SF 499 (LSB 1019SV (2) 86)

SENATE FILE 499

BY  COMMITTEE ON APPROPRIATIONS BILL

(SUCCESSOR TO SSB 1281)

A BILL FOR

An Act making appropriations to the department of cultural affairs, the economic development authority, the Iowa finance authority, the public employment relations board, the department of workforce development, and the state board of regents and certain regents institutions, modifying programs and duties of the economic development authority, providing for other properly related matters, and including effective date and retroactive and other applicability provisions.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

DIVISION I
FY 2015-2016
    Section 1.  DEPARTMENT OF CULTURAL AFFAIRS.
   1.  There is appropriated from the general fund of the state to the department of cultural affairs for the fiscal year beginning July 1, 2015, and ending June 30, 2016, the following amounts, or so much thereof as is necessary, to be used for the purposes designated:
   a.  ADMINISTRATION

   For salaries, support, maintenance, and miscellaneous purposes, and for not more than the following full-time equivalent positions for the department:

.................................................. $    176,882
............................................... FTEs      74.50

   The department of cultural affairs shall coordinate activities with the tourism office of the economic development authority to promote attendance at the state historical building and at this state’s historic sites.

   Full-time equivalent positions authorized under this paragraph are funded, in full or in part, using moneys appropriated under this paragraph, paragraphs “c” through “g”, and paragraph “i”.

   b.  COMMUNITY CULTURAL GRANTS

   For planning and programming for the community cultural grants program established under section 303.3:

.................................................. $    172,090

   c.  HISTORICAL DIVISION

   For the support of the historical division:

.................................................. $  3,167,701

   d.  HISTORIC SITES

   For the administration and support of historic sites:

.................................................. $    426,398

   e.  ARTS DIVISION

   For the support of the arts division:

.................................................. $  1,233,764

   Of the moneys appropriated in this paragraph, the department shall allocate $300,000 for purposes of the film office.

   f.  IOWA GREAT PLACES

   For the Iowa great places program established under section 303.3C:

.................................................. $    150,000

   g.  ARCHIVE IOWA GOVERNORS’ RECORDS

   For archiving the records of Iowa governors:

.................................................. $     65,933

   h.  RECORDS CENTER RENT

   For payment of rent for the state records center:

.................................................. $    227,243

   i.  BATTLE FLAGS

   For continuation of the project recommended by the Iowa battle flag advisory committee to stabilize the condition of the battle flag collection:

.................................................. $     94,000

   2.  Notwithstanding section 8.33, moneys appropriated in this section that remain unencumbered or unobligated at the close of the fiscal year shall not revert but shall remain available for expenditure for the purposes designated until the close of the succeeding fiscal year.
    Sec. 2.  GOALS AND ACCOUNTABILITY —— ECONOMIC DEVELOPMENT.
   1.  For the fiscal year beginning July 1, 2015, the goals for the economic development authority shall be to expand and stimulate the state economy, increase the wealth of Iowans, and increase the population of the state.
   2.  To achieve the goals in subsection 1, the economic development authority shall do all of the following for the fiscal year beginning July 1, 2015:
   a.  Concentrate its efforts on programs and activities that result in commercially viable products and services.
   b.  Adopt practices and services consistent with free market, private sector philosophies.
   c.  Ensure economic growth and development throughout the state.
   d.  Work with businesses and communities to continually improve the economic development climate along with the economic well-being and quality of life for Iowans.
   e.  Coordinate with other state agencies to ensure that they are attentive to the needs of an entrepreneurial culture.
   f.  Establish a strong and aggressive marketing image to showcase Iowa’s workforce, existing industry, and potential. A priority shall be placed on recruiting new businesses, business expansion, and retaining existing Iowa businesses. Emphasis shall be placed on entrepreneurial development through helping entrepreneurs secure capital, and developing networks and a business climate conducive to entrepreneurs and small businesses.
   g.  Encourage the development of communities and quality of life to foster economic growth.
   h.  Prepare communities for future growth and development through development, expansion, and modernization of infrastructure.
   i.  Develop public-private partnerships with Iowa businesses in the tourism industry, Iowa tour groups, Iowa tourism organizations, and political subdivisions in this state to assist in the development of advertising efforts.
   j.  Develop, to the fullest extent possible, cooperative efforts for advertising with contributions from other sources.
    Sec. 3.  ECONOMIC DEVELOPMENT AUTHORITY.
   1.  APPROPRIATION
   a.  There is appropriated from the general fund of the state to the economic development authority for the fiscal year beginning July 1, 2015, and ending June 30, 2016, the following amount, or so much thereof as is necessary, to be used for the purposes designated in this subsection, and for not more than the following full-time equivalent positions:

.................................................. $ 15,766,372

............................................... FTEs     149.00

   b.  (1)  For salaries, support, miscellaneous purposes, programs, marketing, and the maintenance of an administration division, a business development division, a community development division, a small business development division, and other divisions the authority may organize.
   (2)  The full-time equivalent positions authorized under this section are funded, in whole or in part, by the moneys appropriated under this subsection or by other moneys received by the authority, including certain federal moneys.
   (3)  For business development operations and programs, international trade, export assistance, workforce recruitment, and the partner state program.
   (4)  For transfer to a fund created pursuant to section 15.313 for purposes of financing strategic infrastructure projects.
   (5)  For community economic development programs, tourism operations, community assistance, plans for Iowa green corps and summer youth programs, the mainstreet and rural mainstreet programs, the school-to-career program, the community development block grant, and housing and shelter-related programs.
   (6)  For achieving the goals and accountability, and fulfilling the requirements and duties required under this Act.
   c.  As a condition of receiving the appropriation under this subsection, the authority shall transfer $100,000 to the department of transportation for deposit in the Iowa employment rides fund created pursuant to section 324A.8 as enacted in this Act.
   d.  Notwithstanding section 8.33, moneys appropriated in this subsection that remain unencumbered or unobligated at the close of the fiscal year shall not revert but shall remain available for expenditure for the purposes designated in this subsection until the close of the succeeding fiscal year.
   2.  FINANCIAL ASSISTANCE RESTRICTIONS
   a.  A business creating jobs through moneys appropriated in subsection 1 shall be subject to contract provisions requiring new and retained jobs to be filled by individuals who are citizens of the United States who reside within the United States or any person authorized to work in the United States pursuant to federal law, including legal resident aliens in the United States.
   b.  Any vendor who receives moneys appropriated in subsection 1 shall adhere to such contract provisions and provide periodic assurances as the state shall require that the jobs are filled solely by citizens of the United States who reside within the United States or any person authorized to work in the United States pursuant to federal law, including legal resident aliens in the United States.
   c.  A business that receives financial assistance from the authority from moneys appropriated in subsection 1 shall only employ individuals legally authorized to work in this state. In addition to all other applicable penalties provided by current law, all or a portion of the assistance received by a business which is found to knowingly employ individuals not legally authorized to work in this state is subject to recapture by the authority.
   3.  USES OF APPROPRIATIONS
   a.  From the moneys appropriated in subsection 1, the authority may provide financial assistance in the form of a grant to a community economic development entity for conducting a local workforce recruitment effort designed to recruit former citizens of the state and former students at colleges and universities in the state to meet the needs of local employers.
   b.  From the moneys appropriated in subsection 1, the authority may provide financial assistance to early stage industry companies being established by women entrepreneurs.
   c.  From the moneys appropriated in subsection 1, the authority may provide financial assistance in the form of grants, loans, or forgivable loans for advanced research and commercialization projects involving value-added agriculture, advanced technology, or biotechnology.
   d.  The authority shall not use any moneys appropriated in subsection 1 for purposes of providing financial assistance for the Iowa green streets pilot project or for any other program or project that involves the installation of geothermal systems for melting snow and ice from streets or sidewalks.
   4.  WORLD FOOD PRIZE
   There is appropriated from the general fund of the state to the economic development authority for the fiscal year beginning July 1, 2015, and ending June 30, 2016, the following amount for the world food prize and in lieu of the standing appropriation in section 15.368, subsection 1:

.................................................. $    800,000

   5.  IOWA COMMISSION ON VOLUNTEER SERVICE
   There is appropriated from the general fund of the state to the economic development authority for the fiscal year beginning July 1, 2015, and ending June 30, 2016, the following amount for allocation to the Iowa commission on volunteer service for purposes of the Iowa state commission grant program, the Iowa’s promise and Iowa mentoring partnership programs, and for not more than the following full-time equivalent positions:

.................................................. $    228,133
............................................... FTEs       7.00

   Of the moneys appropriated in this subsection, the authority shall allocate $125,000 for purposes of the Iowa state commission grant program and $103,133 for purposes of the Iowa’s promise and Iowa mentoring partnership programs.
   Notwithstanding section 8.33, moneys appropriated in this subsection that remain unencumbered or unobligated at the close of the fiscal year shall not revert but shall remain available for expenditure for the purposes designated until the close of the succeeding fiscal year.

   6.  COUNCILS OF GOVERNMENTS —— ASSISTANCE

   There is appropriated from the general fund of the state to the economic development authority for the fiscal year beginning July 1, 2015, and ending June 30, 2016, the following amount to be used for the purposes of providing financial assistance to Iowa’s councils of governments:

.................................................. $    250,000

   7.  SCIENCE, TECHNOLOGY, ENGINEERING, AND MATHEMATICS INTERNSHIPS
   a.  There is appropriated from the general fund of the state to the Iowa economic development authority for the fiscal year beginning July 1, 2015, and ending June 30, 2016, the following amount, or so much thereof as is necessary, for the purposes designated:

   For the funding of internships for students studying in the fields of science, technology, engineering, and mathematics with eligible Iowa employers as provided in section 15.411, subsection 3, paragraph “c”:

.................................................. $  1,000,000

   b.  No more than 3 percent of the moneys appropriated in this subsection may be used by the authority for costs associated with administration of the internship program. 
   c.  Notwithstanding section 8.33, moneys appropriated in this subsection which remain unencumbered or unobligated at the end of the fiscal year shall not revert but shall remain available for expenditure for the purposes designated in subsequent fiscal years.
   8.  HOME BASE IOWA MARKETING

   There is appropriated from the general fund of the state to the economic development authority for the fiscal year beginning July 1, 2015, and ending June 30, 2016, the following amount to be used for the purposes of marketing to attract veterans to the state:

.................................................. $    500,000
    Sec. 4.  VISION IOWA PROGRAM —— FTE AUTHORIZATION.  For purposes of administrative duties associated with the vision Iowa program for the fiscal year beginning July 1, 2015, the economic development authority is authorized an additional 2.25 FTEs above those otherwise authorized in this division of this Act.
    Sec. 5.  INSURANCE ECONOMIC DEVELOPMENT.  From the moneys collected by the division of insurance in excess of the anticipated gross revenues under section 505.7, subsection 3, during the fiscal year beginning July 1, 2015, $200,000 shall be transferred to the economic development authority for insurance economic development and international insurance economic development.
    Sec. 6.  IOWA FINANCE AUTHORITY.
   1.  There is appropriated from the general fund of the state to the Iowa finance authority for the fiscal year beginning July 1, 2015, and ending June 30, 2016, the following amount, or so much thereof as is necessary, to be used to provide reimbursement for rent expenses to eligible persons under the rent subsidy program:

.................................................. $    658,000

   2.  Participation in the rent subsidy program shall be limited to only those persons who meet the requirements for the nursing facility level of care for home and community-based services waiver services as in effect on July 1, 2015, and to those individuals who are eligible for the federal money follows the person grant program under the medical assistance program. Of the moneys appropriated in this section, not more than $35,000 may be used for administrative costs.
    Sec. 7.  IOWA FINANCE AUTHORITY AUDIT.  The auditor of state is requested to review the audit of the Iowa finance authority performed by the auditor hired by the authority.
    Sec. 8.  PUBLIC EMPLOYMENT RELATIONS BOARD.
   1.  There is appropriated from the general fund of the state to the public employment relations board for the fiscal year beginning July 1, 2015, and ending June 30, 2016, the following amount, or so much thereof as is necessary, for the purposes designated:

   For salaries, support, maintenance, and miscellaneous purposes, and for not more than the following full-time equivalent positions:

.................................................. $  1,342,452
............................................... FTEs      10.00

   2.  Of the moneys appropriated in this section, the board shall allocate $15,000 for maintaining an internet site that allows searchable access to a database of collective bargaining information.
    Sec. 9.  DEPARTMENT OF WORKFORCE DEVELOPMENT.  There is appropriated from the general fund of the state to the department of workforce development for the fiscal year beginning July 1, 2015, and ending June 30, 2016, the following amounts, or so much thereof as is necessary, for the purposes designated:
   1.  DIVISION OF LABOR SERVICES
   a.  For the division of labor services, including salaries, support, maintenance, and miscellaneous purposes, and for not more than the following full-time equivalent positions:

.................................................. $  4,667,416
............................................... FTEs      68.00

   b.  From the contractor registration fees, the division of labor services shall reimburse the department of inspections and appeals for all costs associated with hearings under chapter 91C, relating to contractor registration.
   c.  Of the moneys appropriated under this subsection, the department shall allocate $175,000 for the purpose of employing additional investigators and support staff to investigate wage enforcement.
   2.  DIVISION OF WORKERS’ COMPENSATION
   a.  For the division of workers’ compensation, including salaries, support, maintenance, and miscellaneous purposes, and for not more than the following full-time equivalent positions:

.................................................. $  3,259,044
............................................... FTEs      30.00

   b.  The division of workers’ compensation shall charge a $100 filing fee for workers’ compensation cases. The filing fee shall be paid by the petitioner of a claim. However, the fee can be taxed as a cost and paid by the losing party, except in cases where it would impose an undue hardship or be unjust under the circumstances. The moneys generated by the filing fee allowed under this subsection are appropriated to the department of workforce development to be used for purposes of administering the division of workers’ compensation.
   3.  WORKFORCE DEVELOPMENT OPERATIONS
   a.  For the operation of field offices, the workforce development board, and for not more than the following full-time equivalent positions:

.................................................. $  9,179,413
............................................... FTEs     130.00

   b.  Of the moneys appropriated in paragraph “a” of this subsection, the department shall allocate $150,000 to the state library for the purpose of licensing an online resource which prepares persons to succeed in the workplace through programs which improve job skills and vocational test-taking abilities.
   c.  Of the moneys appropriated in paragraph “a” of this subsection, the department shall allocate at least $1,130,602 for the operation of the four satellite field offices located in Decorah, Fort Madison, Iowa City, and Webster City.
   4.  OFFENDER REENTRY PROGRAM
   a.  For the development and administration of an offender reentry program to provide offenders with employment skills, and for not more than the following full-time equivalent positions:

.................................................. $    358,464
............................................... FTEs       4.00

   b.  The department of workforce development shall partner with the department of corrections to provide staff within the correctional facilities to improve offenders’ abilities to find and retain productive employment.
   5.  NONREVERSION

   Notwithstanding section 8.33, moneys appropriated in this section that remain unencumbered or unobligated at the close of the fiscal year shall not revert but shall remain available for expenditure for the purposes designated until the close of the succeeding fiscal year.
    Sec. 10.  GENERAL FUND —— EMPLOYEE MISCLASSIFICATION PROGRAM.  There is appropriated from the general fund of the state to the department of workforce development for the fiscal year beginning July 1, 2015, and ending June 30, 2016, the following amount, or so much thereof as is necessary, to be used for the purposes designated:

   For enhancing efforts to investigate employers that misclassify workers and for not more than the following full-time equivalent positions:

.................................................. $    451,458
............................................... FTEs       8.10
    Sec. 11.  SPECIAL EMPLOYMENT SECURITY CONTINGENCY FUND.
   1.  There is appropriated from the special employment security contingency fund to the department of workforce development for the fiscal year beginning July 1, 2015, and ending June 30, 2016, the following amount, or so much thereof as is necessary, to be used for field offices:

.................................................. $  1,766,084

   2.  Any remaining additional penalty and interest revenue collected by the department of workforce development is appropriated to the department for the fiscal year beginning July 1, 2015, and ending June 30, 2016, to accomplish the mission of the department.
    Sec. 12.  UNEMPLOYMENT COMPENSATION RESERVE FUND —— FIELD OFFICES.  Notwithstanding section 96.9, subsection 8, paragraph “e”, there is appropriated from interest earned on the unemployment compensation reserve fund to the department of workforce development for the fiscal year beginning July 1, 2015, and ending June 30, 2016, the following amount, or so much thereof as is necessary, for the purposes designated:

   For the operation of satellite field offices:

.................................................. $    400,000
    Sec. 13.  VIRTUAL ACCESS WORKFORCE DEVELOPMENT OFFICES.  The department of workforce development shall require a unique identification login for all users of workforce development centers operated through electronic means.
    Sec. 14.  UNEMPLOYMENT COMPENSATION PROGRAM.  Notwithstanding section 96.9, subsection 4, paragraph “a”, moneys credited to the state by the secretary of the treasury of the United States pursuant to section 903 of the Social Security Act are appropriated to the department of workforce development and shall be used by the department for the administration of the unemployment compensation program only. This appropriation shall not apply to any fiscal year beginning after December 31, 2015.
    Sec. 15.  SMALL BUSINESS DEVELOPMENT CENTERS.  There is appropriated from the general fund of the state to Iowa state university of science and technology for the fiscal year beginning July 1, 2015, and ending June 30, 2016, the following amount, or so much thereof as is necessary, to be used for the purposes of funding small business development centers:

.................................................. $    101,000
    Sec. 16.  IOWA SKILLED WORKER AND JOB CREATION FUND.
   1.  There is appropriated from the Iowa skilled worker and job creation fund created in section 8.75 to the following departments, agencies, and institutions for the fiscal year beginning July 1, 2015, and ending June 30, 2016, the following amounts, or so much thereof as is necessary, to be used for the purposes designated:
   a.  ECONOMIC DEVELOPMENT AUTHORITY
   (1)  For the purposes of providing assistance under the high quality jobs program as described in section 15.335B:

.................................................. $ 16,900,000

   (2)  From the moneys appropriated in this lettered paragraph “a”, the economic development authority may use not more than $1,000,000 for purposes of providing infrastructure grants to mainstreet communities under the main street Iowa program.
   (3)  As a condition of receiving moneys appropriated in this lettered paragraph “a”, an entity shall testify upon the request of the joint appropriations subcommittee on economic development regarding the expenditure of such moneys.
   b.  STATE BOARD OF REGENTS AND REGENTS INSTITUTIONS
   (1)  STATE BOARD OF REGENTS. For capacity building infrastructure in areas related to technology commercialization, marketing and business development efforts in areas related to technology commercialization, entrepreneurship, and business growth, and infrastructure projects and programs needed to assist in implementation of activities under chapter 262B:

.................................................. $  3,000,000

   Of the moneys appropriated pursuant to this subparagraph (1), 35 percent shall be allocated for Iowa state university of science and technology, 35 percent shall be allocated for the university of Iowa, and 30 percent shall be allocated for the university of northern Iowa.

   (a)  The institutions shall provide a one-to-one match of additional moneys for the activities funded with moneys appropriated under this subparagraph (1).
   (b)  The state board of regents shall annually submit a report by January 15 to the governor, the general assembly, and the legislative services agency regarding the activities, projects, and programs funded with moneys appropriated under this subparagraph (1). The report shall be provided in an electronic format and shall include a list of metrics and criteria mutually agreed to in advance by the board of regents and the economic development authority. The metrics and criteria shall allow the governor’s office and the general assembly to quantify and evaluate the progress of the board of regents institutions with regard to their activities, projects, and programs in the areas of technology commercialization, entrepreneurship, regional development, and market research.
   (2)  IOWA STATE UNIVERSITY OF SCIENCE AND TECHNOLOGY. For small business development centers, the science and technology research park, and the center for industrial research and service, and for not more than the following full-time equivalent positions:

.................................................. $  2,424,302

............................................... FTEs      56.63

   (a)  Of the moneys appropriated in this subparagraph (2), Iowa state university of science and technology shall allocate at least $735,728 for purposes of funding small business development centers. Iowa state university of science and technology may allocate the appropriated moneys to the various small business development centers in any manner necessary to achieve the purposes of this subparagraph.
   (b)  Iowa state university of science and technology shall do all of the following:
   (i)  Direct expenditures for research toward projects that will provide economic stimulus for Iowa.
   (ii)  Provide emphasis to providing services to Iowa-based companies.
   (c)  It is the intent of the general assembly that the industrial incentive program focus on Iowa industrial sectors and seek contributions and in-kind donations from businesses, industrial foundations, and trade associations, and that moneys for the center for industrial research and service industrial incentive program shall be allocated only for projects which are matched by private sector moneys for directed contract research or for nondirected research. The match required of small businesses as defined in section 15.102, subsection 10, for directed contract research or for nondirected research shall be $1 for each $3 of state funds. The match required for other businesses for directed contract research or for nondirected research shall be $1 for each $1 of state funds. The match required of industrial foundations or trade associations shall be $1 for each $1 of state funds.

   Iowa state university of science and technology shall report annually to the joint appropriations subcommittee on economic development and the legislative services agency the total amount of private contributions, the proportion of contributions from small businesses and other businesses, and the proportion for directed contract research and nondirected research of benefit to Iowa businesses and industrial sectors.

   (3)  STATE UNIVERSITY OF IOWA. For the state university of Iowa research park and for the advanced drug development program at the Oakdale research park, including salaries, support, maintenance, equipment, and miscellaneous purposes, and for not more than the following full-time equivalent positions:

.................................................. $    209,279

............................................... FTEs       6.00

   The state university of Iowa shall do all of the following:

   (a)  Direct expenditures for research toward projects that will provide economic stimulus for Iowa.
   (b)  Provide emphasis to providing services to Iowa-based companies.
   (4)  STATE UNIVERSITY OF IOWA. For the purpose of implementing the entrepreneurship and economic growth initiative, and for not more than the following full-time equivalent positions:

.................................................. $  2,000,000

............................................... FTEs       9.75

   (5)  UNIVERSITY OF NORTHERN IOWA. For the metal casting institute, the MyEntreNet internet application, and the institute of decision making, including salaries, support, maintenance, and miscellaneous purposes, and for not more than the following full-time equivalent positions:

.................................................. $  1,066,419

............................................... FTEs       7.72

   (a)  Of the moneys appropriated pursuant to this subparagraph (5), the university of northern Iowa shall allocate at least $617,639 for purposes of support of entrepreneurs through the university’s regional business center and economic gardening program.
   (b)  The university of northern Iowa shall do all of the following:
   (i)  Direct expenditures for research toward projects that will provide economic stimulus for Iowa.
   (ii)  Provide emphasis to providing services to Iowa-based companies.
   (6)  As a condition of receiving moneys appropriated in this lettered paragraph “b”, an entity shall testify upon the request of the joint appropriations subcommittee on economic development regarding the expenditure of such moneys.
   c.  DEPARTMENT OF WORKFORCE DEVELOPMENT

   To develop a long-term sustained program to train unemployed and underemployed central Iowans with skills necessary to advance to higher-paying jobs with full benefits:

.................................................. $    100,000

   (1)  The department of workforce development shall begin a request for proposals process, issued for purposes of this lettered paragraph “c”, no later than September 1, 2015.
   (2)  As a condition of receiving moneys appropriated under this lettered paragraph “c”, an entity shall testify upon the request of the joint appropriations subcommittee on economic development regarding the expenditure of such moneys.
   2.  Notwithstanding section 8.33, moneys appropriated in this section of this Act that remain unencumbered or unobligated at the close of the fiscal year shall not revert but shall remain available for expenditure for the purposes designated until the close of the succeeding fiscal year.
    Sec. 17.  IOWA PRODUCTS.  As a condition of receiving an appropriation, any agency appropriated moneys pursuant to this division of this Act shall give first preference when purchasing a product to an Iowa product or a product produced from an Iowa-based business. Second preference shall be given to a United States product or a product produced from a business based in the United States.
    Sec. 18.  PERSONNEL SETTLEMENT AGREEMENT PAYMENTS.  As a condition made to any appropriation to the department of cultural affairs, the economic development authority, the Iowa finance authority, the public employment relations board, the department of workforce development, the state board of regents, Iowa state university of science and technology, the state university of Iowa, or the university of northern Iowa as provided in this division of this Act, moneys appropriated and any other moneys available for use by that entity under this division of this Act shall not be used for the payment of a personnel settlement agreement between that entity and a state employee that contains a confidentiality provision intended to prevent public disclosure of the agreement or any terms of the agreement.

DIVISION II
FY 2016-2017
    Sec. 19.  DEPARTMENT OF CULTURAL AFFAIRS.
   1.  There is appropriated from the general fund of the state to the department of cultural affairs for the fiscal year beginning July 1, 2016, and ending June 30, 2017, the following amounts, or so much thereof as is necessary, to be used for the purposes designated:
   a.  ADMINISTRATION

   For salaries, support, maintenance, and miscellaneous purposes, and for not more than the following full-time equivalent positions for the department:

.................................................. $     88,441
............................................... FTEs      74.50

   The department of cultural affairs shall coordinate activities with the tourism office of the economic development authority to promote attendance at the state historical building and at this state’s historic sites.

   Full-time equivalent positions authorized under this paragraph are funded, in full or in part, using moneys appropriated under this paragraph, paragraphs “c” through “g”, and paragraph “i”.

   b.  COMMUNITY CULTURAL GRANTS

   For planning and programming for the community cultural grants program established under section 303.3:

.................................................. $     86,045

   c.  HISTORICAL DIVISION

   For the support of the historical division:

.................................................. $  1,583,851

   d.  HISTORIC SITES

   For the administration and support of historic sites:

.................................................. $    213,199

   e.  ARTS DIVISION

   For the support of the arts division:

.................................................. $    616,882

   Of the moneys appropriated in this paragraph, the department shall allocate $300,000 for purposes of the film office.

   f.  IOWA GREAT PLACES

   For the Iowa great places program established under section 303.3C:

.................................................. $     75,000

   g.  ARCHIVE IOWA GOVERNORS’ RECORDS

   For archiving the records of Iowa governors:

.................................................. $     32,967

   h.  RECORDS CENTER RENT

   For payment of rent for the state records center:

.................................................. $    113,622

   i.  BATTLE FLAGS

   For continuation of the project recommended by the Iowa battle flag advisory committee to stabilize the condition of the battle flag collection:

.................................................. $     47,000

   2.  Notwithstanding section 8.33, moneys appropriated in this section that remain unencumbered or unobligated at the close of the fiscal year shall not revert but shall remain available for expenditure for the purposes designated until the close of the succeeding fiscal year.
    Sec. 20.  GOALS AND ACCOUNTABILITY —— ECONOMIC DEVELOPMENT.
   1.  For the fiscal year beginning July 1, 2016, the goals for the economic development authority shall be to expand and stimulate the state economy, increase the wealth of Iowans, and increase the population of the state.
   2.  To achieve the goals in subsection 1, the economic development authority shall do all of the following for the fiscal year beginning July 1, 2016:
   a.  Concentrate its efforts on programs and activities that result in commercially viable products and services.
   b.  Adopt practices and services consistent with free market, private sector philosophies.
   c.  Ensure economic growth and development throughout the state.
   d.  Work with businesses and communities to continually improve the economic development climate along with the economic well-being and quality of life for Iowans.
   e.  Coordinate with other state agencies to ensure that they are attentive to the needs of an entrepreneurial culture.
   f.  Establish a strong and aggressive marketing image to showcase Iowa’s workforce, existing industry, and potential. A priority shall be placed on recruiting new businesses, business expansion, and retaining existing Iowa businesses. Emphasis shall be placed on entrepreneurial development through helping entrepreneurs secure capital, and developing networks and a business climate conducive to entrepreneurs and small businesses.
   g.  Encourage the development of communities and quality of life to foster economic growth.
   h.  Prepare communities for future growth and development through development, expansion, and modernization of infrastructure.
   i.  Develop public-private partnerships with Iowa businesses in the tourism industry, Iowa tour groups, Iowa tourism organizations, and political subdivisions in this state to assist in the development of advertising efforts.
   j.  Develop, to the fullest extent possible, cooperative efforts for advertising with contributions from other sources.
    Sec. 21.  ECONOMIC DEVELOPMENT AUTHORITY.
   1.  APPROPRIATION
   a.  There is appropriated from the general fund of the state to the economic development authority for the fiscal year beginning July 1, 2016, and ending June 30, 2017, the following amount, or so much thereof as is necessary, to be used for the purposes designated in this subsection, and for not more than the following full-time equivalent positions:

.................................................. $  7,883,186

............................................... FTEs     149.00

   b.  (1)  For salaries, support, miscellaneous purposes, programs, marketing, and the maintenance of an administration division, a business development division, a community development division, a small business development division, and other divisions the authority may organize.
   (2)  The full-time equivalent positions authorized under this section are funded, in whole or in part, by the moneys appropriated under this subsection or by other moneys received by the authority, including certain federal moneys.
   (3)  For business development operations and programs, international trade, export assistance, workforce recruitment, and the partner state program.
   (4)  For transfer to a fund created pursuant to section 15.313 for purposes of financing strategic infrastructure projects.
   (5)  For community economic development programs, tourism operations, community assistance, plans for Iowa green corps and summer youth programs, the mainstreet and rural mainstreet programs, the school-to-career program, the community development block grant, and housing and shelter-related programs.
   (6)  For achieving the goals and accountability, and fulfilling the requirements and duties required under this Act.
   c.  As a condition of receiving the appropriation under this subsection, the authority shall transfer $100,000 to the department of transportation for deposit in the Iowa employment rides fund created pursuant to section 324A.8 as enacted in this Act.
   d.  Notwithstanding section 8.33, moneys appropriated in this subsection that remain unencumbered or unobligated at the close of the fiscal year shall not revert but shall remain available for expenditure for the purposes designated in this subsection until the close of the succeeding fiscal year.
   2.  FINANCIAL ASSISTANCE RESTRICTIONS
   a.  A business creating jobs through moneys appropriated in subsection 1 shall be subject to contract provisions requiring new and retained jobs to be filled by individuals who are citizens of the United States who reside within the United States or any person authorized to work in the United States pursuant to federal law, including legal resident aliens in the United States.
   b.  Any vendor who receives moneys appropriated in subsection 1 shall adhere to such contract provisions and provide periodic assurances as the state shall require that the jobs are filled solely by citizens of the United States who reside within the United States or any person authorized to work in the United States pursuant to federal law, including legal resident aliens in the United States.
   c.  A business that receives financial assistance from the authority from moneys appropriated in subsection 1 shall only employ individuals legally authorized to work in this state. In addition to all other applicable penalties provided by current law, all or a portion of the assistance received by a business which is found to knowingly employ individuals not legally authorized to work in this state is subject to recapture by the authority.
   3.  USES OF APPROPRIATIONS
   a.  From the moneys appropriated in subsection 1, the authority may provide financial assistance in the form of a grant to a community economic development entity for conducting a local workforce recruitment effort designed to recruit former citizens of the state and former students at colleges and universities in the state to meet the needs of local employers.
   b.  From the moneys appropriated in subsection 1, the authority may provide financial assistance to early stage industry companies being established by women entrepreneurs.
   c.  From the moneys appropriated in subsection 1, the authority may provide financial assistance in the form of grants, loans, or forgivable loans for advanced research and commercialization projects involving value-added agriculture, advanced technology, or biotechnology.
   d.  The authority shall not use any moneys appropriated in subsection 1 for purposes of providing financial assistance for the Iowa green streets pilot project or for any other program or project that involves the installation of geothermal systems for melting snow and ice from streets or sidewalks.
   4.  WORLD FOOD PRIZE
   There is appropriated from the general fund of the state to the economic development authority for the fiscal year beginning July 1, 2016, and ending June 30, 2017, the following amount for the world food prize and in lieu of the standing appropriation in section 15.368, subsection 1:

.................................................. $    400,000

   5.  IOWA COMMISSION ON VOLUNTEER SERVICE
   There is appropriated from the general fund of the state to the economic development authority for the fiscal year beginning July 1, 2016, and ending June 30, 2017, the following amount for allocation to the Iowa commission on volunteer service for purposes of the Iowa state commission grant program, the Iowa’s promise and Iowa mentoring partnership programs, and for not more than the following full-time equivalent positions:

.................................................. $    114,067
............................................... FTEs       7.00

   Of the moneys appropriated in this subsection, the authority shall allocate $62,500 for purposes of the Iowa state commission grant program and $51,567 for purposes of the Iowa’s promise and Iowa mentoring partnership programs.
   Notwithstanding section 8.33, moneys appropriated in this subsection that remain unencumbered or unobligated at the close of the fiscal year shall not revert but shall remain available for expenditure for the purposes designated until the close of the succeeding fiscal year.

   6.  COUNCILS OF GOVERNMENTS —— ASSISTANCE

   There is appropriated from the general fund of the state to the economic development authority for the fiscal year beginning July 1, 2016, and ending June 30, 2017, the following amount to be used for the purposes of providing financial assistance to Iowa’s councils of governments:

.................................................. $    125,000

   7.  SCIENCE, TECHNOLOGY, ENGINEERING, AND MATHEMATICS INTERNSHIPS
   a.  There is appropriated from the general fund of the state to the Iowa economic development authority for the fiscal year beginning July 1, 2016, and ending June 30, 2017, the following amount, or so much thereof as is necessary, for the purposes designated:

   For the funding of internships for students studying in the fields of science, technology, engineering, and mathematics with eligible Iowa employers as provided in section 15.411, subsection 3, paragraph “c”:

.................................................. $    500,000

   b.  No more than 3 percent of the moneys appropriated in this subsection may be used by the authority for costs associated with administration of the internship program.
   c.  Notwithstanding section 8.33, moneys appropriated in this subsection which remain unencumbered or unobligated at the end of the fiscal year shall not revert but shall remain available for expenditure for the purposes designated in subsequent fiscal years.
   8.  HOME BASE IOWA MARKETING

   There is appropriated from the general fund of the state to the economic development authority for the fiscal year beginning July 1, 2016, and ending June 30, 2017, the following amount to be used for the purposes of marketing to attract veterans to the state:

.................................................. $    250,000
    Sec. 22.  VISION IOWA PROGRAM —— FTE AUTHORIZATION.  For purposes of administrative duties associated with the vision Iowa program for the fiscal year beginning July 1, 2016, the economic development authority is authorized an additional 2.25 FTEs above those otherwise authorized in this division of this Act.
    Sec. 23.  INSURANCE ECONOMIC DEVELOPMENT.  From the moneys collected by the division of insurance in excess of the anticipated gross revenues under section 505.7, subsection 3, during the fiscal year beginning July 1, 2016, $100,000 shall be transferred to the economic development authority for insurance economic development and international insurance economic development.
    Sec. 24.  IOWA FINANCE AUTHORITY.
   1.  There is appropriated from the general fund of the state to the Iowa finance authority for the fiscal year beginning July 1, 2016, and ending June 30, 2017, the following amount, or so much thereof as is necessary, to be used to provide reimbursement for rent expenses to eligible persons under the rent subsidy program:

.................................................. $    329,000

   2.  Participation in the rent subsidy program shall be limited to only those persons who meet the requirements for the nursing facility level of care for home and community-based services waiver services as in effect on July 1, 2016, and to those individuals who are eligible for the federal money follows the person grant program under the medical assistance program. Of the moneys appropriated in this section, not more than $35,000 may be used for administrative costs.
    Sec. 25.  IOWA FINANCE AUTHORITY AUDIT.  The auditor of state is requested to review the audit of the Iowa finance authority performed by the auditor hired by the authority.
    Sec. 26.  PUBLIC EMPLOYMENT RELATIONS BOARD.
   1.  There is appropriated from the general fund of the state to the public employment relations board for the fiscal year beginning July 1, 2016, and ending June 30, 2017, the following amount, or so much thereof as is necessary, for the purposes designated:

   For salaries, support, maintenance, and miscellaneous purposes, and for not more than the following full-time equivalent positions:

.................................................. $    671,226
............................................... FTEs      10.00

   2.  Of the moneys appropriated in this section, the board shall allocate $15,000 for maintaining an internet site that allows searchable access to a database of collective bargaining information.
    Sec. 27.  DEPARTMENT OF WORKFORCE DEVELOPMENT.  There is appropriated from the general fund of the state to the department of workforce development for the fiscal year beginning July 1, 2016, and ending June 30, 2017, the following amounts, or so much thereof as is necessary, for the purposes designated:
   1.  DIVISION OF LABOR SERVICES
   a.  For the division of labor services, including salaries, support, maintenance, and miscellaneous purposes, and for not more than the following full-time equivalent positions:

.................................................. $  2,333,708
............................................... FTEs      68.00

   b.  From the contractor registration fees, the division of labor services shall reimburse the department of inspections and appeals for all costs associated with hearings under chapter 91C, relating to contractor registration.
   2.  DIVISION OF WORKERS’ COMPENSATION
   a.  For the division of workers’ compensation, including salaries, support, maintenance, and miscellaneous purposes, and for not more than the following full-time equivalent positions:

.................................................. $  1,629,522
............................................... FTEs      30.00

   b.  The division of workers’ compensation shall charge a $100 filing fee for workers’ compensation cases. The filing fee shall be paid by the petitioner of a claim. However, the fee can be taxed as a cost and paid by the losing party, except in cases where it would impose an undue hardship or be unjust under the circumstances. The moneys generated by the filing fee allowed under this subsection are appropriated to the department of workforce development to be used for purposes of administering the division of workers’ compensation.
   3.  WORKFORCE DEVELOPMENT OPERATIONS
   a.  For the operation of field offices, the workforce development board, and for not more than the following full-time equivalent positions:

.................................................. $  4,589,707
............................................... FTEs     130.00

   b.  Of the moneys appropriated in paragraph “a” of this subsection, the department shall allocate $150,000 to the state library for the purpose of licensing an online resource which prepares persons to succeed in the workplace through programs which improve job skills and vocational test-taking abilities.
   c.  Of the moneys appropriated in paragraph “a” of this subsection, the department shall allocate at least $1,130,602 for the operation of the four satellite field offices located in Decorah, Fort Madison, Iowa City, and Webster City.
   4.  OFFENDER REENTRY PROGRAM
   a.  For the development and administration of an offender reentry program to provide offenders with employment skills, and for not more than the following full-time equivalent positions:

.................................................. $    179,232
............................................... FTEs       4.00

   b.  The department of workforce development shall partner with the department of corrections to provide staff within the correctional facilities to improve offenders’ abilities to find and retain productive employment.
   5.  NONREVERSION

   Notwithstanding section 8.33, moneys appropriated in this section that remain unencumbered or unobligated at the close of the fiscal year shall not revert but shall remain available for expenditure for the purposes designated until the close of the succeeding fiscal year.
    Sec. 28.  GENERAL FUND —— EMPLOYEE MISCLASSIFICATION PROGRAM.  There is appropriated from the general fund of the state to the department of workforce development for the fiscal year beginning July 1, 2016, and ending June 30, 2017, the following amount, or so much thereof as is necessary, to be used for the purposes designated:

   For enhancing efforts to investigate employers that misclassify workers and for not more than the following full-time equivalent positions:

.................................................. $    225,729
............................................... FTEs       8.10
    Sec. 29.  SPECIAL EMPLOYMENT SECURITY CONTINGENCY FUND.
   1.  There is appropriated from the special employment security contingency fund to the department of workforce development for the fiscal year beginning July 1, 2016, and ending June 30, 2017, the following amount, or so much thereof as is necessary, to be used for field offices:

.................................................. $    883,042

   2.  Any remaining additional penalty and interest revenue collected by the department of workforce development is appropriated to the department for the fiscal year beginning July 1, 2016, and ending June 30, 2017, to accomplish the mission of the department.
    Sec. 30.  UNEMPLOYMENT COMPENSATION RESERVE FUND —— FIELD OFFICES.  Notwithstanding section 96.9, subsection 8, paragraph “e”, there is appropriated from interest earned on the unemployment compensation reserve fund to the department of workforce development for the fiscal year beginning July 1, 2016, and ending June 30, 2017, the following amount, or so much thereof as is necessary, for the purposes designated:

   For the operation of satellite field offices:

.................................................. $    200,000
    Sec. 31.  VIRTUAL ACCESS WORKFORCE DEVELOPMENT OFFICES.  The department of workforce development shall require a unique identification login for all users of workforce development centers operated through electronic means.
    Sec. 32.  UNEMPLOYMENT COMPENSATION PROGRAM.  Notwithstanding section 96.9, subsection 4, paragraph “a”, moneys credited to the state by the secretary of the treasury of the United States pursuant to section 903 of the Social Security Act are appropriated to the department of workforce development and shall be used by the department for the administration of the unemployment compensation program only. This appropriation shall not apply to any fiscal year beginning after December 31, 2016.
    Sec. 33.  SMALL BUSINESS DEVELOPMENT CENTERS.  There is appropriated from the general fund of the state to Iowa state university of science and technology for the fiscal year beginning July 1, 2016, and ending June 30, 2017, the following amount, or so much thereof as is necessary, to be used for the purposes of funding small business development centers:

.................................................. $     50,500
    Sec. 34.  IOWA SKILLED WORKER AND JOB CREATION FUND.
   1.  There is appropriated from the Iowa skilled worker and job creation fund created in section 8.75 to the following departments, agencies, and institutions for the fiscal year beginning July 1, 2016, and ending June 30, 2017, the following amounts, or so much thereof as is necessary, to be used for the purposes designated:
   a.  ECONOMIC DEVELOPMENT AUTHORITY
   (1)  For the purposes of providing assistance under the high quality jobs program as described in section 15.335B:

.................................................. $  8,450,000

   (2)  From the moneys appropriated in this lettered paragraph “a”, the economic development authority may use not more than $1,000,000 for purposes of providing infrastructure grants to mainstreet communities under the main street Iowa program.
   (3)  As a condition of receiving moneys appropriated in this lettered paragraph “a”, an entity shall testify upon the request of the joint appropriations subcommittee on economic development regarding the expenditure of such moneys.
   b.  STATE BOARD OF REGENTS AND REGENTS INSTITUTIONS
   (1)  STATE BOARD OF REGENTS. For capacity building infrastructure in areas related to technology commercialization, marketing and business development efforts in areas related to technology commercialization, entrepreneurship, and business growth, and infrastructure projects and programs needed to assist in implementation of activities under chapter 262B:

.................................................. $  1,500,000

   Of the moneys appropriated pursuant to this subparagraph (1), 35 percent shall be allocated for Iowa state university of science and technology, 35 percent shall be allocated for the university of Iowa, and 30 percent shall be allocated for the university of northern Iowa.

   (a)  The institutions shall provide a one-to-one match of additional moneys for the activities funded with moneys appropriated under this subparagraph (1).
   (b)  The state board of regents shall annually submit a report by January 15 to the governor, the general assembly, and the legislative services agency regarding the activities, projects, and programs funded with moneys appropriated under this subparagraph (1). The report shall be provided in an electronic format and shall include a list of metrics and criteria mutually agreed to in advance by the board of regents and the economic development authority. The metrics and criteria shall allow the governor’s office and the general assembly to quantify and evaluate the progress of the board of regents institutions with regard to their activities, projects, and programs in the areas of technology commercialization, entrepreneurship, regional development, and market research.
   (2)  IOWA STATE UNIVERSITY OF SCIENCE AND TECHNOLOGY. For small business development centers, the science and technology research park, and the center for industrial research and service, and for not more than the following full-time equivalent positions:

.................................................. $  1,212,151

............................................... FTEs      56.63

   (a)  Of the moneys appropriated in this subparagraph (2), Iowa state university of science and technology shall allocate at least $735,728 for purposes of funding small business development centers. Iowa state university of science and technology may allocate the appropriated moneys to the various small business development centers in any manner necessary to achieve the purposes of this subparagraph.
   (b)  Iowa state university of science and technology shall do all of the following:
   (i)  Direct expenditures for research toward projects that will provide economic stimulus for Iowa.
   (ii)  Provide emphasis to providing services to Iowa-based companies.
   (c)  It is the intent of the general assembly that the industrial incentive program focus on Iowa industrial sectors and seek contributions and in-kind donations from businesses, industrial foundations, and trade associations, and that moneys for the center for industrial research and service industrial incentive program shall be allocated only for projects which are matched by private sector moneys for directed contract research or for nondirected research. The match required of small businesses as defined in section 15.102, subsection 10, for directed contract research or for nondirected research shall be $1 for each $3 of state funds. The match required for other businesses for directed contract research or for nondirected research shall be $1 for each $1 of state funds. The match required of industrial foundations or trade associations shall be $1 for each $1 of state funds.

   Iowa state university of science and technology shall report annually to the joint appropriations subcommittee on economic development and the legislative services agency the total amount of private contributions, the proportion of contributions from small businesses and other businesses, and the proportion for directed contract research and nondirected research of benefit to Iowa businesses and industrial sectors.

   (3)  STATE UNIVERSITY OF IOWA. For the state university of Iowa research park and for the advanced drug development program at the Oakdale research park, including salaries, support, maintenance, equipment, and miscellaneous purposes, and for not more than the following full-time equivalent positions:

.................................................. $    104,640

............................................... FTEs       6.00

   The state university of Iowa shall do all of the following:

   (a)  Direct expenditures for research toward projects that will provide economic stimulus for Iowa.
   (b)  Provide emphasis to providing services to Iowa-based companies.
   (4)  STATE UNIVERSITY OF IOWA. For the purpose of implementing the entrepreneurship and economic growth initiative, and for not more than the following full-time equivalent positions:

.................................................. $  1,000,000

............................................... FTEs       9.75

   (5)  UNIVERSITY OF NORTHERN IOWA. For the metal casting institute, the MyEntreNet internet application, and the institute of decision making, including salaries, support, maintenance, and miscellaneous purposes, and for not more than the following full-time equivalent positions:

.................................................. $    533,210

............................................... FTEs       7.72

   (a)  Of the moneys appropriated pursuant to this subparagraph (5), the university of northern Iowa shall allocate at least $533,210 for purposes of support of entrepreneurs through the university’s regional business center and economic gardening program.
   (b)  The university of northern Iowa shall do all of the following:
   (i)  Direct expenditures for research toward projects that will provide economic stimulus for Iowa.
   (ii)  Provide emphasis to providing services to Iowa-based companies.
   (6)  As a condition of receiving moneys appropriated in this lettered paragraph “b”, an entity shall testify upon the request of the joint appropriations subcommittee on economic development regarding the expenditure of such moneys.
   c.  DEPARTMENT OF WORKFORCE DEVELOPMENT

   To develop a long-term sustained program to train unemployed and underemployed central Iowans with skills necessary to advance to higher-paying jobs with full benefits:

.................................................. $     50,000

   (1)  The department of workforce development shall begin a request for proposals process, issued for purposes of this lettered paragraph “c”, no later than September 1, 2016.
   (2)  As a condition of receiving moneys appropriated under this lettered paragraph “c”, an entity shall testify upon the request of the joint appropriations subcommittee on economic development regarding the expenditure of such moneys.
   2.  Notwithstanding section 8.33, moneys appropriated in this section of this Act that remain unencumbered or unobligated at the close of the fiscal year shall not revert but shall remain available for expenditure for the purposes designated until the close of the succeeding fiscal year.
    Sec. 35.  IOWA PRODUCTS.  As a condition of receiving an appropriation, any agency appropriated moneys pursuant to this division of this Act shall give first preference when purchasing a product to an Iowa product or a product produced from an Iowa-based business. Second preference shall be given to a United States product or a product produced from a business based in the United States.
    Sec. 36.  PERSONNEL SETTLEMENT AGREEMENT PAYMENTS.  As a condition made to any appropriation to the department of cultural affairs, the economic development authority, the Iowa finance authority, the public employment relations board, the department of workforce development, the state board of regents, Iowa state university of science and technology, the state university of Iowa, or the university of northern Iowa as provided in this division of this Act, moneys appropriated and any other moneys available for use by that entity under this division of this Act shall not be used for the payment of a personnel settlement agreement between that entity and a state employee that contains a confidentiality provision intended to prevent public disclosure of the agreement or any terms of the agreement.

DIVISION III
MISCELLANEOUS PROVISIONS —— EMPLOYMENT RIDES INITIATIVE
    Sec. 37.  NEW SECTION.  324A.8  Iowa employment rides initiative —— grant program —— fund.
   1.  As used in this section, unless the context otherwise requires “employment transportation” means an urban or rural program or service that provides an individual with transportation solely to or from a workplace, including but not limited to the following programs and services:
   a.  Expanding or sustaining existing transportation services or service hours.
   b.  Coordinating ride share services, including car pool or van pool services.
   c.  Shuttle services.
   2.  The Iowa employment rides initiative is established in the department to provide grants to public transit systems for programs and services that provide employment transportation to Iowans. 
   3.  The department shall award grants on a competitive basis. A grant shall not exceed one hundred fifty thousand dollars. A grant application shall contain a commitment from the public transit system of at least a dollar-for-dollar match of the grant funds awarded. Moneys charged to individuals receiving employment transportation services cannot be used as matching funds. Grants shall be used only for operational costs directly associated with providing employment transportation and shall not be used for capital expenditures or construction.
   4.  A public transit system may coordinate with other local, state, or federal governmental agencies and private nonprofit organizations in the administration of a program or service receiving a grant under the initiative and in expenditure of grant funds. 
   5.  The department shall, by January 1 each year, submit a report to the general assembly on the outcomes of the initiative, including the grant amount, the type of program or service receiving funds, and the number of individuals served for each grant awarded by the initiative. As a condition of having received a grant from the initiative, a public transit system shall provide the department with information on any program or service for which the public transit system is awarded a grant from the initiative.
   6.  The department shall adopt rules pursuant to chapter 17A to administer the initiative, including but not limited to an application process and grant award criteria.
   7.  a.  An Iowa employment rides fund is created in the state treasury under the control of the department. The fund shall consist of moneys appropriated to the department and any other moneys available to, obtained, or accepted by the department for placement in the fund.
   b.  Moneys in the fund are appropriated to the department and shall be used to provide grants under the Iowa employment rides initiative established in this section.
   c.  Moneys in the fund are not subject to section 8.33. Notwithstanding section 12C.7, subsection 2, interest or earnings on moneys in the fund shall be credited to the fund.

DIVISION IV
MISCELLANEOUS PROVISIONS ——

MERIT SYSTEM STATUS AND APPEALS
    Sec. 38.  Section 8A.412, subsection 11, Code 2015, is amended to read as follows:
   11.  Professional employees under the supervision of the attorney general, the state public defender, the secretary of state, the auditor of state, the treasurer of state, and the public employment relations board. However, employees of the consumer advocate division of the department of justice, other than the consumer advocate, and administrative law judges appointed or employed by the public employment relations board, are subject to the merit system.
    Sec. 39.  Section 8A.415, subsection 1, paragraph b, Code 2015, is amended to read as follows:
   b.  If not satisfied, the employee may, within thirty calendar days following the director’s response, file an appeal with the public employment relations board. The hearing shall be conducted in accordance with the rules of the public employment relations board and the Iowa administrative procedure Act, chapter 17A. Decisions rendered shall be based upon a standard of substantial compliance with this subchapter and the rules of the department. Decisions by the public employment relations board constitute final agency action.  However, if the employee is an administrative law judge appointed or employed by the public employment relations board, the employee’s appeal shall be heard by an administrative law judge employed by the administrative hearings division of the department of inspections and appeals in accordance with the provisions of section 10A.801, whose decision shall constitute final agency action.
    Sec. 40.  Section 8A.415, subsection 2, paragraph b, Code 2015, is amended to read as follows:
   b.  If not satisfied, the employee may, within thirty calendar days following the director’s response, file an appeal with the public employment relations board. The employee has the right to a hearing closed to the public, unless a public hearing is requested by the employee. The hearing shall otherwise be conducted in accordance with the rules of the public employment relations board and the Iowa administrative procedure Act, chapter 17A. If the public employment relations board finds that the action taken by the appointing authority was for political, religious, racial, national origin, sex, age, or other reasons not constituting just cause, the employee may be reinstated without loss of pay or benefits for the elapsed period, or the public employment relations board may provide other appropriate remedies. Decisions by the public employment relations board constitute final agency action.  However, if the employee is an administrative law judge appointed or employed by the public employment relations board, the employee’s appeal shall be heard by an administrative law judge employed by the administrative hearings division of the department of inspections and appeals in accordance with the provisions of section 10A.801, whose decision shall constitute final agency action.
    Sec. 41.  Section 10A.801, subsection 3, paragraph a, Code 2015, is amended to read as follows:
   a.  The department shall employ a sufficient number of administrative law judges to conduct proceedings for which agencies are required, by section 17A.11 or any other provision of law, to use an administrative law judge employed by the division. An administrative law judge employed by the division shall not perform duties inconsistent with the judge’s duties and responsibilities as an administrative law judge and shall be located in an office that is separated from the offices of the agencies for which that person acts as a presiding officer. Administrative The administrator and all administrative law judges shall be covered by the merit system provisions of chapter 8A, subchapter IV.
    Sec. 42.  Section 86.2, subsection 1, paragraphs a and b, Code 2015, are amended to read as follows:
   a.  Chief deputy workers’ compensation commissioners for whose acts the commissioner is responsible, who are exempt from who shall be appointed and serve pursuant to the merit system provisions of chapter 8A, subchapter IV, and who shall serve at the pleasure of the commissioner unless the commissioners are otherwise covered by a collective bargaining agreement.
   b.  Deputy workers’ compensation commissioners for whose acts the commissioner is responsible and who shall serve at the pleasure of the commissioner be appointed and serve pursuant to the merit system provisions of chapter 8A, subchapter IV, unless the commissioners are otherwise covered by a collective bargaining agreement.
    Sec. 43.  Section 96.6, subsection 3, paragraph b, Code 2015, is amended to read as follows:
   b.  Appeals from the initial determination shall be heard by an administrative law judge employed by the department who shall be covered by the merit system provisions of chapter 8A, subchapter IV, unless the administrative law judge is otherwise covered by a collective bargaining agreement. An administrative law judge’s decision may be appealed by any party to the employment appeal board created in section 10A.601. The decision of the appeal board is final agency action and an appeal of the decision shall be made directly to the district court.

DIVISION V
MISCELLANEOUS PROVISIONS —— ECONOMIC DEVELOPMENT AUTHORITY REDEVELOPMENT TAX CREDITS
    Sec. 44.  Section 15.293B, subsection 4, Code 2015, is amended to read as follows:
   4.  A registered project shall be completed within thirty months of the date the project was registered unless the authority, upon recommendation of the council and approval of the board, provides additional time to complete the project. A project shall not be provided more than twelve months of additional time. If the registered project is not completed within the time required, the project is not eligible to claim a tax credit provided in section 15.293A.
    Sec. 45.  EFFECTIVE UPON ENACTMENT.  This division of this Act, being deemed of immediate importance, takes effect upon enactment.
    Sec. 46.  RETROACTIVE APPLICABILITY.  The section of this division of this Act amending Code section 15.293B applies retroactively to qualifying redevelopment project agreements entered into on or after July 1, 2010, for which a request for a project extension is submitted to the economic development authority on or after January 1, 2015.

DIVISION VI
MISCELLANEOUS PROVISIONS —— FRANCHISE AGREEMENTS
    Sec. 47.  Section 537A.10, subsection 9, paragraph b, Code 2015, is amended to read as follows:
   b.  However, the publication by the franchisor of a list of approved suppliers of goods, supplies, inventories, or services, or the requirement that such goods, supplies, inventories, or services comply with customary and reasonable specifications and standards prescribed by the franchisor, does not constitute designation of a source. Additionally, the reasonable right of a franchisor to disapprove a supplier does not constitute a designation of source. This subsection does not apply to the principal goods, supplies, inventories, or services manufactured by the franchisor, except for motor oil that is labeled in accordance with the requirements of the American petroleum institute, or such goods, supplies, inventories, or services entitled to protection as a trade secret.

DIVISION VII
MISCELLANEOUS PROVISIONS —— REINVESTMENT DISTRICTS AND FLOOD MITIGATION
    Sec. 48.  Section 15J.4, subsection 3, paragraph a, Code 2015, is amended to read as follows:
   a.  The municipality shall submit a copy of the resolution, the proposed district plan, and all accompanying materials adopted pursuant to this section to the board for evaluation. The board shall not approve a proposed district plan or an amendment to an existing district’s plan on or after July 1, 2018.
    Sec. 49.  Section 28F.12, Code 2015, is amended to read as follows:
   28F.12  Additional powers of the entity.
   1.  If the entity is comprised solely of cities, counties, and sanitary districts established under chapter 358, or any combination thereof, the entity shall have in addition to all the powers enumerated in this chapter, the powers which that a county has with respect to solid waste disposal projects.
   2.  If the entity is comprised solely of cities, counties, and sanitary districts established under chapter 358, or any combination thereof, it is a governmental entity with respect to projects undertaken pursuant to chapter 418 and may exercise all of the powers of a governmental entity under that chapter in connection with the flood mitigation project. Unless otherwise provided in chapter 418, if undertaking a flood mitigation project as a governmental entity under chapter 418, the provisions of chapter 418 shall prevail over any conflicting provision in this chapter.
    Sec. 50.  Section 418.1, subsection 4, paragraph c, unnumbered paragraph 1, Code 2015, is amended to read as follows:

   A joint board or other legal or administrative entity established or designated in an agreement pursuant to chapter 28E or 28F between any of the following:
    Sec. 51.  Section 418.1, subsection 4, paragraph c, Code 2015, is amended by adding the following new subparagraph:
   NEW SUBPARAGRAPH.  (4)  One or more counties, one or more cities that are located in whole or in part within those counties, and one or more sanitary districts established under chapter 358 or a combined water and sanitary district as provided for in sections 357.1B and 358.1B, located in whole or in part within those counties.
    Sec. 52.  Section 418.4, subsection 1, paragraph b, Code 2015, is amended to read as follows:
   b.  A governmental entity as defined in section 418.1, subsection 4, paragraph “c”, shall have the power to construct, acquire, own, repair, improve, operate, and maintain a project, may sue and be sued, contract, and acquire and hold real and personal property, subject to the limitation in paragraph “c”, and shall have such other powers as may be included in the chapter 28E or 28F agreement. Such a governmental entity may contract with a city or the county participating in the chapter 28E agreement to perform any governmental service, activity, or undertaking that the city or county is authorized by law to perform, including but not limited to contracts for administrative services.
    Sec. 53.  Section 418.11, subsection 3, paragraph c, Code 2015, is amended to read as follows:
   c.  For projects approved for a governmental entity as defined in section 418.1, subsection 4, paragraph “c”, the area used to determine the sales tax increment shall include the incorporated areas of each participating city that is participating in the chapter 28E agreement, the unincorporated areas of the each participating county, and the area of any participating drainage district not otherwise included in the areas of the participating cities or county, and the area served by any sanitary district or combined water and sanitary district and not otherwise included in the areas of the participating cities or counties, as applicable.
    Sec. 54.  Section 418.11, subsection 3, Code 2015, is amended by adding the following new paragraph:
   NEW PARAGRAPH.  d.  For all projects, the area used to determine the sales tax increment shall not include any parcels of real property that are included in a reinvestment district designated pursuant to chapter 15J.
    Sec. 55.  Section 418.14, subsection 3, paragraph a, Code 2015, is amended to read as follows:
   a.  Except as otherwise provided in this section, bonds issued pursuant to this section shall not be subject to the provisions of any other law or charter relating to the authorization, issuance, or sale of bonds. Bonds issued under this section shall not limit or restrict the authority of a governmental entity as defined in section 418.1, subsection 4, paragraphs “a” and “b”, or a city, county, or drainage district, sanitary district, or combined water and sanitary district participating in a governmental entity as defined in section 418.1, subsection 4, paragraph “c”, to issue bonds for the project under other provisions of the Code.
    Sec. 56.  Section 418.14, subsection 4, paragraph b, Code 2015, is amended to read as follows:
   b.  If the moneys in the governmental entity’s flood project fund are insufficient to pay the governmental entity’s costs related to bonds, notes, or other obligations issued under this chapter, the amounts necessary to pay such costs may be levied and transferred for deposit in the governmental entity’s flood project fund from the debt service fund of the governmental entity or, if applicable, the debt service fund of a participating city or county for a governmental entity as defined in section 418.1, subsection 4, paragraph “c”, but only if and to the extent provided in the resolution authorizing the issuance of bonds and, if applicable, the chapter 28E or 28F agreement.
    Sec. 57.  Section 418.15, subsection 4, Code 2015, is amended to read as follows:
   4.  All property and improvements acquired by a governmental entity as defined in section 418.1, subsection 4, paragraph “c”, relating to a project shall be transferred to the county, city, or drainage district, sanitary district, or combined water and sanitary district designated in the chapter 28E or 28F agreement to receive such property and improvements. The county, city, or drainage district, sanitary district, or combined water and sanitary district to which such property or improvements are transferred shall, unless otherwise provided in the chapter 28E or 28F agreement, be solely responsible for the ongoing maintenance and support of such property and improvements.
    Sec. 58.  Section 423.2, subsection 11, paragraph b, Code 2015, is amended by adding the following new subparagraph:
   NEW SUBPARAGRAPH.  (05)  Beginning the first day of the calendar quarter beginning on the reinvestment district’s commencement date, subject to remittance limitations established by the economic development authority board pursuant to section 15J.4, subsection 3, transfer to a district account created in the state reinvestment district fund for each reinvestment district established under chapter 15J, the amount of new state sales tax revenue, determined in section 15J.5, subsection 1, paragraph “b”, in the district, that remains after the prior transfers required under this paragraph “b”. Such transfers shall cease pursuant to section 15J.8.
    Sec. 59.  Section 423.2, subsection 11, paragraph b, subparagraph (6), Code 2015, is amended by striking the subparagraph.
    Sec. 60.  Section 423.2, Code 2015, is amended by adding the following new subsection:
   NEW SUBSECTION.  11A.  Of the amount of sales tax revenue actually transferred per quarter pursuant to subsection 11, paragraph “b”, subparagraphs (05) and (5), the department shall retain an amount equal to the actual cost of administering the transfers under subsection 11, paragraph “b”, subparagraphs (05) and (5), or twenty-five thousand dollars, whichever is less. The amount retained by the department pursuant to this subsection shall be divided pro rata each quarter between the amounts that would have been transferred pursuant to subsection 11, paragraph “b”, subparagraphs (05) and (5), without the deduction made by operation of this subsection. Revenues retained by the department pursuant to this subsection shall be considered repayment receipts as defined in section 8.2.
    Sec. 61.  EFFECTIVE UPON ENACTMENT.  This division of this Act, being deemed of immediate importance, takes effect upon enactment.
    Sec. 62.  RETROACTIVE AND OTHER APPLICABILITY.
   1.  Except as provided in subsection 3, this division of this Act applies retroactively to reinvestment districts designated under chapter 15J in existence on or after July 1, 2014.
   2.  Except as provided in subsection 3, this division of this Act applies to flood mitigation project plan applications received under chapter 418 before, on, or after the effective date of this division of this Act.
   3.  The sections of this division of this Act amending section 423.2, subsection 11, and enacting section 423.2, subsection 11A, apply to transfers of sales tax revenues made on or after July 1, 2015.

DIVISION VIII
MISCELLANEOUS PROVISIONS —— NUISANCE PROPERTIES AND ABANDONED BUILDINGS
    Sec. 63.  Section 15.335B, subsection 2, paragraph a, Code 2015, is amended by adding the following new subparagraph:
   NEW SUBPARAGRAPH.  (8)  For deposit in the nuisance property remediation fund created pursuant to section 15.338.
    Sec. 64.  NEW SECTION.  15.338  Nuisance property remediation assistance —— fund.
   1.  a.  The economic development authority shall establish a nuisance property remediation fund pursuant to section 15.106A, subsection 1, paragraph “o”, for purposes of providing financial assistance to cities for the remediation of nuisance properties and abandoned buildings and other structures. The authority shall administer the fund in a manner designed to make funds annually available to cities for purposes of this section.
   b.  The authority may administer a fund established for purposes of this section as a revolving fund. The fund may consist of any moneys appropriated by the general assembly for purposes of this section and any other moneys that are lawfully available to the authority, including moneys transferred or deposited from other funds created pursuant to section 15.106A, subsection 1, paragraph “o”.
   c.  The authority shall use any moneys specifically appropriated for purposes of this section only for the purposes of this section. The authority may use all other moneys in the fund, including interest, earnings, recaptures, and repayments for purposes of this section or the authority may transfer the other moneys to other funds created pursuant to section 15.106A, subsection 1, paragraph “o”.
   d.  Notwithstanding section 8.33, moneys in the nuisance property remediation fund at the end of each fiscal year shall not revert to any other fund but shall remain in the fund for expenditure for subsequent fiscal years.
   e.  The authority may use not more than five percent of the moneys in the fund at the beginning of the fiscal year for purposes of administrative costs, finance, compliance, marketing, and program support.
   2.  The authority shall use moneys in the fund to provide financial assistance to cities for the remediation of nuisance properties and abandoned buildings and other structures. Such financial assistance may include grants, loans, forgivable loans, or other forms of financial assistance as necessary to effectuate the purposes of this section. The authority may provide financial assistance under this section using a competitive scoring process.
   3.  In providing financial assistance under this section, the authority may give priority to cities with severe blighted areas, widespread dilapidated housing stock, or high rates of low or moderate income residents.
   4.  The authority shall enter into an agreement with each city for the receipt of financial assistance under this section. The authority may negotiate the terms of the agreement.
   5.  In providing financial assistance under this section, the authority shall coordinate with a city to develop a plan for the use of funds that is consistent with the community development, housing, and economic development goals of the city. The terms of the agreement entered into pursuant to subsection 3 and the use of financial assistance provided under this section shall reflect the plan developed based on a city’s goals.
   6.  If a city receives financial assistance under this section, the amount of any lien created for costs related to remediation of the property, shall not include any moneys that the city received pursuant to this section to remediate the property.
   7.  The authority shall submit a report to the general assembly and the governor’s office on or before January 31, 2019, describing the results of the program implemented pursuant to this section and making recommendations for additional program changes.
    Sec. 65.  Section 657A.1, subsections 1 and 3, Code 2015, are amended to read as follows:
   1.  “Abandoned” or “abandonment” means that a building has remained vacant and has been in violation of the housing code or building code of the city in which the property is located or the housing code or building code applicable in the county in which the property is located if outside the limits of a city for a period of six consecutive months.
   3.  “Building” means a building or structure located in a city or outside the limits of a city in a county, which is used or intended to be used for commercial or industrial purposes or which is used or intended to be used for residential purposes, and includes a building or structure in which some floors may be used for retail stores, shops, salesrooms, markets, or similar commercial uses, or for offices, banks, civic administration activities, professional services, or similar business or civic uses, and other floors are used, designed, or intended to be used for residential purposes.
    Sec. 66.  Section 657A.10A, subsection 1, paragraph b, Code 2015, is amended to read as follows:
   b.  The petition shall be filed in the district court of the county in which the property is located. Service on the owner and any other named respondents shall be by personal service or certified mail and or, if service cannot be made by either method, by posting the notice in a conspicuous place on the building and by publication in a newspaper of general circulation in the city. The action shall be in equity.
    Sec. 67.  Section 657A.10A, subsection 3, paragraphs d, f, and j, Code 2015, are amended to read as follows:
   d.  Whether the building meets the city’s housing code for as being fit for human habitation, occupancy, or use.
   f.  Whether the building is boarded up or otherwise secured from unauthorized entry.
   j.  Past and current compliance with orders of the local housing or building code official.
    Sec. 68.  Section 657A.10A, subsection 3, Code 2015, is amended by adding the following new paragraphs:
   NEW PARAGRAPH.  0e.  Whether the building meets the city’s building code as being fit for occupancy or use.
   NEW PARAGRAPH.  0h.  Whether those claiming an interest in the property have, prior to the filing of the petition, demonstrated a good-faith effort to restore the property to productive use.
    Sec. 69.  Section 657A.10A, subsections 4 and 5, Code 2015, are amended to read as follows:
   4.  In lieu of the considerations in subsection 3, if the city can establish to the court’s satisfaction that all parties with an interest in the property have received proper notice and either consented to the entry of an order awarding title to the property to the city or did not make a good faith good-faith effort to comply with the order of the local housing or building code official within sixty days after the filing of the petition, the court shall enter judgment against the respondents granting the city title to the property.
   5.  If the court determines that the property has been abandoned or that subsection 4 applies, the court shall enter judgment and order awarding title to the city. The title awarded to the city shall be free and clear of any claims, liens, or encumbrances held by the respondents.
EXPLANATION
The inclusion of this explanation does not constitute agreement with

the explanation’s substance by the members of the general assembly.
   This bill makes appropriations and transfers from the general fund of the state and other funds to the department of cultural affairs, the economic development authority, the Iowa finance authority, the public employment relations board, the department of workforce development, the board of regents, the university of Iowa, the university of northern Iowa, and Iowa state university for the 2015-2016 fiscal year modifies the redevelopment tax credit, and provides for other related changes.
   DIVISION I —— FY 2015-2016. Division I of the bill relates to FY 2015-2016 appropriations and related changes. The division provides that the goals for the economic development authority shall be to expand and stimulate the state economy, increase the wealth of Iowans, and increase the population of the state.
   The division transfers moneys collected by the division of insurance in excess of the anticipated gross revenues to the economic development authority for purposes of insurance economic development and international insurance economic development.
   The division requests the auditor of state to review the audit of the Iowa finance authority performed by the auditor hired by the authority.
   The division appropriates moneys from the special employment security contingency fund to the department of workforce development for field offices.
   The division appropriates interest earned on the unemployment compensation reserve fund to the department of workforce development for the operation of field offices.
   The division requires the department of workforce development to require a unique identification login for all users of workforce development centers operated through electronic means.
   The division appropriates moneys from moneys credited to the state by the secretary of the treasury of the United States pursuant to the Social Security Act to the department of workforce development for the administration of the unemployment compensation program only.
   The division appropriates moneys from the Iowa skilled worker and job creation fund to the economic development authority and the board of regents and certain regents institutions.
   The division requires an agency receiving an appropriation pursuant to the division to impose certain purchasing preferences.
   The division prohibits an agency receiving an appropriation pursuant to the division from using moneys for the payment of a personnel settlement agreement between that entity and a state employee that contains a confidentiality provision.
   DIVISION II —— FY 2016-2017. Division II of the bill makes appropriations and transfers from the general fund of the state and other funds to the department of cultural affairs, the economic development authority, the Iowa finance authority, the public employment relations board, the department of workforce development, the board of regents, the university of Iowa, the university of northern Iowa, and Iowa state university for the 2016-2017 fiscal year at generally 50 percent of the amounts appropriated for the same purposes for the prior fiscal year.
   DIVISION III —— MISCELLANEOUS PROVISIONS —— EMPLOYMENT RIDES INITIATIVE. Division III of the bill establishes an Iowa employment rides initiative in the department of transportation to provide funds to public transit systems for programs and services that provide employment transportation to Iowans. The division defines “employment transportation” as an urban or rural program or service that provides an individual with transportation solely to or from a workplace, including but not limited to expanding or sustaining existing transportation services or service hours, coordinating ride share services, and shuttle services.
   The department of transportation shall award grants on a competitive basis. A grant cannot exceed $150,000. A grant application must contain a commitment from the public transit system of at least a dollar-for-dollar match of the grant funds awarded. Moneys charged to individuals receiving employment transportation services cannot be used as matching funds. The division requires a public transit system receiving a grant to use those moneys only for operational costs directly associated with providing employment transportation and prohibits the use of the moneys for capital expenditures or construction.
   The division permits the public transit system receiving a grant pursuant to the division to coordinate with other local, state, or federal governmental agencies and private nonprofit organizations in the administration of a program or service. The division requires a public transit system receiving a grant, as a condition of the grant, to provide the department of transportation with information on any program or service for which the public transit system is awarded a grant.
   The division requires the department of transportation to submit a report to the general assembly by January 1 of each year on the outcomes of the initiative.
   The division requires the department of transportation to adopt administrative rules to administer the initiative.
   The division creates an employment rides fund in the state treasury under the control of the department of transportation to be used to provide grants under the Iowa employment rides initiative.
   DIVISION IV —— MISCELLANEOUS PROVISIONS —— MERIT SYSTEM STATUS AND APPEALS. Division IV of the bill makes miscellaneous Code changes related to the merit system protection for administrative law judges in certain departments. The division amends Code section 8A.412 to provide that administrative law judges appointed or employed by the public employment relations board are subject to the merit system provision of Code chapter 8A. The division amends Code section 8A.415 to provide that if an employee subject to the merit system is an administrative law judge appointed or employed by the public employment relations board, the employee’s appeal concerning a grievance or discipline involving the employee shall be heard by an administrative law judge within the department of inspections and appeals rather than the public employment relations board, and the decision of the administrative law judge within the department of inspections and appeals constitutes the final agency action.
   The division provides that the administrator of the administrative hearings division of the department of inspections and appeals is covered by the merit system as provided in Code chapter 8A.
   The division states that the chief deputy workers’ compensation commissioners and deputy workers’ compensation commissioners shall be appointed and serve pursuant to the merit system provision of Code chapter 8A unless the commissioners are otherwise covered by a collective bargaining agreement. Currently, the chief deputy commissioners are exempt from the merit system and all chief deputy and deputy commissioners serve at the pleasure of the workers’ compensation commissioner.
   The division provides that an administrative law judge employed by the department of workforce development for unemployment compensation cases shall be covered by the merit system provisions of Code chapter 8A unless the judge is otherwise covered by a collective bargaining agreement.
   DIVISION V —— MISCELLANEOUS PROVISIONS —— ECONOMIC DEVELOPMENT AUTHORITY REDEVELOPMENT TAX CREDIT. Division V of the bill allows the economic development authority, upon recommendation of the brownfield redevelopment advisory council and approval of the economic development authority board, to extend the time for completion of a registered project receiving a redevelopment tax credit beyond the 30-month limit from the date the project was registered. The division eliminates a provision prohibiting a project from being provided more than 12 months of additional time beyond the 30-month limit to complete the project. The provisions in this division are effective upon enactment and apply retroactively to qualifying redevelopment project agreements entered into on or after July 1, 2010, for which a request for a project extension is submitted to the economic development authority on or after January 1, 2015. 
   DIVISION VI —— MISCELLANEOUS PROVISIONS —— FRANCHISE AGREEMENTS. Division VI of the bill relates to franchise agreements. The Code does not allow a franchisor to require a franchisee to purchase goods, supplies, inventories, or services exclusively from the franchisor or from a source of supply specifically designated by the franchisor where the goods, supplies, inventories, or services of comparable quality are available from sources other than those designated by the franchisor. The Code does, however, allow a franchisor to publish a list of approved supplies of goods, supplies, inventories, or services or require that such goods, supplies, inventories, or services comply with specifications and standards prescribed by the franchisor. The division adds that such specifications and standards must be customary and reasonable.
   The Code currently provides that this limitation on the sources of goods and services in franchise agreements does not apply to principal goods, supplies, inventories, or services manufactured by the franchisor. The division adds an exception to the limitation for motor oil that is labeled in accordance with the requirements of the American petroleum institute.
   DIVISION VII —— MISCELLANEOUS PROVISIONS —— REINVESTMENT DISTRICTS AND FLOOD MITIGATION. Division VII of the bill relates to reinvestment districts under Code chapter 15J and flood mitigation projects under Code chapter 418. The division eliminates the prohibition on the economic development authority board approving an amendment on or after July 1, 2018, to an existing district’s plan. The division modifies the definition of “governmental entity” for purposes of a flood mitigation project to include a joint board or other legal or administrative entity formed by a Code chapter 28F agreement entered into by one or more counties, one or more cities at least partly within the counties, and one or more Code chapter 358 sanitary districts or a combined water and sanitary district established by Code chapter 357 or 358 and located at least partly within the city or county.
   The division provides that, for purposes of funding a flood mitigation project, the sales tax increment area shall not include any parcels that are included in a reinvestment district established under Code chapter 15J.
   The division provides that transfers of sales tax increment revenue to a reinvestment district account shall be made prior to transfer of sales tax increment revenue to a flood mitigation project account. The division also provides that from the amounts transferred to reinvestment district accounts and flood mitigation project accounts the department of revenue shall retain the lesser of $25,000 or the actual cost of administering the specified transfers of sales tax increment revenue quarterly as a repayment receipt. The division provides the process for the retention of the revenue.
   The division is effective upon enactment. The division applies retroactively to reinvestment districts designated under Code chapter 15J in existence on or after July 1, 2014, and flood mitigation project plan applications received before, on, or after the effective date of the division. The sections of the division amending Code section 423.2, regarding the transfers of sales tax increment revenue to a reinvestment district and to a flood mitigation project account as well as the retention of repayment receipts, apply to transfers of sales tax revenues made on or after July 1, 2015.
   DIVISION VIII —— MISCELLANEOUS PROVISIONS —— NUISANCE PROPERTIES AND ABANDONED BUILDINGS. Division VIII of the bill relates to nuisance properties and abandoned buildings. The division requires the economic development authority to establish a nuisance property remediation fund for the purpose of providing financial assistance to cities for the remediation of nuisance properties, abandoned buildings, and other structures. The division provides that moneys in a fund established in the high quality jobs program may be deposited in the nuisance property remediation fund. The division allows the authority to operate the fund as a revolving fund and to use moneys in the fund for purposes of the program, or the authority may transfer the moneys to other funds it has created. However, the division states that the authority must use any money specifically appropriated for nuisance property remediation assistance for the program. Moneys in the fund consist of appropriations and any other moneys lawfully available to the authority. The authority may provide this assistance using a competitive scoring process. The division requires the authority to enter into an agreement with the city concerning the assistance. The division allows the authority to grant priority to cities with severe blighted areas, widespread dilapidated housing stock, or high rates of low and moderate income residents. The division provides that the amount of any lien created for costs related to remediation of a property does not include any moneys that the city received as financial assistance under the program. The division requires the authority to submit a report to the general assembly and the governor’s office on or before January 31, 2019, describing the results of the program and making recommendations for program changes.
   Division VIII also makes changes to the authority of cities and counties relating to certain abandoned or unsafe buildings. Code chapter 657A allows a city or county to take action to abate by rehabilitation a building used primarily for residential purposes that meets the statutory definition of “abandoned” or “public nuisance”, as those terms are defined by the Iowa Code. The costs associated with rehabilitating the building that remain unpaid by the owner create a mortgage lien against the property. In lieu of abatement through rehabilitation, Code section 657A.10A allows a city to file an action in district court to take title to an abandoned building. The court may award title to the petitioning city if the court finds that the building is abandoned, using factors established in statute, or if the city establishes that all interested parties received proper notice and the interested parties either consented to the title transfer or had taken no action to comply with local housing official orders within 60 days after the filing of the petition.
   The division amends the definition of “building” in Code section 657A.1 to include buildings used or intended to be used for commercial or industrial purposes and makes corresponding amendments to refer to the local building code or local housing code, as applicable.
   Currently, Code section 657A.10A requires that service of notice of the filing of the petition for title be made on interested parties by certified mail and by posting on the building. The division provides that service shall be by personal service or certified mail or, if service cannot be made by either method, by posting on the building and publication in a newspaper of general circulation in the city.
   The division also amends Code section 657A.10A to add to the listing of factors for the court to consider when determining whether property has been abandoned.