House File 561 - Introduced



                                       HOUSE FILE       
                                       BY  STRUYK and DANDEKAR


    Passed House,  Date               Passed Senate, Date             
    Vote:  Ayes        Nays           Vote:  Ayes        Nays         
                 Approved                            

                                      A BILL FOR

  1 An Act relating to requirements for economic development
  2    financial assistance used for construction purposes.
  3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  4 TLSB 1451YH 81
  5 tm/pj/5

PAG LIN



  1  1    Section 1.  Section 15A.1, Code 2005, is amended by adding
  1  2 the following new subsection:
  1  3    NEW SUBSECTION.  6.  In addition to the other requirements
  1  4 of this section, a disbursement of public moneys for grants,
  1  5 loans, tax incentives, or other financial assistance for
  1  6 economic development which are to be used for construction
  1  7 purposes shall be reduced by ten percent unless at least sixty
  1  8 percent of the construction work is completed by Iowa=based
  1  9 businesses.  In determining whether a business is an Iowa=
  1 10 based business, the state agency disbursing the public moneys
  1 11 shall consider any substantial contacts the business has with
  1 12 the state including, but not limited to, whether the business
  1 13 is incorporated in the state, whether the business is
  1 14 authorized to do business in the state, whether the business
  1 15 pays taxes to the state, whether the business is headquartered
  1 16 in the state, and what percentage of the workforce of the
  1 17 business is located in the state.  A state agency disbursing
  1 18 public moneys that are subject to the provisions of this
  1 19 subsection may require periodic reports from the recipient to
  1 20 ensure compliance with this subsection.  If noncompliance with
  1 21 the provisions of this subsection occurs, the state agency may
  1 22 require the recipient to repay all or a portion of the
  1 23 financial assistance received.
  1 24                           EXPLANATION
  1 25    This bill relates to requirements for economic development
  1 26 financial assistance used for construction purposes.
  1 27    The bill provides that a disbursement of public moneys for
  1 28 grants, loans, tax incentives, or other financial assistance
  1 29 for economic development which are to be used for construction
  1 30 purposes shall be reduced by 10 percent unless at least 60
  1 31 percent of the construction work is completed by Iowa=based
  1 32 businesses.  In determining whether a business is an Iowa=
  1 33 based business, the bill provides that the state agency
  1 34 disbursing the public moneys shall consider any substantial
  1 35 contacts the business has with the state.  The bill provides
  2  1 that a state agency disbursing such public moneys may require
  2  2 periodic reports from the recipient to ensure compliance with
  2  3 the provisions of the bill and, if noncompliance occurs, the
  2  4 state agency may require the recipient to repay all or a
  2  5 portion of the financial assistance received.
  2  6 LSB 1451YH 81
  2  7 tm:nh/pj/5.1