Text: SSB01198 Text: SSB01200 Text: SSB01100 - SSB01199 Text: SSB Index Bills and Amendments: General Index Bill History: General Index
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 1 13 universities under the control of the state board of regents, 1 14 community colleges, and private colleges and universities. 1 15 2. Coordinate the technology transfer activities at each 1 16 of the public and private universities to encourage the 1 17 implementation of best practices in technology transfer, 1 18 establish measures of performance, and design programs of 1 19 continuous quality improvement for each technology transfer 1 20 office. 1 21 3. Establish technology transfer goals for the state. 1 22 4. Provide technical assistance to Iowa-based 1 23 entrepreneurs associated with or unrelated to the universities 1 24 under the control of the state board of regents regarding 1 25 technology transfer-related issues. The technical assistance 1 26 shall include assistance in the areas of patents and 1 27 licensing, business development and management, finance, 1 28 production, sales, and marketing. 1 29 5. Receive the technology transfer-related report 1 30 submitted by the state board of regents pursuant to section 1 31 262.9, subsection 31. 1 32 6. To ensure economic growth, serve as a coordinator 1 33 between Iowa-based businesses and businesses intending to 1 34 locate in Iowa. 1 35 Sec. 2. Section 15.108, Code 2003, is amended by adding 2 1 the following new subsection: 2 2 NEW SUBSECTION. 12. TECHNOLOGY TRANSFER ADVISORS. The 2 3 department shall cooperate with and provide staffing support 2 4 to the technology transfer advisors appointed pursuant to 2 5 section 7.23. 2 6 Sec. 3. Section 262.9, Code 2003, is amended by adding the 2 7 following new subsections: 2 8 NEW SUBSECTION. 29. Actively encourage and promote the 2 9 transfer of technology and research at universities under the 2 10 control of the board to commercial application, including the 2 11 start-up of business entities. 2 12 NEW SUBSECTION. 30. Give preference and technical support 2 13 to those faculty members and staff members desiring to obtain 2 14 licenses for intellectual property rights created in whole or 2 15 in part by the faculty member or staff member. However, such 2 16 preference shall not be construed to be a right accruing to 2 17 that faculty member or staff member. 2 18 NEW SUBSECTION. 31. By January 15 of each year, submit a 2 19 report to the governor, through the technology transfer 2 20 advisors, and the general assembly containing information from 2 21 the previous calendar year regarding all of the following: 2 22 a. Patents secured or applied for by each university under 2 23 the control of the board delineated by university and by 2 24 faculty member and staff member responsible for the research 2 25 or activity that resulted in the patent. In the initial 2 26 report filed by January 15, 2004, the board shall include an 2 27 inventory of patent portfolios with details concerning which 2 28 patents are creating financial benefit and the amount of 2 29 financial benefit and which patents are not creating financial 2 30 benefit and the amount invested in those patents. 2 31 b. Research grants secured by each university under the 2 32 control of the board from both public and private sources 2 33 delineated by university and by faculty member and staff 2 34 member. The board shall also include the same information for 2 35 grant applications that are denied. 3 1 c. The number of faculty members and staff members at each 3 2 university under the control of the board involved in a start- 3 3 up company. 3 4 d. The number of grant applications for research received 3 5 by each university under the control of the board for start-up 3 6 companies, the number of applications approved, and the number 3 7 of applications denied. 3 8 e. The number of agreements entered into by faculty 3 9 members and staff members at each university under the control 3 10 of the board with foundations affiliated with the universities 3 11 relating to business start-ups. 3 12 f. An accounting of the financial gain received by each 3 13 university under the control of the board relating to patents 3 14 sold, royalties received, licensing fees, and any other 3 15 remuneration received by the university related to technology 3 16 transfer. 3 17 g. The number of professional employees at each university 3 18 under the control of the board who assist in the transfer of 3 19 technology and research to commercial application. 3 20 Sec. 4. This division of this Act is repealed July 1, 3 21 2008. 3 22 DIVISION II 3 23 IOWA ECONOMIC DEVELOPMENT 3 24 LOAN AND CREDIT GUARANTEE FUND 3 25 Sec. 5. NEW SECTION. 15E.221 SHORT TITLE. 3 26 This division shall be known and may be cited as the "Iowa 3 27 Economic Development Loan and Credit Guarantee Fund Act". 3 28 Sec. 6. NEW SECTION. 15E.222 LEGISLATIVE FINDING – 3 29 PURPOSES. 3 30 1. The general assembly finds all of the following: 3 31 a. That small and medium-sized businesses, in general, and 3 32 certain targeted industry businesses, in particular, may not 3 33 qualify for conventional financing. 3 34 b. That the limited availability of credit for export 3 35 transactions limits the ability of small and medium-sized 4 1 businesses in this state to compete in international markets. 4 2 c. That, to enhance competitiveness and foster economic 4 3 development, this state must focus on growth in certain 4 4 specific targeted industry businesses, especially during a 4 5 time of war. 4 6 d. That the challenge for the public economic sector is to 4 7 design programs, in conjunction with financial institutions in 4 8 the private sector, which fill the gaps in credit availability 4 9 and export finance, and that allow the private sector to 4 10 identify the lending opportunities and foster decision making 4 11 at the local level. 4 12 2. The general assembly declares the purposes of this 4 13 division to be all of the following: 4 14 a. To create incentives and assistance to increase the 4 15 flow of private capital to targeted industry clusters. 4 16 b. To promote industrial modernization and technology 4 17 adoption. 4 18 c. To encourage the retention and creation of family wage 4 19 jobs. 4 20 d. To encourage the export of goods and services sold by 4 21 Iowa businesses in national and international markets. 4 22 Sec. 7. NEW SECTION. 15E.223 DEFINITIONS. 4 23 As used in this division, unless the context otherwise 4 24 requires: 4 25 1. "Financial institution" means an institution listed in 4 26 section 422.61, subsection 1, or such other financial 4 27 institution as defined by the department for purposes of this 4 28 division. 4 29 2. "Program" means the loan and credit guarantee program 4 30 established in this division. 4 31 3. "Qualified business" means an existing or proposed 4 32 business entity with an annual average number of employees not 4 33 exceeding two hundred employees that sells goods or services 4 34 in markets for which national or international competition 4 35 exists. "Qualified business" includes professional services 5 1 businesses that provide services to targeted industry 5 2 businesses and other entities within and outside of this 5 3 state. 5 4 4. "Targeted industry business" means an existing or 5 5 proposed business entity, including an emerging small business 5 6 or qualified business which is operated for profit and which 5 7 has a primary business purpose of doing business in at least 5 8 one of the targeted industries designated by the department 5 9 which include life sciences, software and information 5 10 technology, advanced manufacturing, value-added agriculture, 5 11 and any other industry designated as a targeted industry by 5 12 the department. 5 13 Sec. 8. NEW SECTION. 15E.224 LOAN AND CREDIT GUARANTEE 5 14 PROGRAM. 5 15 1. The department shall, with the advice of the loan and 5 16 credit guarantee advisory board, establish and administer a 5 17 loan and credit guarantee program. The department, pursuant 5 18 to agreements with financial institutions, shall provide loan 5 19 and credit guarantees, insurance, coinsurance in conjunction 5 20 with other providers of loan guarantee programs, or other 5 21 forms of credit guarantees for qualified businesses and 5 22 targeted industry businesses for eligible project costs. A 5 23 loan or credit guarantee, insurance, or coinsurance provided 5 24 under the program may stand alone or may be used in 5 25 conjunction with or to enhance other loans, credit guarantees, 5 26 or insurance programs offered by private, state, or federal 5 27 entities. However, the department shall not in any manner 5 28 directly or indirectly pledge the credit of the state. 5 29 Eligible project costs include expenditures for productive 5 30 equipment and machinery, working capital for operations and 5 31 export transactions, research and development, marketing, and 5 32 such other costs as the department may so designate. 5 33 2. A loan or credit guarantee, insurance, coinsurance, or 5 34 other form of credit guarantee provided under the program to a 5 35 participating financial institution for a single qualified 6 1 business or targeted industry business shall not exceed one 6 2 million dollars in value. Loan or credit guarantees, 6 3 insurance, coinsurance, or other forms of credit guarantees 6 4 provided under the program to more than one participating 6 5 financial institution for a single qualified business or 6 6 targeted industry business shall not exceed ten million 6 7 dollars in value. 6 8 3. In administering the program, the department shall 6 9 consult and cooperate with financial institutions in this 6 10 state and with the loan and credit guarantee advisory board. 6 11 Administrative procedures and application procedures, as 6 12 practicable, shall be responsive to the needs of qualified 6 13 businesses, targeted industry businesses, and financial 6 14 institutions, and shall be consistent with prudent investment 6 15 and lending practices and criteria. 6 16 4. Each participating financial institution shall identify 6 17 and underwrite potential lending opportunities with qualified 6 18 businesses and targeted industry businesses. Upon a 6 19 determination by a participating financial institution that a 6 20 qualified business or targeted industry business meets the 6 21 underwriting standards of the financial institution, subject 6 22 to the approval of a loan or credit guarantee, the financial 6 23 institution shall submit the underwriting information and a 6 24 loan or credit guarantee application to the department. 6 25 5. The department, with the advice of the loan and credit 6 26 guarantee advisory board, shall adopt a loan or credit 6 27 guarantee application procedure for a financial institution on 6 28 behalf of a qualified business or targeted industry business. 6 29 6. Upon approval of a loan or credit guarantee, the 6 30 department shall enter into a loan or credit guarantee 6 31 agreement with the participating financial institution. The 6 32 agreement shall specify all of the following: 6 33 a. The fee to be charged to the financial institution. 6 34 b. The evidence of debt assurance of, and security for, 6 35 the loan or credit guarantee. 7 1 c. A loan or credit guarantee that does not exceed fifteen 7 2 years. 7 3 d. Any other terms and conditions considered necessary or 7 4 desirable by the department. 7 5 7. The department, with the advice of the loan and credit 7 6 guarantee advisory board, may adopt loan and credit guarantee 7 7 application procedures that allow a qualified business or 7 8 targeted industry business to apply directly to the department 7 9 for a preliminary guarantee commitment. A preliminary 7 10 guarantee commitment may be issued by the department subject 7 11 to the qualified business or targeted industry business 7 12 securing a commitment for financing from a financial 7 13 institution. The application procedures shall specify the 7 14 process by which a financial institution may obtain a final 7 15 loan and credit guarantee. 7 16 Sec. 9. NEW SECTION. 15E.225 TERMS – FEES. 7 17 1. When entering into a loan or credit guarantee 7 18 agreement, the department, with the advice of the loan and 7 19 credit guarantee advisory board, shall establish fees and 7 20 other terms that discourage participation in the program by 7 21 qualified businesses and targeted industry businesses with 7 22 access to other forms of private capital. 7 23 2. The department, with due regard for the possibility of 7 24 losses and administrative costs and with the advice of the 7 25 loan and credit guarantee advisory board, shall set fees and 7 26 other terms at levels sufficient to assure that the program is 7 27 self-financing. 7 28 3. For a preliminary guarantee commitment, the department 7 29 may charge a qualified business or targeted industry business 7 30 a preliminary guarantee commitment fee. The application fee 7 31 shall be in addition to any other fees charged by the 7 32 department under this section and shall not exceed one 7 33 thousand dollars for an application. 7 34 Sec. 10. NEW SECTION. 15E.226 LOAN AND CREDIT GUARANTEE 7 35 ADVISORY BOARD. 8 1 The department, in consultation with the superintendent of 8 2 banking, shall establish a loan and credit guarantee advisory 8 3 board. The advisory board shall provide the department with 8 4 technical advice regarding the administration of the program, 8 5 including the adoption of administrative rules pursuant to 8 6 chapter 17A. The advisory board shall review and provide 8 7 recommendations regarding all applications under the program. 8 8 Sec. 11. NEW SECTION. 15E.227 LOAN AND CREDIT GUARANTEE 8 9 FUND. 8 10 1. A loan and credit guarantee fund is created and 8 11 established as a separate and distinct fund in the state 8 12 treasury. Moneys in the fund shall only be used for purposes 8 13 provided in this section. The moneys in the fund are 8 14 appropriated to the department to be used for all of the 8 15 following purposes: 8 16 a. Payment of claims pursuant to loan and credit guarantee 8 17 agreements entered into under this division. 8 18 b. Payment of administrative costs of the department for 8 19 actual and necessary administrative expenses incurred by the 8 20 department in administering the program. 8 21 c. Purchase or buyout of superior or prior liens, 8 22 mortgages, or security interests. 8 23 2. Moneys in the loan and credit guarantee fund shall 8 24 consist of all of the following: 8 25 a. Moneys appropriated by the general assembly for that 8 26 purpose and any other moneys available to and obtained or 8 27 accepted by the department for placement in the fund. 8 28 b. Proceeds from collateral assigned to the department, 8 29 fees for guarantees, gifts, and moneys from any grant made to 8 30 the fund by any federal agency. 8 31 c. Moneys appropriated from the grow Iowa fund created in 8 32 section 15.115. 8 33 3. Moneys in the fund are not subject to section 8.33. 8 34 Notwithstanding section 12C.7, interest or earnings on the 8 35 moneys in the fund shall be credited to the fund. 9 1 4. The department shall only pledge moneys in the loan and 9 2 credit guarantee fund and not any other moneys of the 9 3 department. The department may pledge an amount not to exceed 9 4 a total of one hundred million dollars of moneys in the fund 9 5 to assure the repayment of loan and credit guarantees or other 9 6 extensions of credit made to or on behalf of qualified 9 7 businesses or targeted industry businesses for eligible 9 8 project costs. The department shall not pledge the credit or 9 9 taxing power of this state or any political subdivision of 9 10 this state or make debts payable out of any moneys except for 9 11 those in the loan and credit guarantee fund. 9 12 Sec. 12. This division of this Act is repealed July 1, 9 13 2008. 9 14 DIVISION III 9 15 MARKETING IOWA 9 16 Sec. 13. Section 15.108, subsection 9, Code 2003, is 9 17 amended by adding the following new paragraph: 9 18 NEW PARAGRAPH. g. Administer the marketing strategy 9 19 selected pursuant to section 15.121. 9 20 Sec. 14. NEW SECTION. 15.121 ECONOMIC DEVELOPMENT 9 21 MARKETING BOARD. 9 22 1. a. An economic development marketing board is 9 23 established consisting of seven members and is located for 9 24 administrative purposes within the department. The director 9 25 of the department shall provide office space, staff 9 26 assistance, and necessary supplies and equipment for the 9 27 board. In performing its functions, the board is performing a 9 28 public function on behalf of the state and is a public 9 29 instrumentality of the state. 9 30 b. The membership of the board shall be as follows: 9 31 (1) Three members with significant demonstrated experience 9 32 in marketing or advertising appointed by the governor. 9 33 (2) Four members with significant demonstrated experience 9 34 in marketing or advertising appointed by the following: 9 35 (a) The president of the senate. 10 1 (b) The minority leader of the senate. 10 2 (c) The speaker of the house of representatives. 10 3 (d) The minority leader of the house of representatives. 10 4 c. The appointments made by the governor shall comply with 10 5 sections 69.16 and 69.16A and shall be subject to confirmation 10 6 by the senate. 10 7 d. The chairperson and vice chairperson of the board shall 10 8 be elected by and from the board members listed in paragraph 10 9 "b". In case of the absence or disability of the chairperson 10 10 and vice chairperson, the members of the board shall elect a 10 11 temporary chairperson by a majority vote of those members who 10 12 are present and voting. 10 13 e. The members shall be appointed to three-year staggered 10 14 terms and the terms shall commence and end as provided by 10 15 section 69.19. If a vacancy occurs, a successor shall be 10 16 appointed to serve the unexpired term. A successor shall be 10 17 appointed in the same manner and subject to the same 10 18 qualifications as the original appointment to serve the 10 19 unexpired term. 10 20 f. A majority of the board constitutes a quorum. 10 21 2. The board shall do all of the following: 10 22 a. Organize. 10 23 b. Establish rules pursuant to chapter 17A necessary to 10 24 establish procedures for choosing a marketing strategy for the 10 25 department to administer. 10 26 c. Administer the approval process provided in subsection 10 27 3. 10 28 3. The board shall accept proposals for marketing 10 29 strategies for purposes of selecting a strategy for the 10 30 department to administer. The marketing strategies shall be 10 31 designed to market Iowa as a lifestyle, increase the 10 32 population of the state, increase the wealth of Iowans, and 10 33 expand and stimulate the state economy. 10 34 4. The department shall implement and administer the 10 35 marketing strategy selected by the economic development 11 1 marketing board as provided in section 15.108. The department 11 2 shall provide the board with assistance in implementing 11 3 administrative functions of the board and provide technical 11 4 assistance to the board. 11 5 Sec. 15. This division of this Act is repealed July 1, 11 6 2008. 11 7 DIVISION IV 11 8 INTERNET ECONOMIC DEVELOPMENT ASSISTANCE 11 9 Sec. 16. NEW SECTION. 15E.118 BUSINESS START-UP 11 10 INFORMATION – INTERNET WEB SITE. 11 11 The department shall provide information through an 11 12 internet web site to assist persons interested in establishing 11 13 a commercial facility or engaging in a commercial activity. 11 14 The information shall include all of the following: 11 15 1. Assistance, information, and guidance for start-up 11 16 businesses. 11 17 2. Information gathered by the department pursuant to 11 18 section 15E.17, subsection 2. 11 19 3. Personal and corporate income tax information. 11 20 4. Information regarding financial assistance and 11 21 incentives available to businesses. 11 22 5. Workforce availability in the state presented in a 11 23 regional format. 11 24 Sec. 17. INTERNET WEB SITE DEVELOPMENT. In developing the 11 25 internet web site required in section 15E.118, the department 11 26 of economic development shall examine similar efforts in other 11 27 states and incorporate the best practices. 11 28 DIVISION V 11 29 GROW IOWA FUND 11 30 Sec. 18. NEW SECTION. 15.115 GROW IOWA FUND. 11 31 A grow Iowa fund is created in the state treasury under the 11 32 control of the department consisting of moneys appropriated to 11 33 the department and deposited in the fund pursuant to section 11 34 422.45, subsection 61, paragraph "d". Moneys in the fund are 11 35 not subject to section 8.33. Notwithstanding section 12C.7, 12 1 interest or earnings on moneys in the fund shall be credited 12 2 to the fund. Moneys in the fund are appropriated to the 12 3 following for all of the following purposes: 12 4 1. To the department for deposit in the loan and credit 12 5 guarantee fund created in section 15E.227, not more than an 12 6 aggregate total of one hundred million dollars. 12 7 2. To the department for purposes of administering the 12 8 marketing strategy selected by the economic development 12 9 marketing board pursuant to section 15.121, not more than an 12 10 aggregate total of fifteen million dollars. 12 11 3. To the governor's office for purposes of section 7.23, 12 12 not more than three hundred thousand dollars per year. 12 13 4. To the department for purposes of administering the 12 14 requirements of section 15E.118, not more than an aggregate 12 15 total of one hundred fifty thousand dollars. 12 16 Sec. 19. Section 422.45, subsection 61, paragraph b, 12 17 subparagraphs (2) through (5), Code 2003, are amended to read 12 18 as follows: 12 19 (2) If the date of the utility billing or meter reading 12 20 cycle of the residential customer for the sale, furnishing, or 12 21 service of metered gas and electricity is on or after January 12 22 1, 2003, through December 31,20032008, or if the sale, 12 23 furnishing, or service of fuel for purposes of residential 12 24 energy and the delivery of the fuel occurs on or after January 12 25 1, 2003, through December 31,20032008, the rate of tax is 12 26 three percent of the gross receipts. 12 27 (3) If the date of the utility billing or meter reading 12 28 cycle of the residential customer for the sale, furnishing, or 12 29 service of metered gas and electricity is on or after January 12 30 1,20042009, through December 31,20042009, or if the sale, 12 31 furnishing, or service of fuel for purposes of residential 12 32 energy and the delivery of the fuel occurs on or after January 12 33 1,20042009, through December 31,20042009, the rate of tax 12 34 is two percent of the gross receipts. 12 35 (4) If the date of the utility billing or meter reading 13 1 cycle of the residential customer for the sale, furnishing, or 13 2 service of metered gas and electricity is on or after January 13 3 1,20052010, through December 31,20052010, or if the sale, 13 4 furnishing, or service of fuel for purposes of residential 13 5 energy and the delivery of the fuel occurs on or after January 13 6 1,20052010, through December 31,20052010, the rate of tax 13 7 is one percent of the gross receipts. 13 8 (5) If the date of the utility billing or meter reading 13 9 cycle of the residential customer for the sale, furnishing, or 13 10 service of metered gas and electricity is on or after January 13 11 1,20062011, or if the sale, furnishing, or service of fuel 13 12 for purposes of residential energy and the delivery of the 13 13 fuel occurs on or after January 1,20062011, the rate of tax 13 14 is zero percent of the gross receipts. 13 15 Sec. 20. Section 422.45, subsection 61, Code 2003, is 13 16 amended by adding the following new paragraph: 13 17 NEW PARAGRAPH. d. There is appropriated from the general 13 18 fund of the state to the department of economic development 13 19 for the fiscal period beginning July 1, 2003, and ending June 13 20 30, 2008, all tax revenues collected under this division as 13 21 described in paragraph "b", subparagraph (2), for the sale, 13 22 furnishing, or service of residential metered gas and 13 23 electricity and the sale, furnishing, or service of fuel for 13 24 purposes of residential energy and the delivery of the fuel. 13 25 Moneys appropriated to the department of economic development 13 26 pursuant to this paragraph shall be deposited in the grow Iowa 13 27 fund established in section 15.115. 13 28 DIVISION VI 13 29 URBAN RENEWAL 13 30 Sec. 21. Section 11.6, subsection 1, paragraph a, 13 31 unnumbered paragraph 1, Code 2003, is amended to read as 13 32 follows: 13 33 The financial condition and transactions of all cities and 13 34 city offices, counties, county hospitals organized under 13 35 chapters 347 and 347A, memorial hospitals organized under 14 1 chapter 37, entities organized under chapter 28E having gross 14 2 receipts in excess of one hundred thousand dollars in a fiscal 14 3 year, merged areas, area education agencies, and all school 14 4 offices in school districts, shall be examined at least once 14 5 each year, except that cities having a population of seven 14 6 hundred or more but less than two thousand shall be examined 14 7 at least once every four years, and cities having a population 14 8 of less than seven hundred may be examined as otherwise 14 9 provided in this section. However, cities having a population 14 10 of less than two thousand shall be examined for each fiscal 14 11 year ending on or after June 30, 2004, if, for the fiscal year 14 12 and pursuant to an urban renewal plan adopted by the city, the 14 13 city had taxable valuation described in section 403.19, 14 14 subsection 2, of one million dollars or more. 14 15 PARAGRAPH DIVIDED. The examination shall cover the fiscal 14 16 year next preceding the year in which the audit is conducted. 14 17 The examination of school offices shall include an audit of 14 18 all school funds, the certified annual financial report, and 14 19 the certified enrollment as provided in section 257.6. 14 20 Differences in certified enrollment shall be reported to the 14 21 department of management. 14 22 Sec. 22. Section 403.5, subsection 1, Code 2003, is 14 23 amended by adding the following new unnumbered paragraph: 14 24 NEW UNNUMBERED PARAGRAPH. In a municipality with a 14 25 population of twenty thousand or less, the taxable valuation 14 26 of property described in section 403.19, subsection 2, located 14 27 in all urban renewal areas in any year in which one or more 14 28 urban renewal plans are in force shall not exceed an amount 14 29 equal to twenty percent of the total taxable valuation in the 14 30 municipality. In a municipality with a population of over 14 31 twenty thousand, the taxable valuation of property described 14 32 in section 403.19, subsection 2, located in all urban renewal 14 33 areas in any year in which one or more urban renewal plans are 14 34 in force shall not exceed an amount equal to ten percent of 14 35 the total taxable valuation in the municipality. For purposes 15 1 of this paragraph, an urban renewal area of a city includes 15 2 urban renewal areas established by the city in the area of 15 3 operation of the city and an urban renewal area of a county 15 4 includes urban renewal areas established by a county in the 15 5 area of operation of the county. For purposes of this 15 6 paragraph, the total taxable valuation in a city includes only 15 7 the taxable valuation of property within the corporate limits 15 8 of the city regardless of where the urban renewal area 15 9 established by the city is located. On or before January 1 of 15 10 each year, the county auditor shall make the adjustments in 15 11 valuation necessary to achieve the limitations in this 15 12 paragraph for the fiscal year beginning July 1 following the 15 13 date of adjustment. However, if because of the limitation in 15 14 this paragraph, the funds to be received by a municipality 15 15 will be insufficient to pay the amount certified to the county 15 16 auditor in section 403.19, subsection 5, for the following 15 17 fiscal year, the auditor shall adjust the reduction to the 15 18 amount of incremental valuation only to the extent needed to 15 19 pay such amount certified. This exception to the valuation 15 20 limitation in this paragraph does not apply to payment of 15 21 loans, advances, bonds, or other indebtedness refunded or 15 22 originally incurred on or after July 1, 2004. 15 23 Sec. 23. Section 403.5, subsection 2, Code 2003, is 15 24 amended to read as follows: 15 25 2. The municipality may itself prepare or cause to be 15 26 prepared an urban renewal plan; or any person or agency, 15 27 public or private, may submit such a plan to a municipality. 15 28 Prior to its approval of an urban renewal plan, the local 15 29 governing body shall submit such plan to the planning 15 30 commission of the municipality, if any, for review and 15 31 recommendations as to its conformity with the general plan for 15 32 the development of the municipality as a whole. The planning 15 33 commission shall submit its written recommendations with 15 34 respect to the proposed urban renewal plan to the local 15 35 governing body within thirty days after receipt of the plan 16 1 for review.Upon receipt of the recommendations of the16 2planning commission or, if no recommendations are received16 3within the thirty days, then, without such recommendations,16 4the local governing body may proceed with the hearing on the16 5proposed urban renewal plan prescribed by subsection 3.16 6 Prior to its approval of an urban renewal plan which 16 7 provides for a division of revenue pursuant to section 403.19, 16 8 the municipality shall mail the proposed plan by regular mail 16 9 to the affected taxing entities. The municipality shall 16 10 include with the proposed plan notification of a consultation 16 11 to be held between the municipality and affected taxing 16 12 entities prior to the public hearing on the urban renewal 16 13 plan. Each affected taxing entity may appoint a 16 14 representative to attend the consultation. The consultation 16 15 may include a discussion of the estimated growth in valuation 16 16 of taxable property included in the proposed urban renewal 16 17 area, the fiscal impact of the division of revenue on the 16 18 affected taxing entities, the estimated impact on the 16 19 provision of services by each of the affected taxing entities 16 20 in the proposed urban renewal area, and the duration of any 16 21 bond issuance included in the plan. The designated 16 22 representative of the affected taxing entity may make written 16 23 recommendations for modification to the proposeddivision of16 24revenueurban renewal plan no later than seven days following 16 25 the date of the consultation. The representative of the 16 26 municipality shall, no later than seven days prior to the 16 27 public hearing on the urban renewal plan, submit a written 16 28 response to the affected taxing entity addressing the 16 29 recommendations for modification to the proposeddivision of16 30revenueurban renewal plan. 16 31 If the municipality is a city, the board of supervisors of 16 32 each affected taxing entity that is a county must, upon 16 33 conclusion of the consultation process, adopt a resolution 16 34 approving or rejecting the proposed urban renewal plan. Upon 16 35 receipt of the recommendations of the planning commission or, 17 1 if no recommendations are received within the thirty days, 17 2 then, without such recommendations, and upon receipt of county 17 3 board of supervisors resolutions approving the urban renewal 17 4 plan, the governing body of the city may proceed with the 17 5 hearing on the proposed urban renewal plan pursuant to 17 6 subsection 3. Without the receipt of such a resolution 17 7 approving the urban renewal plan from each county that is an 17 8 affected taxing entity, the governing body of the city shall 17 9 not proceed with the proposed urban renewal plan. 17 10 Sec. 24. Section 403.5, subsections 5, 6, and 7, Code 17 11 2003, are amended to read as follows: 17 12 5. An urban renewal plan may bemodifiedamended at any 17 13 time: Provided, that ifmodifiedamended after the lease or 17 14 sale by the municipality of real property in the urban renewal 17 15 project area, suchmodificationamendment may be conditioned 17 16 upon such approval of the owner, lessee, or successor in 17 17 interest as the municipality may deem advisable, and in any 17 18 event suchmodificationamendment shall be subject to such 17 19 rights at law or in equity as a lessee or purchaser, or a 17 20 lessee's or purchaser's successor or successors in interest, 17 21 may be entitled to assert.TheA project may be added to an 17 22 urban renewal plan only by an amendment to the plan. 17 23 Territory may be added to, or severed from, an urban renewal 17 24 area only by an amendment to the urban renewal plan. When 17 25 amending an urban renewal plan, the municipality shall comply 17 26 with the notification and consultation process provided in 17 27 this section, including the requirement that an affected 17 28 taxing entity that is a county approve the proposed amendment 17 29 if the municipality is a city, prior to the approval of any 17 30 amendmentor modificationto an adopted urban renewal plan if 17 31 such amendmentor modificationprovides for refunding bonds or 17 32 refinancing resulting in an increase in debt service or 17 33 provides for the issuance of bonds or other indebtedness, to 17 34 be funded primarily in the manner provided in section 403.19, 17 35 or if such amendment proposes to add a project to an urban 18 1 renewal plan or proposes to add territory to an urban renewal 18 2 area or proposes to sever territory from an urban renewal 18 3 area. 18 4 6. Upon the approval by a municipality of an urban renewal 18 5 plan or of anymodification thereofamendment to an urban 18 6 renewal plan, such plan ormodificationamendment shall be 18 7 deemed to be in full force and effect for the respective urban 18 8 renewal area, and the municipality may then cause such plan or 18 9modificationamendment to be carried out in accordance with 18 10 its terms. 18 11 7. Notwithstanding any other provisions of this chapter, 18 12 where the local governing body certifies that an area is in 18 13 need of redevelopment or rehabilitation as a result of a 18 14 flood, fire, hurricane, earthquake, storm, or other 18 15 catastrophe respecting which the governor of the state has 18 16 certified the need for disaster assistance under Pub. L. No. 18 17 875, Eighty-first Congress, 64 Stat. L. 1109; 42 U.S.C. } 18 18 1855-1855g or other federal law, the local governing body may 18 19 approve an urban renewal plan and an urban renewal project 18 20 with respect to such area without regard to the provisions of 18 21 subsection 4 and without regard to provisions of this section 18 22 requiring notification and consultation and approval by the 18 23 county if the municipality is a city, a general plan for the 18 24 municipality, and a public hearing on the urban renewal plan 18 25 or project. 18 26 Sec. 25. Section 403.5, Code 2003, is amended by adding 18 27 the following new subsection: 18 28 NEW SUBSECTION. 8. The designation of an urban renewal 18 29 area pursuant to this section shall be limited in duration to 18 30 twenty years counting from July 1 of the first fiscal year in 18 31 which the municipality receives moneys from a division of 18 32 revenue pursuant to section 403.19. However, the duration of 18 33 an urban renewal area established before July 1, 2003, shall 18 34 be limited to twenty years counting from July 1 of the first 18 35 fiscal year in which the municipality received moneys from a 19 1 division of revenue pursuant to section 403.19, or shall end 19 2 June 30 of the fiscal year in which the amount of loans, 19 3 advances, indebtedness, or bonds due and owing on the 19 4 effective date of this section of this Act is paid, whichever 19 5 is later. An amendment to an urban renewal plan shall not 19 6 result in an extension of the durational limitation imposed in 19 7 this subsection. 19 8 Sec. 26. Section 403.6, subsection 6, paragraph b, Code 19 9 2003, is amended to read as follows: 19 10 b. Urban renewal plans adopted, or amended, pursuant to 19 11 the requirements of section 403.5; 19 12 Sec. 27. Section 403.6, subsection 12, Code 2003, is 19 13 amended to read as follows: 19 14 12. To approve and amend urban renewal plans, subject to 19 15 the requirements of section 403.5. 19 16 Sec. 28. Section 403.17, subsection 10, Code 2003, is 19 17 amended to read as follows: 19 18 10. "Economic development area" means an area of a 19 19 municipality designated by the local governing body as 19 20 appropriate for commercial and industrial enterprises, public 19 21 improvements related to housing and residential development, 19 22 or construction of housing and residential development for low 19 23 and moderate income families, including single or multifamily 19 24 housing.If an urban renewal plan for an urban renewal area19 25is based upon a finding that the area is an economic19 26development area and that no part contains slum or blighted19 27conditions, then the division of revenue provided in section19 28403.19 and stated in the plan shall be limited to twenty years19 29from the calendar year following the calendar year in which19 30the municipality first certifies to the county auditor the19 31amount of any loans, advances, indebtedness, or bonds which19 32qualify for payment from the division of revenue provided in19 33section 403.19.Such designated area shall not include 19 34 agricultural land, including land which is part of a century 19 35 farm, unless the owner of the agricultural land or century 20 1 farm agrees to include the agricultural land or century farm 20 2 in the urban renewal area. For the purposes of this 20 3 subsection, "century farm" means a farm in which at least 20 4 forty acres of such farm have been held in continuous 20 5 ownership by the same family for one hundred years or more. 20 6 Sec. 29. Section 403.17, Code 2003, is amended by adding 20 7 the following new subsection: 20 8 NEW SUBSECTION. 12A. "Indebtedness" includes, but is not 20 9 limited to, a written agreement to suspend, abate, exempt, 20 10 rebate, refund, or reimburse property taxes or to provide a 20 11 grant for property taxes paid. 20 12 Sec. 30. Section 403.17, subsection 23, Code 2003, is 20 13 amended to read as follows: 20 14 23. "Urban renewal area" means a slum area, blighted area, 20 15 economic development area, or combination of the areas, which 20 16 the local governing body designates as appropriate for an 20 17 urban renewal project and which meets the maximum valuation 20 18 limitation on the size of the area in section 403.5, 20 19 subsection 1. 20 20 Sec. 31. Section 403.17, subsection 25, Code 2003, is 20 21 amended by adding the following new unnumbered paragraph: 20 22 NEW UNNUMBERED PARAGRAPH. An urban renewal project shall 20 23 not include undertakings or activities relating to a business 20 24 which is or will be located in the area of operation of a 20 25 municipality if the business has closed or reduced its 20 26 operation in one area of the state and relocated substantially 20 27 the same operation into the area of operation of the 20 28 municipality. 20 29 Sec. 32. Section 403.19, subsection 2, Code 2003, is 20 30 amended to read as follows: 20 31 2. That portion of the taxes each year in excess of such 20 32 amount shall be allocated to and when collected be paid into a 20 33 special fund of the municipality to pay the principal of and 20 34 interest on loans, moneys advanced to, or indebtedness, 20 35 whether funded, refunded, assumed, or otherwise, including 21 1 bonds issued under the authority of section 403.9, subsection 21 2 1, incurred by the municipality to finance or refinance, in 21 3 whole or in part, an urban renewal project within the area, 21 4 and to provide assistance for low and moderate income family 21 5 housing as provided in section 403.22, except that taxes for 21 6 the regular and voter-approved physical plant and equipment 21 7 levy of a school district imposed pursuant to section 298.2, 21 8andtaxes for the payment of bonds and interest of each taxing 21 9 district, and, beginning with fiscal years beginning on or 21 10 after July 1, 2007, the foundation property tax imposed 21 11 pursuant to section 257.3, subsection 1, must be collected 21 12 against all taxable property within the taxing district 21 13 without limitation by the provisions of this subsection. 21 14 However, all or a portion of the taxes for the physical plant 21 15 and equipment levy shall be paid by the school district to the 21 16 municipality ifthe auditor certifies to the school district21 17by July 1 the amount of such levy that is necessary to pay the21 18principal and interest on bonds issued by the municipality to21 19finance an urban renewal project, which bonds were issued21 20before July 1, 2001. Indebtedness incurred to refund bonds21 21issued prior to July 1, 2001, shall not be included in the21 22certification. Such school district shall pay over the amount21 23certified by November 1 and May 1 of the fiscal year following21 24certification to the school districtsubsection 7 applies. 21 25 Unless and until the total assessed valuation of the taxable 21 26 property in an urban renewal area exceeds the total assessed 21 27 value of the taxable property in such area as shown by the 21 28 last equalized assessment roll referred to in subsection 1, 21 29 all of the taxes levied and collected upon the taxable 21 30 property in the urban renewal area shall be paid into the 21 31 funds for the respective taxing districts as taxes by or for 21 32 the taxing districts in the same manner as all other property 21 33 taxes. When such loans, advances, indebtedness, and bonds, if 21 34 any, and interest thereon, have been paid, all moneys 21 35 thereafter received from taxes upon the taxable property in 22 1 such urban renewal area shall be paid into the funds for the 22 2 respective taxing districts in the same manner as taxes on all 22 3 other property. 22 4 Sec. 33. Section 403.19, subsection 5, Code 2003, is 22 5 amended to read as follows: 22 6 5. A municipality shall certify to the county auditor on 22 7 or before December 1 of each year the amount of loans, 22 8 advances, indebtedness, or bonds which qualify for payment 22 9 during the fiscal year beginning in the following calendar 22 10 year from the special fund referred to in subsection 2, and 22 11 the filing of the certificate shall make it a duty of the 22 12 auditor to provide for the division of taxes ineach22 13subsequentthe amount certified for the fiscal yearuntil the22 14amount of the loans, advances, indebtedness, or bonds is paid22 15to the special fundbeginning in the following calendar year. 22 16 The municipality shall include in the certification the total 22 17 amount, as of December 1, of loans, advances, indebtedness, or 22 18 bonds which qualify for payment from the special fund. In any 22 19 year, the county auditor shall, upon receipt of a certified 22 20 request from a municipality filed on or before December 1, 22 21 increase the amount to be allocated under subsection 1 in 22 22 order to reduce the amount to be allocated in the following 22 23 fiscal year to the special fund, to the extent that the 22 24 municipality does not request allocation to the special fund 22 25 of the full portion of taxes which could be collected. Upon 22 26 receipt of a certificate from a municipality, the auditor 22 27 shall mail a copy of the certificate to each affected taxing 22 28 district. 22 29 Sec. 34. Section 403.19, subsection 7, Code 2003, is 22 30 amended to read as follows: 22 31 7. For any fiscal year, a municipality may certify to the 22 32 county auditor for physical plant and equipment revenue 22 33 necessary for payment of principal and interest on bonds 22 34 issued prior to July 1, 2001, only if the municipality 22 35 certified for such revenue for the fiscal year beginning July 23 1 1, 2000. A municipality shall not certify to the county 23 2 auditor for a school district more than the amount the 23 3 municipality certified for the fiscal year beginning July 1, 23 4 2000. If for any fiscal year a municipality fails to certify 23 5 to the county auditor for a school district by July 1 the 23 6 amount of physical plant and equipment revenue necessary for 23 7 payment of principal and interest on such bonds, as provided 23 8 in subsection 2, the school district is not required to pay 23 9 over the revenue to the municipality. The county auditor 23 10 shall immediately certify to the school district the amount of 23 11 such levy that is necessary to pay the principal and interest 23 12 on bonds issued by the municipality to finance an urban 23 13 renewal project, which bonds were issued before July 1, 2001. 23 14 Indebtedness incurred to refund bonds issued prior to July 1, 23 15 2001, shall not be included in the certification. Such school 23 16 district shall pay over the amount certified by November 1 and 23 17 May 1 of the fiscal year following certification to the school 23 18 district. 23 19 PARAGRAPH DIVIDED. If a school district and a municipality 23 20 are unable to agree on the amount of physical plant and 23 21 equipment revenue certified by the municipality for the fiscal 23 22 year beginning July 1, 2001, either party may request that the 23 23 state appeal board review and finally pass upon the amount 23 24 that may be certified. Such appeals must be presented in 23 25 writing to the state appeal board no later than July 31 23 26 following certification. The burden shall be on the 23 27 municipality to prove that the physical plant and equipment 23 28 levy revenue is necessary to pay principal and interest on 23 29 bonds issued prior to July 1, 2001. A final decision must be 23 30 issued by the state appeal board no later than the following 23 31 October 1. 23 32 Sec. 35. Section 403.19, Code 2003, is amended by adding 23 33 the following new subsection: 23 34 NEW SUBSECTION. 9. Effective for the fiscal year 23 35 beginning July 1, 2005, and for all subsequent fiscal years, 24 1 property tax revenues divided pursuant to this section and 24 2 paid into the special fund in subsection 2 shall not be used 24 3 by a municipality to suspend, abate, exempt, rebate, refund, 24 4 or reimburse property taxes, or provide a grant for property 24 5 taxes paid, in an urban renewal area if the property taxes are 24 6 imposed against retail property. 24 7 Sec. 36. Section 403.20, Code 2003, is amended to read as 24 8 follows: 24 9 403.20 PERCENTAGE OF ADJUSTMENT CONSIDERED IN VALUE 24 10 ASSESSMENT. 24 11 1.InExcept as otherwise provided in subsection 2, in 24 12 determining the assessed value of property within an urban 24 13 renewal area which is subject to a division of tax revenues 24 14 pursuant to section 403.19, the difference between the actual 24 15 value of the property as determined by the assessor each year 24 16 and the percentage of adjustment certified for that year by 24 17 the director of revenue and finance on or before November 1 24 18 pursuant to section 441.21, subsection 9, multiplied by the 24 19 actual value of the property as determined by the assessor, 24 20 shall be subtracted from the actual value of the property as 24 21 determined pursuant to section 403.19, subsection 1. If the 24 22 assessed value of the property as determined pursuant to 24 23 section 403.19, subsection 1, is reduced to zero, the 24 24 additional valuation reduction shall be subtracted from the 24 25 actual value of the property as determined by the assessor. 24 26 2. This subsection applies to urban renewal areas 24 27 established pursuant to an urban renewal plan adopted on or 24 28 after July 1, 2003, and any amendments thereto, and to 24 29 territory amended into an urban renewal area established 24 30 pursuant to an urban renewal plan adopted before July 1, 2003, 24 31 if such amendment adding territory was adopted on or after 24 32 July 1, 2003. In determining the assessed value of property 24 33 within an urban renewal area which is subject to a division of 24 34 tax revenues pursuant to section 403.19, the difference 24 35 between the actual value of the property as determined by the 25 1 assessor each year and the percentage of adjustment certified 25 2 for that year by the director of revenue and finance on or 25 3 before November 1 pursuant to section 441.21, subsection 9, 25 4 multiplied by the actual value of the property as determined 25 5 by the assessor, shall be subtracted from the actual value of 25 6 the property in the ratio that the amount of the property 25 7 value as determined pursuant to section 403.19, subsection 1, 25 8 bears to the total value of the property, and in the ratio 25 9 that the amount of the property value as determined in section 25 10 403.19, subsection 2, bears to the total value of the 25 11 property. If the assessed value of the property as determined 25 12 pursuant to section 403.19, subsection 1, is reduced to zero, 25 13 the additional valuation reduction shall be subtracted from 25 14 the actual value of the property as determined in section 25 15 403.19, subsection 2. 25 16 Sec. 37. EFFECTIVE AND RETROACTIVE APPLICABILITY DATES. 25 17 1. The sections of this division of this Act amending 25 18 section 403.5, subsection 1, and section 403.17, subsection 25 19 23, take effect July 1, 2003, and apply retroactively to the 25 20 assessment year beginning January 1, 2003, for urban renewal 25 21 areas established before, on, or after the effective date of 25 22 these sections of this division of this Act. 25 23 2. The section of this division of this Act amending 25 24 section 403.5, subsection 2, being deemed of immediate 25 25 importance, takes effect upon enactment and applies to urban 25 26 renewal plans proposed on or after the effective date. 25 27 3. The section of this division of this Act amending 25 28 section 403.5, subsections 5, 6, and 7, being deemed of 25 29 immediate importance, takes effect upon enactment and applies 25 30 to amendments to urban renewal plans, if such amendments are 25 31 proposed on or after the effective date of this section of 25 32 this division of this Act. 25 33 4. The sections of this division of this Act enacting 25 34 section 403.5, subsection 8, amending section 403.17, 25 35 subsections 10 and 25, enacting section 403.17, subsection 26 1 12A, and amending section 403.19, subsection 5, take effect 26 2 July 1, 2003, and apply to urban renewal plans adopted and 26 3 urban renewal areas established before, on, or after the 26 4 effective date of these sections of this division of this Act. 26 5 5. The sections of this division of this Act amending 26 6 section 403.19, subsections 2 and 7, take effect July 1, 2006, 26 7 and apply to fiscal years beginning on or after July 1, 2007. 26 8 6. The section of this division of this Act enacting 26 9 section 403.19, subsection 9, applies to urban renewal areas 26 10 established before, on, or after July 1, 2003. 26 11 EXPLANATION 26 12 This bill relates to economic development by creating a 26 13 technology transfer advisor, creating a loan and credit 26 14 guarantee program and fund, creating an economic development 26 15 marketing board, providing for a business start-up information 26 16 internet web site, creating a grow Iowa fund, making 26 17 appropriations and related tax changes, making changes to 26 18 urban renewal law and related taxes, and providing effective 26 19 and retroactive applicability dates. 26 20 DIVISION I – This division of the bill relates to the 26 21 creation of a position of technology transfer advisor. 26 22 The division requires the governor to appoint two 26 23 technology transfer advisors located at offices at the 26 24 university of Iowa and Iowa state university of science and 26 25 technology. The division provides that the advisors shall do 26 26 all of the following: 26 27 1. Facilitate the transfer of technology developed by 26 28 state universities, community colleges, and private colleges 26 29 and universities. 26 30 2. Coordinate the technology transfer activities at each 26 31 of the public and private universities to encourage the 26 32 implementation of best practices in technology transfer, 26 33 establish measures of performance, and design programs of 26 34 continuous quality improvement for each technology transfer 26 35 office. 27 1 3. Establish technology transfer goals for the state. 27 2 4. Provide technical assistance to Iowa-based 27 3 entrepreneurs associated with or unrelated to the state 27 4 universities regarding technology transfer-related issues. 27 5 5. Receive the technology transfer-related report 27 6 submitted by the state board of regents. 27 7 6. Serve as a coordinator between Iowa-based businesses 27 8 and businesses intending to locate in Iowa. 27 9 The division requires the department of economic 27 10 development to cooperate with and provide staffing support to 27 11 the technology transfer advisors. 27 12 The division requires the state board of regents to 27 13 actively encourage and promote the transfer of technology and 27 14 research at the universities under the board's control to 27 15 commercial application. The division requires the state board 27 16 of regents to give preference and technical support to those 27 17 faculty members and staff members desiring to obtain licenses 27 18 for intellectual property rights created in whole or in part 27 19 by the faculty member or staff member. The division requires 27 20 the state board of regents to annually submit a report to the 27 21 general assembly and the governor regarding technology 27 22 transfer-related information. 27 23 This division of the bill is repealed July 1, 2008. 27 24 DIVISION II – This division of the bill creates a loan and 27 25 credit guarantee program and fund. 27 26 The division requires the department of economic 27 27 development to establish and administer a loan and credit 27 28 guarantee program designed to, through agreements with 27 29 financial institutions, provide loan and credit guarantees, 27 30 insurance, coinsurance, and other forms of credit guarantees 27 31 for qualified businesses and targeted industry businesses for 27 32 eligible project costs. The division provides that a loan or 27 33 credit guarantee, insurance, coinsurance, or other form of 27 34 credit guarantee provided under the program to a participating 27 35 financial institution for a single qualified business or 28 1 targeted industry business shall not exceed $1 million. Such 28 2 guarantees to more than one participating financial 28 3 institution for a single business shall not exceed $10 28 4 million. The division provides that, in administering the 28 5 program, the department shall consult and cooperate with 28 6 financial institutions in this state and with the loan and 28 7 credit guarantee advisory board. 28 8 The division provides that each participating financial 28 9 institution shall identify and underwrite potential lending 28 10 opportunities with qualified businesses and targeted industry 28 11 businesses. The division provides that, upon a determination 28 12 by a participating financial institution that a qualified 28 13 business or targeted industry business meets the underwriting 28 14 standards for the approval of a loan or credit guarantee, the 28 15 financial institution shall submit the underwriting 28 16 information and a loan or credit guarantee application to the 28 17 department. 28 18 The division provides that the department shall enter into 28 19 an agreement with the participating financial institution upon 28 20 approval of an application under the program. 28 21 The division provides for a preliminary guarantee 28 22 commitment application process where a qualified business or 28 23 targeted industry business applies directly to the department. 28 24 The division allows the department to establish fees in 28 25 relation to the program. 28 26 The division requires the department, in consultation with 28 27 the superintendent of banking, to establish a loan and credit 28 28 guarantee advisory board to provide the department with 28 29 technical advice regarding the administration of the program. 28 30 The division requires the advisory board to review and provide 28 31 recommendations regarding all applications under the program. 28 32 The division creates a loan and credit guarantee fund as a 28 33 separate and distinct fund in the state treasury to only be 28 34 used for specific purposes under the program. The division 28 35 provides that the department shall only pledge moneys in the 29 1 loan and credit guarantee fund and not any other moneys of the 29 2 department. The division allows the department to pledge an 29 3 amount not to exceed a total of $100 million of moneys in the 29 4 fund to assure the repayment of loan and credit guarantees or 29 5 other extensions of credit made under the program. The 29 6 division prohibits the department from pledging the credit or 29 7 taxing power of this state or any political subdivision of 29 8 this state or make debts payable out of any moneys except for 29 9 those in the loan and credit guarantee fund. 29 10 This division of the bill is repealed July 1, 2008. 29 11 DIVISION III – This division of the bill creates an 29 12 economic development marketing board. 29 13 The division establishes an economic development marketing 29 14 board consisting of seven members and is located for 29 15 administrative purposes within the department. The division 29 16 provides that the board shall accept proposals for marketing 29 17 strategies for purposes of selecting a strategy for the 29 18 department of economic development to administer. The 29 19 division provides that the marketing strategies shall be 29 20 designed to market Iowa as a lifestyle, increase the 29 21 population of the state, increase the wealth of Iowans, and 29 22 expand and stimulate the state economy. 29 23 This division of the bill is repealed July 1, 2008. 29 24 DIVISION IV – This division of the bill provides for a 29 25 business start-up information internet web site. 29 26 The division requires the department of economic 29 27 development to provide information through an internet web 29 28 site to assist persons interested in establishing a commercial 29 29 facility or engaging in a commercial activity. The division 29 30 requires the department to examine similar efforts in other 29 31 states and incorporate the best practices in developing the 29 32 internet web site. 29 33 DIVISION V – This division of the bill creates a grow Iowa 29 34 fund. 29 35 The division appropriates moneys in the fund to all of the 30 1 following for all of the following purposes: 30 2 1. To the department of economic development for deposit 30 3 in the loan and credit guarantee fund, not more than $100 30 4 million. 30 5 2. To the department of economic development for purposes 30 6 of administering the marketing strategy selected by the 30 7 economic development marketing board, not more than $15 30 8 million. 30 9 3. To the governor's office for purposes of the technology 30 10 transfer agents, not more than $300,000 per year. 30 11 4. To the department of economic development for purposes 30 12 of administering the business start-up information internet 30 13 web site, not more $150,000. 30 14 The division provides that the fund shall consist of 30 15 certain sales tax revenues appropriated from the general fund 30 16 of the state to the department of economic development for the 30 17 fiscal period beginning July 1, 2003, and ending June 30, 30 18 2008, for deposit in the grow Iowa fund. The sales tax 30 19 revenues appropriated from the general fund result from 30 20 delaying the phasing out over a number of years of a sales tax 30 21 on the sale, furnishing, or service of residential metered gas 30 22 and electricity and the sale, furnishing, or service of fuel 30 23 for purposes of residential energy and the delivery of the 30 24 fuel. 30 25 DIVISION VI – This division of the bill makes several 30 26 changes to the urban renewal and tax increment financing law. 30 27 The division provides that cities having a population of 30 28 less than 2,000 shall be audited for each fiscal year ending 30 29 on or after June 30, 2004, if the city has established an 30 30 urban renewal area and the incremental valuation for purposes 30 31 of dividing revenue is $1 million or more. Currently, cities 30 32 with a population of 700 but less than 2,000 have their 30 33 accounts audited every four years and cities of less than 700 30 34 population are not audited except under certain circumstances. 30 35 The division limits the amount of taxable valuation in an 31 1 urban renewal increment in municipalities of 20,000 or less to 31 2 an amount equal to 20 percent of the total taxable valuation 31 3 in the municipality. The division limits the amount of 31 4 taxable valuation in an urban renewal increment in 31 5 municipalities of over 20,000 to an amount equal to 10 percent 31 6 of the total taxable valuation in the municipality. However, 31 7 the division provides that if all or a portion of the 31 8 valuation reduced because of the limitation is needed to pay 31 9 debt incurred before July 1, 2004, the municipality may 31 10 capture that value needed. This section of the division takes 31 11 effect July 1, 2003, and applies retroactively to the 31 12 assessment year beginning January 1, 2003, for urban renewal 31 13 areas established before, on, or after the effective date. 31 14 The division provides that a city proposing an urban 31 15 renewal plan, or amending an existing plan, shall not proceed 31 16 unless the affected taxing entities that are counties, by 31 17 resolution, approve the proposed plan or amendment. The 31 18 division also provides that a project may be added to a plan 31 19 or territory added to or severed from an urban renewal area 31 20 only by an amendment to the urban renewal plan. This portion 31 21 of the division takes effect upon enactment and applies to 31 22 urban renewal plans proposed on or after the effective date 31 23 and to amendments to any urban renewal plan, if such 31 24 amendments are proposed on or after the effective date. 31 25 The division limits urban renewal areas to 20 years in 31 26 duration counting from July 1 of the first fiscal year in 31 27 which the municipality receives moneys from a division of 31 28 revenue. However, the duration of an urban renewal area 31 29 established before July 1, 2003, is 20 years from the first 31 30 fiscal year the municipality receives moneys from a division 31 31 of revenue or the year in which indebtedness is retired, 31 32 whichever is later. This portion of the division takes effect 31 33 July 1, 2003, and applies to urban renewal areas established 31 34 before, on, or after the effective date of this portion of the 31 35 bill. 32 1 The division defines "indebtedness" to include a written 32 2 agreement to suspend, abate, exempt, rebate, refund, or 32 3 reimburse property taxes or to provide a grant for property 32 4 taxes paid. This portion of the division takes effect July 1, 32 5 2003, and applies to urban renewal plans adopted, and urban 32 6 renewal areas established, before, on, or after the effective 32 7 date. Effective for fiscal years beginning on or after July 32 8 1, 2005, the division prohibits the use of such agreements for 32 9 property taxes on retail property. 32 10 The division amends the definition of "urban renewal 32 11 project" to provide that it does not include activities or 32 12 undertakings relating to a business which is or will be 32 13 located in the area of operation of a municipality if the 32 14 business has closed or reduced its operation in one area of 32 15 the state and relocated substantially the same operation into 32 16 the area of operation of the municipality. This portion of 32 17 the division takes effect July 1, 2003, and applies to urban 32 18 renewal plans adopted, and urban renewal areas established, 32 19 before, on, or after the effective date. 32 20 The division provides that, beginning with fiscal years 32 21 beginning on or after July 1, 2007, the foundation property 32 22 tax ($5.40 per $1,000 of assessed value of taxable property) 32 23 imposed on property in an urban renewal area will not be 32 24 divided and paid to a municipality. 32 25 The division specifies that a municipality shall certify by 32 26 December 1 of each year the amount of loans, advances, 32 27 indebtedness, or bonds which qualify for payment from a 32 28 division of revenue for the following fiscal year. The 32 29 division also requires that the municipality certify the total 32 30 amount of outstanding loans, advances, indebtedness, or bonds 32 31 which qualify for payment from divided revenues. This portion 32 32 of the division takes effect July 1, 2003, and applies to 32 33 urban renewal areas established before, on, or after the 32 34 effective date. 32 35 The division provides that the assessment limitation (i.e., 33 1 rollback) amount shall be subtracted from the increment value 33 2 amount and the base value amount in the proportion that the 33 3 value of each bears to the total value of the property in the 33 4 urban renewal area if it is an urban renewal area established 33 5 pursuant to an urban renewal plan adopted on or after July 1, 33 6 2003, or if it is territory amended into an urban renewal area 33 7 established pursuant to an urban renewal plan adopted before 33 8 July 1, 2003, if such amendment was approved on or after July 33 9 1, 2003. 33 10 LSB 3447XC 80 33 11 tm/sh/8
Text: SSB01198 Text: SSB01200 Text: SSB01100 - SSB01199 Text: SSB Index Bills and Amendments: General Index Bill History: General Index
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