H.F. 654 DIVISION I 1 LIFE CYCLE COST ANALYSES 2 Section 1. Section 470.1, Code 2015, is amended by adding 3 the following new subsection: 4 NEW SUBSECTION . 01. “Addition” means new construction equal 5 to or greater than twenty thousand square feet of usable floor 6 space that is heated or cooled by a mechanical or electrical 7 system and is joined to a previously existing facility. 8 Sec. 2. Section 470.1, subsections 6, 7, and 10, Code 2015, 9 are amended to read as follows: 10 6. “Facility” means a building having twenty thousand square 11 feet or more of usable floor space that is heated or cooled 12 by a mechanical or electrical system or any building, system, 13 or physical operation which consumes more than forty thousand 14 British thermal units (BTUs) per square foot per year . 15 7. “Initial cost” means the moneys required for the capital 16 construction or renovation of a facility or the construction 17 of an addition . 18 10. “Renovation” means a project where additions or 19 alterations , that are not additions, to an existing facility 20 exceed fifty percent of the value of a facility and will affect 21 an energy system. 22 Sec. 3. Section 470.2, Code 2015, is amended to read as 23 follows: 24 470.2 Policy —— analysis required. 25 The general assembly declares that energy management is of 26 primary importance in the design of publicly owned facilities. 27 Commencing January 1, 1980 On or after the effective date of 28 this division of this Act , a public agency responsible for the 29 construction or renovation of a facility or the construction of 30 an addition shall, in a design begun after that date, include 31 as a design criterion the requirement that a life cycle cost 32 analysis be conducted for the facility. The objectives of the 33 life cycle cost analysis are to optimize energy efficiency at 34 an acceptable life cycle cost. The life cycle cost analysis 35 -1- LSB 1213HZ (2) 86 ad/sc 1/ 10

H.F. 654 shall meet the requirements of section 470.3 . 1 Sec. 4. Section 470.3, subsection 2, Code 2015, is amended 2 to read as follows: 3 2. A public agency or a person preparing a life cycle cost 4 analysis for a public agency shall consider the methods and 5 analytical models provided by the authority and available 6 through the commissioner, which are suited to the purpose 7 for which the project is intended. Within sixty days of 8 final selection of a design architect or engineer, a public 9 agency, which is also a state agency under section 7D.34 , shall 10 notify the commissioner and the authority of the methodology 11 to be used to perform the life cycle cost analysis, on forms 12 provided by the authority use the methodology set forth in the 13 guidelines established, by rule, by the commissioner . 14 Sec. 5. Section 470.4, Code 2015, is amended to read as 15 follows: 16 470.4 Analysis approved. 17 The life cycle cost analysis shall be approved by the public 18 agency before contracts for the construction or renovation 19 of a facility or the construction of an addition are let. A 20 public agency may accept a facility design and shall meet 21 the requirements of this chapter if the design meets the 22 operational requirements of the agency and provides the optimum 23 life cycle cost. The public agency shall retain a copy of the 24 life cycle cost analysis and a statement justifying a design 25 decision both of which shall be available for public inspection 26 at reasonable hours. 27 Sec. 6. Section 470.6, Code 2015, is amended to read as 28 follows: 29 470.6 Restriction on use of public funds. 30 Public funds shall not be used for the construction or 31 renovation of a facility or the construction of an addition 32 unless the design for the work is prepared in accordance with 33 this chapter and the actual construction or renovation of 34 the facility or the construction of the addition meets the 35 -2- LSB 1213HZ (2) 86 ad/sc 2/ 10

H.F. 654 requirements of the design. 1 Sec. 7. Section 470.7, Code 2015, is amended to read as 2 follows: 3 470.7 Life cycle cost analysis —— approval. 4 1. The public agency responsible for the new construction 5 or renovation of a public facility or the construction of an 6 addition to a public facility shall submit a copy of the life 7 cycle cost analysis for review by the commissioner who shall 8 consult with the authority. If the public agency is also a 9 state agency under section 7D.34 , comments by the authority 10 or the commissioner, including any recommendation for changes 11 in the analysis, shall, within thirty days of receipt of the 12 analysis, be forwarded in writing to the public agency. If 13 either the authority or the commissioner disagrees with any 14 aspects of the life cycle cost analysis, the public agency 15 affected shall timely respond in writing to the commissioner 16 and the authority. The response shall indicate whether the 17 agency intends to implement the recommendations and, if the 18 agency does not intend to implement them, the public agency 19 shall present its reasons. The reasons may include but are 20 not limited to a description of the purpose of the facility or 21 renovation, preservation of historical architectural features, 22 architectural and site considerations, and health and safety 23 concerns. 24 2. Within thirty days of receipt of the response of the 25 public agency affected, the authority, the commissioner, or 26 both, shall notify in writing the public agency affected of 27 the authority’s, the commissioner’s, or both’s agreement 28 or disagreement with the response. In the event of a 29 disagreement, the authority, the commissioner, or both, shall 30 at the same time transmit the notification of disagreement 31 with response and related papers to the executive council 32 for resolution pursuant to section 7D.34 . The life cycle 33 cost analysis process, including submittal and approval, and 34 implementation exemption requests pursuant to section 470.8 , 35 -3- LSB 1213HZ (2) 86 ad/sc 3/ 10

H.F. 654 shall be completed prior to the letting of contracts for the 1 construction or renovation of a facility or the construction 2 of an addition . 3 Sec. 8. Section 470.8, Code 2015, is amended to read as 4 follows: 5 470.8 Life cycle cost analysis —— implementation and 6 exemptions. 7 1. The public agency responsible for the new construction 8 or renovation of a public facility or the construction of an 9 addition shall implement the recommendations of the life cycle 10 cost analysis. 11 2. The commissioner shall adopt rules for the 12 implementation and administration of the life cycle cost 13 analysis. The commissioner, in consultation with the director, 14 shall, by rule, develop criteria to exempt facilities from 15 the implementation requirements of this section . Using the 16 criteria, the commissioner, in cooperation with the director, 17 shall exempt facilities on a case by case basis. Factors to 18 be considered when developing the exemption criteria shall 19 include, but not be limited to, a description of the purpose 20 of the facility or renovation, the preservation of historical 21 architectural features, site considerations, and health and 22 safety concerns. The commissioner and the director shall grant 23 or deny a request for exemption from the requirements of this 24 section within thirty days of receipt of the request. 25 DIVISION II 26 SCIENCE, TECHNOLOGY, ENGINEERING, AND MATHEMATICS INTERNSHIP 27 Sec. 9. Section 15.411, subsection 3, Code 2015, is amended 28 to read as follows: 29 3. a. The authority shall establish and administer an 30 internship program with two components for Iowa students. 31 To the extent permitted by this subsection, the authority 32 shall administer the two components in as similar a manner as 33 possible. For purposes of this subsection , “Iowa student” means 34 a student of an Iowa community college, private college, or 35 -4- LSB 1213HZ (2) 86 ad/sc 4/ 10

H.F. 654 institution of higher learning under the control of the state 1 board of regents, or a student who graduated from high school 2 in Iowa but now attends an institution of higher learning 3 outside the state of Iowa. 4 b. The purpose of the first component of the program is 5 to link Iowa students to small and medium sized Iowa firms 6 through internship opportunities. An Iowa employer may receive 7 financial assistance in an amount of one dollar for every 8 two dollars paid by the employer to an intern on a matching 9 basis for a portion of the wages paid to an intern . If 10 providing financial assistance, the authority shall provide 11 the assistance on a reimbursement basis such that for every 12 two dollars of wages earned by the student, one dollar paid by 13 the employer is matched by one dollar from the authority. The 14 amount of financial assistance shall not exceed three thousand 15 one hundred dollars for any single internship, or nine thousand 16 three hundred dollars for any single employer. In order to be 17 eligible to receive financial assistance under this paragraph, 18 the employer must have five hundred or fewer employees and must 19 be an innovative business. The authority shall encourage youth 20 who reside in economically distressed areas, youth adjudicated 21 to have committed a delinquent act, and youth transitioning out 22 of foster care to participate in the first component of the 23 internship program. 24 c. (1) The purpose of the second component of the program 25 is to assist in placing Iowa students studying in the fields 26 of science, technology, engineering, and mathematics into 27 internships that lead to permanent positions with Iowa 28 employers. The authority shall collaborate with eligible 29 employers, including but not limited to innovative businesses, 30 to ensure that the interns hired are studying in such fields. 31 An Iowa employer may receive financial assistance in an amount 32 of one dollar for every dollar paid by the employer to an 33 intern on a matching basis for a portion of the wages paid to 34 an intern . If providing financial assistance, the authority 35 -5- LSB 1213HZ (2) 86 ad/sc 5/ 10

H.F. 654 shall provide the assistance on a reimbursement basis such 1 that for every two dollars of wages earned by the student, 2 one dollar paid by the employer is matched by one dollar from 3 the authority. The amount of financial assistance shall not 4 exceed five thousand dollars per internship. The authority may 5 adopt rules to administer this component. In adopting rules to 6 administer this component, the authority shall adopt rules as 7 similar as possible to those adopted pursuant to paragraph “b” . 8 (2) The requirement to administer this component of the 9 internship program is contingent upon the provision of funding 10 for such purposes by the general assembly. 11 Sec. 10. EMERGENCY RULES. The economic development 12 authority may adopt emergency rules under section 17A.4, 13 subsection 3, and section 17A.5, subsection 2, paragraph “b”, 14 to implement the provisions of this division of this Act and 15 the rules shall be effective immediately upon filing unless 16 a later date is specified in the rules. Any rules adopted 17 in accordance with this section shall also be published as a 18 notice of intended action as provided in section 17A.4. 19 Sec. 11. EFFECTIVE UPON ENACTMENT. This division of this 20 Act, being deemed of immediate importance, takes effect upon 21 enactment. 22 Sec. 12. RETROACTIVE APPLICABILITY. This division of this 23 Act applies retroactively to July 1, 2014. 24 DIVISION III 25 ENTERPRISE ZONES 26 Sec. 13. 2014 Iowa Acts, chapter 1130, section 43, 27 subsection 1, is amended to read as follows: 28 1. On or after the effective date of this division of this 29 Act, a city or county shall not create an enterprise zone under 30 chapter 15E, division XVIII, or enter into a new agreement or 31 amend an existing agreement under chapter 15E, division XVIII. 32 A city or county and the economic development authority, with 33 the approval of the economic development authority board, may 34 amend an agreement for compliance reasons if the amendment 35 -6- LSB 1213HZ (2) 86 ad/sc 6/ 10

H.F. 654 does not increase the amount of incentives awarded under the 1 agreement. 2 DIVISION IV 3 HOUSING ENTERPRISE TAX CREDIT 4 Sec. 14. 2014 Iowa Acts, chapter 1130, is amended by adding 5 the following new section: 6 NEW SECTION . SEC. 41A. Notwithstanding the section of 7 this Act repealing section 15E.193B, the economic development 8 authority may enter into an agreement and issue housing 9 enterprise tax credits to a housing business if all the 10 following conditions are met: 11 1. The city or county in which the enterprise zone is 12 located mailed, or caused to be mailed, the necessary program 13 application forms on or after June 1, 2014, and prior to July 14 1, 2014, but the applications were not received by the economic 15 development authority. The economic development authority may 16 accept an affidavit by a city to confirm timely mailing of the 17 application forms, notwithstanding section 622.105. 18 2. The application forms submitted pursuant to subsection 1 19 were approved by all necessary governing bodies and commissions 20 of the city or county as required by chapter 15E, division 21 XVIII, Code 2014. 22 3. The economic development authority determines the 23 housing business would otherwise be eligible under section 24 15E.193B, Code 2014. 25 4. The city or county and the eligible housing business meet 26 all other requirements of the housing enterprise tax credit 27 program under chapter 15E, division XVIII, Code 2014, and the 28 agreement to be entered into pursuant to this section. 29 Sec. 15. 2014 Iowa Acts, chapter 1130, section 43, 30 subsection 1, is amended to read as follows: 31 1. On or after the effective date of this division of this 32 Act, a city or county shall not create an enterprise zone under 33 chapter 15E, division XVIII, or enter into a new agreement or 34 amend an existing agreement under chapter 15E, division XVIII , 35 -7- LSB 1213HZ (2) 86 ad/sc 7/ 10

H.F. 654 unless otherwise authorized in this Act . 1 Sec. 16. EFFECTIVE UPON ENACTMENT. This division of this 2 Act, being deemed of immediate importance, takes effect upon 3 enactment. 4 Sec. 17. RETROACTIVE APPLICABILITY. This division of this 5 Act applies retroactively to July 1, 2014. 6 EXPLANATION 7 The inclusion of this explanation does not constitute agreement with 8 the explanation’s substance by the members of the general assembly. 9 This bill relates to economic development by modifying life 10 cycle cost analysis provisions relating to public facilities, 11 specifying the state matching funds available for payment 12 of intern wages under the science, technology, engineering, 13 and mathematics internship program, and modifying provisions 14 concerning enterprise zones. 15 Division I of the bill modifies provisions relating to the 16 life cycle analysis required of certain public facilities. 17 The division adds a definition of “addition” and modifies the 18 definitions of “facility” and “renovation” and requires a 19 public agency responsible for the construction or renovation 20 of a facility or the construction of an addition to a facility 21 to include the performance of a life cycle cost analysis as 22 a design criterion on or after the effective date of the 23 division. The division requires a public agency or person 24 preparing a life cycle cost analysis for a public agency to 25 use methodology established, by rule, by the state building 26 code commissioner, rather than methods and analytical 27 models provided by the economic development authority. The 28 division requires the commissioner to also adopt rules for the 29 implementation and adoption of the life cycle cost analysis. 30 Division II of the bill amends language relating to wages 31 paid to an intern under the science, technology, engineering, 32 and mathematics internship program to specify that an Iowa 33 employer may receive financial assistance from the state on a 34 matching basis. The division provides that if the authority 35 -8- LSB 1213HZ (2) 86 ad/sc 8/ 10

H.F. 654 offers financial assistance for a student at a small or 1 medium sized Iowa firm that is an innovative business or for 2 a science, technology, engineering, or mathematics student 3 working with an Iowa employer, for every $2 earned by the 4 student in wages, the employer’s payment of $1 shall be 5 matched by the authority with $1 on a reimbursement basis. 6 The division requires the authority to administer the two 7 components of the internship program in as similar a manner 8 as possible. The division authorizes the authority to adopt 9 emergency rules for this division of the bill. The division 10 takes effect upon enactment and applies retroactively to 11 contracts for financial assistance entered into on or after 12 July 1, 2014. 13 Divisions III and IV of the bill relate to enterprise 14 zones. Division III allows a city or county and the economic 15 development authority for compliance reasons to amend 16 agreements made under the enterprise zone program as long as 17 the amendments do not increase the amount of incentives awarded 18 and the economic development authority board approves. 19 Division IV allows the authority to enter into an agreement 20 for a housing enterprise tax credit for certain housing 21 businesses that had mailed applications to the authority prior 22 to the July 1, 2014, repeal of the housing enterprise tax 23 credit in Code section 15E.193B. 24 The division states that the authority may enter into 25 an agreement and issue housing enterprise tax credits to a 26 housing business if the city or county mailed the application 27 forms on or after June 1, 2014, and prior to July 1, 2014, 28 but the applications were not received by the authority, the 29 application forms submitted were approved by the necessary 30 governing bodies and commissions, the authority determines 31 the housing business would otherwise be eligible under the 32 Code section that was repealed, and the city or county and the 33 eligible housing business meet all other requirements of the 34 housing enterprise tax credit program and of the agreement 35 -9- LSB 1213HZ (2) 86 ad/sc 9/ 10