Text: S03396 Text: S03398 Text: S03300 - S03399 Text: S Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 Amend the amendment, S-3391, to House File 692, as 1 2 amended, passed, and reprinted by the House, as 1 3 follows: 1 4 #1. By striking page 39, line 15, through page 64, 1 5 line 43, and inserting the following: 1 6 "DIVISION I 1 7 IOWA VALUES BOARD AND FUND – BONDING 1 8 AUTHORITY 1 9 Sec. . Section 8.57, subsection 5, paragraph e, 1 10 Code 2003, is amended to read as follows: 1 11 e. Notwithstanding provisions to the contrary in 1 12 sections 99D.17 and 99F.11, for the fiscalyearperiod 1 13 beginning July 1,2000, and for each fiscal year1 14thereafter,2003, and ending June 30, 2005, not more 1 15 than a total of sixty million dollars shall be 1 16 deposited in the general fund of the state in any 1 17 fiscal year pursuant to sections 99D.17 and 99F.11; 1 18 for the fiscal period beginning July 1, 2005, and 1 19 ending June 30, 2030, not more than a total of sixty 1 20 million dollars of the moneys directed to be deposited 1 21 in the general fund of the state in a fiscal year 1 22 pursuant to sections 99D.17 and 99F.11 shall be 1 23 deposited in the Iowa values fund created in section 1 24 15G.105 in any fiscal year; and for the fiscal year 1 25 beginning July 1, 2030, and for each fiscal year 1 26 thereafter, not more than a total of sixty million 1 27 dollars shall be deposited in the general fund of the 1 28 state in any fiscal year pursuant to sections 99D.17 1 29 and 99F.11. The next fifteen million dollars of the 1 30 moneys directed to be deposited in the general fund of 1 31 the state in a fiscal year pursuant to sections 99D.17 1 32 and 99F.11 shall be deposited in the vision Iowa fund 1 33 created in section 12.72 for the fiscal year beginning 1 34 July 1, 2000, and for each fiscal year through the 1 35 fiscal year beginning July 1, 2019. The next five 1 36 million dollars of the moneys directed to be deposited 1 37 in the general fund of the state in a fiscal year 1 38 pursuant to sections 99D.17 and 99F.11 shall be 1 39 deposited in the school infrastructure fund created in 1 40 section 12.82 for the fiscal year beginning July 1, 1 41 2000, and for each fiscal year thereafter until the 1 42 principal and interest on all bonds issued by the 1 43 treasurer of state pursuant to section 12.81 are paid, 1 44 as determined by the treasurer of state. The total 1 45 moneys in excess of the moneys deposited in the 1 46 general fund of the state, the Iowa values fund, the 1 47 vision Iowa fund, and the school infrastructure fund 1 48 in a fiscal year shall be deposited in the rebuild 1 49 Iowa infrastructure fund and shall be used as provided 1 50 in this section, notwithstanding section 8.60. 2 1 If the total amount of moneys directed to be 2 2 deposited in the general fund of the state under 2 3 sections 99D.17 and 99F.11 in a fiscal year is less 2 4 than the total amount of moneys directed to be 2 5 deposited in the Iowa values fund, the vision Iowa 2 6 fund, and the school infrastructure fund in the fiscal 2 7 year pursuant to this paragraph "e", the difference 2 8 shall be paid from lottery revenues in the manner 2 9 provided in section 99E.10, subsection 3. 2 10 Sec. . NEW SECTION. 12.91 GENERAL AND 2 11 SPECIFIC BONDING POWERS – IOWA VALUES PROGRAM. 2 12 1. The treasurer of state may issue bonds for the 2 13 purpose of funding the Iowa values fund created in 2 14 section 15G.105. The treasurer of state shall have 2 15 all of the powers which are necessary to issue and 2 16 secure bonds and carry out the purposes of the fund. 2 17 The treasurer of state may issue bonds in principal 2 18 amounts which are necessary to provide sufficient 2 19 funds for the Iowa values fund, the payment of 2 20 interest on the bonds, the establishment of reserves 2 21 to secure the bonds, the costs of issuance of the 2 22 bonds, other expenditures of the treasurer of state 2 23 incident to and necessary or convenient to carry out 2 24 the bond issue for the fund, and all other 2 25 expenditures of the board necessary or convenient to 2 26 administer the fund. The bonds are investment 2 27 securities and negotiable instruments within the 2 28 meaning of and for purposes of the uniform commercial 2 29 code. 2 30 2. Bonds issued under this section are payable 2 31 solely and only out of the moneys, assets, or revenues 2 32 of the Iowa values fund and any bond reserve funds 2 33 established pursuant to section 12.92, all of which 2 34 may be deposited with trustees or depositories in 2 35 accordance with bond or security documents and pledged 2 36 to the payment thereof. Bonds issued under this 2 37 section shall contain on their face a statement that 2 38 the bonds do not constitute an indebtedness of the 2 39 state. The treasurer of state shall not pledge the 2 40 credit or taxing power of this state or any political 2 41 subdivision of the state or make bonds issued pursuant 2 42 to this section payable out of any moneys except those 2 43 in the Iowa values fund. 2 44 3. The proceeds of bonds issued by the treasurer 2 45 of state and not required for immediate disbursement 2 46 may be deposited with a trustee or depository as 2 47 provided in the bond documents and invested or 2 48 reinvested in any investment as directed by the 2 49 treasurer of state and specified in the trust 2 50 indenture, resolution, or other instrument pursuant to 3 1 which the bonds are issued without regard to any 3 2 limitation otherwise provided by law. 3 3 4. The bonds shall be: 3 4 a. In a form, issued in denominations, executed in 3 5 a manner, and payable over terms and with rights of 3 6 redemption, and be subject to the terms, conditions, 3 7 and covenants providing for the payment of the 3 8 principal of, redemption premiums, if any, interest 3 9 which may be fixed or variable during any period the 3 10 bonds are outstanding, and such other terms and 3 11 conditions as prescribed in the trust indenture, 3 12 resolution, or other instrument authorizing their 3 13 issuance. 3 14 b. Negotiable instruments under the laws of the 3 15 state and may be sold at prices, at public or private 3 16 sale, and in a manner, as prescribed by the treasurer 3 17 of state. Chapters 73A, 74, 74A, and 75 do not apply 3 18 to the sale or issuance of the bonds. 3 19 c. Subject to the terms, conditions, and covenants 3 20 providing for the payment of the principal, redemption 3 21 premiums, if any, interest, and other terms, 3 22 conditions, covenants, and protective provisions 3 23 safeguarding payment, not inconsistent with this 3 24 section and as determined by the trust indenture, 3 25 resolution, or other instrument authorizing their 3 26 issuance. 3 27 5. The bonds are securities in which public 3 28 officers and bodies of this state, political 3 29 subdivisions of this state, insurance companies and 3 30 associations and other persons carrying on an 3 31 insurance business, banks, trust companies, savings 3 32 associations, savings and loan associations, and 3 33 investment companies; administrators, guardians, 3 34 executors, trustees, and other fiduciaries; and other 3 35 persons authorized to invest in bonds or other 3 36 obligations of the state, may properly and legally 3 37 invest funds, including capital, in their control or 3 38 belonging to them. 3 39 6. Bonds must be authorized by a trust indenture, 3 40 resolution, or other instrument of the treasurer of 3 41 state. 3 42 7. Neither the resolution, trust indenture, nor 3 43 any other instrument by which a pledge is created 3 44 needs to be recorded or filed under the Iowa uniform 3 45 commercial code to be valid, binding, or effective. 3 46 8. Bonds issued under the provisions of this 3 47 section are declared to be issued for a general public 3 48 and governmental purpose and all bonds issued under 3 49 this section shall be exempt from taxation by the 3 50 state of Iowa and the interest on the bonds shall be 4 1 exempt from the state income tax and the state 4 2 inheritance and estate tax. 4 3 9. Subject to the terms of any bond documents, 4 4 moneys in the Iowa values fund may be expended for 4 5 administration expenses. 4 6 10. The treasurer of state may issue bonds for the 4 7 purpose of refunding any bonds issued pursuant to this 4 8 section then outstanding, including the payment of any 4 9 redemption premiums thereon and any interest accrued 4 10 or to accrue to the date of redemption of the 4 11 outstanding bonds. Until the proceeds of bonds issued 4 12 for the purpose of refunding outstanding bonds are 4 13 applied to the purchase or retirement of outstanding 4 14 bonds or the redemption of outstanding bonds, the 4 15 proceeds may be placed in escrow and be invested and 4 16 reinvested in accordance with the provisions of this 4 17 section. The interest, income, and profits earned or 4 18 realized on an investment may also be applied to the 4 19 payment of the outstanding bonds to be refunded by 4 20 purchase, retirement, or redemption. After the terms 4 21 of the escrow have been fully satisfied and carried 4 22 out, any balance of proceeds and interest earned or 4 23 realized on the investments may be returned to the 4 24 treasurer of state for deposit in the Iowa values fund 4 25 established in section 15G.105. All refunding bonds 4 26 shall be issued and secured and subject to the 4 27 provisions of this chapter in the same manner and to 4 28 the same extent as other bonds issued pursuant to this 4 29 section. 4 30 11. The treasurer of state shall have all of the 4 31 powers which are necessary to issue and secure bonds, 4 32 including but not limited to the power to procure 4 33 insurance, other credit enhancements, and other 4 34 financing arrangements, and to execute instruments and 4 35 contracts and to enter into agreements convenient or 4 36 necessary to facilitate financing arrangements with 4 37 respect to the bonds and to carry out the purposes of 4 38 the fund, including but not limited to such 4 39 arrangements, instruments, contracts, and agreements 4 40 as municipal bond insurance, self-insurance or 4 41 liquidity trusts, accounts, pools or other 4 42 arrangements, liquidity facilities or covenants, 4 43 letters of credit, and interest rate agreements. 4 44 12. For purposes of this section and sections 4 45 12.92 through 12.95, the term "bonds" means bonds, 4 46 notes, and other obligations and financing 4 47 arrangements issued or entered into by the treasurer 4 48 of state and the term "interest rate agreement" means 4 49 an interest rate swap or exchange agreement, an 4 50 agreement establishing an interest rate floor or 5 1 ceiling or both, or any similar agreement. Any such 5 2 agreement may include the option to enter into or 5 3 cancel the agreement or to reverse or extend the 5 4 agreement. 5 5 Sec. . NEW SECTION. 12.92 IOWA VALUES FUND 5 6 ACCOUNTS AND RESERVE FUNDS. 5 7 1. The treasurer of state shall establish such 5 8 accounts within the Iowa values fund created in 5 9 section 15G.105 as may be appropriate, including debt 5 10 service accounts for the purpose of paying the 5 11 principal of, redemption premium, if any, and interest 5 12 on bonds payable therefrom. Moneys in the debt 5 13 service accounts shall not be subject to appropriation 5 14 for any other purpose by the general assembly, but 5 15 shall be used only for the purposes of paying the 5 16 principal of, redemption premium, if any, and interest 5 17 on the bonds payable therefrom. 5 18 2. Revenue for the Iowa values fund shall include, 5 19 but is not limited to, the following, which shall be 5 20 deposited with the treasurer of state or its designee 5 21 as provided by any bond or security documents and 5 22 credited to the debt service account: 5 23 a. The proceeds of bonds issued to capitalize and 5 24 pay the costs of the fund and investment earnings on 5 25 the proceeds. 5 26 b. Interest attributable to investment of moneys 5 27 in the fund or an account of the fund. 5 28 c. Moneys in the form of a devise, gift, bequest, 5 29 donation, federal or other grant, reimbursement, 5 30 repayment, judgment, transfer, payment, or 5 31 appropriation from any source intended to be used for 5 32 the purposes of the fund or account. 5 33 3. a. The treasurer of state may create and 5 34 establish one or more special funds, to be known as 5 35 "bond reserve funds", to secure one or more issues of 5 36 bonds issued pursuant to section 12.91. The treasurer 5 37 of state shall pay into each bond reserve fund any 5 38 moneys appropriated and made available by the state or 5 39 treasurer of state for the purpose of the fund, any 5 40 proceeds of sale of bonds to the extent provided in 5 41 the resolutions or trust indentures authorizing their 5 42 issuance, and any other moneys which may be available 5 43 to the treasurer of state for the purpose of the fund 5 44 from any other sources. All moneys held in a bond 5 45 reserve fund, except as otherwise provided in this 5 46 chapter, shall be used as required solely for the 5 47 payment of the principal of bonds secured in whole or 5 48 in part by the fund or of the sinking fund payments 5 49 with respect to the bonds, the purchase or redemption 5 50 of the bonds, the payment of interest on the bonds, or 6 1 the payments of any redemption premium required to be 6 2 paid when the bonds are redeemed prior to maturity. 6 3 b. Moneys in a bond reserve fund shall not be 6 4 withdrawn from it at any time in an amount that will 6 5 reduce the amount of the fund to less than the bond 6 6 reserve fund requirement established for the fund, as 6 7 provided in this subsection, except for the purpose of 6 8 making, with respect to bonds secured in whole or in 6 9 part by the fund, payment when due of principal, 6 10 interest, redemption premiums, and the sinking fund 6 11 payments with respect to the bonds for the payment of 6 12 which other moneys of the treasurer of state are not 6 13 available. 6 14 Any income or interest earned by, or incremental 6 15 to, a bond reserve fund due to the investment of it 6 16 may be transferred by the treasurer of state to other 6 17 funds or accounts to the extent the transfer does not 6 18 reduce the amount of that bond reserve fund below the 6 19 bond reserve fund requirement for it. 6 20 c. The treasurer of state shall not at any time 6 21 issue bonds, secured in whole or in part by a bond 6 22 reserve fund, if, upon the issuance of the bonds, the 6 23 amount in the bond reserve fund will be less than the 6 24 bond reserve fund requirement for the fund, unless the 6 25 treasurer of state at the time of issuance of the 6 26 bonds deposits in the fund from the proceeds of the 6 27 bonds issued or from other sources an amount which, 6 28 together with the amount then in the fund, will not be 6 29 less than the bond reserve fund requirement for the 6 30 fund. For the purposes of this subsection, the term 6 31 "bond reserve fund requirement" means, as of any 6 32 particular date of computation, an amount of money, as 6 33 provided in the resolutions or trust indentures 6 34 authorizing the bonds with respect to which the fund 6 35 is established. 6 36 d. To assure the continued solvency of any bonds 6 37 secured by the bond reserve fund, provision is made in 6 38 paragraph "a" for the accumulation in each bond 6 39 reserve fund of an amount equal to the bond reserve 6 40 requirement for the fund. In order to further assure 6 41 maintenance of the bond reserve funds, the treasurer 6 42 of state shall, on or before January 1 of each 6 43 calendar year, make and deliver to the governor the 6 44 treasurer of state's certificate stating the sum, if 6 45 any, required to restore each bond reserve fund to the 6 46 bond reserve fund requirement for that fund. Within 6 47 thirty days after the beginning of the session of the 6 48 general assembly next following the delivery of the 6 49 certificate, the governor shall submit to both houses 6 50 printed copies of a budget including the sum, if any, 7 1 required to restore each bond reserve fund to the bond 7 2 reserve fund requirement for that fund. Any sums 7 3 appropriated by the general assembly and paid to the 7 4 treasurer of state pursuant to this subsection shall 7 5 be deposited by the treasurer of state in the 7 6 applicable bond reserve fund. 7 7 Sec. . NEW SECTION. 12.93 PLEDGES. 7 8 1. It is the intention of the general assembly 7 9 that a pledge made in respect of bonds shall be valid 7 10 and binding from the time the pledge is made, that the 7 11 moneys or property so pledged and received after the 7 12 pledge by the treasurer of state shall immediately be 7 13 subject to the lien of the pledge without physical 7 14 delivery or further act, and that the lien of the 7 15 pledge shall be valid and binding as against all 7 16 parties having claims of any kind in tort, contract, 7 17 or otherwise against the treasurer of state whether or 7 18 not the parties have notice of the lien. 7 19 2. The moneys set aside in a fund or funds pledged 7 20 for any series or issue of bonds shall be held for the 7 21 sole benefit of the series or issue separate and apart 7 22 from moneys pledged for another series or issue of 7 23 bonds of the treasurer of state. Bonds may be issued 7 24 in series under one or more resolutions or trust 7 25 indentures and may be fully open-ended, thus providing 7 26 for the unlimited issuance of additional series, or 7 27 partially open-ended, limited as to additional series. 7 28 Sec. . NEW SECTION. 12.94 LIMITATIONS. 7 29 Bonds issued pursuant to section 12.91 are not 7 30 debts of the state, or of any political subdivision of 7 31 the state, and do not constitute a pledge of the faith 7 32 and credit of the state or a charge against the 7 33 general credit or general fund of the state. The 7 34 issuance of any bonds pursuant to section 12.91 by the 7 35 treasurer of state does not directly, indirectly, or 7 36 contingently obligate the state or a political 7 37 subdivision of the state to apply moneys, or to levy 7 38 or pledge any form of taxation whatever, to the 7 39 payment of the bonds. Bonds issued under section 7 40 12.91 are payable solely and only from the sources and 7 41 special fund and accounts provided in section 12.92. 7 42 Sec. . NEW SECTION. 12.95 CONSTRUCTION. 7 43 Sections 12.91 through 12.94, being necessary for 7 44 the welfare of this state and its inhabitants, shall 7 45 be liberally construed to effect its purposes. 7 46 Sec. . NEW SECTION. 15G.101 PURPOSE. 7 47 The purpose of this chapter is to identify and 7 48 assist those economic and business sectors that have 7 49 the most potential to contribute to the long-term 7 50 growth and development of the state economy. 8 1 Sec. . NEW SECTION. 15G.102 DEFINITIONS. 8 2 As used in this chapter, unless the context 8 3 otherwise requires: 8 4 1. "Board" means the Iowa values board established 8 5 in section 15G.103. 8 6 2. "Department" means the Iowa department of 8 7 economic development created in section 15.105. 8 8 3. "Director" means the director of the department 8 9 of economic development. 8 10 4. "Fund" means the Iowa values fund created in 8 11 section 15G.105. 8 12 Sec. . NEW SECTION. 15G.103 IOWA VALUES 8 13 BOARD. 8 14 1. The Iowa values board is established consisting 8 15 of seventeen voting members and six ex officio, 8 16 nonvoting members. The board shall be located for 8 17 administrative purposes within the department and the 8 18 director shall provide office space, staff assistance, 8 19 and necessary supplies and equipment for the board. 8 20 The director shall budget funds to pay the 8 21 compensation and expenses of the board. In performing 8 22 its functions, the board is performing a public 8 23 function on behalf of the state and is a public 8 24 instrumentality of the state. 8 25 2. The director and a representative of the Iowa 8 26 capital investment board, created in section 15E.63, 8 27 shall serve as ex officio members of the board. The 8 28 legislative ex officio members of the board are two 8 29 state senators, one appointed by the president of the 8 30 senate, and one appointed by the minority leader of 8 31 the senate, from their respective parties; and two 8 32 state representatives, one appointed by the speaker 8 33 and one appointed by the minority leader of the house 8 34 of representatives from their respective parties. The 8 35 legislative ex officio members shall have business 8 36 experience. 8 37 3. The voting members of the board shall be 8 38 appointed as follows: 8 39 a. One individual from the advanced manufacturing 8 40 industry, appointed by the governor. 8 41 b. One individual from the life science industry, 8 42 appointed by the governor. 8 43 c. One individual from the information technology 8 44 industry, appointed by the governor. 8 45 d. One individual from the investment banking 8 46 industry, appointed by the governor. 8 47 e. One individual from the economic development 8 48 community who resides and works in a county with a 8 49 population ranking in the lowest one-third of county 8 50 populations as measured by the 2000 census, appointed 9 1 by the governor. 9 2 f. One individual from the economic development 9 3 community who resides and works in a county with a 9 4 population ranking in the middle one-third of county 9 5 populations as measured by the 2000 census, appointed 9 6 by the governor. 9 7 g. One individual from the economic development 9 8 community who resides and works in a county with a 9 9 population ranking in the highest one-third of county 9 10 populations as measured by the 2000 census, appointed 9 11 by the governor. 9 12 h. One individual from a statewide agricultural 9 13 organization, appointed by the governor. 9 14 i. One representative of a labor union, appointed 9 15 by the governor. 9 16 j. One representative from a private college or 9 17 university, appointed by the governor. 9 18 k. One representative from the community college 9 19 system, appointed by the governor. 9 20 l. One individual with demonstrated significant 9 21 experience in small business, appointed by the 9 22 governor. 9 23 m. One representative of the university of Iowa, 9 24 the university of northern Iowa, or Iowa state 9 25 university of science and technology, designated by 9 26 the state board of regents. 9 27 n. Two individuals from private industry appointed 9 28 by the house of representatives. One individual shall 9 29 be appointed by the speaker of the house of 9 30 representatives and one individual shall be appointed 9 31 by the minority leader in the house of 9 32 representatives. 9 33 o. Two individuals from private industry appointed 9 34 by the senate. One individual shall be appointed by 9 35 the president of the senate and one individual shall 9 36 be appointed by the minority leader in the senate. 9 37 4. All appointments shall comply with sections 9 38 69.16 and 69.16A. The appointments listed in 9 39 subsection 3, paragraphs "a" through "l", shall be 9 40 subject to confirmation by the senate. Of the members 9 41 appointed by the governor, at least two members shall 9 42 be members of the Iowa economic development board 9 43 created in section 15.103. A majority of the voting 9 44 members of the board listed in subsection 3, 9 45 paragraphs "a" through "l", shall be from the private 9 46 sector. 9 47 5. The voting members of the board listed in 9 48 subsection 3, paragraphs "a" through "l", shall be 9 49 residents of different counties. 9 50 6. The chairperson and vice chairperson shall be 10 1 elected by the voting members of the board from the 10 2 voting membership of the board. In the case of the 10 3 absence or disability of the chairperson and vice 10 4 chairperson, the voting members of the board shall 10 5 elect a temporary chairperson by a majority vote of 10 6 those members who are present and voting provided a 10 7 quorum is present. 10 8 7. The voting members of the board shall annually 10 9 elect a five-member executive council of the board 10 10 consisting of voting members of the board with at 10 11 least three of the members being from private 10 12 industry. The board shall determine the duties of the 10 13 council. 10 14 8. The members of the board shall be appointed to 10 15 three-year staggered terms and the terms shall 10 16 commence and end as provided in section 69.19. If a 10 17 vacancy occurs, a successor shall be appointed in the 10 18 same manner and subject to the same qualifications as 10 19 the original appointment to serve the unexpired term. 10 20 9. A majority of the board constitutes a quorum. 10 21 10. A voting member of the board shall abstain 10 22 from voting on the provision of financial assistance 10 23 to a project which is located in the county in which 10 24 the voting member of the board resides. 10 25 Sec. . NEW SECTION. 15G.104 BOARD DUTIES. 10 26 The board shall do all of the following: 10 27 1. Organize. 10 28 2. Oversee and administer the Iowa values fund. 10 29 3. Develop a five-year strategic plan with an 10 30 annual operating plan to share with the Iowa economic 10 31 development board for consideration in the developing 10 32 of a departmentwide strategic plan. 10 33 4. Develop a long-range strategic plan designed to 10 34 address economic development-related issues through 10 35 the year 2020. 10 36 5. Develop and assist the department in 10 37 implementing activities addressing all of the 10 38 following economic foundation issues of the economy: 10 39 a. Skilled and adaptable human resources. 10 40 b. Access to technologies on which new products 10 41 and processes are based. 10 42 c. Availability of financial capital to support 10 43 new ventures, expansion of existing companies, and 10 44 reinvestment in transition industries. 10 45 d. Support of advanced physical infrastructure for 10 46 transportation, communications, energy and water, and 10 47 waste handling. 10 48 e. A review of the regulatory and taxation 10 49 environment and business climate resulting in 10 50 recommendations to balance competitiveness. 11 1 6. Focus on nondiscriminatory market expansion and 11 2 foster a competitive and open environment. The board 11 3 shall not be a mechanism to allocate markets, fix 11 4 prices, or stifle competition. 11 5 7. By January 15 of each year, submit a written 11 6 report to the general assembly reviewing the 11 7 activities of the board during the previous calendar 11 8 year. The report shall also include an annual audit 11 9 of moneys appropriated from the fund and a statement 11 10 regarding return on investments. State agencies and 11 11 other entities receiving moneys from the fund shall 11 12 cooperate with and assist the board in the compilation 11 13 of the report. 11 14 8. Make a determination to discontinue providing 11 15 moneys to the entity if an entity receiving moneys 11 16 from the Iowa values fund does not meet criteria 11 17 required by an agreement with the board. 11 18 9. Adopt administrative rules pursuant to chapter 11 19 17A necessary to administer this chapter. 11 20 Sec. . NEW SECTION. 15G.105 IOWA VALUES FUND. 11 21 An Iowa values fund is created and established as a 11 22 separate and distinct fund in the state treasury. 11 23 Moneys in the fund shall not be subject to 11 24 appropriation for any other purposes by the general 11 25 assembly, other than as provided in this Act, but 11 26 shall be used only for the purposes of the Iowa values 11 27 fund. The treasurer of state shall act as custodian 11 28 of the fund and disburse moneys contained in the fund 11 29 as directed by the Iowa values board, including 11 30 automatic disbursements of funds received pursuant to 11 31 the terms of bond indentures and documents and 11 32 security provisions to trustees. The fund shall be 11 33 administered by the Iowa values board, which shall 11 34 make expenditures from the fund consistent with the 11 35 purposes of this Act without further appropriation. 11 36 Payments of interest, repayments of moneys loaned 11 37 pursuant to this chapter, and recaptures of grants or 11 38 loans shall be deposited in the fund. Moneys in the 11 39 fund are not subject to section 8.33. Notwithstanding 11 40 section 12C.7, interest or earnings on moneys in the 11 41 fund shall be credited to the fund. 11 42 Sec. . DEPARTMENT OF ECONOMIC DEVELOPMENT 11 43 APPROPRIATION. 11 44 1. There is appropriated from the Iowa values fund 11 45 created in section 15G.105 to the department of 11 46 economic development for the fiscal period beginning 11 47 July 1, 2003, and ending June 30, 2008, the following 11 48 amounts, or so much thereof as is necessary, to be 11 49 used for the purposes designated: 11 50 For programs administered by the department of 12 1 economic development: 12 2 FY 2003-2004...................................... $ 90,000,000 12 3 FY 2004-2005...................................... $ 70,000,000 12 4 FY 2005-2006...................................... $ 60,000,000 12 5 FY 2006-2007...................................... $ 60,000,000 12 6 FY 2007-2008...................................... $ 50,000,000 12 7 2. Notwithstanding section 8.33, moneys that 12 8 remain unexpended at the end of a fiscal year shall 12 9 not revert to any fund but shall remain available for 12 10 expenditure for the designated purposes during the 12 11 succeeding fiscal year. 12 12 3. Each year that moneys are appropriated under 12 13 this section, the board shall allocate a percentage of 12 14 the moneys for each of the following types of 12 15 activities: 12 16 a. Business start-ups. 12 17 b. Business expansion. 12 18 c. Business modernization. 12 19 d. Business attraction. 12 20 e. Business retention. 12 21 f. Marketing. 12 22 4. An applicant for moneys appropriated under this 12 23 section shall be required by the department to include 12 24 in the application a statement regarding the intended 12 25 return on investment. A recipient of moneys 12 26 appropriated under this section shall annually submit 12 27 a statement to the department regarding the progress 12 28 achieved on the intended return on investment stated 12 29 in the application. The department, in cooperation 12 30 with the department of revenue and finance, shall 12 31 develop a method of identifying and tracking each new 12 32 job created through financial assistance from moneys 12 33 appropriated under this section. 12 34 5. Of the moneys appropriated under this section, 12 35 at least $50,000,000 shall be used for value-added 12 36 agricultural purposes as set out in section 15E.111. 12 37 6. The department may use moneys appropriated 12 38 under this section to procure technical assistance 12 39 from either the public or private sector, for 12 40 information technology purposes, and for rail, air, or 12 41 river port transportation-related purposes. The use 12 42 of moneys appropriated for rail, air, or river port 12 43 transportation-related purposes must be directly 12 44 related to an economic development project and the 12 45 moneys must be used to leverage other financial 12 46 assistance moneys. 12 47 7. Of the moneys appropriated under this section, 12 48 the department may use one-quarter of one percent for 12 49 administrative purposes. 12 50 8. The entities required to approve applications 13 1 for financial assistance from moneys appropriated 13 2 under this section shall be as follows: 13 3 a. For financial assistance totaling one million 13 4 dollars or less, the department of economic 13 5 development shall approve, deny, or defer the 13 6 application. 13 7 b. For financial assistance totaling between one 13 8 million dollars and three million dollars, the 13 9 executive council of the Iowa values board shall 13 10 approve, deny, or defer the application. 13 11 c. For financial assistance totaling three million 13 12 dollars or more, the Iowa values board shall approve, 13 13 deny, or defer the application. 13 14 9. Of the moneys appropriated under this section 13 15 for the fiscal year beginning July 1, 2003, and ending 13 16 June 30, 2004, up to $10,000,000 is allocated to the 13 17 tax-exempt bond proceeds restricted capital funds 13 18 account of the tobacco settlement trust fund to 13 19 replenish moneys appropriated and expended pursuant to 13 20 2003 Iowa Acts, House File 453, if enacted. Of the 13 21 moneys appropriated under this section for the fiscal 13 22 year beginning July 1, 2004, and ending June 30, 2005, 13 23 up to $10,000,000 is allocated to the rebuild Iowa 13 24 infrastructure fund to replenish moneys appropriated 13 25 and expended pursuant to 2003 Iowa Acts, House File 13 26 453, if enacted. 13 27 Sec. . COMMUNITY ATTRACTION AND TOURISM FUND 13 28 APPROPRIATION. 13 29 1. There is appropriated from the Iowa values fund 13 30 created in section 15G.105 to the office of the 13 31 treasurer of state for the fiscal period beginning 13 32 July 1, 2004, and ending June 30, 2007, the following 13 33 amounts, or so much thereof as is necessary, to be 13 34 used for the purpose designated: 13 35 For deposit in the community attraction and tourism 13 36 fund created in section 15F.204: 13 37 FY 2004-2005...................................... $ 15,000,000 13 38 FY 2005-2006...................................... $ 15,000,000 13 39 FY 2006-2007...................................... $ 15,000,000 13 40 2. Notwithstanding section 8.33, moneys that 13 41 remain unexpended at the end of a fiscal year shall 13 42 not revert to any fund but shall remain available for 13 43 expenditure for the designated purposes during the 13 44 succeeding fiscal year. 13 45 3. Not more than $2,500,000 of the moneys 13 46 appropriated each fiscal year under this section shall 13 47 be used for trails and bicycle facilities located in 13 48 or connecting to cultural and entertainment districts 13 49 certified under section 303.3B. 13 50 4. When awarding moneys appropriated under this 14 1 section, the vision Iowa board shall give the 14 2 consideration in section 15F.203, subsection 3, 14 3 paragraph "c", priority over the other listed 14 4 considerations listed in section 15F.203, subsection 14 5 3. 14 6 Sec. . IOWA CULTURAL TRUST FUND APPROPRIATION. 14 7 1. There is appropriated from the Iowa values fund 14 8 created in section 15G.105 to the office of the 14 9 treasurer of state, for the fiscal year beginning July 14 10 1, 2003, and ending June 30, 2004, the following 14 11 amount, or so much thereof as is necessary, to be used 14 12 for the purpose designated: 14 13 For deposit in the Iowa cultural trust fund created 14 14 in section 303A.4: 14 15 .................................................. $ 5,000,000 14 16 2. Notwithstanding section 8.33, moneys that 14 17 remain unexpended at the end of a fiscal year shall 14 18 not revert to any fund but shall remain available for 14 19 expenditure for the designated purposes during the 14 20 succeeding fiscal year. 14 21 Sec. . SECURE AN ADVANCED VISION FOR EDUCATION 14 22 FUND APPROPRIATION. 14 23 1. There is appropriated from the Iowa values fund 14 24 created in section 15G.105 to the department of 14 25 revenue and finance, for the fiscal year beginning 14 26 July 1, 2003, and ending June 30, 2004, the following 14 27 amount, or so much thereof as is necessary, to be used 14 28 for the purpose designated: 14 29 For deposit in the secure an advanced vision for 14 30 education fund created in section 422E.3A, if enacted 14 31 by 2003 Iowa Acts, Senate File 445: 14 32 .................................................. $250,000,000 14 33 2. Notwithstanding section 8.33, moneys that 14 34 remain unexpended at the end of a fiscal year shall 14 35 not revert to any fund but shall remain available for 14 36 expenditure for the designated purposes during the 14 37 succeeding fiscal year. 14 38 Sec. . UNIVERSITY AND COLLEGE FINANCIAL 14 39 ASSISTANCE APPROPRIATION. 14 40 1. There is appropriated from the Iowa values fund 14 41 created in section 15G.105 to the Iowa values board 14 42 for the fiscal year beginning July 1, 2003, and ending 14 43 June 30, 2004, the following amounts, or so much 14 44 thereof as is necessary, to be used for the purpose 14 45 designated: 14 46 For financial assistance for institutions of higher 14 47 learning under the control of the state board of 14 48 regents and for accredited private institutions as 14 49 defined in section 261.9 for accelerating new business 14 50 creation, a national center for food safety and 15 1 security, innovation accelerators and business parks, 15 2 incubator facilities, transgenic animal facilities, 15 3 transgenic plant facilities, protein extraction 15 4 facilities, containment facilities, and bioanalytical, 15 5 biochemical, chemical, and microbiological support 15 6 facilities: 15 7 .................................................. $ 50,000,000 15 8 2. Notwithstanding section 8.33, moneys that 15 9 remain unexpended at the end of a fiscal year shall 15 10 not revert to any fund but shall remain available for 15 11 expenditure for the designated purposes during the 15 12 succeeding fiscal year. 15 13 3. In the distribution of moneys appropriated 15 14 pursuant to this section, the Iowa values board shall 15 15 examine the potential for using moneys appropriated 15 16 pursuant to this section to leverage other moneys for 15 17 financial assistance to accredited private 15 18 institutions. 15 19 4. Of the moneys appropriated under this section 15 20 and provided applications are submitted meeting the 15 21 requirements of the Iowa values board, not less than 15 22 $10,000,000 in financial assistance shall be awarded 15 23 to the university of Iowa, not less than $10,000,000 15 24 in financial assistance shall be awarded to Iowa state 15 25 university of science and technology, and not less 15 26 than $5,000,000 in financial assistance shall be 15 27 awarded to the university of northern Iowa. 15 28 Sec. . REHABILITATION PROJECT TAX CREDITS 15 29 APPROPRIATION. 15 30 1. There is appropriated from the Iowa values fund 15 31 created in section 15G.105 to the general fund of the 15 32 state, for the fiscal period beginning July 1, 2003, 15 33 and ending June 30, 2005, the following amounts, or so 15 34 much thereof as is necessary, to be used for the 15 35 purpose designated: 15 36 For payment of tax credits approved pursuant to 15 37 section 404A.4 for projects located in certified 15 38 cultural and entertainment districts: 15 39 FY 2003-2004...................................... $ 2,000,000 15 40 FY 2004-2005...................................... $ 2,000,000 15 41 2. Notwithstanding section 8.33, moneys that 15 42 remain unexpended at the end of a fiscal year shall 15 43 not revert to any fund but shall remain available for 15 44 expenditure for the designated purposes during the 15 45 succeeding fiscal year. 15 46 Sec. . ENDOW IOWA TAX CREDITS. 15 47 1. There is appropriated from the Iowa values fund 15 48 created in section 15G.105 to the general fund of the 15 49 state, for the fiscal year beginning July 1, 2003, and 15 50 ending June 30, 2004, the following amount, or so much 16 1 thereof as is necessary, to be used for the purpose 16 2 designated: 16 3 For payment of endow Iowa tax credits authorized 16 4 pursuant to section 15E.225: 16 5 .................................................. $ 2,000,000 16 6 2. Notwithstanding section 8.33, moneys that 16 7 remain unexpended at the end of a fiscal year shall 16 8 not revert to any fund but shall remain available for 16 9 expenditure for the designated purposes during the 16 10 succeeding fiscal year. 16 11 Sec. . ENDOW IOWA GRANTS APPROPRIATION. 16 12 1. There is appropriated from the Iowa values fund 16 13 created in section 15G.105 to the department of 16 14 economic development for the fiscal year beginning 16 15 July 1, 2003, and ending June 30, 2004, the following 16 16 amount, or so much thereof as is necessary, to be used 16 17 for the purpose designated: 16 18 For endow Iowa grants to lead philanthropic 16 19 entities pursuant to section 15E.224: 16 20 .................................................. $2,000,000 16 21 2. Notwithstanding section 8.33, moneys that 16 22 remain unexpended at the end of a fiscal year shall 16 23 not revert to any fund but shall remain available for 16 24 expenditure for the designated purposes during the 16 25 succeeding fiscal year. 16 26 Sec. . STATE PARKS AND DESTINATION PARKS 16 27 APPROPRIATION. 16 28 1. There is appropriated from the Iowa values fund 16 29 created in section 15G.105 to the Iowa values board 16 30 for the fiscal year beginning July 1, 2003, and ending 16 31 June 30, 2004, the following amount, or so much 16 32 thereof as is necessary, to be used for the purpose 16 33 designated: 16 34 For the purpose of providing financial assistance 16 35 for projects in targeted state parks and destination 16 36 parks: 16 37 FY 2003-2004..................................... $ 7,000,000 16 38 2. Notwithstanding section 8.33, moneys that 16 39 remain unexpended at the end of a fiscal year shall 16 40 not revert to any fund but shall remain available for 16 41 expenditure for the designated purposes during the 16 42 succeeding fiscal year. 16 43 3. The department of natural resources, in 16 44 cooperation with the department of economic 16 45 development, shall submit a plan to the Iowa values 16 46 board for the expenditure of moneys appropriated under 16 47 this section. The plan shall focus on improving state 16 48 parks and destination parks for economic development 16 49 purposes. Based on the report submitted, the Iowa 16 50 values board shall provide financial assistance to the 17 1 department of natural resources for support of state 17 2 parks and destination parks. 17 3 Sec. . ECONOMIC DEVELOPMENT REGION FINANCIAL 17 4 ASSISTANCE APPROPRIATION. 17 5 1. There is appropriated from the Iowa values fund 17 6 created in section 15G.105 to the department of 17 7 economic development for the fiscal year beginning 17 8 July 1, 2003, and ending June 30, 2004, the following 17 9 amount, or so much thereof as is necessary, to be used 17 10 for the purpose designated: 17 11 For providing financial assistance under section 17 12 15E.232, subsections 3, 4, 5, and 6 and under section 17 13 15E.233: 17 14 .................................................. $ 20,000,000 17 15 2. Notwithstanding section 8.33, moneys that 17 16 remain unexpended at the end of a fiscal year shall 17 17 not revert to any fund but shall remain available for 17 18 expenditure for the designated purposes during the 17 19 succeeding fiscal year. 17 20 3. The entities required to approve applications 17 21 for financial assistance from moneys appropriated 17 22 under this section shall be as follows: 17 23 a. For projects totaling one million dollars or 17 24 less, the department of economic development shall 17 25 approve, deny, or defer the application. 17 26 b. For projects totaling between one million 17 27 dollars and three million dollars, the executive 17 28 council of the Iowa values board shall approve, deny, 17 29 or defer the application. 17 30 c. For projects totaling three million dollars or 17 31 more, the Iowa values board shall approve, deny, or 17 32 defer the application. 17 33 Sec. . ECONOMIC DEVELOPMENT REGION REVOLVING 17 34 FUND CONTRIBUTION TAX CREDITS APPROPRIATION. 17 35 1. There is appropriated from the Iowa values fund 17 36 created in section 15G.105 to the general fund of the 17 37 state, for the fiscal period beginning July 1, 2003, 17 38 and ending June 30, 2008, the following amounts, or so 17 39 much thereof as is necessary, to be used for the 17 40 purpose designated: 17 41 For payment of tax credits and payments to 17 42 contributors approved pursuant to section 15E.232 17 43 approved pursuant to section 15E.232: 17 44 FY 2003-2004...................................... $ 4,000,000 17 45 FY 2004-2005...................................... $ 4,000,000 17 46 FY 2005-2006...................................... $ 4,000,000 17 47 FY 2006-2007...................................... $ 4,000,000 17 48 FY 2007-2008...................................... $ 4,000,000 17 49 2. Notwithstanding section 8.33, moneys that 17 50 remain unexpended at the end of a fiscal year shall 18 1 not revert to any fund but shall remain available for 18 2 expenditure for the designated purposes during the 18 3 succeeding fiscal year. 18 4 3. Any moneys appropriated under this section that 18 5 remain unobligated on June 30, 2008, shall be used for 18 6 providing financial assistance under section 15E.232, 18 7 subsections 3, 4, 5, and 6, for the fiscal year 18 8 beginning July 1, 2008. 18 9 DIVISION II 18 10 VALUE-ADDED AGRICULTURAL PRODUCTS AND PROCESSES 18 11 FINANCIAL ASSISTANCE PROGRAM 18 12 Sec. . Section 15E.111, subsection 1, Code 18 13 2003, is amended to read as follows: 18 14 1. a. The department shall establish a value- 18 15 added agricultural products and processes financial 18 16 assistance program. The department shall consult with 18 17the Iowa corn growers association and the Iowa soybean18 18associationIowa commodity groups. The purpose of the 18 19 program is to encourage the increased utilization of 18 20 agricultural commodities produced in this state. The 18 21 program shall assist in efforts to revitalize rural 18 22 regions of this state, by committing resources to 18 23 provide financial assistance to new or existing value- 18 24 added production facilities. The department of 18 25 economic development may consult with other state 18 26 agencies regarding any possible future environmental, 18 27 health, or safety issues linked to technology related 18 28 to the biotechnology industry. In awarding financial 18 29 assistance, the department shall prefer producer- 18 30 owned, value-added businesses and commit resources to 18 31 assist the following: 18 32a.(1) Facilities which are involved in the 18 33 development of new innovative products and processes 18 34 related to agriculture. The facility must do either 18 35 of the following: produce a good derived from an 18 36 agricultural commodity, if the good is not commonly 18 37 produced from an agricultural commodity; or use a 18 38 process to produce a good derived from an agricultural 18 39 process, if the process is not commonly used to 18 40 produce the good. 18 41b.(2) Renewable fuel production facilities. As 18 42 used in this section, "renewable fuel" means an energy 18 43 source which is derived from an organic compound 18 44 capable of powering machinery, including an engine or 18 45 power plant. 18 46 (3) Agricultural business facilities in the 18 47 agricultural biotechnology industry, agricultural 18 48 biomass industry, and alternative energy industry. 18 49 For purposes of this subsection: 18 50 (a) "Agricultural biomass industry" means 19 1 businesses that utilize agricultural commodity crops, 19 2 agricultural by-products, or animal feedstock in the 19 3 production of chemicals, protein products, or other 19 4 high-value products. 19 5 (b) "Agricultural biotechnology industry" means 19 6 businesses that utilize scientifically enhanced plants 19 7 or animals that can be raised by producers and used in 19 8 the production of high-value products. 19 9 (c) "Alternative energy industry" includes 19 10 businesses involved in the production of ethanol, 19 11 biodiesel, biomass, or in the production of wind 19 12 energy. 19 13 (4) Facilities that add value to Iowa agricultural 19 14 commodities through further processing and development 19 15 of organic products and emerging markets. 19 16 (5) Producer-owned, value-added businesses, 19 17 education of producers and management boards in value- 19 18 added businesses, and other activities that would 19 19 support the infrastructure in the development of 19 20 value-added agriculture. For purposes of this 19 21 subsection, "producer-owned, valued-added business" 19 22 means a person who holds an equity interest in the 19 23 agricultural business and is personally involved in 19 24 the production of crops or livestock on a regular, 19 25 continuous, and substantial basis. 19 26 b. Financial assistance awarded under this section 19 27 may be in the form of a loan, loan guarantee, grant, 19 28 production incentive payment, or a combination of 19 29 financial assistance. The department shall not award 19 30 more than twenty-five percent of the amount allocated 19 31 to the value-added agricultural products and processes 19 32 financial assistance fund during any fiscal year to 19 33 support a single person. The department may finance 19 34 any size of facility. However, the departmentshall19 35 may reserve up to fifty percent of the total amount 19 36 allocated to the fund, for purposes of assisting 19 37 persons requiringonefive hundred thousand dollars or 19 38 less in financial assistance. The amount shall be 19 39 reserved until the end of the third quarter of the 19 40 fiscal year. The department shall not provide 19 41 financial assistance to support a value-added 19 42 production facility if the facility or a person owning 19 43 a controlling interest in the facility has 19 44 demonstrated a continuous and flagrant disregard for 19 45 the health and safety of its employees or the quality 19 46 of the environment. Evidence of such disregard shall 19 47 include a history of serious or uncorrected violations 19 48 of state or federal law protecting occupational health 19 49 and safety or the environment, including but not 19 50 limited to serious or uncorrected violations of 20 1 occupational safety and health standards enforced by 20 2 the division of labor services of the department of 20 3 workforce development pursuant to chapter 84A, or 20 4 rules enforced by the department of natural resources 20 5 pursuant to chapter 455B or 459, subchapters II and 20 6 III. 20 7 DIVISION III 20 8 ENDOW IOWA GRANTS AND TAX CREDITS 20 9 Sec. . NEW SECTION. 15E.221 SHORT TITLE. 20 10 This division shall be known as and may be cited as 20 11 the "Endow Iowa Program Act". 20 12 Sec. . NEW SECTION. 15E.222 PURPOSE. 20 13 The purpose of this division is to enhance the 20 14 quality of life for citizens of this state through 20 15 increased philanthropic activity by providing capital 20 16 to new and existing citizen groups of this state 20 17 organized to establish endowment funds that will 20 18 address community needs. The purpose of this division 20 19 is also to encourage individuals, businesses, and 20 20 organizations to invest in community foundations. 20 21 Sec. . NEW SECTION. 15E.223 DEFINITIONS. 20 22 As used in this division, unless the context 20 23 otherwise requires: 20 24 1. "Board" means the governing board of the lead 20 25 philanthropic entity identified by the department 20 26 pursuant to section 15E.224. 20 27 2. "Business" means a business operating within 20 28 the state and includes individuals operating a sole 20 29 proprietorship or having rental, royalty, or farm 20 30 income in this state and includes a consortium of 20 31 businesses. 20 32 3. "Community affiliate organization" means a 20 33 group of five or more community leaders or advocates 20 34 organized for the purpose of increasing philanthropic 20 35 activity in an identified community or geographic area 20 36 in this state with the intention of establishing a 20 37 community affiliate endowment fund. 20 38 4. "Endowment gift" means an irrevocable 20 39 contribution to a permanent endowment held by a 20 40 qualified community foundation. 20 41 5. "Lead philanthropic entity" means the entity 20 42 identified by the department pursuant to section 20 43 15E.224. 20 44 6. "Qualified community foundation" means a 20 45 community foundation organized or operating in this 20 46 state that meets or exceeds the national standards 20 47 established by the national council on foundations. 20 48 Sec. . NEW SECTION. 15E.224 ENDOW IOWA 20 49 GRANTS. 20 50 1. The department shall identify a lead 21 1 philanthropic entity for purposes of encouraging the 21 2 development of qualified community foundations in this 21 3 state. A lead philanthropic entity shall meet all of 21 4 the following qualifications: 21 5 a. The entity shall be a nonprofit entity which is 21 6 exempt from federal income taxation pursuant to 21 7 section 501(c)(3) of the Internal Revenue Code. 21 8 b. The entity shall be a statewide organization 21 9 with membership consisting of organizations, such as 21 10 community, corporate, and private foundations, whose 21 11 principal function is the making of grants within the 21 12 state of Iowa. 21 13 c. The entity shall have a minimum of forty 21 14 members and that membership shall include qualified 21 15 community foundations. 21 16 2. A lead philanthropic entity may receive a grant 21 17 from the department. The board shall use the grant 21 18 moneys to award endow Iowa grants to new and existing 21 19 qualified community foundations and to community 21 20 affiliate organizations that do all of the following: 21 21 a. Provide the board with all information required 21 22 by the board. 21 23 b. Demonstrate a dollar-for-dollar funding match 21 24 in a form approved by the board. 21 25 c. Identify a qualified community foundation to 21 26 hold all funds. A qualified community foundation 21 27 shall not be required to meet this requirement. 21 28 d. Provide a plan to the board demonstrating the 21 29 method for distributing grant moneys received from the 21 30 board to organizations within the community or 21 31 geographic area as defined by the qualified community 21 32 foundation or the community affiliate organization. 21 33 3. Endow Iowa grants awarded to new and existing 21 34 qualified community foundations and to community 21 35 affiliate organizations shall not exceed twenty-five 21 36 thousand dollars per foundation or organization unless 21 37 a foundation or organization demonstrates a multiple 21 38 county or regional approach. Endow Iowa grants may be 21 39 awarded on an annual basis with not more than three 21 40 grants going to one county in a fiscal year. 21 41 4. In ranking applications for grants, the board 21 42 shall consider a variety of factors including the 21 43 following: 21 44 a. The demonstrated need for financial assistance. 21 45 b. The potential for future philanthropic activity 21 46 in the area represented by or being considered for 21 47 assistance. 21 48 c. The proportion of the funding match being 21 49 provided. 21 50 d. For community affiliate organizations, the 22 1 demonstrated need for the creation of a community 22 2 affiliate endowment fund in the applicant's geographic 22 3 area. 22 4 e. The identification of community needs and the 22 5 manner in which additional funding will address those 22 6 needs. 22 7 f. The geographic diversity of awards. 22 8 5. Of any moneys received by a lead philanthropic 22 9 entity from the state, not more than five percent of 22 10 such moneys shall be used by the entity for 22 11 administrative purposes. 22 12 Sec. . NEW SECTION. 15E.225 ENDOW IOWA TAX 22 13 CREDIT. 22 14 1. For tax years beginning on or after January 1, 22 15 2003, a tax credit shall be allowed against the taxes 22 16 imposed in chapter 422, divisions II, III, and V, and 22 17 in chapter 432, and against the moneys and credits tax 22 18 imposed in section 533.24 equal to twenty percent of a 22 19 taxpayer's endowment gift to a qualified community 22 20 foundation. An individual may claim a tax credit 22 21 under this section of a partnership, limited liability 22 22 company, S corporation, estate, or trust electing to 22 23 have income taxed directly to the individual. The 22 24 amount claimed by the individual shall be based upon 22 25 the pro rata share of the individual's earnings from 22 26 the partnership, limited liability company, S 22 27 corporation, estate, or trust. A tax credit shall be 22 28 allowed only for an endowment gift made to a qualified 22 29 community foundation for a permanent endowment fund 22 30 established to benefit a charitable cause in this 22 31 state. Any tax credit in excess of the taxpayer's tax 22 32 liability for the tax year may be credited to the tax 22 33 liability for the following five years or until 22 34 depleted, whichever occurs first. A tax credit shall 22 35 not be carried back to a tax year prior to the tax 22 36 year in which the taxpayer claims the tax credit. 22 37 2. The aggregate amount of tax credits authorized 22 38 pursuant to this section shall not exceed a total of 22 39 two million dollars. The maximum amount of tax 22 40 credits granted to a taxpayer shall not exceed five 22 41 percent of the aggregate amount of tax credits 22 42 authorized. 22 43 3. A tax credit shall not be transferable to any 22 44 other taxpayer. 22 45 4. A tax credit shall not be authorized pursuant 22 46 to this section after December 31, 2005. 22 47 5. The department shall develop a system for 22 48 registration and authorization of tax credits under 22 49 this section and shall control the distribution of all 22 50 tax credits to taxpayers providing an endowment gift 23 1 subject to this section. The department shall adopt 23 2 administrative rules pursuant to chapter 17A for the 23 3 qualification and administration of endowment gifts. 23 4 Sec. . NEW SECTION. 15E.226 REPORTS – 23 5 AUDITS. 23 6 By January 31 of each year, the lead philanthropic 23 7 entity, in cooperation with the department, shall 23 8 publish an annual report of the activities conducted 23 9 pursuant to this division during the previous calendar 23 10 year and shall submit the report to the governor and 23 11 the general assembly. The annual report shall include 23 12 a listing of endowment funds and the amount of tax 23 13 credits authorized by the department. 23 14 Sec. . NEW SECTION. 422.11H ENDOW IOWA TAX 23 15 CREDIT. 23 16 The tax imposed under this division, less the 23 17 credits allowed under sections 422.12 and 422.12B, 23 18 shall be reduced by an endow Iowa tax credit 23 19 authorized pursuant to section 15E.225. 23 20 Sec. . Section 422.33, Code 2003, is amended by 23 21 adding the following new subsection: 23 22 NEW SUBSECTION. 14. The taxes imposed under this 23 23 division shall be reduced by an endow Iowa tax credit 23 24 authorized pursuant to section 15E.225. 23 25 Sec. . Section 422.60, Code 2003, is amended by 23 26 adding the following new subsection: 23 27 NEW SUBSECTION. 7. The taxes imposed under this 23 28 division shall be reduced by an endow Iowa tax credit 23 29 authorized pursuant to section 15E.225. 23 30 Sec. . NEW SECTION. 432.12D ENDOW IOWA TAX 23 31 CREDIT. 23 32 The tax imposed under this chapter shall be reduced 23 33 by an endow Iowa tax credit authorized pursuant to 23 34 section 15E.225. 23 35 Sec. . Section 533.24, Code 2003, is amended by 23 36 adding the following new unnumbered paragraph: 23 37 NEW UNNUMBERED PARAGRAPH. The moneys and credits 23 38 tax imposed under this section shall be reduced by an 23 39 endow Iowa tax credit authorized pursuant to section 23 40 15E.225. 23 41 Sec. . EFFECTIVE AND RETROACTIVE APPLICABILITY 23 42 DATES. This division of this Act, being deemed of 23 43 immediate importance, takes effect upon enactment and 23 44 is retroactively applicable to January 1, 2003, for 23 45 tax years beginning on or after that date. 23 46 DIVISION IV 23 47 ECONOMIC DEVELOPMENT REGIONS 23 48 Sec. . NEW SECTION. 15E.231 ECONOMIC 23 49 DEVELOPMENT REGIONS. 23 50 1. In order for an economic development region to 24 1 receive moneys from the Iowa values fund created in 24 2 section 15G.105, the organization of an economic 24 3 development region must be approved by the Iowa values 24 4 board established in section 15G.103. The board shall 24 5 approve an economic development region that meets the 24 6 following criteria: 24 7 a. The region consists of not less than three 24 8 contiguous counties. Upon the recommendation of the 24 9 director of the department of economic development, 24 10 this paragraph may be waived by the board. 24 11 b. The region establishes a single, focused 24 12 economic development effort, approved by the board, 24 13 that shall include the development of a regional 24 14 development plan and regional marketing strategies. 24 15 Regional marketing strategies must be focused on 24 16 marketing the region collectively. 24 17 2. An approved economic development region may 24 18 create an economic development region revolving fund 24 19 as provided in section 15E.232. 24 20 Sec. . NEW SECTION. 15E.232 ECONOMIC 24 21 DEVELOPMENT REGION REVOLVING FUNDS – TAX CREDITS. 24 22 1. An economic development region approved 24 23 pursuant to section 15E.231 may create an economic 24 24 development region revolving fund. 24 25 2. a. A nongovernmental entity making a 24 26 contribution to an economic development region 24 27 revolving fund at any time prior to July 1, 2008, 24 28 except those described in paragraph "b", may claim a 24 29 tax credit equal to twenty percent of the amount 24 30 contributed to the revolving fund. The tax credit 24 31 shall be allowed against taxes imposed in chapter 422, 24 32 divisions II, III, and V, and in chapter 432, and 24 33 against the moneys and credits tax imposed in section 24 34 533.24. An individual may claim under this subsection 24 35 the tax credit of a partnership, limited liability 24 36 company, S corporation, estate, or trust electing to 24 37 have income taxed directly to the individual. The 24 38 amount claimed by the individual shall be based upon 24 39 the pro rata share of the individual's earnings from 24 40 the partnership, limited liability company, S 24 41 corporation, estate, or trust. Any tax credit in 24 42 excess of the taxpayer's liability for the tax year 24 43 may be credited to the tax liability for the following 24 44 seven years or until depleted, whichever occurs first. 24 45 A tax credit shall not be carried back to a tax year 24 46 prior to the tax year in which the taxpayer redeems 24 47 the tax credit. A tax credit under this section is 24 48 not transferable. 24 49 b. Subject to the provisions of paragraph "c", an 24 50 organization exempt from federal income tax pursuant 25 1 to section 501(c) of the Internal Revenue Code making 25 2 a contribution to an economic development region 25 3 revolving fund at any time prior to July 1, 2008, 25 4 shall be paid from the general fund of the state an 25 5 amount equal to twenty percent of such contributed 25 6 amount within thirty days after the end of the fiscal 25 7 year during which the contribution was made. 25 8 c. The aggregate amount of tax credits and 25 9 payments to contributors, referred to as the credit 25 10 amount, authorized pursuant to this subsection shall 25 11 not total more than twenty million dollars. The total 25 12 credit amount authorized during a fiscal year shall 25 13 not exceed four million dollars plus any unused credit 25 14 amount carried over from previous years. Any credit 25 15 amount which remains unused for a fiscal year may be 25 16 carried forward to the succeeding fiscal year. The 25 17 maximum credit amount that may be authorized in a 25 18 fiscal year for contributions made to a specific 25 19 economic development region revolving fund is equal to 25 20 four million dollars plus any unused credit amount 25 21 carried over from previous years divided by the number 25 22 of economic development region revolving funds 25 23 existing in the state. 25 24 d. The department of economic development shall 25 25 administer the authorization of tax credits under this 25 26 section and payments to contributors described in 25 27 paragraph "b" and shall, in cooperation with the 25 28 department of revenue and finance, adopt rules 25 29 pursuant to chapter 17A necessary for the 25 30 administration of this section. 25 31 3. An approved economic development region may 25 32 apply for financial assistance from the Iowa values 25 33 fund to assist with physical infrastructure needs 25 34 related to a specific business partner. In order to 25 35 receive financial assistance pursuant to this 25 36 subsection, the economic development region must 25 37 demonstrate all of the following: 25 38 a. The ability to provide matching moneys on a one 25 39 to one basis. 25 40 b. The commitment of the specific business 25 41 partner. 25 42 c. That all other funding alternatives have been 25 43 exhausted. 25 44 4. An approved economic development region may 25 45 apply for financial assistance from the Iowa values 25 46 fund to assist an existing business located in the 25 47 economic development region impacted by business 25 48 consolidation actions. Business consolidation actions 25 49 include a substantial or total closure of an existing 25 50 business due to consolidating the existing business 26 1 out of state. In order to receive financial 26 2 assistance pursuant to this subsection, the economic 26 3 development region must demonstrate the ability to 26 4 provide matching moneys on a one-to-one basis. 26 5 5. An approved economic development region may 26 6 apply for financial assistance to implement economic 26 7 development initiatives unique to the region. In 26 8 order to receive financial assistance pursuant to this 26 9 subsection, the economic development region must 26 10 demonstrate the ability to provide matching moneys on 26 11 a one-to-one basis. 26 12 6. An approved economic development region may 26 13 apply for financial assistance to implement innovative 26 14 initiatives that do not qualify for assistance under 26 15 subsection 5. 26 16 7. The board may establish and administer a 26 17 regional economic development revenue sharing pilot 26 18 project for one or more regions. The board shall take 26 19 into consideration the geographical disbursement of 26 20 the pilot projects. The department of economic 26 21 development shall provide technical assistance to the 26 22 regions participating in a pilot project. 26 23 8. Financial assistance under subsections 3, 4, 5, 26 24 and 6 and section 15E.233 shall be limited to a total 26 25 of thirty million dollars. 26 26 Sec. . NEW SECTION. 15E.233 ECONOMICALLY 26 27 ISOLATED AREAS. 26 28 1. An approved economic development region may 26 29 apply to the Iowa values board for approval to be 26 30 designated as an economically isolated area based on 26 31 criteria as determined by the board. An economically 26 32 isolated area must consist of at least one county 26 33 meeting the county distress criteria provided in 26 34 section 15E.194. The board shall approve no more than 26 35 five regions as economically isolated areas. 26 36 2. An approved economically isolated area may 26 37 apply to the department of economic development for 26 38 financial assistance of up to seven hundred fifty 26 39 thousand dollars over a five-year period for purposes 26 40 of economic development-related marketing assistance 26 41 for the area. In order to receive financial 26 42 assistance pursuant to this subsection, the 26 43 economically isolated area must demonstrate the 26 44 ability to provide matching moneys on a one-to-one 26 45 basis. 26 46 Sec. . NEW SECTION. 422.11I ECONOMIC 26 47 DEVELOPMENT REGION REVOLVING FUND TAX CREDIT. 26 48 The taxes imposed under this division, less the 26 49 credits allowed under sections 422.12 and 422.12B, 26 50 shall be reduced by an economic development region 27 1 revolving fund contribution tax credit authorized 27 2 pursuant to section 15E.232. 27 3 Sec. . Section 422.33, Code 2003, is amended by 27 4 adding the following new subsection: 27 5 NEW SUBSECTION. 15. The taxes imposed under this 27 6 division shall be reduced by an economic development 27 7 region revolving fund contribution tax credit 27 8 authorized pursuant to section 15E.232. 27 9 Sec. . Section 422.60, Code 2003, is amended by 27 10 adding the following new subsection: 27 11 NEW SUBSECTION. 8. The taxes imposed under this 27 12 division shall be reduced by an economic development 27 13 region revolving fund contribution tax credit 27 14 authorized pursuant to section 15E.232. 27 15 Sec. . NEW SECTION. 432.12E ECONOMIC 27 16 DEVELOPMENT REGION REVOLVING FUND CONTRIBUTION TAX 27 17 CREDITS. 27 18 The tax imposed under this chapter shall be reduced 27 19 by an economic development region tax credit 27 20 authorized pursuant to section 15E.232. 27 21 Sec. . Section 533.24, Code 2003, is amended by 27 22 adding the following new unnumbered paragraph after 27 23 unnumbered paragraph 4: 27 24 NEW UNNUMBERED PARAGRAPH. The moneys and credits 27 25 tax imposed under this section shall be reduced by an 27 26 economic development region revolving fund 27 27 contribution tax credit authorized pursuant to section 27 28 15E.232. 27 29 DIVISION V 27 30 WORKFORCE TRAINING AND ECONOMIC DEVELOPMENT FUNDS 27 31 Sec. . NEW SECTION. 260C.18A WORKFORCE 27 32 TRAINING AND ECONOMIC DEVELOPMENT FUNDS. 27 33 1. a. A workforce training and economic 27 34 development fund is created for each community 27 35 college. Moneys shall be deposited and expended from 27 36 a fund as provided under this section. 27 37 b. Moneys in the funds shall consist of any moneys 27 38 appropriated by the general assembly and any other 27 39 moneys available to and obtained or accepted by the 27 40 department of economic development from federal 27 41 sources or private sources for placement in the funds. 27 42 Notwithstanding section 8.33, moneys in the funds at 27 43 the end of each fiscal year shall not revert to any 27 44 other fund but shall remain in the funds for 27 45 expenditure in subsequent fiscal years. 27 46 2. On July 1 of each year for the fiscal year 27 47 beginning July 1, 2003, and for every fiscal year 27 48 thereafter, moneys from the Iowa values fund created 27 49 in section 15G.105 are appropriated to the department 27 50 of economic development for deposit in the workforce 28 1 training and economic development funds in amounts 28 2 determined pursuant to subsection 3. Moneys deposited 28 3 in the funds and disbursed to community colleges for a 28 4 fiscal year shall be expended for the following 28 5 purposes, provided seventy percent of the moneys shall 28 6 be used on projects in the areas of advanced 28 7 manufacturing, information technology and insurance, 28 8 and life sciences which include the areas of 28 9 biotechnology, health care technology, and nursing 28 10 care technology: 28 11 a. Projects in which an agreement between a 28 12 community college and an employer located within the 28 13 community college's merged area meet all of the 28 14 requirements of the accelerated career education 28 15 program under chapter 260G. Notwithstanding section 28 16 260G.4B, projects funded with moneys from workforce 28 17 training and economic development funds shall be 28 18 approved by the Iowa values board established in 28 19 section 15G.103. 28 20 b. Projects in which an agreement between a 28 21 community college and a business meet all the 28 22 requirements of the Iowa jobs training Act under 28 23 chapter 260F. However, when moneys are provided 28 24 through the Iowa values fund for such projects, 28 25 sections 260F.6, subsections 1 and 2, and section 28 26 260F.8 shall not apply and projects shall be approved 28 27 by the Iowa values board. 28 28 c. For the development and implementation of 28 29 career academies designed to provide new career 28 30 preparation opportunities for high school students 28 31 that are formally linked with postsecondary career and 28 32 technical education programs. Moneys from workforce 28 33 training and economic development funds that are 28 34 expended for purposes of this paragraph shall be 28 35 approved by the Iowa values board established in 28 36 section 15G.103. For purposes of this section, 28 37 "career academy" means a program of study that 28 38 combines a minimum of two years of secondary education 28 39 with an associate degree, or the equivalent, career 28 40 preparatory program in a nonduplicative, sequential 28 41 course of study that is standards based, integrates 28 42 academic and technical instruction, utilizes work- 28 43 based and worksite learning where appropriate and 28 44 available, utilizes an individual career planning 28 45 process with parent involvement, and leads to an 28 46 associate degree or postsecondary diploma or 28 47 certificate in a career field that prepares an 28 48 individual for entry and advancement in a high-skill 28 49 and reward career field and further education. The 28 50 department of economic development, in conjunction 29 1 with the state board of education and the division of 29 2 community colleges and workforce preparation of the 29 3 department of education, shall adopt administrative 29 4 rules for the development and implementation of such 29 5 career academies pursuant to section 256.11, 29 6 subsection 5, paragraph "h", section 260C.1, and Title 29 7 II of Pub. L. No. 105-332, Carl D. Perkins Vocational 29 8 and Technical Education Act of 1998. 29 9 d. Programs and courses that provide vocational 29 10 and technical training, and programs for in-service 29 11 training and retraining under section 260C.1, 29 12 subsections 2 and 3. 29 13 3. The maximum cumulative total amount of moneys 29 14 that may be deposited in all the workforce training 29 15 and economic development funds for distribution to 29 16 community colleges in a fiscal year shall be 29 17 determined as follows: 29 18 a. Five million dollars for the fiscal year 29 19 beginning July 1, 2003. 29 20 b. Ten million dollars for the fiscal year 29 21 beginning July 1, 2004. 29 22 c. Fifteen million dollars for the fiscal year 29 23 beginning July 1, 2005. 29 24 d. Twenty million dollars for the fiscal year 29 25 beginning July 1, 2006. 29 26 e. Twenty-five million dollars for the fiscal year 29 27 beginning July 1, 2007. 29 28 f. For the fiscal year beginning July 1, 2008, and 29 29 each succeeding fiscal year, the Iowa values board 29 30 shall make a determination if sufficient moneys exist 29 31 in the Iowa values fund to distribute to community 29 32 colleges. 29 33 Sec. . Section 260G.3, subsection 2, Code 2003, 29 34 is amended to read as follows: 29 35 2. An agreement may include reasonable and 29 36 necessary provisions to implement the accelerated 29 37 career education program. If an agreement that 29 38 utilizes program job credits is entered into, the 29 39 community college and the employer shall notify the 29 40 department of revenue and finance as soon as possible. 29 41 The community college shall also file a copy of the 29 42 agreement with the department of economic development 29 43 as required in section 260G.4B. The agreement shall 29 44 provide for program costs, including deferred costs, 29 45 which may be paid from any of the following sources: 29 46 a. Program job credits which the employer receives 29 47 based on the number of program job positions agreed to 29 48 by the employer to be available under the agreement. 29 49 b. Cash or in-kind contributions by the employer 29 50 toward the program cost. At a minimum, the employer 30 1 contribution shall be twenty percent of the program 30 2 costs. 30 3 c. Tuition, student fees, or special charges fixed 30 4 by the board of directors to defray program costs. 30 5 d. Guarantee by the employer of payments to be 30 6 received under paragraphs "a" and "b". 30 7 e. Moneys from a workforce training and economic 30 8 development fund created in section 260C.18A, based on 30 9 the number of program job positions agreed to by the 30 10 employer to be available under the agreement, the 30 11 amount of which shall be calculated in the same manner 30 12 as the program job credits provided for in section 30 13 260G.4A. 30 14 DIVISION VI 30 15 CULTURAL AND ENTERTAINMENT DISTRICTS – 30 16 REHABILITATION PROJECT TAX CREDITS 30 17 Sec. . NEW SECTION. 303.3B CULTURAL AND 30 18 ENTERTAINMENT DISTRICTS. 30 19 1. The department of cultural affairs shall 30 20 establish and administer a cultural and entertainment 30 21 district certification program. The program shall 30 22 encourage the growth of communities through the 30 23 development of areas within a city or county for 30 24 public and private uses related to cultural and 30 25 entertainment purposes. 30 26 2. A city or county may create and designate a 30 27 cultural and entertainment district subject to 30 28 certification by the department of cultural affairs, 30 29 in consultation with the department of economic 30 30 development. A cultural and entertainment district 30 31 shall consist of a geographic area not exceeding one 30 32 square mile in size. A cultural and entertainment 30 33 district certification shall remain in effect for ten 30 34 years following the date of certification. Two or 30 35 more cities or counties may apply jointly for 30 36 certification of a district that extends across a 30 37 common boundary. Through the adoption of 30 38 administrative rules, the department of cultural 30 39 affairs shall develop a certification application for 30 40 use in the certification process. 30 41 3. The department of cultural affairs shall 30 42 encourage development projects and activities located 30 43 in certified cultural and entertainment districts 30 44 through incentives under cultural grant programs 30 45 pursuant to section 303.3, chapter 303A, and any other 30 46 grant programs. 30 47 Sec. . Section 404A.4, subsection 4, Code 2003, 30 48 is amended to read as follows: 30 49 4. The total amount of tax credits that may be 30 50 approved for a fiscal year under this chapter shall 31 1 not exceed two million four hundred thousand dollars. 31 2 For the fiscal years beginning July 1, 2003, and July 31 3 1, 2004, an additional two million dollars of tax 31 4 credits may be approved each fiscal year for purposes 31 5 of projects located in cultural and entertainment 31 6 districts certified pursuant to section 303.3B. Any 31 7 of the additional tax credits allocated for projects 31 8 located in certified cultural and entertainment 31 9 districts that are not approved during a fiscal year 31 10 may be carried over to the succeeding fiscal year. 31 11 Tax credit certificates shall be issued on the basis 31 12 of the earliest awarding of certifications of 31 13 completion as provided in subsection 1. The 31 14 departments of economic development and revenue and 31 15 finance shall each adopt rules to jointly administer 31 16 this subsection and shall provide by rule for the 31 17 method to be used to determine for which fiscal year 31 18 the tax credits are approved. 31 19 DIVISION VII 31 20 SMALL BUSINESS ADVISORY COUNCIL 31 21 Sec. . Section 15.108, subsection 7, paragraph 31 22 h, Code 2003, is amended by striking the paragraph." 31 23 #2. By renumbering as necessary. 31 24 31 25 31 26 31 27 WILLIAM A. DOTZLER 31 28 HERMAN C. QUIRMBACH 31 29 ROGER STEWART 31 30 DARYL BEALL 31 31 JACK HATCH 31 32 DR. JOE SENG 31 33 MATT McCOY 31 34 AMANDA RAGAN 31 35 JOHN P. KIBBIE 31 36 EUGENE S. FRAISE 31 37 JACK HOLVECK 31 38 WALLY E. HORN 31 39 DENNIS H. BLACK 31 40 MICHAEL E. GRONSTAL 31 41 MIKE CONNOLLY 31 42 ROBERT E. DVORSKY 31 43 THOMAS G. COURTNEY 31 44 HF 692.205 80 31 45 tm/sh
Text: S03396 Text: S03398 Text: S03300 - S03399 Text: S Index Bills and Amendments: General Index Bill History: General Index
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