House Study Bill 540 - Introduced SENATE/HOUSE FILE _____ BY (PROPOSED ECONOMIC DEVELOPMENT AUTHORITY BILL) A BILL FOR An Act related to matters under the purview of the economic 1 development authority including the high quality jobs 2 program, the Iowa energy center, and the workforce housing 3 tax incentive program. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 5 TLSB 5319XD (5) 89 ko/jh

S.F. _____ H.F. _____ Section 1. Section 15.108, subsection 9, paragraph g, Code 1 2022, is amended to read as follows: 2 g. Administer the Iowa energy center established in section 3 15.120 . This paragraph “g” is repealed July 1, 2022 2027 . 4 Sec. 2. Section 15.120, subsection 1, Code 2022, is amended 5 by adding the following new paragraph: 6 NEW PARAGRAPH . h. To support research and development of 7 strategies for carbon management. 8 Sec. 3. Section 15.120, subsection 5, Code 2022, is amended 9 to read as follows: 10 5. This section is repealed July 1, 2022 2027 . 11 Sec. 4. Section 15.335C, subsection 2, Code 2022, is amended 12 to read as follows: 13 2. For purposes of this section , “economically distressed 14 area” means a county that ranks among the bottom thirty-three of 15 all Iowa counties, as measured by one meets at least three of 16 the following criteria : 17 a. Average The county ranks among the thirty-three Iowa 18 counties with the highest average monthly unemployment level 19 rates for the most recent twelve-month period based on the 20 applicable local area unemployment statistics produced by the 21 United States department of labor, bureau of labor statistics . 22 b. Average The county ranks among the thirty-three Iowa 23 counties with the highest average annualized unemployment 24 level rates for the most recent five-year period based on the 25 applicable local area unemployment statistics produced by the 26 United States department of labor, bureau of labor statistics . 27 c. The county ranks among the thirty-three Iowa counties 28 with the lowest annual average weekly wages based on the most 29 recent quarterly census of employment and wages published 30 by the United States department of labor, bureau of labor 31 statistics. 32 d. The county ranks among the thirty-three Iowa counties 33 with the highest family poverty rates based on the most recent 34 American community survey five-year estimate released by the 35 -1- LSB 5319XD (5) 89 ko/jh 1/ 4

S.F. _____ H.F. _____ United States census bureau. 1 e. The county ranks among the thirty-three Iowa counties 2 with the highest percentage population loss. Percentage 3 population loss shall be calculated by comparing the most 4 recent population estimate produced by the United States 5 census bureau to the most recent decennial census released 6 by the United States census bureau, except for a calendar 7 year in which the decennial census data is released, then the 8 percentage population loss shall be calculated by comparing the 9 population in the decennial census released that calendar year 10 to the population in decennial census released ten years prior. 11 f. The county ranks among the thirty-three Iowa counties 12 with the highest percentage of persons sixty-five years of age 13 or older based on the most recent American community survey 14 released by the United States census bureau. 15 Sec. 5. Section 15.335C, Code 2022, is amended by adding the 16 following new subsection: 17 NEW SUBSECTION . 3. The authority may designate a county 18 that does not meet at least three of the criteria in subsection 19 2 as an economically distressed area under this section if 20 a business located in the county experiences a layoff or a 21 closure that has a significant impact on a community within the 22 county. The authority shall adopt rules to establish a process 23 for designating a county an economically distressed area under 24 this subsection. 25 Sec. 6. Section 15.354, subsection 3, paragraph c, 26 subparagraph (2), Code 2022, is amended to read as follows: 27 (2) The authority may for good cause within the discretion 28 of the authority extend a housing project’s completion 29 deadline once by up to twelve months upon application by 30 the housing business, which application shall be made prior 31 to the expiration of the three-year completion deadline in 32 subparagraph (1) in the manner and form prescribed by the 33 authority . The authority may approve a second extension of 34 up to twelve months if prior to the expiration of the first 35 -2- LSB 5319XD (5) 89 ko/jh 2/ 4

S.F. _____ H.F. _____ twelve-month extension the housing business applies and 1 substantiates to the satisfaction of the authority that the 2 second extension is warranted due to extenuating circumstances 3 outside the control of the housing business. An application 4 by a housing business shall be made in the manner and form 5 prescribed by the authority by rule. 6 EXPLANATION 7 The inclusion of this explanation does not constitute agreement with 8 the explanation’s substance by the members of the general assembly. 9 This bill relates to matters under the purview of the 10 economic development authority (authority) including the high 11 quality jobs program, the Iowa energy center, and the workforce 12 housing tax incentive program. 13 Under current law, Code section 15.120, which establishes 14 the Iowa energy center, is repealed on July 1, 2022. The bill 15 extends the date to 2027. The bill requires the Iowa energy 16 center to support research and development of strategies for 17 carbon management. 18 Under current law, for purposes of the high quality jobs 19 program, a county is qualified as an economically distressed 20 area if the county ranks among the bottom 33 of all Iowa 21 counties, as measured by either the monthly unemployment level 22 for the most recent 12-month period, or the average annualized 23 unemployment level for the most recent five-year period. Under 24 the bill, a county qualifies as an economically distressed 25 area if it meets at least three of the criteria detailed in 26 the bill. The authority may designate a county that does 27 not meet at least three of the criteria as an economically 28 distressed area if a business located in the county experiences 29 a layoff or a closure that has a significant impact on a 30 community within the county. The authority shall adopt rules 31 to establish a process for designating a county an economically 32 distressed area under those circumstances. 33 Under current law, the authority may extend a housing 34 project’s completion deadline under the workforce housing tax 35 -3- LSB 5319XD (5) 89 ko/jh 3/ 4

S.F. _____ H.F. _____ incentives program up to 12 months upon application by the 1 housing business, which must be made prior to the expiration of 2 the project’s three-year completion deadline. Under the bill, 3 the authority may approve a second extension of up to 12 months 4 if prior to the expiration of the first 12-month extension the 5 housing business makes application and substantiates to the 6 satisfaction of the authority that the extension is warranted 7 due to extenuating circumstances outside the control of the 8 housing business. 9 -4- LSB 5319XD (5) 89 ko/jh 4/ 4