House File 60 - Introduced
HOUSE FILE
BY WISE and PETERSEN
Passed House, Date Passed Senate, Date
Vote: Ayes Nays Vote: Ayes Nays
Approved
A BILL FOR
1 An Act relating to economic development activities by creating
2 the grow Iowa values board and fund and related boards and
3 commissions, authorizing the issuance of bonds to provide
4 economic development=related funding, allowing the creation of
5 economic development regions, authorizing the certification of
6 and development of cultural districts, providing tax credits,
7 and making appropriations.
8 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
9 TLSB 1115YH 81
10 tm/cf/24
PAG LIN
1 1 DIVISION I
1 2 BONDING
1 3 Section 1. Section 8.57, subsection 6, paragraph e, Code
1 4 2005, is amended to read as follows:
1 5 e. Notwithstanding provisions to the contrary in sections
1 6 99D.17 and 99F.11, for the fiscal year beginning July 1, 2000,
1 7 and for each fiscal year thereafter, not more than a total of
1 8 sixty million dollars shall be deposited in the general fund
1 9 of the state in any fiscal year pursuant to sections 99D.17
1 10 and 99F.11. The next fifteen million dollars of the moneys
1 11 directed to be deposited in the general fund of the state in a
1 12 fiscal year pursuant to sections 99D.17 and 99F.11 shall be
1 13 deposited in the vision Iowa fund created in section 12.72 for
1 14 the fiscal year beginning July 1, 2000, and for each fiscal
1 15 year through the fiscal year beginning July 1, 2019. The next
1 16 five million dollars of the moneys directed to be deposited in
1 17 the general fund of the state in a fiscal year pursuant to
1 18 sections 99D.17 and 99F.11 shall be deposited in the school
1 19 infrastructure fund created in section 12.82 for the fiscal
1 20 year beginning July 1, 2000, and for each fiscal year
1 21 thereafter until the principal and interest on all bonds
1 22 issued by the treasurer of state pursuant to section 12.81 are
1 23 paid, as determined by the treasurer of state. The next one
1 24 hundred six million seven hundred thousand dollars of the
1 25 moneys directed to be deposited in the general fund of the
1 26 state in a fiscal year pursuant to sections 99D.17 and 99F.11
1 27 shall be deposited in the grow Iowa values fund created in
1 28 section 15G.108 for the fiscal year beginning July 1, 2007,
1 29 and for each fiscal year through the fiscal year beginning
1 30 July 1, 2024. For the fiscal year beginning July 1, 2025, and
1 31 for each fiscal year thereafter, the next eighty=nine million
1 32 four hundred thousand dollars of the moneys directed to be
1 33 deposited in the general fund of the state in a fiscal year
1 34 pursuant to sections 99D.17 and 99F.11 shall be deposited in
1 35 the grow Iowa values fund created in section 15G.108. The
2 1 total moneys in excess of the moneys deposited in the general
2 2 fund of the state, the vision Iowa fund, and the school
2 3 infrastructure fund, and the grow Iowa values fund in a fiscal
2 4 year shall be deposited in the rebuild Iowa infrastructure
2 5 fund and shall be used as provided in this section,
2 6 notwithstanding section 8.60.
2 7 If the total amount of moneys directed to be deposited in
2 8 the general fund of the state under sections 99D.17 and 99F.11
2 9 in a fiscal year is less than the total amount of moneys
2 10 directed to be deposited in the vision Iowa fund, and the
2 11 school infrastructure fund, and the grow Iowa values fund in
2 12 the fiscal year pursuant to this paragraph "e", the difference
2 13 shall be paid from lottery revenues in the manner provided in
2 14 section 99G.39, subsection 3.
2 15 Sec. 2. NEW SECTION. 12.91 GENERAL AND SPECIFIC BONDING
2 16 POWERS == GROW IOWA VALUES PROGRAM.
2 17 1. The treasurer of state may issue bonds of the state for
2 18 the purpose of providing a portion of the funding for the grow
2 19 Iowa values fund created in section 15G.108. The treasurer of
2 20 state shall have all of the powers which are necessary to
2 21 issue and secure bonds and carry out the purposes of the fund.
2 22 The treasurer of state may issue bonds in principal amounts
2 23 that do not exceed, in the aggregate and excluding refunding
2 24 bonds, two hundred ten million dollars to provide funds for
2 25 the grow Iowa values fund, to provide for any capitalized
2 26 interest on the bonds determined by the treasurer of state to
2 27 be appropriate, to provide for the establishment of reserves
2 28 to secure the bonds, and to provide for the payment of the
2 29 costs of issuance of the bonds, other expenditures of the
2 30 treasurer of state incident to and necessary or convenient to
2 31 carry out the bond issue for the fund, and all other
2 32 expenditures of the board necessary or convenient to
2 33 administer the fund. The bonds are investment securities and
2 34 negotiable instruments within the meaning of and for purposes
2 35 of the uniform commercial code.
3 1 2. Bonds issued under this section are payable solely and
3 2 only out of the moneys, assets, or revenues of the grow Iowa
3 3 values fund and any bond reserve funds established pursuant to
3 4 section 12.92, all of which may be deposited with trustees or
3 5 depositories in accordance with bond or security documents and
3 6 may be pledged by the treasurer of state to the payment
3 7 thereof. Bonds issued under this section shall contain a
3 8 statement that the bonds do not constitute an indebtedness of
3 9 the state. The treasurer of state shall not pledge the credit
3 10 or taxing power of this state or any political subdivision of
3 11 this state or make bonds issued pursuant to this section
3 12 payable out of any moneys except those in the grow Iowa values
3 13 fund.
3 14 3. The proceeds of bonds issued by the treasurer of state
3 15 and not required for immediate disbursement may be held by the
3 16 treasurer of state or may be deposited with a trustee or
3 17 depository as provided in the bond documents and invested or
3 18 reinvested in any investment as directed by the treasurer of
3 19 state and specified in the trust indenture, resolution, or
3 20 other instrument pursuant to which the bonds are issued
3 21 without regard to any limitation otherwise provided by law.
3 22 4. The bonds shall be all of the following:
3 23 a. In a form, issued in denominations, executed in a
3 24 manner, and payable over terms and with rights of redemption,
3 25 and be subject to the terms, conditions and covenants
3 26 providing for the payment of the principal of, redemption
3 27 premiums, if any, interest which may be fixed or variable
3 28 during any period the bonds are outstanding, and such other
3 29 terms and conditions as prescribed in the trust indenture,
3 30 resolution, or other instrument authorizing their issuance.
3 31 b. Negotiable instruments under the laws of the state and
3 32 may be sold at prices, at public or private sale, and in a
3 33 manner, as prescribed by the treasurer of state. Chapters
3 34 73A, 74, 74A, and 75 do not apply to the sale or issuance of
3 35 the bonds.
4 1 c. Subject to the terms, conditions, and covenants
4 2 providing for the payment of the principal, redemption
4 3 premiums, if any, interest, and other terms, conditions,
4 4 covenants, and protective provisions safeguarding payment, not
4 5 inconsistent with this section and as determined by the trust
4 6 indenture, resolution, or other instrument authorizing their
4 7 issuance.
4 8 5. The bonds are securities in which public officers and
4 9 bodies of this state, political subdivisions of this state,
4 10 insurance companies and associations and other persons
4 11 carrying on an insurance business, banks, trust companies,
4 12 savings associations, savings and loan associations, and
4 13 investment companies; administrators, guardians, executors,
4 14 trustees, and other fiduciaries; and other persons authorized
4 15 to invest in bonds or other obligations of the state may
4 16 properly and legally invest funds, including capital, in their
4 17 control or belonging to them.
4 18 6. Bonds must be authorized by a trust indenture,
4 19 resolution, or other instrument of the treasurer of state.
4 20 7. Neither the resolution, trust indenture, nor any other
4 21 instrument by which a pledge is created needs to be recorded
4 22 or filed under the Iowa uniform commercial code to be valid,
4 23 binding, or effective.
4 24 8. Bonds issued under the provisions of this section are
4 25 declared to be issued for a general public and governmental
4 26 purpose and all bonds issued under this section shall be
4 27 exempt from taxation by the state of Iowa and the interest on
4 28 the bonds shall be exempt from the state income tax and the
4 29 state inheritance and estate tax.
4 30 9. Subject to the terms of any bond documents, moneys in
4 31 the grow Iowa values fund may be expended for administration
4 32 expenses.
4 33 10. The treasurer of state may issue bonds for the purpose
4 34 of refunding any bonds issued pursuant to this section then
4 35 outstanding, including the payment of any redemption premiums
5 1 thereon and any interest accrued or to accrue to the date of
5 2 redemption of the outstanding bonds. Until the proceeds of
5 3 bonds issued for the purpose of refunding outstanding bonds
5 4 are applied to the purchase or retirement of outstanding
5 5 bonds, the proceeds may be placed in escrow and be invested
5 6 and reinvested in accordance with the provisions of this
5 7 section. The interest, income, and profits earned or realized
5 8 on an investment may also be applied to the payment of the
5 9 outstanding bonds to be refunded by purchase, retirement, or
5 10 redemption. After the terms of the escrow have been fully
5 11 satisfied and carried out, any balance of proceeds and
5 12 interest earned or realized on the investments may be returned
5 13 to the treasurer of state for deposit in the grow Iowa values
5 14 fund established in section 15G.108. All refunding bonds
5 15 shall be issued and secured and subject to the provisions of
5 16 this chapter in the same manner and to the same extent as
5 17 other bonds issued pursuant to this section.
5 18 11. The treasurer of state shall have all of the powers
5 19 which are necessary to issue and secure bonds including but
5 20 not limited to the power to procure insurance, other credit
5 21 enhancements, and other financing arrangements, and to execute
5 22 instruments and contracts and to enter into agreements
5 23 convenient or necessary to facilitate financing arrangements
5 24 with respect to the bonds and to carry out the purposes of the
5 25 fund, including but not limited to such arrangements,
5 26 instruments, contracts and agreements as municipal bond
5 27 insurance, self=insurance or liquidity trusts, accounts, pools
5 28 or other arrangements, liquidity facilities or covenants,
5 29 letters of credit, and interest rate agreements.
5 30 12. For purposes of this section and sections 12.92
5 31 through 12.95, the term "bonds" means bonds, notes, and other
5 32 obligations and financing arrangements issued or entered into
5 33 by the treasurer of state and the term "interest rate
5 34 agreement" means an interest rate swap or exchange agreement,
5 35 an agreement establishing an interest rate floor or ceiling or
6 1 both, or any similar agreement. Any such agreement may
6 2 include the option to enter into or cancel the agreement or to
6 3 reverse or extend the agreement.
6 4 Sec. 3. NEW SECTION. 12.92 GROW IOWA VALUES FUND ==
6 5 ACCOUNTS AND RESERVE FUNDS.
6 6 1. The treasurer of state shall establish such accounts
6 7 within the grow Iowa values fund as may be appropriate
6 8 including debt service accounts for the purpose of paying the
6 9 principal of, redemption premium, if any, and interest on
6 10 bonds payable therefrom. Moneys in the debt service accounts
6 11 shall not be subject to appropriation for any other purpose by
6 12 the general assembly, but shall be used only for the purposes
6 13 of paying the principal of, redemption premium, if any, and
6 14 interest on the bonds payable therefrom.
6 15 2. Revenue for a debt service account shall include, but
6 16 is not limited to, all of the following, which shall be
6 17 deposited with the treasurer of state or the treasurer's
6 18 designee as provided by any bond or security documents and
6 19 credited to the debt service account:
6 20 a. The proceeds of bonds issued to capitalize and pay the
6 21 costs of the fund and investment earnings on the proceeds.
6 22 b. Interest attributable to investment of moneys in the
6 23 fund or an account of the fund.
6 24 c. Moneys in the form of a devise, gift, bequest,
6 25 donation, federal or other grant, reimbursement, repayment,
6 26 judgment, transfer, payment, or appropriation from any source
6 27 intended to be used for the purposes of the fund or account.
6 28 d. Moneys deposited in the grow Iowa values fund pursuant
6 29 to section 8.57, subsection 6, paragraph "e", or section
6 30 99G.39, subsection 3, paragraph "a".
6 31 3. a. The treasurer of state may create and establish one
6 32 or more special funds, to be known as bond reserve funds, to
6 33 secure one or more issues of bonds issued pursuant to section
6 34 12.91. The treasurer of state shall pay into each bond
6 35 reserve fund any moneys appropriated and made available by the
7 1 state or the treasurer for the purpose of the fund, any
7 2 proceeds of sale of bonds to the extent provided in the
7 3 resolutions or trust indentures authorizing their issuance,
7 4 and any other moneys which may be available to the treasurer
7 5 for the purpose of the fund from any other sources. All
7 6 moneys held in a bond reserve fund, except as otherwise
7 7 provided in this chapter, shall be used as required solely for
7 8 the payment of the principal of bonds secured in whole or in
7 9 part by the fund or of the sinking fund payments with respect
7 10 to the bonds, the purchase or redemption of the bonds, the
7 11 payment of interest on the bonds, or the payments of any
7 12 redemption premium required to be paid when the bonds are
7 13 redeemed prior to maturity.
7 14 b. Moneys in a bond reserve fund shall not be withdrawn
7 15 from the bond reserve fund at any time in an amount that will
7 16 reduce the amount of the fund to less than the bond reserve
7 17 fund requirement established for the fund, as provided in this
7 18 subsection, except for the purpose of making, with respect to
7 19 bonds secured in whole or in part by the fund, payment when
7 20 due of principal, interest, redemption premiums, and the
7 21 sinking fund payments with respect to the bonds for the
7 22 payment of which other moneys of the treasurer are not
7 23 available. Any income or interest earned by, or incremental
7 24 to, a bond reserve fund due to the investment of moneys in the
7 25 fund may be transferred by the treasurer to other funds or
7 26 accounts to the extent the transfer does not reduce the amount
7 27 of that bond reserve fund below the bond reserve fund
7 28 requirement for the fund.
7 29 c. The treasurer of state shall not at any time issue
7 30 bonds, secured in whole or in part by a bond reserve fund, if,
7 31 upon the issuance of the bonds, the amount in the bond reserve
7 32 fund will be less than the bond reserve fund requirement for
7 33 the fund, unless the treasurer at the time of issuance of the
7 34 bonds deposits in the fund from the proceeds of the bonds
7 35 issued or from other sources an amount which, together with
8 1 the amount then in the fund, will not be less than the bond
8 2 reserve fund requirement for the fund. For the purposes of
8 3 this subsection, the term "bond reserve fund requirement"
8 4 means, as of any particular date of computation, an amount of
8 5 money, as provided in the resolutions or trust indentures
8 6 authorizing the bonds with respect to which the fund is
8 7 established.
8 8 d. To assure the continued solvency of any bonds secured
8 9 by the bond reserve fund, provision is made in paragraph "c"
8 10 for the accumulation in each bond reserve fund of an amount
8 11 equal to the bond reserve fund requirement for the fund. In
8 12 order to further assure maintenance of the bond reserve funds,
8 13 the treasurer shall, on or before January 1 of each calendar
8 14 year, make and deliver to the governor the treasurer's
8 15 certificate stating the sum, if any, required to restore each
8 16 bond reserve fund to the bond reserve fund requirement for
8 17 that fund. Within thirty days after the beginning of the
8 18 session of the general assembly next following the delivery of
8 19 the certificate, the governor shall submit to both houses
8 20 printed copies of a budget including the sum, if any, required
8 21 to restore each bond reserve fund to the bond reserve fund
8 22 requirement for that fund. Any sums appropriated by the
8 23 general assembly and paid to the treasurer pursuant to this
8 24 subsection shall be deposited by the treasurer in the
8 25 applicable bond reserve fund.
8 26 Sec. 4. NEW SECTION. 12.93 PLEDGES.
8 27 1. It is the intention of the general assembly that a
8 28 pledge made in respect of bonds shall be valid and binding
8 29 from the time the pledge is made, that the money or property
8 30 so pledged and received after the pledge by the treasurer of
8 31 state shall immediately be subject to the lien of the pledge
8 32 without physical delivery or further act, and that the lien of
8 33 the pledge shall be valid and binding as against all parties
8 34 having claims of any kind in tort, contract, or otherwise
8 35 against the treasurer of state whether or not the parties have
9 1 notice of the lien.
9 2 2. The money set aside in a fund or funds pledged for any
9 3 series or issue of bonds shall be held for the sole benefit of
9 4 the series or issue separate and apart from money pledged for
9 5 another series or issue of bonds of the treasurer of state.
9 6 Bonds may be issued in series under one or more resolutions or
9 7 trust indentures and may be fully open=ended, thus providing
9 8 for the unlimited issuance of additional series, or partially
9 9 open=ended, limited as to additional series.
9 10 Sec. 5. NEW SECTION. 12.94 LIMITATIONS.
9 11 Bonds issued pursuant to section 12.91 are not debts of the
9 12 state, or of any political subdivision of the state, and do
9 13 not constitute a pledge of the faith and credit of the state
9 14 or a charge against the general credit or general fund of the
9 15 state. The issuance of any bonds pursuant to section 12.91 by
9 16 the treasurer of state does not directly, indirectly, or
9 17 contingently obligate the state or a political subdivision of
9 18 the state to apply moneys from, or to levy or pledge any form
9 19 of taxation whatever to, the payment of the bonds. Bonds
9 20 issued under section 12.91 are payable solely and only from
9 21 the sources and special fund and accounts provided in section
9 22 12.92.
9 23 Sec. 6. NEW SECTION. 12.95 CONSTRUCTION.
9 24 Sections 12.91 through 12.94, being necessary for the
9 25 welfare of this state and its inhabitants, shall be liberally
9 26 construed to effect their purposes.
9 27 Sec. 7. Section 99G.39, subsection 3, paragraph a, Code
9 28 2005, is amended to read as follows:
9 29 a. Notwithstanding subsection 1, if gaming revenues under
9 30 sections 99D.17 and 99F.11 are insufficient in a fiscal year
9 31 to meet the total amount of such revenues directed to be
9 32 deposited in the vision Iowa fund, and the school
9 33 infrastructure fund, and the grow Iowa values fund during the
9 34 fiscal year pursuant to section 8.57, subsection 6, paragraph
9 35 "e", the difference shall be paid from lottery revenues prior
10 1 to deposit of the lottery revenues in the general fund. If
10 2 lottery revenues are insufficient during the fiscal year to
10 3 pay the difference, the remaining difference shall be paid
10 4 from lottery revenues in subsequent fiscal years as such
10 5 revenues become available.
10 6 DIVISION II
10 7 GROW IOWA VALUES BOARD AND FUND
10 8 Sec. 8. Section 15.108, subsection 9, Code 2005, is
10 9 amended by adding the following new paragraph:
10 10 NEW PARAGRAPH. g. Administer the marketing strategies
10 11 selected pursuant to section 15G.109.
10 12 Sec. 9. NEW SECTION. 15G.101 DEFINITIONS.
10 13 As used in this chapter, unless the context otherwise
10 14 requires:
10 15 1. "Board" means the grow Iowa values board established in
10 16 section 15G.102.
10 17 2. "Department" means the Iowa department of economic
10 18 development created in section 15.105.
10 19 3. "Director" means the director of the department of
10 20 economic development.
10 21 4. "Fund" means the grow Iowa values fund created in
10 22 section 15G.108.
10 23 5. "Grow Iowa values geographic regions" means the
10 24 geographic regions defined in section 15G.106.
10 25 Sec. 10. NEW SECTION. 15G.102 GROW IOWA VALUES BOARD.
10 26 1. The grow Iowa values board is established consisting of
10 27 eleven voting members and four ex officio, nonvoting members.
10 28 The grow Iowa values board shall be located for administrative
10 29 purposes within the department and the director shall provide
10 30 office space, staff assistance, and necessary supplies and
10 31 equipment for the board. The director shall budget moneys to
10 32 pay the compensation and expenses of the board. In performing
10 33 its functions, the board is performing a public function on
10 34 behalf of the state and is a public instrumentality of the
10 35 state.
11 1 2. a. The eleven voting members of the board shall be
11 2 appointed by the governor, subject to confirmation by the
11 3 senate.
11 4 b. The four ex officio, nonvoting members shall be
11 5 appointed as follows:
11 6 (1) One member appointed by the president of the senate.
11 7 (2) One member appointed by the minority leader of the
11 8 senate.
11 9 (3) One member appointed by the speaker of the house of
11 10 representatives.
11 11 (4) One member appointed by the minority leader of the
11 12 house of representatives.
11 13 (5) For purposes of this paragraph, if an equal number of
11 14 candidates from two political parties are elected to a house
11 15 and become members by oath or affirmation, the appointing
11 16 authorities referenced in this paragraph shall be considered
11 17 to be the two co=presidents in the senate or the two co=
11 18 speakers in the house of representatives unless the house
11 19 otherwise provides. For purposes of this section, "political
11 20 party" means a party whose registered voters constitute one of
11 21 the two highest numbers of party registrants in this state.
11 22 c. All appointments shall comply with sections 69.16 and
11 23 69.16A.
11 24 d. At least one member of the board shall be from each
11 25 grow Iowa values geographic region.
11 26 e. Each of the following areas of expertise shall be
11 27 represented by at least one member of the board who has
11 28 professional experience in that area of expertise:
11 29 (1) Finance and investment banking.
11 30 (2) Advanced manufacturing.
11 31 (3) Statewide agriculture.
11 32 (4) Life sciences.
11 33 (5) Small business development.
11 34 (6) Information technology.
11 35 (7) Economics.
12 1 (8) Labor.
12 2 (9) Marketing.
12 3 (10) Entrepreneurship.
12 4 f. At least nine voting members of the board shall be
12 5 actively employed in the private, for=profit sector of the
12 6 economy.
12 7 g. The board membership shall be balanced between
12 8 representation by employers with less than two hundred
12 9 employees and employers with two hundred or more employees.
12 10 3. The chairperson and vice chairperson shall be elected
12 11 by the voting members of the board from the membership of the
12 12 board. In the case of the absence or disability of the
12 13 chairperson and vice chairperson, the voting members of the
12 14 board shall elect a temporary chairperson by a majority vote
12 15 of those voting members who are present and voting, provided a
12 16 quorum is present.
12 17 4. The members of the board shall be appointed to three=
12 18 year staggered terms and the terms shall commence and end as
12 19 provided in section 69.19. If a vacancy occurs, a successor
12 20 shall be appointed in the same manner and subject to the same
12 21 qualifications as the original appointment to serve the
12 22 unexpired term.
12 23 5. A majority of the voting members of the board
12 24 constitutes a quorum.
12 25 6. A member of the board shall abstain from voting on the
12 26 provision of financial assistance to a project which is
12 27 located in the county in which the member of the board
12 28 resides.
12 29 7. The members of the board are entitled to receive
12 30 reimbursement for actual expenses incurred while engaged in
12 31 the performance of official duties. A board member may also
12 32 be eligible to receive compensation as provided in section
12 33 7E.6.
12 34 Sec. 11. NEW SECTION. 15G.103 BOARD DUTIES.
12 35 The board shall do all of the following:
13 1 1. Organize.
13 2 2. Receive advice and recommendations from the due
13 3 diligence committee, the economic development marketing board,
13 4 and the grow Iowa values review commission.
13 5 3. Assist the department in implementing programs and
13 6 activities in a manner designed to achieve the goals set out
13 7 in section 15G.107.
13 8 4. By December 15 of each year, submit a written report to
13 9 the general assembly reviewing the activities of the board
13 10 during that calendar year. The report shall include
13 11 information necessary for the review of the goals and
13 12 performance measures set out in section 15G.107. State
13 13 agencies and other entities receiving moneys from the fund
13 14 shall cooperate with and assist the board in compilation of
13 15 the report.
13 16 5. Adopt administrative rules pursuant to chapter 17A
13 17 necessary to administer this chapter. This delegation shall
13 18 be construed narrowly.
13 19 Sec. 12. NEW SECTION. 15G.104 DUE DILIGENCE COMMITTEE.
13 20 1. A due diligence committee is established consisting of
13 21 five members and is located for administrative purposes within
13 22 the department. The director of the department shall provide
13 23 office space, staff assistance, and necessary supplies and
13 24 equipment for the committee. The director shall budget moneys
13 25 to pay the compensation and expenses of the committee. In
13 26 performing its functions, the committee is performing a public
13 27 function on behalf of the state and is a public
13 28 instrumentality of the state.
13 29 2. a. Membership of the due diligence committee shall
13 30 consist of five voting members of the grow Iowa values board
13 31 elected annually by the voting members of the board.
13 32 Committee members shall have expertise in the areas of banking
13 33 and entrepreneurship.
13 34 b. The chairperson and vice chairperson of the committee
13 35 shall be elected by and from the committee members. The terms
14 1 of the members shall commence and end as provided by section
14 2 69.19. If a vacancy occurs, a successor shall be appointed in
14 3 the same manner and subject to the same qualifications as the
14 4 original appointment to serve the unexpired term. A majority
14 5 of the committee constitutes a quorum.
14 6 3. The committee, after a thorough review, shall determine
14 7 whether a proposed project using moneys from the grow Iowa
14 8 values fund is practical and shall provide recommendations to
14 9 the grow Iowa values board regarding any moneys proposed to be
14 10 expended from the grow Iowa values fund, with the exception of
14 11 moneys appropriated for purposes of the loan and credit
14 12 guarantee program and regarding whether a proposed project
14 13 under the loan and credit guarantee program is practical. The
14 14 recommendations shall be based on whether the expenditure
14 15 would make the achievement of the goals in accordance with the
14 16 performance measures set out in section 15G.107 more likely.
14 17 The recommendations may include conditions or that a proposed
14 18 expenditure be rejected.
14 19 4. The members of the committee are entitled to receive
14 20 reimbursement for actual expenses incurred while engaged in
14 21 the performance of official duties. A committee member may
14 22 also be eligible to receive compensation as provided in
14 23 section 7E.6.
14 24 Sec. 13. NEW SECTION. 15G.105 GROW IOWA VALUES REVIEW
14 25 COMMISSION.
14 26 1. A grow Iowa values review commission is established
14 27 consisting of three members and is located for administrative
14 28 purposes within the office of the auditor of state. The
14 29 auditor of state shall provide office space, staff assistance,
14 30 and necessary supplies and equipment for the review
14 31 commission. The auditor of state shall budget moneys to pay
14 32 the compensation and expenses of the commission, including the
14 33 actual expenses of the auditor of state incurred while engaged
14 34 in the performance of official commission duties. In
14 35 performing its functions, the review commission is performing
15 1 a public function on behalf of the state and is a public
15 2 instrumentality of the state.
15 3 2. Membership of the review commission shall include the
15 4 auditor of state, one member appointed by the governor subject
15 5 to confirmation by the senate, and one member appointed by the
15 6 legislative council. The members appointed by the governor
15 7 and the legislative council shall possess experience and
15 8 expertise in the field of economics. The appointments shall
15 9 comply with sections 69.16 and 69.16A. The chairperson of the
15 10 review commission shall be the auditor of state. The members
15 11 shall be appointed to three=year staggered terms and the terms
15 12 shall commence and end as provided by section 69.19. If a
15 13 vacancy occurs, a successor shall be appointed in the same
15 14 manner and subject to the same qualifications as the original
15 15 appointment to serve the unexpired term. A majority of the
15 16 review commission constitutes a quorum.
15 17 3. The review commission shall analyze all annual reports
15 18 of the grow Iowa values board for purposes of determining if
15 19 the goals and performance measures set out in section 15G.107
15 20 have been met. By January 1, 2007, the review commission
15 21 shall submit a report to the grow Iowa values board, the
15 22 department, and the general assembly. The report shall
15 23 include findings, itemized by grow Iowa values geographic
15 24 regions, regarding whether the goals and performance measures
15 25 were met. The report shall also include recommendations
15 26 regarding the continuation, elimination, or modification of
15 27 any programs receiving moneys from the grow Iowa values fund
15 28 and whether moneys should continue to be appropriated to and
15 29 from the grow Iowa values fund. The recommendations shall be
15 30 based on whether the goals in accordance with the performance
15 31 measures are being achieved.
15 32 4. The members of the commission, including the auditor of
15 33 state, are entitled to receive reimbursement for actual
15 34 expenses incurred while engaged in the performance of official
15 35 duties. A commission member may also be eligible to receive
16 1 compensation as provided in section 7E.6.
16 2 Sec. 14. NEW SECTION. 15G.106 GROW IOWA VALUES
16 3 GEOGRAPHIC REGIONS.
16 4 For purposes of applying the goals and performance
16 5 measurements, the state shall be divided into five grow Iowa
16 6 values geographic regions. The regions shall be the
16 7 following:
16 8 1. The northwest region shall include the counties of
16 9 Lyon, Osceola, Dickinson, Emmet, Kossuth, Winnebago, Sioux,
16 10 O'Brien, Clay, Palo Alto, Hancock, Plymouth, Cherokee, Buena
16 11 Vista, Pocahontas, Humboldt, Wright, Woodbury, Ida, Sac,
16 12 Calhoun, Webster, and Hamilton.
16 13 2. The northeast region shall include the counties of
16 14 Worth, Mitchell, Howard, Winneshiek, Allamakee, Cerro Gordo,
16 15 Floyd, Chickasaw, Fayette, Clayton, Franklin, Butler, Bremer,
16 16 Hardin, Grundy, Black Hawk, Buchanan, Delaware, Dubuque, Tama,
16 17 Benton, Linn, Jones, and Jackson.
16 18 3. The southeast region shall include the counties of
16 19 Poweshiek, Iowa, Johnson, Cedar, Clinton, Scott, Muscatine,
16 20 Mahaska, Keokuk, Washington, Louisa, Monroe, Wapello,
16 21 Jefferson, Henry, Des Moines, Appanoose, Davis, Van Buren, and
16 22 Lee.
16 23 4. The southwest region shall include the counties of
16 24 Monona, Crawford, Carroll, Greene, Harrison, Shelby, Audubon,
16 25 Guthrie, Pottawattamie, Cass, Adair, Mills, Montgomery, Adams,
16 26 Union, Clarke, Lucas, Fremont, Page, Taylor, Ringgold,
16 27 Decatur, and Wayne.
16 28 5. The central region shall include the counties of Boone,
16 29 Story, Marshall, Dallas, Polk, Jasper, Madison, Warren, and
16 30 Marion.
16 31 Sec. 15. NEW SECTION. 15G.107 GOALS == PERFORMANCE
16 32 MEASURES.
16 33 1. In performing the duties provided in this chapter,
16 34 chapter 15, and chapter 15E, the grow Iowa values board, the
16 35 due diligence committee, the economic development marketing
17 1 board, the grow Iowa values review commission, and the
17 2 department shall achieve the goals of expanding and
17 3 stimulating the state economy, increasing the wealth of
17 4 Iowans, and increasing the population of the state. For
17 5 purposes of this section, "upper midwest region" includes the
17 6 states of Iowa, Kansas, Minnesota, Missouri, Nebraska, North
17 7 Dakota, and South Dakota.
17 8 2. Goal achievement shall be examined on a regional basis
17 9 using the grow Iowa values geographic regions on a statewide
17 10 basis. Family farm performance indicators shall be calculated
17 11 separately. The performance of the grow Iowa values
17 12 geographic regions shall be compared to the performance of the
17 13 state, the upper midwest region, and the United States. The
17 14 baseline year shall be the calendar year 2002. In each grow
17 15 Iowa values geographic region, the goal shall be to increase
17 16 the baseline performance measure of Iowa's gross state product
17 17 at a rate equal to or greater than the national economy.
17 18 3. a. In determining whether the goal of expanding and
17 19 stimulating the state economy has been met, and using the
17 20 calendar year 2002 as a baseline, performance measures shall
17 21 be considered, including but not limited to the following, on
17 22 a statewide basis or of those businesses that receive moneys
17 23 originating from the grow Iowa values fund, as appropriate:
17 24 (1) A net increase in a business's supplier network.
17 25 (2) A net increase in business start=ups.
17 26 (3) A net increase in business expansion.
17 27 (4) A net increase in business modernization.
17 28 (5) A net increase in attracting new businesses to the
17 29 state.
17 30 (6) A net increase in business retention.
17 31 (7) A net increase in job creation and retention.
17 32 (8) A decrease in Iowa of the ratio of the government
17 33 employment as a percentage share of the total employment in
17 34 Iowa at a rate at least equal to the ratio of the upper
17 35 midwest region.
18 1 b. By December 15 of each year, the department shall
18 2 submit a report to the grow Iowa values review commission and
18 3 the grow Iowa values board that identifies information
18 4 pertinent to the performance measures in paragraph "a",
18 5 subparagraphs (3), (4), and (6), that the department gains
18 6 through interviews with businesses in the state that close all
18 7 or a portion of operations in the state. By December 15 of
18 8 each year, based on the same interviews, the department shall
18 9 submit a report to the general assembly providing suggested
18 10 amendments to the Code of Iowa and the Iowa administrative
18 11 code designed to stimulate and expand the state's economy.
18 12 c. By December 15 of each year, the department shall
18 13 submit a report to the grow Iowa values review commission and
18 14 the grow Iowa values board that identifies prospective lost
18 15 business development opportunities information pertinent to
18 16 the performance measures in paragraph "a", subparagraphs (2)
18 17 and (5), which indicate that the state has not been successful
18 18 in the performance measures in paragraph "a", subparagraphs
18 19 (2) and (5).
18 20 d. For purposes of the performance measure in paragraph
18 21 "a", subparagraph (7), the department of economic development,
18 22 in consultation with the department of workforce development
18 23 and the auditor of state, shall determine average annual job
18 24 creation and retention rates based on the ten years prior to
18 25 2003, for the state and the upper midwest region. During the
18 26 fiscal year beginning July 1, 2005, the department of economic
18 27 development shall report the job creation and retention rate
18 28 of those businesses that receive moneys originating from the
18 29 grow Iowa values fund and the job creation and retention rate
18 30 of those businesses that do not receive moneys originating
18 31 from the grow Iowa values fund. The ten=year average annual
18 32 job creation and retention rate shall be compared to the job
18 33 creation and retention rates determined under this paragraph
18 34 for the fiscal year beginning July 1, 2005. The department of
18 35 economic development shall assist the department of workforce
19 1 development in maintaining detailed employment statistics on
19 2 businesses that receive moneys originating from the grow Iowa
19 3 values fund, on businesses that do not receive moneys
19 4 originating from the grow Iowa values fund, and on industries
19 5 in Iowa that those businesses represent. The auditor of state
19 6 shall audit the reliability and validity of the statistics
19 7 compiled pursuant to this paragraph.
19 8 4. In determining whether the goal of increasing the
19 9 wealth of Iowans has been met, the following earning
19 10 performance measures shall be considered:
19 11 a. The per capita personal income in Iowa shall equal or
19 12 exceed the average per capita personal income for the upper
19 13 midwest region.
19 14 b. The average earnings per job in Iowa shall equal or
19 15 exceed the average earnings per job in the upper midwest
19 16 region.
19 17 c. The average manufacturing earnings per employee in Iowa
19 18 shall equal or exceed the average manufacturing earnings per
19 19 employee in the upper midwest region.
19 20 d. The average service earnings per employee in Iowa shall
19 21 equal or exceed the average service earnings per employee in
19 22 the upper midwest region.
19 23 e. The average earnings per employee in the financial,
19 24 insurance, and real estate industries in Iowa shall equal or
19 25 exceed the average earnings per employee in the financial,
19 26 insurance, and real estate industries in the upper midwest
19 27 region.
19 28 5. In determining whether the goal of increasing the
19 29 population of the state has been met, the following
19 30 performance measures shall be considered:
19 31 a. Using the calendar year 2002 as a baseline year, a net
19 32 increase in the retention of Iowa high school graduates that
19 33 are employed in the Iowa workforce following the earning of a
19 34 higher education degree.
19 35 b. The increase in the number of higher education
20 1 graduates living in Iowa.
20 2 Sec. 16. NEW SECTION. 15G.108 GROW IOWA VALUES FUND.
20 3 A grow Iowa values fund is created in the state treasury
20 4 under the control of the grow Iowa values board consisting of
20 5 moneys appropriated to the grow Iowa values board. Moneys in
20 6 the fund are not subject to section 8.33. Notwithstanding
20 7 section 12C.7, interest or earnings on moneys in the fund
20 8 shall be credited to the fund. The fund shall be administered
20 9 by the grow Iowa values board, which shall make expenditures
20 10 from the fund consistent with this chapter and pertinent Acts
20 11 of the general assembly. Any financial assistance provided
20 12 using moneys from the fund may be provided over a period of
20 13 time of more than one year. Payments of interest, repayments
20 14 of moneys loaned pursuant to this chapter, and recaptures of
20 15 grants or loans shall be deposited in the fund.
20 16 Sec. 17. Section 15G.109, Code 2005, is amended by
20 17 striking the section and inserting in lieu thereof the
20 18 following:
20 19 15G.109 ECONOMIC DEVELOPMENT MARKETING BOARD == MARKETING
20 20 STRATEGIES.
20 21 1. a. An economic development marketing board is
20 22 established consisting of seven members and is located for
20 23 administrative purposes within the department. The director
20 24 of the department shall provide office space, staff
20 25 assistance, and necessary supplies and equipment for the
20 26 board. The director shall budget moneys to pay the
20 27 compensation and expenses of the board. In performing its
20 28 functions, the board is performing a public function on behalf
20 29 of the state and is a public instrumentality of the state.
20 30 b. The membership of the board shall consist of seven
20 31 members appointed by the governor, subject to confirmation by
20 32 the senate. Five of the members shall have significant
20 33 demonstrated experience in marketing or advertising. Two
20 34 members of the board shall also be members of the grow Iowa
20 35 values board.
21 1 c. The appointments shall comply with sections 69.16 and
21 2 69.16A.
21 3 d. The chairperson and vice chairperson of the board shall
21 4 be elected by and from the board members. In case of the
21 5 absence or disability of the chairperson and vice chairperson,
21 6 the members of the board shall elect a temporary chairperson
21 7 by a majority vote of those members who are present and
21 8 voting.
21 9 e. The members shall be appointed to three=year staggered
21 10 terms and the terms shall commence and end as provided by
21 11 section 69.19. If a vacancy occurs, a successor shall be
21 12 appointed to serve the unexpired term. A successor shall be
21 13 appointed in the same manner and subject to the same
21 14 qualifications as the original appointment to serve the
21 15 unexpired term.
21 16 f. A majority of the board constitutes a quorum.
21 17 2. The board shall administer and implement the approval
21 18 process for marketing strategies provided in subsection 3.
21 19 3. The economic development marketing board shall accept
21 20 proposals for marketing strategies for purposes of selecting a
21 21 strategy for the department to administer. The marketing
21 22 strategies shall be designed to market Iowa as a lifestyle,
21 23 increase the population of the state, increase the wealth of
21 24 Iowans, and expand and stimulate the state economy. The
21 25 economic development marketing board shall submit a
21 26 recommendation regarding the proposal to the grow Iowa values
21 27 board. In selecting marketing strategies for recommendation,
21 28 the economic development marketing board shall base the
21 29 selection on the goals and performance measures provided in
21 30 section 15G.107. The grow Iowa values board shall either
21 31 approve or deny the recommendation.
21 32 4. The department shall implement and administer the
21 33 marketing strategy approved by the grow Iowa values board as
21 34 provided in subsection 3. The department shall provide the
21 35 economic development marketing board with assistance in
22 1 implementing administrative functions of the board and provide
22 2 technical assistance to the board.
22 3 5. The members of the board are entitled to receive
22 4 reimbursement for actual expenses incurred while engaged in
22 5 the performance of official duties. A board member may also
22 6 be eligible to receive compensation as provided in section
22 7 7E.6.
22 8 Sec. 18. NEW SECTION. 15G.110 FUTURE CONSIDERATION.
22 9 Not later than February 1, 2007, the legislative services
22 10 agency shall prepare and deliver to the secretary of the
22 11 senate and the chief clerk of the house of representatives
22 12 identical bills that repeal the provisions of this chapter.
22 13 It is the intent of the general assembly that either the
22 14 senate or the house of representatives shall bring the bill to
22 15 a vote expeditiously. It is further the intent of the general
22 16 assembly that if the bill is approved by the first house in
22 17 which the bill is considered, the bill shall expeditiously be
22 18 brought to a vote in the second house.
22 19 Sec. 19. 2004 Iowa Acts, First Extraordinary Session,
22 20 chapter 1001, section 43, is amended to read as follows:
22 21 SEC. 43. ADVISORY CAPACITY OF BOARDS. For only the fiscal
22 22 year beginning July 1, 2004, and ending June 30, 2005, the
22 23 establishment and existence of the grow Iowa values board, the
22 24 economic development marketing board, and the loan and credit
22 25 guarantee advisory board, as provided for in 2003 Iowa Acts,
22 26 First Extraordinary Session, chapter 1 (House File 692), are
22 27 validated. However, the boards shall serve only in an
22 28 advisory capacity to the department of economic development.
22 29 The composition of the boards shall consist of the membership
22 30 in existence on June 15, 2004.
22 31 DIVISION III
22 32 APPROPRIATIONS
22 33 Sec. 20. NEW SECTION. 15G.111 APPROPRIATIONS.
22 34 1. For the fiscal year beginning July 1, 2005, and every
22 35 fiscal year thereafter, there is appropriated from the grow
23 1 Iowa values fund created in section 15G.108 to the department
23 2 of economic development four million dollars for purposes of
23 3 implementing and administering the marketing strategies
23 4 approved under section 15G.109.
23 5 2. a. For the fiscal period beginning July 1, 2005, and
23 6 ending June 30, 2007, there is appropriated each fiscal year
23 7 from the grow Iowa values fund created in section 15G.108 to
23 8 the department of economic development forty=nine million
23 9 dollars for programs administered by the department of
23 10 economic development.
23 11 b. For the fiscal year beginning July 1, 2007, and every
23 12 fiscal year thereafter, there is appropriated from the grow
23 13 Iowa values fund created in section 15G.108 to the department
23 14 of economic development fifty=one million nine hundred
23 15 thousand dollars for programs administered by the department
23 16 of economic development.
23 17 c. Each year that moneys are appropriated under this
23 18 subsection, the grow Iowa values board shall allocate a
23 19 percentage of the moneys for each of the following types of
23 20 activities:
23 21 (1) Business start=ups.
23 22 (2) Business expansion.
23 23 (3) Business modernization.
23 24 (4) Business attraction.
23 25 (5) Business retention.
23 26 (6) Marketing.
23 27 d. The department shall require an applicant for moneys
23 28 appropriated under this subsection to include in the
23 29 application a statement regarding the intended return on
23 30 investment. A recipient of moneys appropriated under this
23 31 subsection shall annually submit a statement to the department
23 32 regarding the progress achieved on the intended return on
23 33 investment stated in the application. The department, in
23 34 cooperation with the department of revenue, shall develop a
23 35 method of identifying and tracking each new job created
24 1 through financial assistance from moneys appropriated under
24 2 this subsection.
24 3 e. The department may use moneys appropriated under this
24 4 subsection to procure technical assistance from either the
24 5 public or private sector, for information technology purposes,
24 6 and for rail, air, or river port transportation=related
24 7 purposes. The use of moneys appropriated for rail, air, or
24 8 river port transportation=related purposes must be directly
24 9 related to an economic development project and the moneys must
24 10 be used to leverage other financial assistance moneys.
24 11 f. Of the moneys appropriated under this subsection, the
24 12 department may use one=quarter of one percent for
24 13 administrative purposes.
24 14 g. The grow Iowa values board is required to approve or
24 15 deny applications for financial assistance provided with
24 16 moneys appropriated under this subsection.
24 17 h. In evaluating applicants for moneys appropriated under
24 18 this subsection, the department and the grow Iowa values board
24 19 shall give preference to an applicant that meets one or more
24 20 of the following criteria:
24 21 (1) The applicant has not closed or reduced its operation
24 22 in one area of the state and relocated substantially the same
24 23 operation in a different area of the state. This criterion
24 24 does not prohibit a business from expanding its operation in a
24 25 community if existing operations of a similar nature in the
24 26 state are not closed or substantially reduced. This criterion
24 27 shall not apply to start=up businesses.
24 28 (2) The applicant has complied with worker safety and
24 29 environmental laws during the five years prior to the
24 30 application date.
24 31 (3) The applicant provides employees with child care on=
24 32 site or provides child care financial assistance that is in
24 33 addition to any child care=related benefits available to
24 34 employees through a dependent care flexible spending account.
24 35 (4) The applicant intends to use a portion or all of the
25 1 moneys awarded for purposes of building physical
25 2 infrastructure that is energy efficient.
25 3 i. Moneys appropriated under this subsection and awarded
25 4 as financial assistance may be used for private sector
25 5 physical infrastructure purposes.
25 6 j. For purposes of awarding moneys appropriated under this
25 7 subsection, the department shall adopt rules pursuant to
25 8 chapter 17A relating to all of the following:
25 9 (1) Minimum wage thresholds.
25 10 (2) Business plan requirements.
25 11 (3) Contract agreement requirements, including penalty
25 12 provisions providing for the repayment of financial assistance
25 13 in the event of a violation of the agreement.
25 14 k. Of the moneys appropriated pursuant to this subsection,
25 15 seven hundred fifty thousand dollars shall be transferred to
25 16 the department of natural resources for purposes of providing
25 17 matching grants to businesses designed to encourage the
25 18 utilization of ethanol, biodiesel, and other biofuels.
25 19 3. For the fiscal year beginning July 1, 2005, and every
25 20 fiscal year thereafter, there is appropriated from the grow
25 21 Iowa values fund created in section 15G.108 to the department
25 22 of economic development two million seven hundred thousand
25 23 dollars for deposit in the loan and credit guarantee fund
25 24 created in section 15E.227.
25 25 4. a. For the fiscal period beginning July 1, 2005, and
25 26 ending June 30, 2007, there is appropriated each fiscal year
25 27 from the grow Iowa values fund created in section 15G.108 to
25 28 the department of economic development ten million dollars for
25 29 financial assistance for institutions of higher learning under
25 30 the control of the state board of regents and for accredited
25 31 private institutions as defined in section 261.9 for
25 32 accelerating new business creation, a national center for food
25 33 safety and security, innovation accelerators and business
25 34 parks, incubator facilities, transgenic animal facilities,
25 35 transgenic plant facilities, and bioanalytical, biochemical,
26 1 chemical, and microbiological support facilities.
26 2 b. For the fiscal year beginning July 1, 2005, and every
26 3 fiscal year thereafter, there is appropriated from the grow
26 4 Iowa values fund created in section 15G.108 to the Iowa state
26 5 university of science and technology one million dollars for
26 6 small business development centers, the science and technology
26 7 research park, and the institute for physical research.
26 8 c. For the fiscal year beginning July 1, 2005, and every
26 9 fiscal year thereafter, there is appropriated from the grow
26 10 Iowa values fund created in section 15G.108 to the state
26 11 university of Iowa one million dollars for the university of
26 12 Iowa research park and for the advanced drug development
26 13 program at the Oakdale research park.
26 14 d. For the fiscal year beginning July 1, 2005, and every
26 15 fiscal year thereafter, there is appropriated from the grow
26 16 Iowa values fund created in section 15G.108 to the university
26 17 of northern Iowa one million dollars for the metal casting
26 18 institute and the institute of decision making.
26 19 5. For the fiscal year beginning July 1, 2005, and every
26 20 fiscal year thereafter, there is appropriated from the grow
26 21 Iowa values fund created in section 15G.108 to the general
26 22 fund of the state eight hundred thousand dollars for payment
26 23 of tax credits approved pursuant to section 404A.4 for
26 24 projects located in certified cultural districts.
26 25 6. For the fiscal year beginning July 1, 2005, and every
26 26 fiscal year thereafter, there is appropriated from the grow
26 27 Iowa values fund created in section 15G.108 to the department
26 28 of economic development five hundred thousand dollars for
26 29 purposes of providing financial assistance for projects in
26 30 targeted state parks and destination parks. The department of
26 31 natural resources, in cooperation with the grow Iowa values
26 32 board, shall submit a plan to the department of economic
26 33 development for the expenditure of moneys appropriated under
26 34 this subsection. The plan shall focus on improving state
26 35 parks and destination parks for economic development purposes.
27 1 Based on the report submitted, the department of economic
27 2 development shall provide financial assistance to the
27 3 department of natural resources for support of state parks and
27 4 destination parks.
27 5 7. For the fiscal year beginning July 1, 2005, and every
27 6 fiscal year thereafter, there is appropriated from the grow
27 7 Iowa values fund created in section 15G.108 to the office of
27 8 the treasurer of state five hundred thousand dollars for
27 9 deposit in the Iowa cultural trust fund created in section
27 10 303A.4.
27 11 8. For the fiscal year beginning July 1, 2005, and every
27 12 fiscal year thereafter, there is appropriated from the grow
27 13 Iowa values fund created in section 15G.108 to the department
27 14 of economic development eight million five hundred thousand
27 15 dollars for deposit into the workforce training and economic
27 16 development funds of the community colleges pursuant to
27 17 section 260C.18A.
27 18 9. For the fiscal year beginning July 1, 2005, and every
27 19 fiscal year thereafter, there is appropriated from the grow
27 20 Iowa values fund created in section 15G.108 to the department
27 21 of economic development five hundred thousand dollars for
27 22 endow Iowa grants to lead philanthropic entities pursuant to
27 23 section 15E.304.
27 24 10. For the fiscal year beginning July 1, 2005, and every
27 25 fiscal year thereafter, there is appropriated from the grow
27 26 Iowa values fund created in section 15G.108 to the general
27 27 fund of the state five hundred thousand dollars for payment of
27 28 endow Iowa tax credits approved pursuant to section 15E.305.
27 29 11. a. For the fiscal period beginning July 1, 2005, and
27 30 ending June 30, 2007, there is appropriated each fiscal year
27 31 from the grow Iowa values fund created in section 15G.108 to
27 32 the department of economic development five million dollars
27 33 for providing economic development region financial assistance
27 34 under section 15E.232, subsections 3, 4, 5, and 6, and under
27 35 section 15E.233.
28 1 b. For the fiscal year beginning July 1, 2007, and every
28 2 fiscal year thereafter, there is appropriated from the grow
28 3 Iowa values fund created in section 15G.108 to the department
28 4 of economic development twelve million five hundred thousand
28 5 dollars for providing economic development region financial
28 6 assistance under section 15E.232, subsections 3, 4, 5, and 6,
28 7 and under section 15E.233.
28 8 c. The entities required to approve applications for
28 9 financial assistance from moneys appropriated under this
28 10 subsection shall be as follows:
28 11 (1) For projects totaling one million dollars or less, the
28 12 department of economic development shall approve, deny, or
28 13 defer the application.
28 14 (2) For projects totaling more than one million dollars,
28 15 the grow Iowa values board shall approve, deny, or defer the
28 16 application.
28 17 12. a. For the fiscal period beginning July 1, 2005, and
28 18 ending June 30, 2007, there is appropriated each fiscal year
28 19 from the grow Iowa values fund created in section 15G.108 to
28 20 the general fund of the state two million five hundred
28 21 thousand dollars for payment of economic development region
28 22 revolving fund contribution tax credits approved pursuant to
28 23 section 15E.232.
28 24 b. For the fiscal year beginning July 1, 2007, and every
28 25 fiscal year thereafter, there is appropriated from the grow
28 26 Iowa values fund created in section 15G.108 to the general
28 27 fund of the state four million dollars for payment of economic
28 28 development region revolving fund contribution tax credits
28 29 approved pursuant to section 15E.232.
28 30 13. Notwithstanding section 8.33, moneys that remain
28 31 unexpended at the end of a fiscal year shall not revert to any
28 32 fund but shall remain available for expenditure for the
28 33 designated purposes during the succeeding fiscal year.
28 34 DIVISION IV
28 35 LOAN AND CREDIT GUARANTEE PROGRAM
29 1 Sec. 21. Section 15E.223, subsection 4, Code 2005, is
29 2 amended to read as follows:
29 3 4. "Targeted industry business" means an existing or
29 4 proposed business entity, including an emerging small business
29 5 or qualified business which is operated for profit and which
29 6 has a primary business purpose of doing business in at least
29 7 one of the targeted industries designated by the department
29 8 which include life sciences, software and information
29 9 technology, advanced manufacturing, value=added agriculture,
29 10 and any other industry designated as a targeted industry by
29 11 the department loan and credit guarantee advisory board.
29 12 Sec. 22. Section 15E.224, subsections 1, 3, 5, and 7, Code
29 13 2005, are amended to read as follows:
29 14 1. The department, with the advice of the loan and credit
29 15 guarantee advisory board, shall establish and administer a
29 16 loan and credit guarantee program. The department, pursuant
29 17 to agreements with financial institutions, shall provide loan
29 18 and credit guarantees, or other forms of credit guarantees for
29 19 qualified businesses and targeted industry businesses for
29 20 eligible project costs. A loan or credit guarantee provided
29 21 under the program may stand alone or may be used in
29 22 conjunction with or to enhance other loans or credit
29 23 guarantees offered by private, state, or federal entities.
29 24 The department may purchase insurance to cover defaulted loans
29 25 meeting the requirements of the program. However, the
29 26 department shall not in any manner directly or indirectly
29 27 pledge the credit of the state. Eligible project costs
29 28 include expenditures for productive equipment and machinery,
29 29 working capital for operations and export transactions,
29 30 research and development, marketing, and such other costs as
29 31 the department may so designate.
29 32 3. In administering the program, the department shall
29 33 consult and cooperate with financial institutions in this
29 34 state and with the loan and credit guarantee board.
29 35 Administrative procedures and application procedures, as
30 1 practicable, shall be responsive to the needs of qualified
30 2 businesses, targeted industry businesses, and financial
30 3 institutions, and shall be consistent with prudent investment
30 4 and lending practices and criteria.
30 5 5. The department, with the advice of the loan and credit
30 6 guarantee board, shall adopt a loan or credit guarantee
30 7 application procedure for a financial institution on behalf of
30 8 a qualified business or targeted industry business.
30 9 7. The department, with the advice of the loan and credit
30 10 guarantee board, may adopt loan and credit guarantee
30 11 application procedures that allow a qualified business or
30 12 targeted industry business to apply directly to the department
30 13 for a preliminary guarantee commitment. A preliminary
30 14 guarantee commitment may be issued by the department subject
30 15 to the qualified business or targeted industry business
30 16 securing a commitment for financing from a financial
30 17 institution. The application procedures shall specify the
30 18 process by which a financial institution may obtain a final
30 19 loan and credit guarantee.
30 20 Sec. 23. Section 15E.225, subsections 1 and 2, Code 2005,
30 21 are amended to read as follows:
30 22 1. When entering into a loan or credit guarantee
30 23 agreement, the department, with the advice of the loan and
30 24 credit guarantee board, shall establish fees and other terms
30 25 for participation in the program by qualified businesses and
30 26 targeted industry businesses.
30 27 2. The department, with due regard for the possibility of
30 28 losses and administrative costs and with the advice of the
30 29 loan and credit guarantee board, shall set fees and other
30 30 terms at levels sufficient to assure that the program is self=
30 31 financing.
30 32 Sec. 24. NEW SECTION. 15E.226 LOAN AND CREDIT GUARANTEE
30 33 ADVISORY BOARD.
30 34 A loan and credit guarantee advisory board is established
30 35 consisting of seven members appointed by the governor, subject
31 1 to confirmation by the senate. The advisory board shall
31 2 provide the department with technical advice regarding the
31 3 administration of the loan and credit guarantee program,
31 4 including the adoption of administrative rules pursuant to
31 5 chapter 17A. The advisory board shall review and provide
31 6 recommendations regarding all applications under the program.
31 7 Members of the advisory board are entitled to receive
31 8 reimbursement for actual expenses incurred while engaged in
31 9 the performance of official duties. Advisory board members
31 10 may also be eligible to receive compensation as provided in
31 11 section 7E.6. The director of the department shall budget
31 12 moneys to pay the compensation and expenses of the advisory
31 13 board. The provisions of this section relating to the
31 14 adoption of administrative rules shall be construed narrowly.
31 15 Sec. 25. Section 15E.227, subsection 2, Code 2005, is
31 16 amended by adding the following new paragraph:
31 17 NEW PARAGRAPH. c. Moneys appropriated from the grow Iowa
31 18 values fund created in section 15G.108.
31 19 DIVISION V
31 20 ECONOMIC DEVELOPMENT REGIONS
31 21 Sec. 26. NEW SECTION. 15E.231 ECONOMIC DEVELOPMENT
31 22 REGIONS.
31 23 1. In order for an economic development region to receive
31 24 moneys from the grow Iowa values fund created in section
31 25 15G.108, the organization of an economic development region
31 26 must be approved by the grow Iowa values board established in
31 27 section 15G.102. The board shall approve an economic
31 28 development region that meets the following criteria:
31 29 a. The region consists of not less than three contiguous
31 30 counties. Upon the recommendation of the director of the
31 31 department of economic development, this criterion may be
31 32 waived by the board.
31 33 b. The region establishes a single, focused economic
31 34 development effort, approved by the board, that shall include
31 35 the development of a regional development plan and regional
32 1 marketing strategies. Regional marketing strategies must be
32 2 focused on marketing the region collectively.
32 3 2. An approved economic development region may create an
32 4 economic development region revolving fund as provided in
32 5 section 15E.232.
32 6 Sec. 27. NEW SECTION. 15E.232 ECONOMIC DEVELOPMENT
32 7 REGION REVOLVING FUNDS == TAX CREDITS.
32 8 1. An economic development region approved pursuant to
32 9 section 15E.231 may create an economic development region
32 10 revolving fund.
32 11 2. a. A nongovernmental entity making a contribution to
32 12 an economic development region revolving fund, except those
32 13 described in paragraph "b", may claim a tax credit equal to
32 14 twenty percent of the amount contributed to the revolving
32 15 fund. The tax credit shall be allowed against taxes imposed
32 16 in chapter 422, divisions II, III, and V, and in chapter 432,
32 17 and against the moneys and credits tax imposed in section
32 18 533.24. An individual may claim under this subsection the tax
32 19 credit of a partnership, limited liability company, S
32 20 corporation, estate, or trust electing to have income taxed
32 21 directly to the individual. The amount claimed by the
32 22 individual shall be based upon the pro rata share of the
32 23 individual's earnings from the partnership, limited liability
32 24 company, S corporation, estate, or trust. Any tax credit in
32 25 excess of the taxpayer's liability for the tax year may be
32 26 credited to the tax liability for the following seven years or
32 27 until depleted, whichever occurs first. A tax credit shall
32 28 not be carried back to a tax year prior to the tax year in
32 29 which the taxpayer redeems the tax credit. A tax credit under
32 30 this section is not transferable.
32 31 b. Subject to the provisions of paragraph "c", an
32 32 organization exempt from federal income tax pursuant to
32 33 section 501(c) of the Internal Revenue Code making a
32 34 contribution to an economic development region revolving fund,
32 35 shall be paid from the general fund of the state an amount
33 1 equal to twenty percent of such contributed amount within
33 2 thirty days after the end of the fiscal year during which the
33 3 contribution was made.
33 4 c. The total amount of tax credits and payments to
33 5 contributors, referred to as the credit amount, authorized
33 6 during a fiscal year shall not exceed four million dollars
33 7 plus any unused credit amount carried over from previous
33 8 years. Any credit amount which remains unused for a fiscal
33 9 year may be carried forward to the succeeding fiscal year.
33 10 The maximum credit amount that may be authorized in a fiscal
33 11 year for contributions made to a specific economic development
33 12 region revolving fund is equal to four million dollars plus
33 13 any unused credit amount carried over from previous years
33 14 divided by the number of economic development region revolving
33 15 funds existing in the state.
33 16 d. The department of economic development shall administer
33 17 the authorization of tax credits under this section and
33 18 payments to contributors described in paragraph "b" and shall,
33 19 in cooperation with the department of revenue, adopt rules
33 20 pursuant to chapter 17A necessary for the administration of
33 21 this section.
33 22 3. An approved economic development region may apply for
33 23 financial assistance from the grow Iowa values fund to assist
33 24 with physical infrastructure needs related to a specific
33 25 business partner. In order to receive financial assistance
33 26 pursuant to this subsection, the economic development region
33 27 must demonstrate all of the following:
33 28 a. The ability to provide matching moneys on a one to one
33 29 basis.
33 30 b. The commitment of the specific business partner.
33 31 c. That all other funding alternatives have been
33 32 exhausted.
33 33 4. An approved economic development region may apply for
33 34 financial assistance from the grow Iowa values fund to assist
33 35 an existing business located in the economic development
34 1 region impacted by business consolidation actions. Business
34 2 consolidation actions include a substantial or total closure
34 3 of an existing business due to consolidating the existing
34 4 business out of state. In order to receive financial
34 5 assistance pursuant to this subsection, the economic
34 6 development region must demonstrate the ability to provide
34 7 matching moneys on a one=to=one basis.
34 8 5. An approved economic development region may apply for
34 9 financial assistance from the grow Iowa values fund to
34 10 implement economic development initiatives unique to the
34 11 region. In order to receive financial assistance pursuant to
34 12 this subsection, the economic development region must
34 13 demonstrate the ability to provide matching moneys on a one=
34 14 to=one basis.
34 15 6. An approved economic development region may apply for
34 16 financial assistance from the grow Iowa values fund to
34 17 implement innovative initiatives that do not qualify for
34 18 assistance under subsection 5.
34 19 7. The board may establish and administer a regional
34 20 economic development revenue sharing pilot project for one or
34 21 more regions. The board shall take into consideration the
34 22 geographical dispossession of the pilot projects. The
34 23 department of economic development shall provide technical
34 24 assistance to the regions participating in a pilot project.
34 25 8. Financial assistance under subsections 3, 4, 5, and 6
34 26 and section 15E.233 shall be limited to a total of five
34 27 million dollars each fiscal year for the fiscal period
34 28 beginning July 1, 2005, and ending June 30, 2007, and to a
34 29 total of twelve million five hundred thousand dollars for the
34 30 fiscal year beginning July 1, 2007, and each fiscal year
34 31 thereafter.
34 32 Sec. 28. NEW SECTION. 15E.233 ECONOMICALLY ISOLATED
34 33 AREAS.
34 34 1. An approved economic development region may apply to
34 35 the grow Iowa values board for approval to be designated as an
35 1 economically isolated area based on criteria as determined by
35 2 the board. An economically isolated area must consist of at
35 3 least one county meeting the county distress criteria provided
35 4 in section 15E.194. The board shall approve no more than five
35 5 regions as economically isolated areas.
35 6 2. An approved economically isolated area may apply to the
35 7 department of economic development for financial assistance
35 8 from the grow Iowa values fund of up to seven hundred fifty
35 9 thousand dollars over a five=year period for purposes of
35 10 economic development=related marketing assistance for the
35 11 area. In order to receive financial assistance pursuant to
35 12 this subsection, the economically isolated area must
35 13 demonstrate the ability to provide matching moneys on a one=
35 14 to=one basis.
35 15 Sec. 29. NEW SECTION. 422.11K ECONOMIC DEVELOPMENT
35 16 REGION REVOLVING FUND TAX CREDIT.
35 17 The taxes imposed under this division, less the credits
35 18 allowed under sections 422.12 and 422.12B, shall be reduced by
35 19 an economic development region revolving fund contribution tax
35 20 credit authorized pursuant to section 15E.232.
35 21 Sec. 30. Section 422.33, Code 2005, is amended by adding
35 22 the following new subsection:
35 23 NEW SUBSECTION. 17. The taxes imposed under this division
35 24 shall be reduced by an economic development region revolving
35 25 fund contribution tax credit authorized pursuant to section
35 26 15E.232.
35 27 Sec. 31. Section 422.60, Code 2005, is amended by adding
35 28 the following new subsection:
35 29 NEW SUBSECTION. 9. The taxes imposed under this division
35 30 shall be reduced by an economic development region revolving
35 31 fund contribution tax credit authorized pursuant to section
35 32 15E.232.
35 33 Sec. 32. NEW SECTION. 432.12F ECONOMIC DEVELOPMENT
35 34 REGION REVOLVING FUND CONTRIBUTION TAX CREDITS.
35 35 The tax imposed under this chapter shall be reduced by an
36 1 economic development region tax credit authorized pursuant to
36 2 section 15E.232.
36 3 Sec. 33. Section 533.24, Code 2005, is amended by adding
36 4 the following new subsection:
36 5 NEW SUBSECTION. 6. The moneys and credits tax imposed
36 6 under this section shall be reduced by an economic development
36 7 region revolving fund contribution tax credit authorized
36 8 pursuant to section 15E.232.
36 9 DIVISION VI
36 10 CULTURAL DISTRICTS
36 11 Sec. 34. NEW SECTION. 303.3B CULTURAL DISTRICTS.
36 12 1. The department of cultural affairs shall establish and
36 13 administer a cultural district certification program. The
36 14 program shall encourage the growth of communities through the
36 15 development of areas within a city or county for public and
36 16 private uses related to cultural purposes.
36 17 2. A city or county may create and designate a cultural
36 18 district subject to certification by the department of
36 19 cultural affairs, in consultation with the department of
36 20 economic development. A cultural district shall consist of a
36 21 well=defined, compact area that includes both residential and
36 22 commercial property. A cultural district certification shall
36 23 remain in effect for ten years following the date of
36 24 certification. Two or more cities or counties may apply
36 25 jointly for certification of a district that extends across a
36 26 common boundary. Through the adoption of administrative
36 27 rules, the department of cultural affairs shall develop a
36 28 certification application for use in the certification
36 29 process. The provisions of this subsection relating to the
36 30 adoption of administrative rules shall be construed narrowly.
36 31 3. The department of cultural affairs shall encourage
36 32 development projects and activities located in certified
36 33 cultural districts through incentives under cultural grant
36 34 programs pursuant to section 303.3, chapter 303A, and any
36 35 other grant programs.
37 1 DIVISION VII
37 2 REHABILITATION PROJECT TAX CREDITS
37 3 Sec. 35. Section 404A.4, subsection 4, Code 2005, is
37 4 amended to read as follows:
37 5 4. The total amount of tax credits that may be approved
37 6 for a fiscal year under this chapter shall not exceed two
37 7 million four hundred thousand dollars. For the fiscal years
37 8 beginning July 1, 2005, and July 1, 2006 and every fiscal year
37 9 thereafter, an additional five eight hundred thousand dollars
37 10 of tax credits may be approved each fiscal year for purposes
37 11 of projects located in cultural and entertainment districts
37 12 certified pursuant to section 303.3B. Any of the additional
37 13 tax credits allocated for projects located in certified
37 14 cultural and entertainment districts that are not approved
37 15 during a fiscal year may be carried over to the succeeding
37 16 fiscal year. The department of cultural affairs shall
37 17 establish by rule the procedures for the application, review,
37 18 selection, and awarding of certifications of completion. The
37 19 departments of economic development, cultural affairs, and
37 20 revenue shall each adopt rules to jointly administer this
37 21 subsection and shall provide by rule for the method to be used
37 22 to determine for which fiscal year the tax credits are
37 23 available.
37 24 EXPLANATION
37 25 This bill relates to economic development activities.
37 26 DIVISION I == This division of the bill relates to the
37 27 issuance of bonds to create revenue for the grow Iowa values
37 28 fund.
37 29 The division provides that, after $60 million of gambling
37 30 revenues are deposited in the general fund of the state, after
37 31 $15 million of gambling revenues are deposited in the vision
37 32 Iowa fund, and after $5 million of gambling revenues are
37 33 deposited in the school infrastructure fund, the next $106.7
37 34 million of gambling revenues shall be deposited in the grow
37 35 Iowa values fund for the fiscal year beginning July 1, 2007,
38 1 and for each fiscal year through the fiscal year beginning
38 2 July 1, 2024. For each fiscal year thereafter, the next $89.4
38 3 million of gambling revenues shall be deposited in the grow
38 4 Iowa values fund.
38 5 The division allows the treasurer of state to issue bonds
38 6 of the state for the purpose of providing a portion of the
38 7 funding for the grow Iowa values fund. The division provides
38 8 that the treasurer of state may issue bonds in principal
38 9 amounts which do not exceed, in the aggregate and excluding
38 10 refunding bonds, $210 million to provide funds for the Iowa
38 11 values fund, to provide for any capitalized interest on the
38 12 bonds determined by the treasurer of state to be appropriate,
38 13 to provide for the establishment of reserves to secure the
38 14 bonds, and to provide for the payment of the costs of issuance
38 15 of the bonds, other expenditures of the treasurer of state
38 16 incident to and necessary or convenient to carry out the bond
38 17 issue for the fund, and all other expenditures of the board
38 18 necessary or convenient to administer the fund. The division
38 19 provides that the bonds are investment securities and
38 20 negotiable instruments within the meaning of and for purposes
38 21 of the uniform commercial code.
38 22 The division provides the bonds are payable solely and only
38 23 out of the moneys, assets, or revenues of the grow Iowa values
38 24 fund and any bond reserve funds. The division provides that
38 25 the treasurer of state shall not pledge the credit or taxing
38 26 power of this state or any political subdivision of this state
38 27 or make the bonds issued payable out of any moneys except
38 28 those in the grow Iowa values fund.
38 29 The division provides for the holding of proceeds of bonds
38 30 issued by the treasurer of state and not required for
38 31 immediate disbursement. The division provides for the form
38 32 the bonds shall take. The division provides for persons
38 33 authorized to invest in the bonds, the manner in which the
38 34 bonds shall be authorized, and that the authorization does not
38 35 need to be recorded to be valid and binding. The division
39 1 provides that the bonds are declared to be issued for a
39 2 general public and governmental purpose and all bonds issued
39 3 shall be exempt from taxation by the state of Iowa and the
39 4 interest on the bonds shall be exempt from the state income
39 5 tax and the state inheritance and estate tax. The division
39 6 allows, subject to the terms of any bond documents, moneys in
39 7 the grow Iowa values fund to be expended for administration
39 8 expenses.
39 9 The division allows the treasurer of state to issue bonds
39 10 for the purpose of refunding any bonds issued provided that
39 11 all refunding bonds are issued and secured and subject to the
39 12 provisions and in the same manner and to the same extent as
39 13 other bonds issued.
39 14 The division allows the treasurer of state to establish
39 15 such accounts within the grow Iowa values fund as may be
39 16 appropriate, including debt service accounts for the purpose
39 17 of paying the principal of, redemption premium, if any, and
39 18 interest on bonds payable therefrom. The division provides
39 19 that moneys in the debt service accounts shall not be subject
39 20 to appropriation for any other purpose by the general
39 21 assembly. The division allows the treasurer of state to
39 22 create and establish one or more special funds, to be known as
39 23 "bond reserve funds", to secure one or more issues of bonds
39 24 issued.
39 25 The division provides that bonds issued are not debts of
39 26 the state, or of any political subdivision of the state, and
39 27 do not constitute a pledge of the faith and credit of the
39 28 state or a charge against the general credit or general fund
39 29 of the state. The division provides for the liberal
39 30 construction of the bonding provisions.
39 31 DIVISION II == This division of the bill creates the grow
39 32 Iowa values board and fund.
39 33 The division creates a grow Iowa values board with 11
39 34 voting members appointed by the governor and with four ex
39 35 officio legislative members. The division provides various
40 1 background criteria for voting board members. The division
40 2 provides that the board shall receive advice and
40 3 recommendations from the due diligence committee, the economic
40 4 development marketing board, and the grow Iowa values review
40 5 commission; assist the department of economic development in
40 6 implementing programs and activities in a manner designed to
40 7 achieve the goals set out in the bill; submit annual reports
40 8 to the general assembly regarding activities during the prior
40 9 year; and adopt administrative rules.
40 10 The division creates a five=member due diligence committee
40 11 consisting of voting members of the grow Iowa values board
40 12 elected annually by the voting membership. The division
40 13 provides that the committee shall determine whether a proposed
40 14 project using moneys from the grow Iowa values fund is
40 15 practical and shall provide recommendations to the grow Iowa
40 16 values board regarding any moneys proposed to be expended from
40 17 the grow Iowa values fund, with the exception of moneys
40 18 appropriated for purposes of the loan and credit guarantee
40 19 program. The division provides that the recommendations shall
40 20 be based on whether the expenditure would make the achievement
40 21 of the goals in accordance with the performance measures set
40 22 out in the bill more likely.
40 23 The division creates a three=member grow Iowa values review
40 24 commission consisting of the auditor of state, one member
40 25 appointed by the governor, and one member appointed by the
40 26 legislative council. The division provides that the
40 27 commission shall analyze all annual reports of the grow Iowa
40 28 values board for purposes of determining if the goals and
40 29 performance measures set out in the bill have been met. By
40 30 January 1, 2007, the commission shall submit a report to the
40 31 grow Iowa values board, the department of economic
40 32 development, and the general assembly which shall include a
40 33 recommendation regarding the continuation, elimination, or
40 34 modification of any programs receiving moneys from the grow
40 35 Iowa values fund and whether any moneys should continue to be
41 1 appropriated to and from the fund.
41 2 For purposes of applying the goals and performance
41 3 measures, the division divides the state into five grow Iowa
41 4 values geographic regions.
41 5 The division provides goals for the grow Iowa values board,
41 6 the due diligence committee, the economic development
41 7 marketing board, the grow Iowa values review commission, and
41 8 the department of expanding and stimulating the state economy,
41 9 increasing the wealth of Iowans, and increasing the population
41 10 of the state. The division provides that goal achievement
41 11 shall be examined on a regional basis and that performance of
41 12 the grow Iowa values geographic regions shall be compared to
41 13 the performance of the state, the upper midwest region, and
41 14 the United States. The division defines performance measures
41 15 to be used in determining achievement of each of the three
41 16 goals.
41 17 The division creates the grow Iowa values fund under the
41 18 control of the grow Iowa values board and consisting of moneys
41 19 appropriated to the fund.
41 20 The division creates an economic development marketing
41 21 board consisting of seven members appointed by the governor.
41 22 The division provides that the board shall accept proposals
41 23 for marketing strategies designed to market Iowa as a
41 24 lifestyle, increase the population of the state, increase the
41 25 wealth of Iowans, and expand and stimulate the state economy.
41 26 The division provides that the board shall recommend marketing
41 27 strategies to the grow Iowa values board for approval. The
41 28 division requires the department of economic development to
41 29 implement and administer the marketing strategies approved by
41 30 the board.
41 31 The division requires the legislative services agency, not
41 32 later than February 1, 2007, to prepare and deliver identical
41 33 bills that repeal the provisions of Code chapter 15G relating
41 34 to the grow Iowa values board and fund. The division states
41 35 that it is the intent of the general assembly that such bills
42 1 be considered by the general assembly in an expeditious
42 2 manner.
42 3 Many of the provisions in this division were previously
42 4 enacted in 2003 and then stricken pursuant to Rants v.
42 5 Vilsack, 684 N.W.2d 193. In 2004, legislation was enacted
42 6 validating the establishment and existence of the grow Iowa
42 7 values board, the economic development marketing board, and
42 8 the loan and credit guarantee advisory board. The 2004
42 9 legislation also provided for the composition of the boards to
42 10 remain the same, but provided that the boards would serve only
42 11 in an advisory capacity to the department of economic
42 12 development. This division eliminates the provision of the
42 13 2004 legislation requiring that the boards serve only in an
42 14 advisory capacity.
42 15 DIVISION III == This division of the bill appropriates
42 16 moneys from the grow Iowa values fund to various entities.
42 17 For the fiscal year beginning July 1, 2005, and every
42 18 fiscal year thereafter, the division appropriates to the
42 19 department of economic development $4 million for purposes of
42 20 implementing and administering the marketing strategies
42 21 approved by the grow Iowa values board.
42 22 For the fiscal period beginning July 1, 2005, and ending
42 23 June 30, 2007, the division appropriates each fiscal year to
42 24 the department of economic development $49 million for
42 25 programs administered by the department of economic
42 26 development. For the fiscal year beginning July 1, 2007, and
42 27 every fiscal year thereafter, the division appropriates to the
42 28 department of economic development $51.9 million for programs
42 29 administered by the department of economic development. The
42 30 division provides for the allocation of moneys appropriated
42 31 for programs administered by the department, for the use of
42 32 one=quarter of 1 percent of the moneys appropriated to be used
42 33 by the department for administrative purposes, for
42 34 preferential treatment to be given to applications for
42 35 financial assistance that meet certain criteria, and for use
43 1 of such moneys by recipients for private sector physical
43 2 infrastructure purposes.
43 3 For the fiscal year beginning July 1, 2005, and every
43 4 fiscal year thereafter, the division appropriates to the
43 5 department of economic development $2.7 million for deposit in
43 6 the loan and credit guarantee fund.
43 7 For the fiscal period beginning July 1, 2005, and ending
43 8 June 30, 2007, the division appropriates each fiscal year to
43 9 the department of economic development $10 million for
43 10 financial assistance for institutions of higher learning under
43 11 the control of the state board of regents and for accredited
43 12 private institutions for accelerating new business creation, a
43 13 national center for food safety and security, innovation
43 14 accelerators and business parks, incubator facilities,
43 15 transgenic animal facilities, transgenic plant facilities, and
43 16 bioanalytical, biochemical, chemical, and microbiological
43 17 support facilities. For the fiscal year beginning July 1,
43 18 2005, and every fiscal year thereafter, the division
43 19 appropriates to the Iowa state university of science and
43 20 technology $1 million for small business development centers,
43 21 the science and technology research park, and the institute
43 22 for physical research. For the fiscal year beginning July 1,
43 23 2005, and every fiscal year thereafter, the division
43 24 appropriates to the state university of Iowa $1 million for
43 25 the university of Iowa research park and for the advanced drug
43 26 development program at the Oakdale research park. For the
43 27 fiscal year beginning July 1, 2005, and every fiscal year
43 28 thereafter, the division appropriates to the university of
43 29 northern Iowa $1 million for the metal casting institute and
43 30 the institute of decision making.
43 31 For the fiscal year beginning July 1, 2005, and every
43 32 fiscal year thereafter, the division appropriates to the
43 33 general fund of the state $800,000 for payment of tax credits
43 34 approved for projects located in certified cultural districts.
43 35 For the fiscal year beginning July 1, 2005, and every
44 1 fiscal year thereafter, the division appropriates to the
44 2 department of economic development $500,000 for purposes of
44 3 providing financial assistance for projects in targeted state
44 4 parks and destination parks.
44 5 For the fiscal year beginning July 1, 2005, and every
44 6 fiscal year thereafter, the division appropriates to the
44 7 office of the treasurer of state $500,000 for deposit in the
44 8 Iowa cultural trust fund.
44 9 For the fiscal year beginning July 1, 2005, and every
44 10 fiscal year thereafter, the division appropriates to the
44 11 department of economic development $8.5 million for deposit
44 12 into the workforce training and economic development funds of
44 13 the community colleges.
44 14 For the fiscal year beginning July 1, 2005, and every
44 15 fiscal year thereafter, the division appropriates to the
44 16 department of economic development $500,000 for endow Iowa
44 17 grants to lead philanthropic entities.
44 18 For the fiscal year beginning July 1, 2005, and every
44 19 fiscal year thereafter, the division appropriates to the
44 20 general fund of the state $500,000 for payment of endow Iowa
44 21 tax credits.
44 22 For the fiscal period beginning July 1, 2005, and ending
44 23 June 30, 2007, the division appropriates each fiscal year to
44 24 the department of economic development $5 million for
44 25 providing economic development region financial assistance.
44 26 For the fiscal year beginning July 1, 2007, and every fiscal
44 27 year thereafter, the division appropriates to the department
44 28 of economic development $12.5 million for providing economic
44 29 development region financial assistance.
44 30 For the fiscal period beginning July 1, 2005, and ending
44 31 June 30, 2007, the division appropriates each fiscal year to
44 32 the general fund of the state $2.5 million for payment of
44 33 economic development region revolving fund contribution tax
44 34 credits. For the fiscal year beginning July 1, 2007, and
44 35 every fiscal year thereafter, the division appropriates to the
45 1 general fund of the state $4 million for payment of economic
45 2 development region revolving fund contribution tax credits.
45 3 The division provides that moneys that remain unexpended at
45 4 the end of a fiscal year shall not revert to any fund but
45 5 shall remain available for expenditure for the designated
45 6 purposes during the succeeding fiscal year.
45 7 DIVISION IV == This division of the bill relates to the
45 8 loan and credit guarantee program.
45 9 The division establishes a loan and credit guarantee
45 10 advisory board consisting of seven members appointed by the
45 11 governor. The division provides that the advisory board shall
45 12 provide the department with technical advice regarding the
45 13 administration of the program, including the adoption of
45 14 administrative rules. The division provides that the advisory
45 15 board shall review and provide recommendations regarding all
45 16 applications under the program.
45 17 The loan and guarantee advisory board was previously
45 18 enacted in 2003 and then stricken pursuant to Rants v.
45 19 Vilsack, 684 N.W.2d 193. In 2004, legislation was enacted
45 20 validating the establishment and existence of the loan and
45 21 credit guarantee advisory board. The 2004 legislation also
45 22 provided for the composition of the board to remain the same,
45 23 but provided that the board would serve only in an advisory
45 24 capacity to the department of economic development. The
45 25 remaining provisions in this division make amendments
45 26 conforming to the reestablishment of the loan and guarantee
45 27 advisory board.
45 28 DIVISION V == This division of the bill relates to economic
45 29 development regions and provides for a tax credit.
45 30 The division provides for the creation of economic
45 31 development regions which must be approved by the department
45 32 of economic development before the region may receive moneys
45 33 from the grow Iowa values fund. Such regions may create
45 34 economic development region revolving funds.
45 35 The division provides that a nongovernmental entity making
46 1 a contribution to an economic development region revolving
46 2 fund may claim a tax credit equal to 20 percent of the amount
46 3 contributed to the revolving fund. The tax credit is allowed
46 4 against personal and corporate income tax, the franchise tax
46 5 for financial institutions, the insurance premium tax, and the
46 6 moneys and credits tax for credit unions. The division allows
46 7 an organization exempt from federal income tax pursuant to
46 8 section 501(c) of the Internal Revenue Code making a
46 9 contribution to an economic development region revolving fund
46 10 to be paid from the general fund of the state an amount equal
46 11 to 20 percent of such contributed amount within 30 days after
46 12 the end of the fiscal year during which the contribution was
46 13 made. The total amount of tax credits and payments to
46 14 contributors, referred to as the credit amount, authorized
46 15 during a fiscal year shall not exceed $4 million plus any
46 16 unused credit amount carried over from previous years. The
46 17 division provides that any credit amount which remains unused
46 18 for a fiscal year may be carried forward to the succeeding
46 19 fiscal year. The division provides that the maximum credit
46 20 amount that may be authorized in a fiscal year for
46 21 contributions made to a specific economic development region
46 22 revolving fund is equal to $4 million plus any unused credit
46 23 amount carried over from previous years divided by the number
46 24 of economic development region revolving funds existing in the
46 25 state.
46 26 The division provides that an economic development region
46 27 may apply for financial assistance from the grow Iowa values
46 28 fund to assist with physical infrastructure needs related to a
46 29 specific business partner, to assist an existing business
46 30 located in the region impacted by business consolidation
46 31 actions, to implement economic development initiatives unique
46 32 to the region, or to implement innovative initiatives that do
46 33 not otherwise qualify for financial assistance. The division
46 34 allows the grow Iowa values board to establish and administer
46 35 a regional economic development revenue sharing pilot project
47 1 for one or more regions. The division limits financial
47 2 assistance to economic development regions to a total of $5
47 3 million each fiscal year for the fiscal period beginning July
47 4 1, 2005, and ending June 30, 2007, and to a total of $12.5
47 5 million for the fiscal year beginning July 1, 2007, and each
47 6 fiscal year thereafter.
47 7 The division allows an approved economic development region
47 8 to apply to the grow Iowa values board for approval to be
47 9 designated as an economically isolated area based on criteria
47 10 as determined by the board. An economically isolated area
47 11 must consist of at least one county meeting the county
47 12 distress criteria provided under the enterprise zone program.
47 13 The division limits the number of economically isolated areas
47 14 to five regions. The division provides that an approved
47 15 economically isolated area may apply for financial assistance
47 16 from the grow Iowa values fund of up to $750,000 over a five=
47 17 year period for purposes of economic development=related
47 18 marketing assistance for the area.
47 19 DIVISION VI == This division of the bill relates to the
47 20 establishment of cultural districts. The cultural district
47 21 legislation, then known as cultural and entertainment
47 22 districts, was previously enacted in 2003 and then stricken
47 23 pursuant to Rants v. Vilsack, 684 N.W.2d 193. Along with
47 24 changing the names of the districts, the division modifies the
47 25 criteria for certification by the department of cultural
47 26 affairs. The division provides that a district shall consist
47 27 of a well=defined, compact area that includes both residential
47 28 and commercial property.
47 29 The division provides that district certification is for a
47 30 period of 10 years and allows for the certification of areas
47 31 that extend across boundaries of cities and counties. The
47 32 division provides that the department of cultural affairs
47 33 shall encourage development projects and activities located in
47 34 certified cultural districts through incentives under cultural
47 35 grant programs and any other grant programs.
48 1 DIVISION VII == This division of the bill relates to
48 2 rehabilitation project tax credits. The division provides
48 3 that, for the fiscal year beginning July 1, 2005, and every
48 4 fiscal year thereafter, $800,000 of the rehabilitation tax
48 5 credits may be approved each fiscal year for purposes of
48 6 projects located in certified cultural districts. The
48 7 division allows any additional tax credits allocated for
48 8 projects located in cultural districts that are not approved
48 9 during a fiscal year to be carried over to the succeeding
48 10 fiscal year.
48 11 LSB 1115YH 81
48 12 tm/cf/24.1