S.F. _____ H.F. _____ DIVISION I 1 IOWA PARTNERSHIP FOR ECONOMIC PROGRESS AND ECONOMIC PROGRESS 2 AUTHORITY 3 Section 1. Section 15.101, Code 2011, is amended by striking 4 the section and inserting in lieu thereof the following: 5 15.101 Findings and purpose —— partnership described. 6 1. The general assembly finds that economic development 7 is an important public purpose and that both the public 8 and private sectors have a shared interest in fostering the 9 economic vitality of the state. Therefore, it is the purpose 10 of this subchapter to implement economic development policy in 11 the state by means of a collaboration between government and 12 the private sector. 13 2. The collaboration shall involve the partnership for 14 economic progress, the economic progress authority, and the 15 economic progress corporation, all of which shall work together 16 to further economic development policy according to the 17 provisions of this subchapter. 18 Sec. 2. Section 15.102, Code 2011, is amended by adding the 19 following new subsections: 20 NEW SUBSECTION . 01. “Authority” means the economic progress 21 authority created in section 15.105. 22 NEW SUBSECTION . 1A. “Chief executive officer” means the 23 chief executive officer of the corporation. 24 NEW SUBSECTION . 2A. “Corporation” means the economic 25 progress corporation created pursuant to section 15.107. 26 NEW SUBSECTION . 4A. “Financial assistance” means assistance 27 provided only from the funds, rights, and assets legally 28 available to the authority and includes but is not limited to 29 assistance in the form of grants, loans, forgivable loans, and 30 royalty payments. 31 NEW SUBSECTION . 5A. “Partnership” means the collaboration 32 between the board, the authority, and the corporation as 33 described in section 15.101. 34 Sec. 3. Section 15.102, subsections 1 and 4, Code 2011, are 35 -1- LSB 2042XL (21) 84 tw/sc 1/ 40

S.F. _____ H.F. _____ amended to read as follows: 1 1. “Board” means the Iowa economic development board seven 2 members of the authority appointed by the governor and in whom 3 the powers of the authority are vested pursuant to section 4 15.105 . 5 4. “Director” means the director of the department 6 authority, appointed pursuant to section 15.106C, or the 7 director’s designee. 8 Sec. 4. Section 15.102, subsection 3, Code 2011, is amended 9 by striking the subsection. 10 Sec. 5. Section 15.103, Code 2011, is amended by striking 11 the section and inserting in lieu thereof the following: 12 15.103 Partnership for economic progress. 13 1. The partnership for economic progress is hereby created. 14 The partnership shall serve as an advisory body within state 15 government and shall function on a continuing basis for the 16 study and recommendation of solutions and policy alternatives 17 for issues arising in the area of economic development. 18 2. The powers of the partnership are vested in and shall 19 be exercised by seven members to be appointed by the governor. 20 To the extent possible, the governor shall appoint to the 21 membership of the partnership persons who are actively employed 22 in the private, for-profit sector of the economy or who 23 otherwise have substantial expertise in economic development. 24 3. Members of the partnership shall be appointed for 25 staggered terms of two years beginning and ending as provided 26 in section 69.19. A person appointed to fill a vacancy shall 27 serve only for the unexpired portion of the term. A member 28 is eligible for reappointment. A member of the authority 29 may be removed from office by the governor for misfeasance, 30 malfeasance, or willful neglect of duty or other just cause, 31 after notice and hearing, unless the notice and hearing is 32 expressly waived in writing. 33 4. Four members of the partnership constitute a quorum and 34 the affirmative vote of a majority of the appointed members 35 -2- LSB 2042XL (21) 84 tw/sc 2/ 40

S.F. _____ H.F. _____ is necessary for any action taken by the partnership. The 1 majority shall not include any member who has a conflict of 2 interest and a statement by a member of a conflict of interest 3 shall be conclusive for this purpose. A vacancy in the 4 membership does not impair the right of a quorum to exercise 5 all rights and perform all duties of the authority. 6 5. Members of the partnership shall receive a per diem as 7 described in section 7E.6 for each day spent in performance of 8 duties as members and shall be reimbursed for all actual and 9 necessary expenses incurred in the performance of duties as 10 members. 11 6. Members of the partnership shall give bond as required 12 for public officers in chapter 64. 13 7. The governor or, if the governor so designates, the 14 lieutenant governor shall serve as the chairperson of the 15 partnership. Members shall elect a vice chairperson and 16 secretary biannually, and other officers as they determine. 17 8. Meetings of the partnership shall be held at least 18 quarterly and may be held more frequently at the call of the 19 chairperson or when four or more members of the partnership so 20 request. 21 Sec. 6. Section 15.104, Code 2011, is amended by striking 22 the section and inserting in lieu thereof the following: 23 15.104 Duties and powers of the partnership. 24 The partnership created in section 15.103 shall have the 25 following duties and powers: 26 1. To call and hold meetings for the purposes described in 27 section 15.103, subsection 1. 28 2. To create and maintain records of the partnership’s 29 activities and recommendations. 30 3. To develop a strategic vision for economic development 31 in Iowa. The partnership shall submit this vision to the 32 authority and the general assembly by January 31 of each year 33 for their consideration. 34 Sec. 7. Section 15.105, Code 2011, is amended by striking 35 -3- LSB 2042XL (21) 84 tw/sc 3/ 40

S.F. _____ H.F. _____ the section and inserting in lieu thereof the following: 1 15.105 Economic progress authority. 2 1. The economic progress authority is created, and 3 constituted a public instrumentality and agency of the state 4 exercising public and essential governmental functions, to 5 undertake programs which implement economic development policy 6 in the state, and to undertake certain finance programs. 7 a. The powers of the authority are vested in and shall be 8 exercised by a board of seven voting members appointed by the 9 governor subject to confirmation by the senate. 10 b. There shall be four ex officio, nonvoting legislative 11 members consisting of the following: 12 (1) Two state senators, one appointed by the president of 13 the senate after consultation with the majority leader of the 14 senate and one appointed by the minority leader of the senate 15 from their respective parties. 16 (2) Two state representatives, one appointed by the speaker 17 and one appointed by the minority leader of the house of 18 representatives from their respective parties. 19 c. To the extent possible, the governor shall appoint 20 persons who are actively employed in the private, for-profit 21 sector of the economy or who otherwise have substantial 22 expertise in economic development. 23 2. Members of the authority shall be appointed for staggered 24 terms of four years beginning and ending as provided in section 25 69.19. A person appointed to fill a vacancy shall serve only 26 for the unexpired portion of the term. A member is eligible 27 for reappointment. A member of the authority may be removed 28 from office by the governor for misfeasance, malfeasance, or 29 willful neglect of duty or other just cause, after notice and 30 hearing, unless the notice and hearing is expressly waived in 31 writing. 32 3. Four members of the authority constitute a quorum, and 33 the affirmative vote of a majority of the appointed members is 34 necessary for any action taken by the authority. The majority 35 -4- LSB 2042XL (21) 84 tw/sc 4/ 40

S.F. _____ H.F. _____ shall not include any member who has a conflict of interest 1 and a statement by a member of a conflict of interest shall be 2 conclusive for this purpose. A vacancy in the membership does 3 not impair the right of a quorum to exercise all rights and 4 perform all duties of the authority. 5 4. Members of the authority are entitled to receive a 6 per diem as specified in section 7E.6 for each day spent in 7 performance of duties as members, and shall be reimbursed for 8 all actual and necessary expenses incurred in the performance 9 of duties as members. 10 5. Members of the authority and the director shall give bond 11 as required for public officers in chapter 64. 12 6. Meetings of the authority shall be held at the call of 13 the chairperson or when two members so request. 14 7. Members shall elect a chairperson and vice chairperson 15 annually, and other officers as they determine, but the 16 director shall serve as secretary to the authority. 17 8. The net earnings of the authority, beyond that necessary 18 for retirement of its notes, bonds, or other obligations, or to 19 implement the public purposes and programs herein authorized, 20 shall not inure to the benefit of any person other than the 21 state. Upon termination of the existence of the authority, 22 title to all property owned by the authority, including any 23 such net earnings of the authority, shall vest in the state. 24 The state reserves the right at any time to alter, amend, 25 repeal, or otherwise change the structure, organization, 26 programs, or activities of the authority, including the power 27 to terminate the authority, except that no law shall impair 28 the obligation of any contract or contracts entered into by 29 the authority to the extent that any such law would contravene 30 Article I, section 21, of the Constitution of the State of 31 Iowa, or Article I, section 10, of the Constitution of the 32 United States. 33 9. Members of the authority, or persons acting on behalf 34 of the authority while acting within the scope of their agency 35 -5- LSB 2042XL (21) 84 tw/sc 5/ 40

S.F. _____ H.F. _____ or employment, are not subject to personal liability resulting 1 from carrying out the powers and duties in this chapter. 2 10. The authority shall be the successor entity to the 3 economic development board and the department of economic 4 development which are hereby eliminated. The authority 5 shall assume all duties and responsibilities previously 6 assigned to the economic development board and the department 7 of economic development to the extent that such duties and 8 responsibilities are not otherwise assigned by the provisions 9 of this subchapter. 10 Sec. 8. Section 15.106, Code 2011, is amended by striking 11 the section and inserting in lieu thereof the following: 12 15.106 Conflicts of interest. 13 1. a. If a member or employee of the authority other than 14 the director of the authority has an interest, either direct or 15 indirect, in a contract to which the authority is, or is to be, 16 a party, the interest shall be disclosed to the authority in 17 writing and shall be set forth in the minutes of the authority. 18 b. The member or employee having the interest shall not 19 participate in any action of the authority with respect to 20 that contract. A violation of a provision of this subsection 21 is misconduct in office under section 721.2. However, a 22 resolution of the authority is not invalid because of a vote 23 cast by a member in violation of this subsection or of section 24 15.105, subsection 3, unless the vote was decisive in the 25 passage of the resolution. 26 c. For the purposes of this subsection, “action of the 27 authority with respect to that contract” means only an action 28 directly affecting a separate contract, and does not include an 29 action which benefits the general public or which affects all 30 or a substantial portion of the contracts included in a program 31 of the authority. 32 2. The director shall not have an interest in a bank or 33 other financial institution in which the funds of the authority 34 are, or are to be, deposited or which is, or is to be, acting 35 -6- LSB 2042XL (21) 84 tw/sc 6/ 40

S.F. _____ H.F. _____ as trustee or paying agent under a trust indenture to which 1 the authority is a party. The director shall not receive, 2 in addition to fixed salary or compensation, any money or 3 valuable thing, either directly or indirectly, or through any 4 substantial interest in any other corporation or business unit, 5 for negotiating, procuring, recommending, or aiding in any 6 purchase or sale of property, or loan, made by the authority, 7 nor shall the director be pecuniarily interested, either as 8 principal, coprincipal, agent, or beneficiary, either directly 9 or indirectly, or through any substantial interest in any other 10 corporation or business unit, in any such purchase, sale, or 11 loan. 12 Sec. 9. NEW SECTION . 15.106A General powers of the 13 authority. 14 1. The authority has any and all powers necessary and 15 convenient to carry out its purposes and duties and exercise 16 its specific powers, including but not limited to the power to: 17 a. Issue negotiable bonds and notes as provided in this 18 subchapter in order to finance its programs. 19 b. Sue and be sued in its own name. 20 c. Have and alter a corporate seal. 21 d. Make and alter bylaws for its management consistent with 22 the provisions of this chapter. 23 e. Make and execute agreements, contracts, and other 24 instruments of any and all types on such terms and conditions 25 as the authority may find necessary or convenient to the 26 purposes of the authority, with any public or private entity, 27 including but not limited to contracts for goods and services. 28 All political subdivisions, other public agencies, and state 29 departments and agencies may enter into contracts and otherwise 30 cooperate with the authority. 31 f. Adopt by rule pursuant to chapter 17A procedures relating 32 to competitive bidding, including the identification of those 33 circumstances under which competitive bidding by the authority, 34 either formally or informally, shall be required. In any 35 -7- LSB 2042XL (21) 84 tw/sc 7/ 40

S.F. _____ H.F. _____ bidding process, the authority may administer its own bidding 1 and procurement or may utilize the services of the department 2 of administrative services or any other agency. Except when 3 such rules apply, the authority and all contracts made by it in 4 carrying out its public and essential governmental functions 5 with respect to any of its programs shall be exempt from the 6 provisions and requirements of all laws or rules of the state 7 which require competitive bids in connection with the letting 8 of such contracts. 9 g. Acquire, hold, improve, mortgage, lease, and dispose of 10 real and personal property, including but not limited to the 11 power to sell at public or private sale, with or without public 12 bidding, any such property, or other obligation held by it. 13 h. Procure insurance against any loss in connection with its 14 operations and property interests. 15 i. Fix and collect fees and charges for its services. 16 j. Subject to an agreement with bondholders or noteholders, 17 invest or deposit moneys of the authority in a manner 18 determined by the authority, notwithstanding chapter 12B or 19 12C. 20 k. Accept appropriations, gifts, grants, loans, or other 21 aid from public or private entities. A record of all gifts or 22 grants, stating the type, amount, and donor, shall be clearly 23 set out in the authority’s annual report along with the record 24 of other receipts. 25 l. Provide to public and private entities technical 26 assistance and counseling related to the authority’s purposes. 27 m. In cooperation with other local, state, or federal 28 governmental agencies, conduct research studies, develop 29 estimates of unmet economic development needs, gather and 30 compile data useful to facilitating decision making, and enter 31 into agreements to carry out programs within or without the 32 state which the authority finds to be consistent with the goals 33 of the authority. 34 n. Enter into agreements with the federal government, 35 -8- LSB 2042XL (21) 84 tw/sc 8/ 40

S.F. _____ H.F. _____ tribes, and other states to undertake economic development 1 activities in the state of Iowa. 2 o. Own or acquire intellectual property rights including 3 but not limited to copyrights, trademarks, service marks, and 4 patents, and enforce the rights of the authority with respect 5 to such intellectual property rights. 6 p. Make, alter, and repeal rules consistent with the 7 provisions of this chapter, and subject to chapter 17A. 8 q. Form committees or panels as necessary to facilitate the 9 authority’s duties. 10 r. Establish one or more funds within the state treasury 11 under the control of the authority and invest moneys of the 12 authority therein. Notwithstanding section 8.33 or 12C.7, 13 or any other provision to the contrary, moneys invested by 14 the treasurer of state pursuant to this subsection shall not 15 revert to the general fund of the state and interest accrued 16 on the moneys shall be moneys of the authority and shall not be 17 credited to the general fund. For purposes of this paragraph, 18 the treasurer of state shall enter into an agreement with the 19 authority to carry out the provisions of this paragraph. 20 s. Select projects to receive assistance by the exercise of 21 diligence and care. 22 t. Exercise generally all powers typically exercised by 23 private enterprises engaged in business pursuits unless the 24 exercise of such a power would violate the terms of this 25 chapter or the Constitution of the State of Iowa. 26 2. Notwithstanding any other provision of law, any purchase 27 or lease of real property, other than on a temporary basis, 28 when necessary in order to implement the programs of the 29 authority or protect the investments of the authority, shall 30 require written notice from the authority to the government 31 oversight standing committees of the general assembly and the 32 prior approval of the executive council. 33 3. The powers enumerated in this section are cumulative of 34 and in addition to those powers enumerated elsewhere in this 35 -9- LSB 2042XL (21) 84 tw/sc 9/ 40

S.F. _____ H.F. _____ chapter and such powers do not limit or restrict any other 1 powers of the authority. 2 4. Notwithstanding any other provision of law, the 3 authority may elect to utilize any or all of the goods or 4 services available from other state agencies in the conduct 5 of its affairs. Departments, boards, commissions, or other 6 agencies of the state shall provide reasonable assistance and 7 services to the authority upon the request of the director. 8 Sec. 10. NEW SECTION . 15.106B Specific program powers. 9 1. In addition to the general powers described in section 10 15.106A, the authority shall have all powers convenient and 11 necessary to carry out its programs. 12 2. For purposes of this section, “powers convenient and 13 necessary” includes but is not limited to the power to: 14 a. Undertake more extensive research and discussion of 15 the issues identified by the partnership in order to better 16 formulate and implement state economic development policy. 17 b. Establish a nonprofit corporation pursuant to section 18 15.107, for the purpose of receiving and disbursing funds from 19 public or private sources to be used to further the overall 20 development and economic well-being of the state. 21 c. Provide export documentation to Iowa businesses that are 22 exporting goods and services if no other government entity is 23 providing export documentation in a form deemed necessary for 24 international commerce. 25 d. (1) Pursuant to a contract executed between the 26 authority and the corporation, the authority may delegate to 27 the corporation the performance of the following functions on 28 behalf of the authority: 29 (a) Marketing and promotional activities. 30 (b) Policy research. 31 (c) Economic analysis. 32 (d) Expansion of international markets for Iowa-produced 33 or Iowa-based products. 34 (e) Consulting services. However, such consulting 35 -10- LSB 2042XL (21) 84 tw/sc 10/ 40

S.F. _____ H.F. _____ services shall not be provided in relation to an applicant for 1 financial assistance under any of the programs administered 2 by the authority or to persons who have an interest in or any 3 financial connection to the corporation. 4 (2) A contract executed pursuant to this paragraph “d” 5 shall not delegate an essential government function, including 6 the budgetary or personnel management responsibilities of the 7 authority, and shall not delegate any sovereign power of the 8 state. 9 (3) The terms of a contract executed pursuant to this 10 paragraph “d” may provide for compensation at the fair market 11 value of the services to be provided under the contract. 12 Sec. 11. NEW SECTION . 15.106C Director —— responsibilities. 13 1. The board shall appoint a director of the authority, 14 who shall serve at the pleasure of the authority board. The 15 director shall be selected primarily for administrative ability 16 and knowledge in the field and without regard to political 17 affiliation. 18 2. The director shall not, directly or indirectly, exert 19 influence to induce any other officers or employees of the 20 state to adopt a political view or to favor a political 21 candidate for office. 22 3. The director shall advise the authority on matters 23 relating to economic development and act on the authority’s 24 behalf to carry out all directives from the authority board in 25 regard to the operation of the authority. 26 4. The director shall designate certain employees as 27 key professional personnel and shall classify and fix the 28 compensation of the personnel so designated. 29 5. The director shall employ personnel as necessary to 30 carry out the duties and responsibilities of the authority. 31 For nonprofessional employees, employment shall be consistent 32 with chapter 8A, subchapter IV. The employment of professional 33 employees shall be exempt from the provisions of chapter 8A, 34 subchapter IV, and chapter 20. 35 -11- LSB 2042XL (21) 84 tw/sc 11/ 40

S.F. _____ H.F. _____ 6. The director, in consultation with the authority 1 board, may establish incentive programs for employees of the 2 authority. 3 Sec. 12. NEW SECTION . 15.106D Bonds and notes. 4 1. The authority may issue its negotiable bonds and notes 5 in principal amounts as, in the opinion of the authority, are 6 necessary to provide sufficient funds for achievement of its 7 corporate purposes, the payment of interest on its bonds and 8 notes, the establishment of reserves to secure its bonds and 9 notes, and all other expenditures of the authority incident 10 to and necessary or convenient to carry out its purposes and 11 powers. The bonds and notes shall be deemed to be investment 12 securities and negotiable instruments within the meaning of and 13 for all purposes of the uniform commercial code, chapter 554. 14 2. Bonds and notes issued by the authority are payable 15 solely and only out of the moneys, assets, or revenues of the 16 authority, and as provided in the agreement with bondholders 17 or noteholders pledging any particular moneys, assets, or 18 revenues. Bonds or notes are not an obligation of this state 19 or any political subdivision of this state other than the 20 authority within the meaning of any constitutional or statutory 21 debt limitations, but are special obligations of the authority 22 payable solely and only from the sources provided in this 23 chapter, and the authority may not pledge the credit or taxing 24 power of this state or any political subdivision of this state 25 other than the authority, or make its debts payable out of any 26 moneys except those of the authority. 27 3. Bonds and notes must be authorized by a resolution of the 28 authority. However, a resolution authorizing the issuance of 29 bonds or notes may delegate to an officer of the authority the 30 power to negotiate and fix the details of an issue of bonds or 31 notes by an appropriate certificate of such authorized officer. 32 4. Bonds shall: 33 a. State the date and series of the issue, be consecutively 34 numbered, and state on their face that they are payable both 35 -12- LSB 2042XL (21) 84 tw/sc 12/ 40

S.F. _____ H.F. _____ as to principal and interest solely out of the assets of 1 the authority, constitute an indebtedness of the authority, 2 and do not constitute an indebtedness of this state or any 3 political subdivision of this state within the meaning of any 4 constitutional or statutory debt limit. 5 b. Be either registered, registered as to principal only, 6 or in coupon form, issued in denominations as the authority 7 prescribes, fully negotiable instruments under the laws of this 8 state, signed on behalf of the authority with the manual or 9 facsimile signature of the chairperson or vice chairperson, 10 attested by the manual or facsimile signature of the secretary, 11 have impressed or imprinted thereon the seal of the authority 12 or a facsimile of the seal of the authority, and the coupons 13 attached shall be signed with the facsimile signature of the 14 chairperson or vice chairperson, be payable as to interest at 15 rates and at times as the authority determines, be payable 16 as to principal at times over a period not to exceed fifty 17 years from the date of issuance, at places, and with reserved 18 rights of prior redemption, as the authority prescribes, be 19 sold at prices, at public or private sale, and in a manner 20 as the authority prescribes, and the authority may pay all 21 expenses, premiums, and commissions which it deems necessary 22 or advantageous in connection with the issuance and sale, 23 and be issued under and subject to the terms, conditions, 24 and covenants providing for the payment of the principal, 25 redemption premiums, if any, interest, and other terms, 26 conditions, covenants, and protective provisions safeguarding 27 payment, not inconsistent with this chapter, as are found to 28 be necessary by the authority for the most advantageous sale, 29 which may include but are not limited to covenants with the 30 holders of the bonds as to: 31 (1) Pledging or creating a lien, to the extent provided 32 by the resolution, on moneys or property of the authority or 33 moneys held in trust or otherwise by others to secure the 34 payment of the bonds. 35 -13- LSB 2042XL (21) 84 tw/sc 13/ 40

S.F. _____ H.F. _____ (2) Providing for the custody, collection, securing, 1 investment, and payment of any moneys of or due to the 2 authority. 3 (3) The setting aside of reserves or sinking funds and the 4 regulation or disposition of them. 5 (4) Limitations on the purpose to which the proceeds of 6 sale of an issue of bonds then or thereafter to be issued may 7 be applied. 8 (5) Limitations on the issuance of additional bonds and on 9 the refunding of outstanding or other bonds. 10 (6) The procedure by which the terms of a contract with the 11 holders of bonds may be amended or abrogated, the amount of 12 bonds the holders of which must consent thereto, and the manner 13 in which consent may be given. 14 (7) The creation of special funds into which moneys of the 15 authority may be deposited. 16 (8) Vesting in a trustee properties, rights, powers, and 17 duties in trust as the authority determines, which may include 18 the rights, powers, and duties of the trustee appointed for 19 the holders of any issue of bonds pursuant to section 16.28, 20 in which event the provisions of that section authorizing 21 appointment of a trustee by the holders of bonds shall not 22 apply, or limiting or abrogating the right of the holders of 23 bonds to appoint a trustee under that section, or limiting the 24 rights, duties, and powers of the trustee. 25 (9) Defining the acts or omissions which constitute a 26 default in the obligations and duties of the authority and 27 providing for the rights and remedies of the holders of bonds 28 in the event of a default. However, rights and remedies shall 29 be consistent with the laws of this state and other provisions 30 of this chapter. 31 (10) Any other matters which affect the security and 32 protection of the bonds and the rights of the holders. 33 5. The authority may issue its bonds for the purpose of 34 refunding any bonds or notes of the authority then outstanding, 35 -14- LSB 2042XL (21) 84 tw/sc 14/ 40

S.F. _____ H.F. _____ including the payment of any redemption premiums thereon and 1 any interest accrued or to accrue to the date of redemption 2 of the outstanding bonds or notes. Until the proceeds 3 of bonds issued for the purpose of refunding outstanding 4 bonds or notes are applied to the purchase or retirement of 5 outstanding bonds or notes or the redemption of outstanding 6 bonds or notes, the proceeds may be placed in escrow and be 7 invested and reinvested in accordance with the provisions of 8 this chapter. The interest, income, and profits earned or 9 realized on an investment may also be applied to the payment 10 of the outstanding bonds or notes to be refunded by purchase, 11 retirement, or redemption. After the terms of the escrow have 12 been fully satisfied and carried out, any balance of proceeds 13 and interest earned or realized on the investments may be 14 returned to the authority for use by it in any lawful manner. 15 All refunding bonds shall be issued and secured and subject to 16 the provisions of this chapter in the same manner and to the 17 same extent as other bonds issued pursuant to this chapter. 18 6. The authority may issue negotiable bond anticipation 19 notes and may renew them from time to time but the maximum 20 maturity of the notes, including renewals, shall not exceed 21 ten years from the date of issue of the original notes. Notes 22 are payable from any available moneys of the authority not 23 otherwise pledged, or from the proceeds of the sale of bonds 24 of the authority in anticipation of which the notes were 25 issued. Notes may be issued for any corporate purpose of the 26 authority. Notes shall be issued in the same manner as bonds, 27 and notes, and the resolution authorizing them may contain 28 any provisions, conditions, or limitations, not inconsistent 29 with the provisions of this subsection, which the bonds or a 30 bond resolution of the authority may contain. Notes may be 31 sold at public or private sale. In case of default on its 32 notes or violation of any obligations of the authority to 33 the noteholders, the noteholders shall have all the remedies 34 provided in this chapter for bondholders. Notes shall be as 35 -15- LSB 2042XL (21) 84 tw/sc 15/ 40

S.F. _____ H.F. _____ fully negotiable as bonds of the authority. 1 7. A copy of each pledge agreement by or to the authority, 2 including without limitation each bond resolution, indenture 3 of trust or similar agreement, or any revisions or supplements 4 to it shall be filed with the secretary of state and no further 5 filing or other action under chapter 554, article 9, of the 6 uniform commercial code, or any other law of the state shall 7 be required to perfect the security interest in the collateral 8 or any additions to it or substitutions for it, and the lien 9 and trust so created shall be binding from and after the time 10 made against all parties having claims of any kind in tort, 11 contract, or otherwise against the pledgor. 12 8. Neither the members of the authority nor any person 13 executing its bonds, notes, or other obligations shall be 14 liable personally on the bonds, notes, or other obligations 15 or be subject to any personal liability or accountability by 16 reason of the issuance of the authority’s bonds or notes. 17 Sec. 13. Section 15.107, Code 2011, is amended by striking 18 the section and inserting in lieu thereof the following: 19 15.107 Economic progress corporation. 20 1. The authority shall establish the economic progress 21 corporation as a nonprofit corporation organized under chapter 22 504 and qualifying under section 501(c)(3) of the Internal 23 Revenue Code as an organization exempt from taxation. Unless 24 otherwise provided in this subchapter, the corporation is 25 subject to the provisions of chapter 504. The corporation 26 shall be established for the purpose of receiving and 27 disbursing funds from public or private sources to be used to 28 further the overall development and economic well-being of the 29 state. 30 2. The corporation shall collaborate with the authority as 31 described in this subchapter, but the corporation shall not 32 be considered, in whole or in part, an agency, department, or 33 administrative unit of the state. 34 a. The corporation shall not receive appropriations from the 35 -16- LSB 2042XL (21) 84 tw/sc 16/ 40

S.F. _____ H.F. _____ general assembly. 1 b. The corporation shall not be required to comply with 2 any requirements that apply to a state agency, department, or 3 administrative unit and shall not exercise any sovereign power 4 of the state. 5 c. The corporation does not have authority to pledge the 6 credit of the state, and the state shall not be liable for 7 the debts or obligations of the corporation. All debts and 8 obligations of the corporation shall be payable solely from the 9 corporation’s funds. 10 3. a. The corporation shall be established so that 11 donations and bequests to it qualify as tax deductible under 12 state income tax laws and under section 501(c)(3) of the 13 Internal Revenue Code. 14 b. The corporation shall be established for the purpose 15 of expanding economic development opportunities in the state 16 of Iowa and for Iowa businesses operating in foreign markets 17 in connection with the public purpose of economic development 18 in Iowa. The corporation may effectuate this purpose by 19 performing certain functions delegated to it by the authority 20 pursuant to section 15.106B. 21 4. The articles of the corporation shall provide for its 22 governance and its efficient management. In providing for its 23 governance, the articles of the corporation shall address the 24 following: 25 a. A board of directors to govern the corporation which 26 shall be comprised of seven members initially appointed by the 27 governor and thereafter selected by a majority vote of the 28 authority board. 29 b. The appointment of a chief executive officer by the board 30 to manage the corporation’s daily operations. 31 c. The delegation of such powers and responsibilities 32 to the chief executive officer as may be necessary for the 33 corporation’s efficient operation. 34 d. The employment of personnel necessary for the efficient 35 -17- LSB 2042XL (21) 84 tw/sc 17/ 40

S.F. _____ H.F. _____ performance of the duties assigned to the corporation in 1 connection with the partnership. All such personnel shall be 2 considered employees of a private, nonprofit corporation and 3 shall be exempt from the personnel requirements imposed on 4 state agencies, departments, and administrative units. 5 e. The financial operations of the corporation including the 6 authority to receive and expend funds from public and private 7 sources and to use its property, money, or other resources for 8 the purpose of the corporation. 9 5. The board of directors of the corporation and the chief 10 executive officer shall act to ensure all of the following: 11 a. That the corporation review and, at the board’s 12 direction, implement the strategic plan developed by the 13 partnership pursuant to section 15.104. 14 b. That the corporation prepares an annual budget that 15 includes funding levels for the corporation’s activities and 16 that shows sufficient moneys are available to support those 17 activities. 18 c. That the corporation prepares an annual report for the 19 authority on the corporation’s activities no later than January 20 31 of each year. 21 d. That the corporation prepares or causes to be prepared a 22 financial audit conducted by a certified public accountant in 23 accordance with generally accepted accounting principles. 24 6. The corporation shall keep confidential all information 25 disclosed to it by the authority as part of a contract executed 26 pursuant to section 15.106B. 27 Sec. 14. NEW SECTION . 15.107A Duties and responsibilities 28 of the corporation. 29 1. The corporation’s board of directors and the chief 30 executive officer shall determine the activities and priorities 31 of the corporation within the general parameters of the duties 32 and responsibilities described in this section and in this 33 subchapter. 34 2. The corporation shall, to the extent its articles so 35 -18- LSB 2042XL (21) 84 tw/sc 18/ 40

S.F. _____ H.F. _____ provide and within its public purpose, do all of the following: 1 a. Perform any functions delegated by the authority pursuant 2 to section 15.106B. 3 b. Encourage, stimulate, and support the development and 4 expansion of the state’s economy. 5 c. Develop and implement effective marketing and promotional 6 programs. 7 d. Provide pertinent information to prospective new 8 businesses. 9 e. Formulate and pursue programs for encouraging the 10 location of new businesses in the state and for retaining and 11 fostering the growth of existing businesses. 12 f. Solicit the involvement of the private sector, including 13 support and funding, for economic development initiatives in 14 the state. 15 g. Coordinate the economic development efforts of other 16 state and local entities in an effort to achieve policy 17 consistency. 18 h. Collect and maintain any economic data and research that 19 is relevant to the formulation and implementation of effective 20 policies. 21 i. Encourage the expansion of trade and the export of Iowa 22 products and services to national and international markets. 23 j. Cooperate with and provide information to state agencies, 24 local governments, community colleges, and the regents 25 universities on economic development matters, including the 26 areas of workforce development and job training. 27 k. Work in consultation with the Iowa innovation council 28 established in section 15.117A to formulate policy ideas and 29 further innovation within the state’s economy. 30 Sec. 15. NEW SECTION . 15.107B Annual reporting 31 requirements. 32 1. On or before January 31 of each year, the director shall 33 submit to the authority board a report that describes the 34 activities of the authority during the preceding fiscal year. 35 -19- LSB 2042XL (21) 84 tw/sc 19/ 40

S.F. _____ H.F. _____ The report may include such information as the director deems 1 necessary or as otherwise required by law. 2 2. The report submitted pursuant to subsection 1 shall at a 3 minimum include the following: 4 a. A summary of the report filed by December 1 of each year 5 by the department of administrative services with the authority 6 regarding targeted small business procurement activities 7 conducted during the previous fiscal year. 8 b. A summary of the report filed by December 1 of each year 9 by the department of inspections and appeals with the authority 10 regarding certifications of targeted small businesses. At a 11 minimum, the summary shall include the number of certified 12 targeted small businesses for the previous year, the increase 13 or decrease in that number during the previous fiscal year 14 compared to the prior fiscal year, and the number of targeted 15 small businesses that have been decertified in the previous 16 fiscal year. 17 c. A summary of the internal report compiled by December 18 1 of each year by the authority regarding the targeted small 19 business financial assistance program. At a minimum, the 20 summary shall contain the number of loans, loan guarantees, 21 and grants distributed during the previous fiscal year, the 22 individual amounts provided to targeted small businesses during 23 the previous fiscal year, and how many financial assistance 24 awards to targeted small businesses were the subject of 25 repayment or collection activity during the previous fiscal 26 year. 27 d. A list of the procurement goals established pursuant to 28 section 73.16, subsection 2, and compiled by the authority’s 29 targeted small business marketing and compliance manager and 30 the performance of each agency in meeting the goals. The 31 performance of each agency shall be determined based upon the 32 reports required pursuant to section 73.16, subsection 2. 33 Sec. 16. Section 15.108, subsection 1, paragraph b, Code 34 2011, is amended by striking the paragraph. 35 -20- LSB 2042XL (21) 84 tw/sc 20/ 40

S.F. _____ H.F. _____ Sec. 17. REPEAL. Sections 15E.11, 15E.14, 15E.15, and 1 15E.16, Code 2011, are repealed. 2 Sec. 18. CONTINUING VALIDITY OF DEPARTMENT RULES. 3 1. All rules promulgated by the department of economic 4 development shall be valid and enforceable after the 5 elimination of the department as rules promulgated by the 6 economic progress authority. 7 2. As soon as practicable, the authority shall adopt revised 8 rules issued under its own rulemaking authority. 9 Sec. 19. TRANSITION OF EMPLOYEES. 10 1. All employees of the department of economic development 11 shall be considered employees of the economic progress 12 authority upon the elimination of the former and creation of 13 the latter. 14 2. Such employees shall suffer no loss in years served, 15 sick leave and vacation time accrued, or other benefits of 16 their current employment upon transition to employment with the 17 authority. 18 3. All employees of the department transitioning to 19 employment with the authority shall be considered employees 20 for purposes of chapter 97B and may elect to remain a covered 21 employee or to file an optional exclusion from membership as 22 provided in section 97B.42A. 23 Sec. 20. CONTINUATION OF FINANCIAL ASSISTANCE. 24 1. Any moneys remaining in any account or fund under the 25 control of the department of economic development on the 26 effective date of this Act and relating to the provisions of 27 this Act shall be transferred to a comparable fund or account 28 under the control of the economic progress authority for such 29 purposes. Notwithstanding section 8.33, the moneys transferred 30 in accordance with this subsection shall not revert to the 31 account or fund from which appropriated or transferred. 32 2. Any license, permit, or contract issued or entered into 33 by the department of economic development relating to the 34 provisions of this Act in effect on the effective date of this 35 -21- LSB 2042XL (21) 84 tw/sc 21/ 40

S.F. _____ H.F. _____ Act shall continue in full force and effect pending transfer of 1 such licenses, permits, or contracts to the economic progress 2 authority. 3 3. Financial assistance provided for in agreements entered 4 into under the Iowa values fund and financial assistance 5 program pursuant to the provisions of chapter 15G prior to 6 the effective date of this Act shall continue as provided in 7 such agreements. Such agreements shall be administered by the 8 economic progress authority according to the provisions of 9 chapter 15G. 10 4. Federal funds utilized by the director of the department 11 of economic development prior to the effective date of this Act 12 to employ personnel necessary for the administration of the 13 department’s programs shall be applied to and be available for 14 the transfer of such personnel from the department of economic 15 development to the economic progress authority. 16 DIVISION II 17 MISCELLANEOUS PROGRAM CHANGES 18 Sec. 21. Section 10B.5, subsection 2, Code 2011, is amended 19 to read as follows: 20 2. Information provided in reports required in this chapter 21 is a confidential record as provided in section 22.7 . The 22 attorney general may have access to the reports, and may use 23 information in the reports in any action to enforce state law, 24 including but not limited to chapters 9H , and 9I , and 10C . 25 The reports shall be made available to members of the general 26 assembly and appropriate committees of the general assembly 27 in order to determine the extent that agricultural land is 28 held in this state by corporations and other business and 29 foreign entities and the effect of such land ownership upon the 30 economy of this state. The secretary of state shall assist any 31 committee of the general assembly studying these issues. 32 Sec. 22. Section 15G.101, subsection 10, Code 2011, is 33 amended to read as follows: 34 10. “Fund” means the grow Iowa values economic progress fund 35 -22- LSB 2042XL (21) 84 tw/sc 22/ 40

S.F. _____ H.F. _____ created in section 15G.111 . 1 Sec. 23. Section 15G.111, subsection 1, unnumbered 2 paragraph 1, Code 2011, is amended to read as follows: 3 A grow Iowa values An economic progress fund is created 4 in the state treasury under the control of the department of 5 economic development economic progress authority consisting of 6 the following: 7 Sec. 24. Section 15G.112, subsection 1, paragraph a, Code 8 2011, is amended to read as follows: 9 a. The department shall establish and administer a grow Iowa 10 values an economic progress financial assistance program for 11 purposes of providing financial assistance from the fund to 12 applicants. The financial assistance shall be provided from 13 moneys credited to the grow Iowa values economic progress fund 14 and not otherwise obligated or allocated pursuant to section 15 15G.111 . 16 Sec. 25. NEW SECTION . 15H.1A Definitions. 17 For purposes of this chapter, unless the context otherwise 18 requires: 19 1. “Authority” means the economic progress authority created 20 in section 15.105. 21 2. “Director” means the director of the authority. 22 Sec. 26. Section 15H.2, subsections 1 and 2, Code 2011, are 23 amended to read as follows: 24 1. The governor shall establish the Iowa commission on 25 volunteer service which shall be part of the governor’s office 26 is created within the authority . The governor shall appoint 27 the commission’s members. The director shall employ personnel 28 as necessary to carry out the duties and responsibilities of 29 the commission. 30 2. The mission of the commission is to advise and 31 assist the director in the development and implementation 32 of a comprehensive, statewide plan for promoting volunteer 33 involvement and citizen participation in Iowa, as well 34 as to serve as the state’s liaison to national and state 35 -23- LSB 2042XL (21) 84 tw/sc 23/ 40

S.F. _____ H.F. _____ organizations which support the commission’s mission. 1 Sec. 27. Section 15H.3, Code 2011, is amended by striking 2 the section and inserting in lieu thereof the following: 3 15H.3 Volunteer service commission membership. 4 1. The Iowa commission on volunteer service shall consist of 5 such authority personnel as the director deems best qualified 6 to administer the programs, duties, and responsibilities of the 7 commission. 8 2. The Iowa commission on volunteer service shall not be 9 considered an appointive commission for purposes of chapter 69. 10 Sec. 28. Section 15H.4, subsection 1, Code 2011, is amended 11 to read as follows: 12 1. The governor’s office shall serve as the lead agency for 13 administration of authority shall administer the commission. 14 The authority may consult with the department of education, 15 the state board of regents, and the department of workforce 16 development , and the department of economic development shall 17 provide for any additional administrative support as necessary 18 to fulfill the duties of the commission. All other state 19 agencies , at the request of the authority, shall provide 20 assistance to the commission to ensure a fully coordinated 21 state effort for promoting national and community service. 22 Sec. 29. Section 175.37, subsection 2, paragraph a, Code 23 2011, is amended to read as follows: 24 a. Be a person who may acquire or otherwise obtain or lease 25 agricultural land in this state pursuant to chapter 9H or 9I . 26 However, the taxpayer must not be a person who may acquire 27 or otherwise obtain or lease agricultural land exclusively 28 because of an exception provided in one of those chapters or in 29 a provision of another chapter of this Code including but not 30 limited to chapter 10 , 10C , 10D , or 501 , or section 15E.207 . 31 Sec. 30. Section 260E.7, Code 2011, is amended to read as 32 follows: 33 260E.7 Department of economic development Economic progress 34 authority . 35 -24- LSB 2042XL (21) 84 tw/sc 24/ 40

S.F. _____ H.F. _____ 1. The Iowa department of economic development economic 1 progress authority in consultation with the department of 2 education , the department of revenue, and the department of 3 workforce development shall coordinate administer and monitor 4 the new jobs training program. 5 2. The Iowa department of economic development economic 6 progress authority shall adopt, amend, and repeal rules under 7 chapter 17A that the community college will use in developing 8 projects with new and expanding industrial new jobs training 9 proposals and that the authority shall use to monitor the 10 community colleges’ compliance . 11 3. The authority shall compile a report on the effectiveness 12 of the program. The effectiveness of the program shall be 13 measured by evaluating the number of jobs created by the 14 program and by the amount of withholding taxes from employers 15 that are used to pay for certificates issued pursuant to this 16 chapter. 17 4. The department authority is authorized to make any rule 18 that is adopted, amended, or repealed effective immediately 19 upon filing with the administrative rules coordinator or at 20 a subsequent stated date prior to indexing and publication, 21 or at a stated date less than thirty-five days after filing, 22 indexing, and publication. 23 Sec. 31. REPEAL. Chapter 10C, Code 2011, is repealed. 24 DIVISION III 25 OFFICE OF ENERGY INDEPENDENCE TRANSFERRED 26 Sec. 32. Section 11.5B, subsection 15, Code 2011, is amended 27 by striking the subsection. 28 Sec. 33. Section 15H.6, subsection 1, Code 2011, is amended 29 to read as follows: 30 1. The Iowa commission on volunteer service, in 31 collaboration with the department of natural resources, the 32 department of workforce development, the office of energy 33 independence, and the utilities board of the department of 34 commerce, shall establish an Iowa green corps program. The 35 -25- LSB 2042XL (21) 84 tw/sc 25/ 40

S.F. _____ H.F. _____ commission shall work with the collaborating agencies and 1 nonprofit agencies in developing a strategy for attracting 2 additional financial resources for the program from other 3 sources which may include but are not limited to utilities, 4 private sector, and local, state, and federal government 5 funding sources. The financial resources received shall be 6 credited to the community programs account created pursuant to 7 section 15H.5 . 8 Sec. 34. Section 22.7, subsection 60, Code 2011, is amended 9 by striking the subsection. 10 Sec. 35. Section 103A.8B, Code 2011, is amended to read as 11 follows: 12 103A.8B Sustainable design or green building standards. 13 The commissioner, after consulting with and receiving 14 recommendations from the department of natural resources 15 and the office of energy independence , shall adopt rules 16 pursuant to chapter 17A specifying standards and requirements 17 for sustainable design and construction based upon or 18 incorporating nationally recognized ratings, certifications, 19 or classification systems, and procedures relating to 20 documentation of compliance. The standards and requirements 21 shall be incorporated into the state building code established 22 in section 103A.7 , but in lieu of general applicability shall 23 apply to construction projects only if such applicability is 24 expressly authorized by statute, or as established by another 25 state agency by rule. 26 Sec. 36. Section 268.6, subsection 2, Code 2011, is amended 27 to read as follows: 28 2. The university is encouraged to cooperate with 29 agricultural and energy efficiency advocates and governmental 30 entities in administering the program , including the office of 31 energy independence established pursuant to section 469.2 . 32 Sec. 37. Section 470.1, Code 2011, is amended by adding the 33 following new subsection: 34 NEW SUBSECTION . 01. “Authority” means the economic progress 35 -26- LSB 2042XL (21) 84 tw/sc 26/ 40

S.F. _____ H.F. _____ authority created in section 15.105. 1 Sec. 38. Section 470.1, subsection 2, Code 2011, is amended 2 to read as follows: 3 2. “Director” means the director of the office of energy 4 independence economic progress authority . 5 Sec. 39. Section 470.1, subsection 8, Code 2011, is amended 6 by striking the subsection. 7 Sec. 40. Section 473.1, Code 2011, is amended by adding the 8 following new subsection: 9 NEW SUBSECTION . 1A. “Authority” means the economic progress 10 authority created in section 15.105. 11 Sec. 41. Section 473.1, subsection 3, Code 2011, is amended 12 to read as follows: 13 3. “Director” means the director of the office authority or 14 a designee. 15 Sec. 42. Section 473.1, subsection 5, Code 2011, is amended 16 by striking the subsection. 17 Sec. 43. REPEAL. Section 455B.851, Code 2011, is repealed. 18 Sec. 44. REPEAL. Chapter 469, Code 2011, is repealed. 19 Sec. 45. CODE EDITOR DIRECTIVE. 20 1. The Code editor is directed to change the words “office 21 of energy independence” to “economic progress authority” in 22 Code sections 7D.34, 7D.35, 8A.362, 72.5, 103A.8, 103A.27, 23 159A.3, 159A.6B, 266.39C, 272C.2, 279.44, 323A.2, 441.21, 24 476.6, and 476.63. 25 2. The Code editor is directed to change the word “office” 26 to “authority” in Code sections 470.3, 470.7, 473.7, 473.8, 27 473.10, 473.13A, 473.15, 473.19, 473.19A, 473.20, 473.20A, and 28 473.41. 29 Sec. 46. TRANSITION PROVISIONS —— CONTINUATION OF GRANTS. 30 1. Any moneys remaining in any account or fund under the 31 control of the office of energy independence on the effective 32 date of this Act relative to the provisions of this Act shall 33 be transferred to a comparable fund or account under the 34 control of the economic progress authority for such purposes. 35 -27- LSB 2042XL (21) 84 tw/sc 27/ 40

S.F. _____ H.F. _____ Notwithstanding section 8.33, the moneys transferred in 1 accordance with this subsection shall not revert to the account 2 or fund from which appropriated or transferred. 3 2. Any license, permit, or contract issued or entered into 4 by the office of energy independence relating to the provisions 5 of this Act in effect on the effective date of this Act shall 6 continue in full force and effect pending transfer of such 7 licenses, permits, or contracts to the authority. 8 3. Grants or loans awarded from the Iowa power fund pursuant 9 to section 469.9 prior to the effective date of this Act shall 10 continue as provided by the terms of the grants or loans and 11 shall be administered by the authority. 12 4. Federal funds utilized by the director of the office of 13 energy independence prior to the effective date of this Act to 14 employ personnel necessary to administer the provisions of this 15 Act shall be applicable to the authority for the same purposes. 16 Sec. 47. TRANSITION PROVISIONS —— EMERGENCY 17 RULEMAKING. Not later than July 1, 2011, the economic 18 progress authority shall adopt administrative rules previously 19 adopted by the office of energy independence relative to the 20 provisions of this Act in existence on the effective date of 21 this Act by emergency rulemaking pursuant to section 17A.4, 22 subsection 3, and section 17A.5, subsection 2, paragraph “b”. 23 The rules shall be effective immediately upon filing unless 24 a later date is specified in the rules. Any rules adopted 25 in accordance with this section shall also be published as a 26 notice of intended action as provided in section 17A.4. Any 27 rule, regulation, form, order, or directive promulgated by the 28 office relative to the provisions of this Act shall continue in 29 full force and effect until such emergency rules are adopted. 30 Sec. 48. EFFECTIVE UPON ENACTMENT. The sections of this 31 division of this Act providing for emergency rulemaking, 32 and repealing section 455B.851, being deemed of immediate 33 importance, take effect upon enactment. 34 DIVISION IV 35 -28- LSB 2042XL (21) 84 tw/sc 28/ 40

S.F. _____ H.F. _____ CONFORMING CHANGES 1 Sec. 49. Section 7E.5, subsection 1, paragraph g, Code 2011, 2 is amended to read as follows: 3 g. The Iowa department of economic development progress 4 authority , created in section 15.105 , which has primary 5 responsibility for programs for carrying out ensuring that the 6 economic development policies of the state are effectively and 7 efficiently carried out . 8 Sec. 50. Section 15.327, Code 2011, is amended by adding the 9 following new subsection: 10 NEW SUBSECTION . 01. “Authority” means the economic progress 11 authority created in section 15.105. 12 Sec. 51. Section 15.327, subsection 5, Code 2011, is amended 13 by striking the subsection. 14 Sec. 52. Section 15E.1, Code 2011, is amended to read as 15 follows: 16 15E.1 Definition. 17 As used in this chapter , unless the context otherwise 18 requires, “department” “authority” means the Iowa department 19 of economic development progress authority created in section 20 15.105 . 21 Sec. 53. Section 15E.64, subsection 2, paragraph a, Code 22 2011, is amended to read as follows: 23 a. The chairperson of the Iowa economic development board 24 progress authority or a designee of the chairperson. 25 Sec. 54. Section 15E.64, subsection 3, Code 2011, is amended 26 to read as follows: 27 3. After incorporation, the initial board of directors 28 shall be elected by the members of an appointment committee. 29 The members of the appointment committee shall be appointed 30 by the Iowa economic development board progress authority . 31 The initial board of directors shall consist of five members. 32 The persons elected to the initial board of directors by 33 the appointment committee shall include persons who have 34 an expertise in the areas of the selection and supervision 35 -29- LSB 2042XL (21) 84 tw/sc 29/ 40

S.F. _____ H.F. _____ of investment managers or in the fiduciary management of 1 investment funds, and other areas of expertise as deemed 2 appropriate by the appointment committee. After the election 3 of the initial board of directors, vacancies in the board 4 of directors of the corporation shall be elected by the 5 remaining directors of the corporation. Members of the board 6 of directors shall be subject to any restrictions on conflicts 7 of interest specified in the organizational documents and 8 shall have no interest in any venture capital investment fund 9 allocation manager selected by the corporation pursuant to the 10 provisions of this division or in any investments made by the 11 Iowa fund of funds. 12 Sec. 55. Section 15E.202, Code 2011, is amended by adding 13 the following new subsection: 14 NEW SUBSECTION . 6A. “Authority” means the economic progress 15 authority created in section 15.105. 16 Sec. 56. Section 15E.202, subsection 9, Code 2011, is 17 amended by striking the subsection. 18 Sec. 57. Section 15E.202, subsection 10, Code 2011, is 19 amended to read as follows: 20 10. “Economic development board progress authority ” means the 21 economic development board progress authority created pursuant 22 to section 15.103 15.105 . 23 Sec. 58. Section 15E.206, subsection 2, paragraph a, Code 24 2011, is amended to read as follows: 25 a. The chairperson A member of the economic development 26 board progress authority chosen by the members of the authority 27 or a designee of the chairperson member . 28 Sec. 59. Section 15E.206, subsection 3, paragraphs a and d, 29 Code 2011, are amended to read as follows: 30 a. After incorporation, such a corporation shall be 31 organized by an initial board of directors as provided in 32 chapter 490, division II . The initial board of directors shall 33 be elected by the members of an appointment committee. The 34 members of the appointment committee shall be appointed by the 35 -30- LSB 2042XL (21) 84 tw/sc 30/ 40

S.F. _____ H.F. _____ economic development board progress authority . The initial 1 board of directors shall consist of seven members. The members 2 of the appointment committee shall include persons who have an 3 expertise in areas of banking, agricultural lending, business 4 development, agricultural production and processing, seed and 5 venture capital investment, and other areas of expertise as 6 deemed appropriate by the interim board of directors. 7 d. The department shall assist the incorporators and the 8 appointment committee in any manner determined necessary 9 and appropriate by the economic development board progress 10 authority and the director of the department authority in order 11 to administer this section . 12 Sec. 60. Section 15E.208, subsection 4, paragraph c, Code 13 2011, is amended to read as follows: 14 c. A member of the economic development board progress 15 authority , an employee of the department of economic 16 development progress authority , an elected state official, 17 or any director or other officer or an employee of the 18 corporation. 19 Sec. 61. Section 15E.351, subsection 1, Code 2011, is 20 amended to read as follows: 21 1. The department economic progress authority shall 22 establish and administer a business accelerator program 23 to provide financial assistance for the establishment and 24 operation of a business accelerator for technology-based, 25 value-added agricultural, information solutions, alternative 26 and renewable energy including the alternative and renewable 27 energy sectors listed in section 476.42, subsection 1 , 28 paragraph “a” , or advanced manufacturing start-up businesses 29 or for a satellite of an existing business accelerator. The 30 program shall be designed to foster the accelerated growth of 31 new and existing businesses through the provision of technical 32 assistance. The department, subject to the approval of the 33 economic development board, economic progress authority may 34 provide financial assistance under this section from moneys 35 -31- LSB 2042XL (21) 84 tw/sc 31/ 40

S.F. _____ H.F. _____ allocated for regional financial assistance pursuant to section 1 15G.111, subsection 9 . 2 Sec. 62. Section 15F.101, Code 2011, is amended by adding 3 the following new subsection: 4 NEW SUBSECTION . 01. “Authority” means the economic progress 5 authority created in section 15.105. 6 Sec. 63. Section 15F.101, subsection 2, Code 2011, is 7 amended by striking the subsection. 8 Sec. 64. Section 15G.101, Code 2011, is amended by adding 9 the following new subsection: 10 NEW SUBSECTION . 01. “Authority” means the economic progress 11 authority created in section 15.105. 12 Sec. 65. Section 15G.101, subsection 3, Code 2011, is 13 amended by striking the subsection. 14 Sec. 66. Section 15G.101, subsection 6, Code 2011, is 15 amended by striking the subsection. 16 Sec. 67. Section 15G.115, subsection 2, paragraph a, Code 17 2011, is amended by striking the paragraph. 18 Sec. 68. Section 15G.201, Code 2011, is amended by adding 19 the following new subsection: 20 NEW SUBSECTION . 01. “Authority” means the economic progress 21 authority created in section 15.105. 22 Sec. 69. Section 15G.201, subsection 2, Code 2011, is 23 amended by striking the subsection. 24 Sec. 70. Section 97B.1A, subsection 8, paragraph a, Code 25 2011, is amended by adding the following new subparagraph: 26 NEW SUBPARAGRAPH . (12) Persons employed by the economic 27 progress authority on or after July 1, 2011. 28 Sec. 71. Section 260F.2, Code 2011, is amended by adding the 29 following new subsection: 30 NEW SUBSECTION . 1A. “Authority” means the economic progress 31 authority created in section 15.105. 32 Sec. 72. Section 260F.2, subsection 4, Code 2011, is amended 33 by striking the subsection. 34 Sec. 73. Section 260G.4C, Code 2011, is amended to read as 35 -32- LSB 2042XL (21) 84 tw/sc 32/ 40

S.F. _____ H.F. _____ follows: 1 260G.4C Facilitator. 2 The department of economic development progress authority 3 shall administer the statewide allocations of program job 4 credits to accelerated career education programs. The 5 department authority shall provide information about the 6 accelerated career education programs in accordance with its 7 annual reporting requirements in section 15.104, subsection 8 8 15.107B . 9 Sec. 74. Section 260G.6, subsection 4, Code 2011, is amended 10 to read as follows: 11 4. In order to receive moneys pursuant to this section , 12 a program agreement approved by the community college board 13 of directors shall be in place, program capital cost requests 14 shall be approved by the Iowa economic development board 15 progress authority created in section 15.103 15.105 , program 16 capital cost requests shall be approved or denied not later 17 than sixty days following receipt of the request by the 18 department of economic development progress authority , and 19 employer contributions toward program capital costs shall be 20 certified and agreed to in the agreement. 21 Sec. 75. Section 496B.2, Code 2011, is amended by adding the 22 following new subsection: 23 NEW SUBSECTION . 01. “Authority” means the economic progress 24 authority created in section 15.105, or any entity which 25 succeeds to the functions of the authority. 26 Sec. 76. Section 496B.2, subsection 2, Code 2011, is amended 27 by striking the subsection. 28 Sec. 77. CODE EDITOR DIRECTIVE. Sections 10C.6, 15.116, 29 15.247, 15.294, 15.335A, 15E.64, 15E.202, 15E.206, 15E.208, 30 15E.351, 15G.101, 68B.35, 260G.6, and 308.1, Code 2011, are 31 amended as follows: 32 1. By striking from the sections the words “economic 33 development board” and inserting in lieu thereof the words 34 “economic progress authority”. 35 -33- LSB 2042XL (21) 84 tw/sc 33/ 40

S.F. _____ H.F. _____ 2. By striking from the sections the word “board”, when 1 referring to the economic development board, and inserting in 2 lieu thereof the word “authority”. 3 Sec. 78. CODE EDITOR DIRECTIVE. Sections 7C.4A, 7E.5, 4 8.6, 8.31, 12.38, 12.73, 15.108, 15.109, 15.274, 15.293A, 5 15.294, 15.333, 15.393, 15.411, 15.421, 15A.9, 15E.17, 15E.19, 6 15E.64, 15E.116, 15E.117, 15E.120, 15E.192, 15E.193, 15E.193B, 7 15E.194, 15E.195, 15E.196, 15E.197, 15E.206, 15E.208, 15E.311, 8 15E.351, 15F.102, 15G.109, 15G.110, 15G.111, 15H.5, 15H.6, 9 16.100A, 16.135, 16.191, 19B.7, 22.7, 28I.8, 28J.28, 28L.1, 10 28N.2, 28N.3, 73.16, 73.17, 73.18, 73.19, 73.20, 84A.1A, 84A.5, 11 84A.6, 99F.6, 99F.11, 123.143, 123.183, 159.18, 159.20, 159A.3, 12 159A.6B, 184.6, 185.3, 185C.10, 231.51, 239B.8, 239B.17, 13 256.31, 256.39, 256.40, 260C.18A, 260F.6, 260F.6B, 260F.7, 14 260G.3, 260G.4B, 260G.4C, 260G.6, 262.34A, 262B.3, 262B.23, 15 268.4, 303.3B, 303.3C, 306D.2, 307.49, 307C.3, 321.19, 321.252, 16 335.8, 352.4, 368.9, 403.19A, 403.21, 403.22, 404A.4, 422.16A, 17 422.33, 427B.1, 455B.199B, 455B.433, 455E.11, 455J.6, 461A.79, 18 461A.80, 465A.2, 465B.2, 465B.3, 466B.3, 483A.24, 496B.3, 19 496B.6, 496B.12, 496B.17, Code 2011, are amended as follows: 20 1. By striking from the sections the words “department of 21 economic development” and inserting in lieu thereof the words 22 “economic progress authority”. 23 2. By striking from the sections the words “Iowa department 24 of economic development” and inserting in lieu thereof the 25 words “economic progress authority”. 26 3. By striking from the sections the word “department”, 27 when referring to the department of economic development, and 28 inserting in lieu thereof the word “authority”. 29 Sec. 79. CODE EDITOR DIRECTIVE. Sections 15E.231, 15E.232, 30 15E.233, 15G.101, 15G.110, 15G.111, 15G.112, 15G.114, 15G.115, 31 159A.6B, 266.19, 455B.104, and 455B.433, Code 2011, are amended 32 as follows: 33 1. By striking from the sections the words “grow Iowa 34 values fund” and inserting in lieu thereof the words “economic 35 -34- LSB 2042XL (21) 84 tw/sc 34/ 40

S.F. _____ H.F. _____ progress fund”. 1 2. By striking from the sections the words “grow Iowa values 2 financial assistance program” and inserting in lieu thereof the 3 words “economic progress financial assistance program”. 4 Sec. 80. CODE EDITOR DIRECTIVE. 5 1. To the extent not amended or identified by the provisions 6 of this Act, the Code editor is directed to correct all 7 internal references to the economic development board, the 8 department of economic development, the director of the 9 department of economic development, the grow Iowa values 10 fund, and the grow Iowa values financial assistance program 11 by replacing such references with references to the economic 12 progress authority, the director of the economic progress 13 authority, the economic progress fund, and the economic 14 progress financial assistance program, as is appropriate to 15 the context and to the extent that such corrections are in 16 conformance with the intent of this Act. 17 2. The Code editor is also directed to correct in the same 18 manner all similar references in any enacted Iowa Acts as 19 necessary. 20 EXPLANATION 21 This bill relates to economic development by reorganizing 22 the executive branch agencies created to administer economic 23 development programs. 24 Currently, the state’s economic development programs are 25 administered by the department of economic development which 26 is subject to the oversight of the economic development board. 27 Division I of the bill eliminates both the department and the 28 board and creates in their place the partnership for economic 29 progress, the economic progress authority, and the economic 30 progress corporation. 31 The division creates the partnership for economic progress 32 to serve as an advisory body within state government. The 33 partnership must function on a continuing basis for the study 34 and recommendation of solutions and policy alternatives arising 35 -35- LSB 2042XL (21) 84 tw/sc 35/ 40

S.F. _____ H.F. _____ in the area of economic development. The partnership is 1 comprised of seven members appointed by the governor. To the 2 extent possible, the governor must appoint persons with private 3 sector economic development experience. Members are appointed 4 for staggered two-year terms. Members are entitled to per 5 diems and must give bond as required in Code chapter 64. The 6 governor, or if the governor so designates, the lieutenant 7 governor serves as the chairperson of the partnership. 8 Meetings are to be held at least quarterly. The partnership 9 has the power to call and hold meetings, keep records, and 10 develop a strategic vision for economic development in Iowa. 11 This vision must be submitted to the authority and the general 12 assembly by January 31 of each year for their consideration. 13 The division creates the economic progress authority as 14 a public instrumentality and agency of the state exercising 15 public and essential governmental functions to undertake 16 programs which implement economic development policy in 17 the state and to undertake certain finance programs. The 18 authority is the successor entity to the department of economic 19 development, which is eliminated, and all of the existing 20 duties of the department pass to the authority. The powers of 21 the authority are vested in a board of seven members appointed 22 by the governor and subject to confirmation by the senate. The 23 board also has four ex officio nonvoting legislative members, 24 two senators and two representatives appointed by legislative 25 leaders. To the extent possible, the members of the board are 26 to be persons actively employed in the private sector or who 27 otherwise have expertise in economic development. Members of 28 the board serve staggered terms of four years. Members are 29 entitled to per diems and must give bond as required in Code 30 chapter 64. The assets and earnings of the authority, beyond 31 those necessary for the retirement of financial obligations or 32 to implement required programs, inure to the benefit of the 33 state. Members of the authority, while acting within the scope 34 of their agency or employment, are not subject to personal 35 -36- LSB 2042XL (21) 84 tw/sc 36/ 40

S.F. _____ H.F. _____ liability. Conflicts of interest arising from the actions of 1 the authority are not permitted. 2 The division provides the authority certain general powers 3 that are necessary and convenient for purposes of carrying out 4 its duties. Such powers include the power to issue bonds, sue 5 and be sued, have a seal, make bylaws, enter into contracts, 6 adopt rules, acquire property interests, procure insurance, 7 charge fees for its services, invest moneys of the authority, 8 accept appropriations and other forms of financial assistance 9 from various sources, provide technical assistance to public 10 and private entities, conduct research, form committees or 11 panels, establish funds within the state treasury for investing 12 money, provide assistance to select projects, and to exercise 13 all powers typically exercised by private enterprises engaged 14 in business pursuits unless the exercise of such power would 15 be a violation of law. 16 The division also provides certain specific program powers 17 necessary and convenient to carry out programs. Such powers 18 include the power to make contracts for the delegation of 19 services to the economic progress corporation. The functions 20 that can be delegated include marketing, policy research, 21 economic analysis, market expansion, and consulting services. 22 Essential governmental functions and sovereign powers of the 23 state may not be delegated. The contracts may provide for 24 compensation at fair market value. 25 The division provides that the board of the authority must 26 appoint a director for the authority. The director is to be 27 selected primarily for administrative ability and not based on 28 political affiliation. The director is to advise the authority 29 on matters relating to economic development and is to carry out 30 all directives from the board in regard to the operation of the 31 authority. The director must designate certain employees as 32 key professional personnel and must fix their compensation. 33 Other employees of the authority may be professional or 34 nonprofessional. Nonprofessional employees must be employed 35 -37- LSB 2042XL (21) 84 tw/sc 37/ 40

S.F. _____ H.F. _____ consistent with Code chapter 8A, subchapter IV. Professional 1 employees are exempt from Code chapter 8A, subchapter IV and 2 Code chapter 20. 3 The division provides the authority the power to issue bonds 4 and notes. Such bonds and notes must be issued solely from 5 the moneys of the authority. The authority may not pledge the 6 credit of the state. The issuance of bonds and notes requires 7 a resolution of the authority. However, such a resolution may 8 delegate to an officer of the authority the power to negotiate 9 the details of such transactions. Certain standard statutory 10 requirements for the issuance of bonds are provided. 11 The division provides for the establishment of the economic 12 progress corporation by the authority. The corporation is to 13 be established as a nonprofit corporation organized under Code 14 chapter 504 and qualifying as exempt under section 501(c)(3) of 15 the Internal Revenue Code. The corporation must collaborate 16 with the authority, but is not to be considered, in whole or 17 in part, an agency, department, or administrative unit of the 18 state. The corporation cannot receive appropriations from 19 the general assembly and is not required to comply with any 20 requirements that apply to a state agency. The corporation 21 does not have authority to pledge the credit of the state and 22 the state is not liable for the debts or obligations of the 23 corporation. The corporation is to be established for the 24 purpose of expanding economic development opportunities in 25 Iowa and may effectuate this purpose by performing certain 26 functions delegated to it by the authority. The articles of 27 the corporation must provide for its efficient management by a 28 board of directors to be initially appointed by the governor 29 and thereafter selected by a majority vote of the corporation’s 30 board members and a chief executive officer appointed by the 31 corporation’s board. 32 The division provides that the chief executive officer must 33 act to ensure that the corporation creates a strategic plan, 34 prepares an annual budget, and provides an annual report to the 35 -38- LSB 2042XL (21) 84 tw/sc 38/ 40

S.F. _____ H.F. _____ economic progress authority. 1 The division authorizes the corporation to receive and 2 expend funds from public and private sources and to use its 3 resources for the purpose of performing the duties assigned to 4 it. 5 The corporation is required to keep confidential all 6 information disclosed to it by the authority as part of a 7 contract for services. 8 The division provides that the corporation perform certain 9 duties and responsibilities related to its activities under 10 contract with the authority and to economic development in 11 general. 12 On or before January 31 of each year, the director of 13 the authority is to submit a report to the members of the 14 authority. This report may include the information deemed 15 necessary by the director, but must include certain information 16 related to targeted small business procurement activities. 17 The division repeals certain provisions in Code chapter 18 15E relating to a nonprofit corporation operated under the 19 authority of the department of economic development. 20 The division provides for the continuing validity of rules 21 promulgated by the department of economic development and 22 allows for their enforcement by the authority. As soon as 23 practicable, the authority is required to adopt new rules 24 issued under its own rulemaking authority. 25 The division provides for the continuance of financial 26 assistance provided under the programs administered by the 27 department of economic development. 28 Division II of the bill makes certain program changes of more 29 significance than the conforming changes in division III. 30 Division II repeals Code chapter 10C relating to life 31 science products and enterprises. 32 Division II changes the name of the grow Iowa values fund and 33 financial assistance program to the economic progress fund and 34 financial assistance program. 35 -39- LSB 2042XL (21) 84 tw/sc 39/ 40

S.F. _____ H.F. _____ Division II also changes the membership and organizational 1 structure of the Iowa commission on volunteer service. 2 Currently, the commission is created within the governor’s 3 office and is comprised of certain appointed members. The 4 division creates the commission within the authority. The 5 commission’s responsibilities, funding, and programs are not 6 changed in the division. 7 Division II also provides that the authority must work 8 in consultation with the departments of education, revenue, 9 and workforce development in the adoption of rules for the 10 industrial new jobs training program described in Code chapter 11 260E. The authority must also monitor compliance of community 12 colleges participating in the program and compile a report on 13 its effectiveness. 14 Division III moves the office of energy independence to the 15 economic progress authority, makes certain conforming changes, 16 and provides transition provisions related to employees, 17 grants, and financial assistance. The division provides 18 for emergency rulemaking by the authority relating to the 19 provisions of the bill. Certain provisions of the division 20 take effect upon enactment. 21 Division IV makes certain changes in conformance with the 22 provisions of division I and directs the Code editor to correct 23 internal references to the eliminated entities and renamed fund 24 and program throughout the Code. 25 -40- LSB 2042XL (21) 84 tw/sc 40/ 40