House File 2697 - Introduced HOUSE FILE 2697 BY COMMITTEE ON APPROPRIATIONS (SUCCESSOR TO LSB 5002HB) A BILL FOR An Act relating to and making appropriations for the economic 1 development of the state, including to the economic 2 development authority, the Iowa finance authority, the 3 public employment relations board, the department of 4 workforce development, and the state board of regents and 5 certain regents institutions, and providing for properly 6 related matters including membership in councils of 7 governments. 8 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 9 TLSB 5002HV (2) 90 ko/ns

H.F. 2697 DIVISION I 1 FY 2024-2025 APPROPRIATIONS 2 Section 1. GOALS AND ACCOUNTABILITY —— ECONOMIC 3 DEVELOPMENT. 4 1. For the fiscal year beginning July 1, 2024, the goals 5 for the economic development authority shall be to expand and 6 stimulate the state economy, increase the wealth of Iowans, and 7 increase the population of the state. 8 2. To achieve the goals in subsection 1, the economic 9 development authority shall do all of the following for the 10 fiscal year beginning July 1, 2024: 11 a. Concentrate its efforts on programs and activities that 12 result in commercially viable products and services. 13 b. Adopt practices and services consistent with free 14 market, private sector philosophies. 15 c. Ensure economic growth and development throughout the 16 state. 17 d. Work with businesses and communities to continually 18 improve the economic development climate along with the 19 economic well-being and quality of life for Iowans. 20 e. Coordinate with other state agencies to ensure that they 21 are attentive to the needs of an entrepreneurial culture. 22 f. Establish a strong and aggressive marketing image to 23 showcase Iowa’s workforce, existing industry, and potential. 24 A priority shall be placed on recruiting new businesses, 25 business expansion, and retaining existing Iowa businesses. 26 Emphasis shall be placed on entrepreneurial development through 27 helping entrepreneurs secure capital, and developing networks 28 and a business climate conducive to entrepreneurs and small 29 businesses. 30 g. Encourage the development of communities and quality of 31 life to foster economic growth. 32 h. Prepare communities for future growth and development 33 through development, expansion, and modernization of 34 infrastructure. 35 -1- LSB 5002HV (2) 90 ko/ns 1/ 19

H.F. 2697 i. Develop public-private partnerships with Iowa businesses 1 in the tourism industry, Iowa tour groups, Iowa tourism 2 organizations, and political subdivisions in this state to 3 assist in the development of advertising efforts. 4 Sec. 2. ECONOMIC DEVELOPMENT AUTHORITY. 5 1. APPROPRIATION 6 a. There is appropriated from the general fund of the state 7 to the economic development authority for the fiscal year 8 beginning July 1, 2024, and ending June 30, 2025, the following 9 amount, or so much thereof as is necessary, to be used for the 10 purposes designated in this subsection, and for not more than 11 the following full-time equivalent positions: 12 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 12,921,510 13 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . FTEs 115.50 14 b. (1) For salaries, support, miscellaneous purposes, 15 programs, marketing, administration, business development, 16 community development, small business development, and any 17 divisions the authority may organize. 18 (2) For business development operations and programs, 19 international trade, export assistance, workforce recruitment, 20 and the partner state program. 21 (3) For transfer to a fund created pursuant to section 22 15.313 for purposes of financing strategic infrastructure 23 projects. 24 (4) For community economic development programs, tourism 25 operations, community assistance, and the community development 26 block grant. 27 (5) For achieving the goals and accountability, and 28 fulfilling the requirements and duties required under this Act. 29 (6) The full-time equivalent positions authorized under 30 this section are funded, in whole or in part, by the moneys 31 appropriated under this subsection or by other moneys received 32 by the authority, including certain federal moneys. 33 c. Notwithstanding section 8.33 , moneys appropriated in 34 this subsection that remain unencumbered or unobligated at the 35 -2- LSB 5002HV (2) 90 ko/ns 2/ 19

H.F. 2697 close of the fiscal year shall not revert but shall remain 1 available for expenditure for the purposes designated in this 2 subsection until the close of the succeeding fiscal year. 3 2. FINANCIAL ASSISTANCE RESTRICTIONS 4 a. A business creating jobs through moneys appropriated in 5 subsection 1 shall be subject to contract provisions requiring 6 new and retained jobs to be filled by individuals who are 7 citizens of the United States who reside within the United 8 States, or any person authorized to work in the United States 9 pursuant to federal law, including legal resident aliens 10 residing in the United States. 11 b. Any vendor who receives moneys appropriated in 12 subsection 1 shall adhere to such contract provisions and 13 provide periodic assurances as the state shall require that the 14 jobs are filled solely by citizens of the United States who 15 reside within the United States, or any person authorized to 16 work in the United States, pursuant to federal law, including 17 legal resident aliens residing in the United States. 18 c. A business that receives financial assistance from 19 the authority from moneys appropriated in subsection 1 shall 20 only employ individuals legally authorized to work in this 21 state. In addition to all other applicable penalties provided 22 by current law, all or a portion of the assistance received 23 by a business which is found to knowingly employ individuals 24 not legally authorized to work in this state is subject to 25 recapture by the authority. 26 3. USES OF APPROPRIATIONS 27 a. From the moneys appropriated in subsection 1, the 28 authority may provide financial assistance in the form of a 29 grant to a community economic development entity for conducting 30 a local workforce recruitment effort designed to recruit former 31 citizens of the state and former students at colleges and 32 universities in the state to meet the needs of local employers. 33 b. From the moneys appropriated in subsection 1, the 34 authority may provide financial assistance to early stage 35 -3- LSB 5002HV (2) 90 ko/ns 3/ 19

H.F. 2697 industry companies being established by women entrepreneurs. 1 c. From the moneys appropriated in subsection 1, the 2 authority may provide financial assistance in the form of 3 grants, loans, or forgivable loans for advanced research and 4 commercialization projects involving value-added agriculture, 5 advanced technology, or biotechnology. 6 4. WORLD FOOD PRIZE 7 In lieu of the standing appropriation in section 15.368 , 8 there is appropriated from the general fund of the state to the 9 economic development authority for the fiscal year beginning 10 July 1, 2024, and ending June 30, 2025, the following amount 11 for the world food prize: 12 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 750,000 13 5. COUNCILS OF GOVERNMENTS —— ASSISTANCE 14 There is appropriated from the general fund of the state 15 to the economic development authority for the fiscal year 16 beginning July 1, 2024, and ending June 30, 2025, the following 17 amount to be used for the purposes of providing financial 18 assistance to Iowa’s councils of governments: 19 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 400,000 20 6. TOURISM OFFICE 21 a. There is appropriated from the general fund of the state 22 to the economic development authority for the fiscal year 23 beginning July 1, 2024, and ending June 30, 2025, the following 24 amount for the tourism office to be used for advertising, 25 promoting, placement, and implementation of the economic 26 development authority’s strategic plan for tourism and travel: 27 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,100,000 28 b. Notwithstanding section 8.33 , moneys appropriated in 29 this subsection that remain unencumbered or unobligated at the 30 close of the fiscal year shall not revert but shall remain 31 available for expenditure for the purposes designated until the 32 close of the succeeding fiscal year. 33 c. The economic development authority shall submit an 34 annual report on or before January 15 to the general assembly 35 -4- LSB 5002HV (2) 90 ko/ns 4/ 19

H.F. 2697 regarding the tourism office’s activities funded with moneys 1 appropriated under this subsection. The report shall be 2 provided in an electronic format and shall include metrics 3 and criteria that allow the general assembly to quantify 4 and evaluate the effectiveness and economic impact of the 5 tourism office’s activities related to advertising, promoting, 6 placement, and implementation of the economic development 7 authority’s strategic plan for tourism and travel. 8 7. CULTURAL AFFAIRS ACTIVITIES 9 a. There is appropriated from the general fund of the state 10 to the economic development authority for the fiscal year 11 beginning July 1, 2024, and ending June 30, 2025, the following 12 amounts, or so much thereof as is necessary, to be used for the 13 purposes designated: 14 (1) For planning and programming for the community cultural 15 grants program established under section 15.436: 16 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 172,090 17 (2) For support of the Iowa arts council: 18 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,450,000 19 Of the moneys appropriated in this subparagraph, the 20 authority shall allocate $300,000 for purposes of the film 21 office. 22 (3) For the Iowa great places program established under 23 section 15.439: 24 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 149,710 25 (4) For grant programs administered by the Iowa arts 26 council including those programs supporting the long-term 27 financial stability and sustainability of nonprofit cultural 28 organizations: 29 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 150,000 30 b. Notwithstanding section 8.33, moneys appropriated in 31 this subsection that remain unencumbered or unobligated at the 32 close of the fiscal year shall not revert but shall remain 33 available for expenditure for the purposes designated until the 34 close of the succeeding fiscal year. 35 -5- LSB 5002HV (2) 90 ko/ns 5/ 19

H.F. 2697 Sec. 3. LIMITATIONS OF STANDING APPROPRIATIONS —— FY 1 2024-2025. Notwithstanding the standing appropriations 2 in the following designated sections for the fiscal year 3 beginning July 1, 2024, and ending June 30, 2025, the amounts 4 appropriated from the general fund of the state pursuant to 5 those sections for the following purposes shall not exceed the 6 following amounts: 7 1. For operational support grants and community cultural 8 grants under section 99F.11, subsection 4 , paragraph “d”, 9 subparagraph (1): 10 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 448,403 11 2. For the purposes of tourism marketing under section 12 99F.11, subsection 4 , paragraph “d”, subparagraph (2): 13 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,443,700 14 Sec. 4. FINANCIAL ASSISTANCE REPORTING —— ECONOMIC 15 DEVELOPMENT AUTHORITY. The economic development authority 16 shall submit an annual report to the general assembly no later 17 than November 1, 2024, that details the amount of every direct 18 loan, forgivable loan, tax credit, tax exemption, tax refund, 19 grant, or any other financial assistance awarded to a person 20 during the prior fiscal year by the authority under an economic 21 development program administered by the authority. The report 22 shall identify the county where the project associated with 23 each such award is located. 24 Sec. 5. INSURANCE ECONOMIC DEVELOPMENT. From the moneys 25 collected by the insurance division of the department of 26 insurance and financial services in excess of the anticipated 27 gross revenues under section 505.7, subsection 3 , during 28 the fiscal year beginning July 1, 2024, $100,000 shall be 29 transferred to the economic development authority for insurance 30 economic development and international insurance economic 31 development. 32 Sec. 6. IOWA FINANCE AUTHORITY. 33 1. There is appropriated from the general fund of the state 34 to the Iowa finance authority for the fiscal year beginning 35 -6- LSB 5002HV (2) 90 ko/ns 6/ 19

H.F. 2697 July 1, 2024, and ending June 30, 2025, the following amounts, 1 or so much thereof as is necessary, to be used for the purposes 2 designated: 3 a. Rent subsidy program 4 (1) To provide reimbursement for rent expenses to eligible 5 persons under the home and community-based services rent 6 subsidy program established in section 16.55: 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 873,000 8 (2) Of the moneys appropriated in this paragraph, not more 9 than $35,000 may be used for administrative costs. 10 b. Housing renewal pilot program 11 To provide housing renewal moneys to a nonprofit Iowa 12 affiliate to award grants to eligible communities for a housing 13 renewal pilot program: 14 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 600,000 15 2. Notwithstanding section 8.33, moneys appropriated in 16 this section that remain unencumbered or unobligated at the 17 close of the fiscal year shall not revert but shall remain 18 available for expenditure for the purposes designated until the 19 close of the succeeding fiscal year. 20 Sec. 7. IOWA FINANCE AUTHORITY AUDIT. The auditor of state 21 is requested to review the audit of the Iowa finance authority 22 performed by the auditor hired by the authority. 23 Sec. 8. PUBLIC EMPLOYMENT RELATIONS BOARD. 24 1. There is appropriated from the general fund of the state 25 to the public employment relations board for the fiscal year 26 beginning July 1, 2024, and ending June 30, 2025, the following 27 amount, or so much thereof as is necessary, to be used for the 28 purposes designated: 29 For salaries, support, maintenance, and miscellaneous 30 purposes, and for not more than the following full-time 31 equivalent positions: 32 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,296,403 33 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . FTEs 5.00 34 2. Of the moneys appropriated in this section, the board 35 -7- LSB 5002HV (2) 90 ko/ns 7/ 19

H.F. 2697 shall allocate $15,000 for maintaining an internet site that 1 allows access to a searchable database of collective bargaining 2 information. 3 Sec. 9. DEPARTMENT OF WORKFORCE DEVELOPMENT. There 4 is appropriated from the general fund of the state to the 5 department of workforce development for the fiscal year 6 beginning July 1, 2024, and ending June 30, 2025, the following 7 amounts, or so much thereof as is necessary, to be used for the 8 purposes designated: 9 1. WORKFORCE DEVELOPMENT OPERATIONS 10 a. For the operation of field offices and the workforce 11 development board, and for not more than the following 12 full-time equivalent positions: 13 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 6,902,636 14 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . FTEs 173.37 15 b. Of the moneys appropriated in paragraph “a”, the 16 department shall allocate $150,000 to the state library for the 17 purpose of licensing an online resource which prepares persons 18 to succeed in the workplace through programs which improve job 19 skills and vocational test-taking abilities. 20 2. OFFENDER REENTRY PROGRAM 21 a. For the development and administration of an offender 22 reentry program to provide offenders with employment skills, 23 and for not more than the following full-time equivalent 24 positions: 25 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 387,158 26 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . FTEs 5.00 27 b. The department of workforce development shall partner 28 with the department of corrections to provide staff within 29 the correctional facilities resources to improve offenders’ 30 abilities to find and retain productive employment. 31 3. INTEGRATED INFORMATION FOR IOWA SYSTEM 32 For the payment of services provided by the department of 33 administrative services related to the integrated information 34 for Iowa system: 35 -8- LSB 5002HV (2) 90 ko/ns 8/ 19

H.F. 2697 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 228,822 1 4. WORKPLACE INJURY AND SAFETY SURVEYS 2 For the operation of workplace safety surveys and workplace 3 data collection and analysis, including salaries, support, 4 maintenance, and miscellaneous purposes, and for not more than 5 the following full-time equivalent positions: 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 125,555 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . FTEs 3.00 8 5. SUMMER YOUTH INTERN PILOT PROGRAM 9 For the funding of a summer youth intern pilot program that 10 will help young people at risk of not graduating from high 11 school to explore and prepare for high-demand careers through 12 summer work experience, including the development of soft 13 skills: 14 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 250,000 15 6. DIVISION OF VOCATIONAL REHABILITATION SERVICES 16 a. For salaries, support, maintenance, and miscellaneous 17 purposes, and for not more than the following full-time 18 equivalent positions: 19 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 6,226,739 20 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . FTEs 248.00 21 For purposes of optimizing the job placement of individuals 22 with disabilities, the division shall make its best efforts 23 to work with community rehabilitation program providers for 24 job placement and retention services for individuals with 25 significant disabilities and most significant disabilities. By 26 January 15, 2025, the division shall submit a written report to 27 the general assembly regarding the division’s outreach efforts 28 with community rehabilitation program providers. 29 b. For matching moneys for programs to enable persons 30 with severe physical or mental disabilities to function more 31 independently, including salaries and support, and for not more 32 than the following full-time equivalent positions: 33 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 84,804 34 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . FTEs 1.00 35 -9- LSB 5002HV (2) 90 ko/ns 9/ 19

H.F. 2697 c. For the entrepreneurs with disabilities program 1 established pursuant to section 84H.4: 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 138,506 3 d. For costs associated with centers for independent 4 living: 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 86,547 6 7. ADULT EDUCATION AND LITERACY PROGRAMS 7 For distribution as grants to community colleges for 8 the purpose of adult basic education programs for students 9 requiring instruction in English as a second language: 10 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 500,000 11 In issuing grants under this subsection, the department of 12 workforce development shall use the same application process 13 and criteria as are used for purposes of awarding grants to 14 community colleges for the purpose of adult basic education 15 programs for students requiring instruction in English as a 16 second language using moneys that are appropriated to the 17 department from the Iowa skilled worker and job creation fund. 18 8. REGISTERED APPRENTICESHIP DEVELOPMENT PROGRAMS 19 For the funding of registered apprenticeship development 20 programs in the department of workforce development: 21 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 760,000 22 Notwithstanding section 8.33 , moneys appropriated in this 23 section that remain unencumbered or unobligated at the close of 24 the fiscal year shall not revert but shall remain available for 25 expenditure for the purposes designated until the close of the 26 succeeding fiscal year. 27 Sec. 10. GENERAL FUND —— EMPLOYEE MISCLASSIFICATION 28 PROGRAM. There is appropriated from the general fund of the 29 state to the department of workforce development for the fiscal 30 year beginning July 1, 2024, and ending June 30, 2025, the 31 following amount, or so much thereof as is necessary, to be 32 used for the purposes designated: 33 For enhancing efforts to investigate employers that 34 misclassify workers, and for not more than the following 35 -10- LSB 5002HV (2) 90 ko/ns 10/ 19

H.F. 2697 full-time equivalent positions: 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 379,631 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . FTEs 3.00 3 Sec. 11. SPECIAL EMPLOYMENT SECURITY CONTINGENCY FUND. 4 1. There is appropriated from the special employment 5 security contingency fund created in section 96.13 to the 6 department of workforce development for the fiscal year 7 beginning July 1, 2024, and ending June 30, 2025, the following 8 amount, or so much thereof as is necessary, to be used for 9 field offices: 10 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2,416,084 11 2. Any remaining additional penalty and interest revenue 12 collected by the department of workforce development is 13 appropriated to the department for the fiscal year beginning 14 July 1, 2024, and ending June 30, 2025, to accomplish the 15 mission of the department. 16 Sec. 12. UNEMPLOYMENT COMPENSATION RESERVE FUND —— FIELD 17 OFFICES. Notwithstanding section 96.9, subsection 8 , paragraph 18 “e”, there is appropriated from interest earned on the 19 unemployment compensation reserve fund created in section 96.9 20 to the department of workforce development for the fiscal year 21 beginning July 1, 2024, and ending June 30, 2025, the following 22 amount, or so much thereof as is necessary, to be used for the 23 purposes designated: 24 For the operation of field offices: 25 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2,200,000 26 Sec. 13. IOWA SKILLED WORKER AND JOB CREATION FUND. 27 1. There is appropriated from the Iowa skilled worker and 28 job creation fund created in section 8.75 to the following 29 departments, agencies, and institutions for the fiscal year 30 beginning July 1, 2024, and ending June 30, 2025, the following 31 amounts, or so much thereof as is necessary, to be used for the 32 purposes designated: 33 a. ECONOMIC DEVELOPMENT AUTHORITY 34 (1) For the purposes of providing assistance as described in 35 -11- LSB 5002HV (2) 90 ko/ns 11/ 19

H.F. 2697 section 15.335B for the high quality jobs program: 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 11,700,000 2 (a) From the moneys appropriated in this subparagraph 3 (1), the economic development authority may use not more than 4 $1,000,000 for purposes of providing infrastructure grants to 5 main street communities under the main street Iowa program. 6 (b) As a condition of receiving moneys appropriated in this 7 subparagraph (1), an entity shall testify upon the request of 8 the joint appropriations subcommittee on economic development 9 regarding the expenditure of such moneys. 10 (2) For support of the manufacturing 4.0 technology 11 investment program established in section 15.371: 12 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2,016,675 13 (3) For the empower rural Iowa program: 14 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 700,000 15 b. STATE BOARD OF REGENTS AND REGENTS INSTITUTIONS 16 (1) STATE BOARD OF REGENTS. For capacity building 17 infrastructure in areas related to technology 18 commercialization, marketing and business development 19 efforts in areas related to technology commercialization, 20 entrepreneurship, and business growth, and infrastructure 21 projects and programs needed to assist in implementation of 22 activities under chapter 262B : 23 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 3,000,000 24 (a) Of the moneys appropriated pursuant to this 25 subparagraph (1), 35 percent shall be allocated for Iowa state 26 university of science and technology, 35 percent shall be 27 allocated for the state university of Iowa, and 30 percent 28 shall be allocated for the university of northern Iowa. 29 (b) The institutions shall provide a one-to-one match 30 of additional moneys for the activities funded with moneys 31 appropriated under this subparagraph (1). 32 (c) The state board of regents shall submit a report by 33 January 15, 2025, to the governor and the general assembly 34 regarding the activities, projects, and programs funded with 35 -12- LSB 5002HV (2) 90 ko/ns 12/ 19

H.F. 2697 moneys appropriated under this subparagraph (1). The report 1 shall be provided in an electronic format and shall include a 2 list of metrics and criteria mutually agreed to in advance by 3 the board of regents and the economic development authority. 4 The metrics and criteria shall allow the governor’s office and 5 the general assembly to quantify and evaluate the progress 6 of the board of regents institutions with regard to their 7 activities, projects, and programs in the areas of technology 8 commercialization, entrepreneurship, regional development, and 9 market research. 10 (2) IOWA STATE UNIVERSITY OF SCIENCE AND TECHNOLOGY. For 11 small business development centers, the research park, and the 12 center for industrial research and service, and for not more 13 than the following full-time equivalent positions: 14 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2,424,302 15 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . FTEs 50.95 16 (a) Of the moneys appropriated in this subparagraph (2), 17 Iowa state university of science and technology shall allocate 18 at least $735,728 for purposes of funding small business 19 development centers. Iowa state university of science and 20 technology may allocate the appropriated moneys to the various 21 small business development centers in any manner necessary to 22 achieve the purposes of this subparagraph. 23 (b) Iowa state university of science and technology shall 24 do all of the following: 25 (i) Direct expenditures for research toward projects that 26 will provide economic stimulus for Iowa. 27 (ii) Provide emphasis to providing services to Iowa-based 28 companies. 29 (c) It is the intent of the general assembly that the 30 industrial incentive program focus on Iowa industrial sectors 31 and seek contributions and in-kind donations from businesses, 32 industrial foundations, and trade associations, and that moneys 33 for the center for industrial research and service industrial 34 incentive program shall be allocated only for projects which 35 -13- LSB 5002HV (2) 90 ko/ns 13/ 19

H.F. 2697 are matched by private sector moneys for directed contract 1 research or for nondirected research. The match required of 2 small businesses as defined in section 15.102 for directed 3 contract research or for nondirected research shall be $1 4 for each $3 of state funds. The match required for other 5 businesses for directed contract research or for nondirected 6 research shall be $1 for each $1 of state funds. The match 7 required of industrial foundations or trade associations shall 8 be $1 for each $1 of state funds. 9 (d) Iowa state university of science and technology shall 10 report annually to the general assembly the total amount of 11 private contributions, the proportion of contributions from 12 small businesses and other businesses, and the proportion for 13 directed contract research and nondirected research of benefit 14 to Iowa businesses and industrial sectors. 15 (3) STATE UNIVERSITY OF IOWA 16 (a) For the state university of Iowa research park and for 17 university of Iowa pharmaceuticals located at the research 18 park, including salaries, support, maintenance, equipment, and 19 miscellaneous purposes, and for not more than the following 20 full-time equivalent positions: 21 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 209,279 22 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . FTEs 6.00 23 The state university of Iowa shall do all of the following: 24 (i) Direct expenditures for research toward projects that 25 will provide economic stimulus for Iowa. 26 (ii) Provide emphasis to providing services to Iowa-based 27 companies. 28 (b) For the purpose of implementing the entrepreneurship 29 and economic growth initiative, and for not more than the 30 following full-time equivalent positions: 31 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2,000,000 32 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . FTEs 8.00 33 (4) UNIVERSITY OF NORTHERN IOWA. For the metal casting and 34 foundry 4.0 centers, advance Iowa, family business center, and 35 -14- LSB 5002HV (2) 90 ko/ns 14/ 19

H.F. 2697 the institute for decision making, including salaries, support, 1 maintenance, and miscellaneous purposes, and for not more than 2 the following full-time equivalent positions: 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,466,419 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . FTEs 13.00 5 The university of northern Iowa shall do all of the 6 following: 7 (a) Direct expenditures for research toward projects that 8 will provide economic stimulus for Iowa. 9 (b) Provide emphasis to providing services to Iowa-based 10 companies. 11 (5) As a condition of receiving moneys appropriated in 12 this lettered paragraph “b”, an entity shall testify upon the 13 request of the joint appropriations subcommittee on economic 14 development regarding the expenditure of such moneys. 15 c. DEPARTMENT OF WORKFORCE DEVELOPMENT 16 (1) To develop a long-term sustained program to train 17 unemployed and underemployed central Iowans with skills 18 necessary to advance to higher-paying jobs with full benefits: 19 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 100,000 20 As a condition of receiving moneys appropriated under this 21 subparagraph (1), an entity shall testify upon the request of 22 the joint appropriations subcommittee on economic development 23 regarding the expenditure of such moneys. 24 (2) For distribution to community colleges for the purposes 25 of implementing adult education and literacy programs pursuant 26 to section 84A.19: 27 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 5,500,000 28 (a) From the moneys appropriated in this numbered 29 subparagraph, $3,883,000 shall be allocated pursuant to the 30 formula established in section 260C.18C. 31 (b) From the moneys appropriated in this numbered 32 subparagraph, not more than $150,000 shall be used by the 33 department of workforce development for implementation of adult 34 education and literacy programs pursuant to section 84A.19. 35 -15- LSB 5002HV (2) 90 ko/ns 15/ 19