Senate File 233 - Introduced SENATE FILE 233 BY COMMITTEE ON ECONOMIC GROWTH (SUCCESSOR TO SSB 1115) 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 1213SV (3) 86 ad/sc

S.F. 233 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 1213SV (3) 86 ad/sc 1/ 20

S.F. 233 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 1213SV (3) 86 ad/sc 2/ 20

S.F. 233 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 1213SV (3) 86 ad/sc 3/ 20

S.F. 233 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 1213SV (3) 86 ad/sc 4/ 20

S.F. 233 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 the 11 assistance on a reimbursement basis such that for every two 12 dollars of wages earned by the student, one dollar paid by the 13 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 1213SV (3) 86 ad/sc 5/ 20

S.F. 233 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 REINVESTMENT DISTRICTS AND FLOOD MITIGATION 26 Sec. 13. Section 15J.4, subsection 3, paragraph a, Code 27 2015, is amended to read as follows: 28 a. The municipality shall submit a copy of the resolution, 29 the proposed district plan, and all accompanying materials 30 adopted pursuant to this section to the board for evaluation. 31 The board shall not approve a proposed district plan or an 32 amendment to an existing district’s plan on or after July 1, 33 2018. 34 Sec. 14. Section 28F.12, Code 2015, is amended to read as 35 -6- LSB 1213SV (3) 86 ad/sc 6/ 20

S.F. 233 follows: 1 28F.12 Additional powers of the entity. 2 1. If the entity is comprised solely of cities, counties, 3 and sanitary districts established under chapter 358 , or any 4 combination thereof, the entity shall have in addition to all 5 the powers enumerated in this chapter , the powers which that a 6 county has with respect to solid waste disposal projects. 7 2. If the entity is comprised solely of cities, counties, 8 and sanitary districts established under chapter 358, or any 9 combination thereof, it is a governmental entity with respect 10 to projects undertaken pursuant to chapter 418 and may exercise 11 all of the powers of a governmental entity under that chapter 12 in connection with the flood mitigation project. Unless 13 otherwise provided in chapter 418, if undertaking a flood 14 mitigation project as a governmental entity under chapter 15 418, the provisions of chapter 418 shall prevail over any 16 conflicting provision in this chapter. 17 Sec. 15. Section 418.1, subsection 4, paragraph c, 18 unnumbered paragraph 1, Code 2015, is amended to read as 19 follows: 20 A joint board or other legal or administrative entity 21 established or designated in an agreement pursuant to chapter 22 28E or 28F between any of the following: 23 Sec. 16. Section 418.1, subsection 4, paragraph c, Code 24 2015, is amended by adding the following new subparagraph: 25 NEW SUBPARAGRAPH . (4) One or more counties, one or more 26 cities that are located in whole or in part within those 27 counties, and one or more sanitary districts established under 28 chapter 358 or a combined water and sanitary district as 29 provided for in sections 357.1B and 358.1B, located in whole or 30 in part within those counties. 31 Sec. 17. Section 418.4, subsection 1, paragraph b, Code 32 2015, is amended to read as follows: 33 b. A governmental entity as defined in section 418.1, 34 subsection 4 , paragraph “c” , shall have the power to construct, 35 -7- LSB 1213SV (3) 86 ad/sc 7/ 20

S.F. 233 acquire, own, repair, improve, operate, and maintain a project, 1 may sue and be sued, contract, and acquire and hold real and 2 personal property, subject to the limitation in paragraph 3 “c” , and shall have such other powers as may be included in 4 the chapter 28E or 28F agreement. Such a governmental entity 5 may contract with a city or the county participating in the 6 chapter 28E agreement to perform any governmental service, 7 activity, or undertaking that the city or county is authorized 8 by law to perform, including but not limited to contracts for 9 administrative services. 10 Sec. 18. Section 418.11, subsection 3, paragraph c, Code 11 2015, is amended to read as follows: 12 c. For projects approved for a governmental entity as 13 defined in section 418.1, subsection 4 , paragraph “c” , the 14 area used to determine the sales tax increment shall include 15 the incorporated areas of each participating city that is 16 participating in the chapter 28E agreement , the unincorporated 17 areas of the each participating county, and the area of any 18 participating drainage district not otherwise included in 19 the areas of the participating cities or county, and the 20 area served by any sanitary district or combined water and 21 sanitary district and not otherwise included in the areas of 22 the participating cities or counties, as applicable. 23 Sec. 19. Section 418.11, subsection 3, Code 2015, is amended 24 by adding the following new paragraph: 25 NEW PARAGRAPH . d. For all projects, the area used to 26 determine the sales tax increment shall not include any parcels 27 of real property that are included in a reinvestment district 28 designated pursuant to chapter 15J. 29 Sec. 20. Section 418.14, subsection 3, paragraph a, Code 30 2015, is amended to read as follows: 31 a. Except as otherwise provided in this section , bonds 32 issued pursuant to this section shall not be subject to 33 the provisions of any other law or charter relating to the 34 authorization, issuance, or sale of bonds. Bonds issued under 35 -8- LSB 1213SV (3) 86 ad/sc 8/ 20

S.F. 233 this section shall not limit or restrict the authority of a 1 governmental entity as defined in section 418.1, subsection 4 , 2 paragraphs “a” and “b” , or a city, county, or drainage district , 3 sanitary district, or combined water and sanitary district 4 participating in a governmental entity as defined in section 5 418.1, subsection 4 , paragraph “c” , to issue bonds for the 6 project under other provisions of the Code. 7 Sec. 21. Section 418.14, subsection 4, paragraph b, Code 8 2015, is amended to read as follows: 9 b. If the moneys in the governmental entity’s flood project 10 fund are insufficient to pay the governmental entity’s costs 11 related to bonds, notes, or other obligations issued under 12 this chapter , the amounts necessary to pay such costs may 13 be levied and transferred for deposit in the governmental 14 entity’s flood project fund from the debt service fund of the 15 governmental entity or, if applicable, the debt service fund 16 of a participating city or county for a governmental entity as 17 defined in section 418.1, subsection 4 , paragraph “c” , but only 18 if and to the extent provided in the resolution authorizing the 19 issuance of bonds and, if applicable, the chapter 28E or 28F 20 agreement. 21 Sec. 22. Section 418.15, subsection 4, Code 2015, is amended 22 to read as follows: 23 4. All property and improvements acquired by a governmental 24 entity as defined in section 418.1, subsection 4 , paragraph 25 “c” , relating to a project shall be transferred to the county, 26 city, or drainage district , sanitary district, or combined 27 water and sanitary district designated in the chapter 28E or 28 28F agreement to receive such property and improvements. The 29 county, city, or drainage district , sanitary district, or 30 combined water and sanitary district to which such property or 31 improvements are transferred shall, unless otherwise provided 32 in the chapter 28E or 28F agreement, be solely responsible 33 for the ongoing maintenance and support of such property and 34 improvements. 35 -9- LSB 1213SV (3) 86 ad/sc 9/ 20

S.F. 233 Sec. 23. Section 423.2, subsection 11, paragraph b, Code 1 2015, is amended by adding the following new subparagraph: 2 NEW SUBPARAGRAPH . (05) Beginning the first day of the 3 calendar quarter beginning on the reinvestment district’s 4 commencement date, subject to remittance limitations 5 established by the economic development authority board 6 pursuant to section 15J.4, subsection 3, transfer to a district 7 account created in the state reinvestment district fund for 8 each reinvestment district established under chapter 15J, the 9 amount of new state sales tax revenue, determined in section 10 15J.5, subsection 1, paragraph “b” , in the district, that 11 remains after the prior transfers required under this paragraph 12 “b” . Such transfers shall cease pursuant to section 15J.8. 13 Sec. 24. Section 423.2, subsection 11, paragraph b, 14 subparagraph (6), Code 2015, is amended by striking the 15 subparagraph. 16 Sec. 25. Section 423.2, Code 2015, is amended by adding the 17 following new subsection: 18 NEW SUBSECTION . 11A. Of the amount of sales tax revenue 19 actually transferred per quarter pursuant to subsection 11, 20 paragraph “b” , subparagraphs (05) and (5), the department shall 21 retain an amount equal to the actual cost of administering the 22 transfers under subsection 11, paragraph “b” , subparagraphs 23 (05) and (5), or twenty-five thousand dollars, whichever is 24 less. The amount retained by the department pursuant to this 25 subsection shall be divided pro rata each quarter between the 26 amounts that would have been transferred pursuant to subsection 27 11, paragraph “b” , subparagraphs (05) and (5), without the 28 deduction made by operation of this subsection. Revenues 29 retained by the department pursuant to this subsection shall be 30 considered repayment receipts as defined in section 8.2. 31 Sec. 26. EFFECTIVE UPON ENACTMENT. This division of this 32 Act, being deemed of immediate importance, takes effect upon 33 enactment. 34 Sec. 27. RETROACTIVE AND OTHER APPLICABILITY. 35 -10- LSB 1213SV (3) 86 ad/sc 10/ 20

S.F. 233 1. Except as provided in subsection 3, this division of this 1 Act applies retroactively to reinvestment districts designated 2 under chapter 15J in existence on or after July 1, 2014. 3 2. Except as provided in subsection 3, this division of 4 this Act applies to flood mitigation project plan applications 5 received under chapter 418 before, on, or after the effective 6 date of this division of this Act. 7 3. The sections of this division of this Act amending 8 section 423.2, subsection 11, and enacting section 423.2, 9 subsection 11A, apply to transfers of sales tax revenues made 10 on or after July 1, 2015. 11 DIVISION IV 12 ENTERPRISE ZONES 13 Sec. 28. 2014 Iowa Acts, chapter 1130, section 43, 14 subsection 1, is amended to read as follows: 15 1. On or after the effective date of this division of this 16 Act, a city or county shall not create an enterprise zone under 17 chapter 15E, division XVIII, or enter into a new agreement or 18 amend an existing agreement under chapter 15E, division XVIII. 19 A city or county and the economic development authority, with 20 the approval of the economic development authority board, may 21 amend an agreement for compliance reasons if the amendment 22 does not increase the amount of incentives awarded under the 23 agreement. 24 DIVISION V 25 NUISANCE PROPERTIES AND ABANDONED BUILDINGS 26 Sec. 29. Section 15.335B, subsection 2, paragraph a, Code 27 2015, is amended by adding the following new subparagraph: 28 NEW SUBPARAGRAPH . (8) For deposit in the nuisance property 29 remediation fund created pursuant to section 15.338. 30 Sec. 30. NEW SECTION . 15.338 Nuisance property remediation 31 assistance —— fund. 32 1. a. The economic development authority shall establish 33 a nuisance property remediation fund pursuant to section 34 15.106A, subsection 1, paragraph “o” , for purposes of providing 35 -11- LSB 1213SV (3) 86 ad/sc 11/ 20

S.F. 233 financial assistance to cities for the remediation of nuisance 1 properties and abandoned buildings and other structures. The 2 authority shall administer the fund in a manner designed to 3 make funds annually available to cities for purposes of this 4 section. 5 b. The authority may administer a fund established for 6 purposes of this section as a revolving fund. The fund may 7 consist of any moneys appropriated by the general assembly for 8 purposes of this section and any other moneys that are lawfully 9 available to the authority, including moneys transferred or 10 deposited from other funds created pursuant to section 15.106A, 11 subsection 1, paragraph “o” . 12 c. The authority shall use any moneys specifically 13 appropriated for purposes of this section only for the purposes 14 of this section. The authority may use all other moneys in the 15 fund, including interest, earnings, recaptures, and repayments 16 for purposes of this section or the authority may transfer 17 the other moneys to other funds created pursuant to section 18 15.106A, subsection 1, paragraph “o” . 19 d. Notwithstanding section 8.33, moneys in the nuisance 20 property remediation fund at the end of each fiscal year shall 21 not revert to any other fund but shall remain in the fund for 22 expenditure for subsequent fiscal years. 23 e. The authority may use not more than five percent of 24 the moneys in the fund at the beginning of the fiscal year 25 for purposes of administrative costs, finance, compliance, 26 marketing, and program support. 27 2. The authority shall use moneys in the fund to provide 28 financial assistance to cities for the remediation of nuisance 29 properties and abandoned buildings and other structures. Such 30 financial assistance may include grants, loans, forgivable 31 loans, or other forms of financial assistance as necessary 32 to effectuate the purposes of this section. The authority 33 may provide financial assistance under this section using a 34 competitive scoring process. 35 -12- LSB 1213SV (3) 86 ad/sc 12/ 20

S.F. 233 3. In providing financial assistance under this section, 1 the authority may give priority to cities with severe blighted 2 areas, widespread dilapidated housing stock, or high rates of 3 low or moderate income residents. 4 4. The authority shall enter into an agreement with 5 each city for the receipt of financial assistance under 6 this section. The authority may negotiate the terms of the 7 agreement. 8 5. In providing financial assistance under this section, 9 the authority shall coordinate with a city to develop a plan 10 for the use of funds that is consistent with the community 11 development, housing, and economic development goals of the 12 city. The terms of the agreement entered into pursuant to 13 subsection 3 and the use of financial assistance provided under 14 this section shall reflect the plan developed based on a city’s 15 goals. 16 Sec. 31. Section 657A.1, subsections 1 and 3, Code 2015, are 17 amended to read as follows: 18 1. “Abandoned” or “abandonment” means that a building has 19 remained vacant and has been in violation of the housing code 20 or building code of the city in which the property is located 21 or the housing code or building code applicable in the county 22 in which the property is located if outside the limits of a 23 city for a period of six consecutive months. 24 3. “Building” means a building or structure located in a 25 city or outside the limits of a city in a county, which is used 26 or intended to be used for commercial or industrial purposes or 27 which is used or intended to be used for residential purposes , 28 and includes a building or structure in which some floors 29 may be used for retail stores, shops, salesrooms, markets, 30 or similar commercial uses, or for offices, banks, civic 31 administration activities, professional services, or similar 32 business or civic uses, and other floors are used, designed, or 33 intended to be used for residential purposes. 34 Sec. 32. Section 657A.10A, subsection 1, paragraph b, Code 35 -13- LSB 1213SV (3) 86 ad/sc 13/ 20

S.F. 233 2015, is amended to read as follows: 1 b. The petition shall be filed in the district court of 2 the county in which the property is located. Service on the 3 owner and any other named respondents shall be by personal 4 service or certified mail and or, if service cannot be made by 5 either method, by posting the notice in a conspicuous place 6 on the building and by publication in a newspaper of general 7 circulation in the city . The action shall be in equity. 8 Sec. 33. Section 657A.10A, subsection 3, paragraphs d, f, 9 and j, Code 2015, are amended to read as follows: 10 d. Whether the building meets the city’s housing code for as 11 being fit for human habitation, occupancy, or use. 12 f. Whether the building is boarded up or otherwise secured 13 from unauthorized entry . 14 j. Past and current compliance with orders of the local 15 housing or building code official. 16 Sec. 34. Section 657A.10A, subsection 3, Code 2015, is 17 amended by adding the following new paragraphs: 18 NEW PARAGRAPH . 0e. Whether the building meets the city’s 19 building code as being fit for occupancy or use. 20 NEW PARAGRAPH . 0h. Whether those claiming an interest 21 in the property have, prior to the filing of the petition, 22 demonstrated a good-faith effort to restore the property to 23 productive use. 24 Sec. 35. Section 657A.10A, subsections 4 and 5, Code 2015, 25 are amended to read as follows: 26 4. In lieu of the considerations in subsection 3 , if the 27 city can establish to the court’s satisfaction that all parties 28 with an interest in the property have received proper notice 29 and either consented to the entry of an order awarding title 30 to the property to the city or did not make a good faith 31 good-faith effort to comply with the order of the local housing 32 or building code official within sixty days after the filing 33 of the petition, the court shall enter judgment against the 34 respondents granting the city title to the property. 35 -14- LSB 1213SV (3) 86 ad/sc 14/ 20

S.F. 233 5. If the court determines that the property has been 1 abandoned or that subsection 4 applies, the court shall enter 2 judgment and order awarding title to the city. The title 3 awarded to the city shall be free and clear of any claims, 4 liens, or encumbrances held by the respondents. 5 DIVISION VI 6 HOUSING ENTERPRISE TAX CREDIT 7 Sec. 36. 2014 Iowa Acts, chapter 1130, is amended by adding 8 the following new section: 9 NEW SECTION . SEC. 41A. Notwithstanding the section of 10 this Act repealing section 15E.193B, the economic development 11 authority may enter into an agreement and issue housing 12 enterprise tax credits to a housing business if all the 13 following conditions are met: 14 1. The city or county in which the enterprise zone is 15 located mailed, or caused to be mailed, the necessary program 16 application forms on or after June 1, 2014, and prior to July 17 1, 2014, but the applications were not received by the economic 18 development authority. The economic development authority may 19 accept an affidavit by a city to confirm timely mailing of the 20 application forms, notwithstanding section 622.105. 21 2. The application forms submitted pursuant to subsection 1 22 were approved by all necessary governing bodies and commissions 23 of the city or county as required by chapter 15E, division 24 XVIII, Code 2014. 25 3. The economic development authority determines the 26 housing business would otherwise be eligible under section 27 15E.193B, Code 2014. 28 4. The city or county and the eligible housing business meet 29 all other requirements of the housing enterprise tax credit 30 program under chapter 15E, division XVIII, Code 2014, and the 31 agreement to be entered into pursuant to this section. 32 Sec. 37. 2014 Iowa Acts, chapter 1130, section 43, 33 subsection 1, is amended to read as follows: 34 1. On or after the effective date of this division of this 35 -15- LSB 1213SV (3) 86 ad/sc 15/ 20

S.F. 233 Act, a city or county shall not create an enterprise zone under 1 chapter 15E, division XVIII, or enter into a new agreement or 2 amend an existing agreement under chapter 15E, division XVIII , 3 unless otherwise authorized in this Act . 4 Sec. 38. EFFECTIVE UPON ENACTMENT. This division of this 5 Act, being deemed of immediate importance, takes effect upon 6 enactment. 7 Sec. 39. RETROACTIVE APPLICABILITY. This division of this 8 Act applies retroactively to July 1, 2014. 9 EXPLANATION 10 The inclusion of this explanation does not constitute agreement with 11 the explanation’s substance by the members of the general assembly. 12 This bill relates to economic development by modifying life 13 cycle cost analysis provisions relating to public facilities, 14 specifying the state matching funds available for payment of 15 intern wages under the science, technology, engineering, and 16 mathematics internship program, modifying provisions related 17 to reinvestment districts and to flood mitigation projects, 18 modifying provisions concerning enterprise zones, and modifying 19 provisions and establishing a program relating to nuisance 20 property and abandoned buildings. 21 Division I of the bill modifies provisions relating to the 22 life cycle analysis required of certain public facilities. 23 The division adds a definition of “addition” and modifies the 24 definitions of “facility” and “renovation” and requires a 25 public agency responsible for the construction or renovation 26 of a facility or the construction of an addition to a facility 27 to include the performance of a life cycle cost analysis as 28 a design criterion on or after the effective date of the 29 division. The division requires a public agency or person 30 preparing a life cycle cost analysis for a public agency to 31 use methodology established, by rule, by the state building 32 code commissioner, rather than methods and analytical 33 models provided by the economic development authority. The 34 division requires the commissioner to also adopt rules for the 35 -16- LSB 1213SV (3) 86 ad/sc 16/ 20

S.F. 233 implementation and adoption of the life cycle cost analysis. 1 Division II of the bill amends language relating to wages 2 paid to an intern under the science, technology, engineering, 3 and mathematics internship program to specify that an Iowa 4 employer may receive financial assistance from the state on a 5 matching basis. The division provides that if the authority 6 offers financial assistance for a student at a small or 7 medium sized Iowa firm that is an innovative business or for 8 a science, technology, engineering, or mathematics student 9 working with an Iowa employer, for every $2 earned by the 10 student in wages, the employer’s payment of $1 shall be 11 matched by the authority with $1 on a reimbursement basis. 12 The division requires the authority to administer the two 13 components of the internship program in as similar a manner 14 as possible. The division authorizes the authority to adopt 15 emergency rules for this division of the bill. The division 16 takes effect upon enactment and applies retroactively to 17 contracts for financial assistance entered into on or after 18 July 1, 2014. 19 Division III of the bill relates to reinvestment districts 20 under Code chapter 15J and flood mitigation projects under 21 Code chapter 418. The division eliminates the prohibition on 22 the flood mitigation board approving an amendment on or after 23 July 1, 2018, to an existing district’s plan. The division 24 modifies the definition of “governmental entity” for purposes 25 of a flood mitigation project to include a joint board or other 26 legal or administrative entity formed by a Code chapter 28F 27 agreement entered into by one or more counties, one or more 28 cities at least partly within the counties, and one or more 29 Code chapter 358 sanitary districts or a combined water and 30 sanitary district established by Code chapter 357 or 358 and 31 located at least partly within the city or county. 32 The division provides that, for purposes of funding a 33 flood mitigation project, the sales tax increment area shall 34 not include any parcels that are included in a reinvestment 35 -17- LSB 1213SV (3) 86 ad/sc 17/ 20

S.F. 233 district established under Code chapter 15J. 1 The division provides that transfers of sales tax increment 2 revenue to a reinvestment district account shall be made 3 prior to transfer of sales tax increment revenue to a flood 4 mitigation project account. The division also provides that 5 from the amounts transferred to reinvestment district accounts 6 and flood mitigation project accounts the department of revenue 7 shall retain the lesser of $25,000 or the actual cost of 8 administering the specified transfers of sales tax increment 9 revenue quarterly as a repayment receipt. The bill provides 10 the process for the retention of the revenue. 11 The division is effective upon enactment. The division 12 applies retroactively to reinvestment districts designated 13 under Code chapter 15J in existence on or after July 1, 2014, 14 and flood mitigation project plan applications received before, 15 on, or after the effective date of the division. The sections 16 of the division amending Code section 423.2, regarding the 17 transfers of sales tax increment revenue to a reinvestment 18 district and to a flood mitigation project account as well as 19 the retention of repayment receipts, apply to transfers of 20 sales tax revenues made on or after July 1, 2015. 21 Division IV of the bill relates to enterprise zones. The 22 division allows a city or county and the economic development 23 authority for compliance reasons to amend agreements made under 24 the enterprise zone program as long as the amendments do not 25 increase the amount of incentives awarded and the economic 26 development authority board approves. 27 Division V of the bill relates to nuisance properties 28 and abandoned buildings. The division requires the economic 29 development authority to establish a nuisance property 30 remediation fund for the purpose of providing financial 31 assistance to cities for the remediation of nuisance 32 properties, abandoned buildings, and other structures. The 33 division provides that moneys in a fund established in the high 34 quality jobs program may be deposited in the nuisance property 35 -18- LSB 1213SV (3) 86 ad/sc 18/ 20