House Study Bill 99 - Introduced SENATE/HOUSE FILE _____ BY (PROPOSED ECONOMIC DEVELOPMENT AUTHORITY BILL) A BILL FOR An Act relating to the programs and duties of the economic 1 development authority and including effective date and 2 retroactive and other applicability provisions and other 3 properly related matters. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 5 TLSB 1213XD (22) 86 ad/sc

S.F. _____ H.F. _____ 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 1213XD (22) 86 ad/sc 1/ 23

S.F. _____ H.F. _____ 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 1213XD (22) 86 ad/sc 2/ 23

S.F. _____ H.F. _____ 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 1213XD (22) 86 ad/sc 3/ 23

S.F. _____ H.F. _____ 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 Sec. 9. EFFECTIVE UPON ENACTMENT. This division of this 26 Act, being deemed of immediate importance, takes effect upon 27 enactment. 28 DIVISION II 29 VOLUNTEER COMMISSION 30 Sec. 10. Section 15H.5, subsection 5, paragraph a, Code 31 2015, is amended to read as follows: 32 a. Funding for the Iowa summer youth corps program , and the 33 Iowa green corps program established pursuant to section 15H.6 , 34 the Iowa reading corps program established pursuant to section 35 -4- LSB 1213XD (22) 86 ad/sc 4/ 23

S.F. _____ H.F. _____ 15H.7, and the Iowa national service corps program established 1 pursuant to section 15H.8 shall be obtained from private 2 sector, and local, state, and federal government sources, or 3 from other available funds credited to the community programs 4 account, which shall be created within the economic development 5 authority under the authority of the commission. Moneys 6 available in the account for a fiscal year are appropriated to 7 the commission to be used for the programs. The commission 8 may establish an escrow account within the authority and 9 obligate moneys within that escrow account for tuition or 10 program payments to be made beyond the term of any fiscal year. 11 Notwithstanding section 12C.7, subsection 2, interest earned 12 on moneys in the community programs account shall be credited 13 to the account. Notwithstanding section 8.33, moneys in the 14 community programs account or escrow account shall not revert 15 to the general fund but shall remain available for expenditure 16 in future fiscal years. 17 Sec. 11. NEW SECTION . 15H.7 Iowa reading corps. 18 1. a. The Iowa commission on volunteer service, in 19 collaboration with the department of education, may establish 20 an Iowa reading corps program to provide Iowa reading corps 21 Americorps members with a data-based, problem-solving model 22 of literacy instruction to use in tutoring students from 23 prekindergarten to third grade who are not proficient in 24 reading or who are at risk of becoming not proficient in 25 reading. 26 b. The program shall incorporate models of the evaluation 27 and teaching of early literacy skills, including comprehensive, 28 research-based reading instruction which has been reviewed and 29 approved by the department of education in collaboration with 30 the Iowa reading research center established by section 256.9, 31 subsection 53, paragraph “c” . 32 2. a. The models of literacy instruction utilized by Iowa 33 reading corps Americorps members shall align with literacy 34 program goals and strategies developed by the state department 35 -5- LSB 1213XD (22) 86 ad/sc 5/ 23

S.F. _____ H.F. _____ of education and the Iowa reading research center. 1 b. The commission, in collaboration with the department of 2 education, may adopt rules to implement and administer this 3 section. 4 3. The commission may use moneys in and lawfully available 5 to the community programs account created in section 15H.5 to 6 fund the program. 7 4. The commission shall submit an annual report to the 8 general assembly and the state department of education that 9 records and evaluates program data to determine the efficacy 10 of the program. 11 Sec. 12. NEW SECTION . 15H.8 Iowa national service corps. 12 1. The Iowa commission on volunteer service may establish an 13 Iowa national service corps program to provide opportunities 14 for state agencies, political subdivisions of the state, and 15 private nonprofit organizations to create national service 16 programs outside of existing state and federal programs to meet 17 state and local needs and to provide more opportunities for 18 Iowans to serve their state and country and foster a cultural 19 expectation of service in Iowa through a unified service corps. 20 2. The commission may establish rules for approving Iowa 21 national service corps programs and national service positions. 22 Existing programs and service positions, including those 23 established through the Americorps programs in Iowa created 24 pursuant to 42 U.S.C. §12501, Senior Corps and Americorps vista 25 in Iowa created pursuant to 42 U.S.C. §4950, the Iowa summer 26 youth corps program created pursuant to section 15H.5, the Iowa 27 green corps program created pursuant to section 15H.6, the 28 Iowa reading corps program created pursuant to section 15H.7, 29 and the Iowa conservation corps created pursuant to section 30 84A.7, are part of the Iowa national service corps programs and 31 national service positions. 32 3. State agencies or political subdivisions of the state 33 may enter into an agreement with any approved Iowa national 34 service corps program directly or through an agreement with 35 -6- LSB 1213XD (22) 86 ad/sc 6/ 23

S.F. _____ H.F. _____ the commission. State agencies or political subdivisions of 1 the state may establish Iowa national service corps programs 2 or contract with a third-party vendor to assist the agency or 3 political subdivision in establishing such programs. 4 4. State agencies or political subdivisions of the state may 5 give priority to grants or projects funded that utilize Iowa 6 national service corps programs. 7 5. State agencies or political subdivisions of the state 8 may establish hiring preferences for any Iowa national service 9 corps or Americorps participant who has successfully completed 10 a year of full-time service or one thousand seven hundred hours 11 over a period extending beyond a year. 12 6. A person participating in the Iowa national service corps 13 program is not an employee of the organization in which the 14 person is enrolled regardless of whether a stipend is provided, 15 shall be exempt from the merit system requirements, and is not 16 eligible to receive unemployment compensation benefits upon 17 completion of service. 18 DIVISION III 19 SCIENCE, TECHNOLOGY, ENGINEERING, AND MATHEMATICS INTERNSHIP 20 Sec. 13. Section 15.411, subsection 3, Code 2015, is amended 21 to read as follows: 22 3. a. The authority shall establish and administer an 23 internship program with two components for Iowa students. 24 To the extent permitted by this subsection, the authority 25 shall administer the two components in as similar a manner as 26 possible. For purposes of this subsection , “Iowa student” means 27 a student of an Iowa community college, private college, or 28 institution of higher learning under the control of the state 29 board of regents, or a student who graduated from high school 30 in Iowa but now attends an institution of higher learning 31 outside the state of Iowa. 32 b. The purpose of the first component of the program is 33 to link Iowa students to small and medium sized Iowa firms 34 through internship opportunities. An Iowa employer may receive 35 -7- LSB 1213XD (22) 86 ad/sc 7/ 23

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

S.F. _____ H.F. _____ similar as possible to those adopted pursuant to paragraph “b” . 1 (2) The requirement to administer this component of the 2 internship program is contingent upon the provision of funding 3 for such purposes by the general assembly. 4 Sec. 14. EMERGENCY RULES. The economic development 5 authority may adopt emergency rules under section 17A.4, 6 subsection 3, and section 17A.5, subsection 2, paragraph “b”, 7 to implement the provisions of this division of this Act and 8 the rules shall be effective immediately upon filing unless 9 a later date is specified in the rules. Any rules adopted 10 in accordance with this section shall also be published as a 11 notice of intended action as provided in section 17A.4. 12 Sec. 15. EFFECTIVE UPON ENACTMENT. This division of this 13 Act, being deemed of immediate importance, takes effect upon 14 enactment. 15 Sec. 16. RETROACTIVE APPLICABILITY. This division of this 16 Act applies retroactively to July 1, 2014. 17 DIVISION IV 18 REINVESTMENT DISTRICTS AND FLOOD MITIGATION 19 Sec. 17. Section 15J.4, subsection 3, paragraph a, Code 20 2015, is amended to read as follows: 21 a. The municipality shall submit a copy of the resolution, 22 the proposed district plan, and all accompanying materials 23 adopted pursuant to this section to the board for evaluation. 24 The board shall not approve a proposed district plan or an 25 amendment to an existing district’s plan on or after July 1, 26 2018. 27 Sec. 18. Section 28F.12, Code 2015, is amended to read as 28 follows: 29 28F.12 Additional powers of the entity. 30 a. If the entity is comprised solely of cities, counties, 31 and sanitary districts established under chapter 358 , or any 32 combination thereof, the entity shall have in addition to all 33 the powers enumerated in this chapter , the powers which that a 34 county has with respect to solid waste disposal projects. 35 -9- LSB 1213XD (22) 86 ad/sc 9/ 23

S.F. _____ H.F. _____ b. If the entity is comprised solely of cities, counties, 1 and sanitary districts established under chapter 358, or any 2 combination thereof, it is a governmental entity with respect 3 to projects undertaken pursuant to chapter 418. Unless 4 otherwise provided in chapter 418, if undertaking a flood 5 mitigation project as a governmental entity under chapter 6 418, the provisions of chapter 418 shall prevail over any 7 conflicting provision in this chapter. 8 Sec. 19. Section 418.1, subsection 4, paragraph c, 9 unnumbered paragraph 1, Code 2015, is amended to read as 10 follows: 11 A joint board or other legal or administrative entity 12 established or designated in an agreement pursuant to chapter 13 28E or 28F between any of the following: 14 Sec. 20. Section 418.1, subsection 4, paragraph c, Code 15 2015, is amended by adding the following new subparagraph: 16 NEW SUBPARAGRAPH . (4) One or more counties, one or more 17 cities that are located in whole or in part within those 18 counties, and one or more sanitary districts established under 19 chapter 358 or a combined water and sanitary district as 20 provided for in sections 357.1B and 358.1B, located in whole or 21 in part within those counties. 22 Sec. 21. Section 418.4, subsection 1, paragraph b, Code 23 2015, is amended to read as follows: 24 b. A governmental entity as defined in section 418.1, 25 subsection 4 , paragraph “c” , shall have the power to construct, 26 acquire, own, repair, improve, operate, and maintain a project, 27 may sue and be sued, contract, and acquire and hold real and 28 personal property, subject to the limitation in paragraph 29 “c” , and shall have such other powers as may be included in 30 the chapter 28E or 28F agreement. Such a governmental entity 31 may contract with a city or the county participating in the 32 chapter 28E agreement to perform any governmental service, 33 activity, or undertaking that the city or county is authorized 34 by law to perform, including but not limited to contracts for 35 -10- LSB 1213XD (22) 86 ad/sc 10/ 23

S.F. _____ H.F. _____ administrative services. 1 Sec. 22. Section 418.11, subsection 3, paragraph c, Code 2 2015, is amended to read as follows: 3 c. For projects approved for a governmental entity as 4 defined in section 418.1, subsection 4 , paragraph “c” , the 5 area used to determine the sales tax increment shall include 6 the incorporated areas of each participating city that is 7 participating in the chapter 28E agreement , the unincorporated 8 areas of the each participating county, and the area of any 9 participating drainage district not otherwise included in 10 the areas of the participating cities or county, and the 11 area served by any sanitary district or combined water and 12 sanitary district and not otherwise included in the areas of 13 the participating cities or counties, as applicable. 14 Sec. 23. Section 418.11, subsection 3, Code 2015, is amended 15 by adding the following new paragraph: 16 NEW PARAGRAPH . d. For all projects, the area used to 17 determine the sales tax increment shall not include any parcels 18 of real property that are included in a reinvestment district 19 designated pursuant to chapter 15J. 20 Sec. 24. Section 418.12, subsection 5, Code 2015, is amended 21 to read as follows: 22 5. If the department of revenue determines that the revenue 23 accruing to the fund or accounts within the fund exceeds 24 thirty million dollars or exceeds the amount necessary for the 25 purposes of this chapter if the amount necessary is less than 26 thirty million dollars , then those as limited by subsection 27 4, paragraph “a” , the excess moneys shall be credited by the 28 department of revenue for deposit in the general fund of the 29 state. 30 Sec. 25. Section 418.14, subsection 3, paragraph a, Code 31 2015, is amended to read as follows: 32 a. Except as otherwise provided in this section , bonds 33 issued pursuant to this section shall not be subject to 34 the provisions of any other law or charter relating to the 35 -11- LSB 1213XD (22) 86 ad/sc 11/ 23

S.F. _____ H.F. _____ authorization, issuance, or sale of bonds. Bonds issued under 1 this section shall not limit or restrict the authority of a 2 governmental entity as defined in section 418.1, subsection 4 , 3 paragraphs “a” and “b” , or a city, county, or drainage district , 4 sanitary district, or combined water and sanitary district 5 participating in a governmental entity as defined in section 6 418.1, subsection 4 , paragraph “c” , to issue bonds for the 7 project under other provisions of the Code. 8 Sec. 26. Section 418.14, subsection 4, paragraph b, Code 9 2015, is amended to read as follows: 10 b. If the moneys in the governmental entity’s flood project 11 fund are insufficient to pay the governmental entity’s costs 12 related to bonds, notes, or other obligations issued under 13 this chapter , the amounts necessary to pay such costs may 14 be levied and transferred for deposit in the governmental 15 entity’s flood project fund from the debt service fund of the 16 governmental entity or, if applicable, the debt service fund 17 of a participating city or county for a governmental entity as 18 defined in section 418.1, subsection 4 , paragraph “c” , but only 19 if and to the extent provided in the resolution authorizing the 20 issuance of bonds and, if applicable, the chapter 28E or 28F 21 agreement. 22 Sec. 27. Section 418.15, subsection 4, Code 2015, is amended 23 to read as follows: 24 4. All property and improvements acquired by a governmental 25 entity as defined in section 418.1, subsection 4 , paragraph 26 “c” , relating to a project shall be transferred to the county, 27 city, or drainage district , sanitary district, or combined 28 water and sanitary district designated in the chapter 28E or 29 28F agreement to receive such property and improvements. The 30 county, city, or drainage district , sanitary district, or 31 combined water and sanitary district to which such property or 32 improvements are transferred shall, unless otherwise provided 33 in the chapter 28E or 28F agreement, be solely responsible 34 for the ongoing maintenance and support of such property and 35 -12- LSB 1213XD (22) 86 ad/sc 12/ 23

S.F. _____ H.F. _____ improvements. 1 Sec. 28. Section 423.2, subsection 11, paragraph b, Code 2 2015, is amended by adding the following new subparagraph: 3 NEW SUBPARAGRAPH . (05) Beginning the first day of the 4 calendar quarter beginning on the reinvestment district’s 5 commencement date, subject to remittance limitations 6 established by the economic development authority board 7 pursuant to section 15J.4, subsection 3, transfer to a district 8 account created in the state reinvestment district fund for 9 each reinvestment district established under chapter 15J, the 10 amount of new state sales tax revenue, determined in section 11 15J.5, subsection 1, paragraph “b” , in the district, that 12 remains after the prior transfers required under this paragraph 13 “b” . Such transfers shall cease pursuant to section 15J.8. 14 Sec. 29. Section 423.2, subsection 11, paragraph b, 15 subparagraph (6), Code 2015, is amended by striking the 16 subparagraph. 17 Sec. 30. Section 423.2, Code 2015, is amended by adding the 18 following new subsection: 19 NEW SUBSECTION . 11A. Of the amount of sales tax revenue 20 actually transferred per quarter pursuant to subsection 11, 21 paragraph “b” , subparagraphs (05) and (5), the department shall 22 retain an amount equal to the actual cost of administering the 23 transfers under subsection 11, paragraph “b” , subparagraphs 24 (05) and (5), or twenty-five thousand dollars, whichever is 25 less. The amount retained by the department pursuant to this 26 subsection shall be divided pro rata each quarter between the 27 amounts that would have been transferred pursuant to subsection 28 11, paragraph “b” , subparagraphs (05) and (5), without the 29 deduction made by operation of this subsection. Revenues 30 retained by the department pursuant to this subsection shall be 31 considered repayment receipts as defined in section 8.2. 32 Sec. 31. EFFECTIVE UPON ENACTMENT. This division of this 33 Act, being deemed of immediate importance, takes effect upon 34 enactment. 35 -13- LSB 1213XD (22) 86 ad/sc 13/ 23

S.F. _____ H.F. _____ Sec. 32. RETROACTIVE AND OTHER APPLICABILITY. 1 1. Except as provided in subsection 3, this division of this 2 Act applies retroactively to reinvestment districts designated 3 under chapter 15J in existence on or after July 1, 2014. 4 2. Except as provided in subsection 3, this division of 5 this Act applies to flood mitigation project plan applications 6 received under chapter 418 before, on, or after the effective 7 date of this division of this Act. 8 3. The sections of this division of this Act amending 9 section 423.2, subsection 11, and enacting section 423.2, 10 subsection 11A, apply to transfers of sales tax revenues made 11 on or after July 1, 2015. 12 DIVISION V 13 ENTERPRISE ZONES 14 Sec. 33. 2014 Iowa Acts, chapter 1130, section 43, 15 subsection 1, is amended to read as follows: 16 1. On or after the effective date of this division of this 17 Act, a city or county shall not create an enterprise zone under 18 chapter 15E, division XVIII, or enter into a new agreement or 19 amend an existing agreement under chapter 15E, division XVIII. 20 A city or county and the economic development authority, with 21 the approval of the economic development authority board, may 22 amend an agreement for compliance reasons if the amendment 23 does not increase the amount of incentives awarded under the 24 agreement. 25 DIVISION VI 26 NUISANCE PROPERTIES AND ABANDONED BUILDINGS 27 Sec. 34. Section 15.335B, subsection 2, paragraph a, Code 28 2015, is amended by adding the following new subparagraph: 29 NEW SUBPARAGRAPH . (8) For deposit in the nuisance property 30 remediation fund created pursuant to section 15.338. 31 Sec. 35. NEW SECTION . 15.338 Nuisance property remediation 32 assistance —— fund. 33 1. a. The economic development authority shall establish 34 a nuisance property remediation fund pursuant to section 35 -14- LSB 1213XD (22) 86 ad/sc 14/ 23

S.F. _____ H.F. _____ 15.106A, subsection 1, paragraph “o” , for purposes of providing 1 financial assistance to cities for the remediation of nuisance 2 properties and abandoned buildings and other structures. The 3 authority shall administer the fund in a manner designed to 4 make funds annually available to cities for purposes of this 5 section. 6 b. The authority may administer a fund established for 7 purposes of this section as a revolving fund. The fund may 8 consist of any moneys appropriated by the general assembly for 9 purposes of this section and any other moneys that are lawfully 10 available to the authority, including moneys transferred or 11 deposited from other funds created pursuant to section 15.106A, 12 subsection 1, paragraph “o” . 13 c. The authority shall use any moneys specifically 14 appropriated for purposes of this section only for the purposes 15 of this section. The authority may use all other moneys in the 16 fund, including interest, earnings, recaptures, and repayments 17 for purposes of this section or the authority may transfer 18 the other moneys to other funds created pursuant to section 19 15.106A, subsection 1, paragraph “o” . 20 d. Notwithstanding section 8.33, moneys in the nuisance 21 property remediation fund at the end of each fiscal year shall 22 not revert to any other fund but shall remain in the fund for 23 expenditure for subsequent fiscal years. 24 e. The authority may use not more than five percent of 25 the moneys in the fund at the beginning of the fiscal year 26 for purposes of administrative costs, finance, compliance, 27 marketing, and program support. 28 2. The authority shall use moneys in the fund to provide 29 financial assistance to cities for the remediation of nuisance 30 properties and abandoned buildings and other structures. Such 31 financial assistance may include grants, loans, forgivable 32 loans, or other forms of financial assistance as necessary 33 to effectuate the purposes of this section. The authority 34 may provide financial assistance under this section using a 35 -15- LSB 1213XD (22) 86 ad/sc 15/ 23

S.F. _____ H.F. _____ competitive scoring process. 1 3. In providing financial assistance under this section, 2 the authority may give priority to cities with severe blighted 3 areas, widespread dilapidated housing stock, or high rates of 4 low or moderate income residents. 5 4. The authority shall enter into an agreement with 6 each city for the receipt of financial assistance under 7 this section. The authority may negotiate the terms of the 8 agreement. 9 5. In providing financial assistance under this section, 10 the authority shall coordinate with a city to develop a plan 11 for the use of funds that is consistent with the community 12 development, housing, and economic development goals of the 13 city. The terms of the agreement entered into pursuant to 14 subsection 3 and the use of financial assistance provided under 15 this section shall reflect the plan developed based on a city’s 16 goals. 17 Sec. 36. Section 657A.1, subsections 1 and 3, Code 2015, are 18 amended to read as follows: 19 1. “Abandoned” or “abandonment” means that a building has 20 remained vacant and has been in violation of the housing code 21 or building code of the city in which the property is located 22 or the housing code or building code applicable in the county 23 in which the property is located if outside the limits of a 24 city for a period of six consecutive months. 25 3. “Building” means a building or structure located in a 26 city or outside the limits of a city in a county, which is used 27 or intended to be used for commercial or industrial purposes or 28 which is used or intended to be used for residential purposes , 29 and includes a building or structure in which some floors 30 may be used for retail stores, shops, salesrooms, markets, 31 or similar commercial uses, or for offices, banks, civic 32 administration activities, professional services, or similar 33 business or civic uses, and other floors are used, designed, or 34 intended to be used for residential purposes. 35 -16- LSB 1213XD (22) 86 ad/sc 16/ 23

S.F. _____ H.F. _____ Sec. 37. Section 657A.10A, subsection 1, paragraph b, Code 1 2015, is amended to read as follows: 2 b. The petition shall be filed in the district court of 3 the county in which the property is located. Service on the 4 owner and any other named respondents shall be by personal 5 service or certified mail and or, if service cannot be made by 6 either method, by posting the notice in a conspicuous place 7 on the building and by publication in a newspaper of general 8 circulation in the city . The action shall be in equity. 9 Sec. 38. Section 657A.10A, subsection 3, paragraphs d, f, 10 and j, Code 2015, are amended to read as follows: 11 d. Whether the building meets the city’s housing code for as 12 being fit for human habitation, occupancy, or use. 13 f. Whether the building is boarded up or otherwise secured 14 from unauthorized entry . 15 j. Past and current compliance with orders of the local 16 housing or building code official. 17 Sec. 39. Section 657A.10A, subsection 3, Code 2015, is 18 amended by adding the following new paragraphs: 19 NEW PARAGRAPH . 0e. Whether the building meets the city’s 20 building code as being fit for occupancy or use. 21 NEW PARAGRAPH . 0h. Whether those claiming an interest 22 in the property have, prior to the filing of the petition, 23 demonstrated a good-faith effort to restore the property to 24 productive use. 25 Sec. 40. Section 657A.10A, subsections 4 and 5, Code 2015, 26 are amended to read as follows: 27 4. In lieu of the considerations in subsection 3 , if the 28 city can establish to the court’s satisfaction that all parties 29 with an interest in the property have received proper notice 30 and either consented to the entry of an order awarding title 31 to the property to the city or did not make a good faith 32 good-faith effort to comply with the order of the local housing 33 or building code official within sixty days after the filing 34 of the petition, the court shall enter judgment against the 35 -17- LSB 1213XD (22) 86 ad/sc 17/ 23

S.F. _____ H.F. _____ respondents granting the city title to the property. 1 5. If the court determines that the property has been 2 abandoned or that subsection 4 applies, the court shall enter 3 judgment and order awarding title to the city. The title 4 awarded to the city shall be free and clear of any claims, 5 liens, or encumbrances held by the respondents. 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 modifying and establishing programs administered by the Iowa 12 commission on volunteer service, specifying the state matching 13 funds available for payment of intern wages under the science, 14 technology, engineering, and mathematics internship program, 15 modifying provisions related to reinvestment districts and to 16 flood mitigation projects, modifying provisions concerning 17 enterprise zones, and modifying provisions and establishing a 18 program relating to nuisance property and abandoned buildings. 19 Division I of the bill modifies provisions relating to the 20 life cycle analysis required of certain public facilities. 21 The division adds a definition of “addition” and modifies the 22 definitions of “facility” and “renovation” and requires a 23 public agency responsible for the construction or renovation 24 of a facility or the construction of an addition to a facility 25 to include the performance of a life cycle cost analysis as 26 a design criterion on or after the effective date of the 27 division. The division requires a public agency or person 28 preparing a life cycle cost analysis for a public agency to 29 use methodology established, by rule, by the state building 30 code commissioner, rather than methods and analytical 31 models provided by the economic development authority. The 32 division requires the commissioner to also adopt rules for the 33 implementation and adoption of the life cycle cost analysis. 34 The division takes effect upon enactment. 35 -18- LSB 1213XD (22) 86 ad/sc 18/ 23