Senate Study Bill 1032 - Introduced SENATE FILE _____ BY (PROPOSED COMMITTEE ON LABOR AND BUSINESS RELATIONS BILL BY CHAIRPERSON WHITING) A BILL FOR An Act relating to grants for new remote workers who relocate 1 to this state and who are employed by an out-of-state 2 employer and creating and making appropriations to the new 3 remote worker grant fund. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 5 TLSB 1221XC (5) 89 ko/jh

S.F. _____ Section 1. NEW SECTION . 15.221 New remote worker grant 1 program. 2 1. a. The economic development authority shall, pursuant to 3 section 15.106A, subsection 1, paragraph “o” , establish a new 4 remote worker grant fund for the purpose of providing grants to 5 new remote workers pursuant to this section. 6 b. The fund may consist of any moneys appropriated by the 7 general assembly for purposes of this section and any other 8 moneys that are lawfully available to the authority, including 9 moneys transferred or deposited from other funds created 10 pursuant to section 15.106A, subsection 1, paragraph “o” . 11 c. The authority shall use any moneys specifically 12 appropriated for purposes of this section only for the purposes 13 of this section. 14 d. Notwithstanding section 8.33, moneys remaining in the 15 fund at the end of each fiscal year shall not revert to any fund 16 and shall remain in the fund. 17 e. There is appropriated from the general fund of the state 18 to the new remote worker grant fund for the new remote worker 19 grant program the following amounts: 20 (1) For the fiscal year beginning July 1, 2021, seven 21 hundred fifty thousand dollars. 22 (2) For the fiscal year beginning July 1, 2022, three 23 hundred fifty thousand dollars. 24 (3) For the fiscal year beginning July 1, 2023, four hundred 25 thousand dollars. 26 (4) For the fiscal year beginning July 1, 2024, four hundred 27 fifty thousand dollars. 28 (5) For the fiscal year beginning July 1, 2025, five hundred 29 thousand dollars. 30 2. As used in this section, unless the context otherwise 31 requires: 32 a. “Coworking space” means a shared office space in which 33 individuals that are not employed by the same organization work 34 independently or collaboratively. 35 -1- LSB 1221XC (5) 89 ko/jh 1/ 4

S.F. _____ b. “New remote worker” means an individual who meets all of 1 the following requirements: 2 (1) Is a full-time employee, as defined by the employer, 3 of a business that is domiciled or has its primary place of 4 business outside of this state. 5 (2) Performs the majority of the worker’s duties for the 6 business remotely from a home office or a coworking space 7 located in this state. 8 (3) Becomes a full-time resident of this state on or after 9 January 1, 2022. 10 c. “Qualifying remote worker expenses” means actual, 11 substantiated costs that a new remote worker incurs for any 12 of the following that are necessary to perform the new remote 13 worker’s employment duties and that are not reimbursed by the 14 employer: 15 (1) Relocation to this state. 16 (2) Computer software and hardware. 17 (3) Broadband access or upgrade. 18 (4) Membership in a coworking space or a similar space. 19 3. A new remote worker shall be eligible for a grant under 20 this program for qualifying new remote worker expenses in an 21 amount not to exceed five thousand dollars per calendar year 22 for a maximum of two calendar years. 23 4. Subject to funding, the authority shall award grants 24 under this program on a first-come, first-served basis, with 25 the following limitations on total grants: 26 a. Not to exceed seven hundred fifty thousand dollars in 27 calendar year 2022. 28 b. Not to exceed three hundred fifty thousand dollars in 29 calendar year 2023. 30 c. Not to exceed four hundred thousand dollars in calendar 31 year 2024. 32 d. Not to exceed four hundred fifty thousand dollars in 33 calendar year 2025. 34 e. Not to exceed five hundred thousand dollars in calendar 35 -2- LSB 1221XC (5) 89 ko/jh 2/ 4

S.F. _____ year 2026. 1 f. To the extent funds remain available, not to exceed two 2 hundred thousand dollars in any subsequent calendar year. 3 5. The authority shall adopt rules pursuant to chapter 17A 4 to implement and administer this section. 5 6. Each year that moneys are appropriated to the fund 6 established in this section, the authority shall submit a 7 report to the general assembly and the governor’s office that 8 provides the total number of grants awarded, the amount of each 9 grant, the state where each grantee’s employer is located, the 10 city and county in this state to which each grantee relocated, 11 whether the new remote worker works out of the person’s home 12 or a coworking space, and if applicable, the city and county 13 in which the coworking space is located. The report shall be 14 submitted by January 31 of each year for the prior calendar 15 year. 16 EXPLANATION 17 The inclusion of this explanation does not constitute agreement with 18 the explanation’s substance by the members of the general assembly. 19 This bill relates to grants for new remote workers who 20 relocate to this state and who are employed by an out-of-state 21 employer, and creates and makes appropriations to the new 22 remote worker grant fund. 23 The bill defines “new remote worker” as an individual who is 24 a full-time employee of a business that is domiciled or has its 25 primary place of business outside of this state, who performs 26 the majority of the person’s duties for the business remotely 27 from a home office or a coworking space located in this state, 28 and who becomes a full-time resident of this state on or after 29 January 1, 2022. 30 Under the bill, a new remote worker is eligible for a 31 grant for qualifying remote worker expenses in an amount not 32 to exceed $5,000 per calendar year. A new remote worker is 33 eligible for a grant for a maximum of two calendar years. 34 “Qualifying remote worker expenses” is defined in the bill as 35 -3- LSB 1221XC (5) 89 ko/jh 3/ 4

S.F. _____ actual, substantiated costs that a new remote worker incurs 1 for relocation to this state, computer software and hardware, 2 broadband access or upgrade, and membership in a coworking 3 space. The expenses must be necessary to perform the remote 4 worker’s employment duties and cannot also be reimbursed by the 5 employer. “Coworking space” is defined in the bill. 6 The bill requires the authority to establish a new remote 7 worker grant fund for the purpose of providing grants to 8 new remote workers. There is appropriated from the general 9 fund of the state to the remote worker grant fund for the 10 new remote worker grant program $750,000 for the fiscal year 11 beginning July 1, 2021, $350,000 for the fiscal year beginning 12 July 1, 2022, $400,000 for the fiscal year beginning July 1, 13 2023, $450,000 for the fiscal year beginning July 1, 2024, 14 and $500,000 for the fiscal year beginning July 1, 2025. 15 Notwithstanding Code section 8.33, moneys remaining in the fund 16 at the end of each fiscal year shall not revert to any fund and 17 shall remain in the fund. 18 Subject to funding, the authority is required by the bill to 19 award grants on a first-come, first-served basis, not exceeding 20 total grants of $750,000 in calendar year 2022, $350,000 in 21 calendar year 2023, $400,000 in calendar year 2024, $450,000 22 in calendar year 2025, and $500,000 in calendar year 2026. To 23 the extent funds remain available in subsequent calendar years, 24 total grants cannot exceed $200,000 in any calendar year. 25 The bill requires the Iowa economic development authority 26 to adopt rules to implement and administer the requirements of 27 the bill. 28 Each year that moneys are appropriated to the fund, the 29 authority must submit a report to the general assembly and the 30 governor’s office providing details related to the grants and 31 grantees. The report is due by January 31 of every year for the 32 immediately preceding calendar year. 33 -4- LSB 1221XC (5) 89 ko/jh 4/ 4