Text: SF00294 Text: SF00296 Text: SF00200 - SF00299 Text: SF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 Section 1. NEW SECTION. 260H.1 TITLE. 1 2 This chapter shall be known and may be cited as the 1 3 "Corporate Consolidation Relocation Program". 1 4 Sec. 2. NEW SECTION. 260H.2 DEFINITIONS. 1 5 When used in this chapter, unless the context otherwise 1 6 requires: 1 7 1. "Agreement" is the agreement between an employer and a 1 8 community college concerning a project. 1 9 2. "Board of directors" means the board of directors of a 1 10 community college. 1 11 3. "Certificate" means a corporate consolidation 1 12 relocation certificate issued pursuant to section 260H.6. 1 13 4. "Community college" means a community college 1 14 established under chapter 260C. 1 15 5. "Corporate consolidation relocation program" or 1 16 "program" means the project or projects established by a 1 17 community college for the creation of jobs through an industry 1 18 locating in the merged area served by the community college. 1 19 6. "Date of commencement of the project" means the date of 1 20 the agreement. 1 21 7. "Employee" means the person employed in a new job. 1 22 8. "Employer" means the person providing new jobs in the 1 23 merged area served by the community college and entering into 1 24 an agreement. 1 25 9. "Industry" means a business consolidating operations, 1 26 of which all or a portion of the operations were located 1 27 outside this state, for location in this state, and engaged in 1 28 interstate or intrastate commerce for the purpose of 1 29 manufacturing, processing, or assembling products, conducting 1 30 research and development, or providing services in interstate 1 31 commerce, but excludes retail, health, or professional 1 32 services. 1 33 10. "New job" means a job in an industry but does not 1 34 include jobs of recalled workers or replacement jobs. 1 35 11. "New jobs credit from withholding" means the credit as 2 1 provided in section 260H.4. 2 2 12. "Program costs" means all necessary and incidental 2 3 costs of providing program services. 2 4 13. "Program services" include but are not limited to 2 5 moving personnel and equipment to Iowa. 2 6 14. "Project" means an arrangement which is the subject of 2 7 an agreement entered into between the community college and an 2 8 employer to provide program services. 2 9 Sec. 3. NEW SECTION. 260H.3 AGREEMENT. 2 10 1. A community college may enter into an agreement to 2 11 establish a project. If an agreement is entered into, the 2 12 community college and the employer shall notify the department 2 13 of revenue and finance as soon as possible. An agreement 2 14 shall provide for program costs, including deferred costs, 2 15 which may be paid from one or a combination of the following 2 16 sources: 2 17 a. New jobs credit from withholding to be received or 2 18 derived from new employment resulting from the project. 2 19 b. Guarantee of payments to be received under paragraph 2 20 "a". 2 21 2. Payment of program costs shall not be deferred for a 2 22 period longer than ten years from the date of commencement of 2 23 the project. 2 24 3. Any payments required to be made by an employer are a 2 25 lien upon the employer's business property until paid and have 2 26 equal precedence with ordinary taxes and shall not be divested 2 27 by a judicial sale. Property subject to the lien may be sold 2 28 for sums due and delinquent at a tax sale, with the same 2 29 forfeitures, penalties, and consequences as for the nonpayment 2 30 of ordinary taxes. The purchaser at tax sale obtains the 2 31 property subject to the remaining payments. 2 32 Sec. 4. NEW SECTION. 260H.4 NEW JOBS CREDIT FROM 2 33 WITHHOLDING. 2 34 1. A provision in an agreement for which a new jobs credit 2 35 from withholding is included shall provide that the employer 3 1 shall agree to include at least one hundred new jobs and pay 3 2 wages for the jobs for which the credit is taken of at least 3 3 one hundred thirty percent of the average county wage. 3 4 Eligibility for the credit shall be based on a one-time 3 5 determination of starting wages by the community college. 3 6 2. If an agreement provides that all or part of the 3 7 program costs are to be met by receipt of new jobs credit from 3 8 withholding, it shall be done as follows: 3 9 a. New jobs credit from withholding shall be based upon 3 10 the wages paid to the employees in the new jobs. 3 11 b. An amount equal to two percent of the gross wages paid 3 12 by the employer to each employee participating in a project 3 13 shall be credited from the payment made by an employer 3 14 pursuant to section 422.16. If the amount of the withholding 3 15 by the employer is less than two percent of the gross wages 3 16 paid to the employees covered by the agreement, then the 3 17 employer shall receive a credit against other withholding 3 18 taxes due by the employer. The employer shall remit the 3 19 amount of the credit quarterly in the same manner as 3 20 withholding payments are reported to the department of revenue 3 21 and finance, to the community college to be allocated to and 3 22 when collected paid into a special fund of the community 3 23 college to pay the principal of and interest on certificates 3 24 issued by the community college to finance or refinance, in 3 25 whole or in part, the project. When the principal and 3 26 interest on the certificates have been paid, the employer 3 27 credits shall cease and any money received after the 3 28 certificates have been paid shall be remitted to the treasurer 3 29 of state to be deposited in the general fund of the state. 3 30 c. The new jobs credit from withholding and the special 3 31 fund into which it is paid may be irrevocably pledged by a 3 32 community college for the payment of the principal of and 3 33 interest on the certificate issued by a community college to 3 34 finance or refinance, in whole or in part, the project. 3 35 d. The employer shall certify to the department of revenue 4 1 and finance that the credit from withholding is in accordance 4 2 with an agreement and shall provide other information the 4 3 department may require. 4 4 e. A community college shall certify to the department of 4 5 revenue and finance the amount of new jobs credit from 4 6 withholding an employer has remitted to the special fund and 4 7 shall provide other information the department may require. 4 8 f. An employee participating in a project will receive 4 9 full credit for the amount withheld as provided in section 4 10 422.16. 4 11 Sec. 5. NEW SECTION. 260H.5 CERTIFICATES. 4 12 To provide funds for the present payment of the costs of 4 13 new jobs programs, a community college may borrow money and 4 14 issue and sell certificates payable from a sufficient portion 4 15 of the future receipts of payments authorized by the 4 16 agreement. The receipts shall be pledged to the payment of 4 17 principal of and interest on the certificates. 4 18 1. Certificates may be sold at public sale or at private 4 19 sale at par, premium, or discount at the discretion of the 4 20 board of directors. Chapter 75 does not apply to the issuance 4 21 of these certificates. 4 22 2. Certificates may be issued with respect to a single 4 23 project or multiple projects and may contain terms or 4 24 conditions as the board of directors may provide by resolution 4 25 authorizing the issuance of the certificates. 4 26 3. Certificates issued to refund other certificates may be 4 27 sold at public sale or at private sale as provided in this 4 28 section with the proceeds from the sale to be used for the 4 29 payment of the certificates being refunded. The refunding 4 30 certificates may be exchanged in payment and discharge of the 4 31 certificates being refunded, in installments at different 4 32 times or an entire issue or series at one time. Refunding 4 33 certificates may be sold or exchanged at any time on, before, 4 34 or after the maturity of the outstanding certificates to be 4 35 refunded, may be issued for the purpose of refunding a like, 5 1 greater, or lesser principal amount of certificates and may 5 2 bear a higher, lower, or equivalent rate of interest than the 5 3 certificates being renewed or refunded. 5 4 4. To further secure the payment of the certificates, the 5 5 board of directors shall, by resolution, provide for the 5 6 assessment of an annual levy of a standby tax upon all taxable 5 7 property within the merged area. A copy of the resolution 5 8 shall be sent to the county auditor of each county in which 5 9 the merged area is located. The revenues from the standby tax 5 10 shall be deposited in a special fund and shall be expended 5 11 only for the payment of principal of and interest on the 5 12 certificates issued as provided in this section, when the 5 13 receipt of payment for program costs as provided in the 5 14 agreement is insufficient. If payments are necessary and made 5 15 from the special fund, the amount of the payments shall be 5 16 promptly repaid into the special fund from the first available 5 17 payments received for program costs as provided in the 5 18 agreement which are not required for the payment of principal 5 19 of or interest on certificates due. No reserves may be built 5 20 up in this fund in anticipation of a projected default. The 5 21 board of directors shall adjust the annual standby tax levy 5 22 for each year to reflect the amount of revenues in the special 5 23 fund and the amount of principal and interest which is due in 5 24 that year. 5 25 5. Before certificates are issued, the board of directors 5 26 shall publish once a notice of its intention to issue the 5 27 certificates, stating the amount, the purpose, and the project 5 28 or projects for which the certificates are to be issued. A 5 29 person may, within fifteen days after the publication of the 5 30 notice by action in the district court of a county in the area 5 31 within which the community college is located, appeal the 5 32 decision of the board of directors in proposing to issue the 5 33 certificates. The action of the board of directors in 5 34 determining to issue the certificates is final and conclusive 5 35 unless the district court finds that the board of directors 6 1 has exceeded its legal authority. An action shall not be 6 2 brought which questions the legality of the certificates, the 6 3 power of the board of directors to issue the certificates, the 6 4 effectiveness of any proceedings relating to the authorization 6 5 of the project, or the authorization and issuance of the 6 6 certificates from and after fifteen days from the publication 6 7 of the notice of intention to issue. 6 8 6. The board of directors shall determine if revenues are 6 9 sufficient to secure the faithful performance of obligations 6 10 in the agreement. 6 11 Sec. 6. NEW SECTION. 260H.6 DEPARTMENT OF ECONOMIC 6 12 DEVELOPMENT. 6 13 The department of economic development in consultation with 6 14 the department of education shall coordinate the program. The 6 15 department of economic development shall adopt, amend, and 6 16 repeal rules under chapter 17A that the community college will 6 17 use in developing projects. The department is authorized to 6 18 make any rule that is adopted, amended, or repealed effective 6 19 immediately upon filing with the administrative rules 6 20 coordinator or at a subsequent stated date prior to indexing 6 21 and publication, or at a stated date less than thirty-five 6 22 days after filing, indexing, and publication. The department 6 23 shall prepare an annual report for the governor and general 6 24 assembly on the activities of the corporate consolidation 6 25 relocation program. 6 26 Sec. 7. Section 7C.4A, subsection 2, Code 2003, is amended 6 27 to read as follows: 6 28 2. Twelve percent of the state ceiling shall be allocated 6 29 to bonds issued to carry out programs established under 6 30 chapters 260C, 260E,and260F, and 260H. However, at any time 6 31 during the calendar year the director of the Iowa department 6 32 of economic development may determine that a lesser amount 6 33 need be allocated and on that date this lesser amount shall be 6 34 the amount allocated for those programs and the excess shall 6 35 be allocated under subsection 7. 7 1 Sec. 8. Section 15.108, subsection 6, paragraph a, Code 7 2 2003, is amended to read as follows: 7 3 a. Coordinate and perform the duties specified under the 7 4 Iowa industrial new jobs training Act in chapter 260E, the 7 5 Iowa jobs training Act in chapter 260F, the corporate 7 6 consolidation relocation program in chapter 260H, and the 7 7 workforce development fund in section 15.341. 7 8 Sec. 9. Section 15.251, Code 2003, is amended to read as 7 9 follows: 7 10 15.251 INDUSTRIAL NEW JOB TRAINING PROGRAM AND CORPORATE 7 11 CONSOLIDATION RELOCATION PROGRAM CERTIFICATES – FEE. 7 12 The department may charge, within thirty days following the 7 13 sale of certificates under chapter 260E or 260H, the board of 7 14 directors of the merged area a fee of up to one percent of the 7 15 gross sale amount of the certificates issued. The amount of 7 16 this fee shall be deposited and allowed to accumulate in a job 7 17 training fund created in the department. At the end of each 7 18 fiscal year, all funds deposited under this subsection into 7 19 the job training fund during the fiscal year shall be 7 20 transferred to the workforce development fund account 7 21 established in section 15.342A. 7 22 Sec. 10. Section 403.21, subsection 2, Code 2003, is 7 23 amended to read as follows: 7 24 2. The community college shall send a copy of the final 7 25 agreement prepared pursuant to section 260E.3 or 260H.3 to the 7 26 department of economic development. For each year in which 7 27 incremental property taxes are used to pay job training 7 28 certificates issued for a project creating new jobs, the 7 29 community college shall provide to the department of economic 7 30 development a report of the incremental property taxes and new 7 31 jobs credits from withholding generated for that year, a 7 32 specific description of the training conducted, the number of 7 33 employees provided program services under the project, the 7 34 median wage of employees in the new jobs in the project, and 7 35 the administrative costs directly attributable to the project. 8 1 Sec. 11. Section 422.16A, Code 2003, is amended to read as 8 2 follows: 8 3 422.16A JOB TRAINING WITHHOLDING – CERTIFICATION AND 8 4 TRANSFER. 8 5 Upon the completion by a business of its repayment 8 6 obligation for atrainingproject funded under chapter 260E or 8 7 260H, including a job training project funded under section 8 8 15A.8 or repaid in whole or in part by the supplemental new 8 9 jobs credit from withholding under section 15A.7 or section 8 10 15.331, the sponsoring community college shall report to the 8 11 department of economic development the amount of withholding 8 12 paid by the business to the community college during the final 8 13 twelve months of withholding payments. The department of 8 14 economic development shall notify the department of revenue 8 15 and finance of that amount. The department shall credit to 8 16 the workforce development fund account established in section 8 17 15.342A twenty-five percent of that amount each quarter for a 8 18 period of ten years. If the amount of withholding from the 8 19 business or employer is insufficient, the department shall 8 20 prorate the quarterly amount credited to the workforce 8 21 development fund account. The maximum amount from all 8 22 employers which shall be transferred to the workforce 8 23 development fund account in any year is four million dollars. 8 24 EXPLANATION 8 25 This bill creates a corporate consolidation relocation 8 26 program and provides related tax benefits. 8 27 The bill provides that a community college may enter into 8 28 an agreement to establish a project for the creation of jobs 8 29 through an industry locating in the merged area served by the 8 30 community college. An industry is a business consolidating 8 31 operations, of which all or a portion of the operations were 8 32 located outside the state, for location in this state and 8 33 which meets certain other criteria. Program services include, 8 34 but are not limited to, moving personnel and equipment to 8 35 Iowa. 9 1 The bill provides that an agreement shall provide for 9 2 program costs, including deferred costs, which may be paid 9 3 from one or a combination of the following sources: 9 4 1. New jobs credit from withholding to be received or 9 5 derived from new employment resulting from the project. 9 6 2. Guarantee of payments to be received under the other 9 7 option. 9 8 The bill provides that payment of program costs shall not 9 9 be deferred for a period longer than 10 years from the date of 9 10 commencement of the project. The bill provides that any 9 11 payments required to be made by an employer are a lien upon 9 12 the employer's business property until paid and have equal 9 13 precedence with ordinary taxes and shall not be divested by a 9 14 judicial sale. 9 15 The bill provides that a provision in an agreement for 9 16 which a new jobs credit from withholding is included shall 9 17 provide that the employer shall agree to include at least 100 9 18 new jobs and pay wages for the jobs for which the credit is 9 19 taken of at least 130 percent of the average county wage. The 9 20 bill provides a procedure for administering a new jobs credit 9 21 from withholding if an agreement provides that all or part of 9 22 the program costs are to be met by receipt of new jobs credit 9 23 from withholding. 9 24 The bill provides that, to provide funds for the present 9 25 payment of the costs of new jobs programs, a community college 9 26 may borrow money and issue and sell certificates payable from 9 27 a sufficient portion of the future receipts of payments 9 28 authorized by the agreement. The bill provides that the 9 29 receipts shall be pledged to the payment of principal of and 9 30 interest on the certificates. The bill provides for the 9 31 method of sale and issuance of certificates and certificates 9 32 issued to refund other certificates. The bill provides that, 9 33 to further secure the payment of the certificates, the board 9 34 of directors shall, by resolution, provide for the assessment 9 35 of an annual levy of a standby tax upon all taxable property 10 1 within the merged area, to be adjusted each year based on the 10 2 amount of revenues received and principal and interest due. 10 3 The bill provides that the revenues from the standby tax shall 10 4 be deposited in a special fund and shall be expended only for 10 5 the payment of principal of and interest on the certificates 10 6 issued, when the receipt of payment for program costs as 10 7 provided in the agreement is insufficient. The bill provides 10 8 that if payments are necessary and made from the special fund, 10 9 the amount of the payments shall be promptly repaid into the 10 10 special fund from the first available payments received for 10 11 program costs as provided in the agreement which are not 10 12 required for the payment of principal of or interest on 10 13 certificates due. The bill provides that no reserves may be 10 14 built up in this fund. 10 15 The bill provides that before certificates are issued, the 10 16 board of directors shall publish once a notice of its 10 17 intention to issue the certificates. The bill allows a 10 18 person, within 15 days after the publication of the notice, to 10 19 appeal the decision of the board of directors in proposing to 10 20 issue the certificates. The bill provides that the action of 10 21 the board of directors in determining to issue the 10 22 certificates is final unless the district court finds that the 10 23 board of directors has exceeded its legal authority. The bill 10 24 provides that an action shall not be brought which questions 10 25 the legality of the certificates, the power of the board of 10 26 directors to issue the certificates, the effectiveness of any 10 27 proceedings relating to the authorization of the project, or 10 28 the authorization and issuance of the certificates from and 10 29 after 15 days from the publication of the notice of intention 10 30 to issue. The bill provides that the board of directors shall 10 31 determine if revenues are sufficient to secure the faithful 10 32 performance of obligations in the agreement. 10 33 The bill provides that the department of economic 10 34 development in consultation with the department of education 10 35 shall coordinate the corporate consolidation relocation 11 1 program and adopt rules that the community college will use in 11 2 developing projects. The bill requires the department to 11 3 prepare an annual report for the governor and general assembly 11 4 on the activities of the corporate consolidation relocation 11 5 program. 11 6 The bill makes conforming amendments. 11 7 LSB 1837SS 80 11 8 tm/sh/8.1
Text: SF00294 Text: SF00296 Text: SF00200 - SF00299 Text: SF Index Bills and Amendments: General Index Bill History: General Index
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