S.F. 383 Section 1. Section 15.103, subsection 6, Code 2011, is 1 amended to read as follows: 2 6. As part of the organizational structure of the 3 department, the board shall establish a due diligence 4 committee and a loan and credit guarantee committee composed 5 of members of the board. The committees shall serve in an 6 advisory capacity to the board and shall carry out any duties 7 assigned by the board in relation to programs administered 8 by the department. The loan and credit guarantee committee 9 shall advise the board on the winding up of loan guarantees 10 made under the loan and credit guarantee program established 11 pursuant to section 15E.224 , Code 2009 , and on the proper 12 amount of the allocation described in section 15G.111, 13 subsection 4 , paragraph “g” . 14 Sec. 2. Section 15.104, subsection 1, Code 2011, is amended 15 by striking the subsection. 16 Sec. 3. Section 15.104, subsection 8, paragraphs b and i, 17 Code 2011, are amended by striking the paragraphs. 18 Sec. 4. Section 15.104, subsection 8, paragraph j, Code 19 2011, is amended to read as follows: 20 j. Renewable fuel programs. A detailed accounting of 21 expenditures in support of renewable fuel infrastructure 22 programs, as provided in sections 15G.203 and 15G.204 . The 23 renewable fuel infrastructure board established in section 24 15G.202 shall approve that portion of the department’s annual 25 report regarding projects supported from the grow Iowa values 26 fund created in section 15G.111 . This paragraph is repealed on 27 July 1, 2012. 28 Sec. 5. Section 15.327, Code 2011, is amended by adding the 29 following new subsections: 30 NEW SUBSECTION . 01. “Base employment level” means the 31 number of full-time equivalent positions at a business, 32 as established by the department and a business using the 33 business’s payroll records, as of the date a business applies 34 for financial assistance under the program. 35 -1- LSB 2481XS (2) 84 tw/rj 1/ 8

S.F. 383 NEW SUBSECTION . 3A. “County wage” means the average hourly 1 compensation rates, excluding the value of nonwage benefits for 2 comparable jobs, from the most recent four quarters of wage 3 and employment information from the quarterly covered wage and 4 employment data report issued by the department of workforce 5 development. 6 NEW SUBSECTION . 7A. “Full-time equivalent position” means 7 a non-part-time position for the number of hours or days per 8 week considered to be full-time work for the kind of service 9 or work performed for an employer. Typically, a full-time 10 equivalent position requires two thousand eighty hours of work 11 in a calendar year, including all paid holidays, vacations, 12 sick time, and other paid leave. 13 NEW SUBSECTION . 7B. “Maintenance period” means the period 14 of time between the project completion date and maintenance 15 period completion date. 16 NEW SUBSECTION . 12A. “Regional wage” means the average 17 hourly compensation rates, excluding the value of nonwage 18 benefits for comparable jobs, from the most recent four 19 quarters of wage and employment information from the quarterly 20 covered wage and employment data report issued by the 21 department of workforce development. 22 Sec. 6. Section 15.327, subsections 1, 4, 7, 8, 10, 12, 23 and 13, Code 2011, are amended by striking the subsections and 24 inserting in lieu thereof the following: 25 1. “Benefit” means nonwage compensation provided to an 26 employee. Benefits typically include medical and dental 27 insurance plans, pension, retirement, and profit-sharing plans, 28 child care services, life insurance coverage, vision insurance 29 coverage, disability insurance coverage, and any other nonwage 30 compensation as determined by the board. 31 4. “Created job” means a new, permanent, full-time 32 equivalent position added to a business’s payroll in excess of 33 the business’s base employment level. 34 7. “Fiscal impact ratio” means a ratio calculated by 35 -2- LSB 2481XS (2) 84 tw/rj 2/ 8

S.F. 383 estimating the amount of taxes to be received from a business 1 by the state and dividing the estimate by the estimated cost 2 to the state of providing certain financial incentives to 3 the business, reflecting a ten-year period of taxation and 4 incentives and expressed in terms of current dollars. For 5 purposes of the program, “fiscal impact ratio” does not include 6 taxes received by political subdivisions. 7 8. “Maintenance period completion date” means the date on 8 which the maintenance period ends. 9 10. “Project completion date” means the date by which 10 a recipient of financial assistance has agreed to meet all 11 the terms and obligations contained in an agreement with the 12 department as described in section 15.330. 13 12. “Qualifying wage threshold” means the county wage or the 14 regional wage, as calculated pursuant to subsections 3A and 15 12A, whichever is lower. 16 13. “Retained job” means a full-time equivalent position, 17 in existence at the time an employer applies for financial 18 assistance which remains continuously filled or authorized 19 to be filled as soon as possible and which is at risk of 20 elimination if the project for which the employer is seeking 21 assistance does not proceed. 22 Sec. 7. Section 15.329, subsection 2, Code 2011, is amended 23 to read as follows: 24 2. A business providing a sufficient package of benefits to 25 each employee holding a created or retained job shall qualify 26 for a credit against the qualifying wage threshold requirements 27 described in subsection 1 , paragraph “c” . The credit shall be 28 calculated and applied in the following manner : described in 29 section 15G.112, subsection 4 , paragraph “b” . 30 a. By multiplying the qualifying wage threshold of 31 the county in which the business is located by one and 32 three-tenths. 33 b. By multiplying the result of paragraph “a” by one-tenth. 34 c. The amount of the result of paragraph “b” shall be 35 -3- LSB 2481XS (2) 84 tw/rj 3/ 8

S.F. 383 credited against the amount of the one hundred thirty percent 1 qualifying wage threshold requirement that the business is 2 required to meet under subsection 1, paragraph “c” . 3 d. The credit shall not be applied against the one hundred 4 percent of qualifying wage threshold requirement described in 5 subsection 1, paragraph “c” . 6 Sec. 8. Section 15.330, subsection 4, Code 2011, is amended 7 to read as follows: 8 4. A project completion date, a maintenance period 9 completion date, the number of jobs to be created or retained, 10 or certain other terms and obligations described in section 11 15G.112, subsection 1 , paragraph “d” an agreement , as the 12 department deems necessary in order to make the requirements in 13 project agreements uniform. The department, with the approval 14 of the board, may adopt rules as necessary for making such 15 requirements uniform. Such rules shall be in compliance with 16 the provisions of this part and with the provisions of chapter 17 15G . 18 Sec. 9. Section 15.335A, subsection 1, unnumbered paragraph 19 1, Code 2011, is amended to read as follows: 20 Tax incentives are available to eligible businesses as 21 provided in this section . The incentives are based upon the 22 number of jobs created or retained that pay at least one 23 hundred thirty percent of the qualifying wage threshold as 24 computed pursuant to section 15G.112 15.329 , subsection 4 1 , 25 and the amount of the qualifying investment made according to 26 the following schedule: 27 Sec. 10. Section 15.335A, subsection 2, paragraphs b, c, f, 28 and g, Code 2011, are amended by striking the paragraphs. 29 Sec. 11. Section 15.335A, subsection 5, Code 2011, is 30 amended to read as follows: 31 5. The department shall negotiate the amount of tax 32 incentives provided to an applicant under the program 33 in accordance with this section and section 15G.112 , as 34 applicable . 35 -4- LSB 2481XS (2) 84 tw/rj 4/ 8

S.F. 383 Sec. 12. Section 15A.7, subsection 3, Code 2011, is amended 1 to read as follows: 2 3. That the employer shall agree to pay wages for the jobs 3 for which the credit is taken of at least the county wage or 4 the regional wage, as calculated by the department pursuant to 5 section 15G.112, subsection 3 15.327, subsections 3A and 12A , 6 whichever is lower. Eligibility for the supplemental credit 7 shall be based on a one-time determination of starting wages by 8 the community college. 9 Sec. 13. Section 15E.193, subsection 1, paragraphs b 10 through d, Code 2011, are amended to read as follows: 11 b. (1) The business shall provide a sufficient package of 12 benefits to each employee holding a created or retained job. 13 For purposes of this paragraph, “created job” and “retained job” 14 have the same meaning as defined in section 15G.101 15.327 . 15 (2) The board, upon the recommendation of the department, 16 shall adopt rules determining what constitutes a sufficient 17 package of benefits. 18 c. The business shall pay a wage that is at least ninety 19 percent of the qualifying wage threshold. For purposes of this 20 paragraph, “qualifying wage threshold” has the same meaning as 21 defined in section 15G.101 15.327 . 22 d. Creates or retains at least ten full-time equivalent 23 positions and maintains them until the maintenance period 24 completion date. For purposes of this paragraph, “maintenance 25 period completion date” and “full-time equivalent position” have 26 the same meanings as defined in section 15G.101 15.327 . 27 Sec. 14. Section 15E.231, unnumbered paragraph 1, Code 28 2011, is amended to read as follows: 29 In order for an An economic development region to receive 30 moneys under the grow Iowa values financial assistance program 31 established in section 15G.112 , an shall establish a regional 32 development plan. An economic development region’s regional 33 development plan must be approved by the department. An 34 economic development region shall consist of not less than 35 -5- LSB 2481XS (2) 84 tw/rj 5/ 8

S.F. 383 three counties, unless two contiguous counties have a combined 1 population of at least three hundred thousand based on the 2 most recent federal decennial census. An economic development 3 region shall establish a focused economic development effort 4 that shall include a regional development plan relating to one 5 or more of the following areas: 6 Sec. 15. Section 15E.232, subsections 1, 3, 4, 5, 6, and 7, 7 Code 2011, are amended by striking the subsections. 8 Sec. 16. Section 15E.351, subsection 1, Code 2011, is 9 amended to read as follows: 10 1. The department shall establish and administer a business 11 accelerator program to provide financial assistance for 12 the establishment and operation of a business accelerator 13 for technology-based, value-added agricultural, information 14 solutions, alternative and renewable energy including the 15 alternative and renewable energy sectors listed in section 16 476.42, subsection 1 , paragraph “a” , or advanced manufacturing 17 start-up businesses or for a satellite of an existing business 18 accelerator. The program shall be designed to foster the 19 accelerated growth of new and existing businesses through the 20 provision of technical assistance. The department, subject to 21 the approval of the economic development board, may provide 22 financial assistance under this section from moneys allocated 23 for regional financial assistance pursuant to section 15G.111, 24 subsection 9 . 25 Sec. 17. Section 159A.6B, subsection 2, Code 2011, is 26 amended to read as follows: 27 2. The office may execute contracts in order to provide 28 technical support and outreach services for purposes of 29 assisting and educating interested persons as provided in this 30 section . The office may also contract with a consultant to 31 provide part or all of these services. The office may require 32 that a person receiving assistance pursuant to this section 33 contribute up to fifty percent of the amount required to 34 support the costs of contracting with the consultant to provide 35 -6- LSB 2481XS (2) 84 tw/rj 6/ 8

S.F. 383 assistance to the person. The office shall assist the person 1 in completing any technical information required in order to 2 receive assistance by the department of economic development 3 pursuant to the value-added agriculture component of the grow 4 Iowa values financial assistance program established pursuant 5 to section 15G.112 . 6 Sec. 18. Section 455B.104, subsection 2, Code 2011, is 7 amended by striking the subsection. 8 Sec. 19. 2010 Iowa Acts, chapter 1184, section 26, is 9 amended to read as follows: 10 SEC. 26. GROW IOWA VALUES FUND. 11 1. There is appropriated from the rebuild Iowa 12 infrastructure fund to the department of economic development 13 for deposit in the grow Iowa values fund, for the fiscal year 14 beginning July 1, 2010, and ending June 30, 2011, the following 15 amount, notwithstanding section 8.57, subsection 6, paragraph 16 “c”: 17 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 38,000,000 18 2. On the effective date of this section of this 2011 Iowa 19 Act, any unobligated and unencumbered moneys appropriated in 20 this section and section 27 of this 2010 Iowa Act, shall revert 21 to the general fund of the state. Any repayments of moneys 22 loaned from moneys appropriated in this section and section 27 23 of this 2010 Iowa Act, and received after the effective date 24 of this 2011 Iowa Act, shall be credited to the general fund of 25 the state. 26 Sec. 20. 2010 Iowa Acts, chapter 1184, section 27, is 27 amended to read as follows: 28 SEC. 27. GROW IOWA VALUES FUND APPROPRIATION REDUCTION. 29 1. In lieu of the $50,000,000 appropriated for the fiscal 30 year beginning July 1, 2010, and ending June 30, 2011, from 31 the grow Iowa values fund to the department of economic 32 development pursuant to section 15G.111, subsection 3, there is 33 appropriated from the grow Iowa values fund to the department 34 of economic development for the fiscal year beginning July 1, 35 -7- LSB 2481XS (2) 84 tw/rj 7/ 8

S.F. 383 2010, and ending June 30, 2011, $38,000,000 for the purposes of 1 making expenditures pursuant to chapter 15G. 2 2. On the effective date of this section of this 2011 Iowa 3 Act, an entity receiving moneys appropriated pursuant to this 4 section, with the exception of moneys allocated pursuant to 5 section 28, subsections 2 and 5, of this 2010 Iowa Act, shall 6 cease obligating or encumbering such moneys. 7 Sec. 21. REPEAL. Section 15E.233, Code 2011, is repealed. 8 Sec. 22. REPEAL. Sections 15G.101 and 15G.109 through 9 15G.115, Code 2011, are repealed. 10 Sec. 23. REPEAL. Section 266.19, Code 2011, is repealed. 11 Sec. 24. REPEAL. Section 455B.433, Code 2011, is repealed. 12 Sec. 25. EFFECTIVE DATE. The provisions of this Act 13 amending 2010 Iowa Acts, chapter 1184, being deemed of 14 immediate importance, take effect upon enactment. 15 EXPLANATION 16 This bill relates to the grow Iowa values fund. 17 The bill repeals Code sections related to the grow Iowa 18 values fund and financial assistance program and makes 19 conforming amendments. The bill amends two 2010 Iowa Acts 20 provisions to prohibit the department of economic development 21 from further obligating any moneys appropriated for purposes 22 of the grow Iowa values fund for fiscal year 2010-2011 and 23 requires that unobligated and unencumbered moneys are credited 24 to the general fund of the state, which take effect upon 25 enactment. The bill requires repayments on moneys loaned from 26 the appropriated moneys to be credited to the general fund of 27 the state. 28 -8- LSB 2481XS (2) 84 tw/rj 8/ 8