Senate File 556 - Introduced
SENATE FILE
BY COMMITTEE ON ECONOMIC GROWTH
(SUCCESSOR TO SF 29)
Passed Senate, Date Passed House, Date
Vote: Ayes Nays Vote: Ayes Nays
Approved
A BILL FOR
1 An Act relating to economic development activities, making
2 appropriations, providing tax exemptions, credits, and
3 refunds, providing penalties, and providing applicability
4 dates.
5 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
6 TLSB 1062SV 82
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PAG LIN
1 1 DIVISION I
1 2 HISTORIC PRESERVATION AND CULTURAL AND
1 3 ENTERTAINMENT DISTRICT TAX CREDIT
1 4 Section 1. Section 404A.1, subsection 1, Code 2007, is
1 5 amended to read as follows:
1 6 1. A historic preservation and cultural and entertainment
1 7 district tax credit, subject to the availability of the
1 8 credit, is granted against the tax imposed under chapter 422,
1 9 division II, III, or V, or chapter 432, for the rehabilitation
1 10 of eligible property located in this state as provided in this
1 11 chapter. Tax credits in excess of tax liabilities shall be
1 12 refunded or credited as provided in section 404A.4, subsection
1 13 3.
1 14 Sec. 2. Section 404A.4, subsection 3, Code 2007, is
1 15 amended to read as follows:
1 16 3. A person receiving a historic preservation and cultural
1 17 and entertainment district tax credit under this chapter which
1 18 is in excess of the person's tax liability for the tax year is
1 19 entitled to a refund of the excess at a discounted value. The
1 20 discounted value of the tax credit refund, as calculated by
1 21 the department of economic development, in consultation with
1 22 the department of revenue, shall be determined based on the
1 23 discounted value of the tax credit five years after the tax
1 24 year of the project completion at an interest rate equivalent
1 25 to the prime rate plus two percent. The refunded tax credit
1 26 shall not exceed seventy=five percent of the allowable tax
1 27 credit. Any credit in excess of the tax liability shall be
1 28 refunded with interest computed under section 422.25. In lieu
1 29 of claiming a refund, a taxpayer may elect to have the
1 30 overpayment shown on the taxpayer's final, completed return
1 31 credited to the tax liability for the following year.
1 32 Sec. 3. Section 404A.4, subsection 4, Code 2007, is
1 33 amended to read as follows:
1 34 4. The total amount of tax credits that may be approved
1 35 for a fiscal year under this chapter shall not exceed two ten
2 1 million four hundred thousand dollars in the fiscal year
2 2 beginning July 1, 2007, fifteen million dollars in the fiscal
2 3 year beginning July 1, 2008, and twenty million dollars in the
2 4 fiscal year beginning July 1, 2009, and each fiscal year
2 5 thereafter, less any amount appropriated pursuant to section
2 6 404A.6. For the fiscal period beginning July 1, 2005, and
2 7 ending June 30, 2015, an additional four million dollars of
2 8 tax credits may be approved each fiscal year for purposes of
2 9 projects located in cultural and entertainment districts
2 10 certified pursuant to section 303.3B. Of the tax credits
2 11 approved for a fiscal year under this chapter, ten percent of
2 12 the dollar amount of tax credits shall be allocated for
2 13 purposes of new projects with qualified costs of five hundred
2 14 thousand dollars or less, and forty percent of the dollar
2 15 amount of tax credits shall be allocated for purposes of new
2 16 projects located in cultural and entertainment districts
2 17 certified pursuant to section 303.3B or identified in Iowa
2 18 great places agreements developed pursuant to section 303.3C.
2 19 Any of the additional tax credits allocated for projects
2 20 located in certified cultural and entertainment districts or
2 21 identified in Iowa great places agreements and for projects
2 22 with a cost of five hundred thousand dollars or less that are
2 23 not approved reserved during a fiscal year shall be applied to
2 24 reserved tax credits issued in accordance with section 404A.3
2 25 in order of original reservation. The department of cultural
2 26 affairs shall establish by rule the procedures for the
2 27 application, review, selection, and awarding of certifications
2 28 of completion. The departments of economic development,
2 29 cultural affairs, and revenue shall each adopt rules to
2 30 jointly administer this subsection and shall provide by rule
2 31 for the method to be used to determine for which fiscal year
2 32 the tax credits are available. With the exception of tax
2 33 credits issued pursuant to contracts entered into prior to
2 34 July 1, 2005 2007, tax credits shall not be reserved for more
2 35 than five three years.
3 1 Sec. 4. NEW SECTION. 404A.6 APPROPRIATION ==
3 2 ADMINISTRATIVE COSTS.
3 3 For the fiscal year beginning July 1, 2007, and each fiscal
3 4 year thereafter, there is appropriated from the general fund
3 5 of the state to the department of cultural affairs one hundred
3 6 fifty thousand dollars, or so much thereof as is necessary,
3 7 for purposes of costs associated with administering this
3 8 chapter.
3 9 Sec. 5. Section 422.11D, subsection 1, Code 2007, is
3 10 amended to read as follows:
3 11 1. The taxes imposed under this division, less the credits
3 12 allowed under sections 422.12 and 422.12B, shall be reduced by
3 13 a historic preservation and cultural and entertainment
3 14 district tax credit equal to the amount as computed under
3 15 chapter 404A for rehabilitating eligible property. Any credit
3 16 in excess of the tax liability shall be refunded or credited
3 17 to the following year, as provided in section 404A.4,
3 18 subsection 3.
3 19 Sec. 6. Section 422.33, subsection 10, paragraph a, Code
3 20 2007, is amended to read as follows:
3 21 a. The taxes imposed under this division shall be reduced
3 22 by a historic preservation and cultural and entertainment
3 23 district tax credit equal to the amount as computed under
3 24 chapter 404A for rehabilitating eligible property. Any credit
3 25 in excess of the tax liability shall be refunded or credited
3 26 to the following year, as provided in section 404A.4,
3 27 subsection 3.
3 28 Sec. 7. Section 422.60, subsection 4, paragraph a, Code
3 29 2007, is amended to read as follows:
3 30 a. The taxes imposed under this division shall be reduced
3 31 by a historic preservation and cultural and entertainment
3 32 district tax credit equal to the amount as computed under
3 33 chapter 404A for rehabilitating eligible property. Any credit
3 34 in excess of the tax liability shall be refunded or credited
3 35 to the following year, as provided in section 404A.4,
4 1 subsection 3.
4 2 Sec. 8. Section 432.12A, subsection 1, Code 2007, is
4 3 amended to read as follows:
4 4 1. The tax imposed under this chapter shall be reduced by
4 5 a historic preservation and cultural and entertainment
4 6 district tax credit equal to the amount as computed under
4 7 chapter 404A for rehabilitating eligible property. Any credit
4 8 in excess of the tax liability shall be refunded or credited
4 9 to the following year, as provided in section 404A.4,
4 10 subsection 3.
4 11 Sec. 9. TAX CREDIT CERTIFICATES == RESERVATION DATES.
4 12 1. The department of cultural affairs shall reissue
4 13 historic preservation and cultural and entertainment district
4 14 tax credit certificates held by the original tax credit
4 15 certificate recipient. Tax credit certificates with a
4 16 redemption date in the year 2010 shall be reissued with a
4 17 redemption date of 2009. Tax credit certificates with a
4 18 redemption date in the year 2011 shall be reissued with a
4 19 redemption date of 2010. Tax credit certificates with a
4 20 redemption date in the years 2012, 2013, 2014, 2015, 2016, or
4 21 2017, shall be reissued with a redemption date of 2011. Tax
4 22 credit certificates that have been sold since issuance shall
4 23 not be reissued pursuant to this subsection.
4 24 2. In the order of original reservation dates, the
4 25 department of cultural affairs shall modify the reservation
4 26 date of reserved historic preservation and cultural and
4 27 entertainment district tax credits based on the availability
4 28 of additional moneys for tax credits under this Act.
4 29 Sec. 10. APPLICABILITY. This division of this Act applies
4 30 to historic preservation and cultural and entertainment
4 31 district tax credits applied for or reserved prior to July 1,
4 32 2007.
4 33 DIVISION II
4 34 ARTS AND CULTURE
4 35 Sec. 11. NEW SECTION. 303.90 SALES TAX REFUND == FINE
5 1 ART SALES.
5 2 1. An art dealer or artist shall be entitled to a refund
5 3 of the sales tax paid under chapter 423 for the sale of fine
5 4 art when the fine art is sold at a place of business located
5 5 within a cultural and entertainment district certified by the
5 6 department of cultural affairs pursuant to section 303.3B,
5 7 during the first seven years of certification of the district.
5 8 2. To receive the refund a claim shall be filed by the art
5 9 dealer or artist with the department of revenue. The art
5 10 dealer or artist shall state under oath, on forms provided by
5 11 the department, the amount of the sales of fine art upon which
5 12 sales tax has been paid and make application to the department
5 13 for any refund of the amount of the sales taxes paid pursuant
5 14 to chapter 423 upon any fine art sold by the art dealer or
5 15 artist at a place of business located within a cultural and
5 16 entertainment district. The department shall audit the claim
5 17 and, if approved, issue a warrant to the art dealer or artist
5 18 in the amount of the sales tax which has been paid to the
5 19 state of Iowa. A claim filed by an art dealer or artist in
5 20 accordance with this section shall not be denied by reason of
5 21 a limitation provision set forth in chapter 421 or 423. An
5 22 art dealer or artist who willfully makes a false report of tax
5 23 paid under the provisions of this section is guilty of a
5 24 simple misdemeanor and in addition is liable for the payment
5 25 of the tax and any applicable penalty and interest.
5 26 3. The sales tax refund allowed under this section applies
5 27 to fine art sold on or after July 1, 2007.
5 28 4. For purposes of this section, "art dealer", "artist",
5 29 and "fine art" mean the same as defined in section 556D.1.
5 30 Sec. 12. Section 386.3, subsection 1, paragraphs a and c,
5 31 Code 2007, are amended to read as follows:
5 32 a. Be comprised of contiguous property wholly located
5 33 within the boundaries of the city. A self=supported municipal
5 34 improvement district shall be comprised only of property in
5 35 districts which are and be one of the following:
6 1 (1) An area zoned for commercial or industrial uses and
6 2 properties within a use.
6 3 (2) A duly designated historic district.
6 4 (3) A cultural and entertainment district certified by the
6 5 department of cultural affairs pursuant to section 303.3B.
6 6 c. Be comprised of property one of the following:
6 7 (1) Property related in some manner, including but not
6 8 limited to present or potential use, physical location,
6 9 condition, relationship to an area, or relationship to present
6 10 or potential commercial or other activity in an area, so as to
6 11 be benefited in any manner, including but not limited to a
6 12 benefit from present or potential use or enjoyment of the
6 13 property, by the condition, development or maintenance of the
6 14 district or of any improvement or self=liquidating improvement
6 15 of the district, or be comprised of property.
6 16 (2) Property the owners of which have a present or
6 17 potential benefit from the condition, development, or
6 18 maintenance of the district or of any improvement or
6 19 self=liquidating improvement of the district.
6 20 (3) Property in a certified cultural and entertainment
6 21 district the owners of which have a present or potential
6 22 benefit from the expenditure of moneys for purposes of the
6 23 operational costs associated with the operation of the
6 24 certified cultural and entertainment district.
6 25 Sec. 13. Section 386.8, Code 2007, is amended to read as
6 26 follows:
6 27 386.8 OPERATION TAX.
6 28 A city may establish a self=supported improvement district
6 29 operation fund, and may certify taxes not to exceed the rate
6 30 limitation as established in the ordinance creating the
6 31 district, or any amendment thereto, each year to be levied for
6 32 the fund against all of the property in the district, for the
6 33 purpose of paying the administrative expenses of the district,
6 34 which may include but are not limited to administrative
6 35 personnel salaries, a separate administrative office, planning
7 1 costs including consultation fees, engineering fees,
7 2 architectural fees, and legal fees and all other expenses
7 3 reasonably associated with the administration of the district
7 4 and the fulfilling of the purposes of the district. The taxes
7 5 levied for this fund may also be used for the purpose of
7 6 paying maintenance expenses of improvements or
7 7 self=liquidating improvements for a specified length of time
7 8 with one or more options to renew if such is clearly stated in
7 9 the petition which requests the council to authorize
7 10 construction of the improvement or self=liquidating
7 11 improvement, whether or not such petition is combined with the
7 12 petition requesting creation of a district. Parcels of
7 13 property which are assessed as residential property for
7 14 property tax purposes are exempt from the tax levied under
7 15 this section except residential properties within a duly
7 16 designated historic district and residential properties within
7 17 a certified cultural and entertainment district. A tax levied
7 18 under this section is not subject to the levy limitation in
7 19 section 384.1.
7 20 Sec. 14. Section 386.9, Code 2007, is amended to read as
7 21 follows:
7 22 386.9 CAPITAL IMPROVEMENT TAX.
7 23 A city may establish a capital improvement fund for a
7 24 district and may certify taxes, not to exceed the rate
7 25 established by the ordinance creating the district, or any
7 26 subsequent amendment thereto, each year to be levied for the
7 27 fund against all of the property in the district, for the
7 28 purpose of accumulating moneys for the financing or payment of
7 29 a part or all of the costs of any improvement or self=
7 30 liquidating improvement or for the financing or payment of
7 31 operational costs associated with the operation of a certified
7 32 cultural and entertainment district. However, parcels of
7 33 property which are assessed as residential property for
7 34 property tax purposes are exempt from the tax levied under
7 35 this section except residential properties within a duly
8 1 designated historic district and residential properties within
8 2 a certified cultural and entertainment district. A tax levied
8 3 under this section is not subject to the levy limitations in
8 4 section 384.1 or 384.7.
8 5 Sec. 15. Section 386.10, Code 2007, is amended to read as
8 6 follows:
8 7 386.10 DEBT SERVICE TAX.
8 8 A city shall establish a self=supported municipal
8 9 improvement district debt service fund whenever any
8 10 self=supported municipal improvement district bonds are issued
8 11 and outstanding, other than revenue bonds, and shall certify
8 12 taxes to be levied against all of the property in the district
8 13 for the debt service fund in the amount necessary to pay
8 14 interest as it becomes due and the amount necessary to pay, or
8 15 to create a sinking fund to pay, the principal at maturity of
8 16 all self=supported municipal improvement district bonds as
8 17 authorized in section 386.11, issued by the city. However,
8 18 parcels of property which are assessed as residential property
8 19 for property tax purposes at the time of the issuance of the
8 20 bonds are exempt from the tax levied under this section until
8 21 the parcels are no longer assessed as residential property or
8 22 until the residential properties are designated as a part of
8 23 an historic district or a certified cultural and entertainment
8 24 district.
8 25 Sec. 16. NEW SECTION. 422.11T ART CONTRIBUTION TAX
8 26 CREDIT.
8 27 1. The taxes imposed under this division, less the credits
8 28 allowed under section 422.12, shall be reduced by an art
8 29 contribution tax credit as provided in this section. A
8 30 taxpayer who is an artist of a work of fine art or an author
8 31 of written materials who makes a charitable contribution is
8 32 eligible for the tax credit. The amount of the credit equals
8 33 the fair market value of the work of fine art or written
8 34 materials which is the subject of the charitable contribution.
8 35 If the taxpayer elects to claim the tax credit under this
9 1 section, the taxpayer shall not deduct for Iowa tax purposes
9 2 any amount of the charitable contribution of the fine art or
9 3 written materials upon which the tax credit is based.
9 4 2. Any credit in excess of the tax liability for the tax
9 5 year is not refundable but may be credited to the tax
9 6 liability for the following ten years or until depleted,
9 7 whichever is the earlier.
9 8 3. For purposes of this section:
9 9 a. "Artist" and "fine art" mean the same as those terms
9 10 are defined in section 556D.1.
9 11 b. "Charitable contribution" means the same as that term
9 12 is defined in section 170(c) of the Internal Revenue Code,
9 13 excluding a contribution or gift to or for the use of a public
9 14 entity described in paragraph (1) of section 170(c).
9 15 c. "Fair market value" means the appraised value of the
9 16 fine art or written materials as established pursuant to
9 17 requirements set by rules adopted by the director.
9 18 d. "Written materials" means an article, book, essay,
9 19 poetry, play, script, or story written by an individual on a
9 20 professional, freelance basis and not as an employee of
9 21 another person.
9 22 Sec. 17. RETROACTIVE APPLICABILITY DATE. The section of
9 23 this division enacting section 422.11T applies retroactively
9 24 to January 1, 2007, for tax years beginning on or after that
9 25 date.
9 26 DIVISION III
9 27 RECREATIONAL TRAILS
9 28 Sec. 18. Section 8.57, subsection 6, paragraph e, Code
9 29 2007, is amended to read as follows:
9 30 e. Notwithstanding provisions to the contrary in sections
9 31 99D.17 and 99F.11, for the fiscal year beginning July 1, 2000,
9 32 and for each fiscal year thereafter, not more than a total of
9 33 sixty million dollars shall be deposited in the general fund
9 34 of the state in any fiscal year pursuant to sections 99D.17
9 35 and 99F.11. The next fifteen million dollars of the moneys
10 1 directed to be deposited in the general fund of the state in a
10 2 fiscal year pursuant to sections 99D.17 and 99F.11 shall be
10 3 deposited in the vision Iowa fund created in section 12.72 for
10 4 the fiscal year beginning July 1, 2000, and for each fiscal
10 5 year through the fiscal year beginning July 1, 2019. The next
10 6 five million dollars of the moneys directed to be deposited in
10 7 the general fund of the state in a fiscal year pursuant to
10 8 sections 99D.17 and 99F.11 shall be deposited in the school
10 9 infrastructure fund created in section 12.82 for the fiscal
10 10 year beginning July 1, 2000, and for each fiscal year
10 11 thereafter until the principal and interest on all bonds
10 12 issued by the treasurer of state pursuant to section 12.81 are
10 13 paid, as determined by the treasurer of state. The next two
10 14 million seven hundred thousand dollars of the moneys directed
10 15 to be deposited in the general fund of the state in a fiscal
10 16 year pursuant to sections 99D.17 and 99F.11 shall be deposited
10 17 in the recreational trail connectivity fund created in section
10 18 12.102 for the fiscal year beginning July 1, 2007, and for
10 19 each fiscal year thereafter through the fiscal year beginning
10 20 July 1, 2027. The total moneys in excess of the moneys
10 21 deposited in the general fund of the state, the vision Iowa
10 22 fund, and the school infrastructure fund, and the recreational
10 23 trail connectivity fund in a fiscal year shall be deposited in
10 24 the rebuild Iowa infrastructure fund and shall be used as
10 25 provided in this section, notwithstanding section 8.60.
10 26 If the total amount of moneys directed to be deposited in
10 27 the general fund of the state under sections 99D.17 and 99F.11
10 28 in a fiscal year is less than the total amount of moneys
10 29 directed to be deposited in the vision Iowa fund and, the
10 30 school infrastructure fund, and the recreational trail
10 31 connectivity fund in the fiscal year pursuant to this
10 32 paragraph "e", the difference shall be paid from lottery
10 33 revenues in the manner provided in section 99G.39, subsection
10 34 3.
10 35 Sec. 19. NEW SECTION. 12.101 GENERAL AND SPECIFIC
11 1 BONDING POWERS == RECREATIONAL TRAIL CONNECTIVITY PROGRAM.
11 2 1. The treasurer of state may issue bonds upon the request
11 3 of the economic development board created in section 15.103
11 4 and do all things necessary with respect to the purposes of
11 5 the recreational trail connectivity fund. The treasurer of
11 6 state shall have all of the powers which are necessary to
11 7 issue and secure bonds and carry out the purposes of the fund.
11 8 The treasurer of state may issue bonds in principal amounts
11 9 which, in the opinion of the board, are necessary to provide
11 10 sufficient funds for the recreational trail connectivity fund
11 11 created in section 12.102, the payment of interest on the
11 12 bonds, the establishment of reserves to secure the bonds, the
11 13 costs of issuance of the bonds, other expenditures of the
11 14 treasurer of state incident to and necessary or convenient to
11 15 carry out the bond issue for the fund, and all other
11 16 expenditures of the board necessary or convenient to
11 17 administer the fund; provided, however, excluding the issuance
11 18 of refunding bonds, bonds issued pursuant to this section
11 19 shall not be issued in an aggregate principal amount which
11 20 exceeds thirty=four million dollars. The bonds are investment
11 21 securities and negotiable instruments within the meaning of
11 22 and for purposes of the uniform commercial code, chapter 554.
11 23 2. Bonds issued under this section are payable solely and
11 24 only out of the moneys, assets, or revenues of the
11 25 recreational trail connectivity fund and any bond reserve
11 26 funds established pursuant to section 12.102, all of which may
11 27 be deposited with trustees or depositories in accordance with
11 28 bond or security documents and pledged by the board to the
11 29 payment thereof. Bonds issued under this section shall
11 30 contain on their face a statement that the bonds do not
11 31 constitute an indebtedness of the state. The treasurer of
11 32 state shall not pledge the credit or taxing power of this
11 33 state or any political subdivision of this state or make bonds
11 34 issued pursuant to this section payable out of any moneys
11 35 except those in the recreational trail connectivity fund.
12 1 3. The proceeds of bonds issued by the treasurer of state
12 2 and not required for immediate disbursement may be deposited
12 3 with a trustee or depository as provided in the bond documents
12 4 and invested or reinvested in any investment as directed by
12 5 the board and specified in the trust indenture, resolution, or
12 6 other instrument pursuant to which the bonds are issued
12 7 without regard to any limitation otherwise provided by law.
12 8 4. The bonds shall be:
12 9 a. In a form, issued in denominations, executed in a
12 10 manner, and payable over terms and with rights of redemption,
12 11 and be subject to such other terms and conditions as
12 12 prescribed in the trust indenture, resolution, or other
12 13 instrument authorizing their issuance.
12 14 b. Negotiable instruments under the laws of the state and
12 15 may be sold at prices, at public or private sale, and in a
12 16 manner, as prescribed by the treasurer of state. Chapters
12 17 73A, 74, 74A, and 75 do not apply to the sale or issuance of
12 18 the bonds.
12 19 c. Subject to the terms, conditions, and covenants
12 20 providing for the payment of the principal, redemption
12 21 premiums, if any, interest, and other terms, conditions,
12 22 covenants, and protective provisions safeguarding payment, not
12 23 inconsistent with this section and as determined by the trust
12 24 indenture, resolution, or other instrument authorizing their
12 25 issuance.
12 26 5. The bonds are securities in which public officers and
12 27 bodies of this state; political subdivisions of this state;
12 28 insurance companies and associations and other persons
12 29 carrying on an insurance business; banks, trust companies,
12 30 savings associations, savings and loan associations, and
12 31 investment companies; administrators, guardians, executors,
12 32 trustees, and other fiduciaries; and other persons authorized
12 33 to invest in bonds or other obligations of the state, may
12 34 properly and legally invest funds, including capital, in their
12 35 control or belonging to them.
13 1 6. Bonds must be authorized by a trust indenture,
13 2 resolution, or other instrument of the treasurer of state
13 3 approved by the board. However, a trust indenture,
13 4 resolution, or other instrument authorizing the issuance of
13 5 bonds may delegate to an officer of the board the power to
13 6 negotiate and fix the details of an issue of bonds.
13 7 7. Neither the resolution, trust agreement, nor any other
13 8 instrument by which a pledge is created needs to be recorded
13 9 or filed under the Iowa uniform commercial code, chapter 554,
13 10 to be valid, binding, or effective.
13 11 8. Bonds issued under the provisions of this section are
13 12 declared to be issued for a general public and governmental
13 13 purpose and all bonds issued under this section shall be
13 14 exempt from taxation by the state of Iowa and the interest on
13 15 the bonds shall be exempt from the state income tax and the
13 16 state inheritance and estate tax.
13 17 9. Subject to the terms of any bond documents, moneys in
13 18 the recreational trail connectivity fund may be expended for
13 19 administration expenses.
13 20 10. The treasurer of state may issue bonds for the purpose
13 21 of refunding any bonds or notes issued pursuant to this
13 22 section then outstanding, including the payment of any
13 23 redemption premiums thereon and any interest accrued or to
13 24 accrue to the date of redemption of the outstanding bonds or
13 25 notes. Until the proceeds of bonds issued for the purpose of
13 26 refunding outstanding bonds or notes are applied to the
13 27 purchase or retirement of outstanding bonds or notes or the
13 28 redemption of outstanding bonds or notes, the proceeds may be
13 29 placed in escrow and be invested and reinvested in accordance
13 30 with the provisions of this section. The interest, income,
13 31 and profits earned or realized on an investment may also be
13 32 applied to the payment of the outstanding bonds or notes to be
13 33 refunded by purchase, retirement, or redemption. After the
13 34 terms of the escrow have been fully satisfied and carried out,
13 35 any balance of proceeds and interest earned or realized on the
14 1 investments may be returned to the board for deposit in the
14 2 recreational trail connectivity fund established in section
14 3 12.102. All refunding bonds shall be issued and secured and
14 4 subject to the provisions of this chapter in the same manner
14 5 and to the same extent as other bonds issued pursuant to this
14 6 section.
14 7 Sec. 20. NEW SECTION. 12.102 RECREATIONAL TRAIL
14 8 CONNECTIVITY FUND AND RESERVE FUNDS.
14 9 1. A recreational trail connectivity fund is created as a
14 10 separate and distinct fund in the state treasury. The moneys
14 11 in the fund are appropriated to the economic development board
14 12 for purposes of the recreational trail connectivity program
14 13 established in section 465B.5. Moneys in the fund shall not
14 14 be subject to appropriation for any other purpose by the
14 15 general assembly, but shall be used only for the purposes of
14 16 the recreational trail connectivity fund. The treasurer of
14 17 state shall act as custodian of the fund and disburse moneys
14 18 contained in the fund as directed by the board, including
14 19 automatic disbursements of funds received pursuant to the
14 20 terms of bond indentures and documents and security provisions
14 21 to trustees. The fund shall be administered by the board
14 22 which shall make expenditures from the fund consistent with
14 23 the purposes of the recreational trail connectivity program
14 24 without further appropriation. An applicant under the
14 25 recreational trail connectivity program shall not receive more
14 26 than five million dollars in financial assistance from the
14 27 fund.
14 28 2. Revenue for the recreational trail connectivity fund
14 29 shall include but is not limited to the following, which shall
14 30 be deposited with the treasurer of state or the treasurer's
14 31 designee as provided by any bond or security documents and
14 32 credited to the fund:
14 33 a. The proceeds of bonds issued to capitalize and pay the
14 34 costs of the fund and investment earnings on the proceeds.
14 35 b. Interest attributable to investment of money in the
15 1 fund or an account of the fund.
15 2 c. Moneys in the form of a devise, gift, bequest,
15 3 donation, federal or other grant, reimbursement, repayment,
15 4 judgment, transfer, payment, or appropriation from any source
15 5 intended to be used for the purposes of the fund.
15 6 3. Moneys in the recreational trail connectivity fund are
15 7 not subject to section 8.33. Notwithstanding section 12C.7,
15 8 subsection 2, interest or earnings on moneys in the fund shall
15 9 be credited to the fund.
15 10 4. a. The treasurer of state may create and establish one
15 11 or more special funds, to be known as "bond reserve funds", to
15 12 secure one or more issues of bonds or notes issued pursuant to
15 13 section 12.101. The treasurer of state shall pay into each
15 14 bond reserve fund any moneys appropriated and made available
15 15 by the state or the treasurer for the purpose of the fund, any
15 16 proceeds of sale of notes or bonds to the extent provided in
15 17 the resolutions authorizing their issuance, and any other
15 18 moneys which may be available to the treasurer for the purpose
15 19 of the fund from any other sources. All moneys held in a bond
15 20 reserve fund, except as otherwise provided in this chapter,
15 21 shall be used as required solely for the payment of the
15 22 principal of bonds secured in whole or in part by the fund or
15 23 of the sinking fund payments with respect to the bonds, the
15 24 purchase or redemption of the bonds, the payment of interest
15 25 on the bonds, or the payments of any redemption premium
15 26 required to be paid when the bonds are redeemed prior to
15 27 maturity.
15 28 b. Moneys in a bond reserve fund shall not be withdrawn
15 29 from it at any time in an amount that will reduce the amount
15 30 of the fund to less than the bond reserve fund requirement
15 31 established for the fund, as provided in this subsection,
15 32 except for the purpose of making, with respect to bonds
15 33 secured in whole or in part by the fund, payment when due of
15 34 principal, interest, redemption premiums, and the sinking fund
15 35 payments with respect to the bonds for the payment of which
16 1 other moneys of the treasurer are not available. Any income
16 2 or interest earned by, or incremental to, a bond reserve fund
16 3 due to the investment of it may be transferred by the
16 4 treasurer to other funds or accounts to the extent the
16 5 transfer does not reduce the amount of that bond reserve fund
16 6 below the bond reserve fund requirement for it.
16 7 c. The treasurer of state shall not at any time issue
16 8 bonds, secured in whole or in part by a bond reserve fund, if,
16 9 upon the issuance of the bonds, the amount in the bond reserve
16 10 fund will be less than the bond reserve fund requirement for
16 11 the fund, unless the treasurer of state at the time of
16 12 issuance of the bonds deposits in the fund from the proceeds
16 13 of the bonds issued or from other sources an amount which,
16 14 together with the amount then in the fund, will not be less
16 15 than the bond reserve fund requirement for the fund. For the
16 16 purposes of this subsection, the term "bond reserve fund
16 17 requirement" means, as of any particular date of computation,
16 18 an amount of money, as provided in the resolutions authorizing
16 19 the bonds with respect to which the fund is established.
16 20 d. To assure the continued solvency of any bonds secured
16 21 by the bond reserve fund, provision is made in paragraph "c"
16 22 for the accumulation in each bond reserve fund of an amount
16 23 equal to the bond reserve fund requirement for the fund. In
16 24 order further to assure maintenance of the bond reserve funds,
16 25 the treasurer of state shall, on or before January 1 of each
16 26 calendar year, make and deliver to the governor the treasurer
16 27 of state's certificate stating the sum, if any, required to
16 28 restore each bond reserve fund to the bond reserve fund
16 29 requirement for that fund. Within thirty days after the
16 30 beginning of the session of the general assembly next
16 31 following the delivery of the certificate, the governor shall
16 32 submit to both houses printed copies of a budget including the
16 33 sum, if any, required to restore each bond reserve fund to the
16 34 bond reserve fund requirement for that fund. Any sums
16 35 appropriated by the general assembly and paid to the treasurer
17 1 of state pursuant to this subsection shall be deposited by the
17 2 treasurer of state in the applicable bond reserve fund.
17 3 Sec. 21. NEW SECTION. 12.103 PLEDGES.
17 4 It is the intention of the general assembly that a pledge
17 5 made in respect of bonds or notes shall be valid and binding
17 6 from the time the pledge is made, that the money or property
17 7 so pledged and received after the pledge by the treasurer of
17 8 state shall immediately be subject to the lien of the pledge
17 9 without physical delivery or further act, and that the lien of
17 10 the pledge shall be valid and binding as against all parties
17 11 having claims of any kind in tort, contract, or otherwise
17 12 against the treasurer of state whether or not the parties have
17 13 notice of the lien.
17 14 Sec. 22. NEW SECTION. 12.104 PROJECTS.
17 15 The economic development board may undertake a project for
17 16 two or more applicants jointly or for any combination of
17 17 applicants, and may combine for financing purposes, with the
17 18 consent of all of the applicants which are involved, the
17 19 project and some or all future projects of any applicant, and
17 20 sections 12.101, 12.102, and 12.103, this section, and
17 21 sections 12.105 and 12.106 apply to and for the benefit of the
17 22 economic development board and the joint applicants. However,
17 23 the money set aside in a fund or funds pledged for any series
17 24 or issue of bonds or notes shall be held for the sole benefit
17 25 of the series or issue separate and apart from money pledged
17 26 for another series or issue of bonds or notes of the treasurer
17 27 of state. To facilitate the combining of projects, bonds or
17 28 notes may be issued in series under one or more resolutions or
17 29 trust agreements and may be fully open=ended, thus providing
17 30 for the unlimited issuance of additional series, or partially
17 31 open=ended, limited as to additional series.
17 32 Sec. 23. NEW SECTION. 12.105 LIMITATIONS.
17 33 Bonds or notes issued pursuant to section 12.101 are not
17 34 debts of the state, or of any political subdivision of the
17 35 state, and do not constitute a pledge of the faith and credit
18 1 of the state or a charge against the general credit or general
18 2 fund of the state. The issuance of any bonds or notes
18 3 pursuant to section 12.101 by the treasurer of state does not
18 4 directly, indirectly, or contingently obligate the state or a
18 5 political subdivision of the state to apply moneys from, or to
18 6 levy or pledge any form of taxation whatever, to the payment
18 7 of the bonds or notes. Bonds and notes issued under section
18 8 12.101 are payable solely and only from the sources and
18 9 special fund provided in section 12.102.
18 10 Sec. 24. NEW SECTION. 12.106 CONSTRUCTION.
18 11 Sections 12.101 through 12.105, being necessary for the
18 12 welfare of this state and its inhabitants, shall be liberally
18 13 construed to effect its purposes.
18 14 Sec. 25. Section 465B.2, subsection 3, unnumbered
18 15 paragraph 1, Code 2007, is amended to read as follows:
18 16 The state department of transportation may enter into
18 17 contracts for the preparation of the trails plan. The
18 18 department shall involve the department of natural resources,
18 19 the Iowa department of economic development, and the
18 20 department of cultural affairs in the preparation of the plan.
18 21 The recommendations and comments of organizations representing
18 22 different types of trail users and others with interests in
18 23 this program shall also be incorporated in the preparation of
18 24 the trails plan and shall be submitted with the plan to the
18 25 general assembly. The plan shall be submitted to the general
18 26 assembly no later than January 15, 1988. Existing trail
18 27 projects involving acquisition or development may receive
18 28 funding prior to the completion of the trails plan.
18 29 Sec. 26. NEW SECTION. 465B.5 RECREATIONAL TRAIL
18 30 CONNECTIVITY PROGRAM.
18 31 The state department of transportation, in consultation
18 32 with the department of economic development, the department of
18 33 natural resources, and the department of cultural affairs,
18 34 shall establish and administer a recreational trail
18 35 connectivity program. Financial assistance under the program
19 1 shall take the form of grants and shall be provided from
19 2 moneys in the recreational trail connectivity fund created in
19 3 section 12.102. A city or county may apply to the department
19 4 for a grant under the program. Any money distributed under
19 5 the program shall be used for purposes of building
19 6 recreational trails that link two or more cities, economic
19 7 tourism bases, Iowa great places identified under the Iowa
19 8 great places program under section 303.3C, or cultural and
19 9 entertainment districts certified pursuant to section 303.3B.
19 10 Moneys distributed under the program shall also be used for
19 11 purposes of building recreational trails that link an existing
19 12 recreational trail to another recreational trail, a cultural
19 13 and entertainment district certified pursuant to section
19 14 303.3B, a state park, or a historic site as defined in section
19 15 303.2. Moneys distributed under the program may be used for
19 16 purposes of building an equestrian or snowmobile trail that
19 17 runs parallel to a recreational trail. The department shall
19 18 adopt rules pursuant to chapter 17A for administering the
19 19 program. For purposes of this section, "economic tourism
19 20 base" means a business located outside the city limits of an
19 21 incorporated city if the business generates revenue from
19 22 tourism=related operations.
19 23 Sec. 27. APPROPRIATION. There is appropriated from the
19 24 general fund of the state to the department of economic
19 25 development for the fiscal year beginning July 1, 2007, and
19 26 ending June 30, 2008, the following amount, or so much thereof
19 27 as is necessary, to be used for the purposes designated:
19 28 For purposes of marketing the recreational trails in the
19 29 state:
19 30 .................................................. $ 100,000
19 31 DIVISION IV
19 32 WORKFORCE TRAINING
19 33 Sec. 28. NEW SECTION. 260H.101 IOWA BASIC EDUCATION AND
19 34 SKILLS TRAINING PROGRAM.
19 35 1. The division of community colleges and workforce
20 1 preparation of the department of education shall establish and
20 2 administer an Iowa basic education and skills training
20 3 program. Under the Iowa basic education and skills training
20 4 program, a person enrolled in a certificate program at a
20 5 community college may receive tuition assistance, provided
20 6 that the criteria of this section are met.
20 7 2. In order to receive tuition assistance, the certificate
20 8 program in which the person is enrolled must be approved for
20 9 tuition assistance by the division of community colleges and
20 10 workforce preparation of the department of education. To be
20 11 approved, a program must be a certificate program that offers
20 12 a credential; a state, national, or locally recognized
20 13 certificate; preparation for a professional examination or
20 14 licensure; or an endorsement to an existing credential or
20 15 license; or represent recognized skill standards defined by
20 16 business and industry.
20 17 3. A person who resides in a qualified census tract, as
20 18 determined by the most recent federal census, resides in a
20 19 federal historical underutilized business zone, or resides in
20 20 a city or county approved pursuant to subsection 6 is eligible
20 21 for tuition assistance in the following amounts if the
20 22 criteria are met:
20 23 a. Fifty percent tuition assistance if the person has an
20 24 income of more than sixty=five percent but less than eighty
20 25 percent of the county median family income.
20 26 b. One hundred percent tuition assistance if the person
20 27 has an income of sixty=five percent or less of the county
20 28 median family income.
20 29 4. Eligible program expenses that may be reimbursed
20 30 through tuition assistance include costs for tuition, text
20 31 books, assessments, work readiness certificate examinations,
20 32 required physical examinations, and licensure examinations.
20 33 5. The division of community colleges and workforce
20 34 preparation of the department of education shall adopt rules
20 35 pursuant to chapter 17A for purposes of administering this
21 1 chapter.
21 2 6. A city or county may apply for approval under
21 3 subsection 3. In order to be approved, a city of any size or
21 4 a county must have designated and established an enterprise
21 5 zone pursuant to section 15E.194, subsection 5.
21 6 Sec. 29. NEW SECTION. 260H.102 WORKFORCE SERVICES AND
21 7 CUSTOMIZED TRAINING.
21 8 A community college may establish a partnership with the
21 9 department of workforce development to provide labor market
21 10 information regarding demand occupations, assistance in
21 11 developing customized training partnerships with local area
21 12 employers, or placement, retention, and advancement services.
21 13 Moneys received by a community college pursuant to section
21 14 260H.103 may be used to support partnerships entered into
21 15 pursuant to this section.
21 16 Sec. 30. NEW SECTION. 260H.103 FUNDING.
21 17 1. There is appropriated from the general fund of the
21 18 state to the department of education for each fiscal year,
21 19 three million dollars to be used by community colleges for
21 20 purposes of this chapter.
21 21 2. The department shall distribute one hundred thousand
21 22 dollars to each community college to be used for purposes of
21 23 this chapter.
21 24 3. Any moneys remaining after distributions made pursuant
21 25 to subsection 2 shall be distributed to each community college
21 26 in an amount based on the proportional share of the three=year
21 27 rolling average of full=time equivalent enrollments of all
21 28 community colleges as determined by the division of community
21 29 colleges and workforce preparation of the department of
21 30 education.
21 31 4. A community college shall not use more than twenty
21 32 thousand dollars each fiscal year from moneys distributed
21 33 pursuant to this section for providing intake and career
21 34 assessment services as well as program monitoring and post
21 35 program follow=up activities related to the provisions of this
22 1 chapter.
22 2 DIVISION V
22 3 MAIN STREET DEVELOPMENT
22 4 Sec. 31. MAIN STREET PROGRAM == APPROPRIATION. For the
22 5 fiscal year beginning July 1, 2007, and ending June 30, 2008,
22 6 there is appropriated from the general fund of the state to
22 7 the department of economic development $1,314,876 for purposes
22 8 of the main street program.
22 9 EXPLANATION
22 10 DIVISION I == This division of the bill relates to the
22 11 historic preservation and cultural and entertainment district
22 12 tax credits.
22 13 Currently, a person receiving a historic preservation and
22 14 cultural and entertainment district tax credit may receive a
22 15 tax credit refund at a discounted value for the amount in
22 16 excess of the taxpayer's tax liability in the year that the
22 17 tax credit is claimed.
22 18 The bill eliminates the discounting of the value of a
22 19 refund and allows the entire value of the tax credit to be
22 20 refunded. In addition, the bill allows a taxpayer, in lieu of
22 21 claiming a refund, to elect to have the overpayment shown on
22 22 the person's final, completed return credited to the tax
22 23 liability for the following year. The bill makes conforming
22 24 amendments.
22 25 Currently, the total amount of historic preservation and
22 26 cultural and entertainment district tax credits that may be
22 27 approved for a fiscal year shall not exceed $2.4 million. For
22 28 the fiscal year 2005=2006, an additional $4 million of tax
22 29 credits may be approved each fiscal year for purposes of
22 30 projects located in certified cultural and entertainment
22 31 districts.
22 32 The bill increases the amount of tax credits that may be
22 33 approved for FY 2007=2008 to $10 million, for FY 2008=2009 to
22 34 $15 million, and for FY 2009=2010, and each fiscal year
22 35 thereafter, to $20 million, less moneys appropriated to the
23 1 department of cultural affairs for administrative purposes.
23 2 The bill provides that, of the tax credits approved each
23 3 fiscal year, 10 percent of the dollar amount of the tax
23 4 credits shall be allocated for purposes of new projects with
23 5 qualified costs of $500,000 or less, and 40 percent of the
23 6 dollar amount of tax credits shall be allocated for purposes
23 7 of new projects located in cultural and entertainment
23 8 districts or identified in Iowa great places agreements.
23 9 The bill provides that with the exception of tax credits
23 10 entered into prior to July 1, 2007, tax credits shall not be
23 11 reserved for more than three years.
23 12 The bill appropriates $150,000 each fiscal year for FY
23 13 2007=2008, and each fiscal year thereafter, from the general
23 14 fund of the state to the department of cultural affairs for
23 15 purposes of administrative costs.
23 16 The bill provides that the department shall reissue tax
23 17 credit certificates held by the original tax credit
23 18 certificate recipient for certain dates. The bill provides
23 19 that certificates that have been sold since issuance shall not
23 20 be reissued.
23 21 The bill provides that, in order of original reservation
23 22 dates, the department shall modify the reservation date of
23 23 reserved tax credits based on the availability of additional
23 24 moneys for tax credits.
23 25 This division of the bill applies to tax credits applied
23 26 for or reserved prior to July 1, 2007.
23 27 DIVISION II == This division of the bill relates to arts
23 28 and culture.
23 29 The bill provides that an art dealer or artist shall be
23 30 entitled to a refund of the sales tax paid for the sale of
23 31 fine art when the fine art is sold at a place of business
23 32 located within a certified cultural and entertainment district
23 33 during the first seven years of certification of the district.
23 34 The sales tax refund applies to fine art sold on or after July
23 35 1, 2007.
24 1 Currently, a city is allowed to create a self=supported
24 2 municipal improvement district comprised of areas zoned for
24 3 commercial or industrial use and property within a duly
24 4 designated historic district. The bill expands the type of
24 5 property that may be included in a district to cultural and
24 6 entertainment districts certified by the department of
24 7 cultural affairs. The bill provides that a self=supported
24 8 municipal improvement district may be comprised of property in
24 9 a certified cultural and entertainment district the owners of
24 10 which have a present or potential benefit from the expenditure
24 11 of moneys for purposes of the operational costs associated
24 12 with the operation of the certified cultural and entertainment
24 13 district. The bill provides that residential property within
24 14 a certified cultural and entertainment district may be taxed
24 15 for purposes of an operation tax, a capital improvement tax,
24 16 and a debt service tax for a self=supported municipal
24 17 improvement district.
24 18 The bill provides for an individual income tax credit equal
24 19 to the value of a charitable contribution of a work of fine
24 20 art or written materials by the artist or author. The credit
24 21 is in lieu of the present charitable contribution tax
24 22 deduction. The charitable contribution is generally one made
24 23 to a nonprofit, tax=exempt organization which is operated for
24 24 religious, charitable, scientific, literary, or educational
24 25 purposes, and does not include gifts for the use of
24 26 governmental entities. This provision of the division applies
24 27 retroactively to January 1, 2007, for tax years beginning on
24 28 or after that date.
24 29 DIVISION III == This division of the bill relates to
24 30 recreational trails.
24 31 The bill appropriates from the general fund of the state to
24 32 the department of economic development for the fiscal year
24 33 beginning July 1, 2007, and ending June 30, 2008, $100,000 for
24 34 purposes of marketing the recreational trails in the state.
24 35 The bill eliminates outdated provisions of the statewide
25 1 trails development program.
25 2 The bill requires the department of economic development to
25 3 establish and administer a recreational trail connectivity
25 4 program. The bill provides that financial assistance shall be
25 5 in the form of grants and shall be provided from moneys in the
25 6 recreational trail connectivity fund. The bill provides that
25 7 a city or county may apply to the department for a grant under
25 8 the program. The bill provides that any money distributed
25 9 under the program shall be used for purposes of building
25 10 recreational trails that link two or more cities, economic
25 11 tourism bases, Iowa great places identified under the Iowa
25 12 great places program, or certified cultural and entertainment
25 13 districts.
25 14 The bill allows the treasurer of state to issue bonds for
25 15 purposes of generating funding for the recreational trail
25 16 connectivity fund. The treasurer of state shall have all of
25 17 the powers which are necessary to issue and secure bonds and
25 18 carry out the purposes of the fund. The bill allows the
25 19 treasurer of state to issue bonds in principal amounts which,
25 20 in the opinion of the board, are necessary to provide
25 21 sufficient funds for the recreational trail connectivity fund,
25 22 the payment of interest on the bonds, the establishment of
25 23 reserves to secure the bonds, the costs of issuance of the
25 24 bonds, other expenditures of the treasurer of state incident
25 25 to and necessary or convenient to carry out the bond issue for
25 26 the fund, and all other expenditures of the economic
25 27 development board necessary or convenient to administer the
25 28 fund; provided, however, excluding the issuance of refunding
25 29 bonds, bonds issued shall not be issued in an aggregate
25 30 principal amount which exceeds $34 million. The bill provides
25 31 that the bonds are investment securities and negotiable
25 32 instruments within the meaning of and for purposes of the
25 33 uniform commercial code, chapter 554. The bill provides that
25 34 the bonds are payable solely and only out of the moneys,
25 35 assets, or revenues of the recreational trail connectivity
26 1 fund and any bond reserve funds. The bill prohibits the
26 2 treasurer of state from pledging the credit or taxing power of
26 3 this state or any political subdivision of this state or
26 4 making bonds issued pursuant to new Code section 12.101
26 5 payable out of any moneys except those in the recreational
26 6 trail connectivity fund. The bill provides that the proceeds
26 7 of bonds issued by the treasurer of state and not required for
26 8 immediate disbursement may be deposited with a trustee or
26 9 depository as provided in the bond documents and invested or
26 10 reinvested in any investment as directed by the board and
26 11 specified in the trust indenture, resolution, or other
26 12 instrument pursuant to which the bonds are issued without
26 13 regard to any limitation otherwise provided by law. The bill
26 14 provides the form bonds shall take. The bill provides that
26 15 the bonds are declared to be issued for a general public and
26 16 governmental purpose and all bonds issued shall be exempt from
26 17 taxation by the state of Iowa and the interest on the bonds
26 18 shall be exempt from the state income tax and the state
26 19 inheritance and estate tax. The bill allows moneys in the
26 20 recreational trail connectivity fund to be expended for
26 21 administration expenses, subject to the terms of any bond
26 22 documents. The bill allows the treasurer of state to issue
26 23 bonds for the purpose of refunding any bonds or notes issued
26 24 then outstanding, including the payment of any redemption
26 25 premiums thereon and any interest accrued or to accrue to the
26 26 date of redemption of the outstanding bonds or notes.
26 27 The bill creates a recreational trail connectivity fund
26 28 established as a separate and distinct fund in the state
26 29 treasury. The bill provides that moneys in the fund are
26 30 appropriated to the economic development board for purposes of
26 31 the recreational trail connectivity program. The bill
26 32 provides that the treasurer of state shall act as custodian of
26 33 the fund and disburse moneys contained in the fund as directed
26 34 by the economic development board, including automatic
26 35 disbursements of funds received pursuant to the terms of bond
27 1 indentures and documents and security provisions to trustees.
27 2 The bill provides that an applicant under the recreational
27 3 trail connectivity program shall not receive more than $5
27 4 million in financial assistance from the fund. The bill
27 5 allows the treasurer of state to create and establish one or
27 6 more special funds, to be known as "bond reserve funds", to
27 7 secure one or more issues of bonds or notes.
27 8 The bill provides for the binding and valid nature of a
27 9 pledge made in respect of bonds or notes issued by the
27 10 treasurer of state.
27 11 The bill allows the economic development board to undertake
27 12 a project for two or more applicants jointly or for any
27 13 combination of applicants, and to combine for financing
27 14 purposes, with the consent of all of the applicants which are
27 15 involved, the project and some or all future projects of any
27 16 applicant.
27 17 The bill provides that bonds or notes issued are not debts
27 18 of the state, or of any political subdivision of the state,
27 19 and do not constitute a pledge of the faith and credit of the
27 20 state or a charge against the general credit or general fund
27 21 of the state.
27 22 The bill amends Code section 8.57 to provide that $2.7
27 23 million of gambling revenues shall be deposited in the
27 24 recreational trail connectivity fund for the fiscal year
27 25 beginning July 1, 2007, and for each fiscal year thereafter
27 26 through the fiscal year beginning July 1, 2027.
27 27 DIVISION IV == This division of the bill relates to
27 28 workforce training.
27 29 The bill allows certain persons enrolled in a certificate
27 30 program at a community college to receive tuition assistance
27 31 provided that certain criteria are met. The bill requires
27 32 that the program in which the person is enrolled must be
27 33 approved for tuition assistance by the division of community
27 34 colleges and workforce preparation of the department of
27 35 education. To be approved, a program must be a certificate
28 1 program that offers a credential; a state, national, or
28 2 locally recognized certificate; preparation for a professional
28 3 examination or licensure; or an endorsement to an existing
28 4 credential or license; or represent recognized skill standards
28 5 defined by business and industry. The bill allows for
28 6 different levels of tuition assistance based on residency
28 7 requirements and income levels. The bill identifies certain
28 8 program costs that are reimbursable through tuition
28 9 assistance. The bill requires the division of community
28 10 colleges and workforce preparation of the department of
28 11 education to administer the program.
28 12 The bill allows a community college to establish a
28 13 partnership with the department of workforce development to
28 14 provide labor market information regarding demand occupations,
28 15 assistance in developing customized training partnerships with
28 16 local area employers, or placement, retention, and advancement
28 17 services.
28 18 The bill appropriates from the general fund of the state to
28 19 the department of education for each fiscal year, $3 million
28 20 to be used by community colleges. The bill requires the
28 21 department to distribute $100,000 to each community college to
28 22 be used for purposes of the training program. The bill
28 23 provides that any remaining moneys shall be distributed to
28 24 each community college in an amount based on the proportional
28 25 share of the three=year rolling average of full=time
28 26 equivalent enrollments of all community colleges as determined
28 27 by the division of community colleges and workforce
28 28 preparation of the department of education. The bill
28 29 prohibits a community college from using more than $20,000
28 30 each fiscal year from the distributed moneys for providing
28 31 intake and career assessment services as well as program
28 32 monitoring and post program follow=up activities related to
28 33 the program.
28 34 DIVISION V == This division of the bill relates to the main
28 35 street program.
29 1 The bill provides that for FY 2007=2008 there is
29 2 appropriated from the general fund of the state to the
29 3 department of economic development $1.3 million for purposes
29 4 of the main street program.
29 5 LSB 1062SV 82
29 6 tm:rj/je/5