House File 2614 - Introduced
HOUSE FILE
BY COMMITTEE ON ECONOMIC GROWTH
(SUCCESSOR TO HSB 531)
Passed House, Date Passed Senate, Date
Vote: Ayes Nays Vote: Ayes Nays
Approved
A BILL FOR
1 An Act relating to a rural economic development program and fund
2 and making appropriations.
3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
4 TLSB 5703HV 81
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PAG LIN
1 1 Section 1. NEW SECTION. 15E.361 RURAL ECONOMIC
1 2 DEVELOPMENT PROGRAM == FUND.
1 3 1. The department shall establish and administer a rural
1 4 economic development program to annually distribute moneys on
1 5 a per capita basis from the rural economic development fund to
1 6 local economic development groups, as defined by the
1 7 department, located in counties with a population of less than
1 8 twenty=five thousand. Beginning July 1, 2007, the department
1 9 shall make such distributions to eligible local economic
1 10 development groups by July 31 of each fiscal year. A local
1 11 economic development group shall apply to the department to
1 12 become an eligible local economic development group.
1 13 2. A local economic development group receiving moneys
1 14 under the program shall use the moneys for purposes of
1 15 providing financial assistance in the form of grants, loans,
1 16 loan guarantees, or any combination of such assistance for any
1 17 of the following purposes:
1 18 a. To create, assess, or assist a project to enhance
1 19 economic and community development in a rural area.
1 20 b. To assist in the development and organization of a
1 21 cooperative.
1 22 c. To provide funding for technical assistance to an
1 23 organization.
1 24 d. To address workforce development challenges.
1 25 3. An entity may apply for financial assistance from a
1 26 local economic development group receiving moneys under the
1 27 program if the entity meets the following criteria:
1 28 a. The project for which financial assistance is sought is
1 29 located in this state.
1 30 b. In applying for financial assistance, the applicant
1 31 submits a business plan that demonstrates a managerial and
1 32 technical expertise related to the project for which financial
1 33 assistance is sought.
1 34 4. In making determinations of providing financial
1 35 assistance, a local economic development group shall consider
2 1 all of the following factors:
2 2 a. The feasibility of the project or proposed project to
2 3 remain a viable enterprise.
2 4 b. The extent to which the project or proposed project is
2 5 located in a rural region of the state.
2 6 c. The proportion of local moneys to be contributed to the
2 7 project or proposed project.
2 8 d. The level of need of the region where the project or
2 9 proposed project is located.
2 10 5. By June 30 of each fiscal year, a local economic
2 11 development region receiving moneys under the rural economic
2 12 development program shall file a report with the department
2 13 identifying all recipients of moneys under the program and the
2 14 projects for which the moneys were awarded.
2 15 6. a. A rural economic development fund is created in the
2 16 state treasury under the control of the department and
2 17 consisting of any moneys appropriated by the general assembly
2 18 and any other moneys available to and obtained or accepted by
2 19 the department for placement in the fund. Payments of
2 20 interest, repayments of moneys loaned pursuant to this
2 21 section, and recaptures of loans shall be deposited in the
2 22 fund. Moneys in the fund are not subject to section 8.33.
2 23 Notwithstanding section 12C.7, interest or earnings on moneys
2 24 in the fund shall be credited to the fund.
2 25 b. Beginning July 1, 2007, and each July 1 thereafter,
2 26 there is appropriated from the general fund to the department
2 27 an amount equal to the amount determined pursuant to paragraph
2 28 "c" for deposit in the rural economic development fund.
2 29 c. The amount appropriated pursuant to paragraph "b" shall
2 30 be equal to the amount of revenue generated by monitor vending
2 31 machines authorized by the Iowa lottery authority and
2 32 deposited in the general fund during the previous fiscal year
2 33 less the amount of revenue generated by monitor vending
2 34 machines authorized by the Iowa lottery authority and
2 35 deposited in the general fund during the fiscal year beginning
3 1 July 1, 2005, and ending June 30, 2006. For purposes of this
3 2 section, "monitor vending machine" means a vending machine or
3 3 other similar electronic device that includes a video monitor
3 4 and audio capabilities that dispenses or prints and dispenses
3 5 lottery tickets to a purchaser that have been determined to be
3 6 winning or losing tickets by a predetermined pool drawing
3 7 machine prior to the dispensing of the tickets.
3 8 EXPLANATION
3 9 This bill relates to a rural economic development program
3 10 and fund and makes appropriations.
3 11 The bill requires the department of economic development to
3 12 establish and administer a rural economic development program
3 13 to annually distribute moneys on a per capita basis from the
3 14 rural economic development fund to local economic development
3 15 groups, as defined by the department, located in counties with
3 16 a population of less than 25,000. Beginning July 1, 2007, the
3 17 department shall make such distributions to eligible local
3 18 economic development groups by July 31 of each fiscal year.
3 19 The bill requires a local economic development group to apply
3 20 to the department to become an eligible local economic
3 21 development group.
3 22 The bill requires local economic development groups
3 23 receiving moneys under the program to use the moneys to
3 24 create, assess, or assist a project to enhance economic and
3 25 community development in a rural area; to assist in the
3 26 development and organization of a cooperative; to provide
3 27 funding for technical assistance to an organization; or to
3 28 address workforce development challenges.
3 29 The bill allows an entity to apply for financial assistance
3 30 from a local economic development group if the project for
3 31 which financial assistance is sought is located in this state
3 32 and, in applying for financial assistance, the applicant
3 33 submits a business plan that demonstrates a managerial and
3 34 technical expertise related to the project for which financial
3 35 assistance is sought.
4 1 The bill provides certain factors for a local economic
4 2 development group to consider in making determinations of
4 3 providing financial assistance.
4 4 The bill includes reporting requirements for local economic
4 5 development groups receiving moneys under the rural economic
4 6 development program.
4 7 The bill creates a rural economic development fund in the
4 8 state treasury under the control of the department. Beginning
4 9 July 1, 2007, and each July 1 thereafter, the bill
4 10 appropriates from the general fund to the department a certain
4 11 amount for deposit in the rural economic development fund.
4 12 The amount appropriated shall be equal to the amount of
4 13 revenue generated by monitor vending machines authorized by
4 14 the Iowa lottery authority and deposited in the general fund
4 15 during the previous fiscal year less the amount of revenue
4 16 generated by monitor vending machines authorized by the Iowa
4 17 lottery authority and deposited in the general fund during the
4 18 fiscal year beginning July 1, 2005, and ending June 30, 2006.
4 19 LSB 5703HV 81
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