S.F. 228 Section 1. Section 2.42, Code 2011, is amended by adding the 1 following new subsection: 2 NEW SUBSECTION . 17. To appoint the small business advocate 3 for a term of office ending June 30, 2015. 4 Sec. 2. NEW SECTION . 2E.1 Office of the small business 5 advocate established. 6 The office of the small business advocate is established as 7 an agency of the legislative branch under the direction and 8 control of the legislative council. 9 Sec. 3. NEW SECTION . 2E.2 Appointment —— vacancy and 10 removal —— prohibited activities. 11 1. The small business advocate shall be appointed by the 12 legislative council as provided in section 2.42. The small 13 business advocate shall be a citizen of the United States and 14 a resident of the state of Iowa, and shall be qualified to 15 analyze problems of law, administration, public policy, and 16 commerce especially as they relate to small business. 17 2. The legislative council shall fill a vacancy in the 18 office in the same manner as the original appointment. 19 3. The small business advocate is not authorized to hire 20 staff or employees. 21 4. The small business advocate may be removed at any time by 22 the legislative council. 23 5. The small business advocate shall not do any of the 24 following: 25 a. Hold another public office of trust or profit under the 26 laws of this state other than the office of notary public. 27 b. Engage in other employment for remuneration with an 28 agency or department of state government. 29 c. Be actively involved in partisan affairs. 30 Sec. 4. NEW SECTION . 2E.3 Duties. 31 The small business advocate shall do all of the following: 32 1. Monitor the impact of government regulation on job growth 33 in the state. 34 2. Collect data and compile reports on the impact of 35 -1- LSB 2331XS (4) 84 tw/rj 1/ 6

S.F. 228 government regulation on job growth in the state. 1 3. Recommend to the legislative council policies and laws 2 that promote a regulatory environment conducive to job growth, 3 and particularly to the creation of jobs in small businesses 4 across the state. 5 4. Advise the legislative council and the general assembly 6 on the impacts that proposed legislation will have on the 7 ability of employers to create and retain jobs. 8 5. On or before January 1 of each year, submit a report 9 to the legislative council, the legislative services agency, 10 the administrative rules review committee, and the general 11 assembly. The report shall include the small business 12 advocate’s recommendations for changes to law and public policy 13 that will remove barriers to job growth in the state. 14 Sec. 5. NEW SECTION . 2E.4 Information from the citizens’ 15 aide. 16 In investigating administrative actions, to the extent 17 the citizens’ aide becomes aware of a pattern of regulation 18 evidencing actions or subjects described in section 2C.11, 19 the citizens’ aide shall inform the small business advocate 20 of the pattern, and the small business advocate shall develop 21 and recommend to the legislative council, the legislative 22 services agency, the administrative rules review committee, and 23 the general assembly changes in policy or law to address the 24 pattern. 25 Sec. 6. NEW SECTION . 2E.5 Solutions-to-minimize- 26 unreasonable-government committee. 27 1. The solutions-to-minimize-unreasonable-government 28 committee is created with staffing provided by the legislative 29 services agency. 30 2. The purpose of the committee is to review existing 31 and proposed state statutes, administrative rules, and other 32 agency requirements to consider whether the statutes, rules, 33 or requirements impose or would impose unnecessary barriers to 34 creating or maintaining private sector jobs. The committee may 35 -2- LSB 2331XS (4) 84 tw/rj 2/ 6

S.F. 228 issue reports to the general assembly at any time providing 1 recommendations for revising or eliminating statutes, rules, or 2 requirements as necessary to address such barriers. 3 3. The membership of the committee shall be appointed by the 4 small business advocate to include the following: 5 a. Five voting members who represent Iowa small businesses 6 from nominees provided by the Iowa office of the national 7 federation of independent business. 8 b. Four voting members who represent a broad spectrum of 9 Iowa businesses from nominees provided by the Iowa association 10 of business and industry. 11 4. The terms of voting members, election of officers, 12 and other procedural matters shall be as determined by the 13 committee. Voting members are not eligible for per diem or 14 expenses incurred in connection with committee work. 15 Sec. 7. Section 15G.110, Code 2011, is amended to read as 16 follows: 17 15G.110 Appropriation. 18 1. For the fiscal period beginning July 1, 2005, and ending 19 June 30, 2008, and for the fiscal period beginning July 1, 20 2011, and ending June 30, 2015, there is appropriated to the 21 department of economic development each fiscal year fifty 22 forty-nine million eight hundred fifty thousand dollars from 23 the general fund of the state for deposit in the grow Iowa 24 values fund. 25 2. For the fiscal period beginning July 1, 2008, and ending 26 June 30, 2011, there is appropriated to the department of 27 economic development each fiscal year fifty forty-nine million 28 eight hundred fifty thousand dollars from the rebuild Iowa 29 infrastructure fund for deposit in the grow Iowa values fund, 30 notwithstanding section 8.57, subsection 6 , paragraph “c” . 31 Sec. 8. Section 15G.111, subsection 3, Code 2011, is amended 32 to read as follows: 33 3. Appropriation. For each fiscal year of the fiscal 34 period beginning July 1, 2009, and ending June 30, 2015, there 35 -3- LSB 2331XS (4) 84 tw/rj 3/ 6

S.F. 228 is appropriated from the fund to the department of economic 1 development for purposes of making expenditures pursuant to 2 this chapter fifty forty-nine million eight hundred fifty 3 thousand dollars. 4 Sec. 9. Section 15G.111, subsection 4, unnumbered paragraph 5 1, Code 2011, is amended to read as follows: 6 Of the moneys appropriated to the department pursuant to 7 subsection 3 , the department shall allocate twenty-eight 8 million five three hundred fifty thousand dollars each fiscal 9 year as follows: 10 EXPLANATION 11 This bill provides for the establishment of a small business 12 advocate’s office and a solutions-to-minimize-unreasonable- 13 government committee. 14 The office of the small business advocate is established as 15 an agency of the legislative branch under the direction and 16 control of the legislative council. 17 The small business advocate is not authorized to hire staff 18 or employees. The small business advocate cannot hold another 19 public office of trust or profit other than the office of 20 notary public, engage in other employment for remuneration with 21 an agency or department of state government, or be actively 22 involved in partisan affairs. 23 The duties of the small business advocate are to: 24 1. Monitor the impact of government regulation on job growth 25 in the state. 26 2. Collect data and compile reports on the impact of 27 government regulation on job growth in the state. 28 3. Recommend to the legislative council policies and laws 29 that promote a regulatory environment conducive to job growth 30 and particularly to the creation of jobs in small businesses 31 across the state. 32 4. Advise the legislative council and the general assembly 33 on the impacts that proposed legislation will have on the 34 ability of employers to create and retain jobs. 35 -4- LSB 2331XS (4) 84 tw/rj 4/ 6

S.F. 228 5. On or before January 1 of each year, submit a report 1 to the legislative council, the legislative services agency, 2 the administrative rules review committee, and the general 3 assembly. The report shall include the small business 4 advocate’s recommendations for changes to law and public policy 5 that will remove barriers to job growth in the state. 6 The office of the citizens’ aide (commonly called the 7 ombudsman), has some duties that overlap with the concerns of 8 the small business advocate. In investigating administrative 9 actions, to the extent the citizens’ aide becomes aware 10 of a pattern of regulation evidencing actions or subjects 11 described in Code section 2C.11, the citizens’ aide must inform 12 the small business advocate of the pattern, and the small 13 business advocate is directed to develop and recommend to the 14 legislative council, the legislative services agency, the 15 administrative rules review committee, and the general assembly 16 changes in policy or law to address the pattern. 17 The bill creates the solutions-to-minimize-unreasonable- 18 government committee in the office of the small business 19 advocate in new Code section 2E.5, to be staffed by the 20 legislative services agency. 21 The purpose of the committee is to review existing and 22 proposed state statutes, administrative rules, and other 23 agency requirements to consider whether the statutes, rules, 24 or requirements impose or would impose unnecessary barriers to 25 creating or maintaining private sector jobs. The committee may 26 issue reports to the general assembly at any time providing 27 recommendations for revising or eliminating statutes, rules, or 28 requirements as necessary to address such barriers. 29 The committee consists of nine voting members appointed by 30 the small business advocate from nominees provided by the Iowa 31 office of the national federation of independent business and 32 the Iowa association of business and industry. The committee 33 is authorized to determine the terms of voting members, 34 election of officers, and other procedural matters. Voting 35 -5- LSB 2331XS (4) 84 tw/rj 5/ 6

S.F. 228 members are not eligible for per diem or expenses incurred in 1 connection with committee work. 2 The annual budget for the small business advocate is 3 approved by the legislative council from the general assembly’s 4 standing appropriation from the state’s general fund. In order 5 to free up state general fund moneys for any additional costs 6 related to the appointment of a small business advocate, the 7 annual appropriation for the grow Iowa values fund is reduced 8 by $150,000. 9 -6- LSB 2331XS (4) 84 tw/rj 6/ 6