SF 75 (LSB 1553SS (5) 88)

SENATE FILE 75

BY  WHITING

A BILL FOR

An Act relating to grants for new remote workers who relocate to this state and who are employed by an out-of-state employer and creating and making appropriations to the new remote worker grant fund.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  NEW SECTION.  15.221  New remote worker grant program.
   1.  a.  The economic development authority shall, pursuant to section 15.106A, subsection 1, paragraph “o”, establish a new remote worker grant fund for the purpose of providing grants to new remote workers pursuant to this section.
   b.  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.
   d.  Notwithstanding section 8.33, moneys remaining in the fund at the end of each fiscal year shall not revert to any fund and shall remain in the fund.
   e.  There is appropriated from the general fund of the state to the new remote worker grant fund for the new remote worker grant program the following amounts:
   (1)  For the fiscal year beginning July 1, 2019, seven hundred fifty thousand dollars.
   (2)  For the fiscal year beginning July 1, 2020, three hundred fifty thousand dollars.
   (3)  For the fiscal year beginning July 1, 2021, four hundred thousand dollars.
   (4)  For the fiscal year beginning July 1, 2022, four hundred fifty thousand dollars.
   (5)  For the fiscal year beginning July 1, 2023, five hundred thousand dollars.
   2.  As used in this section, unless the context otherwise requires:
   a.  “Coworking space” means a shared office space in which individuals that are not employed by the same organization work independently or collaboratively.
   b.  “New remote worker” means an individual who meets all of the following requirements:
   (1)  Is a full-time employee, as defined by the employer, of a business that is domiciled or has its primary place of business outside of this state.
   (2)  Performs the majority of the worker’s duties for the business remotely from a home office or a coworking space located in this state.
   (3)  Becomes a full-time resident of this state on or after January 1, 2020.
   c.  “Qualifying remote worker expenses” means actual, substantiated costs that a new remote worker incurs for any of the following that are necessary to perform the remote worker’s employment duties and that are not reimbursed by the employer:
   (1)  Relocation to this state.
   (2)  Computer software and hardware.
   (3)  Broadband access or upgrade.
   (4)  Membership in a coworking space or a similar space.
   3.  A new remote worker shall be eligible for a grant under this program for qualifying remote worker expenses in an amount not to exceed five thousand dollars per calendar year for a maximum of two calendar years.
   4.  Subject to funding, the authority shall award grants under this program on a first-come, first-served basis, with the following limitations on total grants:
   a.  Not to exceed seven hundred fifty thousand dollars in calendar year 2020.
   b.  Not to exceed three hundred fifty thousand dollars in calendar year 2021.
   c.  Not to exceed four hundred thousand dollars in calendar year 2022.
   d.  Not to exceed four hundred fifty thousand dollars in calendar year 2023.
   e.  Not to exceed five hundred thousand dollars in calendar year 2024.
   f.  To the extent funds remain available, not to exceed two hundred thousand dollars in any subsequent calendar year.
   5.  The authority shall adopt rules pursuant to chapter 17A to implement and administer this section.
   6.  The authority shall submit a report to the general assembly and the governor’s office each year that moneys are appropriated to the fund established in this section that provides the total number of grants awarded, the amount of each grant, the state where each grantee’s employer is located, the city and county in this state to which each grantee relocated, whether the new remote worker works out of the person’s home or a coworking space, and if applicable, the city and county in which the coworking space is located. The report shall be submitted by January 31 of each year for the prior calendar year.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   This bill relates to grants for new remote workers who relocate to this state and who are employed by an out-of-state employer and creates and makes appropriations to the new remote worker grant fund.
   The bill defines “new remote worker” as an individual who is a full-time employee of a business that is domiciled or has its primary place of business outside of this state, who performs the majority of the person’s duties for the business remotely from a home office or a coworking space located in this state, and who becomes a full-time resident of this state on or after January 1, 2020.
   Under the bill, a new remote worker is eligible for a grant for qualifying remote worker expenses in an amount not to exceed $5,000 per calendar year. A new remote worker is eligible for a grant for a maximum of two calendar years. “Qualifying remote worker expenses” is defined in the bill as actual, substantiated costs that a new remote worker incurs for relocation to this state, computer software and hardware, broadband access or upgrade, and membership in a coworking space. The expenses must be necessary to perform the remote worker’s employment duties and cannot also be reimbursed by the employer. “Coworking space” is defined in the bill.
   The bill requires the authority to establish a new remote worker grant fund for the purpose of providing grants to new remote workers. There is appropriated from the general fund of the state to the remote worker grant fund for the new remote worker grant program $750,000 for the fiscal year beginning July 1, 2019, $350,000 for the fiscal year beginning July 1, 2020, $400,000 for the fiscal year beginning July 1, 2021, $450,000 for the fiscal year beginning July 1, 2022, and $500,000 for the fiscal year beginning July 1, 2023. Notwithstanding Code section 8.33, moneys remaining in the fund at the end of each fiscal year shall not revert to any fund and shall remain in the fund.
   Subject to funding, the authority is required by the bill to award grants on a first-come, first-served basis, not exceeding total grants of $750,000 in calendar year 2020, $350,000 in calendar year 2021, $400,000 in calendar year 2022, $450,000 in calendar year 2023, and $500,000 in calendar year 2024. To the extent funds remain available in subsequent calendar years, total grants cannot exceed $200,000 in any calendar year. 
   The bill requires the Iowa economic development authority to adopt rules to implement and administer the requirements of the bill.
   The authority must submit a report to the general assembly and the governor’s office each year that moneys are appropriated to the fund providing details related to the grants and grantees. The report is due by January 31 of every year for the immediately preceding calendar year.