House Study Bill 122 - Introduced SENATE/HOUSE FILE _____ BY (PROPOSED GOVERNOR BILL) A BILL FOR An Act relating to cultural affairs and economic development 1 by establishing an Iowa next program and fund to assist 2 communities in community enhancement projects, eliminating 3 the vision Iowa program, the community attraction and 4 tourism program and fund, the river enhancement community 5 attraction and tourism program and fund, the great places 6 program and fund, and the Iowa cultural trust, trust fund, 7 and grant account, making an appropriation, and including 8 transition provisions. 9 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 10 TLSB 1412XL (16) 86 ad/rj

S.F. _____ H.F. _____ Section 1. NEW SECTION . 304.1 Definitions. 1 As used in this chapter, unless the context otherwise 2 requires: 3 1. “Commission” means the Iowa next commission created 4 pursuant to section 304.2. 5 2. “Department” means the department of cultural affairs 6 created in section 303.1. 7 3. “Fund” means the Iowa next fund created in section 304.6. 8 4. “Program” means the Iowa next program established in 9 section 304.5. 10 Sec. 2. NEW SECTION . 304.2 Iowa next commission. 11 1. The Iowa next commission is established consisting 12 of eleven members and is located for administrative purposes 13 within the department. The director of the department shall 14 provide office space, staff assistance, and necessary supplies 15 and equipment for the commission. The director shall budget 16 funds to pay the compensation and expenses of the commission. 17 In performing its functions the commission is performing 18 a public function on behalf of the state and is a public 19 instrumentality of the state. 20 2. The membership of the commission is as follows: 21 a. The director of the economic development authority or the 22 director’s designee. 23 b. The director of the department of transportation or the 24 director’s designee. 25 c. The director of the department of natural resources or 26 the director’s designee. 27 d. The director of the department of cultural affairs or the 28 director’s designee. 29 e. Seven appointed public members. 30 3. The governor shall appoint the seven public members, 31 subject to sections 69.16 and 69.16A, and subject to 32 confirmation by the senate. All public members of the 33 commission shall have demonstrable experience or expertise in 34 the field of culture, recreation, or economic or community 35 -1- LSB 1412XL (16) 86 ad/rj 1/ 13

S.F. _____ H.F. _____ development. 1 4. All members appointed pursuant to subsection 3 shall be 2 residents of different counties. 3 5. The governor shall designate the chairperson and vice 4 chairperson of the commission from the members appointed 5 pursuant to subsection 3. In the case of absence or disability 6 of the chairperson and vice chairperson, the members of the 7 commission shall elect a temporary chairperson by a majority 8 vote of those members who are present and voting. 9 6. The members appointed pursuant to subsection 3 shall be 10 appointed to three-year staggered terms and the terms shall 11 commence and end as provided by section 69.19. If a vacancy 12 occurs, a successor shall be appointed to serve the unexpired 13 terms. A successor shall be appointed in the same manner and 14 subject to the same qualifications as the original appointment 15 to serve the unexpired terms. 16 7. A majority of the total membership of the commission 17 constitutes a quorum. 18 8. The members of the commission are entitled to receive 19 reimbursement for actual expenses incurred while engaged in the 20 performance of official duties. A member of the commission may 21 also be eligible to receive compensation as provided in section 22 7E.6. 23 Sec. 3. NEW SECTION . 304.3 Commission duties. 24 The commission shall do all of the following: 25 1. Organize. 26 2. Establish the Iowa next program. 27 3. Oversee and approve the administration of the Iowa next 28 program by the department. 29 4. Coordinate efforts to increase quality of life for 30 residents of Iowa and to attract persons from outside the state 31 to Iowa. 32 Sec. 4. NEW SECTION . 304.4 Department duties. 33 1. The department, subject to approval by the commission, 34 shall adopt administrative rules pursuant to chapter 17A 35 -2- LSB 1412XL (16) 86 ad/rj 2/ 13

S.F. _____ H.F. _____ necessary to administer the Iowa next program. The department 1 shall provide the commission with assistance in implementing 2 administrative functions, marketing the program, providing 3 technical assistance and application assistance to applicants 4 under the program, and negotiating contracts. The department 5 may conduct negotiations on behalf of the commission with 6 applicants regarding terms and conditions applicable to awards 7 under the program. 8 2. The department shall develop and make available to the 9 public a searchable database on an internet site of funding 10 opportunities and state programs to assist with local efforts 11 to enhance the community. 12 3. The department shall employ an Iowa next liaison 13 to provide information on state programs and to assist in 14 collaborative initiatives related to quality of life programs. 15 Sec. 5. NEW SECTION . 304.5 Iowa next program. 16 1. The commission shall establish and the department, 17 subject to direction and approval of the commission, shall 18 administer an Iowa next program to invest in prioritized 19 quality of life projects by coordinating and streamlining 20 public access to state programs that provide resources to 21 assist communities in the planning, development, creation, 22 improvement, and promotion of cultural and recreational 23 amenities, opportunities, and programs that serve residents and 24 visitors and enhance the quality of life in Iowa. Financial 25 assistance provided pursuant to the program may be in the form 26 of grants. 27 2. A city, county, state agency, or public organization 28 in the state may submit an application to the department for 29 financial assistance for a project under the program. For 30 purposes of this subsection, “public organization” means 31 a nonprofit economic development organization or other 32 nonprofit organization that sponsors community enhancements and 33 activities. 34 3. The department, with approval of the commission, shall 35 -3- LSB 1412XL (16) 86 ad/rj 3/ 13

S.F. _____ H.F. _____ consider the following when reviewing an application submitted 1 pursuant to the program: 2 a. The extent to which the project creates a unique sense 3 of place by incorporating, respecting, and increasing resident 4 and visitor engagement with local cultural, natural, or 5 recreational amenities and opportunities. 6 b. The extent to which the project represents or encourages 7 a collaborative or comprehensive local or regional strategy to 8 promote livability and revitalization of existing urban and 9 rural communities. 10 c. The long-term community and economic impact of the 11 project, including feasibility, plans for sustainability, and 12 job creation or retention. 13 d. The total proposed budget for the project, including 14 the amount or percentage of local and private matching moneys 15 leveraged by the project. 16 e. The need of the community and demonstrated level of 17 priority for the project and financial assistance for the 18 project. 19 f. Any other information required by the department. 20 4. The department shall make recommendations to the 21 commission regarding the applications. The commission shall 22 approve, defer, or deny the applications. If an application 23 is approved, the department, on behalf of the commission, may 24 enter into an agreement with the applicant to provide financial 25 assistance. 26 Sec. 6. NEW SECTION . 304.6 Iowa next fund —— appropriation. 27 1. An Iowa next fund is created as a separate fund in the 28 state treasury under the control of the department, consisting 29 of any moneys appropriated by the general assembly, any moneys 30 transferred from other funds as provided by law, and any other 31 moneys available to and obtained or accepted by the department 32 for placement in the fund. 33 2. Moneys in the fund are appropriated to the department for 34 purposes of the Iowa next program established in section 304.5. 35 -4- LSB 1412XL (16) 86 ad/rj 4/ 13

S.F. _____ H.F. _____ 3. Moneys in the fund are not subject to section 8.33. 1 Notwithstanding section 12C.7, subsection 2, interest or 2 earnings on moneys in the fund shall be credited to the fund. 3 Sec. 7. Section 12.71, subsection 1, Code 2015, is amended 4 to read as follows: 5 1. The treasurer of state may issue bonds upon the request 6 of the vision Iowa board created in section 15F.102 , Code 2015, 7 and do all things necessary with respect to the purposes of the 8 vision Iowa fund. The treasurer of state shall have all of 9 the powers which are necessary to issue and secure bonds and 10 carry out the purposes of the fund. The treasurer of state may 11 issue bonds in principal amounts which, in the opinion of the 12 board, are necessary to provide sufficient funds for the vision 13 Iowa fund created in section 12.72 , the payment of interest 14 on the bonds, the establishment of reserves to secure the 15 bonds, the costs of issuance of the bonds, other expenditures 16 of the treasurer of state incident to and necessary or 17 convenient to carry out the bond issue for the fund, and all 18 other expenditures of the board necessary or convenient to 19 administer the fund; provided, however, excluding the issuance 20 of refunding bonds, bonds issued pursuant to this section shall 21 not be issued in an aggregate principal amount which exceeds 22 three hundred million dollars. The bonds are investment 23 securities and negotiable instruments within the meaning of and 24 for purposes of the uniform commercial code, chapter 554 . 25 Sec. 8. Section 12.72, subsection 1, Code 2015, is amended 26 to read as follows: 27 1. A vision Iowa fund is created and established as a 28 separate and distinct fund in the state treasury. The moneys 29 in the fund are appropriated to the vision Iowa board for 30 purposes of the vision Iowa program established in section 31 15F.302 , Code 2015 . Moneys in the fund shall not be subject to 32 appropriation for any other purpose by the general assembly, 33 but shall be used only for the purposes of the vision Iowa 34 fund. The treasurer of state shall act as custodian of the 35 -5- LSB 1412XL (16) 86 ad/rj 5/ 13

S.F. _____ H.F. _____ fund and disburse moneys contained in the fund as directed 1 by the vision Iowa board, including automatic disbursements 2 of funds received pursuant to the terms of bond indentures 3 and documents and security provisions to trustees. The fund 4 shall be administered by the vision Iowa board which shall 5 make expenditures from the fund consistent with the purposes 6 of the vision Iowa program without further appropriation. An 7 applicant under the vision Iowa program shall not receive more 8 than seventy-five million dollars in financial assistance from 9 the fund. 10 Sec. 9. Section 12.75, subsection 2, Code 2015, is amended 11 to read as follows: 12 2. For purposes of this section , “applicant” means a city or 13 county or public organization applying for financial assistance 14 under the vision Iowa program established in section 15F.302 , 15 Code 2015 . 16 Sec. 10. Section 15.108, subsection 5, paragraph c, Code 17 2015, is amended to read as follows: 18 c. Coordinate and develop with the department of 19 transportation, the department of natural resources, the 20 department of cultural affairs, the vision Iowa board next 21 commission , other state agencies, and local and regional 22 entities public interpretation, marketing, and education 23 programs that encourage Iowans and out-of-state visitors to 24 participate in the recreational and leisure opportunities 25 available in Iowa. The authority shall establish and 26 administer a program that helps connect both Iowa residents and 27 residents of other states to new and existing Iowa experiences 28 as a means to enhance the economic, social, and cultural 29 well-being of the state. The program shall include a broad 30 range of new opportunities, both rural and urban, including 31 main street destinations, green space initiatives, and artistic 32 and cultural attractions. 33 Sec. 11. Section 15H.6, subsection 3, Code 2015, is amended 34 to read as follows: 35 -6- LSB 1412XL (16) 86 ad/rj 6/ 13

S.F. _____ H.F. _____ 3. The capacity building activities shall be targeted in 1 communities that are already working with existing community 2 improvement programs, including but not limited to the Iowa 3 great places program established under section 303.3C , the 4 green streets and main street Iowa programs administered by 5 the economic development authority, and disaster remediation 6 activities by communities located within an area declared to be 7 a disaster area in a declaration issued by the president of the 8 United States or the governor. 9 Sec. 12. Section 292.2, subsection 9, Code 2015, is amended 10 by striking the subsection. 11 Sec. 13. Section 303.1, subsection 2, Code 2015, is amended 12 by adding the following new paragraph: 13 NEW PARAGRAPH . f. Coordinate and develop with the economic 14 development authority, department of transportation, the 15 department of natural resources, the Iowa next commission, 16 other state agencies, and local and regional entities 17 programs that encourage Iowans and out-of-state visitors to 18 participate in the cultural, recreational, and quality of life 19 opportunities available in Iowa. 20 Sec. 14. Section 303.1A, subsection 1, paragraph f, Code 21 2015, is amended by striking the paragraph. 22 Sec. 15. Section 303.3B, subsection 3, Code 2015, is amended 23 to read as follows: 24 3. The department of cultural affairs shall encourage 25 development projects and activities located in certified 26 cultural and entertainment districts through incentives under 27 cultural grant programs pursuant to section 303.3 , chapter 28 303A , and any other grant programs. 29 Sec. 16. Section 423.4, subsection 5, paragraph c, 30 subparagraph (5), Code 2015, is amended to read as follows: 31 (5) The automobile racetrack facility has not received 32 or shall not receive any grants under the former community 33 attraction and tourism program pursuant to chapter 15F , Code 34 2015 , subchapter II , or the former vision Iowa program pursuant 35 -7- LSB 1412XL (16) 86 ad/rj 7/ 13

S.F. _____ H.F. _____ to chapter 15F, subchapter III , Code 2015 . 1 Sec. 17. Section 423.4, subsection 11, paragraph c, 2 subparagraph (6), Code 2015, is amended to read as follows: 3 (6) The raceway facility has not received or shall not 4 receive any grants under the community attraction and tourism 5 program pursuant to chapter 15F, subchapter II , Code 2015, or 6 the vision Iowa program pursuant to chapter 15F, subchapter 7 III , Code 2015 . 8 Sec. 18. REPEAL. Chapters 15F and 303A, Code 2015, are 9 repealed. 10 Sec. 19. REPEAL. Sections 12.73, 303.3C, and 303.3D, Code 11 2015, are repealed. 12 Sec. 20. IOWA NEXT TRANSFER. Notwithstanding section 13 8.57F, subsection 1, paragraphs a, b, and c, for the fiscal 14 year beginning July 1, 2015, and ending June 30, 2016, the 15 department of management shall transfer twenty million dollars 16 from the state bond repayment fund created in section 8.57F to 17 the department of cultural affairs for deposit in the Iowa next 18 fund created in section 304.6 for purposes of the Iowa next 19 program established in section 304.5. 20 Sec. 21. IOWA NEXT COMMISSION —— TRANSITION PROVISIONS. The 21 initial members of the Iowa next commission established 22 pursuant to this Act shall be appointed by September 1, 2015. 23 Sec. 22. REPEAL OF VISION IOWA PROGRAM —— TRANSITION 24 PROVISIONS. 25 1. Any agreement or contract entered into under the vision 26 Iowa program prior to July 1, 2015, shall continue until the 27 expiration of the original agreement or contract as provided 28 by the terms of the agreement or contract, and shall be 29 administered by the department of cultural affairs. 30 2. The treasurer of state shall not issue bonds pursuant 31 to the vision Iowa program as described in section 12.71 after 32 June 30, 2015. 33 Sec. 23. REPEAL OF COMMUNITY ATTRACTION AND TOURISM PROGRAM 34 AND FUND AND THE RIVER ENHANCEMENT COMMUNITY ATTRACTION PROGRAM 35 -8- LSB 1412XL (16) 86 ad/rj 8/ 13

S.F. _____ H.F. _____ AND FUND —— TRANSITION PROVISIONS. 1 1. Upon repeal of the community attraction and tourism fund 2 created in section 15F.204 and the river enhancement community 3 attraction and tourism fund created in section 15F.205, the 4 vision Iowa board shall transfer any moneys remaining in any 5 account or fund under the control of the vision Iowa board to 6 the Iowa next fund created in section 304.6. 7 2. Unencumbered and unobligated moneys accruing to the 8 community attraction and tourism fund and the river enhancement 9 community attraction and tourism fund on or after July 1, 2015, 10 shall be transferred to the Iowa next fund. 11 3. The community attraction and tourism fund and the 12 river enhancement community attraction and tourism fund shall 13 continue in existence until all encumbrances and obligations 14 have been fulfilled. 15 4. Any agreement or contract entered into prior to July 16 1, 2015, pursuant to the community attraction and tourism 17 program or the river enhancement community attraction and 18 tourism program shall continue until the expiration of the 19 agreement or contract as provided by the terms of the agreement 20 or contract, and shall be administered by the department of 21 cultural affairs. 22 Sec. 24. REPEAL OF GREAT PLACES PROGRAM —— TRANSITION 23 PROVISIONS. 24 1. Upon repeal of the great places program fund created 25 in section 303.3D, the department of cultural affairs shall 26 transfer all unencumbered and unobligated moneys accruing to 27 the fund to the Iowa next fund created in section 304.6. 28 2. Unencumbered and unobligated moneys accruing to the 29 great places program fund on or after July 1, 2015, shall be 30 transferred to the Iowa next fund. 31 3. The great places program fund shall continue in existence 32 until all encumbrances and obligations have been fulfilled. 33 4. Any agreement or contract entered into prior to July 1, 34 2015, pursuant to the great places program shall continue until 35 -9- LSB 1412XL (16) 86 ad/rj 9/ 13

S.F. _____ H.F. _____ the expiration of the contract or agreement. 1 Sec. 25. REPEAL OF IOWA CULTURAL TRUST FUND AND GRANT 2 ACCOUNT —— TRANSITION PROVISIONS. 3 1. Upon repeal of the Iowa cultural trust fund and 4 grant account created in sections 303A.4 and 303A.7, the 5 Iowa cultural trust board of trustees shall transfer all 6 unencumbered and unobligated moneys accruing to the fund and 7 grant account to the Iowa next fund created in section 304.6. 8 2. Unencumbered and unobligated moneys accruing to the Iowa 9 cultural trust fund and grant account on or after July 1, 2015, 10 shall be transferred to the Iowa next fund. 11 3. The Iowa cultural trust fund and grant account shall 12 continue in existence until all encumbrances and obligations 13 have been fulfilled. 14 4. Any agreement or contract entered into prior to July 1, 15 2015, pursuant to the Iowa cultural trust shall continue until 16 the expiration of the contract or agreement. 17 Sec. 26. VISION IOWA BOARD —— TRANSITION PROVISIONS. On 18 July 1, 2015, the Iowa next commission shall assume any 19 remaining duties of the vision Iowa board. 20 Sec. 27. INTERAGENCY COOPERATION —— TRANSITION 21 PROVISIONS. The department of cultural affairs shall consult 22 with the economic development authority about the vision Iowa 23 program when implementing this Act. The economic development 24 authority shall assist the department of cultural affairs and 25 the Iowa next commission in implementing this Act by providing 26 for an effective transition of powers and duties from the 27 vision Iowa board to the commission and an effective transition 28 from the vision Iowa program, the community attraction and 29 tourism program, and the river enhancement community attraction 30 and tourism program to the Iowa next program. 31 EXPLANATION 32 The inclusion of this explanation does not constitute agreement with 33 the explanation’s substance by the members of the general assembly. 34 This bill establishes the Iowa next program, the Iowa next 35 -10- LSB 1412XL (16) 86 ad/rj 10/ 13

S.F. _____ H.F. _____ commission, and the Iowa next fund. The bill eliminates the 1 vision Iowa program, the community attraction and tourism 2 program and fund, the river enhancement community attraction 3 and tourism program and fund, the great places program and 4 fund, and the Iowa cultural trust, trust fund, and grant 5 account, makes appropriations, and includes transition 6 provisions. 7 The bill establishes the Iowa next commission (commission), 8 which is located for administrative purposes in the department 9 of cultural affairs (department). The commission has 11 10 members consisting of the directors of the economic development 11 authority, department of transportation, department of natural 12 resources, and department of cultural affairs, and seven 13 appointed public members. The commission has the duties to 14 organize, establish the Iowa next program, oversee and approve 15 the administration of the Iowa next program, and coordinate 16 efforts to increase the quality of life for residents of Iowa 17 and to attract persons from outside the state. 18 The bill provides that the department shall adopt rules, 19 subject to the approval of the commission, to administer 20 the Iowa next program. The department shall also provide 21 assistance in implementing administrative functions, marketing 22 the program, providing technical and application assistance to 23 applicants, and negotiating contracts. The bill allows the 24 department to conduct negotiations on behalf of the commission 25 regarding the terms applicable to awards under the program. 26 The bill requires the department to develop and make available 27 a public, searchable database on an internet site of funding 28 opportunities to assist with local efforts. The bill also 29 requires the department to employ a liaison for the Iowa next 30 program to provide information on state programs and to assist 31 in collaborative initiatives relating to quality of life 32 programs. 33 The bill requires the Iowa next commission to establish 34 and the department to administer the Iowa next program. The 35 -11- LSB 1412XL (16) 86 ad/rj 11/ 13

S.F. _____ H.F. _____ purpose of the Iowa next program is to invest in prioritized 1 quality of life projects. The bill allows a city, county, 2 state agency, or public organization to apply to the department 3 for financial assistance for a project. The department reviews 4 the applications looking at criteria established in the bill 5 and makes recommendations to the commission regarding the 6 applications. The commission must approve, defer, or deny the 7 applications. If approved, the department, on behalf of the 8 commission, may enter into an agreement with the applicant. 9 The bill establishes the Iowa next fund. The moneys in the 10 fund are appropriated to the department for purposes of the 11 Iowa next program. The fund consists of moneys appropriated, 12 moneys transferred, or any other moneys available to and 13 obtained by the department for placement in the fund. 14 For FY 2015-2016, the bill transfers $20 million from the 15 state bond repayment fund to the Iowa next fund for purposes of 16 the Iowa next program. 17 The bill repeals the vision Iowa program, the vision Iowa 18 board, the community attraction and tourism program and fund, 19 the river enhancement community attraction and tourism program 20 and fund, the great places program and fund, and the Iowa 21 cultural trust fund and grant account, and makes conforming 22 changes. The current and future unobligated and unencumbered 23 moneys from the community attraction and tourism fund, the 24 river enhancement community attraction and tourism fund, the 25 great places fund, and the Iowa cultural trust fund and grant 26 account are transferred to the Iowa next fund. The bill 27 requires the vision Iowa board to transfer any moneys remaining 28 in any account or fund under its control to the Iowa next fund. 29 The bill requires the department to consult with the 30 economic development authority when implementing the bill. The 31 bill requires the economic development authority to assist the 32 Iowa next commission in implementing the bill and providing for 33 an effective transition from the vision Iowa program to the 34 Iowa next program. 35 -12- LSB 1412XL (16) 86 ad/rj 12/ 13