House File 659 - Introduced HOUSE FILE BY FORD Passed House, Date Passed Senate, Date Vote: Ayes Nays Vote: Ayes Nays Approved A BILL FOR 1 An Act creating a junior entrepreneur training assistance program 2 and providing a tax deduction and making an appropriation. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 2595HH 83 5 tw/nh/24 PAG LIN 1 1 Section 1. Section 15.313, subsection 2, Code 2009, is 1 2 amended by adding the following new paragraph: 1 3 NEW PARAGRAPH. h. To provide matching grants under the 1 4 junior entrepreneur training assistance program as provided in 1 5 section 15E.27. 1 6 Sec. 2. NEW SECTION. 15E.25 SHORT TITLE. 1 7 This division shall be known and may be cited as the 1 8 "Junior Entrepreneur Training Act". 1 9 Sec. 3. NEW SECTION. 15E.26 JUNIOR ENTREPRENEUR TRAINING 1 10 ASSISTANCE PROGRAM. 1 11 1. The department of economic development shall establish 1 12 a junior entrepreneur training assistance program to encourage 1 13 and assist private businesses and organizations to establish 1 14 junior entrepreneur training programs that would operate in 1 15 conjunction or cooperation with a local school district. 1 16 2. a. A junior entrepreneur training program established 1 17 by a private business or organization shall be designed to do 1 18 all of the following: 1 19 (1) Encourage interest in starting or operating a 1 20 business. 1 21 (2) Educate participants regarding the potential 1 22 advantages and rewards of self=employment. 1 23 (3) Engage business professionals and successful 1 24 entrepreneurs in introducing participants to the basics of 1 25 business ownership and management. 1 26 (4) Assist past participants in the program who start or 1 27 purchase a business in developing mentoring relationships with 1 28 successful local businesspersons. 1 29 b. The department shall give funding and assistance 1 30 priority to a junior entrepreneur training program that 1 31 concentrates its efforts on attracting participants who lack 1 32 significant exposure to entrepreneurship role models including 1 33 but not limited to persons from economically disadvantaged 1 34 backgrounds or populations traditionally underrepresented in 1 35 the local business community. 2 1 3. For purposes of an eligible taxpayer claiming an income 2 2 tax deduction pursuant to section 422.7 or 422.35, the 2 3 department shall, upon application by the junior entrepreneur 2 4 training program, certify any junior entrepreneur training 2 5 program that meets the criteria in subsection 2, paragraph 2 6 "b". 2 7 Sec. 4. NEW SECTION. 15E.27 FUNDING. 2 8 The department may provide a matching grant to a private 2 9 business or organization that establishes a junior 2 10 entrepreneur training program. A matching grant shall provide 2 11 one dollar for every two dollars in private matching moneys. 2 12 Sec. 5. NEW SECTION. 15E.28 RULES. 2 13 The department shall adopt rules pursuant to chapter 17A 2 14 necessary for the administration of this division. 2 15 Sec. 6. Section 422.7, Code 2009, is amended by adding the 2 16 following new subsection: 2 17 NEW SUBSECTION. 54. Subtract the amount of any 2 18 contribution made for the establishment or operation of a 2 19 junior entrepreneur training program certified by the 2 20 department of economic development pursuant to section 15E.26. 2 21 Sec. 7. Section 422.35, Code 2009, is amended by adding 2 22 the following new subsection: 2 23 NEW SUBSECTION. 25. Subtract the amount of any 2 24 contribution made for the establishment or operation of a 2 25 junior entrepreneur training program certified by the 2 26 department of economic development pursuant to section 15E.26. 2 27 Sec. 8. APPROPRIATION. There is appropriated from the 2 28 general fund of the state to the department of economic 2 29 development for the fiscal year beginning July 1, 2009, and 2 30 ending June 30, 2010, the following amount, or so much thereof 2 31 as is necessary, to be used for the purposes designated: 2 32 For providing matching grants pursuant to section 15E.27: 2 33 .................................................. $ 1,000,000 2 34 EXPLANATION 2 35 This bill creates a junior entrepreneur training assistance 3 1 program. 3 2 The bill provides that the department of economic 3 3 development shall establish a junior entrepreneur training 3 4 assistance program to encourage and assist private businesses 3 5 and organizations to establish junior entrepreneur training 3 6 programs that would operate in conjunction or cooperation with 3 7 a local school district. The bill provides that a junior 3 8 entrepreneur training program established by a private 3 9 business or organization shall be designed to encourage 3 10 interest in starting or operating a business, educate 3 11 participants regarding the potential advantages and rewards of 3 12 self=employment, engage business professionals and successful 3 13 entrepreneurs in introducing participants to the basics of 3 14 business ownership and management, and assist past 3 15 participants in the program who start or purchase a business 3 16 in developing mentoring relationships with successful local 3 17 businesspersons. The bill provides that the department shall 3 18 give funding and assistance priority to a junior entrepreneur 3 19 training program that concentrates its efforts on attracting 3 20 participants who lack significant exposure to entrepreneurship 3 21 role models including but not limited to persons from 3 22 economically disadvantaged backgrounds or populations 3 23 traditionally underrepresented in the local business 3 24 community. 3 25 The bill provides that the department may provide a 3 26 matching grant to a private business or organization that 3 27 establishes a junior entrepreneur training program. The bill 3 28 provides that the moneys for the matching grants shall be 3 29 provided from the strategic investment fund. 3 30 The bill provides for an individual or corporate tax 3 31 deduction for any contribution made for the establishment or 3 32 operation of a junior entrepreneur training program certified 3 33 by the department. The bill provides that the department 3 34 shall, upon application by the junior entrepreneur training 3 35 program, certify programs that concentrate efforts on 4 1 attracting participants who lack significant exposure to 4 2 entrepreneurship role models including but not limited to 4 3 persons from economically disadvantaged backgrounds or 4 4 populations traditionally underrepresented in the local 4 5 business community. 4 6 The bill appropriates from the general fund of the state to 4 7 the department of economic development for FY 2009=2010, the 4 8 amount of $1 million for providing matching grants under the 4 9 junior entrepreneur training assistance program. 4 10 LSB 2595HH 83 4 11 tw/nh/24