House File 811 - Introduced



                                     HOUSE FILE       
                                     BY  COMMITTEE ON ECONOMIC GROWTH

                                     (SUCCESSOR TO HF 259)


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

                                      A BILL FOR

  1 An Act creating a help infrastructure vitality and economic
  2    growth fund and making appropriations.
  3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  4 TLSB 2356HV 82
  5 tm/je/5

PAG LIN



  1  1    Section 1.  NEW SECTION.  8.57D  HELP INFRASTRUCTURE
  1  2 VITALITY AND ECONOMIC GROWTH FUND.
  1  3    1.  A help infrastructure vitality and economic growth fund
  1  4 is created under the authority of the department of economic
  1  5 development.  The fund shall consist of appropriations made to
  1  6 the fund and transfers of interest, earnings, and moneys from
  1  7 other funds as provided by law.  The fund shall be separate
  1  8 from the general fund of the state and the balance in the fund
  1  9 shall not be considered part of the balance of the general
  1 10 fund of the state.  However, the fund shall be considered a
  1 11 special account for the purposes of section 8.53, relating to
  1 12 generally accepted accounting principles.
  1 13    2.  Notwithstanding section 12C.7, subsection 2, interest
  1 14 or earnings on moneys in the help infrastructure vitality and
  1 15 economic growth fund shall be credited to the rebuild Iowa
  1 16 infrastructure fund.
  1 17    3.  Moneys in the fund shall be used to provide financial
  1 18 assistance for physical infrastructure purposes in the form of
  1 19 grants, loans, forgivable loans, loan guarantees, and other
  1 20 forms of assistance to cities meeting the distress criteria
  1 21 provided in section 15E.194, subsection 2, or the requirements
  1 22 of section 15E.194, subsection 3.
  1 23    4.  A city may apply to the department of economic
  1 24 development for financial assistance from the fund.  Financial
  1 25 assistance shall be used for physical infrastructure purposes,
  1 26 including but not limited to horizontal infrastructure, water
  1 27 and sewer infrastructure, and telecommunications
  1 28 infrastructure.  The department shall develop criteria for
  1 29 financial assistance applications and the Iowa economic
  1 30 development board shall approve, deny, or modify applications
  1 31 for financial assistance.  If an application is denied, the
  1 32 department shall notify the applicant of the reasons for the
  1 33 denial.
  1 34    5.  Notwithstanding section 8.57, subsection 6, paragraph
  1 35 "c", there is appropriated from the rebuild Iowa
  2  1 infrastructure fund to the help infrastructure vitality and
  2  2 economic growth fund five million dollars each fiscal year for
  2  3 the fiscal period beginning July 1, 2007, and ending June 30,
  2  4 2016.  Moneys deposited in the fund shall be used for the
  2  5 purposes set out in subsections 3 and 4.  Moneys in the fund
  2  6 that remain unexpended and unobligated at the end of a fiscal
  2  7 year shall remain in the fund for the succeeding fiscal year
  2  8 to be used for purposes of the fund.
  2  9                           EXPLANATION
  2 10    This bill creates a help infrastructure vitality and
  2 11 economic growth fund and makes appropriations.
  2 12    The bill creates a help infrastructure vitality and
  2 13 economic growth fund under the authority of the department of
  2 14 economic development.  The bill provides that moneys in the
  2 15 fund shall be used to provide financial assistance for
  2 16 physical infrastructure purposes in the form of grants, loans,
  2 17 forgivable loans, loan guarantees, and other forms of
  2 18 assistance to cities meeting certain distress criteria under
  2 19 the enterprise zone program.  The bill provides that financial
  2 20 assistance shall be used for physical infrastructure purposes,
  2 21 including but not limited to horizontal infrastructure, water
  2 22 and sewer infrastructure, and telecommunications
  2 23 infrastructure.
  2 24    The bill appropriates from the rebuild Iowa infrastructure
  2 25 fund to the help infrastructure vitality and economic growth
  2 26 fund $5 million each fiscal year for the fiscal period
  2 27 beginning July 1, 2007, and ending June 30, 2016.
  2 28 LSB 2356HV 82
  2 29 tm:nh/je/5