commission, and the department shall 8 8 achieve the goals of expanding and stimulating the 8 9 state economy, increasing the wealth of Iowans, and 8 10 increasing the population of the state. For purposes 8 11 of this section, "upper midwest region" includes the 8 12 states of Iowa, Kansas, Minnesota, Missouri, Nebraska, 8 13 North Dakota, and South Dakota. 8 14 2. Goal achievement shall be examined on a 8 15 regional basis using the grow Iowa values geographic 8 16 regions on a statewide basis. Family farm performance 8 17 indicators shall be calculated separately. The 8 18 performance of the grow Iowa values geographic regions 8 19 shall be compared to the performance of the state, the 8 20 upper midwest region, and the United States. The 8 21 baseline year shall be the calendar year 2002. In 8 22 each grow Iowa values geographic region, the goal 8 23 shall be to increase the baseline performance measure 8 24 of Iowa's gross state product at a rate equal to or 8 25 greater than the national economy. 8 26 3. a. In determining whether the goal of 8 27 expanding and stimulating the state economy has been 8 28 met, and using the calendar year 2002 as a baseline, 8 29 performance measures shall be considered, including 8 30 but not limited to the following, on a statewide basis 8 31 or of those businesses that receive moneys originating 8 32 from the grow Iowa values fund, as appropriate: 8 33 (1) A net increase in a business's supplier 8 34 network. 8 35 (2) A net increase in business start-ups. 8 36 (3) A net increase in business expansion. 8 37 (4) A net increase in business modernization. 8 38 (5) A net increase in attracting new businesses to 8 39 the state. 8 40 (6) A net increase in business retention. 8 41 (7) A net increase in job creation and retention. 8 42 (8) A decrease in Iowa of the ratio of the 8 43 government employment as a percentage share of the 8 44 total employment in Iowa at a rate at least equal to 8 45 the ratio of the upper midwest region. 8 46 b. By December 15 of each year, the department 8 47 shall submit a report to the grow Iowa values review 8 48 commission and the grow Iowa values board that 8 49 identifies information pertinent to the performance 8 50 measures in paragraph "a", subparagraphs (3), (4), and 9 1 (6), that the department gains through interviews with 9 2 businesses in the state that close all or a portion of 9 3 operations in the state. By December 15 of each year, 9 4 based on the same interviews, the department shall 9 5 submit a report to the general assembly providing 9 6 suggested amendments to the Code of Iowa and the Iowa 9 7 administrative code designed to stimulate and expand 9 8 the state's economy. 9 9 c. By December 15 of each year the department 9 10 shall submit a report to the grow Iowa values review 9 11 commission and the grow Iowa values board that 9 12 identifies prospective lost business development 9 13 opportunities information pertinent to the performance 9 14 measures in paragraph "a", subparagraphs (2) and (5), 9 15 which indicate that the state has not been successful 9 16 in the performance measures in paragraph "a", 9 17 subparagraphs (2) and (5). 9 18 d. For purposes of the performance measure in 9 19 paragraph "a", subparagraph (7), the department of 9 20 economic development, in consultation with the 9 21 department of workforce development and the auditor of 9 22 state, shall determine average annual job creation and 9 23 retention rates based on the ten years prior to 2003, 9 24 for the state and the upper midwest region. During 9 25 the fiscal years beginning July 1, 2003, July 1, 2004, 9 26 and July 1, 2005, the department of economic 9 27 development shall report the job creation and 9 28 retention rate of those businesses that receive moneys 9 29 originating from the grow Iowa values fund and the job 9 30 creation and retention rate of those businesses that 9 31 do not receive moneys originating from the grow Iowa 9 32 values fund. The ten-year average annual job creation 9 33 and retention rate shall be compared to the job 9 34 creation and retention rates determined under this 9 35 paragraph for the fiscal years beginning July 1, 2003, 9 36 July 1, 2004, and July 1, 2005. The department of 9 37 economic development shall assist the department of 9 38 workforce development in maintaining detailed 9 39 employment statistics on businesses that receive 9 40 moneys originating from the grow Iowa values fund, on 9 41 businesses that do not receive moneys originating from 9 42 the grow Iowa values fund, and on industries in Iowa 9 43 that those businesses represent. The auditor of state 9 44 shall audit the reliability and validity of the 9 45 statistics compiled pursuant to this paragraph. 9 46 4. In determining whether the goal of increasing 9 47 the wealth of Iowans has been met, the following 9 48 earning performance measures shall be considered: 9 49 a. The per capita personal income in Iowa shall 9 50 equal or exceed the average per capita personal income 10 1 for the upper midwest region. 10 2 b. The average earnings per job in Iowa shall 10 3 equal or exceed the average earnings per job in the 10 4 upper midwest region. 10 5 c. The average manufacturing earnings per employee 10 6 in Iowa shall equal or exceed the average 10 7 manufacturing earnings per employee in the upper 10 8 midwest region. 10 9 d. The average service earnings per employee in 10 10 Iowa shall equal or exceed the average service 10 11 earnings per employee in the upper midwest region. 10 12 e. The average earnings per employee in the 10 13 financial, insurance, and real estate industries in 10 14 Iowa shall equal or exceed the average earnings per 10 15 employee in the financial, insurance, and real estate 10 16 industries in the upper midwest region. 10 17 5. In determining whether the goal of increasing 10 18 the population of the state has been met, the 10 19 following performance measures shall be considered: 10 20 a. Using the calendar year 2002 as a baseline 10 21 year, a net increase in the retention of Iowa high 10 22 school graduates that are employed in the Iowa 10 23 workforce following a higher education degree. 10 24 b. The increase in higher education graduates. 10 25 Sec. . NEW SECTION. 15G.107 GROW IOWA VALUES 10 26 FUND. 10 27 A grow Iowa values fund is created in the state 10 28 treasury under the control of the grow Iowa values 10 29 board consisting of moneys appropriated to the grow 10 30 Iowa values board. Moneys in the fund are not subject 10 31 to section 8.33. Notwithstanding section 12C.7, 10 32 interest or earnings on moneys in the fund shall be 10 33 credited to the fund. The fund shall be administered 10 34 by the grow Iowa values board, which shall make 10 35 expenditures from the fund consistent with this 10 36 chapter and pertinent Acts of the general assembly. 10 37 Any financial assistance provided using moneys from 10 38 the fund may be provided over a period of time of more 10 39 than one year. Payments of interest, repayments of 10 40 moneys loaned pursuant to this chapter, and recaptures 10 41 of grants or loans shall be deposited in the fund. 10 42 Sec. . NEW SECTION. 15G.108 ECONOMIC 10 43 DEVELOPMENT MARKETING BOARD – MARKETING STRATEGIES. 10 44 1. a. An economic development marketing board is 10 45 established consisting of seven members and is located 10 46 for administrative purposes within the department. 10 47 The director of the department shall provide office 10 48 space, staff assistance, and necessary supplies and 10 49 equipment for the board. The director shall budget 10 50 moneys to pay the compensation and expenses of the 11 1 board. In performing its functions, the board is 11 2 performing a public function on behalf of the state 11 3 and is a public instrumentality of the state. 11 4 b. The membership of the board shall consist of 11 5 seven members appointed by the governor, subject to 11 6 confirmation by the senate. Five of the members shall 11 7 have significant demonstrated experience in marketing 11 8 or advertising. Two members of the board shall also 11 9 be members of the grow Iowa values board. 11 10 c. The appointments shall comply with sections 11 11 69.16 and 69.16A. 11 12 d. The chairperson and vice chairperson of the 11 13 board shall be elected by and from the board members. 11 14 In case of the absence or disability of the 11 15 chairperson and vice chairperson, the members of the 11 16 board shall elect a temporary chairperson by a 11 17 majority vote of those members who are present and 11 18 voting. 11 19 e. The members shall be appointed to three-year 11 20 staggered terms and the terms shall commence and end 11 21 as provided by section 69.19. If a vacancy occurs, a 11 22 successor shall be appointed to serve the unexpired 11 23 term. A successor shall be appointed in the same 11 24 manner and subject to the same qualifications as the 11 25 original appointment to serve the unexpired term. 11 26 f. A majority of the board constitutes a quorum. 11 27 2. The board shall administer and implement the 11 28 approval process for marketing strategies provided in 11 29 subsection 3. 11 30 3. The economic development marketing board shall 11 31 accept proposals for marketing strategies for purposes 11 32 of selecting a strategy for the department to 11 33 administer. The marketing strategies shall be 11 34 designed to market Iowa as a lifestyle, increase the 11 35 population of the state, increase the wealth of 11 36 Iowans, and expand and stimulate the state economy. 11 37 The economic development marketing board shall submit 11 38 a recommendation regarding the proposal to the grow 11 39 Iowa values board. In selecting a marketing strategy 11 40 for recommendation, the economic development marketing 11 41 board shall base the selection on the goals and 11 42 performance measures provided in section 15G.106. The 11 43 grow Iowa values board shall either approve or deny 11 44 the recommendation. 11 45 4. The department shall implement and administer 11 46 the marketing strategy approved by the grow Iowa 11 47 values board as provided in subsection 3. The 11 48 department shall provide the economic development 11 49 marketing board with assistance in implementing 11 50 administrative functions of the board and provide 12 1 technical assistance to the board. 12 2 5. The members of the board are entitled to 12 3 receive reimbursement for actual expenses incurred 12 4 while engaged in the performance of official duties. 12 5 A board member may also be eligible to receive 12 6 compensation as provided in section 7E.6. 12 7 Sec. . NEW SECTION. 15G.109 FUTURE 12 8 CONSIDERATION. 12 9 Not later than February 1, 2007, the legislative 12 10 services agency shall prepare and deliver to the 12 11 secretary of the senate and the chief clerk of the 12 12 house of representatives identical bills that repeal 12 13 the provisions of this chapter. It is the intent of 12 14 this section that the general assembly shall bring the 12 15 bill to a vote in either the senate or the house of 12 16 representatives expeditiously. It is further the 12 17 intent of this chapter that if the bill is approved by 12 18 the first house in which it is considered, it shall 12 19 expeditiously be brought to a vote in the second 12 20 house. 12 21 DIVISION __ 12 22 VALUE-ADDED AGRICULTURAL PRODUCTS AND PROCESSES 12 23 FINANCIAL ASSISTANCE PROGRAM 12 24 Sec. . Section 15E.111, subsection 1, Code 12 25 2003, is amended to read as follows: 12 26 1. a. The department shall establish a value- 12 27 added agricultural products and processes financial 12 28 assistance program. The department shall consult with 12 29the Iowa corn growers association and the Iowa soybean12 30associationIowa commodity groups. The purpose of the 12 31 program is to encourage the increased utilization of 12 32 agricultural commodities produced in this state. The 12 33 program shall assist in efforts to revitalize rural 12 34 regions of this state, by committing resources to 12 35 provide financial assistance to new or existing value- 12 36 added production facilities. The department of 12 37 economic development may consult with other state 12 38 agencies regarding any possible future environmental, 12 39 health, or safety issues linked to technology related 12 40 to the biotechnology industry. In awarding financial 12 41 assistance, the department shall prefer producer- 12 42 owned, value-added businesses and public and private 12 43 joint ventures involving an institution of higher 12 44 learning under the control of the state board of 12 45 regents or a private college or university acquiring 12 46 assets, research facilities, and leveraging moneys in 12 47 a manner that meets the goals of the grow Iowa values 12 48 fund and shall commit resources to assist the 12 49 following: 12 50a.(1) Facilities which are involved in the 13 1 development of new innovative products and processes 13 2 related to agriculture. The facility must do either 13 3 of the following: produce a good derived from an 13 4 agricultural commodity, if the good is not commonly 13 5 produced from an agricultural commodity; or use a 13 6 process to produce a good derived from an agricultural 13 7 process, if the process is not commonly used to 13 8 produce the good. 13 9b.(2) Renewable fuel production facilities. As 13 10 used in this section, "renewable fuel" means an energy 13 11 source which is derived from an organic compound 13 12 capable of powering machinery, including an engine or 13 13 power plant. 13 14 (3) Agricultural business facilities in the 13 15 agricultural biotechnology industry, agricultural 13 16 biomass industry, and alternative energy industry. 13 17 For purposes of this subsection: 13 18 (a) "Agricultural biomass industry" means 13 19 businesses that utilize agricultural commodity crops, 13 20 agricultural by-products, or animal feedstock in the 13 21 production of chemicals, protein products, or other 13 22 high-value products. 13 23 (b) "Agricultural biotechnology industry" means 13 24 businesses that utilize scientifically enhanced plants 13 25 or animals that can be raised by producers and used in 13 26 the production of high-value products. 13 27 (c) "Alternative energy industry" includes 13 28 businesses involved in the production of ethanol, 13 29 including gasoline with a mixture of seventy percent 13 30 or more ethanol, biodiesel, biomass, hydrogen, or in 13 31 the production of wind energy. 13 32 (4) Facilities that add value to Iowa agricultural 13 33 commodities through further processing and development 13 34 of organic products and emerging markets. 13 35 (5) Producer-owned, value-added businesses, 13 36 education of producers and management boards in value- 13 37 added businesses, and other activities that would 13 38 support the infrastructure in the development of 13 39 value-added agriculture. Public and private joint 13 40 ventures involving an institution of higher learning 13 41 under the control of the state board of regents or a 13 42 private college or university to acquire assets, 13 43 research facilities, and leverage moneys in a manner 13 44 that meets the goals of the grow Iowa values fund. 13 45 For purposes of this subsection, "producer-owned, 13 46 valued-added business" means a person who holds an 13 47 equity interest in the agricultural business and is 13 48 personally involved in the production of crops or 13 49 livestock on a regular, continuous, and substantial 13 50 basis. 14 1 b. Financial assistance awarded under this section 14 2 may be in the form of a loan, loan guarantee, grant, 14 3 production incentive payment, or a combination of 14 4 financial assistance. The department shall not award 14 5 more than twenty-five percent of the amount allocated 14 6 to the value-added agricultural products and processes 14 7 financial assistance fund during any fiscal year to 14 8 support a single person. The department may finance 14 9 any size of facility. However, the departmentshall14 10 may reserve up to fifty percent of the total amount 14 11 allocated to the fund, for purposes of assisting 14 12 persons requiringonefive hundred thousand dollars or 14 13 less in financial assistance. The amount shall be 14 14 reserved until the end of the third quarter of the 14 15 fiscal year. The department shall not provide 14 16 financial assistance to support a value-added 14 17 production facility if the facility or a person owning 14 18 a controlling interest in the facility has 14 19 demonstrated a continuous and flagrant disregard for 14 20 the health and safety of its employees or the quality 14 21 of the environment. Evidence of such disregard shall 14 22 include a history of serious or uncorrected violations 14 23 of state or federal law protecting occupational health 14 24 and safety or the environment, including but not 14 25 limited to serious or uncorrected violations of 14 26 occupational safety and health standards enforced by 14 27 the division of labor services of the department of 14 28 workforce development pursuant to chapter 84A, or 14 29 rules enforced by the department of natural resources 14 30 pursuant to chapter 455B or 459, subchapters II and 14 31 III. 14 32 DIVISION __ 14 33 ENDOW IOWA GRANTS 14 34 Sec. . NEW SECTION. 15E.301 SHORT TITLE. 14 35 This division shall be known as and may be cited as 14 36 the "Endow Iowa Program Act". 14 37 Sec. . NEW SECTION. 15E.302 PURPOSE. 14 38 The purpose of this division is to enhance the 14 39 quality of life for citizens of this state through 14 40 increased philanthropic activity by providing capital 14 41 to new and existing citizen groups of this state 14 42 organized to establish endowment funds that will 14 43 address community needs. The purpose of this division 14 44 is also to encourage individuals, businesses, and 14 45 organizations to invest in community foundations. 14 46 Sec. . NEW SECTION. 15E.303 DEFINITIONS. 14 47 As used in this division, unless the context 14 48 otherwise requires: 14 49 1. "Board" means the governing board of the lead 14 50 philanthropic entity identified by the department 15 1 pursuant to section 15E.304. 15 2 2. "Business" means a business operating within 15 3 the state and includes individuals operating a sole 15 4 proprietorship or having rental, royalty, or farm 15 5 income in this state and includes a consortium of 15 6 businesses. 15 7 3. "Community affiliate organization" means a 15 8 group of five or more community leaders or advocates 15 9 organized for the purpose of increasing philanthropic 15 10 activity in an identified community or geographic area 15 11 in this state with the intention of establishing a 15 12 community affiliate endowment fund. 15 13 4. "Endowment gift" means an irrevocable 15 14 contribution to a permanent endowment held by a 15 15 qualified community foundation. 15 16 5. "Lead philanthropic entity" means the entity 15 17 identified by the department pursuant to section 15 18 15E.304. 15 19 6. "Qualified community foundation" means a 15 20 community foundation organized or operating in this 15 21 state that meets or exceeds the national standards 15 22 established by the national council on foundations. 15 23 Sec. . NEW SECTION. 15E.304 ENDOW IOWA 15 24 GRANTS. 15 25 1. The department shall identify a lead 15 26 philanthropic entity for purposes of encouraging the 15 27 development of qualified community foundations in this 15 28 state. A lead philanthropic entity shall meet all of 15 29 the following qualifications: 15 30 a. The entity shall be a nonprofit entity which is 15 31 exempt from federal income taxation pursuant to 15 32 section 501(c)(3) of the Internal Revenue Code. 15 33 b. The entity shall be a statewide organization 15 34 with membership consisting of organizations, such as 15 35 community, corporate, and private foundations, whose 15 36 principal function is the making of grants within the 15 37 state of Iowa. 15 38 c. The entity shall have a minimum of forty 15 39 members and that membership shall include qualified 15 40 community foundations. 15 41 2. A lead philanthropic entity may receive a grant 15 42 from the department. The board shall use the grant 15 43 moneys to award endow Iowa grants to new and existing 15 44 qualified community foundations and to community 15 45 affiliate organizations that do all of the following: 15 46 a. Provide the board with all information required 15 47 by the board. 15 48 b. Demonstrate a dollar-for-dollar funding match 15 49 in a form approved by the board. 15 50 c. Identify a qualified community foundation to 16 1 hold all funds. A qualified community foundation 16 2 shall not be required to meet this requirement. 16 3 d. Provide a plan to the board demonstrating the 16 4 method for distributing grant moneys received from the 16 5 board to organizations within the community or 16 6 geographic area as defined by the qualified community 16 7 foundation or the community affiliate organization. 16 8 3. Endow Iowa grants awarded to new and existing 16 9 qualified community foundations and to community 16 10 affiliate organizations shall not exceed twenty-five 16 11 thousand dollars per foundation or organization unless 16 12 a foundation or organization demonstrates a multiple 16 13 county or regional approach. Endow Iowa grants may be 16 14 awarded on an annual basis with not more than three 16 15 grants going to one county in a fiscal year. 16 16 4. In ranking applications for grants, the board 16 17 shall consider a variety of factors including the 16 18 following: 16 19 a. The demonstrated need for financial assistance. 16 20 b. The potential for future philanthropic activity 16 21 in the area represented by or being considered for 16 22 assistance. 16 23 c. The proportion of the funding match being 16 24 provided. 16 25 d. For community affiliate organizations, the 16 26 demonstrated need for the creation of a community 16 27 affiliate endowment fund in the applicant's geographic 16 28 area. 16 29 e. The identification of community needs and the 16 30 manner in which additional funding will address those 16 31 needs. 16 32 f. The geographic diversity of awards. 16 33 5. Of any moneys received by a lead philanthropic 16 34 entity from the state, not more than five percent of 16 35 such moneys shall be used by the entity for 16 36 administrative purposes. 16 37 Sec. . NEW SECTION. 15E.306 REPORTS – 16 38 AUDITS. 16 39 By January 31 of each year, the lead philanthropic 16 40 entity, in cooperation with the department, shall 16 41 publish an annual report of the activities conducted 16 42 pursuant to this division during the previous calendar 16 43 year and shall submit the report to the governor and 16 44 the general assembly. The annual report shall include 16 45 a listing of endowment funds and the amount of tax 16 46 credits authorized by the department. 16 47 Sec. . EFFECTIVE AND RETROACTIVE APPLICABILITY 16 48 DATES. This division of this Act, being deemed of 16 49 immediate importance, takes effect upon enactment and 16 50 is retroactively applicable to January 1, 2003, for 17 1 tax years beginning on or after that date. 17 2 DIVISION __ 17 3 COMMERCIALIZATION OF RESEARCH ISSUES 17 4 Sec. . Section 262.9, Code 2003, is amended by 17 5 adding the following new subsection: 17 6 NEW SUBSECTION. 29. By January 15 of each year, 17 7 submit a report to the governor, through the director 17 8 of technology in the office of the governor, and the 17 9 general assembly containing information from the 17 10 previous calendar year regarding all of the following: 17 11 a. Patents secured or applied for by each 17 12 university under the control of the board delineated 17 13 by university and by faculty member and staff member 17 14 responsible for the research or activity that resulted 17 15 in the patent. In the initial report filed by January 17 16 15, 2004, the board shall include an inventory of 17 17 patent portfolios with details concerning which 17 18 patents are creating financial benefit and the amount 17 19 of financial benefit and which patents are not 17 20 creating financial benefit and the amount invested in 17 21 those patents. 17 22 b. Research grants secured by each university 17 23 under the control of the board from both public and 17 24 private sources delineated by university and by 17 25 faculty member and staff member. The board shall also 17 26 include the same information for grant applications 17 27 that are denied. 17 28 c. The number of faculty members and staff members 17 29 at each university under the control of the board 17 30 involved in a start-up company. 17 31 d. The number of grant applications for research 17 32 received by each university under the control of the 17 33 board for start-up companies, the number of 17 34 applications approved, and the number of applications 17 35 denied. 17 36 e. The number of agreements entered into by 17 37 faculty members and staff members at each university 17 38 under the control of the board with foundations 17 39 affiliated with the universities relating to business 17 40 start-ups. 17 41 f. An accounting of the financial gain received by 17 42 each university under the control of the board 17 43 relating to patents sold, royalties received, 17 44 licensing fees, and any other remuneration received by 17 45 the university related to technology transfer. 17 46 g. The number of professional employees at each 17 47 university under the control of the board who assist 17 48 in the transfer of technology and research to 17 49 commercial application. 17 50 Sec. . Section 262B.1, Code 2003, is amended to 18 1 read as follows: 18 2 262B.1 TITLE. 18 3 This chapter shall be known and may be cited as the 18 4"University-Based Research and Economic Development18 5 "Commercialization of Research for Iowa Act". 18 6 Sec. . Section 262B.2, Code 2003, is amended by 18 7 striking the section and inserting in lieu thereof the 18 8 following: 18 9 262B.2 LEGISLATIVE INTENT. 18 10 It is the intent of the general assembly that the 18 11 three universities under the control of the state 18 12 board of regents have as part of their mission the use 18 13 of their universities' expertise to expand and 18 14 stimulate economic growth across the state. This 18 15 activity may be accomplished through a wide variety of 18 16 partnerships, public and private joint ventures, and 18 17 cooperative endeavors, primarily in the area of high 18 18 technology, and may result in investments by the 18 19 private sector for commercialization of the 18 20 technology. It is imperative that the investments and 18 21 job creation be in Iowa, but need not be in the 18 22 proximity of the universities. The purpose is to 18 23 expand and stimulate Iowa's economy, increase the 18 24 wealth of Iowans, and increase the population of Iowa, 18 25 which may be accomplished through research conducted 18 26 within the state that will competitively position Iowa 18 27 on an economic basis with other states and create 18 28 high-wage, high-growth employers and jobs. It is also 18 29 the intent of the general assembly that real or 18 30 virtual research parks will be established and 18 31 maintained by the universities in close enough 18 32 proximity to the ventures that cooperation between the 18 33 academic, research, and commercialization phases will 18 34 be encouraged. It is the intent of the general 18 35 assembly that satellites of the research parks will 18 36 expand and stimulate economic growth in other areas of 18 37 the state. 18 38 Sec. . Section 262B.3, Code 2003, is amended to 18 39 read as follows: 18 40 262B.3ESTABLISHMENT OF CONSORTIUMDUTIES AND 18 41 RESPONSIBILITIES. 18 42 1. The state board of regentsor the universities18 43under its jurisdiction, as part of its mission and 18 44 strategic plan, shall establishconsortiumsmechanisms 18 45 for the purpose of carrying out the intent of this 18 46 chapter.The majority of consortium members shall be18 47from the university community and the balance of18 48members shall be from private industry. The members18 49of the consortium shall be appointed by the president18 50of the convening university and will serve at the19 1pleasure of the president.In addition to other board 19 2 initiatives, the board shall work with the department 19 3 of economic development, other state agencies, and the 19 4 private sector to facilitate the commercialization of 19 5 research. 19 6 2. Activities to implement this chapter may 19 7 include: 19 8 a. Developing strategies to market university 19 9 research for commercialization in Iowa. 19 10 b. Matching university resources with the needs of 19 11 existing Iowa firms or start-up opportunities. 19 12 c. Evaluating university research for 19 13 commercialization potential, where relevant. 19 14 d. Developing a plan to improve private sector 19 15 access to the university licenses and patent 19 16 information and the transfer of technology from the 19 17 university to the private sector. 19 18 e. Disseminating information on research 19 19 activities of the university. 19 20 f. Identifying research needs of existing Iowa 19 21 businesses and recommending ways in which the 19 22 universities can meet these needs. 19 23 g. Linking research and instruction activities to 19 24 economic development. 19 25 h. Reviewing and monitoring activities related to 19 26 technology transfer. 19 27 i. Coordinating activities to facilitate a focus 19 28 on research in the state's targeted industry clusters. 19 29 j. Surveying of similar activities in other states 19 30 and at other universities. 19 31 k. Establishing a single point of contact to 19 32 facilitate commercialization of research. 19 33 Sec. . Section 262B.5, Code 2003, is amended to 19 34 read as follows: 19 35 262B.5REGENTS AND DEPARTMENT OF ECONOMIC19 36DEVELOPMENTREPORTING. 19 37The state board of regents and the Iowa department19 38of economic development shall enter into an agreement19 39under chapter 28E to coordinate and facilitate the19 40activities of the consortiums.The state board of 19 41 regentsandwith input from the Iowa department of 19 42 economic development shall report annually to the 19 43 governor and the general assembly concerning the 19 44 activitiesof the consortiumsconducted pursuant to 19 45 this chapter. 19 46 Sec. . NEW SECTION. 262B.6 DIRECTOR OF 19 47 TECHNOLOGY – TECHNOLOGY TRANSFER AGENTS. 19 48 1. The governor shall appoint a director of 19 49 technology to serve within the office of the governor. 19 50 A position is created for a deputy director of 20 1 technology within the office of the governor. The 20 2 director and the deputy director shall be responsible 20 3 for advancing technology transfer and 20 4 commercialization issues in the state and shall 20 5 coordinate the related activities at the institutions 20 6 of higher learning under the control of the state 20 7 board of regents. The director shall have 20 8 demonstrated expertise and experience in the areas of 20 9 business, industry, and academics. 20 10 2. Each institution of higher learning under the 20 11 control of the state board of regents shall designate 20 12 an employee to serve as a technology transfer agent to 20 13 coordinate the activities of the institution with the 20 14 director of technology within the office of the 20 15 governor. 20 16 3. By December 1, 2004, the director shall conduct 20 17 a study and develop recommendations for the 20 18 advancement of technology transfer and 20 19 commercialization issues. The director shall compile 20 20 and submit the recommendations in written form to the 20 21 general assembly by December 1, 2004. The 20 22 recommendations shall include specific and detailed 20 23 proposed amendments to the Code of Iowa necessary to 20 24 advance the proposed recommendations. 20 25 Sec. . Section 262B.4, Code 2003, is repealed. 20 26 DIVISION __ 20 27 IOWA ECONOMIC DEVELOPMENT 20 28 LOAN AND CREDIT GUARANTEE FUND 20 29 Sec. . NEW SECTION. 15E.221 SHORT TITLE. 20 30 This division shall be known and may be cited as 20 31 the "Iowa Economic Development Loan and Credit 20 32 Guarantee Fund Act". 20 33 Sec. . NEW SECTION. 15E.222 LEGISLATIVE 20 34 FINDING – PURPOSES. 20 35 1. The general assembly finds all of the 20 36 following: 20 37 a. That small and medium-sized businesses, in 20 38 general, and certain targeted industry businesses and 20 39 other qualified businesses, in particular, may not 20 40 qualify for conventional financing. 20 41 b. That the limited availability of credit for 20 42 export transactions limits the ability of small and 20 43 medium-sized businesses in this state to compete in 20 44 international markets. 20 45 c. That, to enhance competitiveness and foster 20 46 economic development, this state must focus on growth 20 47 in certain specific targeted industry businesses and 20 48 other qualified businesses, especially during a time 20 49 of war. 20 50 d. That the challenge for the public economic 21 1 sector is to create an atmosphere conducive to 21 2 economic growth, in conjunction with financial 21 3 institutions in the private sector, which fill the 21 4 gaps in credit availability and export finance, and 21 5 that allow the private sector to identify the lending 21 6 opportunities and foster decision making at the local 21 7 level. 21 8 2. The general assembly declares the purposes of 21 9 this division to be all of the following: 21 10 a. To create incentives and assistance to increase 21 11 the flow of private capital to targeted industry 21 12 businesses and other qualified businesses. 21 13 b. To promote industrial modernization and 21 14 technology adoption. 21 15 c. To encourage the retention and creation of 21 16 jobs. 21 17 d. To encourage the export of goods and services 21 18 sold by Iowa businesses in national and international 21 19 markets. 21 20 Sec. . NEW SECTION. 15E.223 DEFINITIONS. 21 21 As used in this division, unless the context 21 22 otherwise requires: 21 23 1. "Financial institution" means an institution 21 24 listed in section 422.61, subsection 1, or such other 21 25 financial institution as defined by the department for 21 26 purposes of this division. 21 27 2. "Program" means the loan and credit guarantee 21 28 program established in this division. 21 29 3. "Qualified business" means an existing or 21 30 proposed business entity with an annual average number 21 31 of employees not exceeding two hundred employees. 21 32 "Qualified business" does not include businesses 21 33 engaged primarily in retail sales, real estate, or the 21 34 provision of health care or other professional 21 35 services. "Qualified business" includes professional 21 36 services businesses that provide services to targeted 21 37 industry businesses or other entities. 21 38 4. "Targeted industry business" means an existing 21 39 or proposed business entity, including an emerging 21 40 small business or qualified business which is operated 21 41 for profit and which has a primary business purpose of 21 42 doing business in at least one of the targeted 21 43 industries designated by the department which include 21 44 life sciences, software and information technology, 21 45 advanced manufacturing, value-added agriculture, and 21 46 any other industry designated as a targeted industry 21 47 by the loan and credit guarantee advisory board. 21 48 Sec. . NEW SECTION. 15E.224 LOAN AND CREDIT 21 49 GUARANTEE PROGRAM. 21 50 1. The department shall, with the advice of the 22 1 loan and credit guarantee advisory board, establish 22 2 and administer a loan and credit guarantee program. 22 3 The department, pursuant to agreements with financial 22 4 institutions, shall provide loan and credit 22 5 guarantees, or other forms of credit guarantees for 22 6 qualified businesses and targeted industry businesses 22 7 for eligible project costs. A loan or credit 22 8 guarantee provided under the program may stand alone 22 9 or may be used in conjunction with or to enhance other 22 10 loans or credit guarantees, offered by private, state, 22 11 or federal entities. The department may purchase 22 12 insurance to cover defaulted loans meeting the 22 13 requirements of the program. However, the department 22 14 shall not in any manner directly or indirectly pledge 22 15 the credit of the state. Eligible project costs 22 16 include expenditures for productive equipment and 22 17 machinery, working capital for operations and export 22 18 transactions, research and development, marketing, and 22 19 such other costs as the department may so designate. 22 20 2. A loan or credit guarantee or other form of 22 21 credit guarantee provided under the program to a 22 22 participating financial institution for a single 22 23 qualified business or targeted industry business shall 22 24 not exceed one million dollars in value. Loan or 22 25 credit guarantees or other forms of credit guarantees 22 26 provided under the program to more than one 22 27 participating financial institution for a single 22 28 qualified business or targeted industry business shall 22 29 not exceed ten million dollars in value. 22 30 3. In administering the program, the department 22 31 shall consult and cooperate with financial 22 32 institutions in this state and with the loan and 22 33 credit guarantee advisory board. Administrative 22 34 procedures and application procedures, as practicable, 22 35 shall be responsive to the needs of qualified 22 36 businesses, targeted industry businesses, and 22 37 financial institutions, and shall be consistent with 22 38 prudent investment and lending practices and criteria. 22 39 4. Each participating financial institution shall 22 40 identify and underwrite potential lending 22 41 opportunities with qualified businesses and targeted 22 42 industry businesses. Upon a determination by a 22 43 participating financial institution that a qualified 22 44 business or targeted industry business meets the 22 45 underwriting standards of the financial institution, 22 46 subject to the approval of a loan or credit guarantee, 22 47 the financial institution shall submit the 22 48 underwriting information and a loan or credit 22 49 guarantee application to the department. 22 50 5. The department, with the advice of the loan and 23 1 credit guarantee advisory board, shall adopt a loan or 23 2 credit guarantee application procedure for a financial 23 3 institution on behalf of a qualified business or 23 4 targeted industry business. 23 5 6. Upon approval of a loan or credit guarantee, 23 6 the department shall enter into a loan or credit 23 7 guarantee agreement with the participating financial 23 8 institution. The agreement shall specify all of the 23 9 following: 23 10 a. The fee to be charged to the financial 23 11 institution. 23 12 b. The evidence of debt assurance of, and security 23 13 for, the loan or credit guarantee. 23 14 c. A loan or credit guarantee that does not exceed 23 15 fifteen years. 23 16 d. Any other terms and conditions considered 23 17 necessary or desirable by the department. 23 18 7. The department, with the advice of the loan and 23 19 credit guarantee advisory board, may adopt loan and 23 20 credit guarantee application procedures that allow a 23 21 qualified business or targeted industry business to 23 22 apply directly to the department for a preliminary 23 23 guarantee commitment. A preliminary guarantee 23 24 commitment may be issued by the department subject to 23 25 the qualified business or targeted industry business 23 26 securing a commitment for financing from a financial 23 27 institution. The application procedures shall specify 23 28 the process by which a financial institution may 23 29 obtain a final loan and credit guarantee. 23 30 Sec. . NEW SECTION. 15E.225 TERMS – FEES. 23 31 1. When entering into a loan or credit guarantee 23 32 agreement, the department, with the advice of the loan 23 33 and credit guarantee advisory board, shall establish 23 34 fees and other terms for participation in the program 23 35 by qualified businesses and targeted industry 23 36 businesses. 23 37 2. The department, with due regard for the 23 38 possibility of losses and administrative costs and 23 39 with the advice of the loan and credit guarantee 23 40 advisory board, shall set fees and other terms at 23 41 levels sufficient to assure that the program is self- 23 42 financing. 23 43 3. For a preliminary guarantee commitment, the 23 44 department may charge a qualified business or targeted 23 45 industry business a preliminary guarantee commitment 23 46 fee. The application fee shall be in addition to any 23 47 other fees charged by the department under this 23 48 section and shall not exceed one thousand dollars for 23 49 an application. 23 50 Sec. . NEW SECTION. 15E.226 LOAN AND CREDIT 24 1 GUARANTEE ADVISORY BOARD. 24 2 A loan and credit guarantee advisory board is 24 3 established consisting of seven members appointed by 24 4 the governor, subject to confirmation by the senate. 24 5 The advisory board shall provide the department with 24 6 technical advice regarding the administration of the 24 7 program, including the adoption of administrative 24 8 rules pursuant to chapter 17A. The advisory board 24 9 shall review and provide recommendations regarding all 24 10 applications under the program. Members of the 24 11 advisory board are entitled to receive reimbursement 24 12 for actual expenses incurred while engaged in the 24 13 performance of official duties. Advisory board 24 14 members may also be eligible to receive compensation 24 15 as provided in section 7E.6. The director of the 24 16 department shall budget moneys to pay the compensation 24 17 and expenses of the advisory board. The provisions of 24 18 this section relating to the adoption of 24 19 administrative rules shall be construed narrowly. 24 20 DIVISION __ 24 21 ECONOMIC DEVELOPMENT ASSISTANCE AND DATA COLLECTION 24 22 Sec. . NEW SECTION. 15E.118 BUSINESS START-UP 24 23 INFORMATION – INTERNET WEB SITE. 24 24 The department shall provide information through an 24 25 internet web site and a toll-free telephone service to 24 26 assist persons interested in establishing a commercial 24 27 facility or engaging in a commercial activity. The 24 28 information shall include all of the following: 24 29 1. Assistance, information, and guidance for 24 30 start-up businesses. 24 31 2. Information gathered by the department pursuant 24 32 to section 15E.17, subsection 2. 24 33 3. Personal and corporate income tax information. 24 34 4. Information regarding financial assistance and 24 35 incentives available to businesses. 24 36 5. Workforce availability in the state presented 24 37 in a regional format. 24 38 Sec. . NEW SECTION. 15E.119 ECONOMIC 24 39 DEVELOPMENT-RELATED DATA COLLECTION. 24 40 1. The department shall interview any business 24 41 that considered locating in Iowa but decided to locate 24 42 elsewhere. The department shall attempt to determine 24 43 factors that affected the location decision of the 24 44 business. 24 45 2. The department shall interview any business 24 46 that closes major operations in the state or dissolves 24 47 the business's corporate status in an effort to 24 48 identify factors that led to the closure or 24 49 dissolution. 24 50 3. By January 15 of each year, the department 25 1 shall submit a written report to the general assembly 25 2 that summarizes the information collected pursuant to 25 3 this section and provides suggested amendments to the 25 4 Code of Iowa and the Iowa administrative code designed 25 5 to stimulate and expand the state's economy. 25 6 Sec. . INTERNET WEB SITE DEVELOPMENT. In 25 7 developing the internet web site required in section 25 8 15E.118, the department of economic development shall 25 9 examine similar efforts in other states and 25 10 incorporate the best practices. 25 11 DIVISION __ 25 12 CULTURAL AND ENTERTAINMENT DISTRICTS 25 13 Sec. . NEW SECTION. 303.3B CULTURAL AND 25 14 ENTERTAINMENT DISTRICTS. 25 15 1. The department of cultural affairs shall 25 16 establish and administer a cultural and entertainment 25 17 district certification program. The program shall 25 18 encourage the growth of communities through the 25 19 development of areas within a city or county for 25 20 public and private uses related to cultural and 25 21 entertainment purposes. 25 22 2. A city or county may create and designate a 25 23 cultural and entertainment district subject to 25 24 certification by the department of cultural affairs, 25 25 in consultation with the department of economic 25 26 development. A cultural and entertainment district 25 27 shall consist of a geographic area not exceeding one 25 28 square mile in size. A cultural and entertainment 25 29 district certification shall remain in effect for ten 25 30 years following the date of certification. Two or 25 31 more cities or counties may apply jointly for 25 32 certification of a district that extends across a 25 33 common boundary. Through the adoption of 25 34 administrative rules, the department of cultural 25 35 affairs shall develop a certification application for 25 36 use in the certification process. The provisions of 25 37 this subsection relating to the adoption of 25 38 administrative rules shall be construed narrowly. 25 39 3. The department of cultural affairs shall 25 40 encourage development projects and activities located 25 41 in certified cultural and entertainment districts 25 42 through incentives under cultural grant programs 25 43 pursuant to section 303.3, chapter 303A, and any other 25 44 grant programs. 25 45 DIVISION __ 25 46 UNIVERSITY-BASED RESEARCH UTILIZATION PROGRAM 25 47 Sec. . NEW SECTION. 262B.11 UNIVERSITY-BASED 25 48 RESEARCH UTILIZATION PROGRAM. 25 49 1. The department of economic development shall 25 50 establish and administer a university-based research 26 1 utilization program for purposes of encouraging the 26 2 utilization of university-based research, primarily in 26 3 the area of high technology, in new or existing 26 4 businesses. The program shall include the three 26 5 universities under the control of the state board of 26 6 regents and all accredited private universities 26 7 located in the state. 26 8 2. A new or existing business that utilizes a 26 9 technology developed by an employee at a university 26 10 under the control of the state board of regents may 26 11 apply to the department of economic development for 26 12 approval to participate in the university-based 26 13 research utilization program. The department shall 26 14 approve an applicant if the applicant meets all of the 26 15 following criteria: 26 16 a. The applicant utilizes a technology developed 26 17 by an employee at a university under the control of 26 18 the state board of regents, provided that the 26 19 technology has received a patent after the effective 26 20 date of this Act. If the applicant has been in 26 21 existence more than one year prior to applying, the 26 22 applicant shall organize a separate company to utilize 26 23 the technology. For purposes of this section, the 26 24 separate company shall be considered the applicant 26 25 and, if approved, the approved business. 26 26 b. The applicant develops a five-year business 26 27 plan approved by the department. The plan shall 26 28 include information concerning the applicant's Iowa 26 29 employment goals and projected impact on the Iowa 26 30 economy. The department shall only approve plans 26 31 showing sufficient potential impact on Iowa employment 26 32 and economic development. 26 33 c. The applicant meets a minimum-size business 26 34 standard determined by the department. 26 35 d. The applicant provides annual reports to the 26 36 department that include employment statistics for the 26 37 applicant and the total taxable wages paid to Iowa 26 38 employees and reported to the department of revenue 26 39 and finance pursuant to section 422.16. 26 40 3. A business approved under the program and the 26 41 university employee responsible for the development of 26 42 the technology utilized by the approved business shall 26 43 be eligible for a tax credit. The credit shall be 26 44 allowed against the taxes imposed in chapter 422, 26 45 divisions II and III. An individual may claim a tax 26 46 credit under this section of a partnership, limited 26 47 liability company, S corporation, estate, or trust 26 48 electing to have income taxed directly to the 26 49 individual. The amount claimed by the individual 26 50 shall be based upon the pro rata share of the 27 1 individual's earnings from the partnership, limited 27 2 liability company, S corporation, estate, or trust. A 27 3 tax credit shall not be claimed under this subsection 27 4 unless a tax credit certificate issued by the 27 5 department of economic development is attached to the 27 6 taxpayer's tax return for the tax year for which the 27 7 tax credit is claimed. The amount of a tax credit 27 8 allowed under this subsection shall equal the amount 27 9 listed on a tax credit certificate issued by the 27 10 department of economic development pursuant to 27 11 subsection 4. A tax credit certificate shall not be 27 12 transferable. Any tax credit in excess of the 27 13 taxpayer's liability for the tax year may be credited 27 14 to the taxpayer's tax liability for the following five 27 15 years or until depleted, whichever occurs first. A 27 16 tax credit shall not be carried back to a tax year 27 17 prior to the tax year in which the taxpayer redeems 27 18 the tax credit. 27 19 4. For the five tax years following the tax year 27 20 in which a business is approved under the program, the 27 21 department of revenue and finance shall provide the 27 22 department of economic development with information 27 23 required by the department of economic development 27 24 from each tax return filed by the approved business. 27 25 Upon receiving the tax return-related information, the 27 26 department of economic development shall do all of the 27 27 following: 27 28 a. Review the information provided by the 27 29 department of revenue and finance pursuant to this 27 30 subsection and the annual report submitted by the 27 31 applicant pursuant to subsection 2, paragraph "d". If 27 32 the department determines that the business activities 27 33 of the applicant are not providing the benefits to 27 34 Iowa employment and economic development projected in 27 35 the applicant's approved five-year business plan, the 27 36 department shall not issue tax credit certificates for 27 37 that year to the applicant or university employee and 27 38 shall determine any related university share to be 27 39 equal to zero for that year. 27 40 b. Effective for the fiscal year beginning July 1, 27 41 2004, and for subsequent fiscal years, issue a tax 27 42 credit certificate to the approved business and the 27 43 university employee responsible for the development of 27 44 the technology utilized by the approved business in an 27 45 amount determined pursuant to subsection 5. A tax 27 46 credit certificate shall contain the taxpayer's name, 27 47 address, tax identification number, the amount of the 27 48 tax credit, and other information required by the 27 49 department of revenue and finance. 27 50 c. (1) Determine the university share which is 28 1 equal to the value of thirty percent of the tax 28 2 liability of the approved business for purposes of 28 3 making an appropriation pursuant to section 262B.12, 28 4 if enacted by 2003 Iowa Acts, House File 683 or 28 5 another Act, to the university where the technology 28 6 utilized by the approved business was developed. A 28 7 university share shall not exceed two hundred twenty- 28 8 five thousand dollars per year per technology 28 9 utilized. For each technology utilized, the aggregate 28 10 university share over a five-year period shall not 28 11 exceed six hundred thousand dollars. 28 12 (2) The department shall maintain records for each 28 13 university during each fiscal year regarding the 28 14 university share each university is entitled to 28 15 receive through the appropriation in section 262B.12, 28 16 if enacted by 2003 Iowa Acts, House File 683 or 28 17 another Act. A university shall be entitled to 28 18 receive the total university share for that particular 28 19 university during the previous fiscal year. 28 20 d. For the fiscal year beginning July 1, 2004, not 28 21 more than two million dollars worth of certificates 28 22 shall be issued pursuant to paragraph "b". For the 28 23 fiscal year beginning July 1, 2005, and every fiscal 28 24 year thereafter, not more than ten million dollars 28 25 worth of certificates shall be issued pursuant to 28 26 paragraph "b". 28 27 5. The tax credit certificates issued by the 28 28 department for each of the five years following the 28 29 tax year in which the business is approved under the 28 30 program shall be for the following amounts: 28 31 a. For the approved business, the value of the tax 28 32 credit certificate shall equal thirty percent of the 28 33 tax liability of the approved business. The value of 28 34 a certificate issued to an approved business shall not 28 35 exceed two hundred twenty-five thousand dollars. The 28 36 total aggregate value of certificates issued over a 28 37 five-year period to an approved business shall not 28 38 exceed six hundred thousand dollars. 28 39 b. For the university employee responsible for the 28 40 development of the technology utilized by the approved 28 41 business, the value of the tax credit certificate 28 42 shall equal ten percent of the tax liability of the 28 43 approved business. If more than one employee is 28 44 responsible for the development of the technology, the 28 45 value equal to ten percent of the tax liability of the 28 46 approved business shall be divided equally and 28 47 individual tax credit certificates shall be issued to 28 48 each employee responsible for the development of the 28 49 technology. Each year, the total value of a 28 50 certificate or certificates issued for a utilized 29 1 technology shall not exceed seventy-five thousand 29 2 dollars. For each technology utilized, the total 29 3 aggregate value of certificates issued over a five- 29 4 year period to the university employee responsible for 29 5 the development of the technology shall not exceed two 29 6 hundred thousand dollars. 29 7 6. The department of economic development shall 29 8 notify the department of revenue and finance when a 29 9 tax credit certificate is issued pursuant to 29 10 subsection 4. The notification shall include the name 29 11 and tax identification number appearing on any tax 29 12 credit certificate. 29 13 Sec. . NEW SECTION. 422.11H UNIVERSITY-BASED 29 14 RESEARCH UTILIZATION PROGRAM TAX CREDIT. 29 15 The taxes imposed under this division, less the 29 16 credits allowed under sections 422.12 and 422.12B, 29 17 shall be reduced by a university-based research 29 18 utilization program tax credit authorized pursuant to 29 19 section 262B.11. 29 20 Sec. . Section 422.33, Code 2003, is amended by 29 21 adding the following new subsection: 29 22 NEW SUBSECTION. 14. The taxes imposed under this 29 23 division shall be reduced by a university-based 29 24 research utilization program tax credit authorized 29 25 pursuant to section 262B.11." 29 26 #8. Page 65, by inserting after line 15 the 29 27 following: 29 28 "Sec. . Section 625A.9, Code 2003, is amended 29 29 to read as follows: 29 30 625A.9 EXECUTION ON UNSTAYED PART OF JUDGMENT – 29 31 SUPERSEDEAS BOND WAIVED. 29 32 1. The taking of the appeal from part of a 29 33 judgment or order, and the filing of a bondas above29 34directed, does not stay execution as to that part of 29 35 the judgment or order not appealed from. 29 36 2. If the judgment or order appealed from is for 29 37 money, such bond shall not exceed one hundred ten 29 38 percent of the amount of the money judgment. 29 39 3. Upon motion and for good cause shown, the 29 40 district court may stay all proceedings under the 29 41 order or judgment being appealed and permit the state 29 42 or any of its political subdivisions to appeal a 29 43 judgment or order to the supreme court without the 29 44 filing of a supersedeas bond." 29 45 #9. By striking page 66, line 46 through page 67, 29 46 line 16. 29 47 #10. Page 67, by inserting after line 44 the 29 48 following: 29 49 "Sec. ___. Section 86.12, Code 2003, is amended to 29 50 read as follows: 30 1 86.12 FAILURE TO REPORT. 30 2 The workers' compensation commissioner may require 30 3 any employer to supply the information required by 30 4 section 86.10 or to file a report required by section 30 5 86.11 or 86.13 or by agency rule, by written demand 30 6 sent to the employer's last known address. Upon 30 7 failure to supply such information or file such report 30 8 withintwentythirty days, the employer may be ordered 30 9 to appear and show cause why the employer should not 30 10 be subject tocivil penaltyassessment of onehundred30 11 thousand dollars for each occurrence. Upon such 30 12 hearing, the workers' compensation commissioner shall 30 13 enter a finding of fact and may enter an order 30 14 requiring suchpenaltyassessment to be paid into the 30 15 second injury fund created by sections 85.63 to 85.69. 30 16 In the event thecivil penalty assessedassessment is 30 17 not voluntarily paid within thirty days the workers' 30 18 compensation commissioner may file a certified copy of 30 19 such finding and order with the clerk of the court for 30 20 the district in which the employer maintains a place 30 21 of business. If the employer maintains no place of 30 22 business in this state service shall be made as 30 23 provided in chapter 85 for nonresident employers. In 30 24 such case the finding and order may be filed in any 30 25 court of competent jurisdiction within this state. 30 26 The workers' compensation commissioner may 30 27 thereafter petition the court for entry of judgment 30 28 upon such order, serving notice of such petition on 30 29 the employer and any other person in default. If the 30 30 court finds the order valid, the court shall enter 30 31 judgment against the person or persons in default for 30 32 the amount due under the order. No fees shall be 30 33 required for the filing of the order or for the 30 34 petition for judgment, or for the entry of judgment or 30 35 for any enforcement procedure thereupon. No 30 36 supersedeas shall be granted by any court to a 30 37 judgment entered under this section. 30 38 When a report is required under section 86.11 or 30 39 86.13 or by agency rule, andthat report has been30 40submitted tothe employer's insurance carrierand no30 41report of injury has been filed with the workers'30 42compensation commissionerpossesses the information 30 43 necessary to file the report, the insurance carrier 30 44 shall be responsible for filing the reportof injury30 45 in the same manner and to the same extent as an 30 46 employer under this section. 30 47 Sec. ___. NEW SECTION. 86.13A COMPLIANCE 30 48 MONITORING AND ENFORCEMENT. 30 49 The workers' compensation commissioner shall 30 50 monitor the rate of compliance of each employer and 31 1 each insurer with the requirement to commence benefit 31 2 payments within the time specified in section 85.30. 31 3 The commissioner shall determine the percentage of 31 4 reported injuries where the statutory standard was met 31 5 and the average number of days that commencement of 31 6 voluntary benefits was delayed for each employer and 31 7 each insurer individually, and for all employers and 31 8 all insurers as separate groups. 31 9 If during any fiscal year commencing after June 30, 31 10 2005, the general business practices of an employer or 31 11 insurer result in the delay of the commencement of 31 12 voluntary weekly compensation payments after the date 31 13 specified in section 85.30 more frequently and for a 31 14 longer number of days than the average number of days 31 15 for the entire group of employers or insurers, the 31 16 commissioner may impose an assessment on the employer 31 17 or insurer payable to the second injury fund created 31 18 in section 85.66. The amount of the assessment shall 31 19 be ten dollars, multiplied by the average number of 31 20 days that weekly compensation payments were delayed 31 21 after the date specified in section 85.30, and 31 22 multiplied by the number of injuries the employer or 31 23 insurer reported during the fiscal year. 31 24 Notwithstanding the foregoing, an assessment shall not 31 25 be imposed if the employer or insurer commenced 31 26 voluntary weekly compensation benefits within the time 31 27 specified in section 85.30 for more than seventy-five 31 28 percent of the injuries reported by the employer or 31 29 insurer. 31 30 The commissioner may waive or reduce an assessment 31 31 under this section if an employer or insurer 31 32 demonstrates to the commissioner that atypical events 31 33 during the fiscal year, including but not limited to a 31 34 small number of cases, made the statistical data for 31 35 that employer or insurer unrepresentative of the 31 36 actual payout practices of the employer or insurer for 31 37 that year." 31 38 #11. Page 71, by striking lines 11 through 23. 31 39 #12. By striking page 72, line 18, through page 31 40 78, line 20. 31 41 #13. Page 78, lines 33 and 34, by striking the 31 42 words "and school infrastructure assistance,". 31 43 #14. By renumbering as necessary. 31 44 31 45 31 46 31 47 CARROLL of Poweshiek 31 48 HF 692.328 80 31 49 sc/cf
Text: H01622 Text: H01624 Text: H01600 - H01699 Text: H Index Bills and Amendments: General Index Bill History: General Index
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