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PAG LIN 1 1 DIVISION I 1 2 TECHNOLOGY TRANSFER AGENT 1 3 Section 1. NEW SECTION. 7.23 TECHNOLOGY TRANSFER 1 4 ADVISOR. 1 5 Two technology transfer advisors shall be appointed by the 1 6 governor, serve at the pleasure of the governor, and be 1 7 located at offices at the university of Iowa and Iowa state 1 8 university of science and technology. A technology transfer 1 9 advisor is not a state agency and is not subject to chapter 1 10 17A. A technology transfer advisor shall do all of the 1 11 following: 1 12 1. Facilitate the transfer of technology developed at the 1 13 university of Iowa, the university of northern Iowa, Iowa 1 14 state university of science and technology, community 1 15 colleges, and private colleges and universities. 1 16 2. Coordinate the technology transfer activities at each 1 17 of the public and private universities to encourage the 1 18 implementation of best practices in technology transfer, 1 19 establish measures of performance, and design programs of 1 20 continuous quality improvement for each technology transfer 1 21 office. 1 22 3. Establish technology transfer goals for the state. 1 23 4. Provide technical assistance to Iowa-based 1 24 entrepreneurs associated with or unrelated to the universities 1 25 under the control of the state board of regents regarding 1 26 technology transfer-related issues. The technical assistance 1 27 shall include assistance in the areas of patents and 1 28 licensing, business development and management, finance, 1 29 production, sales, and marketing. 1 30 5. Receive the technology transfer-related report 1 31 submitted by the state board of regents pursuant to section 1 32 262.9, subsection 31. 1 33 6. To ensure economic growth, serve as a coordinator 1 34 between Iowa-based businesses and businesses intending to 1 35 locate in Iowa. 2 1 Sec. 2. Section 15.108, Code 2003, is amended by adding 2 2 the following new subsection: 2 3 NEW SUBSECTION. 12. TECHNOLOGY TRANSFER ADVISORS. The 2 4 department shall cooperate with and provide staffing support 2 5 to the technology transfer advisors appointed pursuant to 2 6 section 7.23. 2 7 Sec. 3. Section 262.9, Code 2003, is amended by adding the 2 8 following new subsections: 2 9 NEW SUBSECTION. 29. Actively encourage and promote the 2 10 transfer of technology and research at universities under the 2 11 control of the board to commercial application, including the 2 12 start-up of business entities. 2 13 NEW SUBSECTION. 30. Give preference and technical support 2 14 to those faculty members and staff members desiring to obtain 2 15 licenses for intellectual property rights created in whole or 2 16 in part by the faculty member or staff member. However, such 2 17 preference shall not be construed to be a right accruing to 2 18 that faculty member or staff member. 2 19 NEW SUBSECTION. 31. By January 15 of each year, submit a 2 20 report to the governor, through the technology transfer 2 21 advisors, and the general assembly containing information from 2 22 the previous calendar year regarding all of the following: 2 23 a. Patents secured or applied for by each university under 2 24 the control of the board delineated by university and by 2 25 faculty member and staff member responsible for the research 2 26 or activity that resulted in the patent. In the initial 2 27 report filed by January 15, 2004, the board shall include an 2 28 inventory of patent portfolios with details concerning which 2 29 patents are creating financial benefit and the amount of 2 30 financial benefit and which patents are not creating financial 2 31 benefit and the amount invested in those patents. 2 32 b. Research grants secured by each university under the 2 33 control of the board from both public and private sources 2 34 delineated by university and by faculty member and staff 2 35 member. The board shall also include the same information for 3 1 grant applications that are denied. 3 2 c. The number of faculty members and staff members at each 3 3 university under the control of the board involved in a start- 3 4 up company. 3 5 d. The number of grant applications for research received 3 6 by each university under the control of the board for start-up 3 7 companies, the number of applications approved, and the number 3 8 of applications denied. 3 9 e. The number of agreements entered into by faculty 3 10 members and staff members at each university under the control 3 11 of the board with foundations affiliated with the universities 3 12 relating to business start-ups. 3 13 f. An accounting of the financial gain received by each 3 14 university under the control of the board relating to patents 3 15 sold, royalties received, licensing fees, and any other 3 16 remuneration received by the university related to technology 3 17 transfer. 3 18 g. The number of professional employees at each university 3 19 under the control of the board who assist in the transfer of 3 20 technology and research to commercial application. 3 21 Sec. 4. This division of this Act is repealed July 1, 3 22 2008. 3 23 DIVISION II 3 24 IOWA ECONOMIC DEVELOPMENT 3 25 LOAN AND CREDIT GUARANTEE FUND 3 26 Sec. 5. NEW SECTION. 15E.221 SHORT TITLE. 3 27 This division shall be known and may be cited as the "Iowa 3 28 Economic Development Loan and Credit Guarantee Fund Act". 3 29 Sec. 6. NEW SECTION. 15E.222 LEGISLATIVE FINDING – 3 30 PURPOSES. 3 31 1. The general assembly finds all of the following: 3 32 a. That small and medium-sized businesses, in general, and 3 33 certain targeted industry businesses and other qualified 3 34 businesses, in particular, may not qualify for conventional 3 35 financing. 4 1 b. That the limited availability of credit for export 4 2 transactions limits the ability of small and medium-sized 4 3 businesses in this state to compete in international markets. 4 4 c. That, to enhance competitiveness and foster economic 4 5 development, this state must focus on growth in certain 4 6 specific targeted industry businesses and other qualified 4 7 businesses, especially during a time of war. 4 8 d. That the challenge for the public economic sector is to 4 9 create an atmosphere conducive to economic growth, in 4 10 conjunction with financial institutions in the private sector, 4 11 which fill the gaps in credit availability and export finance, 4 12 and that allow the private sector to identify the lending 4 13 opportunities and foster decision making at the local level. 4 14 2. The general assembly declares the purposes of this 4 15 division to be all of the following: 4 16 a. To create incentives and assistance to increase the 4 17 flow of private capital to targeted industry businesses and 4 18 other qualified businesses. 4 19 b. To promote industrial modernization and technology 4 20 adoption. 4 21 c. To encourage the retention and creation of jobs. 4 22 d. To encourage the export of goods and services sold by 4 23 Iowa businesses in national and international markets. 4 24 Sec. 7. NEW SECTION. 15E.223 DEFINITIONS. 4 25 As used in this division, unless the context otherwise 4 26 requires: 4 27 1. "Financial institution" means an institution listed in 4 28 section 422.61, subsection 1, or such other financial 4 29 institution as defined by the department for purposes of this 4 30 division. 4 31 2. "Program" means the loan and credit guarantee program 4 32 established in this division. 4 33 3. "Qualified business" means an existing or proposed 4 34 business entity with an annual average number of employees not 4 35 exceeding two hundred employees. "Qualified business" does 5 1 not include businesses engaged primarily in retail sales, real 5 2 estate, or the provision of health care or other professional 5 3 services. "Qualified business" includes professional services 5 4 businesses that provide services to targeted industry 5 5 businesses or other entities within and outside of this state. 5 6 4. "Targeted industry business" means an existing or 5 7 proposed business entity, including an emerging small business 5 8 or qualified business which is operated for profit and which 5 9 has a primary business purpose of doing business in at least 5 10 one of the targeted industries designated by the department 5 11 which include life sciences, software and information 5 12 technology, advanced manufacturing, value-added agriculture, 5 13 and any other industry designated as a targeted industry by 5 14 the loan and credit guarantee advisory board. 5 15 Sec. 8. NEW SECTION. 15E.224 LOAN AND CREDIT GUARANTEE 5 16 PROGRAM. 5 17 1. The department shall, with the advice of the loan and 5 18 credit guarantee advisory board, establish and administer a 5 19 loan and credit guarantee program. The department, pursuant 5 20 to agreements with financial institutions, shall provide loan 5 21 and credit guarantees, or other forms of credit guarantees for 5 22 qualified businesses and targeted industry businesses for 5 23 eligible project costs. A loan or credit guarantee provided 5 24 under the program may stand alone or may be used in 5 25 conjunction with or to enhance other loans or credit 5 26 guarantees, offered by private, state, or federal entities. 5 27 However, the department shall not in any manner directly or 5 28 indirectly pledge the credit of the state. Eligible project 5 29 costs include expenditures for productive equipment and 5 30 machinery, working capital for operations and export 5 31 transactions, research and development, marketing, and such 5 32 other costs as the department may so designate. 5 33 2. A loan or credit guarantee or other form of credit 5 34 guarantee provided under the program to a participating 5 35 financial institution for a single qualified business or 6 1 targeted industry business shall not exceed one million 6 2 dollars in value. Loan or credit guarantees or other forms of 6 3 credit guarantees provided under the program to more than one 6 4 participating financial institution for a single qualified 6 5 business or targeted industry business shall not exceed ten 6 6 million dollars in value. 6 7 3. In administering the program, the department shall 6 8 consult and cooperate with financial institutions in this 6 9 state and with the loan and credit guarantee advisory board. 6 10 Administrative procedures and application procedures, as 6 11 practicable, shall be responsive to the needs of qualified 6 12 businesses, targeted industry businesses, and financial 6 13 institutions, and shall be consistent with prudent investment 6 14 and lending practices and criteria. 6 15 4. Each participating financial institution shall identify 6 16 and underwrite potential lending opportunities with qualified 6 17 businesses and targeted industry businesses. Upon a 6 18 determination by a participating financial institution that a 6 19 qualified business or targeted industry business meets the 6 20 underwriting standards of the financial institution, subject 6 21 to the approval of a loan or credit guarantee, the financial 6 22 institution shall submit the underwriting information and a 6 23 loan or credit guarantee application to the department. 6 24 5. The department, with the advice of the loan and credit 6 25 guarantee advisory board, shall adopt a loan or credit 6 26 guarantee application procedure for a financial institution on 6 27 behalf of a qualified business or targeted industry business. 6 28 6. Upon approval of a loan or credit guarantee, the 6 29 department shall enter into a loan or credit guarantee 6 30 agreement with the participating financial institution. The 6 31 agreement shall specify all of the following: 6 32 a. The fee to be charged to the financial institution. 6 33 b. The evidence of debt assurance of, and security for, 6 34 the loan or credit guarantee. 6 35 c. A loan or credit guarantee that does not exceed fifteen 7 1 years. 7 2 d. Any other terms and conditions considered necessary or 7 3 desirable by the department. 7 4 7. The department, with the advice of the loan and credit 7 5 guarantee advisory board, may adopt loan and credit guarantee 7 6 application procedures that allow a qualified business or 7 7 targeted industry business to apply directly to the department 7 8 for a preliminary guarantee commitment. A preliminary 7 9 guarantee commitment may be issued by the department subject 7 10 to the qualified business or targeted industry business 7 11 securing a commitment for financing from a financial 7 12 institution. The application procedures shall specify the 7 13 process by which a financial institution may obtain a final 7 14 loan and credit guarantee. 7 15 Sec. 9. NEW SECTION. 15E.225 TERMS – FEES. 7 16 1. When entering into a loan or credit guarantee 7 17 agreement, the department, with the advice of the loan and 7 18 credit guarantee advisory board, shall establish fees and 7 19 other terms for participation in the program by qualified 7 20 businesses and targeted industry businesses. 7 21 2. The department, with due regard for the possibility of 7 22 losses and administrative costs and with the advice of the 7 23 loan and credit guarantee advisory board, shall set fees and 7 24 other terms at levels sufficient to assure that the program is 7 25 self-financing. 7 26 3. For a preliminary guarantee commitment, the department 7 27 may charge a qualified business or targeted industry business 7 28 a preliminary guarantee commitment fee. The application fee 7 29 shall be in addition to any other fees charged by the 7 30 department under this section and shall not exceed one 7 31 thousand dollars for an application. 7 32 Sec. 10. NEW SECTION. 15E.226 LOAN AND CREDIT GUARANTEE 7 33 ADVISORY BOARD. 7 34 The department, in consultation with the superintendent of 7 35 banking, shall establish a loan and credit guarantee advisory 8 1 board. The advisory board shall provide the department with 8 2 technical advice regarding the administration of the program, 8 3 including the adoption of administrative rules pursuant to 8 4 chapter 17A. The advisory board shall review and provide 8 5 recommendations regarding all applications under the program. 8 6 Sec. 11. NEW SECTION. 15E.227 LOAN AND CREDIT GUARANTEE 8 7 FUND. 8 8 1. A loan and credit guarantee fund is created and 8 9 established as a separate and distinct fund in the state 8 10 treasury. Moneys in the fund shall only be used for purposes 8 11 provided in this section. The moneys in the fund are 8 12 appropriated to the department to be used for all of the 8 13 following purposes: 8 14 a. Payment of claims pursuant to loan and credit guarantee 8 15 agreements entered into under this division. 8 16 b. Payment of administrative costs of the department for 8 17 actual and necessary administrative expenses incurred by the 8 18 department in administering the program. 8 19 c. Purchase or buyout of superior or prior liens, 8 20 mortgages, or security interests. 8 21 2. Moneys in the loan and credit guarantee fund shall 8 22 consist of all of the following: 8 23 a. Moneys appropriated by the general assembly for that 8 24 purpose and any other moneys available to and obtained or 8 25 accepted by the department for placement in the fund. 8 26 b. Proceeds from collateral assigned to the department, 8 27 fees for guarantees, gifts, and moneys from any grant made to 8 28 the fund by any federal agency. 8 29 c. Moneys appropriated from the grow Iowa fund created in 8 30 section 15.115. 8 31 3. Moneys in the fund are not subject to section 8.33. 8 32 Notwithstanding section 12C.7, interest or earnings on the 8 33 moneys in the fund shall be credited to the fund. 8 34 4. The department shall only pledge moneys in the loan and 8 35 credit guarantee fund and not any other moneys of the 9 1 department. The department may pledge an amount not to exceed 9 2 a total of one hundred million dollars of moneys in the fund 9 3 to assure the repayment of loan and credit guarantees or other 9 4 extensions of credit made to or on behalf of qualified 9 5 businesses or targeted industry businesses for eligible 9 6 project costs. The department shall not pledge the credit or 9 7 taxing power of this state or any political subdivision of 9 8 this state or make debts payable out of any moneys except for 9 9 those in the loan and credit guarantee fund. 9 10 Sec. 12. This division of this Act is repealed July 1, 9 11 2008. 9 12 DIVISION III 9 13 MARKETING IOWA 9 14 Sec. 13. Section 15.108, subsection 9, Code 2003, is 9 15 amended by adding the following new paragraph: 9 16 NEW PARAGRAPH. g. Administer the marketing strategy 9 17 selected pursuant to section 15.121. 9 18 Sec. 14. NEW SECTION. 15.121 ECONOMIC DEVELOPMENT 9 19 MARKETING BOARD. 9 20 1. a. An economic development marketing board is 9 21 established consisting of seven members and is located for 9 22 administrative purposes within the department. The director 9 23 of the department shall provide office space, staff 9 24 assistance, and necessary supplies and equipment for the 9 25 board. In performing its functions, the board is performing a 9 26 public function on behalf of the state and is a public 9 27 instrumentality of the state. 9 28 b. The membership of the board shall be as follows: 9 29 (1) Three members with significant demonstrated experience 9 30 in marketing or advertising appointed by the governor. 9 31 (2) Four members with significant demonstrated experience 9 32 in marketing or advertising appointed by the following: 9 33 (a) The president of the senate. 9 34 (b) The minority leader of the senate. 9 35 (c) The speaker of the house of representatives. 10 1 (d) The minority leader of the house of representatives. 10 2 c. The appointments made by the governor shall comply with 10 3 sections 69.16 and 69.16A and shall be subject to confirmation 10 4 by the senate. 10 5 d. The chairperson and vice chairperson of the board shall 10 6 be elected by and from the board members listed in paragraph 10 7 "b". In case of the absence or disability of the chairperson 10 8 and vice chairperson, the members of the board shall elect a 10 9 temporary chairperson by a majority vote of those members who 10 10 are present and voting. 10 11 e. The members shall be appointed to three-year staggered 10 12 terms and the terms shall commence and end as provided by 10 13 section 69.19. If a vacancy occurs, a successor shall be 10 14 appointed to serve the unexpired term. A successor shall be 10 15 appointed in the same manner and subject to the same 10 16 qualifications as the original appointment to serve the 10 17 unexpired term. 10 18 f. A majority of the board constitutes a quorum. 10 19 2. The board shall do all of the following: 10 20 a. Organize. 10 21 b. Establish rules pursuant to chapter 17A necessary to 10 22 establish procedures for choosing a marketing strategy for the 10 23 department to administer. 10 24 c. Administer the approval process provided in subsection 10 25 3. 10 26 3. The board shall accept proposals for marketing 10 27 strategies for purposes of selecting a strategy for the 10 28 department to administer. The marketing strategies shall be 10 29 designed to market Iowa as a lifestyle, increase the 10 30 population of the state, increase the wealth of Iowans, and 10 31 expand and stimulate the state economy. 10 32 4. The department shall implement and administer the 10 33 marketing strategy selected by the economic development 10 34 marketing board as provided in section 15.108. The department 10 35 shall provide the board with assistance in implementing 11 1 administrative functions of the board and provide technical 11 2 assistance to the board. 11 3 Sec. 15. This division of this Act is repealed July 1, 11 4 2008. 11 5 DIVISION IV 11 6 INTERNET ECONOMIC DEVELOPMENT ASSISTANCE 11 7 Sec. 16. NEW SECTION. 15E.118 BUSINESS START-UP 11 8 INFORMATION – INTERNET WEB SITE. 11 9 The department shall provide information through an 11 10 internet web site and a toll-free telephone service to assist 11 11 persons interested in establishing a commercial facility or 11 12 engaging in a commercial activity. The information shall 11 13 include all of the following: 11 14 1. Assistance, information, and guidance for start-up 11 15 businesses. 11 16 2. Information gathered by the department pursuant to 11 17 section 15E.17, subsection 2. 11 18 3. Personal and corporate income tax information. 11 19 4. Information regarding financial assistance and 11 20 incentives available to businesses. 11 21 5. Workforce availability in the state presented in a 11 22 regional format. 11 23 Sec. 17. INTERNET WEB SITE DEVELOPMENT. In developing the 11 24 internet web site required in section 15E.118, the department 11 25 of economic development shall examine similar efforts in other 11 26 states and incorporate the best practices. 11 27 DIVISION V 11 28 GROW IOWA FUND 11 29 Sec. 18. NEW SECTION. 15.115 GROW IOWA FUND. 11 30 A grow Iowa fund is created in the state treasury under the 11 31 control of the department consisting of moneys appropriated to 11 32 the department. Moneys in the fund are not subject to section 11 33 8.33. Notwithstanding section 12C.7, interest or earnings on 11 34 moneys in the fund shall be credited to the fund. Moneys in 11 35 the fund are appropriated to the following for all of the 12 1 following purposes: 12 2 1. To the department for deposit in the loan and credit 12 3 guarantee fund created in section 15E.227, not more than an 12 4 aggregate total of one hundred million dollars. 12 5 2. To the department for purposes of administering the 12 6 marketing strategy selected by the economic development 12 7 marketing board pursuant to section 15.121, not more than an 12 8 aggregate total of forty-five million dollars. 12 9 3. To the governor's office for purposes of section 7.23, 12 10 not more than three hundred thousand dollars per year. 12 11 4. To the department for purposes of administering the 12 12 requirements of section 15E.118, not more than two hundred 12 13 thousand dollars per year for a period of two years. 12 14 DIVISION VI 12 15 URBAN RENEWAL 12 16 Sec. 19. Section 11.6, subsection 1, paragraph a, 12 17 unnumbered paragraph 1, Code 2003, is amended to read as 12 18 follows: 12 19 The financial condition and transactions of all cities and 12 20 city offices, counties, county hospitals organized under 12 21 chapters 347 and 347A, memorial hospitals organized under 12 22 chapter 37, entities organized under chapter 28E having gross 12 23 receipts in excess of one hundred thousand dollars in a fiscal 12 24 year, merged areas, area education agencies, and all school 12 25 offices in school districts, shall be examined at least once 12 26 each year, except that cities having a population of seven 12 27 hundred or more but less than two thousand shall be examined 12 28 at least once every four years, and cities having a population 12 29 of less than seven hundred may be examined as otherwise 12 30 provided in this section. However, cities having a population 12 31 of less than two thousand shall be examined for each fiscal 12 32 year ending on or after June 30, 2004, if, for the fiscal year 12 33 and pursuant to an urban renewal plan adopted by the city, the 12 34 city had taxable valuation described in section 403.19, 12 35 subsection 2, of one million dollars or more. 13 1 PARAGRAPH DIVIDED. The examination shall cover the fiscal 13 2 year next preceding the year in which the audit is conducted. 13 3 The examination of school offices shall include an audit of 13 4 all school funds, the certified annual financial report, and 13 5 the certified enrollment as provided in section 257.6. 13 6 Differences in certified enrollment shall be reported to the 13 7 department of management. 13 8 Sec. 20. Section 403.5, subsection 1, Code 2003, is 13 9 amended by adding the following new unnumbered paragraph: 13 10 NEW UNNUMBERED PARAGRAPH. In a municipality with a 13 11 population of twenty thousand or less, the actual value of 13 12 taxable property described in section 403.19, subsection 2, 13 13 located in all urban renewal areas in any year in which one or 13 14 more urban renewal plans are in force shall not exceed an 13 15 amount equal to twenty-five percent of the total actual value 13 16 of taxable property in the municipality. In a municipality 13 17 with a population of over twenty thousand, the actual value of 13 18 taxable property described in section 403.19, subsection 2, 13 19 located in all urban renewal areas in any year in which one or 13 20 more urban renewal plans are in force shall not exceed an 13 21 amount equal to fifteen percent of the total actual value of 13 22 taxable property in the municipality. For purposes of this 13 23 paragraph, an urban renewal area of a city includes urban 13 24 renewal areas established by the city in the area of operation 13 25 of the city and an urban renewal area of a county includes 13 26 urban renewal areas established by a county in the area of 13 27 operation of the county. For purposes of this paragraph, the 13 28 total actual value of taxable property in a city includes only 13 29 the actual value of taxable property within the corporate 13 30 limits of the city regardless of where the urban renewal area 13 31 established by the city is located. On or before January 1 of 13 32 each year, the county auditor shall make the adjustments in 13 33 valuation necessary to achieve the limitations in this 13 34 paragraph for the fiscal year beginning July 1 following the 13 35 date of adjustment. However, if because of the limitation in 14 1 this paragraph, the funds to be received by a municipality 14 2 will be insufficient to pay the amount certified to the county 14 3 auditor in section 403.19, subsection 5, for the following 14 4 fiscal year, the auditor shall adjust the reduction to the 14 5 amount of incremental valuation only to the extent needed to 14 6 pay such amount certified. This exception to the valuation 14 7 limitation in this paragraph does not apply to payment of 14 8 loans, advances, bonds, or other indebtedness refunded or 14 9 originally incurred on or after July 1, 2004. 14 10 Sec. 21. Section 403.5, subsection 2, Code 2003, is 14 11 amended to read as follows: 14 12 2. The municipality may itself prepare or cause to be 14 13 prepared an urban renewal plan; or any person or agency, 14 14 public or private, may submit such a plan to a municipality. 14 15 Prior to its approval of an urban renewal plan, the local 14 16 governing body shall submit such plan to the planning 14 17 commission of the municipality, if any, for review and 14 18 recommendations as to its conformity with the general plan for 14 19 the development of the municipality as a whole. The planning 14 20 commission shall submit its written recommendations with 14 21 respect to the proposed urban renewal plan to the local 14 22 governing body within thirty days after receipt of the plan 14 23 for review.Upon receipt of the recommendations of the14 24planning commission or, if no recommendations are received14 25within the thirty days, then, without such recommendations,14 26the local governing body may proceed with the hearing on the14 27proposed urban renewal plan prescribed by subsection 3.14 28 Prior to its approval of an urban renewal plan which 14 29 provides for a division of revenue pursuant to section 403.19, 14 30 the municipality shall mail the proposed plan by regular mail 14 31 to the affected taxing entities. The municipality shall 14 32 include with the proposed plan notification of a consultation 14 33 to be held between the municipality and affected taxing 14 34 entities prior to the public hearing on the urban renewal 14 35 plan. Each affected taxing entity may appoint a 15 1 representative to attend the consultation. The consultation 15 2 may include a discussion of the estimated growth in valuation 15 3 of taxable property included in the proposed urban renewal 15 4 area, the fiscal impact of the division of revenue on the 15 5 affected taxing entities, the estimated impact on the 15 6 provision of services by each of the affected taxing entities 15 7 in the proposed urban renewal area, and the duration of any 15 8 bond issuance included in the plan. The designated 15 9 representative of the affected taxing entity may make written 15 10 recommendations for modification to the proposeddivision of15 11revenueurban renewal plan no later than seven days following 15 12 the date of the consultation. The representative of the 15 13 municipality shall, no later than seven days prior to the 15 14 public hearing on the urban renewal plan, submit a written 15 15 response to the affected taxing entity addressing the 15 16 recommendations for modification to the proposeddivision of15 17revenueurban renewal plan. 15 18 If the municipality is a city, the board of supervisors of 15 19 each affected taxing entity that is a county must, upon 15 20 conclusion of the consultation process, adopt a resolution 15 21 approving or rejecting the proposed urban renewal plan. Upon 15 22 receipt of the recommendations of the planning commission or, 15 23 if no recommendations are received within the thirty days, 15 24 then, without such recommendations, and upon receipt of county 15 25 board of supervisors resolutions approving the urban renewal 15 26 plan, the governing body of the city may proceed with the 15 27 hearing on the proposed urban renewal plan pursuant to 15 28 subsection 3. Without the receipt of such a resolution 15 29 approving the urban renewal plan from each county that is an 15 30 affected taxing entity, the governing body of the city shall 15 31 not proceed with the proposed urban renewal plan. 15 32 Sec. 22. Section 403.5, subsections 5, 6, and 7, Code 15 33 2003, are amended to read as follows: 15 34 5. An urban renewal plan may bemodifiedamended at any 15 35 time: Provided, that ifmodifiedamended after the lease or 16 1 sale by the municipality of real property in the urban renewal 16 2 project area, suchmodificationamendment may be conditioned 16 3 upon such approval of the owner, lessee, or successor in 16 4 interest as the municipality may deem advisable, and in any 16 5 event suchmodificationamendment shall be subject to such 16 6 rights at law or in equity as a lessee or purchaser, or a 16 7 lessee's or purchaser's successor or successors in interest, 16 8 may be entitled to assert.TheA project may be added to an 16 9 urban renewal plan only by an amendment to the plan. 16 10 Territory may be added to, or severed from, an urban renewal 16 11 area only by an amendment to the urban renewal plan. When 16 12 amending an urban renewal plan, the municipality shall comply 16 13 with the notification and consultation process provided in 16 14 this section, including the requirement that an affected 16 15 taxing entity that is a county approve the proposed amendment 16 16 if the municipality is a city, prior to the approval of any 16 17 amendmentor modificationto an adopted urban renewal plan if 16 18 such amendmentor modificationprovides for refunding bonds or 16 19 refinancing resulting in an increase in debt service or 16 20 provides for the issuance of bonds or other indebtedness, to 16 21 be funded primarily in the manner provided in section 403.19, 16 22 or if such amendment proposes to add a project to an urban 16 23 renewal plan or proposes to add territory to an urban renewal 16 24 area or proposes to sever territory from an urban renewal 16 25 area. 16 26 6. Upon the approval by a municipality of an urban renewal 16 27 plan or of anymodification thereofamendment to an urban 16 28 renewal plan, such plan ormodificationamendment shall be 16 29 deemed to be in full force and effect for the respective urban 16 30 renewal area, and the municipality may then cause such plan or 16 31modificationamendment to be carried out in accordance with 16 32 its terms. 16 33 7. Notwithstanding any other provisions of this chapter, 16 34 where the local governing body certifies that an area is in 16 35 need of redevelopment or rehabilitation as a result of a 17 1 flood, fire, hurricane, earthquake, storm, or other 17 2 catastrophe respecting which the governor of the state has 17 3 certified the need for disaster assistance under Pub. L. No. 17 4 875, Eighty-first Congress, 64 Stat. L. 1109; 42 U.S.C. } 17 5 1855-1855g or other federal law, the local governing body may 17 6 approve an urban renewal plan and an urban renewal project 17 7 with respect to such area without regard to the provisions of 17 8 subsection 4 and without regard to provisions of this section 17 9 requiring notification and consultation and approval by the 17 10 county if the municipality is a city, a general plan for the 17 11 municipality, and a public hearing on the urban renewal plan 17 12 or project. 17 13 Sec. 23. Section 403.5, Code 2003, is amended by adding 17 14 the following new subsection: 17 15 NEW SUBSECTION. 8. The designation of an urban renewal 17 16 area pursuant to this section shall be limited in duration to 17 17 twenty years counting from July 1 of the first fiscal year in 17 18 which the municipality receives moneys from a division of 17 19 revenue pursuant to section 403.19. However, the duration of 17 20 an urban renewal area established before July 1, 2003, shall 17 21 be limited to twenty years counting from July 1 of the first 17 22 fiscal year in which the municipality received moneys from a 17 23 division of revenue pursuant to section 403.19, or shall end 17 24 June 30 of the fiscal year in which the amount of loans, 17 25 advances, indebtedness, or bonds due and owing on the 17 26 effective date of this section of this Act is paid, whichever 17 27 is later. Indebtedness incurred after the effective date of 17 28 this section of this Act to refund bonds issued prior to the 17 29 effective date of this section of this Act shall not be 17 30 considered loans, advances, indebtedness, or bonds due and 17 31 owing on the effective date of this section of this Act. An 17 32 amendment to an urban renewal plan shall not result in an 17 33 extension of the durational limitation imposed in this 17 34 subsection. 17 35 Sec. 24. Section 403.6, subsection 6, paragraph b, Code 18 1 2003, is amended to read as follows: 18 2 b. Urban renewal plans adopted, or amended, pursuant to 18 3 the requirements of section 403.5; 18 4 Sec. 25. Section 403.6, subsection 12, Code 2003, is 18 5 amended to read as follows: 18 6 12. To approve and amend urban renewal plans, subject to 18 7 the requirements of section 403.5. 18 8 Sec. 26. Section 403.17, subsection 10, Code 2003, is 18 9 amended to read as follows: 18 10 10. "Economic development area" means an area of a 18 11 municipality designated by the local governing body as 18 12 appropriate for commercial and industrial enterprises, public 18 13 improvements related to housing and residential development, 18 14 or construction of housing and residential development for low 18 15 and moderate income families, including single or multifamily 18 16 housing.If an urban renewal plan for an urban renewal area18 17is based upon a finding that the area is an economic18 18development area and that no part contains slum or blighted18 19conditions, then the division of revenue provided in section18 20403.19 and stated in the plan shall be limited to twenty years18 21from the calendar year following the calendar year in which18 22the municipality first certifies to the county auditor the18 23amount of any loans, advances, indebtedness, or bonds which18 24qualify for payment from the division of revenue provided in18 25section 403.19.Such designated area shall not include 18 26 agricultural land, including land which is part of a century 18 27 farm, unless the owner of the agricultural land or century 18 28 farm agrees to include the agricultural land or century farm 18 29 in the urban renewal area. For the purposes of this 18 30 subsection, "century farm" means a farm in which at least 18 31 forty acres of such farm have been held in continuous 18 32 ownership by the same family for one hundred years or more. 18 33 Sec. 27. Section 403.17, Code 2003, is amended by adding 18 34 the following new subsection: 18 35 NEW SUBSECTION. 12A. "Indebtedness" includes, but is not 19 1 limited to, a written agreement to suspend, abate, exempt, 19 2 rebate, refund, or reimburse property taxes or to provide a 19 3 grant for property taxes paid. 19 4 Sec. 28. Section 403.17, subsection 23, Code 2003, is 19 5 amended to read as follows: 19 6 23. "Urban renewal area" means a slum area, blighted area, 19 7 economic development area, or combination of the areas, which 19 8 the local governing body designates as appropriate for an 19 9 urban renewal project and which meets the maximum valuation 19 10 limitation on the size of the area in section 403.5, 19 11 subsection 1. 19 12 Sec. 29. Section 403.17, subsection 25, Code 2003, is 19 13 amended by adding the following new unnumbered paragraph: 19 14 NEW UNNUMBERED PARAGRAPH. An urban renewal project shall 19 15 not include undertakings or activities relating to a business 19 16 which is or will be located in the area of operation of a 19 17 municipality if the business has closed or reduced its 19 18 operation in one area of the state and relocated substantially 19 19 the same operation into the area of operation of the 19 20 municipality unless the governing body of the county where the 19 21 business is currently located, if the business is located in 19 22 the unincorporated area, or the governing body of the city 19 23 where the business is currently located, if the business is 19 24 located within the corporate boundaries of a city, adopts a 19 25 resolution approving the relocation. 19 26 Sec. 30. Section 403.19, subsection 2, Code 2003, is 19 27 amended to read as follows: 19 28 2. That portion of the taxes each year in excess of such 19 29 amount shall be allocated to and when collected be paid into a 19 30 special fund of the municipality to pay the principal of and 19 31 interest on loans, moneys advanced to, or indebtedness, 19 32 whether funded, refunded, assumed, or otherwise, including 19 33 bonds issued under the authority of section 403.9, subsection 19 34 1, incurred by the municipality to finance or refinance, in 19 35 whole or in part, an urban renewal project within the area, 20 1 and to provide assistance for low and moderate income family 20 2 housing as provided in section 403.22, except that taxes for 20 3 the regular and voter-approved physical plant and equipment 20 4 levy of a school district imposed pursuant to section 298.2, 20 5andtaxes for the payment of bonds and interest of each taxing 20 6 district, and, beginning with fiscal years beginning on or 20 7 after July 1, 2007, the foundation property tax imposed 20 8 pursuant to section 257.3, subsection 1, must be collected 20 9 against all taxable property within the taxing district 20 10 without limitation by the provisions of this subsection. 20 11 However, all or a portion of the taxes for the physical plant 20 12 and equipment levy shall be paid by the school district to the 20 13 municipality ifthe auditor certifies to the school district20 14by July 1 the amount of such levy that is necessary to pay the20 15principal and interest on bonds issued by the municipality to20 16finance an urban renewal project, which bonds were issued20 17before July 1, 2001. Indebtedness incurred to refund bonds20 18issued prior to July 1, 2001, shall not be included in the20 19certification. Such school district shall pay over the amount20 20certified by November 1 and May 1 of the fiscal year following20 21certification to the school districtsubsection 7 applies. 20 22 Unless and until the total assessed valuation of the taxable 20 23 property in an urban renewal area exceeds the total assessed 20 24 value of the taxable property in such area as shown by the 20 25 last equalized assessment roll referred to in subsection 1, 20 26 all of the taxes levied and collected upon the taxable 20 27 property in the urban renewal area shall be paid into the 20 28 funds for the respective taxing districts as taxes by or for 20 29 the taxing districts in the same manner as all other property 20 30 taxes. When such loans, advances, indebtedness, and bonds, if 20 31 any, and interest thereon, have been paid, all moneys 20 32 thereafter received from taxes upon the taxable property in 20 33 such urban renewal area shall be paid into the funds for the 20 34 respective taxing districts in the same manner as taxes on all 20 35 other property. 21 1 Sec. 31. Section 403.19, subsection 5, Code 2003, is 21 2 amended to read as follows: 21 3 5. A municipality shall certify to the county auditor on 21 4 or before December 1 of each year the amount of loans, 21 5 advances, indebtedness, or bonds which qualify for payment 21 6 during the fiscal year beginning in the following calendar 21 7 year from the special fund referred to in subsection 2, and 21 8 the filing of the certificate shall make it a duty of the 21 9 auditor to provide for the division of taxes ineach21 10subsequentthe amount certified for the fiscal yearuntil the21 11amount of the loans, advances, indebtedness, or bonds is paid21 12to the special fundbeginning in the following calendar year. 21 13 The municipality shall include in the certification the total 21 14 amount, as of December 1, of loans, advances, indebtedness, or 21 15 bonds which qualify for payment from the special fund. In any 21 16 year, the county auditor shall, upon receipt of a certified 21 17 request from a municipality filed on or before December 1, 21 18 increase the amount to be allocated under subsection 1 in 21 19 order to reduce the amount to be allocated in the following 21 20 fiscal year to the special fund, to the extent that the 21 21 municipality does not request allocation to the special fund 21 22 of the full portion of taxes which could be collected. Upon 21 23 receipt of a certificate from a municipality, the auditor 21 24 shall mail a copy of the certificate to each affected taxing 21 25 district. 21 26 Sec. 32. Section 403.19, subsection 7, Code 2003, is 21 27 amended to read as follows: 21 28 7. For any fiscal year, a municipality may certify to the 21 29 county auditor for physical plant and equipment revenue 21 30 necessary for payment of principal and interest on bonds 21 31 issued prior to July 1, 2001, only if the municipality 21 32 certified for such revenue for the fiscal year beginning July 21 33 1, 2000. A municipality shall not certify to the county 21 34 auditor for a school district more than the amount the 21 35 municipality certified for the fiscal year beginning July 1, 22 1 2000. If for any fiscal year a municipality fails to certify 22 2 to the county auditor for a school district by July 1 the 22 3 amount of physical plant and equipment revenue necessary for 22 4 payment of principal and interest on such bonds, as provided 22 5 in subsection 2, the school district is not required to pay 22 6 over the revenue to the municipality. The county auditor 22 7 shall immediately certify to the school district the amount of 22 8 such levy that is necessary to pay the principal and interest 22 9 on bonds issued by the municipality to finance an urban 22 10 renewal project, which bonds were issued before July 1, 2001. 22 11 Indebtedness incurred to refund bonds issued prior to July 1, 22 12 2001, shall not be included in the certification. Such school 22 13 district shall pay over the amount certified by November 1 and 22 14 May 1 of the fiscal year following certification to the school 22 15 district. 22 16 PARAGRAPH DIVIDED. If a school district and a municipality 22 17 are unable to agree on the amount of physical plant and 22 18 equipment revenue certified by the municipality for the fiscal 22 19 year beginning July 1, 2001, either party may request that the 22 20 state appeal board review and finally pass upon the amount 22 21 that may be certified. Such appeals must be presented in 22 22 writing to the state appeal board no later than July 31 22 23 following certification. The burden shall be on the 22 24 municipality to prove that the physical plant and equipment 22 25 levy revenue is necessary to pay principal and interest on 22 26 bonds issued prior to July 1, 2001. A final decision must be 22 27 issued by the state appeal board no later than the following 22 28 October 1. 22 29 Sec. 33. Section 403.19, Code 2003, is amended by adding 22 30 the following new subsection: 22 31 NEW SUBSECTION. 9. Effective for the fiscal year 22 32 beginning July 1, 2005, and for all subsequent fiscal years, 22 33 property tax revenues divided pursuant to this section and 22 34 paid into the special fund in subsection 2 shall not be used 22 35 by a municipality to suspend, abate, exempt, rebate, refund, 23 1 or reimburse property taxes, or provide a grant for property 23 2 taxes paid, in an urban renewal area if the property taxes are 23 3 imposed against retail property. 23 4 Sec. 34. Section 403.20, Code 2003, is amended to read as 23 5 follows: 23 6 403.20 PERCENTAGE OF ADJUSTMENT CONSIDERED IN VALUE 23 7 ASSESSMENT. 23 8 1.InExcept as otherwise provided in subsection 2, in 23 9 determining the assessed value of property within an urban 23 10 renewal area which is subject to a division of tax revenues 23 11 pursuant to section 403.19, the difference between the actual 23 12 value of the property as determined by the assessor each year 23 13 and the percentage of adjustment certified for that year by 23 14 the director of revenue and finance on or before November 1 23 15 pursuant to section 441.21, subsection 9, multiplied by the 23 16 actual value of the property as determined by the assessor, 23 17 shall be subtracted from the actual value of the property as 23 18 determined pursuant to section 403.19, subsection 1. If the 23 19 assessed value of the property as determined pursuant to 23 20 section 403.19, subsection 1, is reduced to zero, the 23 21 additional valuation reduction shall be subtracted from the 23 22 actual value of the property as determined by the assessor. 23 23 2. This subsection applies to urban renewal areas 23 24 established pursuant to an urban renewal plan adopted on or 23 25 after July 1, 2003, and any amendments thereto, and to 23 26 territory amended into an urban renewal area established 23 27 pursuant to an urban renewal plan adopted before July 1, 2003, 23 28 if such amendment adding territory was adopted on or after 23 29 July 1, 2003. In determining the assessed value of property 23 30 within an urban renewal area which is subject to a division of 23 31 tax revenues pursuant to section 403.19, the difference 23 32 between the actual value of the property as determined by the 23 33 assessor each year and the percentage of adjustment certified 23 34 for that year by the director of revenue and finance on or 23 35 before November 1 pursuant to section 441.21, subsection 9, 24 1 multiplied by the actual value of the property as determined 24 2 by the assessor, shall be subtracted from the actual value of 24 3 the property in the ratio that the amount of the property 24 4 value as determined pursuant to section 403.19, subsection 1, 24 5 bears to the total value of the property, and in the ratio 24 6 that the amount of the property value as determined in section 24 7 403.19, subsection 2, bears to the total value of the 24 8 property. If the assessed value of the property as determined 24 9 pursuant to section 403.19, subsection 1, is reduced to zero, 24 10 the additional valuation reduction shall be subtracted from 24 11 the actual value of the property as determined in section 24 12 403.19, subsection 2. 24 13 Sec. 35. EFFECTIVE AND RETROACTIVE APPLICABILITY DATES. 24 14 1. The sections of this division of this Act amending 24 15 section 403.5, subsection 1, and section 403.17, subsection 24 16 23, take effect July 1, 2003, and apply retroactively to the 24 17 assessment year beginning January 1, 2003, for urban renewal 24 18 areas established before, on, or after the effective date of 24 19 these sections of this division of this Act. 24 20 2. The section of this division of this Act amending 24 21 section 403.5, subsection 2, being deemed of immediate 24 22 importance, takes effect upon enactment and applies to urban 24 23 renewal plans proposed on or after the effective date. 24 24 3. The section of this division of this Act amending 24 25 section 403.5, subsections 5, 6, and 7, being deemed of 24 26 immediate importance, takes effect upon enactment and applies 24 27 to amendments to urban renewal plans, if such amendments are 24 28 proposed on or after the effective date of this section of 24 29 this division of this Act. 24 30 4. The sections of this division of this Act enacting 24 31 section 403.5, subsection 8, amending section 403.17, 24 32 subsections 10 and 25, enacting section 403.17, subsection 24 33 12A, and amending section 403.19, subsection 5, take effect 24 34 July 1, 2003, and apply to urban renewal plans adopted and 24 35 urban renewal areas established before, on, or after the 25 1 effective date of these sections of this division of this Act. 25 2 5. The sections of this division of this Act amending 25 3 section 403.19, subsections 2 and 7, take effect July 1, 2006, 25 4 and apply to fiscal years beginning on or after July 1, 2007. 25 5 6. The section of this division of this Act enacting 25 6 section 403.19, subsection 9, applies to urban renewal areas 25 7 established before, on, or after July 1, 2003. 25 8 DIVISION VII 25 9 Sec. 38. CONTINGENT EFFECTIVENESS. Divisions I, II, III, 25 10 IV, and V of this Act shall not be effective unless an 25 11 appropriation is made for deposit in the grow Iowa fund. 25 12 EXPLANATION 25 13 This bill relates to economic development by creating a 25 14 technology transfer advisor, creating a loan and credit 25 15 guarantee program and fund, creating an economic development 25 16 marketing board, providing for a business start-up information 25 17 internet web site, creating a grow Iowa fund, making 25 18 appropriations and related tax changes, making changes to 25 19 urban renewal law and related taxes, and providing effective 25 20 and retroactive applicability dates. 25 21 DIVISION I – This division of the bill relates to the 25 22 creation of a position of technology transfer advisor. 25 23 The division requires the governor to appoint two 25 24 technology transfer advisors located at offices at the 25 25 university of Iowa and Iowa state university of science and 25 26 technology. The division provides that the advisors shall do 25 27 all of the following: 25 28 1. Facilitate the transfer of technology developed by 25 29 state universities, community colleges, and private colleges 25 30 and universities. 25 31 2. Coordinate the technology transfer activities at each 25 32 of the public and private universities to encourage the 25 33 implementation of best practices in technology transfer, 25 34 establish measures of performance, and design programs of 25 35 continuous quality improvement for each technology transfer 26 1 office. 26 2 3. Establish technology transfer goals for the state. 26 3 4. Provide technical assistance to Iowa-based 26 4 entrepreneurs associated with or unrelated to the state 26 5 universities regarding technology transfer-related issues. 26 6 5. Receive the technology transfer-related report 26 7 submitted by the state board of regents. 26 8 6. Serve as a coordinator between Iowa-based businesses 26 9 and businesses intending to locate in Iowa. 26 10 The division requires the department of economic 26 11 development to cooperate with and provide staffing support to 26 12 the technology transfer advisors. 26 13 The division requires the state board of regents to 26 14 actively encourage and promote the transfer of technology and 26 15 research at the universities under the board's control to 26 16 commercial application. The division requires the state board 26 17 of regents to give preference and technical support to those 26 18 faculty members and staff members desiring to obtain licenses 26 19 for intellectual property rights created in whole or in part 26 20 by the faculty member or staff member. The division requires 26 21 the state board of regents to annually submit a report to the 26 22 general assembly and the governor regarding technology 26 23 transfer-related information. 26 24 This division of the bill is repealed July 1, 2008. 26 25 DIVISION II – This division of the bill creates a loan and 26 26 credit guarantee program and fund. 26 27 The division requires the department of economic 26 28 development to establish and administer a loan and credit 26 29 guarantee program designed to, through agreements with 26 30 financial institutions, provide loan and credit guarantees, 26 31 and other forms of credit guarantees for qualified businesses 26 32 and targeted industry businesses for eligible project costs. 26 33 The division provides that a loan or credit guarantee or other 26 34 form of credit guarantee provided under the program to a 26 35 participating financial institution for a single qualified 27 1 business or targeted industry business shall not exceed $1 27 2 million. Such guarantees to more than one participating 27 3 financial institution for a single business shall not exceed 27 4 $10 million. The division provides that, in administering the 27 5 program, the department shall consult and cooperate with 27 6 financial institutions in this state and with the loan and 27 7 credit guarantee advisory board. 27 8 The division provides that each participating financial 27 9 institution shall identify and underwrite potential lending 27 10 opportunities with qualified businesses and targeted industry 27 11 businesses. The division provides that, upon a determination 27 12 by a participating financial institution that a qualified 27 13 business or targeted industry business meets the underwriting 27 14 standards for the approval of a loan or credit guarantee, the 27 15 financial institution shall submit the underwriting 27 16 information and a loan or credit guarantee application to the 27 17 department. 27 18 The division provides that the department shall enter into 27 19 an agreement with the participating financial institution upon 27 20 approval of an application under the program. 27 21 The division provides for a preliminary guarantee 27 22 commitment application process where a qualified business or 27 23 targeted industry business applies directly to the department. 27 24 The division allows the department to establish fees in 27 25 relation to the program. 27 26 The division requires the department, in consultation with 27 27 the superintendent of banking, to establish a loan and credit 27 28 guarantee advisory board to provide the department with 27 29 technical advice regarding the administration of the program. 27 30 The division requires the advisory board to review and provide 27 31 recommendations regarding all applications under the program. 27 32 The division creates a loan and credit guarantee fund as a 27 33 separate and distinct fund in the state treasury to only be 27 34 used for specific purposes under the program. The division 27 35 provides that the department shall only pledge moneys in the 28 1 loan and credit guarantee fund and not any other moneys of the 28 2 department. The division allows the department to pledge an 28 3 amount not to exceed a total of $100 million of moneys in the 28 4 fund to assure the repayment of loan and credit guarantees or 28 5 other extensions of credit made under the program. The 28 6 division prohibits the department from pledging the credit or 28 7 taxing power of this state or any political subdivision of 28 8 this state or make debts payable out of any moneys except for 28 9 those in the loan and credit guarantee fund. 28 10 This division of the bill is repealed July 1, 2008. 28 11 DIVISION III – This division of the bill creates an 28 12 economic development marketing board. 28 13 The division establishes an economic development marketing 28 14 board consisting of seven members and is located for 28 15 administrative purposes within the department. The division 28 16 provides that the board shall accept proposals for marketing 28 17 strategies for purposes of selecting a strategy for the 28 18 department of economic development to administer. The 28 19 division provides that the marketing strategies shall be 28 20 designed to market Iowa as a lifestyle, increase the 28 21 population of the state, increase the wealth of Iowans, and 28 22 expand and stimulate the state economy. 28 23 This division of the bill is repealed July 1, 2008. 28 24 DIVISION IV – This division of the bill provides for a 28 25 business start-up information internet web site and toll-free 28 26 telephone number. 28 27 The division requires the department of economic 28 28 development to provide information through an internet web 28 29 site and toll-free telephone number to assist persons 28 30 interested in establishing a commercial facility or engaging 28 31 in a commercial activity. The division requires the 28 32 department to examine similar efforts in other states and 28 33 incorporate the best practices in developing the internet web 28 34 site. 28 35 DIVISION V – This division of the bill creates a grow Iowa 29 1 fund. 29 2 The division appropriates moneys in the fund to all of the 29 3 following for all of the following purposes: 29 4 1. To the department of economic development for deposit 29 5 in the loan and credit guarantee fund, not more than $100 29 6 million. 29 7 2. To the department of economic development for purposes 29 8 of administering the marketing strategy selected by the 29 9 economic development marketing board, not more than $45 29 10 million. 29 11 3. To the governor's office for purposes of the technology 29 12 transfer agents, not more than $300,000 per year. 29 13 4. To the department of economic development for purposes 29 14 of administering the business start-up information internet 29 15 web site, not more $200,000 per year for a period of two 29 16 years. 29 17 DIVISION VI – This division of the bill makes several 29 18 changes to the urban renewal and tax increment financing law. 29 19 The division provides that cities having a population of 29 20 less than 2,000 shall be audited for each fiscal year ending 29 21 on or after June 30, 2004, if the city has established an 29 22 urban renewal area and the incremental valuation for purposes 29 23 of dividing revenue is $1 million or more. Currently, cities 29 24 with a population of 700 but less than 2,000 have their 29 25 accounts audited every four years and cities of less than 700 29 26 population are not audited except under certain circumstances. 29 27 The division limits the amount of actual value of taxable 29 28 property in an urban renewal increment in municipalities of 29 29 20,000 or less to an amount equal to 25 percent of the total 29 30 actual value of taxable property in the municipality. The 29 31 division limits the amount of actual value of taxable property 29 32 in an urban renewal increment in municipalities of over 20,000 29 33 to an amount equal to 15 percent of the total actual value of 29 34 taxable property in the municipality. However, the division 29 35 provides that if all or a portion of the valuation reduced 30 1 because of the limitation is needed to pay debt incurred 30 2 before July 1, 2004, the municipality may capture that value 30 3 needed. This section of the division takes effect July 1, 30 4 2003, and applies retroactively to the assessment year 30 5 beginning January 1, 2003, for urban renewal areas established 30 6 before, on, or after the effective date. 30 7 The division provides that a city proposing an urban 30 8 renewal plan, or amending an existing plan, shall not proceed 30 9 unless the affected taxing entities that are counties, by 30 10 resolution, approve the proposed plan or amendment. The 30 11 division also provides that a project may be added to a plan 30 12 or territory added to or severed from an urban renewal area 30 13 only by an amendment to the urban renewal plan. This portion 30 14 of the division takes effect upon enactment and applies to 30 15 urban renewal plans proposed on or after the effective date 30 16 and to amendments to any urban renewal plan, if such 30 17 amendments are proposed on or after the effective date. 30 18 The division limits urban renewal areas to 20 years in 30 19 duration counting from July 1 of the first fiscal year in 30 20 which the municipality receives moneys from a division of 30 21 revenue. However, the duration of an urban renewal area 30 22 established before July 1, 2003, is 20 years from the first 30 23 fiscal year the municipality receives moneys from a division 30 24 of revenue or the year in which indebtedness is retired, 30 25 whichever is later. Indebtedness incurred after the effective 30 26 date of this portion of the division to refund bonds issued 30 27 prior to the effective date of this portion of the division 30 28 shall not be considered loans, advances, indebtedness, or 30 29 bonds due and owing on the effective date of this portion of 30 30 the division. This portion of the division takes effect July 30 31 1, 2003, and applies to urban renewal areas established 30 32 before, on, or after the effective date of this portion of the 30 33 division. 30 34 The division defines "indebtedness" to include a written 30 35 agreement to suspend, abate, exempt, rebate, refund, or 31 1 reimburse property taxes or to provide a grant for property 31 2 taxes paid. This portion of the division takes effect July 1, 31 3 2003, and applies to urban renewal plans adopted, and urban 31 4 renewal areas established, before, on, or after the effective 31 5 date. Effective for fiscal years beginning on or after July 31 6 1, 2005, the division prohibits the use of such agreements for 31 7 property taxes on retail property. 31 8 The division amends the definition of "urban renewal 31 9 project" to provide that it does not include activities or 31 10 undertakings relating to a business which is or will be 31 11 located in the area of operation of a municipality if the 31 12 business has closed or reduced its operation in one area of 31 13 the state and relocated substantially the same operation into 31 14 the area of operation of the municipality unless the governing 31 15 body of the county where the business is currently located, if 31 16 the business is located in the unincorporated area, or the 31 17 governing body of the city where the business is currently 31 18 located, if the business is located within the corporate 31 19 boundaries of a city, adopts a resolution approving the 31 20 relocation. This portion of the division takes effect July 1, 31 21 2003, and applies to urban renewal plans adopted, and urban 31 22 renewal areas established, before, on, or after the effective 31 23 date. 31 24 The division provides that, beginning with fiscal years 31 25 beginning on or after July 1, 2007, the foundation property 31 26 tax ($5.40 per $1,000 of assessed value of taxable property) 31 27 imposed on property in an urban renewal area will not be 31 28 divided and paid to a municipality. 31 29 The division specifies that a municipality shall certify by 31 30 December 1 of each year the amount of loans, advances, 31 31 indebtedness, or bonds which qualify for payment from a 31 32 division of revenue for the following fiscal year. The 31 33 division also requires that the municipality certify the total 31 34 amount of outstanding loans, advances, indebtedness, or bonds 31 35 which qualify for payment from divided revenues. This portion 32 1 of the division takes effect July 1, 2003, and applies to 32 2 urban renewal areas established before, on, or after the 32 3 effective date. 32 4 The division provides that the assessment limitation (i.e., 32 5 rollback) amount shall be subtracted from the increment value 32 6 amount and the base value amount in the proportion that the 32 7 value of each bears to the total value of the property in the 32 8 urban renewal area if it is an urban renewal area established 32 9 pursuant to an urban renewal plan adopted on or after July 1, 32 10 2003, or if it is territory amended into an urban renewal area 32 11 established pursuant to an urban renewal plan adopted before 32 12 July 1, 2003, if such amendment was approved on or after July 32 13 1, 2003. 32 14 DIVISION VII – This division of the bill makes all other 32 15 divisions of the bill, except the division relating to urban 32 16 renewal, effective only if an appropriation is made for 32 17 deposit in the grow Iowa fund created in division V of the 32 18 bill. 32 19 LSB 3447SV 80 32 20 tm/sh/8
Text: SF00455 Text: SF00457 Text: SF00400 - SF00499 Text: SF Index Bills and Amendments: General Index Bill History: General Index
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