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