SF 2413 (LSB 6031SV (3) 90)

SENATE FILE 2413

BY  COMMITTEE ON APPROPRIATIONS

(SUCCESSOR TO SF 2133)

A BILL FOR

An Act creating a jobs and infrastructure revolving fund and program administered by the Iowa finance authority.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  NEW SECTION.  16.230  Definitions.
   As used in this part, unless the context otherwise requires:
   1.  “Financial assistance” means assistance provided only from the funds, rights, and assets legally available to the authority and includes but is not limited to assistance in the form of low-interest loans.
   2.  “Fund” means the jobs and infrastructure revolving fund created in section 16.231.
   3.  “Program” means the jobs and infrastructure program established in section 16.232.
   4.  “Vertical infrastructure” means land acquisition and construction, all appurtenant structures, utilities, and site development. “Vertical infrastructure” does not include routine, recurring maintenance or operational expenses, the acquisition of agricultural land as defined in section 6A.21 without the consent of the owner of the property, or leasing of an appurtenant structure or utility without a lease-purchase agreement.
    Sec. 2.  NEW SECTION.  16.231  Jobs and infrastructure revolving fund.
   1.  A jobs and infrastructure revolving fund is created within the state treasury under the control of the authority for the purpose of providing financial assistance to government subdivisions for vertical infrastructure projects. Any moneys deposited in the fund and all other moneys in the fund, including interest, earnings, and recaptures, shall be used for purposes of this part. Notwithstanding section 12C.7, subsection 2, interest or earnings on moneys in the fund shall be credited to the fund.
   2.  Notwithstanding section 8.33, moneys deposited in the fund that remain unencumbered or unobligated at the close of the fiscal year shall not revert but shall remain available for expenditure for the purposes designated until the close of the succeeding fiscal year.
   3.  The authority shall not use more than five percent of the moneys in the fund at the beginning of each fiscal year for purposes of administrative costs, marketing, technical assistance, and other program support.
    Sec. 3.  NEW SECTION.  16.232  Jobs and infrastructure program.
   1.  The authority shall establish and administer a jobs and infrastructure program and shall use moneys in the fund to award financial assistance to eligible government subdivisions for vertical infrastructure projects.
   2.  To be eligible for financial assistance under the program, a government subdivision must do all of the following:
   a.  Demonstrate the ability to obtain financial support from private sources for the government subdivision’s vertical infrastructure project. The financial support obtained from private sources must equal at least fifty percent of the aggregate cost of the government subdivision’s vertical infrastructure project.
   b.  Demonstrate that the government subdivision’s vertical infrastructure project will create or retain jobs as part of the vertical infrastructure project, and the jobs created or retained meet the requirements prescribed by the authority by rule.
   3.  Eligible government subdivisions shall submit applications for the program in the manner prescribed by the authority by rule.
    Sec. 4.  NEW SECTION.  16.233  Rules.
   The authority shall adopt rules pursuant to chapter 17A necessary to implement and administer this part.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   This bill creates a jobs and infrastructure revolving fund (fund) and program administered by the Iowa finance authority (authority).
   The fund is created within the state treasury under the control of the authority for the purpose of providing financial assistance (assistance) to eligible government subdivisions (subdivisions) for vertical infrastructure projects (project). “Vertical infrastructure” is defined in the bill as land acquisition and construction, all appurtenant structures, utilities, and site development. “Vertical infrastructure” does not include routine, recurring maintenance or operational expenses, or leasing of an appurtenant structure or utility without a lease-purchase agreement. “Financial assistance” is also defined in the bill.
   Any moneys deposited in the fund and all other moneys in the fund, including interest, earnings, and recaptures, shall be used for purposes of the program. Moneys deposited in the fund that remain unencumbered or unobligated at the close of the fiscal year shall not revert but shall remain available for expenditure for the purposes designated until the close of the succeeding fiscal year. The authority shall use not more than 5 percent of the moneys in the fund at the beginning of each fiscal year for purposes of administrative costs, marketing, technical assistance, and other program support.
   The authority shall establish and administer a jobs and infrastructure program (program) and shall use moneys in the fund to award assistance to eligible subdivisions for projects. To be eligible for assistance under the program, a subdivision must demonstrate the ability to obtain financial support from private sources for the subdivision’s project, and the financial support obtained from private sources must equal at least 50 percent of the aggregate cost of the project. The subdivision must also demonstrate that the subdivision’s project will create or retain jobs as part of the project, and that the jobs will meet the requirements prescribed by the authority by rule. Subdivisions shall submit applications for the program in the manner prescribed by the authority by rule.
   The authority shall adopt rules necessary to implement and administer the bill.