House Study Bill 193 - Introduced HOUSE FILE _____ BY (PROPOSED COMMITTEE ON ECONOMIC GROWTH BILL BY CHAIRPERSON SORENSEN) A BILL FOR An Act relating to matters under the purview of the economic 1 development authority and the Iowa finance authority, 2 including tax credit programs, the grow Iowa program and 3 related bonds, incentives for manufacturers to invest in 4 smart technologies, an energy infrastructure revolving loan 5 program, and making appropriations, and including effective 6 date and applicability provisions. 7 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 8 TLSB 2458YC (2) 89 ko/jh

H.F. _____ DIVISION I 1 INVESTMENTS IN QUALIFYING BUSINESSES AND EQUITY INVESTMENTS IN 2 INNOVATION FUNDS 3 Section 1. Section 15.119, subsection 2, paragraph d, Code 4 2021, is amended to read as follows: 5 d. (1) The tax credits for investments in qualifying 6 businesses issued pursuant to section 15E.43 and for equity 7 investments in an innovation fund pursuant to section 15E.52 . 8 In allocating tax credits pursuant to this subsection , the 9 authority shall allocate two an aggregate of ten million 10 dollars for purposes of this paragraph subparagraph , unless the 11 authority determines that the tax credits awarded will be less 12 than that amount. 13 (2) On or before June 30 of each fiscal year the authority 14 shall determine the amount of tax credits to be allocated 15 for the next fiscal year beginning July 1 to investments 16 in qualifying businesses and to equity investments in an 17 innovation fund under subparagraph (1). Any tax credits 18 allocated for purposes of subparagraph (1) and not awarded 19 in that fiscal year shall be reallocated to a purpose under 20 subparagraph (1) for the next fiscal year and shall not be 21 counted against the aggregate maximum of ten million dollars. 22 Sec. 2. Section 15.119, subsection 2, paragraph e, Code 23 2021, is amended by striking the paragraph. 24 Sec. 3. Section 15E.43, subsection 2, paragraphs b and c, 25 Code 2021, are amended to read as follows: 26 b. The maximum amount of a tax credit that may be issued 27 per calendar fiscal year to a natural person and the person’s 28 spouse or dependent shall not exceed one hundred thousand 29 dollars combined. For purposes of this paragraph, a tax 30 credit issued to a partnership, limited liability company, S 31 corporation, estate, or trust electing to have income taxed 32 directly to the individual shall be deemed to be issued to 33 the individual owners based upon the pro rata share of the 34 individual’s earnings from the entity. For purposes of this 35 -1- LSB 2458YC (2) 89 ko/jh 1/ 32

H.F. _____ paragraph, “dependent” has the same meaning as provided by the 1 Internal Revenue Code. 2 c. The maximum amount of tax credits that may be issued 3 per calendar fiscal year for equity investments in any one 4 qualifying business shall not exceed five hundred thousand 5 dollars. 6 Sec. 4. APPLICABILITY. The following applies to tax credits 7 allocated on or after the fiscal year beginning July 1, 2021, 8 and for each fiscal year thereafter: 9 The section of this division of this Act amending section 10 15.119, subsection 2, paragraph “d”. 11 Sec. 5. EFFECTIVE DATE. This division of this Act, being 12 deemed of immediate importance, takes effect upon enactment. 13 DIVISION II 14 GROW IOWA PROGRAM 15 Sec. 6. NEW SECTION . 15.221 Legislative findings and intent 16 —— purpose. 17 The general assembly finds the following: 18 1. That creating attractive places for people to live and 19 work includes developing regionally significant quality of life 20 projects that leverage local community assets. 21 2. That community placemaking projects and recreational 22 opportunities are vital components of Iowa’s workforce 23 attraction and retention strategy. 24 3. That all across the state, individual communities offer 25 something different that can be enhanced to appeal to the 26 current or future workforce in or near that community. 27 Sec. 7. NEW SECTION . 15.222 Definitions. 28 As used in this part, unless the context otherwise requires: 29 1. “Applicant” means a city, county, or nongovernmental 30 organization located in this state that submits a coordinated 31 application to the program. 32 2. “Coordinated application” means an application submitted 33 by an applicant that includes all of the following: 34 a. Input from all municipalities impacted by the proposed 35 -2- LSB 2458YC (2) 89 ko/jh 2/ 32

H.F. _____ project. 1 b. Input from a nongovernmental organization that supports 2 the proposed project. 3 c. A statement regarding coordination with local 4 stakeholders that have not provided input pursuant to paragraph 5 “a” or “b” . 6 3. “Financial assistance” means assistance provided only 7 from the funds, rights, and assets legally available to the 8 authority and includes but is not limited to assistance in 9 the form of grants, loans, forgivable loans, pledges, credit 10 enhancements, and financing instruments. 11 4. “Fund” means the grow Iowa fund created in section 12 15.226. 13 5. “Nonfinancial support” means the value of labor and 14 services, real and personal property donated for purposes of a 15 project, the use of real and personal property for purposes of 16 a project, and any other support as approved by the board. 17 6. “Nongovernmental organization” means a nonprofit economic 18 development organization or other nonprofit organization that 19 sponsors or supports community or tourism attractions and 20 activities. 21 7. “Program” means the grow Iowa program established in 22 section 15.223. 23 8. “Vertical infrastructure” means land acquisition and 24 construction, major renovation and major repair of buildings, 25 all appurtenant structures, utilities, site development, and 26 recreational trails. “Vertical infrastructure” does not include 27 routine and recurring maintenance, or operational expenses 28 or leasing of a building, appurtenant structure, or utility 29 without a lease-purchase agreement. 30 Sec. 8. NEW SECTION . 15.223 Grow Iowa program. 31 1. The board shall establish and the authority, subject 32 to direction and approval by the board, shall administer a 33 grow Iowa program to assist communities in the development 34 of regionally significant quality of life projects that 35 -3- LSB 2458YC (2) 89 ko/jh 3/ 32

H.F. _____ leverage local community assets in coordination with economic 1 development and workforce attraction and retention planning. 2 2. An applicant may submit a coordinated application to 3 the board for financial assistance for the applicant’s project 4 under the program. At a minimum, the coordinated application 5 shall include all of the following information: 6 a. The total capital investment for the project, 7 including the costs for construction, site acquisition, and 8 infrastructure improvement. 9 b. A description of the proposed financing including the 10 amount or percentage of local and private matching moneys to 11 be provided for the project, and of the community’s need for 12 financing through the program. 13 c. A description of the benefits to the community from the 14 project. 15 d. An analysis of the long-term, tax-generating impact of 16 the project. 17 e. A description of how the project meets other criteria 18 established in this part. 19 f. An analysis of the projected long-term economic viability 20 of the project, including projected revenues and expenses. 21 Sec. 9. NEW SECTION . 15.224 Program eligibility. 22 1. The aggregate cost of an applicant’s project must be at 23 least ten million dollars for an applicant to be eligible to 24 receive financial assistance under the program. An applicant, 25 or the board, may divide an applicant’s project into component 26 parts. The board may award financial assistance under the 27 program to one or more component parts of an applicant’s 28 project, rather than award financial assistance for the 29 applicant’s entire project. 30 2. An applicant shall demonstrate financial and 31 nonfinancial support for the applicant’s project, which may 32 be from public or private sources. Nonfinancial support must 33 not total more than twenty-five percent of the aggregate cost 34 of the project. The financial and nonfinancial support for 35 -4- LSB 2458YC (2) 89 ko/jh 4/ 32

H.F. _____ the applicant’s project shall equal at least fifty percent of 1 the aggregate cost of the project if the project is located 2 in a county with a population equal to or greater than fifty 3 thousand, and at least forty percent of the aggregate cost 4 of the project if the project is located in a county with a 5 population of less than fifty thousand. 6 3. For an applicant’s project to be eligible for a financial 7 assistance award, the project must satisfy all of the following 8 criteria: 9 a. The project must include vertical infrastructure that 10 comprises a substantial portion of the project and that has a 11 substantial regional or statewide economic impact. 12 b. The project must support or be strategically aligned 13 with existing regional or statewide cultural, recreational, 14 entertainment, economic development, or educational activities; 15 or with communities adjacent to cultural and entertainment 16 districts whose existing or planned amenity base will augment 17 or complement the cultural, entertainment, and quality of life 18 venues of the cultural and entertainment districts. 19 c. The project must increase the diversity of activities 20 available to individuals that reside or work in the state, 21 families, and tourists. 22 d. The project must enhance the potential for the successful 23 recruitment and retention of young people to reside and work 24 in the state. 25 e. There must be identifiable economic obstacles, or 26 other identifiable obstacles, impeding local financing of the 27 project. 28 f. The project must not compete with a different project 29 with a similar purpose that is located in the same region of 30 the state as the applicant’s project. 31 4. a. The board shall not approve a coordinated application 32 that seeks financial assistance under the program to refinance 33 any loan, or pay off any promissory note, that has been 34 executed prior to the date of submission of the coordinated 35 -5- LSB 2458YC (2) 89 ko/jh 5/ 32

H.F. _____ application. 1 b. The board shall not approve a coordinated application for 2 a project for which financial assistance has previously been 3 awarded under the program, unless the applicant can demonstrate 4 that any additional financial assistance approved by the board 5 will be used for a significant expansion of that project. 6 Sec. 10. NEW SECTION . 15.225 Coordinated applications —— 7 review. 8 1. Coordinated applications shall be submitted to the 9 authority. Coordinated applications that meet the eligibility 10 criteria shall be forwarded to the board by the authority. The 11 authority shall also forward to the board, and to the review 12 committee established under subsection 2, the authority’s 13 review and evaluation of all eligible coordinated applications. 14 2. The authority shall consider, in addition to other 15 criteria established in this part, all of the following when 16 reviewing a coordinated application to determine if a proposed 17 project is eligible for financial assistance: 18 a. Whether wages, benefits, including health benefits, 19 safety parameters, and other attributes of the project will 20 improve the quality of existing community, regional, or 21 statewide cultural, recreational, entertainment, educational, 22 or employment opportunities. 23 b. The extent to which the project will generate additional 24 community or regional attractions, and opportunities to 25 increase tourism to the community or region. 26 c. The potential for the project to produce a long-term, 27 tax-generating economic impact in excess of the financial 28 assistance proposed by the applicant. 29 d. The geographic diversity of the project in relation to 30 other proposed projects. 31 e. The investment in the project by the city, county, 32 region, or private funding sources. 33 f. Alternative funding sources available to the project. 34 g. The long-term economic viability of the project. 35 -6- LSB 2458YC (2) 89 ko/jh 6/ 32

H.F. _____ h. The extent to which the project has taken the following 1 planning principles into consideration: 2 (1) A community-driven development process that leverages 3 local assets to develop destinations that create a local 4 identity distinct to the community. 5 (2) Efficient and effective use of land resources and 6 existing infrastructure by encouraging development in areas 7 with existing infrastructure or capacity to avoid costly 8 duplication of services and costly use of land. 9 (3) Conservation of open space and farmland, and 10 preservation of critical environmental areas. 11 (4) Promotion of the livability, safety, and revitalization 12 of existing urban and rural communities. 13 (5) Maintenance of a unique sense of place by respecting 14 local cultural and natural environmental features. 15 (6) Mitigation of adverse impact to water quality or 16 improvements to water quality. 17 (7) Adaptability for access by different modes of 18 transportation and compatibility with changing patterns of 19 transportation. 20 (8) Adaptability of project for future changes. 21 (9) Creation of desirable destinations for living, working, 22 and recreation. 23 (10) Inclusive environments to encourage participation by a 24 diverse range of individuals, groups, and organizations. 25 i. The probability that the project will incorporate or 26 promote other priorities of the state including: 27 (1) Other economic development programs authorized under 28 this chapter. 29 (2) Accessibility, diversity, and inclusion by seeking 30 input for the project from a diverse stakeholder group. 31 (3) Creation or retention of jobs. 32 (4) Increased broadband connectivity. 33 (5) Improved water quality as outlined by the Iowa nutrient 34 reduction strategy as defined in section 455B.171. 35 -7- LSB 2458YC (2) 89 ko/jh 7/ 32

H.F. _____ (6) Development of new housing or renovation of existing 1 housing. 2 (7) Repurposing of commercial properties in excess of one 3 acre that include a significant component that is publicly 4 accessible for recreation and community activities. 5 3. A review committee shall review coordinated applications 6 forwarded by the authority and shall make a recommendation to 7 the board regarding whether a project proposed in a coordinated 8 application should be awarded financial assistance. The review 9 committee shall be composed of two members of the board, 10 two members of the enhance Iowa board established pursuant 11 to section 15F.102, and two members from the state at large 12 appointed by the director. 13 4. Upon the recommendations of the review committee, the 14 board shall approve, defer, or deny a coordinated application. 15 If a coordinated application is approved, the board shall enter 16 into an agreement with the applicant to provide financial 17 assistance authorized under the program. 18 Sec. 11. NEW SECTION . 15.226 Grow Iowa fund. 19 1. A grow Iowa fund is created and established as a separate 20 and distinct fund in the state treasury under the control of 21 the authority. The moneys in the fund are appropriated to the 22 board for purposes of the grow Iowa program established in 23 section 15.223. Moneys in the fund shall not be subject to 24 appropriation for any other purpose by the general assembly, 25 but shall be used only for purposes of the fund. The Iowa 26 finance authority shall act as custodian of the fund and shall 27 disburse moneys contained in the fund as directed by the board, 28 including automatic disbursements of funds received pursuant 29 to the terms of bond indentures and documents and security 30 provisions to trustees. The fund shall be administered by the 31 board which shall make expenditures from the fund consistent 32 with the purposes of the program without further appropriation. 33 An applicant shall not receive more than fifty million dollars 34 in financial assistance from the fund. 35 -8- LSB 2458YC (2) 89 ko/jh 8/ 32

H.F. _____ 2. Revenue for the fund shall include but is not limited to 1 the following, which shall be deposited with the treasurer of 2 state or the treasurer’s designee as provided by any bond or 3 security documents and credited to the fund: 4 a. The proceeds of bonds issued to capitalize and pay the 5 costs of the fund and investment earnings on the proceeds. 6 b. Interest attributable to investment of money in the fund 7 or an account of the fund. 8 c. Moneys in the form of a devise, gift, bequest, donation, 9 federal grant or other grant, reimbursement, repayment, 10 judgment, transfer, payment, or appropriation from any source 11 intended to be used for purposes of the fund. 12 3. Notwithstanding section 8.33, moneys appropriated in 13 this section that remain unencumbered or unobligated at the 14 close of the fiscal year shall not revert but shall remain 15 available for expenditure for the purposes designated until the 16 close of the succeeding fiscal year. 17 4. Notwithstanding section 12C.7, subsection 2, interest or 18 earnings on moneys in the fund shall be credited to the fund. 19 5. a. The Iowa finance authority may create and establish 20 one or more special funds, to be known as “bond reserve funds”, 21 to secure one or more issues of bonds or notes issued pursuant 22 to section 16.230. The Iowa finance authority shall pay 23 into each bond reserve fund any moneys appropriated and made 24 available by the state or by the Iowa finance authority for the 25 purpose of the fund, any proceeds of sale of notes or bonds 26 to the extent provided in the resolutions authorizing their 27 issuance, and any other moneys from any other sources which may 28 be available to the Iowa finance authority for the purpose of 29 the fund. All moneys held in a bond reserve fund, except as 30 otherwise provided in paragraph “b” , shall be used as required 31 solely for the payment of the principal of bonds secured in 32 whole or in part by the fund or of the sinking fund payments 33 with respect to the bonds, the purchase or redemption of the 34 bonds, the payment of interest on the bonds, or the payments 35 -9- LSB 2458YC (2) 89 ko/jh 9/ 32

H.F. _____ of any redemption premium required to be paid when the bonds 1 are redeemed prior to maturity. 2 b. Moneys in a bond reserve fund shall not be withdrawn from 3 the fund at any time in an amount that will reduce the amount 4 of the fund to less than the bond reserve fund requirement 5 established for the fund, as provided in this subsection, 6 except for the purpose of making, with respect to bonds secured 7 in whole or in part by the fund, payment when due of principal, 8 interest, redemption premiums, and the sinking fund payments 9 with respect to the bonds for the payment of which other moneys 10 of the Iowa finance authority are not available. Any income or 11 interest earned by, or incremental to, a bond reserve fund due 12 to the investment of that bond reserve fund may be transferred 13 by the Iowa finance authority to other funds or accounts to 14 the extent the transfer does not reduce the amount of the bond 15 reserve fund below its bond reserve fund requirement. 16 c. The Iowa finance authority shall not issue bonds, secured 17 in whole or in part by a bond reserve fund if, upon the issuance 18 of the bonds, the amount in the bond reserve fund will be less 19 than the bond reserve fund requirement for the fund, unless the 20 Iowa finance authority at the time of issuance of the bonds 21 deposits in the fund from the proceeds of the bonds issued or 22 from other sources an amount which, together with the amount 23 then in the fund, will not be less than the bond reserve fund 24 requirement for the fund. For the purposes of this subsection, 25 the term “bond reserve fund requirement” means, as of any 26 particular date of computation, an amount of money, as provided 27 in the resolutions authorizing the bonds with respect to which 28 the fund is established. 29 d. To assure the continued solvency of any bonds secured in 30 whole or in part by the bond reserve fund, provision is made in 31 paragraph “c” for the accumulation in each bond reserve fund 32 of an amount equal to the bond reserve fund requirement for 33 the fund. To further assure maintenance of the bond reserve 34 funds, the Iowa finance authority shall annually, on or before 35 -10- LSB 2458YC (2) 89 ko/jh 10/ 32

H.F. _____ January 1, make and deliver to the governor the treasurer’s 1 certificate stating the sum, if any, required to restore each 2 bond reserve fund to the bond reserve fund requirement for that 3 fund. Within thirty calendar days after commencement of the 4 next session of the general assembly immediately following 5 delivery of the certificate, the governor shall submit to both 6 chambers of the general assembly a printed copy of a budget 7 including the sum, if any, required to restore each bond 8 reserve fund to the bond reserve fund requirement for that 9 fund. Any sums appropriated by the general assembly and paid 10 to the Iowa finance authority pursuant to this subsection shall 11 be deposited by the Iowa finance authority in the applicable 12 bond reserve fund. 13 Sec. 12. NEW SECTION . 16.230 General and specific bonding 14 powers —— grow Iowa program. 15 1. For purposes of this part, “economic development 16 authority board” means the members of the economic development 17 authority appointed by the governor and in whom the powers of 18 the authority are vested pursuant to section 15.105, subsection 19 1, paragraph “a” . 20 2. The authority may issue bonds upon the request of the 21 economic development authority board and the authority shall 22 have all powers necessary to issue and secure bonds and to 23 carry out the purposes of the grow Iowa fund created in section 24 15.226. The authority may issue bonds in principal amounts 25 which, in the opinion of the economic development authority 26 board, are necessary to provide sufficient funds for the 27 grow Iowa fund, the payment of interest on the bonds, the 28 establishment of reserves to secure the bonds, the costs of 29 issuance of the bonds, other expenditures of the authority 30 incident to and necessary or convenient to carry out the 31 bond issue for the fund, and all other expenditures of the 32 economic development authority board necessary or convenient to 33 administer the fund; provided, however, excluding the issuance 34 of refunding bonds, bonds issued pursuant to this section 35 -11- LSB 2458YC (2) 89 ko/jh 11/ 32

H.F. _____ shall not be issued in an aggregate principal amount which 1 exceeds one hundred million dollars. The bonds are investment 2 securities and negotiable instruments within the meaning of and 3 for purposes of the uniform commercial code, chapter 554. 4 3. Bonds issued under this section are payable solely 5 and only out of the moneys, assets, or revenues of the grow 6 Iowa fund and any bond reserve funds established pursuant to 7 section 15.226, all of which may be deposited with trustees 8 or depositories in accordance with bond or security documents 9 and pledged by the economic development authority board to the 10 payment thereof. Bonds issued under this section shall contain 11 on their face a statement that the bonds do not constitute an 12 indebtedness of the state. The authority shall not pledge 13 the credit or taxing power of this state or any political 14 subdivision of this state or make bonds issued pursuant to this 15 section payable out of any moneys except those in the grow Iowa 16 fund. 17 4. The proceeds of bonds issued by the authority and not 18 required for immediate disbursement may be deposited with a 19 trustee or depository as provided in the bond documents and 20 invested or reinvested in any investment as directed by the 21 economic development authority board and specified in the trust 22 indenture, resolution, or other instrument pursuant to which 23 the bonds are issued without regard to any limitation otherwise 24 provided by law. 25 5. The bonds shall be: 26 a. In a form, issued in denominations, executed in a manner, 27 and payable over terms and with rights of redemption, and be 28 subject to such other terms and conditions as prescribed in the 29 trust indenture, resolution, or other instrument authorizing 30 their issuance. 31 b. Negotiable instruments under the laws of the state and 32 may be sold at prices, at public or private sale, and in a 33 manner, as prescribed by the authority. Chapters 73A, 74, 74A, 34 and 75 shall not apply to the sale or issuance of the bonds. 35 -12- LSB 2458YC (2) 89 ko/jh 12/ 32

H.F. _____ c. Subject to the terms, conditions, and covenants providing 1 for the payment of the principal, redemption premiums, if 2 any, interest, and other terms, conditions, covenants, and 3 protective provisions safeguarding payment, not inconsistent 4 with this section and as determined by the trust indenture, 5 resolution, or other instrument authorizing their issuance. 6 6. The bonds are securities in which public officers and 7 bodies of this state; political subdivisions of this state; 8 insurance companies and associations and other persons engaged 9 in the business of insurance; banks, trust companies, savings 10 associations, and investment companies; administrators, 11 guardians, executors, trustees, and other fiduciaries; 12 and other persons authorized to invest in bonds or other 13 obligations of the state, may properly and legally invest 14 funds, including capital, in their control or belonging to 15 them. 16 7. Bonds must be authorized by a trust indenture, 17 resolution, or other instrument of the authority approved by 18 the economic development authority board. However, a trust 19 indenture, resolution, or other instrument authorizing the 20 issuance of bonds may delegate to an officer of the economic 21 development authority board the power to negotiate and fix the 22 details of an issue of bonds. 23 8. A resolution, trust agreement, or any other instrument 24 by which a pledge is created shall not need to be recorded or 25 filed under the Iowa uniform commercial code, chapter 554, to 26 be valid, binding, or effective. 27 9. Bonds issued under this section are declared to be issued 28 for a general public and governmental purpose and all bonds 29 issued under this section shall be exempt from taxation by the 30 state of Iowa and the interest on the bonds shall be exempt 31 from the state income tax and the state inheritance tax. 32 10. Subject to the terms of any bond documents, moneys in 33 the grow Iowa fund may be expended for administration expenses. 34 11. The authority may issue bonds for the purpose of 35 -13- LSB 2458YC (2) 89 ko/jh 13/ 32

H.F. _____ refunding any outstanding bonds or notes issued pursuant 1 to this section, including the payment of any redemption 2 premiums thereon and any interest accrued or to accrue to the 3 date of redemption of the outstanding bonds or notes. Until 4 the proceeds of bonds issued for the purpose of refunding 5 outstanding bonds or notes are applied to the purchase or 6 retirement of outstanding bonds or notes or the redemption 7 of outstanding bonds or notes, the proceeds may be placed in 8 escrow and be invested and reinvested in accordance with the 9 provisions of this section. The interest, income, and profits 10 earned or realized on an investment may also be applied to the 11 payment of the outstanding bonds or notes to be refunded by 12 purchase, retirement, or redemption. After the terms of the 13 escrow have been fully satisfied and carried out, any balance 14 of proceeds and interest earned or realized on the investments 15 may be returned to the economic development authority board 16 for deposit in the grow Iowa fund. All refunding bonds shall 17 be issued and secured and subject to the provisions of this 18 chapter in the same manner and to the same extent as other 19 bonds issued pursuant to this section. 20 Sec. 13. NEW SECTION . 16.231 Pledges. 21 It is the intention of the general assembly that a pledge 22 made in respect of bonds or notes shall be valid and binding 23 from the time the pledge is made, that the money or property 24 so pledged and received after the pledge by the authority 25 shall immediately be subject to the lien of the pledge without 26 physical delivery or further act, and that the lien of the 27 pledge shall be valid and binding as against all parties having 28 claims of any kind in tort, contract, or otherwise against the 29 authority whether or not the parties have notice of the lien. 30 Sec. 14. NEW SECTION . 16.232 Projects. 31 The economic development authority board may undertake 32 a project for two or more applicants jointly, or for any 33 combination of applicants, and may combine for financing 34 purposes, with the consent of all of the applicants involved, 35 -14- LSB 2458YC (2) 89 ko/jh 14/ 32

H.F. _____ the project and some or all future projects of any applicant, 1 and sections 15.226 and 16.230 through 16.234, apply to, and 2 for, the benefit of the economic development authority board 3 and the joint applicants. The money set aside in a fund or 4 funds pledged for any series or issue of bonds or notes, 5 however, shall be held for the sole benefit of the series or 6 issue separate and apart from money pledged for another series 7 or issue of bonds or notes of the authority. To facilitate 8 the combining of projects, bonds or notes may be issued in 9 series under one or more resolutions or trust agreements and 10 may be fully open-ended, providing for the unlimited issuance 11 of additional series, or partially open-ended, limited as 12 to additional series. For the purposes of this section, 13 “applicant” means the same as defined in section 15.222. 14 Sec. 15. NEW SECTION . 16.233 Limitations. 15 Bonds or notes issued pursuant to section 16.230 shall not 16 be debts of the state, nor of any political subdivision of 17 the state, and shall not constitute a pledge of the faith and 18 credit of the state or constitute a charge against the general 19 credit or general fund of the state. The issuance of any bonds 20 or notes pursuant to section 16.230 by the authority shall not 21 directly, indirectly, or contingently obligate the state or a 22 political subdivision of the state to apply moneys from, or 23 to levy or pledge any form of taxation to, the payment of the 24 bonds or notes. 25 Sec. 16. NEW SECTION . 16.234 Construction. 26 Being necessary for the welfare of this state and its 27 inhabitants, sections 16.230 through 16.233 shall be liberally 28 construed to effect the purposes of those sections. 29 Sec. 17. Section 422.7, subsection 2, Code 2021, is amended 30 by adding the following new paragraph: 31 NEW PARAGRAPH . v. Grow Iowa program bonds pursuant to 32 section 16.230. 33 DIVISION III 34 COMMUNITY ATTRACTION AND TOURISM 35 -15- LSB 2458YC (2) 89 ko/jh 15/ 32

H.F. _____ Sec. 18. Section 12.72, subsection 1, Code 2021, is amended 1 to read as follows: 2 1. A vision Iowa fund is created and established as a 3 separate and distinct fund in the state treasury. The moneys 4 in the fund are appropriated to the enhance Iowa board for 5 purposes of the vision Iowa program established in section 6 15F.302 , Code 2021 . Moneys in the fund shall not be subject to 7 appropriation for any other purpose by the general assembly, 8 but shall be used only for the purposes of the vision Iowa 9 fund. The treasurer of state shall act as custodian of the 10 fund and disburse moneys contained in the fund as directed 11 by the enhance Iowa board, including automatic disbursements 12 of funds received pursuant to the terms of bond indentures 13 and documents and security provisions to trustees. The fund 14 shall be administered by the enhance Iowa board which shall 15 make expenditures from the fund consistent with the purposes 16 of the vision Iowa program without further appropriation. An 17 applicant under the vision Iowa program shall not receive more 18 than seventy-five million dollars in financial assistance from 19 the fund. 20 Sec. 19. Section 12.73, Code 2021, is amended to read as 21 follows: 22 12.73 Vision Iowa fund moneys —— administrative costs. 23 During the term of the vision Iowa program established in 24 section 15F.302 , Code 2021, two hundred thousand dollars of the 25 moneys deposited each fiscal year in the vision Iowa fund and 26 appropriated for the vision Iowa program shall be allocated 27 each fiscal year to the economic development authority for 28 administrative costs incurred by the authority for purposes of 29 administering the vision Iowa program. 30 Sec. 20. Section 12.75, subsection 2, Code 2021, is amended 31 to read as follows: 32 2. For purposes of this section , “applicant” means a city or 33 county or public organization applying for financial assistance 34 under the vision Iowa program established in section 15F.302 , 35 -16- LSB 2458YC (2) 89 ko/jh 16/ 32

H.F. _____ Code 2021 . 1 Sec. 21. Section 15F.102, subsection 6, Code 2021, is 2 amended to read as follows: 3 6. Each voting member of the board shall serve on at least 4 one of the three review committees referred to in sections 5 15F.203 , 15F.304 , Code 2021, and 15F.402 . 6 Sec. 22. Section 15F.103, subsections 2 and 3, Code 2021, 7 are amended to read as follows: 8 2. Establish the vision grow Iowa program and the community 9 attraction and tourism program. 10 3. Oversee and provide approval of the administration of 11 the vision grow Iowa program and the community attraction and 12 tourism program by the authority. 13 Sec. 23. Section 15F.106, Code 2021, is amended to read as 14 follows: 15 15F.106 Benefits. 16 Any applicant awarded financial assistance by the board 17 under both the vision Iowa program established in section 18 15F.302 and the community attraction and tourism program 19 established in section 15F.202 shall provide and pay at least 20 fifty percent of the cost of a standard medical insurance plan 21 for all full-time employees working at the project after the 22 completion of the project for which financial assistance was 23 received. 24 Sec. 24. Section 15F.206, subsection 1, Code 2021, is 25 amended to read as follows: 26 1. Applications for assistance for river enhancement 27 community attraction and tourism projects shall be submitted 28 to the authority. For those applications that meet the 29 eligibility criteria, the authority shall provide a staff 30 review analysis and evaluation to the vision Iowa program 31 review committee referred to in section 15F.304, subsection 2 , 32 and the board. 33 Sec. 25. Section 292.2, subsection 9, Code 2021, is amended 34 by striking the subsection. 35 -17- LSB 2458YC (2) 89 ko/jh 17/ 32

H.F. _____ Sec. 26. REPEAL. Sections 15F.301, 15F.302, 15F.303, and 1 15F.304, Code 2021, are repealed. 2 Sec. 27. APPLICABILITY. The section of this division 3 of this Act amending section 15F.106 applies to financial 4 assistance awarded to an applicant by the enhance Iowa board 5 under the community attraction and tourism program on or after 6 July 1, 2021. 7 DIVISION IV 8 STATEWIDE TOURISM MARKETING CAMPAIGN FUNDING 9 Sec. 28. Section 123.17, Code 2021, is amended by adding the 10 following new subsection: 11 NEW SUBSECTION . 6A. After any transfers provided for 12 in subsections 3, 5, and 6, the department of commerce shall 13 transfer to the economic development authority from the beer 14 and liquor control fund and before any other transfer to the 15 general fund, an amount not to exceed five million dollars 16 annually for a statewide tourism marketing campaign under 17 section 15.108, subsection 5. 18 DIVISION V 19 MANUFACTURING 4.0 20 Sec. 29. NEW SECTION . 15.371 Manufacturing 4.0 technology 21 investment program. 22 1. This section shall be known as and may be cited as the 23 “Manufacturing 4.0 Technology Investment Program” . 24 2. For purposes of this section unless the context otherwise 25 requires: 26 a. “Financial assistance” means the same as defined in 27 section 15.102. 28 b. “Manufacturing 4.0 technology investments” means projects 29 that are intended to lead to the adoption of, and integration 30 of, smart technologies into existing manufacturing operations 31 located in the state by mitigating the risk to the manufacturer 32 of significant technology investments. 33 3. a. A manufacturing 4.0 technology investment fund 34 is created within the state treasury under the control of 35 -18- LSB 2458YC (2) 89 ko/jh 18/ 32

H.F. _____ the authority for the purpose of financing manufacturing 4.0 1 technology investments as described in this section. 2 b. The fund may be administered as a revolving fund and 3 may consist of any moneys appropriated by the general assembly 4 for purposes of this section and any other moneys that are 5 lawfully available to the authority. Any moneys appropriated 6 to the fund shall be used for purposes of the manufacturing 7 4.0 technology investment program. The authority may use all 8 other moneys in the fund, including interest, earnings, and 9 recaptures, for purposes of this section. 10 c. Notwithstanding section 8.33, moneys appropriated in this 11 section that remain unencumbered or unobligated at the close of 12 the fiscal year shall not revert but shall remain available for 13 expenditure for the purposes designated until the close of the 14 succeeding fiscal year. 15 d. Notwithstanding any law to the contrary, the authority 16 may transfer any unobligated and unencumbered moneys in the 17 fund, except for moneys appropriated for purposes of this 18 section, to any fund created pursuant to section 15.106A, 19 subsection 1, paragraph “o” . 20 4. The authority shall establish and administer a 21 manufacturing 4.0 technology investment program and shall use 22 moneys in the fund to award financial assistance to eligible 23 manufacturers for manufacturing 4.0 technology investments. 24 5. The authority shall establish by rule a manufacturing 25 4.0 review committee that shall review each application 26 received by the authority for the program, and that shall make 27 recommendations to the board regarding all of the following: 28 a. The completeness of the application. 29 b. Whether the board should approve or deny an application. 30 c. If an application is approved, the type and amount of 31 financial assistance to be awarded to the applicant. 32 6. The authority shall adopt rules pursuant to chapter 17A 33 necessary to implement and administer this section. 34 Sec. 30. NEW SECTION . 15.372 Additional first-year 35 -19- LSB 2458YC (2) 89 ko/jh 19/ 32