House File 800 - Introduced



                                   HOUSE FILE       
                                   BY  COMMITTEE ON ECONOMIC GROWTH

                                   (SUCCESSOR TO HF 561)


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

                                      A BILL FOR

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

PAG LIN



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