House File 890 - Introduced



                                       HOUSE FILE       
                                       BY  COMMITTEE ON APPROPRIATIONS

                                       (SUCCESSOR TO HF 361)
                                       (SUCCESSOR TO HF 213)


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

                                      A BILL FOR

  1 An Act relating to assistance for small businesses, making
  2    appropriations, and providing an effective date provision.
  3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  4 TLSB 1517HZ 82
  5 tm/gg/14

PAG LIN



  1  1    Section 1.  Section 8A.311, subsection 10, unnumbered
  1  2 paragraph 1, Code 2007, is amended to read as follows:
  1  3    The director shall adopt rules providing that any state
  1  4 agency may, upon request, purchase directly from a vendor if
  1  5 the direct purchasing is as economical or more economical than
  1  6 purchasing through the department, or upon a showing that
  1  7 direct purchasing by the state agency would be in the best
  1  8 interests of the state due to an immediate or emergency need.
  1  9 The rules shall include a provision permitting a state agency
  1 10 to purchase directly from a vendor, on the agency's own
  1 11 authority, if the purchase will not exceed five ten thousand
  1 12 dollars and the purchase will contribute to the agency
  1 13 complying with or exceeding the targeted small business
  1 14 procurement goals under sections 73.15 through 73.21.
  1 15    Sec. 2.  NEW SECTION.  11.46  TARGETED SMALL BUSINESS.
  1 16    After the conclusion of each fiscal year, the auditor of
  1 17 state shall annually conduct a review of whether state
  1 18 agencies are meeting their goal for procurement activities
  1 19 conducted pursuant to sections 73.15 through 73.21, and
  1 20 compliance with the forty=eight hour notice provision in
  1 21 section 73.16, subsection 2.  By December 31 of each year, the
  1 22 auditor of state shall file a written report with the governor
  1 23 and the general assembly which shall include the findings of
  1 24 the review.  The auditor of state may charge a fee to cover
  1 25 the costs of conducting activities under this section.  The
  1 26 first report filed pursuant to this section shall be for the
  1 27 fiscal year beginning July 1, 2007.  However, the auditor of
  1 28 state shall file a report pursuant to this section by December
  1 29 31, 2007, for the time period beginning July 1, 2007, and
  1 30 ending September 30, 2007.
  1 31    Sec. 3.  Section 15.102, subsection 4, Code 2007, is
  1 32 amended to read as follows:
  1 33    4.  "Small business" means any enterprise which is located
  1 34 in this state, which is operated for profit and under a single
  1 35 management, and which has either fewer than twenty employees
  2  1 or an annual gross income of less than three four million
  2  2 dollars computed as the average of the three preceding fiscal
  2  3 years.  This definition does not apply to any program or
  2  4 activity for which a definition for small business is provided
  2  5 for the program or activity by federal law or regulation or
  2  6 other state law.
  2  7    Sec. 4.  Section 15.102, subsection 5, paragraph a,
  2  8 subparagraph (3), Code 2007, is amended to read as follows:
  2  9    (3)  Has an annual gross income of less than three four
  2 10 million dollars computed as an average of the three preceding
  2 11 fiscal years.
  2 12    Sec. 5.  Section 15.108, subsection 7, paragraph c, Code
  2 13 2007, is amended to read as follows:
  2 14    c.  Aid for the development and implementation of the Iowa
  2 15 targeted small business procurement Act established in
  2 16 sections 73.15 through 73.21 and the targeted small business
  2 17 financial assistance program established in section 15.247.
  2 18 The duties of the director under this paragraph include the
  2 19 following:
  2 20    (1)  (a)  By December 1 of each year, the department of
  2 21 administrative services shall file a written report with the
  2 22 department of economic development regarding the Iowa targeted
  2 23 small business procurement Act activities during the previous
  2 24 fiscal year.  At a minimum, the report shall include a summary
  2 25 of all activities undertaken by the department of
  2 26 administrative services in an effort to maximize the
  2 27 utilization of the targeted small business procurement Act.
  2 28  (b)  By December 1 of each year, the department of
  2 29 inspections and appeals shall file a written report with the
  2 30 department of economic development regarding certifications of
  2 31 targeted small businesses.  At a minimum, the report shall
  2 32 include the number of certified targeted small businesses for
  2 33 the previous year and the increase or decrease in that number
  2 34 during the previous fiscal year compared to the prior fiscal
  2 35 year, the number of targeted small businesses that have been
  3  1 decertified over the previous fiscal year, and a summary of
  3  2 all activities undertaken by the department of inspections and
  3  3 appeals regarding targeted small business certification.
  3  4    (c)  By December 1 of each year, the department of economic
  3  5 development shall compile an internal report regarding the
  3  6 targeted small business financial assistance program.  At a
  3  7 minimum, the report shall contain the number of loans, loan
  3  8 guarantees, and grants distributed during the previous fiscal
  3  9 year, the individual amounts provided to targeted small
  3 10 businesses during the previous fiscal year, and how many
  3 11 financial assistance awards to targeted small businesses were
  3 12 the subject of repayment or collection activity during the
  3 13 previous fiscal year.
  3 14    (d)  By December 1 of each year, the targeted small
  3 15 business marketing and compliance manager of the department of
  3 16 economic development shall compile a list of the procurement
  3 17 goals established pursuant to section 73.16, subsection 2, and
  3 18 the performance of each agency in meeting the goals.  The
  3 19 compilation of the performance of each agency shall be based
  3 20 upon the reports required to be filed under section 73.16,
  3 21 subsection 2.
  3 22    (e)  By January 15 of each year, the department of economic
  3 23 development shall submit to the governor and the general
  3 24 assembly a compilation of reports required under this
  3 25 subparagraph.
  3 26    (1)  (2)  The director, in conjunction with cooperation
  3 27 from the director of the department of management other state
  3 28 agencies, shall publicize the procurement goal program for
  3 29 established in sections 73.15 through 73.21 to targeted small
  3 30 businesses and to agencies of state government, attempt to
  3 31 locate targeted small businesses able to perform contracts,
  3 32 and encourage program participation.  The director may request
  3 33 the cooperation of the department of administrative services,
  3 34 the state department of transportation, the state board of
  3 35 regents, or any other agency of state government in
  4  1 publicizing this program.
  4  2    (2)  (3)  The director, in conjunction with the director of
  4  3 the department of management other state agencies, shall
  4  4 publicize the financial assistance program established in
  4  5 section 15.247 to targeted small businesses.
  4  6    (3)  (4)  When the director determines, or is notified by
  4  7 the head of another agency of state government, that a
  4  8 targeted small business is unable to perform a procurement
  4  9 contract, the director shall assist the small business in
  4 10 attempting to remedy the causes of the inability to perform.
  4 11 In assisting the small business, the director may use any
  4 12 management or financial assistance programs available through
  4 13 state or governmental agencies or private sources.
  4 14    (4)  (5)  The director, in conjunction with the director of
  4 15 the department of management and jointly with the universities
  4 16 under the jurisdiction of the state board of regents, and the
  4 17 community colleges, shall develop and make available in all
  4 18 areas of the state, programs to offer and deliver
  4 19 concentrated, in=depth advice and services to assist targeted
  4 20 small businesses.  The department of economic development
  4 21 shall establish targeted small business advocate service
  4 22 providers for purposes of providing mentoring, outreach, and
  4 23 professional development services to targeted small businesses
  4 24 certified pursuant to section 10A.104.  Targeted small
  4 25 business advocate service providers shall be established
  4 26 through a request for proposals process.  Entities eligible to
  4 27 bid under the request for proposals process shall include but
  4 28 not be limited to a business accelerator, a small business
  4 29 development center, or any organization that provides
  4 30 mentoring, outreach, and professional development services to
  4 31 businesses.  A person serving on or staffing a governor's task
  4 32 force on targeted small businesses during calendar year 2006
  4 33 shall not be eligible to be part of a bid under the request
  4 34 for proposals process until after July 1, 2009.  A person
  4 35 serving on or staffing a governor's targeted small business
  5  1 advisory council shall not be eligible to be part of a bid
  5  2 under the request for proposals process until three years
  5  3 following the termination of service or staffing the advisory
  5  4 council.  The advice and services provided by providers shall
  5  5 extend to all areas of business management in its practical
  5  6 application, including but not limited to accounting,
  5  7 engineering, drafting, grant writing, obtaining financing,
  5  8 locating bond markets, market analysis, and projections of
  5  9 profit and loss.
  5 10    Sec. 6.  Section 15.247, subsection 2, Code 2007, is
  5 11 amended to read as follows:
  5 12    2.  A "targeted small business financial assistance program
  5 13 account" is established within the strategic investment fund
  5 14 created in section 15.313, to provide for loans, loan
  5 15 guarantees, revolving loans, loans secured by accounts
  5 16 receivable, or grants to targeted small businesses and to
  5 17 low=income persons establishing or expanding small business
  5 18 ventures.  A targeted small business or low=income person in
  5 19 any year shall receive under this program not more than fifty
  5 20 thousand dollars in a loan, grant, or guarantee, or a
  5 21 combination of loans, grants, or guarantees.  A grant shall
  5 22 only be awarded when additional financing is secured by the
  5 23 applicant.  In order to receive a grant, the applicant must
  5 24 demonstrate a minimum of ten percent cash investment in the
  5 25 project.  A targeted small business shall not receive a grant,
  5 26 loan, or guarantee, or a combination of grants, loans, or
  5 27 guarantees under the program that provide more than ninety
  5 28 percent funding of a project.  The program shall provide
  5 29 guarantees not to exceed seventy=five eighty percent for loans
  5 30 of up to seven years made by qualified lenders.  The
  5 31 department shall establish a financial assistance reserve
  5 32 account from funds allocated to the program account, from
  5 33 which any default on a guaranteed loan under this section
  5 34 shall be paid.  In administering the program the department
  5 35 shall not guarantee loan values in excess of the amount
  6  1 credited to the reserve account and only moneys set aside in
  6  2 the loan reserve account may be used for the payment of a
  6  3 default.  The department shall maintain records of all
  6  4 financial assistance approved pursuant to this section and
  6  5 information regarding the effectiveness of the financial
  6  6 assistance in establishing or expanding small business
  6  7 ventures.
  6  8    Sec. 7.  Section 15.247, Code 2007, is amended by adding
  6  9 the following new subsections:
  6 10    NEW SUBSECTION.  7.  In order to receive financial
  6 11 assistance under this section a targeted small business shall
  6 12 participate in mentoring services from a targeted small
  6 13 business advocate service provider.
  6 14    NEW SUBSECTION.  8.  a.  In order to receive financial
  6 15 assistance under this section, an application for financial
  6 16 assistance submitted on or after July 1, 2007, must be
  6 17 approved by the targeted small business financial assistance
  6 18 board created in this subsection.
  6 19    b.  The targeted small business financial assistance board
  6 20 shall consist of seven members appointed by the director
  6 21 representing backgrounds in the areas of finance, insurance,
  6 22 or banking.  The members shall be business owners in the
  6 23 private, for=profit sector.  All of the following populations
  6 24 shall be represented separately by at least one member:
  6 25    (1)  Hispanic.
  6 26    (2)  Black.
  6 27    (3)  Asian or Pacific Islander.
  6 28    (4)  Minority woman.
  6 29    (5)  Caucasian woman.
  6 30    (6)  Native American.
  6 31    (7)  A person with a disability as defined in section
  6 32 15.102.
  6 33    c.  A person within the fourth degree of consanguinity of
  6 34 an employee of the department, a person within the fourth
  6 35 degree of consanguinity of a member of the targeted small
  7  1 business financial assistance board or member's relative, or a
  7  2 business with any financial ties to a member shall not be
  7  3 eligible for financial assistance under the program during the
  7  4 employee's employment or the member's tenure on the board, as
  7  5 applicable.  Members shall serve two year terms and may be
  7  6 reappointed.
  7  7    d.  The targeted small business financial assistance board
  7  8 shall consider all applications for financial assistance under
  7  9 the program submitted on or after July 1, 2007.
  7 10    Sec. 8.  Section 19B.7, subsection 1, paragraph d, Code
  7 11 2007, is amended to read as follows:
  7 12    d.  Report results under the contract compliance policy to
  7 13 the governor and the general assembly on an annual basis.  Any
  7 14 information reported by the department of administrative
  7 15 services to the department of economic development pursuant to
  7 16 section 15.108 shall not be required to be part of the report
  7 17 under this paragraph.  The report shall detail specific
  7 18 efforts to promote equal opportunity through state contracts
  7 19 and services and efforts to promote, develop, and stimulate
  7 20 the utilization of minority, women's, and disadvantaged
  7 21 business enterprises in programs receiving or benefiting from
  7 22 state financial assistance.
  7 23    Sec. 9.  Section 73.16, subsection 2, unnumbered paragraph
  7 24 1, Code 2007, is amended to read as follows:
  7 25    The Prior to the commencement of a fiscal year, the
  7 26 director of each agency or department of state government
  7 27 having purchasing authority, in cooperation with the targeted
  7 28 small business marketing and compliance manager of the
  7 29 department of economic development, shall establish for that
  7 30 fiscal year a procurement goal from certified targeted small
  7 31 businesses identified pursuant to section 10A.104, subsection
  7 32 8, of at least ten percent of the value of anticipated
  7 33 procurements of.  The procurement goal shall include the
  7 34 procurement of all goods and services, including construction,
  7 35 but not including utility services, each fiscal year.  A
  8  1 procurement goal shall be stated in terms of a dollar amount
  8  2 of certified purchases and shall be established at a level
  8  3 that exceeds the procurement levels from certified targeted
  8  4 small businesses during the previous fiscal year.  The
  8  5 director of an agency or department of state government that
  8  6 has established a procurement goal as required under this
  8  7 subsection shall provide a report within fifteen business days
  8  8 following the end of each calendar quarter to the targeted
  8  9 small business marketing and compliance manager of the
  8 10 department of economic development, providing the total dollar
  8 11 amount of certified purchases from certified targeted small
  8 12 businesses during the previous calendar quarter.  The required
  8 13 report shall be made in a form approved by the targeted small
  8 14 business marketing and compliance manager.  The first
  8 15 quarterly report shall be for the calendar quarter ending
  8 16 September 30, 2007.  The director of each department and
  8 17 agency of state government shall cooperate with the director
  8 18 of the department of inspections and appeals, the director of
  8 19 the department of economic development, and the director of
  8 20 the department of management and do all acts necessary to
  8 21 carry out the provisions of this division.
  8 22    Sec. 10.  Section 262.34A, subsection 2, Code 2007, is
  8 23 amended to read as follows:
  8 24    2.  Notwithstanding section 73.16, subsection 2, and due to
  8 25 the high volume of bids issued by the board and the need to
  8 26 coordinate bidding of three institutions of higher learning,
  8 27 the board may shall issue electronic bid notices for
  8 28 distribution to the targeted small business internet site
  8 29 through internet links to each of the regents institutions.
  8 30    Sec. 11.  APPLICATION REVIEW.  For applications for
  8 31 financial assistance under section 15.247 received on or
  8 32 before June 30, 2007, the department of economic development
  8 33 shall use the same review and approval process used prior to
  8 34 the effective date of this Act.
  8 35    Sec. 12.  TARGETED SMALL BUSINESS ADVOCATE SERVICE
  9  1 PROVIDERS.
  9  2    1.  There is appropriated from the general fund of the
  9  3 state to the department of economic development for the fiscal
  9  4 year beginning July 1, 2006, and ending June 30, 2007, the
  9  5 following amount, or so much thereof as is necessary, to be
  9  6 used for the purposes designated:
  9  7    For the establishment of targeted small business advocate
  9  8 service providers, including salaries, support, maintenance,
  9  9 and miscellaneous purposes:
  9 10 .................................................. $    900,000
  9 11    2.  Of the moneys appropriated under this section, not more
  9 12 than $150,000 shall be expended on one targeted small business
  9 13 advocate service provider.
  9 14    3.  Notwithstanding section 8.33, moneys appropriated in
  9 15 this section that remain unencumbered or unobligated at the
  9 16 close of the fiscal year shall not revert but shall remain
  9 17 available for expenditure for the purposes designated until
  9 18 the close of the succeeding fiscal year.
  9 19    Sec. 13.  TARGETED SMALL BUSINESS FINANCIAL ASSISTANCE
  9 20 PROGRAM.  There is appropriated from the general fund of the
  9 21 state to the department of economic development for the fiscal
  9 22 year beginning July 1, 2006, and ending June 30, 2007, the
  9 23 following amount, or so much thereof as is necessary, to be
  9 24 used for the purposes designated:
  9 25    For deposit in the targeted small business financial
  9 26 assistance program account of the strategic investment fund:
  9 27 .................................................. $  2,500,000
  9 28    Notwithstanding section 8.33, moneys appropriated in this
  9 29 section that remain unencumbered or unobligated at the close
  9 30 of the fiscal year shall not revert but shall remain available
  9 31 for expenditure for the purposes designated until the close of
  9 32 the succeeding fiscal year.
  9 33    Sec. 14.  MARKETING AND COMPLIANCE MANAGER.
  9 34    1.  There is appropriated from the general fund of the
  9 35 state to the department of economic development for the fiscal
 10  1 year beginning July 1, 2006, and ending June 30, 2007, the
 10  2 following amount, or so much thereof as is necessary, to be
 10  3 used for the purposes designated:
 10  4    For purposes of marketing and compliance activities and for
 10  5 administrative costs related to the targeted small business
 10  6 financial assistance program and the Iowa targeted small
 10  7 business procurement Act, including salaries, support,
 10  8 maintenance, miscellaneous purposes, and for not more than the
 10  9 following full=time equivalent positions:
 10 10 .................................................. $    225,000
 10 11 ............................................... FTEs       1.00
 10 12    2.  From moneys appropriated under this section, the
 10 13 department shall create a full=time position for a targeted
 10 14 small business marketing and compliance manager.  The position
 10 15 shall be responsible, at a minimum, for coordinating the
 10 16 establishment of the targeted small business advocate service
 10 17 providers, providing marketing support for the Iowa targeted
 10 18 small business procurement Act and targeted small business
 10 19 financial assistance program, providing state agencies with
 10 20 Iowa targeted small business procurement Act assistance, and
 10 21 providing any related services.
 10 22    3.  The department may use moneys appropriated under this
 10 23 section for purposes of paying fees associated with services
 10 24 provided by the auditor of state pursuant to section 11.46.
 10 25    4.  Notwithstanding section 8.33, moneys appropriated in
 10 26 this section that remain unencumbered or unobligated at the
 10 27 close of the fiscal year shall not revert but shall remain
 10 28 available for expenditure for the purposes designated until
 10 29 the close of the succeeding fiscal year.
 10 30    Sec. 15.  PROCESS IMPROVEMENT == MARKETING ACTIVITIES.
 10 31 There is appropriated from the general fund of the state to
 10 32 the department of economic development for the fiscal year
 10 33 beginning July 1, 2006, and ending June 30, 2007, the
 10 34 following amount, or so much thereof as is necessary, to be
 10 35 used for the purposes designated:
 11  1    For implementing process improvement activities and for
 11  2 administrative costs for the targeted small business financial
 11  3 assistance program and the Iowa targeted small business
 11  4 procurement Act, for developing and conducting a vendor fair
 11  5 to increase awareness of the targeted small business financial
 11  6 assistance program and the Iowa targeted small business
 11  7 procurement Act, and for an awards banquet to recognize the
 11  8 accomplishments under the Iowa targeted small business
 11  9 procurement Act:
 11 10 .................................................. $    225,000
 11 11    The department may use moneys appropriated under this
 11 12 section for purposes of paying fees associated with services
 11 13 provided by the auditor of state pursuant to section 11.46.
 11 14    Notwithstanding section 8.33, moneys appropriated in this
 11 15 section that remain unencumbered or unobligated at the close
 11 16 of the fiscal year shall not revert but shall remain available
 11 17 for expenditure for the purposes designated until the close of
 11 18 the succeeding fiscal year.
 11 19    Sec. 16.  CERTIFICATION.
 11 20    1.  There is appropriated from the general fund of the
 11 21 state to the department of inspections and appeals for the
 11 22 fiscal year beginning July 1, 2006, and ending June 30, 2007,
 11 23 the following amount, or so much thereof as is necessary, to
 11 24 be used for the purposes designated:
 11 25    For purposes of a dedicated targeted small business
 11 26 certification employee, including salaries, support,
 11 27 maintenance, miscellaneous purposes, and for not more than the
 11 28 following full=time equivalent positions:
 11 29 .................................................. $    150,000
 11 30 ............................................... FTEs       1.00
 11 31    2.  From moneys appropriated under this section, the
 11 32 department shall create a full=time position for a targeted
 11 33 small business certification employee.  The position shall be
 11 34 responsible, at a minimum, for processing applications for
 11 35 targeted small business applications, conducting on=site
 12  1 visits, maintaining a publicly available active directory of
 12  2 certified targeted small businesses, organizing and
 12  3 participating in educational meetings for certified targeted
 12  4 small businesses and potential targeted small businesses,
 12  5 coordinating activities with other state agencies to promote
 12  6 the Iowa targeted small business procurement Act, and any
 12  7 other related responsibilities.
 12  8    3.  Notwithstanding section 8.33, moneys appropriated in
 12  9 this section that remain unencumbered or unobligated at the
 12 10 close of the fiscal year shall not revert but shall remain
 12 11 available for expenditure for the purposes designated until
 12 12 the close of the succeeding fiscal year.
 12 13    Sec. 17.  EFFECTIVE DATE.  This Act, being deemed of
 12 14 immediate importance, takes effect upon enactment.
 12 15                           EXPLANATION
 12 16    This bill relates to assistance for small businesses.
 12 17    Currently, a state agency may purchase directly from a
 12 18 vendor, instead of through the department of administrative
 12 19 services, and avoid the competitive bidding process if the
 12 20 purchase will not exceed $5,000 and the purchase will
 12 21 contribute to the agency complying with or exceeding the
 12 22 targeted small business procurement goals.  The bill increases
 12 23 the threshold to $10,000.
 12 24    The bill provides that after the conclusion of each fiscal
 12 25 year, the auditor of state shall annually conduct a review of
 12 26 targeted small business procurement activities.  The bill
 12 27 requires the auditor of state to file a written report with
 12 28 the governor and the general assembly which shall include the
 12 29 findings of the review.
 12 30    Currently, one of the criteria for a small business under
 12 31 Code chapter 15 and for a targeted small business is that the
 12 32 business has a gross income of less than $3 million.  The bill
 12 33 increases this amount to $4 million.
 12 34    The bill amends the duties of the department of economic
 12 35 development regarding the Iowa targeted small business
 13  1 procurement Act and the targeted small business financial
 13  2 assistance program.  The bill requires the department of
 13  3 administrative services to file an annual report with the
 13  4 department of economic development regarding the Iowa targeted
 13  5 small business procurement Act activities during the previous
 13  6 fiscal year.  The bill requires the department of inspections
 13  7 and appeals to file an annual report with the department of
 13  8 economic development regarding certifications of targeted
 13  9 small businesses.  The bill requires the targeted small
 13 10 business marketing and compliance manager to annually compile
 13 11 a list of procurement goals.  The bill requires the department
 13 12 to file an annual written report with the governor and the
 13 13 general assembly compiling all the reports.  The bill requires
 13 14 state agencies to cooperate with the department in publicizing
 13 15 both programs.  The bill requires the department to establish
 13 16 targeted small business advocate service providers for
 13 17 purposes of providing mentoring, outreach, and professional
 13 18 development services to certified targeted small businesses.
 13 19 The bill requires the providers to be established through a
 13 20 request for proposals process.
 13 21    Currently, under the targeted small business financial
 13 22 assistance program, guarantees are provided which do not
 13 23 exceed 75 percent for loans made by qualified lenders.  The
 13 24 bill increases the percentage to 80 percent and limits such
 13 25 loans to seven years or less.
 13 26    The bill eliminates the ability of low=income persons from
 13 27 receiving assistance under the targeted small business
 13 28 financial assistance program.  The bill provides that grants
 13 29 under the program shall only be awarded when additional
 13 30 financing is secured by the applicant.
 13 31    The bill provides that a targeted small business that
 13 32 receives financial assistance under the targeted small
 13 33 business financial assistance program must participate in
 13 34 mentoring services from a targeted small business accelerator.
 13 35    The bill creates a targeted small business financial
 14  1 assistance board.  The bill provides that an application for
 14  2 financial assistance submitted on or after July 1, 2007, must
 14  3 be approved by the board in order to receive financial
 14  4 assistance under the program.
 14  5    Currently, under the Iowa targeted small business
 14  6 procurement Act, the director of each agency or department of
 14  7 state government having purchasing authority must establish a
 14  8 procurement goal from certified targeted small businesses, of
 14  9 at least 10 percent of the value of anticipated procurements
 14 10 of goods and services, including construction, but not
 14 11 including utility services, each fiscal year.  The bill
 14 12 eliminates the 10 percent goal.  The bill requires, prior to
 14 13 each new fiscal year, each department or agency, in
 14 14 cooperation with the department of economic development, to
 14 15 establish a procurement goal from certified small businesses.
 14 16 The procurement goals must include the procurement of all
 14 17 goods and services, including construction, but not including
 14 18 utility services.  The goals must be stated in terms of dollar
 14 19 amount of certified purchases and must be established at a
 14 20 level that exceeds previous fiscal year levels.  The bill
 14 21 requires quarterly reports to be filed with the department of
 14 22 economic development regarding certified purchases from
 14 23 certified targeted small businesses during the previous
 14 24 calendar quarter.
 14 25    The bill provides justification for allowing the state
 14 26 board of regents to issue electronic bid notices for
 14 27 distribution to the targeted small business internet site
 14 28 through internet links to each of the regents institutions.
 14 29    The bill appropriates $900,000 from the general fund of the
 14 30 state to the department of economic development for FY
 14 31 2006=2007 for the establishment of targeted small business
 14 32 advocate service providers.  The bill limits the amount that
 14 33 may be expended on one targeted small business advocate
 14 34 service provider to $150,000.
 14 35    The bill appropriates $2.5 million from the general fund of
 15  1 the state to the department of economic development for FY
 15  2 2006=2007 for deposit in the targeted small business financial
 15  3 assistance program account of the strategic investment fund.
 15  4    The bill appropriates $225,000 from the general fund of the
 15  5 state to the department of economic development for FY
 15  6 2006=2007 for purposes of marketing and compliance activities
 15  7 and administrative costs related to the targeted small
 15  8 business financial assistance program and the Iowa targeted
 15  9 small business procurement Act.  The bill requires the
 15 10 department to create a full=time position for a targeted small
 15 11 business marketing and compliance manager.
 15 12    The bill appropriates $225,000 from the general fund of the
 15 13 state to the department of economic development for FY
 15 14 2006=2007 for implementing process improvement activities and
 15 15 for administrative costs for the targeted small business
 15 16 financial assistance program and the Iowa targeted small
 15 17 business procurement Act, for developing and conducting a
 15 18 vendor fair to increase awareness of the targeted small
 15 19 business financial assistance program and the Iowa targeted
 15 20 small business procurement Act, and for an awards banquet to
 15 21 recognize the accomplishments under the Iowa targeted small
 15 22 business procurement Act.
 15 23    The bill appropriates $150,000 from the general fund of the
 15 24 state to the department of inspections and appeals for FY
 15 25 2006=2007 for purposes of a dedicated targeted small business
 15 26 certification employee.
 15 27    The bill takes effect upon enactment.
 15 28 LSB 1517HZ 82
 15 29 tm:rj/gg/14