Senate Study Bill 3198 - Introduced SENATE/HOUSE FILE _____ BY (PROPOSED GOVERNOR BUDGET BILL) A BILL FOR An Act relating to and making appropriations to the department 1 of cultural affairs, the economic development authority, 2 the Iowa finance authority, the public employment relations 3 board, and the department of workforce development, and 4 providing for other properly related matters. 5 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 6 TLSB 5013XG (6) 85 ad/tm

S.F. _____ H.F. _____ Section 1. 2013 Iowa Acts, chapter 137, section 16, 1 subsection 1, is amended to read as follows: 2 SEC. 16. DEPARTMENT OF CULTURAL AFFAIRS. 3 1. There is appropriated from the general fund of the state 4 to the department of cultural affairs for the fiscal year 5 beginning July 1, 2014, and ending June 30, 2015, the following 6 amounts, or so much thereof as is necessary, to be used for the 7 purposes designated: 8 a. ADMINISTRATION 9 For salaries, support, maintenance, and miscellaneous 10 purposes , and for not more than the following full-time 11 equivalent positions for the department : 12 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 85,907 13 176,882 14 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . FTEs 74.50 15 The department of cultural affairs shall coordinate 16 activities with the tourism office of the economic development 17 authority to promote attendance at the state historical 18 building and at this state’s historic sites. 19 Full-time equivalent positions authorized under this 20 paragraph shall be funded, in full or in part, using moneys 21 appropriated under this paragraph and paragraphs “c” through 22 “g”. 23 b. COMMUNITY CULTURAL GRANTS 24 For planning and programming for the community cultural 25 grants program established under section 303.3 : 26 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 86,045 27 172,090 28 c. HISTORICAL DIVISION 29 For the support of the historical division: 30 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,583,851 31 3,167,701 32 d. HISTORIC SITES 33 For the administration and support of historic sites: 34 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 213,199 35 -1- LSB 5013XG (6) 85 ad/tm 1/ 11

S.F. _____ H.F. _____ 426,398 1 e. ARTS DIVISION 2 For the support of the arts division: 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 616,882 4 1,233,764 5 Of the moneys appropriated in this paragraph, the department 6 shall allocate $300,000 for purposes of the film office. 7 f. IOWA GREAT PLACES 8 For the Iowa great places program established under section 9 303.3C : 10 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 75,000 11 150,000 12 g. ARCHIVE IOWA GOVERNORS’ RECORDS 13 For archiving the records of Iowa governors: 14 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 32,967 15 65,933 16 h. RECORDS CENTER RENT 17 For payment of rent for the state records center: 18 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 113,622 19 227,243 20 i. BATTLE FLAGS 21 For continuation of the project recommended by the Iowa 22 battle flag advisory committee to stabilize the condition of 23 the battle flag collection: 24 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 47,000 25 94,000 26 Sec. 2. 2013 Iowa Acts, chapter 137, section 18, is amended 27 to read as follows: 28 SEC. 18. ECONOMIC DEVELOPMENT AUTHORITY. 29 1. APPROPRIATION 30 a. There is appropriated from the general fund of the state 31 to the economic development authority for the fiscal year 32 beginning July 1, 2014, and ending June 30, 2015, the following 33 amount, or so much thereof as is necessary, to be used for the 34 purposes designated in this subsection , and for not more than 35 -2- LSB 5013XG (6) 85 ad/tm 2/ 11

S.F. _____ H.F. _____ the following full-time equivalent positions : 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 7,734,483 2 15,516,372 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . FTEs 149.00 4 b. (1) For salaries, support, miscellaneous purposes, 5 programs, marketing, and the maintenance of an administration 6 division, a business development division, a community 7 development division, a small business development division, 8 and other divisions the authority may organize. 9 (2) The full-time equivalent positions authorized under 10 this section shall be funded, in whole or in part, by the 11 moneys appropriated under this subsection or by other moneys 12 received by the authority, including certain federal moneys. 13 (3) For business development operations and programs, 14 international trade, export assistance, workforce recruitment, 15 and the partner state program. 16 (4) For transfer to the strategic investment fund created 17 in section 15.313 . 18 (5) For community economic development programs, tourism 19 operations, community assistance, plans for Iowa green corps 20 and summer youth programs, the mainstreet and rural mainstreet 21 programs, the school-to-career program, the community 22 development block grant, and housing and shelter-related 23 programs. 24 (6) For achieving the goals and accountability, and 25 fulfilling the requirements and duties required under this Act. 26 c. Notwithstanding section 8.33 , moneys appropriated in 27 this subsection that remain unencumbered or unobligated at the 28 close of the fiscal year shall not revert but shall remain 29 available for expenditure for the purposes designated in this 30 subsection until the close of the succeeding fiscal year. 31 2. FINANCIAL ASSISTANCE RESTRICTIONS 32 a. A business creating jobs through moneys appropriated in 33 subsection 1 shall be subject to contract provisions requiring 34 new and retained jobs to be filled by individuals who are 35 -3- LSB 5013XG (6) 85 ad/tm 3/ 11

S.F. _____ H.F. _____ citizens of the United States who reside within the United 1 States or any person authorized to work in the United States 2 pursuant to federal law, including legal resident aliens in the 3 United States. 4 b. Any vendor who receives moneys appropriated in 5 subsection 1 shall adhere to such contract provisions and 6 provide periodic assurances as the state shall require that the 7 jobs are filled solely by citizens of the United States who 8 reside within the United States or any person authorized to 9 work in the United States pursuant to federal law, including 10 legal resident aliens in the United States. 11 c. A business that receives financial assistance from 12 the authority from moneys appropriated in subsection 1 shall 13 only employ individuals legally authorized to work in this 14 state. In addition to all other applicable penalties provided 15 by current law, all or a portion of the assistance received 16 by a business which is found to knowingly employ individuals 17 not legally authorized to work in this state is subject to 18 recapture by the authority. 19 3. USES OF APPROPRIATIONS 20 a. From the moneys appropriated in subsection 1, the 21 authority may provide financial assistance in the form of a 22 grant to a community economic development entity for conducting 23 a local workforce recruitment effort designed to recruit former 24 citizens of the state and former students at colleges and 25 universities in the state to meet the needs of local employers. 26 b. From the moneys appropriated in subsection 1, the 27 authority may provide financial assistance to early stage 28 industry companies being established by women entrepreneurs. 29 c. From the moneys appropriated in subsection 1, the 30 authority may provide financial assistance in the form of 31 grants, loans, or forgivable loans for advanced research and 32 commercialization projects involving value-added agriculture, 33 advanced technology, or biotechnology. 34 d. The authority shall not use any moneys appropriated in 35 -4- LSB 5013XG (6) 85 ad/tm 4/ 11

S.F. _____ H.F. _____ subsection 1 for purposes of providing financial assistance for 1 the Iowa green streets pilot project or for any other program 2 or project that involves the installation of geothermal systems 3 for melting snow and ice from streets or sidewalks. 4 4. WORLD FOOD PRIZE 5 There is appropriated from the general fund of the state 6 to the economic development authority for the fiscal year 7 beginning July 1, 2014, and ending June 30, 2015, the following 8 amount for the world food prize and in lieu of the standing 9 appropriation in section 15.368, subsection 1 : 10 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 400,000 11 5. IOWA COMMISSION ON VOLUNTEER SERVICE 12 There is appropriated from the general fund of the state 13 to the economic development authority for the fiscal year 14 beginning July 1, 2014, and ending June 30, 2015, the following 15 amount for allocation to the Iowa commission on volunteer 16 service for purposes of the Iowa state commission grant 17 program, and the Iowa’s promise and Iowa mentoring partnership 18 programs , and for not more than the following full-time 19 equivalent positions : 20 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 89,067 21 178,133 22 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . FTEs 7.00 23 Of the moneys appropriated in this subsection, the authority 24 shall allocate $37,500 $75,000 for purposes of the Iowa state 25 commission grant program and $51,567 $103,133 for purposes of 26 the Iowa’s promise and Iowa mentoring partnership programs. 27 Notwithstanding section 8.33 , moneys appropriated in this 28 subsection that remain unencumbered or unobligated at the close 29 of the fiscal year shall not revert but shall remain available 30 for expenditure for the purposes designated until the close of 31 the succeeding fiscal year. 32 6. COUNCILS OF GOVERNMENTS —— ASSISTANCE 33 There is appropriated from the general fund of the state 34 to the economic development authority for the fiscal year 35 -5- LSB 5013XG (6) 85 ad/tm 5/ 11

S.F. _____ H.F. _____ beginning July 1, 2014, and ending June 30, 2015, the following 1 amount to be used for the purposes of providing financial 2 assistance to Iowa’s councils of governments: 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 87,500 4 175,000 5 7. MIDWEST UNITED STATES-JAPAN CONFERENCE 6 There is appropriated from the general fund of the state 7 to the economic development authority for the fiscal year 8 beginning July 1, 2014, and ending June 30, 2015, the following 9 amount to be used for the purposes of the midwest United 10 States-Japan conference: 11 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 100,000 12 Sec. 3. 2013 Iowa Acts, chapter 137, section 21, is amended 13 to read as follows: 14 SEC. 21. WORKFORCE DEVELOPMENT FUND. There is appropriated 15 from the workforce development fund account created in section 16 15.342A to the workforce development fund created in section 17 15.343 for the fiscal year beginning July 1, 2014, and ending 18 June 30, 2015, the following amount, for purposes of the 19 workforce development fund: 20 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2,000,000 21 4,000,000 22 Sec. 4. 2013 Iowa Acts, chapter 137, section 22, is amended 23 to read as follows: 24 SEC. 22. IOWA FINANCE AUTHORITY. 25 1. There is appropriated from the general fund of the state 26 to the Iowa finance authority for the fiscal year beginning 27 July 1, 2014, and ending June 30, 2015, the following amount, 28 or so much thereof as is necessary, to be used to provide 29 reimbursement for rent expenses to eligible persons under the 30 rent subsidy program: 31 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 329,000 32 658,000 33 2. Participation in the rent subsidy program shall be 34 limited to only those persons who meet the requirements for the 35 -6- LSB 5013XG (6) 85 ad/tm 6/ 11

S.F. _____ H.F. _____ nursing facility level of care for home and community-based 1 services waiver services as in effect on July 1, 2014, and 2 to those individuals who are eligible for the federal money 3 follows the person grant program under the medical assistance 4 program. Of the moneys appropriated in this section, not more 5 than $35,000 may be used for administrative costs. 6 Sec. 5. 2013 Iowa Acts, chapter 137, section 24, is amended 7 to read as follows: 8 SEC. 24. PUBLIC EMPLOYMENT RELATIONS BOARD. 9 1. There is appropriated from the general fund of the state 10 to the public employment relations board for the fiscal year 11 beginning July 1, 2014, and ending June 30, 2015, the following 12 amount, or so much thereof as is necessary, for the purposes 13 designated: 14 For salaries, support, maintenance, and miscellaneous 15 purposes , and for not more than the following full-time 16 equivalent positions : 17 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 670,963 18 1,342,452 19 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . FTEs 10.00 20 2. Of the moneys appropriated in this section, the board 21 shall allocate $15,000 for maintaining a website that allows 22 searchable access to a database of collective bargaining 23 information. 24 Sec. 6. 2013 Iowa Acts, chapter 137, section 25, is amended 25 to read as follows: 26 SEC. 25. DEPARTMENT OF WORKFORCE DEVELOPMENT. There 27 is appropriated from the general fund of the state to the 28 department of workforce development for the fiscal year 29 beginning July 1, 2014, and ending June 30, 2015, the following 30 amounts, or so much thereof as is necessary, for the purposes 31 designated: 32 1. DIVISION OF LABOR SERVICES 33 a. For the division of labor services, including salaries, 34 support, maintenance, and miscellaneous purposes , and for not 35 -7- LSB 5013XG (6) 85 ad/tm 7/ 11

S.F. _____ H.F. _____ more than the following full-time equivalent positions : 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,774,360 2 3,823,539 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . FTEs 65.00 4 b. From the contractor registration fees, the division of 5 labor services shall reimburse the department of inspections 6 and appeals for all costs associated with hearings under 7 chapter 91C , relating to contractor registration. 8 c. Of the moneys appropriated under this subsection, the 9 department shall allocate $53,280 for the purpose of employing 10 an additional investigator to investigate wage enforcement. 11 2. DIVISION OF WORKERS’ COMPENSATION 12 a. For the division of workers’ compensation, including 13 salaries, support, maintenance, and miscellaneous purposes , and 14 for not more than the following full-time equivalent positions : 15 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,629,522 16 3,259,044 17 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . FTEs 30.00 18 b. The division of workers’ compensation shall charge a 19 $100 filing fee for workers’ compensation cases. The filing 20 fee shall be paid by the petitioner of a claim. However, the 21 fee can be taxed as a cost and paid by the losing party, except 22 in cases where it would impose an undue hardship or be unjust 23 under the circumstances. The moneys generated by the filing 24 fee allowed under this subsection are appropriated to the 25 department of workforce development to be used for purposes of 26 administering the division of workers’ compensation. 27 3. WORKFORCE DEVELOPMENT OPERATIONS 28 a. For the operation of field offices , and the workforce 29 development board , and for not more than the following 30 full-time equivalent positions : 31 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 4,589,707 32 9,179,413 33 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . FTEs 130.00 34 b. Of the moneys appropriated in paragraph “a” of this 35 -8- LSB 5013XG (6) 85 ad/tm 8/ 11

S.F. _____ H.F. _____ subsection, the department shall allocate $150,000 to the state 1 library for the purpose of licensing an online resource which 2 prepares persons to succeed in the workplace through programs 3 which improve job skills and vocational test-taking abilities. 4 c. Of the moneys appropriated in paragraph “a” of this 5 subsection, the department shall allocate at least $1,130,602 6 for the operation of the three satellite field offices 7 projected by the department to serve the most people from the 8 offices located in Decorah, Fort Madison, Iowa City, or Webster 9 City. 10 4. OFFENDER REENTRY PROGRAM 11 a. For the development and administration of an offender 12 reentry program to provide offenders with employment skills , 13 and for not more than the following full-time equivalent 14 positions : 15 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 142,232 16 284,464 17 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . FTEs 4.00 18 b. The department of workforce development shall partner 19 with the department of corrections to provide staff within the 20 correctional facilities to improve offenders’ abilities to find 21 and retain productive employment. 22 5. NONREVERSION 23 Notwithstanding section 8.33 , moneys appropriated in this 24 section that remain unencumbered or unobligated at the close of 25 the fiscal year shall not revert but shall remain available for 26 expenditure for the purposes designated until the close of the 27 succeeding fiscal year. 28 Sec. 7. 2013 Iowa Acts, chapter 137, section 26, is amended 29 to read as follows: 30 SEC. 26. GENERAL FUND —— EMPLOYEE MISCLASSIFICATION 31 PROGRAM. There is appropriated from the general fund of the 32 state to the department of workforce development for the fiscal 33 year beginning July 1, 2014, and ending June 30, 2015, the 34 following amount, or so much thereof as is necessary, to be 35 -9- LSB 5013XG (6) 85 ad/tm 9/ 11

S.F. _____ H.F. _____ used for the purposes designated: 1 For enhancing efforts to investigate employers that 2 misclassify workers and for not more than the following 3 full-time equivalent positions : 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 225,729 5 451,458 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . FTEs 8.10 7 Sec. 8. 2013 Iowa Acts, chapter 137, section 27, is amended 8 to read as follows: 9 SEC. 27. SPECIAL EMPLOYMENT SECURITY CONTINGENCY FUND. 10 1. There is appropriated from the special employment 11 security contingency fund to the department of workforce 12 development for the fiscal year beginning July 1, 2014, and 13 ending June 30, 2015, the following amount, or so much thereof 14 as is necessary, to be used for field offices: 15 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 883,042 16 1,627,084 17 2. Any remaining additional penalty and interest revenue 18 collected by the department of workforce development is 19 appropriated to the department for the fiscal year beginning 20 July 1, 2014, and ending June 30, 2015, to accomplish the 21 mission of the department. 22 Sec. 9. 2013 Iowa Acts, chapter 137, section 28, is amended 23 to read as follows: 24 SEC. 28. UNEMPLOYMENT COMPENSATION RESERVE FUND —— 25 FIELD OFFICES. Notwithstanding section 96.9, subsection 8 , 26 paragraph “e”, there is appropriated from interest earned on 27 the unemployment compensation reserve fund to the department 28 of workforce development for the fiscal year beginning July 1, 29 2014, and ending June 30, 2015, the following amount or so much 30 thereof as is necessary, for the purposes designated: 31 For the operation of field offices: 32 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 247,000 33 633,000 34 Sec. 10. 2013 Iowa Acts, chapter 137, section 19, is 35 -10- LSB 5013XG (6) 85 ad/tm 10/ 11

S.F. _____ H.F. _____ repealed. 1 EXPLANATION 2 The inclusion of this explanation does not constitute agreement with 3 the explanation’s substance by the members of the general assembly. 4 This bill relates to and makes appropriations and transfers 5 from the general fund of the state and other funds to the 6 department of cultural affairs, the economic development 7 authority, the Iowa finance authority, the public employment 8 relations board, and the department of workforce development 9 for the 2014-2015 fiscal year. 10 The bill appropriates moneys from the workforce development 11 fund account to the workforce development fund. 12 The bill appropriates moneys to the department of workforce 13 development for an employee misclassification program. 14 The bill appropriates moneys from the special employment 15 security contingency fund to the department of workforce 16 development for field offices. 17 The bill appropriates interest earned on the unemployment 18 compensation reserve fund to the department of workforce 19 development for the operation of field offices. 20 -11- LSB 5013XG (6) 85 ad/tm 11/ 11