HOUSE FILE _____

BY  (PROPOSED COMMITTEE ON APPROPRIATIONS BILL BY HOUSE APPROPRIATIONS SUBCOMMITTEE ON ECONOMIC DEVELOPMENT)

A BILL FOR

An Act relating to and making appropriations to the department of cultural affairs, the department of economic development, certain board of regents institutions, the department of workforce development, the public employment relations board, and the Iowa finance authority, and related matters.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

   Section 1.  DEPARTMENT OF CULTURAL AFFAIRS.  There is appropriated from the general fund of the state to the department of cultural affairs for the fiscal year beginning July 1, 2011, and ending June 30, 2012, the following amounts, or so much thereof as is necessary, to be used for the purposes designated:
   1.  ADMINISTRATION
   a.  For salaries, support, maintenance, miscellaneous purposes, and for not more than the following full-time equivalent positions for the department:
.................................................. $    171,813
............................................... FTEs      69.87
   b.  The department of cultural affairs shall coordinate activities with the tourism office of the department of economic development to promote attendance at the state historical building and at this state’s historic sites.
   c.  Full-time equivalent positions authorized under this subsection shall be funded, in full or in part, using moneys appropriated under this subsection and subsections 2, 3, 4, 5, 6, and 8.
   2.  HISTORICAL DIVISION
   For the support of the historical division:
.................................................. $  2,267,701
   3.  HISTORIC SITES
   For the administration and support of historic sites:
.................................................. $    426,398
   4.  ARTS DIVISION
   For the support of the arts division:
.................................................. $    933,764
   5.  GREAT PLACES
   For the great places program:
.................................................. $    150,000
   6.  ARCHIVE IOWA GOVERNORS’ RECORDS
   For archiving the records of Iowa governors:
.................................................. $      5,000
   7.  RECORDS CENTER RENT
   For payment of rent for the state records center:
.................................................. $    227,243
   8.  BATTLE FLAGS
   For continuation of the project recommended by the Iowa battle flag advisory committee to stabilize the condition of the battle flag collection:
.................................................. $      5,000
   Sec. 2.  GOALS AND ACCOUNTABILITY —— ECONOMIC DEVELOPMENT.
   1.  For the fiscal year beginning July 1, 2011, the goals for the department of economic development shall be to expand and stimulate the state economy, increase the wealth of Iowans, and increase the population of the state.
   2.  To achieve the goals in subsection 1, the department of economic development shall do all of the following for the fiscal year beginning July 1, 2011:
   a.  Concentrate its efforts on programs and activities that result in commercially viable products and services.
   b.  Adopt practices and services consistent with free market, private sector philosophies.
   c.  Ensure economic growth and development throughout the state.
   d.  Work with businesses and communities to continually improve the economic development climate along with the economic well-being and quality of life for Iowans.
   e.  Coordinate with other state agencies to ensure that they are attentive to the needs of an entrepreneurial culture.
   f.  Establish a strong and aggressive marketing image to showcase Iowa’s workforce, existing industry, and potential. A priority shall be placed on recruiting new businesses, business expansion, and retaining existing Iowa businesses. Emphasis shall be placed on entrepreneurial development through helping entrepreneurs secure capital, and developing networks and a business climate conducive to entrepreneurs and small businesses.
   g.  Encourage the development of communities and quality of life to foster economic growth.
   h.  Prepare communities for future growth and development through development, expansion, and modernization of infrastructure.
   i.  Develop public-private partnerships with Iowa businesses in the tourism industry, Iowa tour groups, Iowa tourism organizations, and political subdivisions in this state to assist in the development of advertising efforts.
   j.  Develop, to the fullest extent possible, cooperative efforts for advertising with contributions from other sources.
   Sec. 3.  DEPARTMENT OF ECONOMIC DEVELOPMENT.
   1.  APPROPRIATION
   There is appropriated from the general fund of the state to the department of economic development for the fiscal year beginning July 1, 2011, and ending June 30, 2012, the following amounts, or so much thereof as is necessary, to be used for the purposes designated in subsection 2, and for not more than the following full-time equivalent positions:
.................................................. $  9,928,058
............................................... FTEs     149.00
   2.  DESIGNATED PURPOSES
   a.  For salaries, support, miscellaneous purposes, programs, and the maintenance of an administration division, a business development division, and a community development division.
   b.  The full-time equivalent positions authorized under this section shall be funded, in whole or in part, by the moneys appropriated under subsection 1 or by other moneys received by the department, including certain federal moneys.
   c.  For transfer to the Iowa state commission grant program.
   d.  For business development operations and programs, the film office, international trade, export assistance, workforce recruitment, and the partner state program.
   e.  For transfer to the strategic investment fund.
   f.  For transfer to the grow Iowa values fund.
   g.  For community economic development programs, tourism operations, community assistance, plans for Iowa green corps and summer youth programs, the mainstreet and rural mainstreet programs, the school-to-career program, the community development block grant, and housing and shelter-related programs.
   h.  For achieving the goals and accountability, fulfilling the requirements, and doing all other things required under this bill.
   3.  NONREVERSION
   Notwithstanding section 8.33, moneys appropriated in subsection 1 that remain unencumbered or unobligated at the close of the fiscal year shall not revert but shall remain available for expenditure for the purposes designated in subsection 2 until the close of the succeeding fiscal year.
   4.  FINANCIAL ASSISTANCE RESTRICTIONS
   a.  A business creating jobs with economic development assistance through moneys appropriated in this section shall be subject to contract provisions stating that new and retained jobs shall be filled by individuals who are citizens of the United States who reside within the United States or any person authorized to work in the United States pursuant to federal law, including legal resident aliens in the United States.
   b.  Any vendor who receives such public moneys shall adhere to such contract provisions and provide periodic assurances as the state shall require that the jobs are filled solely by citizens of the United States who reside within the United States or any person authorized to work in the United States pursuant to federal law, including legal resident aliens in the United States.
   c.  A business that receives financial assistance from the department from moneys appropriated in this bill shall only employ individuals legally authorized to work in this state. In addition to all other applicable penalties provided by current law, all or a portion of the assistance received by a business which is found to knowingly employ individuals not legally authorized to work in this state is subject to recapture by the department.
   5.  USES OF APPROPRIATIONS
   a.  From the moneys appropriated in this section, the department may provide financial assistance in the form of a grant to a community economic development entity for conducting a local workforce recruitment effort designed to recruit former citizens of the state and former students at colleges and universities in the state to meet the needs of local employers.
   b.  From the moneys appropriated in this section, the department may provide financial assistance to early stage industry companies being established by women entrepreneurs.
   c.  From the moneys appropriated in this section, the department may provide financial assistance in the form of grants, loans, or forgivable loans for advanced research and commercialization projects involving value-added agriculture, advanced technology, or biotechnology.
   6.  WORLD FOOD PRIZE AWARD
   a.  Notwithstanding the standing limited appropriation provided under section 15.368, subsection 1, an appropriation from the general fund of the state to the department of economic development for the fiscal year beginning July 1, 2011, and ending June 30, 2012, shall not be made for purposes of the world food prize.
   b.  It is the intent of the general assembly to reconsider in a future fiscal year the allocation of moneys for the support of the world food prize award.
   Sec. 4.  VISION IOWA PROGRAM —— FTE AUTHORIZATION.  For purposes of administrative duties associated with the vision Iowa program, the department of economic development is authorized an additional 2.25 FTEs above those otherwise authorized in this Act.
   Sec. 5.  INSURANCE ECONOMIC DEVELOPMENT.  From the moneys collected by the division of insurance in excess of the anticipated gross revenues under section 505.7, subsection 3, during the fiscal year beginning July 1, 2011, $100,000 shall be transferred to the department of economic development for insurance economic development and international insurance economic development.
   Sec. 6.  COMMUNITY DEVELOPMENT LOAN FUND.  Notwithstanding section 15E.120, subsection 5, there is appropriated from the Iowa community development loan fund all moneys available during the fiscal year beginning July 1, 2011, and ending June 30, 2012, to the department of economic development for purposes of the community development program.
   Sec. 7.  WORKFORCE DEVELOPMENT FUND.  There is appropriated from the workforce development fund account created in section 15.342A to the workforce development fund created in section 15.343 for the fiscal year beginning July 1, 2011, and ending June 30, 2012, the following amount, for purposes of the workforce development fund, and for not more than the following full-time equivalent positions:
.................................................. $  4,000,000
............................................... FTEs       4.00
   Sec. 8.  WORKFORCE DEVELOPMENT ADMINISTRATION.  From moneys appropriated or transferred to or receipts credited to the workforce development fund created in section 15.343, up to $400,000 for the fiscal year beginning July 1, 2011, and ending June 30, 2012, are appropriated to the department of economic development for the administration of workforce development activities including salaries, support, maintenance, and miscellaneous purposes, and for not more than the following full-time equivalent positions:
............................................... FTEs       4.00
   Sec. 9.  JOB TRAINING FUND.  Notwithstanding section 15.251, all moneys in the job training fund on July 1, 2011, and any moneys appropriated or credited to the fund during the fiscal year beginning July 1, 2011, shall be transferred to the workforce development fund established pursuant to section 15.343.
   Sec. 10.  IOWA STATE UNIVERSITY.
   1.  There is appropriated from the general fund of the state to Iowa state university of science and technology for the fiscal year beginning July 1, 2011, and ending June 30, 2012, the following amount, or so much thereof as is necessary, to be used for small business development centers, the science and technology research park, and the institute for physical research and technology, and for not more than the following full-time equivalent positions:
.................................................. $    935,233
............................................... FTEs      56.63
   2.  Of the moneys appropriated in subsection 1, Iowa state university of science and technology shall allocate at least $935,233 for purposes of funding small business development centers.
   3.  Iowa state university of science and technology shall do all of the following:
   a.  Direct expenditures for research toward projects that will provide economic stimulus for Iowa.
   b.  Provide emphasis to providing services to Iowa-based companies.
   4.
  a.  It is the intent of the general assembly that the industrial incentive program focus on Iowa industrial sectors and seek contributions and in-kind donations from businesses, industrial foundations, and trade associations, and that moneys for the institute for physical research and technology industrial incentive program shall be allocated only for projects which are matched by private sector moneys for directed contract research or for nondirected research. The match required of small businesses as defined in section 15.102, subsection 6, for directed contract research or for nondirected research shall be $1 for each $3 of state funds. The match required for other businesses for directed contract research or for nondirected research shall be $1 for each $1 of state funds. The match required of industrial foundations or trade associations shall be $1 for each $1 of state funds.
   b.  Iowa state university of science and technology shall report annually to the joint appropriations subcommittee on economic development and the legislative services agency the total amount of private contributions, the proportion of contributions from small businesses and other businesses, and the proportion for directed contract research and nondirected research of benefit to Iowa businesses and industrial sectors.
   5.  Notwithstanding section 8.33, moneys appropriated in this section that remain unencumbered or unobligated at the close of the fiscal year shall not revert but shall remain available for expenditure for the purposes designated until the close of the succeeding fiscal year.
   Sec. 11.  UNIVERSITY OF NORTHERN IOWA.
   1.  There is appropriated from the general fund of the state to the university of northern Iowa for the fiscal year beginning July 1, 2011, and ending June 30, 2012, the following amount, or so much thereof as is necessary, to be used for the MyEntreNet internet application, including salaries, support, maintenance, miscellaneous purposes, and for not more than the following full-time equivalent positions:
.................................................. $    273,064
............................................... FTEs       3.06
   2.  The university of northern Iowa shall do all of the following:
   a.  Direct expenditures for research toward projects that will provide economic stimulus for Iowa.
   b.  Provide emphasis to providing services to Iowa-based companies.
   3.  Notwithstanding section 8.33, moneys appropriated in this section that remain unencumbered or unobligated at the close of the fiscal year shall not revert but shall remain available for expenditure for the purposes designated until the close of the succeeding fiscal year.
   Sec. 12.  BOARD OF REGENTS REPORT.  By January 15, 2012, the state board of regents shall submit a report on the progress of regents institutions in meeting the strategic plan for technology transfer and economic development to the secretary of the senate, the chief clerk of the house of representatives, and the legislative services agency.
   Sec. 13.  DEPARTMENT OF WORKFORCE DEVELOPMENT.  There is appropriated from the general fund of the state to the department of workforce development for the fiscal year beginning July 1, 2011, and ending June 30, 2012, the following amounts, or so much thereof as is necessary, for the purposes designated:
   1.  DIVISION OF LABOR SERVICES
   a.  For the division of labor services, including salaries, support, maintenance, miscellaneous purposes, and for not more than the following full-time equivalent positions:
.................................................. $  3,495,440
............................................... FTEs      62.75
   b.  From the contractor registration fees, the division of labor services shall reimburse the department of inspections and appeals for all costs associated with hearings under chapter 91C, relating to contractor registration.
   2.  DIVISION OF WORKERS’ COMPENSATION
   a.  For the division of workers’ compensation, including salaries, support, maintenance, miscellaneous purposes, and for not more than the following full-time equivalent positions:
.................................................. $  2,267,788
............................................... FTEs      29.00
   b.  The division of workers’ compensation shall charge a $100 filing fee for workers’ compensation cases. The filing fee shall be paid by the petitioner of a claim. However, the fee can be taxed as a cost and paid by the losing party, except in cases where it would impose an undue hardship or be unjust under the circumstances. The moneys generated by the filing fee allowed under this subsection are appropriated to the department of workforce development to be used for purposes of administering the division of workers’ compensation.
   3.  WORKFORCE DEVELOPMENT OPERATIONS
   a.  For the operation of field offices, the workforce development board, and for not more than the following full-time equivalent positions:
.................................................. $  9,707,042
............................................... FTEs     130.00
   b.  The department shall not reduce the number of field offices being operated as of January 1, 2009.
   4.  OFFENDER REENTRY PROGRAM
   a.  For the development and administration of an offender reentry program to provide offenders with employment skills, and for not more than the following full-time equivalent positions:
.................................................. $    284,464
............................................... FTEs       3.00
   b.  The department shall partner with the department of corrections to provide staff within the correctional facilities to improve offenders’ abilities to find and retain productive employment.
   5.  Notwithstanding section 8.33, moneys appropriated in this section that remain unencumbered or unobligated at the close of the fiscal year shall not revert but shall remain available for expenditure for the purposes designated until the close of the succeeding fiscal year.
   Sec. 14.  ACCOUNTABILITY —— AUDIT.  The auditor of state shall annually conduct an audit of the department of workforce development and shall report the findings of such annual audit, including the accountability of programs of the department, to the chairpersons and ranking members of the joint appropriations subcommittee on economic development. The department shall pay for the costs associated with the audit.
   Sec. 15.  EMPLOYMENT SECURITY CONTINGENCY FUND —— DIVISION OF WORKERS’ COMPENSATION.
   1.  There is appropriated from the special employment security contingency fund to the department of workforce development for the fiscal year beginning July 1, 2011, and ending June 30, 2012, the following amount, or so much thereof as is necessary, for the division of workers’ compensation, salaries, support, maintenance, and miscellaneous purposes:
.................................................. $    471,000
   2.  Any remaining additional penalty and interest revenue is appropriated to the department of workforce development to accomplish the mission of the department.
   Sec. 16.  SPECIAL EMPLOYMENT SECURITY CONTINGENCY FUND —— FIELD OFFICES.  There is appropriated from the special employment security contingency fund to the department of workforce development for the fiscal year beginning July 1, 2011, and ending June 30, 2012, the following amount, or so much thereof as is necessary, to be used for field offices:
.................................................. $    662,427
   Sec. 17.  UNEMPLOYMENT COMPENSATION RESERVE FUND —— FIELD OFFICES.  Notwithstanding section 96.9, subsection 8, paragraph “e”, there is appropriated from interest earned on the unemployment compensation reserve fund to the department of workforce development for the fiscal year beginning July 1, 2011, and ending June 30, 2012, the following amount or so much thereof as is necessary, for the operation of field offices:
.................................................. $  6,500,000
   Sec. 18.  GENERAL FUND —— EMPLOYEE MISCLASSIFICATION PROGRAM.  There is appropriated from the general fund of the state to the department of workforce development for the fiscal year beginning July 1, 2011, and ending June 30, 2012, the following amount, or so much thereof as is necessary, to be used for enhancing efforts to investigate employers that misclassify workers and for not more than the following full-time equivalent positions:
.................................................. $    451,458
............................................... FTEs       8.10
   Sec. 19.  PUBLIC EMPLOYMENT RELATIONS BOARD.
   1.  There is appropriated from the general fund of the state to the public employment relations board for the fiscal year beginning July 1, 2011, and ending June 30, 2012, the following amount, or so much thereof as is necessary, for salaries, support, maintenance, miscellaneous purposes, and for not more than the following full-time equivalent positions:
.................................................. $  1,057,871
............................................... FTEs       9.00
   2.  Of the moneys appropriated in this section, the board shall allocate $15,000 for maintaining a website that allows searchable access to a database of collective bargaining information.
   Sec. 20.  IOWA FINANCE AUTHORITY AUDIT.  The auditor of state is requested to review the audit of the Iowa finance authority performed by the auditor hired by the authority.
   Sec. 21.  UNEMPLOYMENT COMPENSATION PROGRAM.  Notwithstanding section 96.9, subsection 4, paragraph “a”, moneys credited to the state by the secretary of the treasury of the United States pursuant tosection 903 of the Social Security Act are appropriated to the department of workforce development and shall be used by the department for the administration of the unemployment compensation program only. This appropriation shall not apply to any fiscal year beginning after December 31, 2011.
   Sec. 22.  IOWA FINANCE AUTHORITY.
   1.  There is appropriated from the general fund of the state to the Iowa finance authority for the fiscal year beginning July 1, 2011, and ending June 30, 2012, the following amount, or so much thereof as is necessary, to be used for the rent subsidy program, to provide reimbursement for rent expenses to eligible persons:
.................................................. $    658,000
   2.  Participation in the rent subsidy program shall be limited to only those persons who meet the requirements for the nursing facility level of care for home and community-based services waiver services as in effect on July 1, 2010, and to those individuals who are eligible for the federal money follows the person grant program under the medical assistance program. Of the moneys appropriated in this section, not more than $35,000 may be used for administrative costs.
EXPLANATION
   This bill makes appropriations and transfers from the general fund of the state and other funds to the department of cultural affairs, the department of economic development, the university of northern Iowa, Iowa state university, the department of workforce development, the public employment relations board, and the Iowa finance authority for the 2011-2012 fiscal year.
   The bill provides, among other things, that the goals for the department of economic development shall be to expand and stimulate the state economy, increase the wealth of Iowans, and increase the population of the state.
   The bill transfers moneys collected by the division of insurance in excess of the anticipated gross revenues to the department of economic development for purposes of insurance economic development and international insurance economic development.
   The bill appropriates moneys from the Iowa community development loan fund to the department of economic development for purposes of the community development program.
   The bill appropriates moneys from the workforce development fund account to the workforce development fund.
   The bill provides that moneys appropriated or transferred to or receipts credited to the workforce development fund are appropriated to the department of economic development for administration of workforce development activities.
   The bill provides that all moneys in the job training fund on July 1, 2011, and any moneys appropriated or credited to the fund during the fiscal year beginning July 1, 2011, shall be transferred to the workforce development fund.
   The bill requires the state board of regents to submit a report on the progress of regents institutions in meeting the strategic plan for technology transfer and economic development.
   The bill requires the auditor of state to conduct an audit of the department of workforce development.
   The bill appropriates moneys from the special employment security contingency fund to the department of workforce development for the division of workers’ compensation and for the operation of field offices.
   The bill appropriates interest earned on the unemployment compensation reserve fund to the department of workforce development for the operation of field offices.
   The bill appropriates moneys to the department of workforce development for an employee misclassification program.
   The bill requests the auditor of state to review the audit of the Iowa finance authority performed by the auditor hired by the authority.
   The bill appropriates moneys from moneys credited to the state by the secretary of the treasury of the United States pursuant to the Social Security Act to the department of workforce development for the administration of the unemployment compensation program only.
   The bill appropriates moneys to the Iowa finance authority for purposes of the rent subsidy program.