Senate File 344 - Enrolled




                                             SENATE FILE 344

                             AN ACT
 RELATING TO THE REQUIREMENTS OF CERTAIN FINANCIAL ASSISTANCE
    PROGRAMS ADMINISTERED BY THE DEPARTMENT OF ECONOMIC
    DEVELOPMENT INCLUDING A REORGANIZATION OF THE GROW IOWA
    VALUES FUND AND CREATING A GROW IOWA VALUES FINANCIAL
    ASSISTANCE PROGRAM.

 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

                           DIVISION I
              GROW IOWA VALUES FUND REORGANIZATION
    Section 1.  NEW SECTION.  15G.108A  DEFINITIONS.
    For purposes of this chapter, unless the context otherwise
 requires:
    1.  "Base employment level" means the number of full=time
 equivalent positions at a business, as established by the
 department and a business using the business's payroll
 records, as of the date a business applies for financial
 assistance under the program.
    2.  "Benefit" means nonwage compensation provided to an
 employee.  Benefits typically include medical and dental
 insurance plans, pension, retirement, and profit=sharing
 plans, child care services, life insurance coverage, vision
 insurance coverage, disability insurance coverage, and any
 other nonwage compensation as determined by the board.
    3.  "Board" means the Iowa economic development board.
    4.  "County wage" means the county wage calculation
 performed by the department pursuant to section 15G.112,
 subsection 3.
    5.  "Created job" means a new, permanent, full=time
 equivalent position added to a business's payroll in excess of
 the business's base employment level.
    6.  "Department" means the department of economic
 development.
    7.  "Financial assistance" means assistance provided only
 from the funds, rights, and assets legally available to the
 department pursuant to this chapter and includes but is not
 limited to assistance in the form of grants, loans, forgivable
 loans, and royalty payments.
    8.  "Fiscal impact ratio" means a ratio calculated by
 estimating the amount of taxes to be received from a business
 by the state and dividing the estimate by the estimated cost
 to the state of providing certain financial incentives to the
 business, reflecting a ten=year period of taxation and
 incentives and expressed in terms of current dollars.  For
 purposes of the grow Iowa values financial assistance program,
 "fiscal impact ratio" does not include taxes received by
 political subdivisions.
    9.  "Full=time equivalent position" means a non=part=time
 position for the number of hours or days per week considered
 to be full=time work for the kind of service or work performed
 for an employer.  Typically, a full=time equivalent position
 requires two thousand eighty hours of work in a calendar year,
 including all paid holidays, vacations, sick time, and other
 paid leave.
    10.  "Fund" means the grow Iowa values fund created in
 section 15G.111.
    11.  "Maintenance period" means the period of time between
 the project completion date and maintenance period completion
 date.
    12.  "Maintenance period completion date" means the date on
 which the maintenance period ends.
    13.  "Project completion date" means the date by which a
 recipient of financial assistance has agreed to meet all the
 terms and obligations contained in an agreement with the
 department as described in section 15G.112, subsection 1,
 paragraph "d".
    14.  "Project completion period" means the period of time
 between the date financial assistance is awarded and the
 project completion date.
    15.  "Qualifying wage threshold" means the county wage or
 the regional wage, as calculated by the department pursuant to
 section 15G.112, subsection 3, whichever is lower.
    16.  "Regional wage" means the regional wage calculation
 performed by the department pursuant to section 15G.112,
 subsection 3.
    17.  "Retained job" means a full=time equivalent position,
 in existence at the time an employer applies for financial
 assistance which remains continuously filled or authorized to
 be filled as soon as possible and which is at risk of
 elimination if the project for which the employer is seeking
 assistance does not proceed.
    Sec. 2.  Section 15G.111, Code 2009, is amended to read as
 follows:
    15G.111  APPROPRIATIONS GROW IOWA VALUES FUND ==
 APPROPRIATION == ALLOCATION OF FUND MONEYS.
    1.  a.  For the fiscal period beginning July 1, 2007, and
 ending June 30, 2015, there is appropriated each fiscal year
 from the grow Iowa values fund created in section 15G.108, the
 following amounts for the purposes designated:
    (1)  For each fiscal year of the fiscal period beginning
 July 1, 2007, and ending June 30, 2009, to the department of
 economic development thirty million dollars for the following
 programs administered by the department:
    (a)  The targeted small business financial assistance
 program established pursuant to section 15.247.
    (b)  The community economic betterment program established
 pursuant to section 15.317.
    (c)  The entrepreneurial ventures assistance program
 established pursuant to section 15.339.
    (d)  The value=added agricultural products and processes
 financial assistance program established pursuant to section
 15E.111.
    (e)  The physical infrastructure financial assistance
 program established pursuant to section 15E.175.
    (f)  The loan and credit guarantee program established
 pursuant to section 15E.224.
    (2)  For each fiscal year of the fiscal period beginning
 July 1, 2009, and ending June 30, 2015, to the department of
 economic development thirty=two million dollars for the
 following programs administered by the department:
    (a)  The targeted small business financial assistance
 program established pursuant to section 15.247.
    (b)  The community economic betterment program established
 pursuant to section 15.317.
    (c)  The entrepreneurial ventures assistance program
 established pursuant to section 15.339.
    (d)  The value=added agricultural products and processes
 financial assistance program established pursuant to section
 15E.111.
    (e)  The physical infrastructure financial assistance
 program established pursuant to section 15E.175.
    (f)  The loan and credit guarantee program established
 pursuant to section 15E.224.
    b.  Each year that moneys are appropriated under this
 subsection, the department shall allocate a percentage of the
 moneys for each of the following types of activities:
    (1)  Business start=ups.
    (2)  Business expansion.
    (3)  Business modernization.
    (4)  Business attraction.
    (5)  Business retention.
    (6)  Marketing.
    (7)  Research and development.
    c.  The department shall require an applicant for moneys
 appropriated under this subsection to include in the
 application a statement regarding the intended return on
 investment.  A recipient of moneys appropriated under this
 subsection shall annually submit a statement to the department
 regarding the progress achieved on the intended return on
 investment stated in the application.  A recipient of moneys
 appropriated under this subsection shall also annually submit
 a statement to the department regarding the type and amount of
 funds spent on any major maintenance, repair, or renovation of
 any new or existing building.  The department, in cooperation
 with the department of revenue, shall develop a method of
 identifying and tracking each new job created and the
 leveraging of moneys through financial assistance from moneys
 appropriated under this subsection.  The department of
 economic development shall identify research and development
 activities funded through financial assistance from not more
 than ten percent of the moneys appropriated under this
 subsection, and, instead of determining return on investment
 and job creation for the identified funding, determine the
 potential impact on the state's economy.  The department's
 annual project status report satisfies the reporting
 requirement contained in this section.
    d.  The department may use moneys appropriated under this
 subsection to procure technical assistance from either the
 public or private sector, for information technology purposes,
 for a statewide labor shed study, and for rail, air, or river
 port transportation=related purposes.  The use of moneys
 appropriated for rail, air, or river port
 transportation=related purposes must be directly related to an
 economic development project and the moneys must be used to
 leverage other financial assistance moneys.
    e.  Of the moneys appropriated under this subsection, the
 department may use up to one and one=half percent for
 administrative purposes.
    f.  The Iowa economic development board shall approve or
 deny applications for financial assistance provided with
 moneys appropriated under this subsection.  In providing such
 financial assistance, the board shall, whenever possible,
 coordinate the assistance with other programs administered by
 the department of economic development, including the
 community economic betterment program established in section
 15.317 and the value=added agricultural products and processes
 financial assistance program established in section 15E.111.
    g.  It is the policy of this state to expand and stimulate
 the state economy by advancing, promoting, and expanding
 biotechnology industries in this state.  To implement this
 policy, the Iowa economic development board shall consider
 providing assistance to projects that increase value=added
 income to individuals or organizations involved in
 agricultural business or biotechnology projects.  Such a
 project need not create jobs specific to the project site;
 however, such a project must foster the knowledge and
 creativity necessary to promote the state's agricultural
 economy and to increase employment in urban and rural areas as
 a result.
    2.  a.  For the fiscal period beginning July 1, 2005, and
 ending June 30, 2015, there is appropriated each fiscal year
 from the grow Iowa values fund created in section 15G.108 to
 the department of economic development
    1.  FUND CREATED.  A grow Iowa values fund is created in
 the state treasury under the control of the department of
 economic development consisting of the following:
    a.  The moneys appropriated to the department pursuant to
 section 15G.110.
    b.  Payments of interest, repayments of moneys loaned, and
 recaptures of grants and loans made pursuant to this chapter.
    c.  All moneys accruing to the department, including
 payments of interest, repayments of moneys loaned, royalty
 payments received, and recaptures of grants, loans, or other
 forms of financial assistance provided to recipients, from the
 department's administration of the following preexisting
 programs:
    (1)  The community economic betterment program established
 pursuant to section 15.317, Code 2009.
    (2)  The entrepreneurial ventures assistance program
 established pursuant to section 15.339, Code 2009.
    (3)  The value=added agricultural products and processes
 financial assistance program established pursuant to section
 15E.111, Code 2009.
    (4)  The physical infrastructure assistance program
 established pursuant to section 15E.175, Code 2009.
    (5)  The loan and credit guarantee program established
 pursuant to section 15E.224, Code 2009.
    2.  FUND ADMINISTRATION.
    a.  The department shall administer the fund consistent
 with the provisions of this chapter and with other pertinent
 Acts of the general assembly, including providing financial
 assistance awards pursuant to section 15G.112.
    b.  Moneys credited to the fund are not subject to section
 8.33.  Notwithstanding section 12C.7, interest or earnings on
 moneys in the fund shall be credited to the fund.
    c.  Of the moneys accruing to the fund pursuant to
 subsection 1, paragraph "c", the department, with the approval
 of the board, may allocate an amount necessary to fund
 administrative and operations costs.  An allocation pursuant
 to this section may be made in addition to any allocations
 made pursuant to subsection 4, paragraph "a".
    3.  APPROPRIATION.  For each fiscal year of the fiscal
 period beginning July 1, 2009, and ending June 30, 2015, there
 is appropriated from the fund to the department of economic
 development for purposes of making expenditures pursuant to
 this chapter fifty million dollars.
    4.  DEPARTMENTAL PURPOSES.  Of the moneys appropriated to
 the department pursuant to subsection 3, the department shall
 allocate thirty=two million dollars each fiscal year as
 follows:
    a.  For administrative costs, an amount not more than one
 and one=half percent of the moneys subject to allocation under
 this subsection.
    b.  For awards of financial assistance pursuant to section
 15G.112, an amount approved by the board.
    c.  For marketing proposals pursuant to section 15G.109, an
 amount approved by the board.
    d.  For a statewide labor shed study conducted in
 coordination with the department of workforce development, an
 amount approved by the board.
    e.  For responding to opportunities and threats, as
 described in section 15G.113, an amount approved by the board.
    f.  For procuring technical assistance from either the
 public or private sector and for information technology
 purposes, an amount approved by the board.
    g.  For covering existing guarantees made under the loan
 and credit guarantee program established pursuant to section
 15E.224, Code 2009, an amount approved by the board.
    h.  During the fiscal year beginning July 1, 2009, and
 ending June 30, 2010, for deposit in the renewable fuel
 infrastructure fund as provided in section 15G.205, two
 million dollars.  This paragraph is repealed on July 1, 2010.
    5.  BOARD OF REGENTS INSTITUTIONS.  Of the moneys
 appropriated to the department pursuant to subsection 3, the
 department shall allocate five million dollars each fiscal
 year for financial assistance to institutions of higher
 learning under the control of the state board of regents.
    a.  The financial assistance allocated pursuant to this
 subsection is for capacity building infrastructure in areas
 related to technology commercialization, for marketing and
 business development efforts in areas related to technology
 commercialization, entrepreneurship, and business growth, and
 for infrastructure projects and programs needed to assist in
 the implementation of activities under chapter 262B.
    b.  In allocating moneys to institutions under the control
 of the state board of regents, the board shall require the
 institutions to provide a one=to=one match of additional
 moneys for the activities funded with moneys appropriated
 under this subsection.
    c.  The state board of regents shall annually prepare a
 report for submission to the governor, the general assembly,
 the department, and the legislative services agency regarding
 the activities, projects, and programs funded with moneys
 appropriated allocated under this subsection.
    b.  d.  The state board of regents may allocate disburse
 any moneys appropriated allocated under this subsection and
 received from the department for financial assistance to a
 single biosciences development organization determined by the
 department to possess expertise in promoting the area of
 bioscience entrepreneurship.  The organization must be
 composed of representatives of both the public and the private
 sector and shall be composed of subunits or subcommittees in
 the areas of existing identified biosciences platforms,
 education and workforce development, commercialization,
 communication, policy and governance, and finance.  Such
 financial assistance shall be used for purposes of activities
 related to biosciences and bioeconomy development under
 chapter 262B, and to accredited private universities in this
 state.
    3.  For the fiscal period beginning July 1, 2005, and
 ending June 30, 2015, there is appropriated each fiscal year
 from the grow Iowa values fund created in section 15G.108 to
 the department of economic development
    6.  STATE PARKS.  Of the moneys appropriated to the
 department pursuant to subsection 3, the department shall
 allocate one million dollars each fiscal year for purposes of
 providing financial assistance for projects in targeted state
 parks, state banner parks, and destination parks.
    a.  The department of natural resources shall submit a plan
 to the department of economic development board for the
 proposed expenditure of moneys appropriated under received
 from the department pursuant to this subsection.  The plan
 shall focus on improving state parks, state banner parks, and
 destination parks for economic development purposes.  The
 board shall approve, deny, modify, or defer proposed
 expenditures under the plan.  Based on the report plan
 submitted and the action of the board in regard to the plan,
 the department of economic development shall provide financial
 assistance to the department of natural resources for support
 of state parks, state banner parks, and destination parks.
    b.  For purposes of this subsection, "state banner park"
 means a park with multiple uses and which focuses on the
 economic development benefits of a community or area of the
 state.
    4.  For the fiscal period beginning July 1, 2005, and
 ending June 30, 2015, there is appropriated each fiscal year
 from the grow Iowa values fund created in section 15G.108 to
 the office of the treasurer of state
    7.  CULTURAL TRUST FUND.  Of the moneys appropriated to the
 department pursuant to subsection 3, the department shall
 allocate one million dollars each fiscal year for deposit in
 the Iowa cultural trust fund created in section 303A.4.  The
 board of trustees of the Iowa cultural trust shall annually
 prepare a report for submission to the governor, the general
 assembly, the department, and the legislative services agency
 regarding the activities, projects, and programs funded with
 moneys allocated under this subsection.
    5.  For the fiscal period beginning July 1, 2005, and
 ending June 30, 2015, there is appropriated each fiscal year
 from the grow Iowa values fund created in section 15G.108 to
 the department of economic development
    8.  COMMUNITY COLLEGES.  Of the moneys appropriated to the
 department pursuant to subsection 3, the department shall
 allocate seven million dollars each fiscal year for deposit
 into the workforce training and economic development funds of
 the community colleges created pursuant to section 260C.18A.
    6.  a.  For the fiscal period beginning July 1, 2005, and
 ending June 30, 2015, there is appropriated each fiscal year
 from the grow Iowa values fund created in section 15G.108 to
 the department of economic development
    9.  REGIONAL FINANCIAL ASSISTANCE.  Of the moneys
 appropriated to the department pursuant to subsection 3, the
 department shall allocate one million dollars each fiscal year
 for providing economic development region financial assistance
 under section 15E.232, subsections 3, 5, 6, 7, and 8, and
 under section 15E.233, and for providing financial assistance
 for business accelerators pursuant to section 15E.351.
    b.  a.  Of the moneys appropriated allocated in this
 subsection, the department shall transfer three hundred fifty
 thousand dollars each fiscal year for the fiscal period
 beginning July 1, 2005 2009, and ending June 30, 2015, to Iowa
 state university of science and technology, for purposes of
 providing financial assistance to establish small business
 development centers in areas of the state previously served by
 a small business development center, to develop business
 succession plans, and to maintain existing small business
 development centers.  Of the three hundred fifty thousand
 dollars transferred each fiscal year pursuant to this
 paragraph, not more than one hundred thousand dollars shall be
 used for business succession activities.  Financial assistance
 for a small business development center shall not exceed fifty
 thousand dollars per fiscal year and shall not be awarded
 unless the city or county where the center is located or
 scheduled to be located demonstrates the ability to obtain
 local matching moneys on a dollar=for=dollar basis for at
 least twenty=five percent of the cost of the center.
    c.  b.  Of the moneys appropriated allocated under this
 subsection, the department may use up to fifty thousand
 dollars each fiscal year during the fiscal period beginning
 July 1, 2005 2009, and ending June 30, 2015, for purposes of
 providing training, materials, and assistance to Iowa business
 resource centers.
    7.  a.  For the fiscal period beginning July 1, 2006, and
 ending June 30, 2009, there is appropriated for each fiscal
 year from the grow Iowa values fund created in section 15G.108
 two million dollars for deposit in the renewable fuel
 infrastructure fund as provided in section 15G.205.
    b.  This subsection is repealed on July 1, 2009.
    8.  For the fiscal period beginning July 1, 2007, and
 ending June 30, 2015, there is appropriated for each fiscal
 year from the grow Iowa values fund created in section 15G.108
 to the department of economic development
    10.  COMMERCIALIZATION SERVICES.  Of the moneys
 appropriated to the department pursuant to subsection 3, the
 department shall allocate three million dollars for the
 purpose of providing the commercialization services described
 in section 15.411, subsections 2 and 3.
    9.  For the fiscal period beginning July 1, 2008, and
 ending June 30, 2015, from the moneys appropriated each fiscal
 year from the grow Iowa values fund created in section
 15G.108, to the department for program administration pursuant
 to subsection 1, paragraph "a", the department may allocate up
 to five million dollars to projects qualifying for assistance
 under the physical infrastructure financial assistance program
 established pursuant to section 15E.175 which, notwithstanding
 section 15G.112, shall not be subject to job or wage
 requirements.  The department may allocate moneys from the
 grow Iowa values fund above five million dollars each year to
 projects qualifying for assistance under the physical
 infrastructure financial assistance program but such projects
 shall be subject to the job and wage requirements of section
 15G.112.
    10.  Notwithstanding section 8.33, moneys that remain
 unexpended at the end of a fiscal year shall not revert to any
 fund but shall remain available for expenditure for the
 designated purposes during the succeeding fiscal year.
    Sec. 3.  Section 15G.112, Code 2009, is amended by striking
 the section and inserting in lieu thereof the following:
    15G.112  GROW IOWA VALUES FINANCIAL ASSISTANCE PROGRAM.
    1.  PROGRAM ESTABLISHED.
    a.  The department shall establish and administer a grow
 Iowa values financial assistance program for purposes of
 providing financial assistance from the fund to applicants.
 The financial assistance shall be provided from moneys
 credited to the grow Iowa values fund and not otherwise
 obligated or allocated pursuant to section 15G.111.
    b.  The program shall consist of the components described
 in subsections 4 through 9.  Each fiscal year, the department,
 with the approval of the board, shall allocate an amount of
 financial assistance from the fund that may be awarded under
 each component of the program to qualifying applicants.
    c.  In making awards of financial assistance pursuant to
 subsections 4 and 5, the department shall calculate the fiscal
 impact ratio, and in reviewing each application to determine
 the amount of financial assistance to award, the board shall
 consider the appropriateness of the award to the fiscal impact
 ratio of the project and to other factors deemed relevant by
 the board.
    d.  For each award of financial assistance under the
 program, the department and the recipient of the financial
 assistance shall enter into an agreement describing the terms
 and obligations under which the financial assistance is being
 provided.  The department may negotiate, subject to approval
 by the board, the terms and obligations of the agreement.  An
 agreement shall contain but need not be limited to all of the
 following terms and obligations:
    (1)  A project completion date.
    (2)  A maintenance period completion date.
    (3)  The number of jobs to be created or retained.
    (4)  The amount of financial assistance to be provided
 under the program.
    (5)  An amount of matching funds from a city or county.
 The department shall adopt by rule a formula for determining
 the amount of matching funds required.
    e.  The department may enforce the terms and obligations of
 agreements described in paragraph "d".
    f.  A recipient of financial assistance shall meet all
 terms and obligations in an agreement by the project
 completion date, but the board may for good cause extend the
 project completion date.
    g.  During the maintenance period, a recipient of financial
 assistance shall continue to comply with the terms and
 obligations of an agreement entered into pursuant to paragraph
 "d".
    h.  If a business that is approved to receive financial
 assistance experiences a layoff within this state or closes
 any of its facilities within this state, the board has the
 discretion to reduce or eliminate some or all of the amount of
 financial assistance to be received.  If a business has
 received financial assistance under this part and experiences
 a layoff within this state or closes any of its facilities
 within this state, the business may be subject to repayment of
 all or a portion of the incentives that the business has
 received.
    2.  STANDARD PROGRAM REQUIREMENTS.  In addition to the
 eligibility requirements of the individual program components
 applicable to the financial assistance sought, a business
 shall be subject to all of the following requirements:
    a.  The business shall submit to the department with its
 application for financial assistance a report describing all
 violations of environmental law or worker safety law within
 the last five years.  If, upon review of the application, the
 board finds that a business has a record of violations of the
 law, statutes, rules, or regulations that tends to show a
 consistent pattern, the board shall not make an award of
 financial assistance to the business unless the board finds
 either that the violations did not seriously affect public
 health, public safety, or the environment, or, if such
 violations did seriously affect public health, public safety,
 or the environment, that mitigating circumstances were
 present.
    b.  The business shall not have closed, or substantially
 reduced, operations in one area of this state and relocated
 substantially the same operations in a community in another
 area of this state.  However, this paragraph shall not be
 construed to prohibit a business from expanding its operation
 in a community if existing operations of a similar nature in
 this state are not closed or substantially reduced.
    c.  The proposed project shall not negatively impact other
 businesses in competition with the business being considered
 for assistance.  The department shall make a good faith effort
 to identify existing Iowa businesses within an industry in
 competition with the business being considered for financial
 assistance.  The department shall make a good faith effort to
 determine the probability that the proposed financial
 assistance will displace employees of the existing businesses.
 In determining the impact on businesses in competition with
 the business being considered for financial assistance, jobs
 created or retained as a result of other jobs being displaced
 elsewhere in the state shall not be considered direct jobs
 created or retained.
    d.  The business shall only employ individuals legally
 authorized to work in this state.  In addition to any and all
 other applicable penalties provided by current law, all or a
 portion of the assistance received by a business which has
 received financial assistance under the program and is found
 to knowingly employ individuals not legally authorized to work
 in this state is subject to recapture by the department.
    3.  COUNTY AND REGIONAL WAGE CALCULATIONS.
    a.  In administering the financial assistance program, the
 department shall annually calculate a county wage and a
 regional wage for each county for purposes of determining the
 eligibility of applicants for financial assistance under the
 program.
    (1)  The county wage and the regional wage shall be an
 hourly wage rate based on data from the most recent four
 quarters of wage and employment information from the quarterly
 covered wage and employment data report issued by the
 department of workforce development.
    (2)  The department shall not include the value of benefits
 when calculating the county wage or the regional wage.
    b.  The county wage shall be the average of the wages paid
 for jobs performed in the county by employers in all
 employment categories except the employment categories of
 government, agriculture, and mining.
    c.  The regional wage shall be calculated as follows:
    (1)  Multiplying by four the county wage of a county.
    (2)  Adding together the county wage of each of the
 counties adjacent to the county.
    (3)  Adding the result obtained in subparagraph (1) to the
 result obtained in subparagraph (2).
    (4)  Dividing the result obtained in subparagraph (3) by
 the sum of the number of counties adjacent to the county plus
 four.
    4.  ONE HUNDRED THIRTY PERCENT WAGE COMPONENT.
    a.  In order to qualify for financial assistance under this
 component of the program, a business shall meet all of the
 following requirements:
    (1)  The business shall create or retain jobs as part of a
 project, and the jobs created or retained shall meet one of
 the following requirements:
    (a)  If the business is creating jobs, the business shall
 demonstrate that the jobs will pay at least one hundred
 percent of the qualifying wage threshold at the start of the
 project completion period, at least one hundred thirty percent
 of the qualifying wage threshold by the project completion
 date, and at least one hundred thirty percent of the
 qualifying wage threshold until the maintenance period
 completion date.
    (b)  If the business is retaining jobs, the business shall
 demonstrate that the jobs retained will pay at least one
 hundred thirty percent of the qualifying wage threshold
 throughout both the project completion period and the
 maintenance period.
    (2)  The business shall provide a sufficient package of
 benefits to each employee holding a created or retained job.
 The board, at the recommendation of the department, shall
 adopt rules determining what constitutes a sufficient package
 of benefits.
    (3)  The business shall demonstrate that the jobs created
 or retained will have a sufficient impact on state and local
 government revenues as determined by the department after
 calculating the fiscal impact ratio of the project.
    (4)  The business shall not be a retail business or a
 business where entrance is limited by a cover charge or
 membership requirement.
    b.  A business providing a sufficient package of benefits
 to each employee holding a created or retained job shall
 qualify for a credit against any of the one hundred thirty
 percent qualifying wage threshold requirements described in
 paragraph "a", subparagraph (1).  The credit shall be
 calculated and applied as follows:
    (1)  By multiplying the qualifying wage threshold of the
 county in which the business is located by one and
 three=tenths.
    (2)  By multiplying the result of subparagraph (1) by
 one=tenth.
    (3)  The amount of the result of subparagraph (2) shall be
 credited against the amount of the one hundred thirty percent
 qualifying wage threshold requirement that the business is
 required to meet under paragraph "a", subparagraph (1).
    (4)  The credit shall not be applied against the one
 hundred percent of qualifying wage threshold requirement
 described in paragraph "a", subparagraph (1).
    c.  Notwithstanding the qualifying wage threshold
 requirements described in paragraph "a", subparagraph (1), if
 a business is also the recipient of financial assistance under
 another program administered by the department, and the other
 program requires the payment of higher wages than the wages
 required under this subsection, the business shall be required
 to pay the higher wages.
    d.  An applicant may apply to the board for a waiver of the
 qualifying wage threshold requirements of this subsection.
    5.  ONE HUNDRED PERCENT WAGE COMPONENT.  In order to
 qualify for financial assistance under this component of the
 program, a business shall meet all of the following
 requirements:
    a.  The business shall create or retain jobs as part of a
 project, and the jobs created or retained shall meet one of
 the following qualifying wage thresholds:
    (1)  If the business is creating jobs, the business shall
 demonstrate that the jobs pay at least one hundred percent of
 the qualifying wage threshold at the start of the project
 completion period, by the project completion date, and until
 the maintenance period completion date.
    (2)  If the business is retaining jobs, the business shall
 demonstrate that the jobs retained will pay at least one
 hundred percent of the qualifying wage threshold throughout
 both the project completion period and the maintenance period.
    b.  The business shall provide a sufficient package of
 benefits to each employee holding a created or retained job.
 The board, at the recommendation of the department, shall
 adopt rules determining what constitutes a sufficient package
 of benefits.
    c.  The business shall demonstrate that the jobs created or
 retained will have a sufficient impact on state and local
 government revenues as determined by the department after
 calculating the fiscal impact ratio of the project.
    d.  The business shall not be a retail business or a
 business where entrance is limited by a cover charge or
 membership requirement.
    6.  ENTREPRENEURIAL COMPONENT.
    a.  In order to qualify for financial assistance under the
 entrepreneurial component of the program, a business shall
 meet all of the following requirements:
    (1)  The business shall be an early=stage business.  For
 purposes of this subparagraph, "early=stage business" means a
 business that has been competing in a particular industry for
 three years or less.
    (2)  The business shall have consulted with and obtained a
 letter of endorsement from either a business accelerator
 approved by the department or from an entrepreneurial
 development organization recognized by the department.
    b.  Notwithstanding subsection 1, paragraph "d",
 subparagraph (5), a business applying for financial assistance
 under the entrepreneurial component is eligible for financial
 assistance regardless of whether the business has received
 matching funds from a city or county.
    c.  In awarding financial assistance under the
 entrepreneurial component of the program, the department and
 the board shall give priority to businesses in those sectors
 of the Iowa economy with the greatest potential for growth and
 expansion.  Sectors having such potential include but are not
 limited to biotechnology, recyclable materials, software
 development, computer=related products, advanced materials,
 advanced manufacturing, and medical and surgical instruments.
    7.  INFRASTRUCTURE COMPONENT.  In order to qualify for
 financial assistance under the infrastructure component of the
 program, a business or community shall be engaged in a
 physical infrastructure project.  For purposes of this
 subsection, "physical infrastructure project" means a project
 that creates necessary infrastructure for economic success
 throughout Iowa, provides the foundation for the creation of
 jobs, and that involves the investment of a substantial amount
 of capital.  Physical infrastructure projects include but are
 not limited to projects involving any mode of transportation;
 public works and utilities such as sewer, water, power, or
 telecommunications; physical improvements that mitigate,
 prevent, or eliminate environmental contamination; and other
 similar projects deemed to be physical infrastructure by the
 department.
    8.  VALUE=ADDED AGRICULTURE COMPONENT.
    a.  In order to qualify for financial assistance under the
 value=added agriculture component of the program, a business
 shall be a production facility engaged in the process of
 adding value to agricultural products.  Projects considered
 eligible under this subsection include but are not limited to
 innovative agricultural products and processes, innovative and
 new renewable fuels, agricultural biotechnology, biomass and
 alternative energy production, and organic products and
 emerging markets.  Financial assistance is available for
 project development as well as project creation.
    b.  The board and the department shall not award financial
 assistance under the value=added agriculture component in an
 amount exceeding fifty percent of the total capital investment
 in a project.
    c.  Notwithstanding subsection 1, paragraph "d",
 subparagraph (5), a business applying for financial assistance
 under the value=added agriculture component is eligible for
 financial assistance regardless of whether the business has
 received matching funds from a city or county.
    9.  DISASTER RECOVERY COMPONENT.  In order to qualify for
 financial assistance under the disaster recovery component of
 the program, a business shall meet all of the following
 conditions:
    a.  The business is located in an area declared a disaster
 area by a federal official.
    b.  The business has sustained substantial physical damage
 and has closed as the result of a natural disaster.
    c.  The business has a plan for reopening that includes
 employing a sufficient number of the employees the business
 employed before the natural disaster occurred.  The department
 shall adopt rules governing the number of employees that is
 sufficient under this paragraph.
    d.  The business will pay wages at the same level after
 reopening as the business paid before the natural disaster
 occurred.
    Sec. 4.  NEW SECTION.  15G.113  OPPORTUNITIES AND THREATS.
    1.  The department, with the approval of the board, may
 award financial assistance from the fund to a business, an
 individual, a development corporation, a nonprofit
 organization, an organization established in section 28H.1, or
 a political subdivision of this state if, in the opinion of
 the department, a project presents a unique opportunity for
 economic development in this state, or if the project
 addresses a situation constituting a threat to the continued
 economic prosperity of this state.
    2.  The board shall adopt rules governing the eligibility
 of projects for financial assistance pursuant to this section.
    Sec. 5.  NEW SECTION.  15G.114  RULES.
    1.  The board, upon the recommendation of the department,
 shall adopt rules for the administration of this chapter in
 accordance with chapter 17A.
    2.  To the extent necessary, the rules shall provide for
 the inclusion of uniform terms and obligations in agreements
 between the department and the recipients of financial
 assistance under the grow Iowa values financial assistance
 program, the high quality jobs program, and the enterprise
 zone program.  For purposes of this section, "terms and
 obligations" includes but is not limited to the created or
 retained jobs, qualifying wage thresholds, project completion
 dates, project completion periods, maintenance periods, and
 maintenance period completion dates that are applicable to the
 grow Iowa values financial assistance program, the high
 quality job creation program, and the enterprise zone program.
    Sec. 6.  NEW SECTION.  15G.115  APPLICATIONS == ADVISORY
 BODY RECOMMENDATIONS == FINAL BOARD ACTIONS.
    1.  The department shall accept and process applications
 for financial assistance under the grow Iowa values financial
 assistance program.  After processing the applications, the
 department shall prepare them for review by advisory
 committees and for final action by the board as described in
 this section.
    2.  a.  Each application from a business for financial
 assistance under the grow Iowa values financial assistance
 program shall be reviewed by the due diligence committee
 established by the board pursuant to section 15.103,
 subsection 6.  The due diligence committee shall make a
 recommendation on each application to the board.
    b.  Each application from a business for financial
 assistance under the value=added agriculture component of the
 grow Iowa values financial assistance program shall be
 reviewed by the agricultural products advisory council
 established in section 15.203, which shall make a
 recommendation on each application to the board.
    3.  In overseeing the administration of the grow Iowa
 values fund and grow Iowa values financial assistance program
 pursuant to this chapter, the board shall do all of the
 following:
    a.  At the first scheduled meeting of the board after the
 start of a new fiscal year, take final action on all of the
 following:
    (1)  The department's recommendations for the annual fiscal
 year allocation of moneys in the fund, as provided in section
 15G.111, subsection 4.  The board may adjust the allocation of
 moneys during the fiscal year as necessary.
    (2)  The department's recommendations for the allocation of
 moneys among the program components referred to in section
 15G.112, subsection 1, paragraph "b".  The board may adjust
 the allocation of moneys during the fiscal year as necessary.
    b.  Consider the recommendation of the due diligence
 committee and the agricultural products advisory council on
 each application for financial assistance, as described in
 subsection 2, and take final action on each application.
    c.  Take final action on the required plans for proposed
 expenditures submitted by the entities receiving moneys
 allocated under section 15G.111, subsections 5 through 8.
    d.  Take final action on any rules recommended by the
 department for the implementation of the provisions of this
 chapter.
    Sec. 7.  Section 260G.6, Code 2009, is amended to read as
 follows:
    260G.6  PROGRAM CAPITAL FUNDS ALLOCATION FUND ESTABLISHED
 == ALLOCATION OF MONEYS.
    1.  An accelerated career education fund is established in
 the state treasury under the control of the department of
 economic development consisting of moneys appropriated to the
 department for purposes of funding the cost of accelerated
 career education program capital projects.
    2.  Projects funded pursuant to this section shall be for
 vertical infrastructure as defined in section 8.57, subsection
 6, paragraph "c".
    3.  If moneys are appropriated by the general assembly to
 support program capital costs, the moneys shall be allocated
 according to rules adopted by the department of economic
 development pursuant to chapter 17A.
    4.  In order to receive such moneys pursuant to this
 section, a program agreement approved by the community college
 board of directors must shall be in place, program capital
 cost requests shall be approved by the Iowa economic
 development board created in section 15.103, program capital
 cost requests shall be approved or denied not later than sixty
 days following receipt of the request by the department of
 economic development, and employer contributions toward
 program capital costs shall be certified and agreed to in the
 agreement.
    Sec. 8.  Sections 15.315 through 15.325, 15.338, 15.339,
 15E.111, 15E.112, 15E.175, 15E.221 through 15E.227, and
 15G.108, Code 2009, are repealed.
    Sec. 9.  FUND AND ACCOUNT BALANCE TRANSFERS.
    1.  Notwithstanding any provision of law to the contrary,
 effective July 1, 2009, the unencumbered or unobligated
 balance remaining in any of the funds or accounts associated
 with the following programs on June 30, 2009, shall be
 transferred to the grow Iowa values fund established in
 section 15G.112:
    a.  The community economic betterment program established
 pursuant to section 15.317.
    b.  The entrepreneurial ventures assistance program
 established pursuant to section 15.339.
    c.  The value=added agricultural products and processes
 financial assistance program established pursuant to section
 15E.111.
    d.  The physical infrastructure financial assistance
 program established pursuant to section 15E.175.
    e.  The loan and credit guarantee program established
 pursuant to section 15E.224.
    2.  If any moneys in the loan and credit guarantee fund
 established pursuant to section 15E.227 are obligated or
 encumbered at the close of the fiscal year ending June 30,
 2009, but subsequently become unencumbered or otherwise cease
 to be obligated, such moneys shall be transferred to the grow
 Iowa values fund established in section 15G.112 as soon as
 practicable.
    3.  Effective July 1, 2009, all unencumbered and
 unobligated moneys appropriated to the department of economic
 development pursuant to 2008 Iowa Acts, chapter 1179, section
 1, subsection 5, and 2008 Iowa Acts, chapter 1179, section 9,
 subsection 2, shall be transferred to the accelerated career
 education fund established in section 260G.6, subsection 1.
                           DIVISION II
                    HIGH QUALITY JOBS PROGRAM
    Sec. 10.  Section 15.326, Code 2009, is amended to read as
 follows:
    15.326  SHORT TITLE.
    This part shall be known and may be cited as the "High
 Quality Job Creation Act" Jobs Program".
    Sec. 11.  Section 15.327, Code 2009, is amended to read as
 follows:
    15.327  DEFINITIONS.
    As used in this part, unless the context otherwise
 requires:
    1.  "Benefit" has the same meaning as defined in section
 15G.108A.
    1.  2.  "Community" means a city, county, or entity
 established pursuant to chapter 28E.
    2.  3.  "Contractor or subcontractor" means a person who
 contracts with the eligible business or subcontracts with a
 contractor for the provision of property, materials, or
 services for the construction or equipping of a facility of
 the eligible business.
    4.  "Created job" has the same meaning as defined in
 section 15G.108A.
    3.  5.  "Department" means the Iowa department of economic
 development.
    4.  6.  "Eligible business" means a business meeting the
 conditions of section 15.329.
    7.  "Fiscal impact ratio" has the same meaning as defined
 in section 15G.108A.
    8.  "Maintenance period completion date" has the same
 meaning as defined in section 15G.108A.
    5.  9.  "Program" means the high quality job creation jobs
 program.
    6.  10.  "Project completion" means the first date upon
 which the average annualized production of finished product
 for the preceding ninety=day period at the manufacturing
 facility operated by the eligible business is at least fifty
 percent of the initial design capacity of the facility.  The
 eligible business shall inform the department of revenue in
 writing within two weeks of project completion date" has the
 same meaning as defined in section 15G.108A.
    7.  11.  "Qualifying investment" means a capital investment
 in real property including the purchase price of land and
 existing buildings and structures, site preparation,
 improvements to the real property, building construction, and
 long=term lease costs.  "Qualifying investment" also means a
 capital investment in depreciable assets.
    12.  "Qualifying wage threshold" has the same meaning as
 defined in section 15G.108A.
    13.  "Retained job" has the same meaning as defined in
 section 15G.108A.
    Sec. 12.  Section 15.329, subsections 1, 2, and 5, Code
 2009, are amended to read as follows:
    1.  To be eligible to receive incentives under this part, a
 business shall meet all of the following requirements:
    a.  If the qualifying investment is ten million dollars or
 more, the community has approved by ordinance or resolution
 the start=up, location, or expansion of the business for the
 purpose of receiving the benefits of this part.
    b.  The business has not closed or substantially reduced
 its operation operations in one area of the this state and
 relocated substantially the same operation operations in the a
 community in another area of this state.  This subsection does
 paragraph shall not be construed to prohibit a business from
 expanding its operation in the a community if existing
 operations of a similar nature in the this state are not
 closed or substantially reduced.
    c.  The business is not a retail or service business.
    2.  In addition to the requirements of subsection 1, a
 business shall do at least four of the following in order to
 be eligible for incentives under the program:
    a.  Offer a pension or profit=sharing plan to full=time
 employees.
    b.  (1)  Produce or manufacture high value=added goods or
 services or be engaged in one of the following industries:
    (a)  Value=added agricultural products.
    (b)  Insurance and financial services.
    (c)  Plastics.
    (d)  Metals.
    (e)  Printing paper or packaging products.
    (f)  Drugs and pharmaceuticals.
    (g)  Software development.
    (h)  Instruments and measuring devices and medical
 instruments.
    (i)  Recycling and waste management.
    (j)  Telecommunications.
    (k)  Trucking and warehousing.
    (2)  Retail and service businesses shall not be eligible
 for benefits under this part.
    c.  Provide and pay at least eighty percent of the cost of
 a standard medical and dental insurance plan for all full=time
 employees working at the facility in which the new investment
 occurred.
    d.  Make child care services available to its employees.
    e.  Invest annually no less than one percent of pretax
 profits, from the facility located to Iowa or expanded under
 the program, in research and development in Iowa.
    f.  Invest annually no less than one percent of pretax
 profits, from the facility located to Iowa or expanded under
 the program, in worker training and skills enhancement.
    g.  Have an active productivity and safety improvement
 program involving management and worker participation and
 cooperation with benchmarks for gauging compliance.
    h.  Occupy an existing facility, at least one of the
 buildings of which shall be vacant and shall contain at least
 twenty thousand square feet.
    c.  The business shall create or retain jobs as part of a
 project, and the jobs created or retained shall meet one of
 the following qualifying wage thresholds:
    (1)  If the business is creating jobs, the business shall
 demonstrate that the jobs will pay at least one hundred
 percent of the qualifying wage threshold at the start of the
 project completion period, at least one hundred thirty percent
 of the qualifying wage threshold by the project completion
 date, and at least one hundred thirty percent of the
 qualifying wage threshold until the maintenance period
 completion date.
    (2)  If the business is retaining jobs, the business shall
 demonstrate that the jobs retained will pay at least one
 hundred thirty percent of the qualifying wage threshold
 throughout both the project completion period and the
 maintenance period.
    d.  The business shall provide a sufficient package of
 benefits to each employee holding a created or retained job.
 The board, at the recommendation of the department, shall
 adopt rules determining what constitutes a sufficient package
 of benefits.
    e.  The business shall demonstrate that the jobs created or
 retained will have a sufficient impact on state and local
 government revenues as determined by the department after
 calculating the fiscal impact ratio of the project.
    f.  The business shall not be a retail business or a
 business where entrance is limited by a cover charge or
 membership requirement.
    g.  Notwithstanding the qualifying wage threshold
 requirements in paragraph "c", if a business is also the
 recipient of financial assistance under another program
 administered by the department, and the other program requires
 the payment of higher wages than the wages required under this
 subsection, the business shall be required to pay the higher
 wages.
    2.  A business providing a sufficient package of benefits
 to each employee holding a created or retained job shall
 qualify for a credit against the qualifying wage threshold
 requirements described in subsection 1, paragraph "c".  The
 credit shall be calculated in the manner described in section
 15G.112, subsection 4, paragraph "b".
    5.  The department shall also consider a variety of
 factors, including but not limited to the following in
 determining the eligibility of a business to participate in
 the program:
    a.  The quality of the jobs to be created or retained.  In
 rating the quality of the jobs, the department shall place
 greater emphasis on those jobs that have a higher wage scale,
 have a lower turnover rate, are full=time or career=type
 positions, provide comprehensive health benefits, or have
 other related factors which could be considered to be higher
 in quality, than to other jobs.  Businesses that have wage
 scales substantially below that of existing Iowa businesses in
 that area should be rated as providing the lowest quality of
 jobs and should therefore be given the lowest ranking for
 providing such assistance.
    b.  The impact of the proposed project on other businesses
 in competition with the business being considered for
 assistance.  The department shall make a good faith effort to
 identify existing Iowa businesses within an industry in
 competition with the business being considered for assistance.
 The department shall make a good faith effort to determine the
 probability that the proposed financial assistance will
 displace employees of the existing businesses.  In determining
 the impact on businesses in competition with the business
 being considered for assistance, jobs created or retained as a
 result of other jobs being displaced elsewhere in the state
 shall not be considered direct jobs created or retained.
    c.  The economic impact to the this state of the proposed
 project.  In measuring the economic impact, the department
 shall place greater emphasis on projects which have greater
 consistency with the state strategic plan than other projects.
 Greater consistency may include any or all of demonstrate the
 following:
    (1)  A business with a greater percentage of sales
 out=of=state or of import substitution.
    (2)  A business with a higher proportion of in=state
 suppliers.
    (3)  A project which would provide greater diversification
 of the state economy.
    (4)  A business with fewer in=state competitors.
    (5)  A potential for future job growth.
    (6)  A project which is not a retail operation.
    d.  If a business has, within three years of application
 for assistance, acquired or merged with an Iowa corporation or
 company and the business has made a good faith effort to hire
 the workers of the acquired or merged company.
    e.  Whether a business provides for a preference for hiring
 residents of the state, except for out=of=state employees
 offered a transfer to Iowa.
    f.  Whether all known required environmental permits have
 been issued and regulations met before moneys are released.
    Sec. 13.  Section 15.330, subsection 4, Code 2009, is
 amended to read as follows:
    4.  A business creating fifteen or fewer new high quality
 jobs shall have up to three years to complete a project and
 shall be required to maintain the jobs for an additional two
 years.  A business creating sixteen or more new high quality
 jobs shall have up to five years to complete a project and
 shall be required to maintain the jobs for an additional two
 years.  A project completion date, a maintenance period
 completion date, the number of jobs to be created or retained,
 or certain other terms and obligations described in section
 15G.112, subsection 1, paragraph "d", as the department deems
 necessary in order to make the requirements in project
 agreements uniform.  The department, with the approval of the
 board, may adopt rules as necessary for making such
 requirements uniform.  Such rules shall be in compliance with
 the provisions of this part and with the provisions of chapter
 15G.
    Sec. 14.  Section 15.331A, subsection 2, Code 2009, is
 amended by adding the following new paragraph:
    NEW PARAGRAPH.  c.  The eligible business shall inform the
 department of revenue in writing within two weeks of project
 completion.  For purposes of this section, "project
 completion" means the first date upon which the average
 annualized production of finished product for the preceding
 ninety=day period at the manufacturing facility operated by
 the eligible business is at least fifty percent of the initial
 design capacity of the facility.
    Sec. 15.  Section 15.333, subsection 1, unnumbered
 paragraph 1, Code 2009, is amended to read as follows:
    An eligible business may claim a tax credit equal to a
 percentage of the new investment directly related to new jobs
 created or retained by the location or expansion of an
 eligible business under the program.  The tax credit shall be
 amortized equally over five calendar years.  The tax credit
 shall be allowed against taxes imposed under chapter 422,
 division II, III, or V, and against the moneys and credits tax
 imposed in section 533.329.  If the business is a partnership,
 S corporation, limited liability company, cooperative
 organized under chapter 501 and filing as a partnership for
 federal tax purposes, or estate or trust electing to have the
 income taxed directly to the individual, an individual may
 claim the tax credit allowed.  The amount claimed by the
 individual shall be based upon the pro rata share of the
 individual's earnings of the partnership, S corporation,
 limited liability company, cooperative organized under chapter
 501 and filing as a partnership for federal tax purposes, or
 estate or trust.  The percentage shall be determined as
 provided in section 15.335A.  Any tax credit in excess of the
 tax liability for the tax year may be credited to the tax
 liability for the following seven years or until depleted,
 whichever occurs first.
    Sec. 16.  Section 15.335A, Code 2009, is amended to read as
 follows:
    15.335A  TAX INCENTIVES.
    1.  Tax incentives are available to eligible businesses as
 provided in this section.  The incentives are based upon the
 number of new high quality jobs created or retained that pay
 at least one hundred thirty percent of the qualifying wage
 threshold as computed pursuant to section 15G.112, subsection
 4, and the amount of the qualifying investment made according
 to the following schedule:
    a.  The number of new high quality jobs created with an
 annual wage, including benefits, equal to or greater than one
 hundred thirty percent of the average county wage is one of
 the following:
    (1)  a.  The number of jobs is zero and economic activity
 is furthered by the qualifying investment and the amount of
 the qualifying investment is one of the following:
    (a)  (1)  Less than one hundred thousand dollars, then the
 tax incentive is the investment tax credit of up to one
 percent.
    (b)  (2)  At least one hundred thousand dollars but less
 than five hundred thousand dollars, then the tax incentives
 are the investment tax credit of up to one percent and the
 sales tax refund.
    (c)  (3)  At least five hundred thousand dollars, then the
 tax incentives are the investment tax credit of up to one
 percent, the sales tax refund, and the additional research and
 development tax credit.
    (2)  b.  The number of jobs is one but not more than five
 and the amount of the qualifying investment is one of the
 following:
    (a)  (1)  Less than one hundred thousand dollars, then the
 tax incentive is the investment tax credit of up to two
 percent.
    (b)  (2)  At least one hundred thousand dollars but less
 than five hundred thousand dollars, then the tax incentives
 are the investment tax credit of up to two percent and the
 sales tax refund.
    (c)  (3)  At least five hundred thousand dollars, then the
 tax incentives are the investment tax credit of up to two
 percent, the sales tax refund, and the additional research and
 development tax credit.
    (3)  c.  The number of jobs is six but not more than ten
 and the amount of the qualifying investment is one of the
 following:
    (a)  (1)  Less than one hundred thousand dollars, then the
 tax incentive is the investment tax credit of up to three
 percent.
    (b)  (2)  At least one hundred thousand dollars but less
 than five hundred thousand dollars, then the tax incentives
 are the investment tax credit of up to three percent and the
 sales tax refund.
    (c)  (3)  At least five hundred thousand dollars, then the
 tax incentives are the investment tax credit of up to three
 percent, the sales tax refund, and the additional research and
 development tax credit.
    (4)  d.  The number of jobs is eleven but not more than
 fifteen and the amount of the qualifying investment is one of
 the following:
    (a)  (1)  Less than one hundred thousand dollars, then the
 tax incentive is the investment tax credit of up to four
 percent.
    (b)  (2)  At least one hundred thousand dollars but less
 than five hundred thousand dollars, then the tax incentives
 are the investment tax credit of up to four percent and the
 sales tax refund.
    (c)  (3)  At least five hundred thousand dollars, then the
 tax incentives are the investment tax credit of up to four
 percent, the sales tax refund, and the additional research and
 development tax credit.
    (5)  e.  The number of jobs is sixteen or but not more than
 thirty and the amount of the qualifying investment is one of
 the following:
    (a)  (1)  Less than one hundred thousand dollars, then the
 tax incentive is the investment tax credit of up to five
 percent.
    (b)  (2)  At least one hundred thousand dollars but less
 than five hundred thousand dollars, then the tax incentives
 are the investment tax credit of up to five percent and the
 sales tax refund.
    (c)  (3)  At least five hundred thousand dollars, then the
 tax incentives are the investment tax credit of up to five
 percent, the sales tax refund, and the additional research and
 development tax credit.
    b.  In lieu of paragraph "a", the number of new high
 quality jobs created with an annual wage, including benefits,
 equal to or greater than one hundred sixty percent of the
 average county wage is one of the following:
    (1)  f.  The number of jobs is twenty=one thirty=one but
 not more than thirty forty and the amount of the qualifying
 investment is at least ten million dollars, then the tax
 incentives are the local property tax exemption, the
 investment tax credit of up to six percent, the sales tax
 refund, and the additional research and development tax
 credit.
    (2)  g.  The number of jobs is thirty=one forty=one but not
 more than forty sixty and the amount of the qualifying
 investment is at least ten million dollars, then the tax
 incentives are the local property tax exemption, the
 investment tax credit of up to seven percent, the sales tax
 refund, and the additional research and development tax
 credit.
    (3)  h.  The number of jobs is forty=one sixty=one but not
 more than fifty eighty and the amount of the qualifying
 investment is at least ten million dollars, then the tax
 incentives are the local property tax exemption, the
 investment tax credit of up to eight percent, the sales tax
 refund, and the additional research and development tax
 credit.
    (4)  i.  The number of jobs is fifty=one eighty=one but not
 more than sixty one hundred and the amount of the qualifying
 investment is at least ten million dollars, then the tax
 incentives are the local property tax exemption, the
 investment tax credit of up to nine percent, the sales tax
 refund, and the additional research and development tax
 credit.
    (5)  j.  The number of jobs is at least sixty=one one
 hundred one and the amount of the qualifying investment is at
 least ten million dollars, then the tax incentives are the
 local property tax exemption, the investment tax credit of up
 to ten percent, the sales tax refund, and the additional
 research and development tax credit.
    2.  For purposes of this section:
    a.  "Additional research and development tax credit" means
 the research activities credit as provided under section
 15.335.
    b.  "Average county wage" means the annualized, average
 hourly wage based on wage information compiled by the
 department of workforce development.
    c.  "Benefits" means all of the following:
    (1)  Medical and dental insurance plans.  If an employer
 offers medical insurance under both single and family coverage
 plans, the employer shall be given credit for providing
 medical insurance under family coverage plans to all new
 employees.
    (2)  Pension and profit=sharing plans.
    (3)  Child care services.
    (4)  Life insurance coverage.
    (5)  Other benefits identified by rule of the department of
 revenue.
    b.  "Benefits" means the same as defined in section
 15G.108A.
    c.  "County wage" means the same as defined in section
 15G.108A.
    d.  "Investment tax credit" means the investment tax credit
 or the insurance premium tax credit as provided under section
 15.333 or 15.333A, respectively.
    e.  "Local property tax exemption" means the property tax
 exemption as provided under section 15.332.
    f.  "Qualifying wage threshold" means the same as defined
 in section 15G.108A.
    g.  "Regional wage" means the same as defined in section
 15G.108A.
    f.  h.  "Sales tax refund" means the sales and use tax
 refund as provided under section 15.331A or the corporate tax
 credit for certain sales taxes paid by third=party developers
 as provided under section 15.331C.
    3.  A community may apply to the Iowa economic development
 board for a project=specific waiver from the average county
 wage calculations qualifying wage threshold requirement
 provided in subsection 1 in order for an eligible business to
 receive to seek tax incentives for an eligible business.  The
 board may grant a project=specific waiver from the average
 county wage calculations qualifying wage threshold requirement
 in subsection 1 for the remainder of the a calendar year,
 based on average county wage or regional wage calculations
 brought forth by the applicant county including, but not
 limited to, any of the following:
    a.  The average county wage calculated without wage data
 from the business in the county employing the greatest number
 of full=time employees.
    b.  The average regional wage calculated without wage data
 from up to two adjacent counties.
    c.  The average county wage calculated without wage data
 from the largest city in the county.
    d.  A qualifying wage guideline for a specific project
 based upon unusual economic circumstances present in the city
 or county.
    e.  The annualized, average hourly wage paid by all
 businesses in the county located outside the largest city of
 the county.
    f.  The annualized, average hourly wage paid by all
 businesses other than the largest employer in the entire
 county.
    4.  Average wage calculations made under this section shall
 be calculated quarterly using wage data submitted to the
 department of workforce development during the previous four
 quarters.
    5.  4.  Each calendar year, the department shall not
 approve more than three million six hundred thousand dollars
 worth of investment tax credits for projects with qualifying
 investments of less than one million dollars.
    6.  5.  The department shall negotiate the amount of tax
 incentives provided to an applicant under the program in
 accordance with this section and section 15G.112, as
 applicable.
                          DIVISION III
                        ENTERPRISE ZONES
    Sec. 17.  Section 15E.193, subsections 1 and 2, Code 2009,
 are amended to read as follows:
    1.  A business which is or will be located, in whole or in
 part, in an enterprise zone is eligible to receive incentives
 and assistance under this division if the business has not
 closed or reduced its operation in one area of the state and
 relocated substantially the same operation into the enterprise
 zone and if the business meets all of the following
 requirements:
    a.  Is not a retail business or a business where entrance
 is limited by a cover charge or membership requirement.
    b.  Provides all full=time employees with the option of
 choosing one of the following:
    (1)  The business pays eighty percent of both of the
 following:
    (a)  The cost of a standard medical insurance plan.
    (b)  The cost of a standard dental insurance plan or an
 equivalent plan.
    (2)  The business provides the employee with a monetarily
 equivalent plan to the plan provided for in subparagraph (1).
    c.  Pays an average wage that is at or greater than ninety
 percent of the lesser of the average county wage or average
 regional wage, as determined by the department.  However, the
 wage paid by the business shall not be less than seven dollars
 and fifty cents per hour.
    b.  (1)  The business shall provide a sufficient package of
 benefits to each employee holding a created or retained job.
 For purposes of this paragraph, "created job" and "retained
 job" have the same meaning as defined in section 15G.108A.
    (2)  The board, upon the recommendation of the department,
 shall adopt rules determining what constitutes a sufficient
 package of benefits.
    c.  The business shall pay a wage that is at least ninety
 percent of the qualifying wage threshold.  For purposes of
 this paragraph, "qualifying wage threshold" has the same
 meaning as defined in section 15G.108A.
    d.  Creates or retains at least ten full=time equivalent
 positions and maintains them for at least ten years.  For an
 existing business in counties with a population of ten
 thousand or less or in cities with a population of two
 thousand or less, the commission may adopt a provision that
 allows the business to create at least five initial jobs with
 the additional jobs to be added in five years.  The business
 shall include in its strategic plan the timeline for job
 creation.  If the existing business fails to meet the ten=job
 creation requirement within the five=year period, all
 incentives or assistance will cease immediately until the
 maintenance period completion date.  For purposes of this
 paragraph, "maintenance period completion date" and "full=time
 equivalent position" have the same meanings as defined in
 section 15G.108A.
    e.  Makes a capital investment of at least five hundred
 thousand dollars.  If the business will be occupying a vacant
 building suitable for industrial use, the fair market value of
 the building and land, not to exceed two hundred fifty
 thousand dollars, shall be counted toward the capital
 investment requirement.  An existing business that has been
 operating in the enterprise zone for at least five years is
 exempt from the capital investment requirement of this
 paragraph of up to two hundred fifty thousand dollars of the
 fair market value, as established by an appraisal, of the
 building and land.
    f.  If the business is only partially located in an
 enterprise zone, the business must be located on contiguous
 parcels of land.
    2.  In addition to meeting the requirements under
 subsection 1, an eligible business shall provide the
 enterprise zone commission with all of the following:
    a.  The long=term strategic plan for the business which
 shall include labor and infrastructure needs.
    b.  Information dealing with the benefits the business will
 bring to the area.
    c.  Examples of why the business should be considered or
 would be considered a good business enterprise.
    d.  The impact the business will have on other businesses
 in competition with it.  The enterprise zone commission shall
 make a good faith effort to identify existing Iowa businesses
 within an industry in competition with the business being
 considered for assistance.  The enterprise zone commission
 shall make a good faith effort to determine the probability
 that the proposed financial assistance will displace employees
 of the existing businesses.  In determining the impact on
 businesses in competition with the business being considered
 for assistance, jobs created or retained as a result of other
 jobs being displaced elsewhere in the state shall not be
 considered direct jobs created or retained.
    e.  An affidavit that it has not, within the last five
 years, violated state or federal environmental and worker
 safety statutes, rules, and regulations or if such violation
 has occurred that there were mitigating circumstances or such
 violations did not seriously affect public health or safety or
 the environment.
    e.  A report describing all violations of environmental law
 or worker safety law within the last five years.  If, upon
 review of the application, the enterprise zone commission
 finds that a business has a record of violations of the law,
 statutes, rules, or regulations that tends to show a
 consistent pattern, the enterprise zone commission shall not
 make an award of financial assistance to the business unless
 the board finds either that the violations did not seriously
 affect public health, public safety, or the environment, or,
 if such violations did seriously affect public health, public
 safety, or the environment, that mitigating circumstances were
 present.
                           DIVISION IV
                      CONFORMING AMENDMENTS
    Sec. 18.  Section 15.103, subsection 6, Code 2009, is
 amended to read as follows:
    6.  As part of the organizational structure of the
 department, the board shall establish a due diligence
 committee and a loan and credit guarantee committee composed
 of members of the board.  The committees shall serve in an
 advisory capacity to the board and shall carry out any duties
 assigned by the board in relation to programs administered by
 the department.  The loan and credit guarantee committee shall
 advise the board on the winding up of loan guarantees made
 under the loan and credit guarantee program established
 pursuant to section 15E.224, Code 2009, and on the proper
 amount of the allocation described in section 15G.111,
 subsection 4, paragraph "g".
    Sec. 19.  Section 15.104, Code 2009, is amended by adding
 the following new subsection:
    NEW SUBSECTION.  1.  Perform duties related to the
 administration of the grow Iowa values fund and grow Iowa
 values financial assistance program as described in chapter
 15G.
    Sec. 20.  Section 15.104, subsection 9, paragraphs a and b,
 Code 2009, are amended to read as follows:
    a.  FINANCIAL ASSISTANCE PROGRAMS.  Data on all assistance
 provided to business finance projects under the community
 economic betterment program established in section 15.317,
 eligible businesses under the high quality job creation jobs
 program described in section 15.326, and eligible facilities
 under the value=added agricultural products and processes
 financial assistance program established in section 15E.111.
    b.  PROJECTS FUNDED THROUGH THE GROW IOWA VALUES FUND
 FINANCIAL ASSISTANCE PROGRAM ESTABLISHED IN SECTION 15G.112.
 For each job creation or retention business finance project
 receiving moneys from the grow Iowa values fund created in
 section 15G.108, the following information:
    (1)  The net number of new jobs created as of June 30 of
 the prior year.  For the purposes of this subparagraph, "net
 number of new jobs" is the number of new or retained jobs as
 identified in the contract.
    (2)  The number of jobs created, as of June 30 of the prior
 year, that are at or above the qualifying wage threshold for
 the project.  For the purposes of this subparagraph,
 "qualifying wage threshold" means the wage that meets the
 required percentage of the average county or average regional
 wage for the programs or funding sources involved with the
 project has the same meaning as defined in section 15G.108A.
    (3)  The number of retained jobs, as of June 30 of the
 prior year.  For the purposes of this subparagraph, "retained
 jobs" means the number of retained jobs as identified in the
 contract.
    (4)  The total amount expended by a business, as of June 30
 of the prior year, toward the total project cost as identified
 in the contract.
    (5)  The project's location.
    (6)  The amount, if any, of private and local matching
 funds, as of June 30 of the prior year.
    (7)  The amount spent on research and development
 activities, as of June 30 of the prior year.
    Sec. 21.  Section 15.104, subsection 9, paragraphs i and j,
 Code 2009, are amended to read as follows:
    i.  GROW IOWA VALUES FUND EXPENDITURES.  Detailed financial
 data that delineate expenditures made under each component of
 the grow Iowa values fund created in section 15G.108 15G.111.
    j.  RENEWABLE FUEL PROGRAMS.  A detailed accounting of
 expenditures in support of renewable fuel infrastructure
 programs, as provided in sections 15G.203 and 15G.204.  The
 renewable fuel infrastructure board established in section
 15G.202 shall approve that portion of the department's annual
 report regarding projects supported from the grow Iowa values
 fund created in section 15G.108 15G.111.  This paragraph is
 repealed on July 1, 2012.
    Sec. 22.  Section 15.116, Code 2009, is amended to read as
 follows:
    15.116  TECHNOLOGY COMMERCIALIZATION COMMITTEE.
    To evaluate and approve funding for the projects and
 programs under referred to in section 15G.111, subsection 2
 10, the economic development board shall create a technology
 commercialization committee composed of members with expertise
 in the areas of biosciences, engineering, manufacturing,
 pharmaceuticals, materials, information solutions, software,
 and energy.  At least one member of the technology
 commercialization committee shall be a member of the economic
 development board.  An organization designated by the
 department, composed of members from both the public and
 private sectors and composed of subunits or subcommittees in
 the areas of already identified bioscience platforms,
 education and workforce development, commercialization,
 communication, policy and governance, and finance, shall
 provide funding recommendations to the technology
 commercialization committee.
    Sec. 23.  Section 15.203, Code 2009, is amended by adding
 the following new subsection:
    NEW SUBSECTION.  5.  The agricultural products advisory
 council shall review applications for financial assistance
 under the value=added agriculture component of the grow Iowa
 values financial assistance program established in section
 15G.112.
    Sec. 24.  Section 15.313, subsection 1, Code 2009, is
 amended to read as follows:
    1.  a.  An Iowa strategic investment fund is created as a
 revolving fund consisting of any money appropriated by the
 general assembly for that purpose and any other moneys
 available to and obtained or accepted by the department from
 the federal government or private sources for placement in the
 fund.  The fund shall also include all of the following:
    (1)  All unencumbered and unobligated funds from the
 special community economic betterment program fund created
 under 1990 Iowa Acts, chapter 1262, section 1, subsection 18,
 remaining on June 30, 1992, all repayments of loans or other
 awards made under the community economic betterment account or
 under the community economic betterment program during any
 fiscal year beginning on or after July 1, 1985, and recaptures
 of awards.
    (2)  All unencumbered and unobligated funds from the
 targeted small business financial assistance program, the
 financing rural economic development or successor loan
 program, and the value=added agricultural products and
 processes financial assistance fund remaining on June 30,
 1992, and all repayments of loans or other awards or
 recaptures of awards made under these programs.
    b.  Notwithstanding section 8.33, moneys in the strategic
 investment fund at the end of each fiscal year shall not
 revert to any other fund but shall remain in the strategic
 investment fund for expenditure for subsequent fiscal years.
    Sec. 25.  Section 15A.7, subsection 3, Code 2009, is
 amended to read as follows:
    3.  That the employer shall agree to pay wages for the jobs
 for which the credit is taken of at least the average county
 wage or average the regional wage, as calculated by the
 department pursuant to section 15G.112, subsection 3,
 whichever is lower, as compiled annually by the department of
 economic development for the community economic betterment
 program.  For the purposes of this section, the average
 regional wage shall be compiled based upon the service
 delivery areas in section 84B.2.  Eligibility for the
 supplemental credit shall be based on a one=time determination
 of starting wages by the community college.
    Sec. 26.  Section 15E.120, subsection 5, Code 2009, is
 amended to read as follows:
    5.  Loan repayments received by the Iowa department of
 economic development shall be deposited into a special account
 to be used at its discretion as matching funds to attract
 financial assistance from and to participate in programs with
 national rural development and finance corporations.  Funds in
 this special account shall not revert to the state general
 fund at the end of any fiscal year.  If the programs for which
 the funds in the special account are to be used are terminated
 or expire, the funds in the special account and funds that
 would be repaid, if any, to the special account shall be
 transferred or repaid to the community economic betterment
 account of the strategic investment fund established in
 section 15.313.
    Sec. 27.  Section 15E.231, subsection 1, unnumbered
 paragraph 1, Code 2009, is amended to read as follows:
    In order for an economic development region to receive
 moneys from under the grow Iowa values fund created financial
 assistance program established in section 15G.108 15G.112, an
 economic development region's regional development plan must
 be approved by the department.  An economic development region
 shall consist of not less than three counties, unless two
 contiguous counties have a combined population of at least
 three hundred thousand based on the most recent federal
 decennial census.  An economic development region shall
 establish a focused economic development effort that shall
 include a regional development plan relating to one or more of
 the following areas:
    Sec. 28.  Section 15E.351, subsection 1, Code 2009, is
 amended to read as follows:
    1.  The department shall establish and administer a
 business accelerator program to provide financial assistance
 for the establishment and operation of a business accelerator
 for technology=based, value=added agricultural, information
 solutions, alternative and renewable energy including the
 alternative and renewable energy sectors listed in section
 476.42, subsection 1, paragraph "a", or advanced manufacturing
 start=up businesses or for a satellite of an existing business
 accelerator.  The program shall be designed to foster the
 accelerated growth of new and existing businesses through the
 provision of technical assistance.  The department shall use
 moneys appropriated to the department from the grow Iowa
 values fund pursuant to section 15G.111, subsection 1, subject
 to the approval of the economic development board, to may
 provide financial assistance under this section from moneys
 allocated for regional financial assistance pursuant to
 section 15G.111, subsection 9.
    Sec. 29.  Section 159A.6B, unnumbered paragraph 2, Code
 2009, is amended to read as follows:
    The office may execute contracts in order to provide
 technical support and outreach services for purposes of
 assisting and educating interested persons as provided in this
 section.  The office may also contract with a consultant to
 provide part or all of these services.  The office may require
 that a person receiving assistance pursuant to this section
 contribute up to fifty percent of the amount required to
 support the costs of contracting with the consultant to
 provide assistance to the person.  The office shall assist the
 person in completing any technical information required in
 order to receive assistance by the department of economic
 development pursuant to the value=added agricultural products
 and processes agriculture component of the grow Iowa values
 financial assistance program created established pursuant to
 section 15E.111 15G.112.  The office shall cooperate with the
 department of economic development, the department of natural
 resources, and regents institutions or other universities and
 colleges as provided in section 15E.111, in order to carry out
 this section.
    Sec. 30.  Section 266.19, Code 2009, is amended to read as
 follows:
    266.19  RENEWABLE FUEL == ASSISTANCE.
    The university shall cooperate in assisting renewable fuel
 production facilities supporting livestock operations managed
 by persons receiving assistance pursuant to the value=added
 agricultural products and processes agriculture component of
 the grow Iowa values financial assistance program established
 in section 15E.111 15G.112.
    Sec. 31.  Section 455B.104, subsection 2, Code 2009, is
 amended to read as follows:
    2.  The department shall assist persons applying for
 assistance to establish and operate renewable fuel production
 facilities pursuant to the value=added agricultural products
 and processes agriculture component of the grow Iowa values
 financial assistance program established in section 15E.111
 15G.112.
    Sec. 32.  Section 455B.433, Code 2009, is amended to read
 as follows:
    455B.433  PHYSICAL INFRASTRUCTURE ASSISTANCE == FUNDING ==
 LIABILITY.
    1.  The department of natural resources shall work in
 conjunction with the Iowa department of economic development
 to identify environmentally contaminated sites which qualify
 for the physical infrastructure assistance component of the
 grow Iowa values financial assistance program under
 established in section 15E.175 15G.112.  The department shall
 provide an assessment of the site and shall provide any
 emergency response activities which the department deems
 necessary.  The department may take any further action,
 including remediation of the site, that the department deems
 to be appropriate and which promotes the purposes of the
 physical infrastructure assistance program component.
    2.  The department shall be reimbursed from the physical
 infrastructure assistance grow Iowa values fund under created
 in section 15E.175 15G.111 for any costs incurred pursuant to
 this section.
    3.  A person shall not have standing pursuant to section
 455B.111 to commence a citizen suit which is based upon
 property that is part of the physical infrastructure
 assistance component of the grow Iowa values financial
 assistance program pursuant to established in section 15E.175
 15G.112.
    Sec. 33.  CONDITIONAL ENACTMENTS.
    1.  If 2009 Iowa Acts, Senate File 142, is enacted, the
 section of that Act amending section 15G.111 is repealed and
 section 15G.111, subsection 10, as enacted in this Act, is
 amended to read as follows:
    10.  COMMERCIALIZATION SERVICES.  Of the moneys
 appropriated to the department pursuant to subsection 3, the
 department shall allocate three million dollars for the
 purpose of providing the commercialization services described
 in section 15.411, subsections 2 and 3 deposit in the
 innovation and commercialization development fund created in
 section 15.412.
    2.  If 2009 Iowa Acts, Senate File 142, is enacted, section
 15.116, as amended in this Act, is amended to read as follows:
    15.116  TECHNOLOGY COMMERCIALIZATION COMMITTEE.
    To evaluate and approve make recommendations to the board
 on appropriate funding for the projects and programs referred
 to in section 15G.111, subsection 10 applying for financial
 assistance from the innovation and commercialization
 development fund created in section 15.412, the economic
 development board shall create a technology commercialization
 committee composed of members with expertise in the areas of
 biosciences, engineering, manufacturing, pharmaceuticals,
 materials, information solutions, software, and energy.  At
 least one member of the technology commercialization committee
 shall be a member of the economic development board.  An
 organization designated by the department, composed of members
 from both the public and private sectors and composed of
 subunits or subcommittees in the areas of already identified
 bioscience platforms, education and workforce development,
 commercialization, communication, policy and governance, and
 finance, shall provide funding recommendations to the
 technology commercialization committee.
    3.  If 2009 Iowa Acts, Senate File 142, is enacted, section
 15G.115, subsection 2, as enacted in this Act, is amended by
 adding the following new paragraph:
    NEW PARAGRAPH.  c.  Each application for financial
 assistance from funds allocated by the department for deposit
 in the innovation and commercialization development fund
 pursuant to section 15G.111, subsection 10, shall be reviewed
 by the technology commercialization committee established in
 section 15.116, which shall make a recommendation on each
 application to the board.


                                                             
                               JOHN P. KIBBIE
                               President of the Senate


                                                             
                               PATRICK J. MURPHY
                               Speaker of the House

    I hereby certify that this bill originated in the Senate and
 is known as Senate File 344, Eighty=third General Assembly.


                                                             
                               MICHAEL E. MARSHALL
                               Secretary of the Senate
 Approved                , 2009


                                
 CHESTER J. CULVER
 Governor

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