Senate File 456
SENATE FILE
BY COMMITTEE ON WAYS AND MEANS
(SUCCESSOR TO SSB 1199)
Passed Senate, Date Passed House, Date
Vote: Ayes Nays Vote: Ayes Nays
Approved
A BILL FOR
1 An Act relating to economic development by creating a position of
2 technology transfer advisor, creating a loan and credit
3 guarantee program and fund, creating an economic development
4 marketing board, providing for a business start=up information
5 internet web site, creating a grow Iowa fund, making
6 appropriations and related tax changes, making changes to
7 urban renewal law and related taxes, and including effective
8 date and retroactive applicability date provisions.
9 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
10 TLSB 3447SV 80
11 tm/sh/8
PAG LIN
1 1 DIVISION I
1 2 TECHNOLOGY TRANSFER AGENT
1 3 Section 1. NEW SECTION. 7.23 TECHNOLOGY TRANSFER
1 4 ADVISOR.
1 5 Two technology transfer advisors shall be appointed by the
1 6 governor, serve at the pleasure of the governor, and be
1 7 located at offices at the university of Iowa and Iowa state
1 8 university of science and technology. A technology transfer
1 9 advisor is not a state agency and is not subject to chapter
1 10 17A. A technology transfer advisor shall do all of the
1 11 following:
1 12 1. Facilitate the transfer of technology developed at the
1 13 university of Iowa, the university of northern Iowa, Iowa
1 14 state university of science and technology, community
1 15 colleges, and private colleges and universities.
1 16 2. Coordinate the technology transfer activities at each
1 17 of the public and private universities to encourage the
1 18 implementation of best practices in technology transfer,
1 19 establish measures of performance, and design programs of
1 20 continuous quality improvement for each technology transfer
1 21 office.
1 22 3. Establish technology transfer goals for the state.
1 23 4. Provide technical assistance to Iowa=based
1 24 entrepreneurs associated with or unrelated to the universities
1 25 under the control of the state board of regents regarding
1 26 technology transfer=related issues. The technical assistance
1 27 shall include assistance in the areas of patents and
1 28 licensing, business development and management, finance,
1 29 production, sales, and marketing.
1 30 5. Receive the technology transfer=related report
1 31 submitted by the state board of regents pursuant to section
1 32 262.9, subsection 31.
1 33 6. To ensure economic growth, serve as a coordinator
1 34 between Iowa=based businesses and businesses intending to
1 35 locate in Iowa.
2 1 Sec. 2. Section 15.108, Code 2003, is amended by adding
2 2 the following new subsection:
2 3 NEW SUBSECTION. 12. TECHNOLOGY TRANSFER ADVISORS. The
2 4 department shall cooperate with and provide staffing support
2 5 to the technology transfer advisors appointed pursuant to
2 6 section 7.23.
2 7 Sec. 3. Section 262.9, Code 2003, is amended by adding the
2 8 following new subsections:
2 9 NEW SUBSECTION. 29. Actively encourage and promote the
2 10 transfer of technology and research at universities under the
2 11 control of the board to commercial application, including the
2 12 start=up of business entities.
2 13 NEW SUBSECTION. 30. Give preference and technical support
2 14 to those faculty members and staff members desiring to obtain
2 15 licenses for intellectual property rights created in whole or
2 16 in part by the faculty member or staff member. However, such
2 17 preference shall not be construed to be a right accruing to
2 18 that faculty member or staff member.
2 19 NEW SUBSECTION. 31. By January 15 of each year, submit a
2 20 report to the governor, through the technology transfer
2 21 advisors, and the general assembly containing information from
2 22 the previous calendar year regarding all of the following:
2 23 a. Patents secured or applied for by each university under
2 24 the control of the board delineated by university and by
2 25 faculty member and staff member responsible for the research
2 26 or activity that resulted in the patent. In the initial
2 27 report filed by January 15, 2004, the board shall include an
2 28 inventory of patent portfolios with details concerning which
2 29 patents are creating financial benefit and the amount of
2 30 financial benefit and which patents are not creating financial
2 31 benefit and the amount invested in those patents.
2 32 b. Research grants secured by each university under the
2 33 control of the board from both public and private sources
2 34 delineated by university and by faculty member and staff
2 35 member. The board shall also include the same information for
3 1 grant applications that are denied.
3 2 c. The number of faculty members and staff members at each
3 3 university under the control of the board involved in a start=
3 4 up company.
3 5 d. The number of grant applications for research received
3 6 by each university under the control of the board for start=up
3 7 companies, the number of applications approved, and the number
3 8 of applications denied.
3 9 e. The number of agreements entered into by faculty
3 10 members and staff members at each university under the control
3 11 of the board with foundations affiliated with the universities
3 12 relating to business start=ups.
3 13 f. An accounting of the financial gain received by each
3 14 university under the control of the board relating to patents
3 15 sold, royalties received, licensing fees, and any other
3 16 remuneration received by the university related to technology
3 17 transfer.
3 18 g. The number of professional employees at each university
3 19 under the control of the board who assist in the transfer of
3 20 technology and research to commercial application.
3 21 Sec. 4. This division of this Act is repealed July 1,
3 22 2008.
3 23 DIVISION II
3 24 IOWA ECONOMIC DEVELOPMENT
3 25 LOAN AND CREDIT GUARANTEE FUND
3 26 Sec. 5. NEW SECTION. 15E.221 SHORT TITLE.
3 27 This division shall be known and may be cited as the "Iowa
3 28 Economic Development Loan and Credit Guarantee Fund Act".
3 29 Sec. 6. NEW SECTION. 15E.222 LEGISLATIVE FINDING ==
3 30 PURPOSES.
3 31 1. The general assembly finds all of the following:
3 32 a. That small and medium=sized businesses, in general, and
3 33 certain targeted industry businesses and other qualified
3 34 businesses, in particular, may not qualify for conventional
3 35 financing.
4 1 b. That the limited availability of credit for export
4 2 transactions limits the ability of small and medium=sized
4 3 businesses in this state to compete in international markets.
4 4 c. That, to enhance competitiveness and foster economic
4 5 development, this state must focus on growth in certain
4 6 specific targeted industry businesses and other qualified
4 7 businesses, especially during a time of war.
4 8 d. That the challenge for the public economic sector is to
4 9 create an atmosphere conducive to economic growth, in
4 10 conjunction with financial institutions in the private sector,
4 11 which fill the gaps in credit availability and export finance,
4 12 and that allow the private sector to identify the lending
4 13 opportunities and foster decision making at the local level.
4 14 2. The general assembly declares the purposes of this
4 15 division to be all of the following:
4 16 a. To create incentives and assistance to increase the
4 17 flow of private capital to targeted industry businesses and
4 18 other qualified businesses.
4 19 b. To promote industrial modernization and technology
4 20 adoption.
4 21 c. To encourage the retention and creation of jobs.
4 22 d. To encourage the export of goods and services sold by
4 23 Iowa businesses in national and international markets.
4 24 Sec. 7. NEW SECTION. 15E.223 DEFINITIONS.
4 25 As used in this division, unless the context otherwise
4 26 requires:
4 27 1. "Financial institution" means an institution listed in
4 28 section 422.61, subsection 1, or such other financial
4 29 institution as defined by the department for purposes of this
4 30 division.
4 31 2. "Program" means the loan and credit guarantee program
4 32 established in this division.
4 33 3. "Qualified business" means an existing or proposed
4 34 business entity with an annual average number of employees not
4 35 exceeding two hundred employees. "Qualified business" does
5 1 not include businesses engaged primarily in retail sales, real
5 2 estate, or the provision of health care or other professional
5 3 services. "Qualified business" includes professional services
5 4 businesses that provide services to targeted industry
5 5 businesses or other entities within and outside of this state.
5 6 4. "Targeted industry business" means an existing or
5 7 proposed business entity, including an emerging small business
5 8 or qualified business which is operated for profit and which
5 9 has a primary business purpose of doing business in at least
5 10 one of the targeted industries designated by the department
5 11 which include life sciences, software and information
5 12 technology, advanced manufacturing, value=added agriculture,
5 13 and any other industry designated as a targeted industry by
5 14 the loan and credit guarantee advisory board.
5 15 Sec. 8. NEW SECTION. 15E.224 LOAN AND CREDIT GUARANTEE
5 16 PROGRAM.
5 17 1. The department shall, with the advice of the loan and
5 18 credit guarantee advisory board, establish and administer a
5 19 loan and credit guarantee program. The department, pursuant
5 20 to agreements with financial institutions, shall provide loan
5 21 and credit guarantees, or other forms of credit guarantees for
5 22 qualified businesses and targeted industry businesses for
5 23 eligible project costs. A loan or credit guarantee provided
5 24 under the program may stand alone or may be used in
5 25 conjunction with or to enhance other loans or credit
5 26 guarantees, offered by private, state, or federal entities.
5 27 However, the department shall not in any manner directly or
5 28 indirectly pledge the credit of the state. Eligible project
5 29 costs include expenditures for productive equipment and
5 30 machinery, working capital for operations and export
5 31 transactions, research and development, marketing, and such
5 32 other costs as the department may so designate.
5 33 2. A loan or credit guarantee or other form of credit
5 34 guarantee provided under the program to a participating
5 35 financial institution for a single qualified business or
6 1 targeted industry business shall not exceed one million
6 2 dollars in value. Loan or credit guarantees or other forms of
6 3 credit guarantees provided under the program to more than one
6 4 participating financial institution for a single qualified
6 5 business or targeted industry business shall not exceed ten
6 6 million dollars in value.
6 7 3. In administering the program, the department shall
6 8 consult and cooperate with financial institutions in this
6 9 state and with the loan and credit guarantee advisory board.
6 10 Administrative procedures and application procedures, as
6 11 practicable, shall be responsive to the needs of qualified
6 12 businesses, targeted industry businesses, and financial
6 13 institutions, and shall be consistent with prudent investment
6 14 and lending practices and criteria.
6 15 4. Each participating financial institution shall identify
6 16 and underwrite potential lending opportunities with qualified
6 17 businesses and targeted industry businesses. Upon a
6 18 determination by a participating financial institution that a
6 19 qualified business or targeted industry business meets the
6 20 underwriting standards of the financial institution, subject
6 21 to the approval of a loan or credit guarantee, the financial
6 22 institution shall submit the underwriting information and a
6 23 loan or credit guarantee application to the department.
6 24 5. The department, with the advice of the loan and credit
6 25 guarantee advisory board, shall adopt a loan or credit
6 26 guarantee application procedure for a financial institution on
6 27 behalf of a qualified business or targeted industry business.
6 28 6. Upon approval of a loan or credit guarantee, the
6 29 department shall enter into a loan or credit guarantee
6 30 agreement with the participating financial institution. The
6 31 agreement shall specify all of the following:
6 32 a. The fee to be charged to the financial institution.
6 33 b. The evidence of debt assurance of, and security for,
6 34 the loan or credit guarantee.
6 35 c. A loan or credit guarantee that does not exceed fifteen
7 1 years.
7 2 d. Any other terms and conditions considered necessary or
7 3 desirable by the department.
7 4 7. The department, with the advice of the loan and credit
7 5 guarantee advisory board, may adopt loan and credit guarantee
7 6 application procedures that allow a qualified business or
7 7 targeted industry business to apply directly to the department
7 8 for a preliminary guarantee commitment. A preliminary
7 9 guarantee commitment may be issued by the department subject
7 10 to the qualified business or targeted industry business
7 11 securing a commitment for financing from a financial
7 12 institution. The application procedures shall specify the
7 13 process by which a financial institution may obtain a final
7 14 loan and credit guarantee.
7 15 Sec. 9. NEW SECTION. 15E.225 TERMS == FEES.
7 16 1. When entering into a loan or credit guarantee
7 17 agreement, the department, with the advice of the loan and
7 18 credit guarantee advisory board, shall establish fees and
7 19 other terms for participation in the program by qualified
7 20 businesses and targeted industry businesses.
7 21 2. The department, with due regard for the possibility of
7 22 losses and administrative costs and with the advice of the
7 23 loan and credit guarantee advisory board, shall set fees and
7 24 other terms at levels sufficient to assure that the program is
7 25 self=financing.
7 26 3. For a preliminary guarantee commitment, the department
7 27 may charge a qualified business or targeted industry business
7 28 a preliminary guarantee commitment fee. The application fee
7 29 shall be in addition to any other fees charged by the
7 30 department under this section and shall not exceed one
7 31 thousand dollars for an application.
7 32 Sec. 10. NEW SECTION. 15E.226 LOAN AND CREDIT GUARANTEE
7 33 ADVISORY BOARD.
7 34 The department, in consultation with the superintendent of
7 35 banking, shall establish a loan and credit guarantee advisory
8 1 board. The advisory board shall provide the department with
8 2 technical advice regarding the administration of the program,
8 3 including the adoption of administrative rules pursuant to
8 4 chapter 17A. The advisory board shall review and provide
8 5 recommendations regarding all applications under the program.
8 6 Sec. 11. NEW SECTION. 15E.227 LOAN AND CREDIT GUARANTEE
8 7 FUND.
8 8 1. A loan and credit guarantee fund is created and
8 9 established as a separate and distinct fund in the state
8 10 treasury. Moneys in the fund shall only be used for purposes
8 11 provided in this section. The moneys in the fund are
8 12 appropriated to the department to be used for all of the
8 13 following purposes:
8 14 a. Payment of claims pursuant to loan and credit guarantee
8 15 agreements entered into under this division.
8 16 b. Payment of administrative costs of the department for
8 17 actual and necessary administrative expenses incurred by the
8 18 department in administering the program.
8 19 c. Purchase or buyout of superior or prior liens,
8 20 mortgages, or security interests.
8 21 2. Moneys in the loan and credit guarantee fund shall
8 22 consist of all of the following:
8 23 a. Moneys appropriated by the general assembly for that
8 24 purpose and any other moneys available to and obtained or
8 25 accepted by the department for placement in the fund.
8 26 b. Proceeds from collateral assigned to the department,
8 27 fees for guarantees, gifts, and moneys from any grant made to
8 28 the fund by any federal agency.
8 29 c. Moneys appropriated from the grow Iowa fund created in
8 30 section 15.115.
8 31 3. Moneys in the fund are not subject to section 8.33.
8 32 Notwithstanding section 12C.7, interest or earnings on the
8 33 moneys in the fund shall be credited to the fund.
8 34 4. The department shall only pledge moneys in the loan and
8 35 credit guarantee fund and not any other moneys of the
9 1 department. The department may pledge an amount not to exceed
9 2 a total of one hundred million dollars of moneys in the fund
9 3 to assure the repayment of loan and credit guarantees or other
9 4 extensions of credit made to or on behalf of qualified
9 5 businesses or targeted industry businesses for eligible
9 6 project costs. The department shall not pledge the credit or
9 7 taxing power of this state or any political subdivision of
9 8 this state or make debts payable out of any moneys except for
9 9 those in the loan and credit guarantee fund.
9 10 Sec. 12. This division of this Act is repealed July 1,
9 11 2008.
9 12 DIVISION III
9 13 MARKETING IOWA
9 14 Sec. 13. Section 15.108, subsection 9, Code 2003, is
9 15 amended by adding the following new paragraph:
9 16 NEW PARAGRAPH. g. Administer the marketing strategy
9 17 selected pursuant to section 15.121.
9 18 Sec. 14. NEW SECTION. 15.121 ECONOMIC DEVELOPMENT
9 19 MARKETING BOARD.
9 20 1. a. An economic development marketing board is
9 21 established consisting of seven members and is located for
9 22 administrative purposes within the department. The director
9 23 of the department shall provide office space, staff
9 24 assistance, and necessary supplies and equipment for the
9 25 board. In performing its functions, the board is performing a
9 26 public function on behalf of the state and is a public
9 27 instrumentality of the state.
9 28 b. The membership of the board shall be as follows:
9 29 (1) Three members with significant demonstrated experience
9 30 in marketing or advertising appointed by the governor.
9 31 (2) Four members with significant demonstrated experience
9 32 in marketing or advertising appointed by the following:
9 33 (a) The president of the senate.
9 34 (b) The minority leader of the senate.
9 35 (c) The speaker of the house of representatives.
10 1 (d) The minority leader of the house of representatives.
10 2 c. The appointments made by the governor shall comply with
10 3 sections 69.16 and 69.16A and shall be subject to confirmation
10 4 by the senate.
10 5 d. The chairperson and vice chairperson of the board shall
10 6 be elected by and from the board members listed in paragraph
10 7 "b". In case of the absence or disability of the chairperson
10 8 and vice chairperson, the members of the board shall elect a
10 9 temporary chairperson by a majority vote of those members who
10 10 are present and voting.
10 11 e. The members shall be appointed to three=year staggered
10 12 terms and the terms shall commence and end as provided by
10 13 section 69.19. If a vacancy occurs, a successor shall be
10 14 appointed to serve the unexpired term. A successor shall be
10 15 appointed in the same manner and subject to the same
10 16 qualifications as the original appointment to serve the
10 17 unexpired term.
10 18 f. A majority of the board constitutes a quorum.
10 19 2. The board shall do all of the following:
10 20 a. Organize.
10 21 b. Establish rules pursuant to chapter 17A necessary to
10 22 establish procedures for choosing a marketing strategy for the
10 23 department to administer.
10 24 c. Administer the approval process provided in subsection
10 25 3.
10 26 3. The board shall accept proposals for marketing
10 27 strategies for purposes of selecting a strategy for the
10 28 department to administer. The marketing strategies shall be
10 29 designed to market Iowa as a lifestyle, increase the
10 30 population of the state, increase the wealth of Iowans, and
10 31 expand and stimulate the state economy.
10 32 4. The department shall implement and administer the
10 33 marketing strategy selected by the economic development
10 34 marketing board as provided in section 15.108. The department
10 35 shall provide the board with assistance in implementing
11 1 administrative functions of the board and provide technical
11 2 assistance to the board.
11 3 Sec. 15. This division of this Act is repealed July 1,
11 4 2008.
11 5 DIVISION IV
11 6 INTERNET ECONOMIC DEVELOPMENT ASSISTANCE
11 7 Sec. 16. NEW SECTION. 15E.118 BUSINESS START=UP
11 8 INFORMATION == INTERNET WEB SITE.
11 9 The department shall provide information through an
11 10 internet web site and a toll=free telephone service to assist
11 11 persons interested in establishing a commercial facility or
11 12 engaging in a commercial activity. The information shall
11 13 include all of the following:
11 14 1. Assistance, information, and guidance for start=up
11 15 businesses.
11 16 2. Information gathered by the department pursuant to
11 17 section 15E.17, subsection 2.
11 18 3. Personal and corporate income tax information.
11 19 4. Information regarding financial assistance and
11 20 incentives available to businesses.
11 21 5. Workforce availability in the state presented in a
11 22 regional format.
11 23 Sec. 17. INTERNET WEB SITE DEVELOPMENT. In developing the
11 24 internet web site required in section 15E.118, the department
11 25 of economic development shall examine similar efforts in other
11 26 states and incorporate the best practices.
11 27 DIVISION V
11 28 GROW IOWA FUND
11 29 Sec. 18. NEW SECTION. 15.115 GROW IOWA FUND.
11 30 A grow Iowa fund is created in the state treasury under the
11 31 control of the department consisting of moneys appropriated to
11 32 the department. Moneys in the fund are not subject to section
11 33 8.33. Notwithstanding section 12C.7, interest or earnings on
11 34 moneys in the fund shall be credited to the fund. Moneys in
11 35 the fund are appropriated to the following for all of the
12 1 following purposes:
12 2 1. To the department for deposit in the loan and credit
12 3 guarantee fund created in section 15E.227, not more than an
12 4 aggregate total of one hundred million dollars.
12 5 2. To the department for purposes of administering the
12 6 marketing strategy selected by the economic development
12 7 marketing board pursuant to section 15.121, not more than an
12 8 aggregate total of forty=five million dollars.
12 9 3. To the governor's office for purposes of section 7.23,
12 10 not more than three hundred thousand dollars per year.
12 11 4. To the department for purposes of administering the
12 12 requirements of section 15E.118, not more than two hundred
12 13 thousand dollars per year for a period of two years.
12 14 DIVISION VI
12 15 URBAN RENEWAL
12 16 Sec. 19. Section 11.6, subsection 1, paragraph a,
12 17 unnumbered paragraph 1, Code 2003, is amended to read as
12 18 follows:
12 19 The financial condition and transactions of all cities and
12 20 city offices, counties, county hospitals organized under
12 21 chapters 347 and 347A, memorial hospitals organized under
12 22 chapter 37, entities organized under chapter 28E having gross
12 23 receipts in excess of one hundred thousand dollars in a fiscal
12 24 year, merged areas, area education agencies, and all school
12 25 offices in school districts, shall be examined at least once
12 26 each year, except that cities having a population of seven
12 27 hundred or more but less than two thousand shall be examined
12 28 at least once every four years, and cities having a population
12 29 of less than seven hundred may be examined as otherwise
12 30 provided in this section. However, cities having a population
12 31 of less than two thousand shall be examined for each fiscal
12 32 year ending on or after June 30, 2004, if, for the fiscal year
12 33 and pursuant to an urban renewal plan adopted by the city, the
12 34 city had taxable valuation described in section 403.19,
12 35 subsection 2, of one million dollars or more.
13 1 PARAGRAPH DIVIDED. The examination shall cover the fiscal
13 2 year next preceding the year in which the audit is conducted.
13 3 The examination of school offices shall include an audit of
13 4 all school funds, the certified annual financial report, and
13 5 the certified enrollment as provided in section 257.6.
13 6 Differences in certified enrollment shall be reported to the
13 7 department of management.
13 8 Sec. 20. Section 403.5, subsection 1, Code 2003, is
13 9 amended by adding the following new unnumbered paragraph:
13 10 NEW UNNUMBERED PARAGRAPH. In a municipality with a
13 11 population of twenty thousand or less, the actual value of
13 12 taxable property described in section 403.19, subsection 2,
13 13 located in all urban renewal areas in any year in which one or
13 14 more urban renewal plans are in force shall not exceed an
13 15 amount equal to twenty=five percent of the total actual value
13 16 of taxable property in the municipality. In a municipality
13 17 with a population of over twenty thousand, the actual value of
13 18 taxable property described in section 403.19, subsection 2,
13 19 located in all urban renewal areas in any year in which one or
13 20 more urban renewal plans are in force shall not exceed an
13 21 amount equal to fifteen percent of the total actual value of
13 22 taxable property in the municipality. For purposes of this
13 23 paragraph, an urban renewal area of a city includes urban
13 24 renewal areas established by the city in the area of operation
13 25 of the city and an urban renewal area of a county includes
13 26 urban renewal areas established by a county in the area of
13 27 operation of the county. For purposes of this paragraph, the
13 28 total actual value of taxable property in a city includes only
13 29 the actual value of taxable property within the corporate
13 30 limits of the city regardless of where the urban renewal area
13 31 established by the city is located. On or before January 1 of
13 32 each year, the county auditor shall make the adjustments in
13 33 valuation necessary to achieve the limitations in this
13 34 paragraph for the fiscal year beginning July 1 following the
13 35 date of adjustment. However, if because of the limitation in
14 1 this paragraph, the funds to be received by a municipality
14 2 will be insufficient to pay the amount certified to the county
14 3 auditor in section 403.19, subsection 5, for the following
14 4 fiscal year, the auditor shall adjust the reduction to the
14 5 amount of incremental valuation only to the extent needed to
14 6 pay such amount certified. This exception to the valuation
14 7 limitation in this paragraph does not apply to payment of
14 8 loans, advances, bonds, or other indebtedness refunded or
14 9 originally incurred on or after July 1, 2004.
14 10 Sec. 21. Section 403.5, subsection 2, Code 2003, is
14 11 amended to read as follows:
14 12 2. The municipality may itself prepare or cause to be
14 13 prepared an urban renewal plan; or any person or agency,
14 14 public or private, may submit such a plan to a municipality.
14 15 Prior to its approval of an urban renewal plan, the local
14 16 governing body shall submit such plan to the planning
14 17 commission of the municipality, if any, for review and
14 18 recommendations as to its conformity with the general plan for
14 19 the development of the municipality as a whole. The planning
14 20 commission shall submit its written recommendations with
14 21 respect to the proposed urban renewal plan to the local
14 22 governing body within thirty days after receipt of the plan
14 23 for review. Upon receipt of the recommendations of the
14 24 planning commission or, if no recommendations are received
14 25 within the thirty days, then, without such recommendations,
14 26 the local governing body may proceed with the hearing on the
14 27 proposed urban renewal plan prescribed by subsection 3.
14 28 Prior to its approval of an urban renewal plan which
14 29 provides for a division of revenue pursuant to section 403.19,
14 30 the municipality shall mail the proposed plan by regular mail
14 31 to the affected taxing entities. The municipality shall
14 32 include with the proposed plan notification of a consultation
14 33 to be held between the municipality and affected taxing
14 34 entities prior to the public hearing on the urban renewal
14 35 plan. Each affected taxing entity may appoint a
15 1 representative to attend the consultation. The consultation
15 2 may include a discussion of the estimated growth in valuation
15 3 of taxable property included in the proposed urban renewal
15 4 area, the fiscal impact of the division of revenue on the
15 5 affected taxing entities, the estimated impact on the
15 6 provision of services by each of the affected taxing entities
15 7 in the proposed urban renewal area, and the duration of any
15 8 bond issuance included in the plan. The designated
15 9 representative of the affected taxing entity may make written
15 10 recommendations for modification to the proposed division of
15 11 revenue urban renewal plan no later than seven days following
15 12 the date of the consultation. The representative of the
15 13 municipality shall, no later than seven days prior to the
15 14 public hearing on the urban renewal plan, submit a written
15 15 response to the affected taxing entity addressing the
15 16 recommendations for modification to the proposed division of
15 17 revenue urban renewal plan.
15 18 If the municipality is a city, the board of supervisors of
15 19 each affected taxing entity that is a county must, upon
15 20 conclusion of the consultation process, adopt a resolution
15 21 approving or rejecting the proposed urban renewal plan. Upon
15 22 receipt of the recommendations of the planning commission or,
15 23 if no recommendations are received within the thirty days,
15 24 then, without such recommendations, and upon receipt of county
15 25 board of supervisors resolutions approving the urban renewal
15 26 plan, the governing body of the city may proceed with the
15 27 hearing on the proposed urban renewal plan pursuant to
15 28 subsection 3. Without the receipt of such a resolution
15 29 approving the urban renewal plan from each county that is an
15 30 affected taxing entity, the governing body of the city shall
15 31 not proceed with the proposed urban renewal plan.
15 32 Sec. 22. Section 403.5, subsections 5, 6, and 7, Code
15 33 2003, are amended to read as follows:
15 34 5. An urban renewal plan may be modified amended at any
15 35 time: Provided, that if modified amended after the lease or
16 1 sale by the municipality of real property in the urban renewal
16 2 project area, such modification amendment may be conditioned
16 3 upon such approval of the owner, lessee, or successor in
16 4 interest as the municipality may deem advisable, and in any
16 5 event such modification amendment shall be subject to such
16 6 rights at law or in equity as a lessee or purchaser, or a
16 7 lessee's or purchaser's successor or successors in interest,
16 8 may be entitled to assert. The A project may be added to an
16 9 urban renewal plan only by an amendment to the plan.
16 10 Territory may be added to, or severed from, an urban renewal
16 11 area only by an amendment to the urban renewal plan. When
16 12 amending an urban renewal plan, the municipality shall comply
16 13 with the notification and consultation process provided in
16 14 this section, including the requirement that an affected
16 15 taxing entity that is a county approve the proposed amendment
16 16 if the municipality is a city, prior to the approval of any
16 17 amendment or modification to an adopted urban renewal plan if
16 18 such amendment or modification provides for refunding bonds or
16 19 refinancing resulting in an increase in debt service or
16 20 provides for the issuance of bonds or other indebtedness, to
16 21 be funded primarily in the manner provided in section 403.19,
16 22 or if such amendment proposes to add a project to an urban
16 23 renewal plan or proposes to add territory to an urban renewal
16 24 area or proposes to sever territory from an urban renewal
16 25 area.
16 26 6. Upon the approval by a municipality of an urban renewal
16 27 plan or of any modification thereof amendment to an urban
16 28 renewal plan, such plan or modification amendment shall be
16 29 deemed to be in full force and effect for the respective urban
16 30 renewal area, and the municipality may then cause such plan or
16 31 modification amendment to be carried out in accordance with
16 32 its terms.
16 33 7. Notwithstanding any other provisions of this chapter,
16 34 where the local governing body certifies that an area is in
16 35 need of redevelopment or rehabilitation as a result of a
17 1 flood, fire, hurricane, earthquake, storm, or other
17 2 catastrophe respecting which the governor of the state has
17 3 certified the need for disaster assistance under Pub. L. No.
17 4 875, Eighty=first Congress, 64 Stat. L. 1109; 42 U.S.C. }
17 5 1855=1855g or other federal law, the local governing body may
17 6 approve an urban renewal plan and an urban renewal project
17 7 with respect to such area without regard to the provisions of
17 8 subsection 4 and without regard to provisions of this section
17 9 requiring notification and consultation and approval by the
17 10 county if the municipality is a city, a general plan for the
17 11 municipality, and a public hearing on the urban renewal plan
17 12 or project.
17 13 Sec. 23. Section 403.5, Code 2003, is amended by adding
17 14 the following new subsection:
17 15 NEW SUBSECTION. 8. The designation of an urban renewal
17 16 area pursuant to this section shall be limited in duration to
17 17 twenty years counting from July 1 of the first fiscal year in
17 18 which the municipality receives moneys from a division of
17 19 revenue pursuant to section 403.19. However, the duration of
17 20 an urban renewal area established before July 1, 2003, shall
17 21 be limited to twenty years counting from July 1 of the first
17 22 fiscal year in which the municipality received moneys from a
17 23 division of revenue pursuant to section 403.19, or shall end
17 24 June 30 of the fiscal year in which the amount of loans,
17 25 advances, indebtedness, or bonds due and owing on the
17 26 effective date of this section of this Act is paid, whichever
17 27 is later. Indebtedness incurred after the effective date of
17 28 this section of this Act to refund bonds issued prior to the
17 29 effective date of this section of this Act shall not be
17 30 considered loans, advances, indebtedness, or bonds due and
17 31 owing on the effective date of this section of this Act. An
17 32 amendment to an urban renewal plan shall not result in an
17 33 extension of the durational limitation imposed in this
17 34 subsection.
17 35 Sec. 24. Section 403.6, subsection 6, paragraph b, Code
18 1 2003, is amended to read as follows:
18 2 b. Urban renewal plans adopted, or amended, pursuant to
18 3 the requirements of section 403.5;
18 4 Sec. 25. Section 403.6, subsection 12, Code 2003, is
18 5 amended to read as follows:
18 6 12. To approve and amend urban renewal plans, subject to
18 7 the requirements of section 403.5.
18 8 Sec. 26. Section 403.17, subsection 10, Code 2003, is
18 9 amended to read as follows:
18 10 10. "Economic development area" means an area of a
18 11 municipality designated by the local governing body as
18 12 appropriate for commercial and industrial enterprises, public
18 13 improvements related to housing and residential development,
18 14 or construction of housing and residential development for low
18 15 and moderate income families, including single or multifamily
18 16 housing. If an urban renewal plan for an urban renewal area
18 17 is based upon a finding that the area is an economic
18 18 development area and that no part contains slum or blighted
18 19 conditions, then the division of revenue provided in section
18 20 403.19 and stated in the plan shall be limited to twenty years
18 21 from the calendar year following the calendar year in which
18 22 the municipality first certifies to the county auditor the
18 23 amount of any loans, advances, indebtedness, or bonds which
18 24 qualify for payment from the division of revenue provided in
18 25 section 403.19. Such designated area shall not include
18 26 agricultural land, including land which is part of a century
18 27 farm, unless the owner of the agricultural land or century
18 28 farm agrees to include the agricultural land or century farm
18 29 in the urban renewal area. For the purposes of this
18 30 subsection, "century farm" means a farm in which at least
18 31 forty acres of such farm have been held in continuous
18 32 ownership by the same family for one hundred years or more.
18 33 Sec. 27. Section 403.17, Code 2003, is amended by adding
18 34 the following new subsection:
18 35 NEW SUBSECTION. 12A. "Indebtedness" includes, but is not
19 1 limited to, a written agreement to suspend, abate, exempt,
19 2 rebate, refund, or reimburse property taxes or to provide a
19 3 grant for property taxes paid.
19 4 Sec. 28. Section 403.17, subsection 23, Code 2003, is
19 5 amended to read as follows:
19 6 23. "Urban renewal area" means a slum area, blighted area,
19 7 economic development area, or combination of the areas, which
19 8 the local governing body designates as appropriate for an
19 9 urban renewal project and which meets the maximum valuation
19 10 limitation on the size of the area in section 403.5,
19 11 subsection 1.
19 12 Sec. 29. Section 403.17, subsection 25, Code 2003, is
19 13 amended by adding the following new unnumbered paragraph:
19 14 NEW UNNUMBERED PARAGRAPH. An urban renewal project shall
19 15 not include undertakings or activities relating to a business
19 16 which is or will be located in the area of operation of a
19 17 municipality if the business has closed or reduced its
19 18 operation in one area of the state and relocated substantially
19 19 the same operation into the area of operation of the
19 20 municipality unless the governing body of the county where the
19 21 business is currently located, if the business is located in
19 22 the unincorporated area, or the governing body of the city
19 23 where the business is currently located, if the business is
19 24 located within the corporate boundaries of a city, adopts a
19 25 resolution approving the relocation.
19 26 Sec. 30. Section 403.19, subsection 2, Code 2003, is
19 27 amended to read as follows:
19 28 2. That portion of the taxes each year in excess of such
19 29 amount shall be allocated to and when collected be paid into a
19 30 special fund of the municipality to pay the principal of and
19 31 interest on loans, moneys advanced to, or indebtedness,
19 32 whether funded, refunded, assumed, or otherwise, including
19 33 bonds issued under the authority of section 403.9, subsection
19 34 1, incurred by the municipality to finance or refinance, in
19 35 whole or in part, an urban renewal project within the area,
20 1 and to provide assistance for low and moderate income family
20 2 housing as provided in section 403.22, except that taxes for
20 3 the regular and voter=approved physical plant and equipment
20 4 levy of a school district imposed pursuant to section 298.2,
20 5 and taxes for the payment of bonds and interest of each taxing
20 6 district, and, beginning with fiscal years beginning on or
20 7 after July 1, 2007, the foundation property tax imposed
20 8 pursuant to section 257.3, subsection 1, must be collected
20 9 against all taxable property within the taxing district
20 10 without limitation by the provisions of this subsection.
20 11 However, all or a portion of the taxes for the physical plant
20 12 and equipment levy shall be paid by the school district to the
20 13 municipality if the auditor certifies to the school district
20 14 by July 1 the amount of such levy that is necessary to pay the
20 15 principal and interest on bonds issued by the municipality to
20 16 finance an urban renewal project, which bonds were issued
20 17 before July 1, 2001. Indebtedness incurred to refund bonds
20 18 issued prior to July 1, 2001, shall not be included in the
20 19 certification. Such school district shall pay over the amount
20 20 certified by November 1 and May 1 of the fiscal year following
20 21 certification to the school district subsection 7 applies.
20 22 Unless and until the total assessed valuation of the taxable
20 23 property in an urban renewal area exceeds the total assessed
20 24 value of the taxable property in such area as shown by the
20 25 last equalized assessment roll referred to in subsection 1,
20 26 all of the taxes levied and collected upon the taxable
20 27 property in the urban renewal area shall be paid into the
20 28 funds for the respective taxing districts as taxes by or for
20 29 the taxing districts in the same manner as all other property
20 30 taxes. When such loans, advances, indebtedness, and bonds, if
20 31 any, and interest thereon, have been paid, all moneys
20 32 thereafter received from taxes upon the taxable property in
20 33 such urban renewal area shall be paid into the funds for the
20 34 respective taxing districts in the same manner as taxes on all
20 35 other property.
21 1 Sec. 31. Section 403.19, subsection 5, Code 2003, is
21 2 amended to read as follows:
21 3 5. A municipality shall certify to the county auditor on
21 4 or before December 1 of each year the amount of loans,
21 5 advances, indebtedness, or bonds which qualify for payment
21 6 during the fiscal year beginning in the following calendar
21 7 year from the special fund referred to in subsection 2, and
21 8 the filing of the certificate shall make it a duty of the
21 9 auditor to provide for the division of taxes in each
21 10 subsequent the amount certified for the fiscal year until the
21 11 amount of the loans, advances, indebtedness, or bonds is paid
21 12 to the special fund beginning in the following calendar year.
21 13 The municipality shall include in the certification the total
21 14 amount, as of December 1, of loans, advances, indebtedness, or
21 15 bonds which qualify for payment from the special fund. In any
21 16 year, the county auditor shall, upon receipt of a certified
21 17 request from a municipality filed on or before December 1,
21 18 increase the amount to be allocated under subsection 1 in
21 19 order to reduce the amount to be allocated in the following
21 20 fiscal year to the special fund, to the extent that the
21 21 municipality does not request allocation to the special fund
21 22 of the full portion of taxes which could be collected. Upon
21 23 receipt of a certificate from a municipality, the auditor
21 24 shall mail a copy of the certificate to each affected taxing
21 25 district.
21 26 Sec. 32. Section 403.19, subsection 7, Code 2003, is
21 27 amended to read as follows:
21 28 7. For any fiscal year, a municipality may certify to the
21 29 county auditor for physical plant and equipment revenue
21 30 necessary for payment of principal and interest on bonds
21 31 issued prior to July 1, 2001, only if the municipality
21 32 certified for such revenue for the fiscal year beginning July
21 33 1, 2000. A municipality shall not certify to the county
21 34 auditor for a school district more than the amount the
21 35 municipality certified for the fiscal year beginning July 1,
22 1 2000. If for any fiscal year a municipality fails to certify
22 2 to the county auditor for a school district by July 1 the
22 3 amount of physical plant and equipment revenue necessary for
22 4 payment of principal and interest on such bonds, as provided
22 5 in subsection 2, the school district is not required to pay
22 6 over the revenue to the municipality. The county auditor
22 7 shall immediately certify to the school district the amount of
22 8 such levy that is necessary to pay the principal and interest
22 9 on bonds issued by the municipality to finance an urban
22 10 renewal project, which bonds were issued before July 1, 2001.
22 11 Indebtedness incurred to refund bonds issued prior to July 1,
22 12 2001, shall not be included in the certification. Such school
22 13 district shall pay over the amount certified by November 1 and
22 14 May 1 of the fiscal year following certification to the school
22 15 district.
22 16 PARAGRAPH DIVIDED. If a school district and a municipality
22 17 are unable to agree on the amount of physical plant and
22 18 equipment revenue certified by the municipality for the fiscal
22 19 year beginning July 1, 2001, either party may request that the
22 20 state appeal board review and finally pass upon the amount
22 21 that may be certified. Such appeals must be presented in
22 22 writing to the state appeal board no later than July 31
22 23 following certification. The burden shall be on the
22 24 municipality to prove that the physical plant and equipment
22 25 levy revenue is necessary to pay principal and interest on
22 26 bonds issued prior to July 1, 2001. A final decision must be
22 27 issued by the state appeal board no later than the following
22 28 October 1.
22 29 Sec. 33. Section 403.19, Code 2003, is amended by adding
22 30 the following new subsection:
22 31 NEW SUBSECTION. 9. Effective for the fiscal year
22 32 beginning July 1, 2005, and for all subsequent fiscal years,
22 33 property tax revenues divided pursuant to this section and
22 34 paid into the special fund in subsection 2 shall not be used
22 35 by a municipality to suspend, abate, exempt, rebate, refund,
23 1 or reimburse property taxes, or provide a grant for property
23 2 taxes paid, in an urban renewal area if the property taxes are
23 3 imposed against retail property.
23 4 Sec. 34. Section 403.20, Code 2003, is amended to read as
23 5 follows:
23 6 403.20 PERCENTAGE OF ADJUSTMENT CONSIDERED IN VALUE
23 7 ASSESSMENT.
23 8 1. In Except as otherwise provided in subsection 2, in
23 9 determining the assessed value of property within an urban
23 10 renewal area which is subject to a division of tax revenues
23 11 pursuant to section 403.19, the difference between the actual
23 12 value of the property as determined by the assessor each year
23 13 and the percentage of adjustment certified for that year by
23 14 the director of revenue and finance on or before November 1
23 15 pursuant to section 441.21, subsection 9, multiplied by the
23 16 actual value of the property as determined by the assessor,
23 17 shall be subtracted from the actual value of the property as
23 18 determined pursuant to section 403.19, subsection 1. If the
23 19 assessed value of the property as determined pursuant to
23 20 section 403.19, subsection 1, is reduced to zero, the
23 21 additional valuation reduction shall be subtracted from the
23 22 actual value of the property as determined by the assessor.
23 23 2. This subsection applies to urban renewal areas
23 24 established pursuant to an urban renewal plan adopted on or
23 25 after July 1, 2003, and any amendments thereto, and to
23 26 territory amended into an urban renewal area established
23 27 pursuant to an urban renewal plan adopted before July 1, 2003,
23 28 if such amendment adding territory was adopted on or after
23 29 July 1, 2003. In determining the assessed value of property
23 30 within an urban renewal area which is subject to a division of
23 31 tax revenues pursuant to section 403.19, the difference
23 32 between the actual value of the property as determined by the
23 33 assessor each year and the percentage of adjustment certified
23 34 for that year by the director of revenue and finance on or
23 35 before November 1 pursuant to section 441.21, subsection 9,
24 1 multiplied by the actual value of the property as determined
24 2 by the assessor, shall be subtracted from the actual value of
24 3 the property in the ratio that the amount of the property
24 4 value as determined pursuant to section 403.19, subsection 1,
24 5 bears to the total value of the property, and in the ratio
24 6 that the amount of the property value as determined in section
24 7 403.19, subsection 2, bears to the total value of the
24 8 property. If the assessed value of the property as determined
24 9 pursuant to section 403.19, subsection 1, is reduced to zero,
24 10 the additional valuation reduction shall be subtracted from
24 11 the actual value of the property as determined in section
24 12 403.19, subsection 2.
24 13 Sec. 35. EFFECTIVE AND RETROACTIVE APPLICABILITY DATES.
24 14 1. The sections of this division of this Act amending
24 15 section 403.5, subsection 1, and section 403.17, subsection
24 16 23, take effect July 1, 2003, and apply retroactively to the
24 17 assessment year beginning January 1, 2003, for urban renewal
24 18 areas established before, on, or after the effective date of
24 19 these sections of this division of this Act.
24 20 2. The section of this division of this Act amending
24 21 section 403.5, subsection 2, being deemed of immediate
24 22 importance, takes effect upon enactment and applies to urban
24 23 renewal plans proposed on or after the effective date.
24 24 3. The section of this division of this Act amending
24 25 section 403.5, subsections 5, 6, and 7, being deemed of
24 26 immediate importance, takes effect upon enactment and applies
24 27 to amendments to urban renewal plans, if such amendments are
24 28 proposed on or after the effective date of this section of
24 29 this division of this Act.
24 30 4. The sections of this division of this Act enacting
24 31 section 403.5, subsection 8, amending section 403.17,
24 32 subsections 10 and 25, enacting section 403.17, subsection
24 33 12A, and amending section 403.19, subsection 5, take effect
24 34 July 1, 2003, and apply to urban renewal plans adopted and
24 35 urban renewal areas established before, on, or after the
25 1 effective date of these sections of this division of this Act.
25 2 5. The sections of this division of this Act amending
25 3 section 403.19, subsections 2 and 7, take effect July 1, 2006,
25 4 and apply to fiscal years beginning on or after July 1, 2007.
25 5 6. The section of this division of this Act enacting
25 6 section 403.19, subsection 9, applies to urban renewal areas
25 7 established before, on, or after July 1, 2003.
25 8 DIVISION VII
25 9 Sec. 38. CONTINGENT EFFECTIVENESS. Divisions I, II, III,
25 10 IV, and V of this Act shall not be effective unless an
25 11 appropriation is made for deposit in the grow Iowa fund.
25 12 EXPLANATION
25 13 This bill relates to economic development by creating a
25 14 technology transfer advisor, creating a loan and credit
25 15 guarantee program and fund, creating an economic development
25 16 marketing board, providing for a business start=up information
25 17 internet web site, creating a grow Iowa fund, making
25 18 appropriations and related tax changes, making changes to
25 19 urban renewal law and related taxes, and providing effective
25 20 and retroactive applicability dates.
25 21 DIVISION I == This division of the bill relates to the
25 22 creation of a position of technology transfer advisor.
25 23 The division requires the governor to appoint two
25 24 technology transfer advisors located at offices at the
25 25 university of Iowa and Iowa state university of science and
25 26 technology. The division provides that the advisors shall do
25 27 all of the following:
25 28 1. Facilitate the transfer of technology developed by
25 29 state universities, community colleges, and private colleges
25 30 and universities.
25 31 2. Coordinate the technology transfer activities at each
25 32 of the public and private universities to encourage the
25 33 implementation of best practices in technology transfer,
25 34 establish measures of performance, and design programs of
25 35 continuous quality improvement for each technology transfer
26 1 office.
26 2 3. Establish technology transfer goals for the state.
26 3 4. Provide technical assistance to Iowa=based
26 4 entrepreneurs associated with or unrelated to the state
26 5 universities regarding technology transfer=related issues.
26 6 5. Receive the technology transfer=related report
26 7 submitted by the state board of regents.
26 8 6. Serve as a coordinator between Iowa=based businesses
26 9 and businesses intending to locate in Iowa.
26 10 The division requires the department of economic
26 11 development to cooperate with and provide staffing support to
26 12 the technology transfer advisors.
26 13 The division requires the state board of regents to
26 14 actively encourage and promote the transfer of technology and
26 15 research at the universities under the board's control to
26 16 commercial application. The division requires the state board
26 17 of regents to give preference and technical support to those
26 18 faculty members and staff members desiring to obtain licenses
26 19 for intellectual property rights created in whole or in part
26 20 by the faculty member or staff member. The division requires
26 21 the state board of regents to annually submit a report to the
26 22 general assembly and the governor regarding technology
26 23 transfer=related information.
26 24 This division of the bill is repealed July 1, 2008.
26 25 DIVISION II == This division of the bill creates a loan and
26 26 credit guarantee program and fund.
26 27 The division requires the department of economic
26 28 development to establish and administer a loan and credit
26 29 guarantee program designed to, through agreements with
26 30 financial institutions, provide loan and credit guarantees,
26 31 and other forms of credit guarantees for qualified businesses
26 32 and targeted industry businesses for eligible project costs.
26 33 The division provides that a loan or credit guarantee or other
26 34 form of credit guarantee provided under the program to a
26 35 participating financial institution for a single qualified
27 1 business or targeted industry business shall not exceed $1
27 2 million. Such guarantees to more than one participating
27 3 financial institution for a single business shall not exceed
27 4 $10 million. The division provides that, in administering the
27 5 program, the department shall consult and cooperate with
27 6 financial institutions in this state and with the loan and
27 7 credit guarantee advisory board.
27 8 The division provides that each participating financial
27 9 institution shall identify and underwrite potential lending
27 10 opportunities with qualified businesses and targeted industry
27 11 businesses. The division provides that, upon a determination
27 12 by a participating financial institution that a qualified
27 13 business or targeted industry business meets the underwriting
27 14 standards for the approval of a loan or credit guarantee, the
27 15 financial institution shall submit the underwriting
27 16 information and a loan or credit guarantee application to the
27 17 department.
27 18 The division provides that the department shall enter into
27 19 an agreement with the participating financial institution upon
27 20 approval of an application under the program.
27 21 The division provides for a preliminary guarantee
27 22 commitment application process where a qualified business or
27 23 targeted industry business applies directly to the department.
27 24 The division allows the department to establish fees in
27 25 relation to the program.
27 26 The division requires the department, in consultation with
27 27 the superintendent of banking, to establish a loan and credit
27 28 guarantee advisory board to provide the department with
27 29 technical advice regarding the administration of the program.
27 30 The division requires the advisory board to review and provide
27 31 recommendations regarding all applications under the program.
27 32 The division creates a loan and credit guarantee fund as a
27 33 separate and distinct fund in the state treasury to only be
27 34 used for specific purposes under the program. The division
27 35 provides that the department shall only pledge moneys in the
28 1 loan and credit guarantee fund and not any other moneys of the
28 2 department. The division allows the department to pledge an
28 3 amount not to exceed a total of $100 million of moneys in the
28 4 fund to assure the repayment of loan and credit guarantees or
28 5 other extensions of credit made under the program. The
28 6 division prohibits the department from pledging the credit or
28 7 taxing power of this state or any political subdivision of
28 8 this state or make debts payable out of any moneys except for
28 9 those in the loan and credit guarantee fund.
28 10 This division of the bill is repealed July 1, 2008.
28 11 DIVISION III == This division of the bill creates an
28 12 economic development marketing board.
28 13 The division establishes an economic development marketing
28 14 board consisting of seven members and is located for
28 15 administrative purposes within the department. The division
28 16 provides that the board shall accept proposals for marketing
28 17 strategies for purposes of selecting a strategy for the
28 18 department of economic development to administer. The
28 19 division provides that the marketing strategies shall be
28 20 designed to market Iowa as a lifestyle, increase the
28 21 population of the state, increase the wealth of Iowans, and
28 22 expand and stimulate the state economy.
28 23 This division of the bill is repealed July 1, 2008.
28 24 DIVISION IV == This division of the bill provides for a
28 25 business start=up information internet web site and toll=free
28 26 telephone number.
28 27 The division requires the department of economic
28 28 development to provide information through an internet web
28 29 site and toll=free telephone number to assist persons
28 30 interested in establishing a commercial facility or engaging
28 31 in a commercial activity. The division requires the
28 32 department to examine similar efforts in other states and
28 33 incorporate the best practices in developing the internet web
28 34 site.
28 35 DIVISION V == This division of the bill creates a grow Iowa
29 1 fund.
29 2 The division appropriates moneys in the fund to all of the
29 3 following for all of the following purposes:
29 4 1. To the department of economic development for deposit
29 5 in the loan and credit guarantee fund, not more than $100
29 6 million.
29 7 2. To the department of economic development for purposes
29 8 of administering the marketing strategy selected by the
29 9 economic development marketing board, not more than $45
29 10 million.
29 11 3. To the governor's office for purposes of the technology
29 12 transfer agents, not more than $300,000 per year.
29 13 4. To the department of economic development for purposes
29 14 of administering the business start=up information internet
29 15 web site, not more $200,000 per year for a period of two
29 16 years.
29 17 DIVISION VI == This division of the bill makes several
29 18 changes to the urban renewal and tax increment financing law.
29 19 The division provides that cities having a population of
29 20 less than 2,000 shall be audited for each fiscal year ending
29 21 on or after June 30, 2004, if the city has established an
29 22 urban renewal area and the incremental valuation for purposes
29 23 of dividing revenue is $1 million or more. Currently, cities
29 24 with a population of 700 but less than 2,000 have their
29 25 accounts audited every four years and cities of less than 700
29 26 population are not audited except under certain circumstances.
29 27 The division limits the amount of actual value of taxable
29 28 property in an urban renewal increment in municipalities of
29 29 20,000 or less to an amount equal to 25 percent of the total
29 30 actual value of taxable property in the municipality. The
29 31 division limits the amount of actual value of taxable property
29 32 in an urban renewal increment in municipalities of over 20,000
29 33 to an amount equal to 15 percent of the total actual value of
29 34 taxable property in the municipality. However, the division
29 35 provides that if all or a portion of the valuation reduced
30 1 because of the limitation is needed to pay debt incurred
30 2 before July 1, 2004, the municipality may capture that value
30 3 needed. This section of the division takes effect July 1,
30 4 2003, and applies retroactively to the assessment year
30 5 beginning January 1, 2003, for urban renewal areas established
30 6 before, on, or after the effective date.
30 7 The division provides that a city proposing an urban
30 8 renewal plan, or amending an existing plan, shall not proceed
30 9 unless the affected taxing entities that are counties, by
30 10 resolution, approve the proposed plan or amendment. The
30 11 division also provides that a project may be added to a plan
30 12 or territory added to or severed from an urban renewal area
30 13 only by an amendment to the urban renewal plan. This portion
30 14 of the division takes effect upon enactment and applies to
30 15 urban renewal plans proposed on or after the effective date
30 16 and to amendments to any urban renewal plan, if such
30 17 amendments are proposed on or after the effective date.
30 18 The division limits urban renewal areas to 20 years in
30 19 duration counting from July 1 of the first fiscal year in
30 20 which the municipality receives moneys from a division of
30 21 revenue. However, the duration of an urban renewal area
30 22 established before July 1, 2003, is 20 years from the first
30 23 fiscal year the municipality receives moneys from a division
30 24 of revenue or the year in which indebtedness is retired,
30 25 whichever is later. Indebtedness incurred after the effective
30 26 date of this portion of the division to refund bonds issued
30 27 prior to the effective date of this portion of the division
30 28 shall not be considered loans, advances, indebtedness, or
30 29 bonds due and owing on the effective date of this portion of
30 30 the division. This portion of the division takes effect July
30 31 1, 2003, and applies to urban renewal areas established
30 32 before, on, or after the effective date of this portion of the
30 33 division.
30 34 The division defines "indebtedness" to include a written
30 35 agreement to suspend, abate, exempt, rebate, refund, or
31 1 reimburse property taxes or to provide a grant for property
31 2 taxes paid. This portion of the division takes effect July 1,
31 3 2003, and applies to urban renewal plans adopted, and urban
31 4 renewal areas established, before, on, or after the effective
31 5 date. Effective for fiscal years beginning on or after July
31 6 1, 2005, the division prohibits the use of such agreements for
31 7 property taxes on retail property.
31 8 The division amends the definition of "urban renewal
31 9 project" to provide that it does not include activities or
31 10 undertakings relating to a business which is or will be
31 11 located in the area of operation of a municipality if the
31 12 business has closed or reduced its operation in one area of
31 13 the state and relocated substantially the same operation into
31 14 the area of operation of the municipality unless the governing
31 15 body of the county where the business is currently located, if
31 16 the business is located in the unincorporated area, or the
31 17 governing body of the city where the business is currently
31 18 located, if the business is located within the corporate
31 19 boundaries of a city, adopts a resolution approving the
31 20 relocation. This portion of the division takes effect July 1,
31 21 2003, and applies to urban renewal plans adopted, and urban
31 22 renewal areas established, before, on, or after the effective
31 23 date.
31 24 The division provides that, beginning with fiscal years
31 25 beginning on or after July 1, 2007, the foundation property
31 26 tax ($5.40 per $1,000 of assessed value of taxable property)
31 27 imposed on property in an urban renewal area will not be
31 28 divided and paid to a municipality.
31 29 The division specifies that a municipality shall certify by
31 30 December 1 of each year the amount of loans, advances,
31 31 indebtedness, or bonds which qualify for payment from a
31 32 division of revenue for the following fiscal year. The
31 33 division also requires that the municipality certify the total
31 34 amount of outstanding loans, advances, indebtedness, or bonds
31 35 which qualify for payment from divided revenues. This portion
32 1 of the division takes effect July 1, 2003, and applies to
32 2 urban renewal areas established before, on, or after the
32 3 effective date.
32 4 The division provides that the assessment limitation (i.e.,
32 5 rollback) amount shall be subtracted from the increment value
32 6 amount and the base value amount in the proportion that the
32 7 value of each bears to the total value of the property in the
32 8 urban renewal area if it is an urban renewal area established
32 9 pursuant to an urban renewal plan adopted on or after July 1,
32 10 2003, or if it is territory amended into an urban renewal area
32 11 established pursuant to an urban renewal plan adopted before
32 12 July 1, 2003, if such amendment was approved on or after July
32 13 1, 2003.
32 14 DIVISION VII == This division of the bill makes all other
32 15 divisions of the bill, except the division relating to urban
32 16 renewal, effective only if an appropriation is made for
32 17 deposit in the grow Iowa fund created in division V of the
32 18 bill.
32 19 LSB 3447SV 80
32 20 tm/sh/8