House File 1040 - Introduced HOUSE FILE 1040 BY COMMITTEE ON APPROPRIATIONS (SUCCESSOR TO HSB 336) 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, Iowa finance authority, department 3 of workforce development, and state board of regents and 4 certain regents institutions, and eliminating the repeal of 5 the housing renewal pilot program. 6 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 7 TLSB 1002HV (1) 91 nls/ko

H.F. 1040 DIVISION I 1 FY 2025-2026 APPROPRIATIONS 2 Section 1. GOALS AND ACCOUNTABILITY —— ECONOMIC 3 DEVELOPMENT. 4 1. For the fiscal year beginning July 1, 2025, 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, 2025: 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 1002HV (1) 91 nls/ko 1/ 18

H.F. 1040 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, 2025, and ending June 30, 2026, 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 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 12,999,646 13 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . FTEs 112.50 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 subsection 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 1002HV (1) 91 nls/ko 2/ 18

H.F. 1040 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 the 19 authority from moneys appropriated in subsection 1 shall only 20 employ individuals legally authorized to work in this state. 21 In addition to all other applicable penalties provided by 22 current law, all or a portion of the assistance received by a 23 business which is found to knowingly employ individuals not 24 legally authorized to work in this state shall be 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 31 former citizens of the state, and former students at colleges 32 and universities in the state, to meet the needs of local 33 employers. 34 b. From the moneys appropriated in subsection 1, the 35 -3- LSB 1002HV (1) 91 nls/ko 3/ 18

H.F. 1040 authority may provide financial assistance to early stage 1 industry companies being established by women entrepreneurs. 2 c. From the moneys appropriated in subsection 1, the 3 authority may provide financial assistance in the form of 4 grants, loans, or forgivable loans for advanced research and 5 commercialization projects involving value-added agriculture, 6 advanced technology, or biotechnology. 7 d. The authority shall not use any moneys appropriated in 8 subsection 1 for purposes of providing financial assistance 9 for any program or project that involves the installation of 10 geothermal systems for melting snow and ice from streets or 11 sidewalks. 12 4. WORLD FOOD PRIZE 13 In lieu of the standing appropriation in section 15.368 , 14 there is appropriated from the general fund of the state to the 15 economic development authority for the fiscal year beginning 16 July 1, 2025, and ending June 30, 2026, the following amount 17 for the world food prize: 18 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 650,000 19 5. COUNCILS OF GOVERNMENTS —— ASSISTANCE 20 There is appropriated from the general fund of the state 21 to the economic development authority for the fiscal year 22 beginning July 1, 2025, and ending June 30, 2026, the following 23 amount to be used for the purposes of providing financial 24 assistance to Iowa’s councils of governments: 25 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 350,000 26 6. TOURISM OFFICE 27 a. There is appropriated from the general fund of the state 28 to the economic development authority for the fiscal year 29 beginning July 1, 2025, and ending June 30, 2026, the following 30 amount for the tourism office to be used for advertising, 31 promoting, placement, and implementation of the economic 32 development authority’s strategic plan for tourism and travel: 33 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,016,783 34 b. Notwithstanding section 8.33 , moneys appropriated in 35 -4- LSB 1002HV (1) 91 nls/ko 4/ 18

H.F. 1040 this subsection that remain unencumbered or unobligated at the 1 close of the fiscal year shall not revert but shall remain 2 available for expenditure for the purposes designated until the 3 close of the succeeding fiscal year. 4 c. The economic development authority shall submit an 5 annual report on or before January 15 to the general assembly 6 regarding the tourism office’s activities funded with moneys 7 appropriated under this subsection. The report shall be 8 provided in an electronic format and shall include metrics 9 and criteria that allow the general assembly to quantify 10 and evaluate the effectiveness and economic impact of the 11 tourism office’s activities related to advertising, promoting, 12 placement, and implementation of the economic development 13 authority’s strategic plan for tourism and travel. 14 7. CULTURAL AFFAIRS ACTIVITIES 15 a. There is appropriated from the general fund of the state 16 to the economic development authority for the fiscal year 17 beginning July 1, 2025, and ending June 30, 2026, the following 18 amounts, or so much thereof as is necessary, to be used for the 19 purposes designated: 20 For support of the Iowa arts council: 21 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,779,321 22 Of the moneys appropriated in this paragraph, the authority 23 shall allocate $300,000 for purposes of the film office. 24 b. Notwithstanding section 8.33, moneys appropriated in 25 this subsection that remain unencumbered or unobligated at the 26 close of the fiscal year shall not revert but shall remain 27 available for expenditure for the purposes designated until the 28 close of the succeeding fiscal year. 29 Sec. 3. LIMITATION OF STANDING APPROPRIATION —— FY 30 2025-2026. Notwithstanding the standing appropriation in the 31 following designated section for the fiscal year beginning July 32 1, 2025, and ending June 30, 2026, the amount appropriated from 33 the general fund of the state pursuant to that section for the 34 following purposes shall not exceed the following amount: 35 -5- LSB 1002HV (1) 91 nls/ko 5/ 18

H.F. 1040 For the purposes of tourism marketing under section 99F.11, 1 subsection 4 , paragraph “d”, subparagraph (2): 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,443,700 3 Sec. 4. FINANCIAL ASSISTANCE REPORTING —— ECONOMIC 4 DEVELOPMENT AUTHORITY. The economic development authority 5 shall submit an annual report to the general assembly no later 6 than November 1, 2025, that details the amount of every direct 7 loan, forgivable loan, tax credit, tax exemption, tax refund, 8 grant, or any other financial assistance awarded to a person 9 during the prior fiscal year by the authority under an economic 10 development program administered by the authority. The report 11 shall identify the county where the project associated with 12 each such award is located. 13 Sec. 5. INSURANCE ECONOMIC DEVELOPMENT. From the moneys 14 collected by the insurance division of the department of 15 insurance and financial services in excess of the anticipated 16 gross revenues under section 505.7, subsection 3 , during 17 the fiscal year beginning July 1, 2025, $100,000 shall be 18 transferred to the economic development authority for insurance 19 economic development and international insurance economic 20 development. 21 Sec. 6. IOWA FINANCE AUTHORITY. 22 1. There is appropriated from the general fund of the state 23 to the Iowa finance authority for the fiscal year beginning 24 July 1, 2025, and ending June 30, 2026, the following amounts, 25 or so much thereof as is necessary, to be used for the purposes 26 designated: 27 a. Rent subsidy program 28 (1) To provide reimbursement for rent expenses to eligible 29 persons under the home and community-based services rent 30 subsidy program established in section 16.55: 31 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 873,000 32 (2) Of the moneys appropriated in this paragraph, not more 33 than $35,000 may be used for administrative costs. 34 b. Housing renewal pilot program 35 -6- LSB 1002HV (1) 91 nls/ko 6/ 18

H.F. 1040 To provide housing renewal moneys to a nonprofit Iowa 1 affiliate to award grants to eligible communities under the 2 housing renewal pilot program created in 2022 Iowa Acts, 3 chapter 1148, section 20: 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 550,000 5 2. Notwithstanding section 8.33, moneys appropriated in 6 this section that remain unencumbered or unobligated at the 7 close of the fiscal year shall not revert but shall remain 8 available for expenditure for the purposes designated until the 9 close of the succeeding fiscal year. 10 Sec. 7. IOWA FINANCE AUTHORITY AUDIT. The auditor of state 11 is requested to review the audit of the Iowa finance authority 12 performed by the auditor hired by the authority. 13 Sec. 8. DEPARTMENT OF WORKFORCE DEVELOPMENT. There 14 is appropriated from the general fund of the state to the 15 department of workforce development for the fiscal year 16 beginning July 1, 2025, and ending June 30, 2026, the following 17 amounts, or so much thereof as is necessary, to be used for the 18 purposes designated: 19 1. WORKFORCE DEVELOPMENT OPERATIONS 20 a. For the operation of field offices and the workforce 21 development board, and for not more than the following 22 full-time equivalent positions: 23 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 6,902,636 24 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . FTEs 167.43 25 b. Of the moneys appropriated in paragraph “a”, the 26 department shall allocate $150,000 to the state library for the 27 purpose of licensing an online resource which prepares persons 28 to succeed in the workplace through programs which improve job 29 skills and vocational test-taking abilities. 30 2. OFFENDER REENTRY PROGRAM 31 a. For the development and administration of an offender 32 reentry program to provide offenders with employment skills, 33 and for not more than the following full-time equivalent 34 positions: 35 -7- LSB 1002HV (1) 91 nls/ko 7/ 18

H.F. 1040 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 393,424 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . FTEs 5.00 2 b. The department of workforce development shall partner 3 with the department of corrections to provide staff within 4 the correctional facilities resources to improve offenders’ 5 abilities to find and retain productive employment. 6 3. INTEGRATED INFORMATION FOR IOWA SYSTEM 7 For the payment of services provided by the department of 8 administrative services related to the integrated information 9 for Iowa system: 10 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 228,822 11 4. WORKPLACE INJURY AND SAFETY SURVEYS 12 For the operation of workplace safety surveys and workplace 13 data collection and analysis, including salaries, support, 14 maintenance, and miscellaneous purposes, and for not more than 15 the following full-time equivalent positions: 16 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 127,314 17 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . FTEs 2.55 18 5. SUMMER YOUTH INTERN PILOT PROGRAM 19 For the funding of a summer youth intern pilot program that 20 helps young people at risk of not graduating from high school 21 to explore and prepare for high-demand careers through summer 22 work experience, including the development of soft skills: 23 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 250,000 24 6. VOCATIONAL REHABILITATION SERVICES DIVISION 25 a. For salaries, support, maintenance, and miscellaneous 26 purposes, and for not more than the following full-time 27 equivalent positions: 28 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 6,308,429 29 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . FTEs 251.00 30 For purposes of optimizing the job placement of individuals 31 with disabilities, the division shall make its best efforts 32 to work with community rehabilitation program providers for 33 job placement and retention services for individuals with 34 significant disabilities and most significant disabilities. By 35 -8- LSB 1002HV (1) 91 nls/ko 8/ 18

H.F. 1040 January 15, 2026, the division shall submit a written report to 1 the general assembly regarding the division’s outreach efforts 2 with community rehabilitation program providers. 3 b. For matching moneys for programs to enable persons 4 with severe physical or mental disabilities to function more 5 independently, including salaries and support, and for not more 6 than the following full-time equivalent positions: 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 84,804 8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . FTEs 1.00 9 c. For the entrepreneurs with disabilities program 10 established pursuant to section 84H.4: 11 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 143,297 12 d. For costs associated with centers for independent 13 living: 14 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 86,547 15 7. ADULT EDUCATION AND LITERACY PROGRAMS 16 For distribution as grants to community colleges for 17 the purpose of adult basic education programs for students 18 requiring instruction in English as a second language: 19 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 500,000 20 In issuing grants under this subsection, the department of 21 workforce development shall use the same application process 22 and criteria as are used for purposes of awarding grants to 23 community colleges for the purpose of adult basic education 24 programs for students requiring instruction in English as a 25 second language using moneys that are appropriated to the 26 department from the Iowa skilled worker and job creation fund 27 created in section 8.57J. 28 8. REGISTERED APPRENTICESHIP DEVELOPMENT PROGRAMS 29 For the funding of the registered apprenticeship development 30 programs under chapter 84F to encourage small to midsize 31 businesses to start or grow registered apprenticeships: 32 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 760,000 33 Notwithstanding section 8.33 , moneys appropriated in this 34 section that remain unencumbered or unobligated at the close of 35 -9- LSB 1002HV (1) 91 nls/ko 9/ 18

H.F. 1040 the fiscal year shall not revert but shall remain available for 1 expenditure for the purposes designated until the close of the 2 succeeding fiscal year. 3 Sec. 9. DEPARTMENT OF WORKFORCE DEVELOPMENT —— EMPLOYEE 4 MISCLASSIFICATION PROGRAM. There is appropriated from the 5 general fund of the state to the department of workforce 6 development for the fiscal year beginning July 1, 2025, and 7 ending June 30, 2026, the following amount, or so much thereof 8 as is necessary, to be used for the purposes designated: 9 For enhancing efforts to investigate employers that 10 misclassify workers, and for not more than the following 11 full-time equivalent positions: 12 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 382,685 13 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . FTEs 4.00 14 Sec. 10. DEPARTMENT OF WORKFORCE DEVELOPMENT —— SPECIAL 15 EMPLOYMENT SECURITY CONTINGENCY FUND. 16 1. There is appropriated from the special employment 17 security contingency fund created in section 96.13 to the 18 department of workforce development for the fiscal year 19 beginning July 1, 2025, and ending June 30, 2026, the following 20 amount, or so much thereof as is necessary, to be used for 21 field offices: 22 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 4,616,084 23 2. Any remaining additional penalty and interest revenue 24 collected by the department of workforce development is 25 appropriated to the department for the fiscal year beginning 26 July 1, 2025, and ending June 30, 2026, to accomplish the 27 mission of the department. 28 Sec. 11. IOWA SKILLED WORKER AND JOB CREATION FUND. 29 1. There is appropriated from the Iowa skilled worker and 30 job creation fund created in section 8.57J to the following 31 departments, agencies, and institutions for the fiscal year 32 beginning July 1, 2025, and ending June 30, 2026, the following 33 amounts, or so much thereof as is necessary, to be used for the 34 purposes designated: 35 -10- LSB 1002HV (1) 91 nls/ko 10/ 18

H.F. 1040 a. ECONOMIC DEVELOPMENT AUTHORITY 1 (1) For the purposes of providing assistance as described in 2 section 15.335B for the high quality jobs program: 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 11,700,000 4 (a) From the moneys appropriated in this subparagraph 5 (1), the economic development authority may use not more than 6 $1,000,000 for purposes of providing infrastructure grants to 7 main street communities under the main street Iowa program. 8 (b) As a condition of receiving moneys appropriated in this 9 subparagraph (1), an entity shall testify upon the request of 10 the joint appropriations subcommittee on economic development 11 regarding the expenditure of such moneys. 12 (2) For support of the manufacturing 4.0 technology 13 investment program established in section 15.371: 14 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2,016,675 15 (3) For the empower rural Iowa program: 16 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 700,000 17 b. STATE BOARD OF REGENTS AND REGENTS INSTITUTIONS 18 (1) STATE BOARD OF REGENTS. For capacity building 19 infrastructure in areas related to technology 20 commercialization, marketing and business development 21 efforts in areas related to technology commercialization, 22 entrepreneurship, and business growth, and infrastructure 23 projects and programs needed to assist in implementation of 24 activities under chapter 262B : 25 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 3,000,000 26 (a) Of the moneys appropriated pursuant to this 27 subparagraph (1), 35 percent shall be allocated for Iowa state 28 university of science and technology, 35 percent shall be 29 allocated for the state university of Iowa, and 30 percent 30 shall be allocated for the university of northern Iowa. 31 (b) The institutions shall provide a one-to-one match 32 of additional moneys for the activities funded with moneys 33 appropriated under this subparagraph (1). 34 (c) The state board of regents shall submit a report by 35 -11- LSB 1002HV (1) 91 nls/ko 11/ 18

H.F. 1040 January 15, 2026, to the governor and the general assembly 1 regarding the activities, projects, and programs funded with 2 moneys appropriated under this subparagraph (1). The report 3 shall be provided in an electronic format and shall include a 4 list of metrics and criteria mutually agreed to in advance by 5 the board of regents and the economic development authority. 6 The metrics and criteria shall allow the governor’s office and 7 the general assembly to quantify and evaluate the progress 8 of the board of regents institutions with regard to their 9 activities, projects, and programs in the areas of technology 10 commercialization, entrepreneurship, regional development, and 11 market research. 12 (2) IOWA STATE UNIVERSITY OF SCIENCE AND TECHNOLOGY. For 13 small business development centers, the research park, and the 14 center for industrial research and service, and for not more 15 than the following full-time equivalent positions: 16 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2,424,302 17 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . FTEs 50.94 18 (a) Of the moneys appropriated in this subparagraph (2), 19 Iowa state university of science and technology shall allocate 20 at least $735,728 for purposes of funding small business 21 development centers. Iowa state university of science and 22 technology may allocate the appropriated moneys to the various 23 small business development centers in any manner necessary to 24 achieve the purposes of this subparagraph. 25 (b) Iowa state university of science and technology shall 26 do all of the following: 27 (i) Direct expenditures for research toward projects that 28 will provide economic stimulus for Iowa. 29 (ii) Provide emphasis on providing services to Iowa-based 30 companies. 31 (c) It is the intent of the general assembly that the 32 industrial incentive program focus on Iowa industrial sectors 33 and seek contributions and in-kind donations from businesses, 34 industrial foundations, and trade associations, and that moneys 35 -12- LSB 1002HV (1) 91 nls/ko 12/ 18

H.F. 1040 for the center for industrial research and service industrial 1 incentive program shall be allocated only for projects which 2 are matched by private sector moneys for directed contract 3 research or for nondirected research. The match required of 4 small businesses as defined in section 15.102 for directed 5 contract research or for nondirected research shall be $1 6 for each $3 of state funds. The match required for other 7 businesses for directed contract research or for nondirected 8 research shall be $1 for each $1 of state funds. The match 9 required of industrial foundations or trade associations shall 10 be $1 for each $1 of state funds. 11 (d) Iowa state university of science and technology shall 12 report annually to the general assembly the total amount of 13 private contributions, the proportion of contributions from 14 small businesses and other businesses, and the proportion for 15 directed contract research and nondirected research of benefit 16 to Iowa businesses and industrial sectors. 17 (3) STATE UNIVERSITY OF IOWA 18 (a) For the state university of Iowa research park and for 19 university of Iowa pharmaceuticals located at the research 20 park, including salaries, support, maintenance, equipment, and 21 miscellaneous purposes, and for not more than the following 22 full-time equivalent positions: 23 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 209,279 24 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . FTEs 6.00 25 The state university of Iowa shall do all of the following: 26 (i) Direct expenditures for research toward projects that 27 will provide economic stimulus for Iowa. 28 (ii) Provide emphasis on providing services to Iowa-based 29 companies. 30 (b) For the purpose of implementing the entrepreneurship 31 and economic growth initiative, and for not more than the 32 following full-time equivalent positions: 33 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2,000,000 34 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . FTEs 8.00 35 -13- LSB 1002HV (1) 91 nls/ko 13/ 18

H.F. 1040 (4) UNIVERSITY OF NORTHERN IOWA. For the metal casting and 1 foundry 4.0 centers, advance Iowa, family business center, and 2 the institute for decision making, including salaries, support, 3 maintenance, and miscellaneous purposes, and for not more than 4 the following full-time equivalent positions: 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,466,419 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . FTEs 13.00 7 The university of northern Iowa shall do all of the 8 following: 9 (a) Direct expenditures for research toward projects that 10 will provide economic stimulus for Iowa. 11 (b) Provide emphasis on providing services to Iowa-based 12 companies. 13 (5) CONDITIONS. As a condition of receiving moneys 14 appropriated in this lettered paragraph “b”, an entity 15 shall testify upon the request of the joint appropriations 16 subcommittee on economic development regarding the expenditure 17 of such moneys. 18 c. DEPARTMENT OF WORKFORCE DEVELOPMENT 19 (1) For staffing costs related to completing workforce 20 preparation outcome reporting in conjunction with the 21 department of education: 22 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 125,000 23 (2) For distribution to community colleges for the purposes 24 of implementing adult education and literacy programs pursuant 25 to section 84A.19: 26 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 5,500,000 27 (a) From the moneys appropriated in this numbered 28 subparagraph, $3,883,000 shall be allocated pursuant to the 29 distribution formula established in section 260C.18C. 30 (b) From the moneys appropriated in this numbered 31 subparagraph, not more than $150,000 shall be used by the 32 department of workforce development for implementation of adult 33 education and literacy programs pursuant to section 84A.19. 34 (c) From the moneys appropriated in this numbered 35 -14- LSB 1002HV (1) 91 nls/ko 14/ 18

H.F. 1040 subparagraph, not more than $1,257,000 shall be distributed 1 as grants to community colleges for the purpose of adult 2 basic education programs for students requiring instruction 3 in English as a second language. The department of workforce 4 development shall establish an application process and criteria 5 to award grants pursuant to this subparagraph division to 6 community colleges. The criteria shall be based on need for 7 instruction in English as a second language in the region 8 served by each community college as determined by factors 9 including data from the latest federal decennial census and 10 outreach efforts to determine regional needs. 11 (d) From the moneys appropriated in this numbered 12 subparagraph, $210,000 shall be transferred to the department 13 of health and human services for purposes of administering a 14 program to provide access to international resources to Iowans 15 and new Iowans to provide economic and leadership development 16 resulting in Iowa being a more welcoming place to live, work, 17 and raise a family. The program shall provide supplemental 18 support services for international refugees to improve 19 learning, English literacy, life skills, cultural competencies, 20 and integration in a county with a population over 350,000 21 as determined by the 2020 federal decennial census. The 22 department of health and human services shall utilize a request 23 for proposals process to identify the entity best qualified to 24 implement the program. 25 (3) For the funding of internships for students studying in 26 the fields of science, technology, engineering, and mathematics 27 with eligible Iowa employers as provided in section 84A.21, 28 subsection 2, paragraph “c”: 29 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 633,325 30 2. Notwithstanding section 8.33 , moneys appropriated in 31 this section 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 -15- LSB 1002HV (1) 91 nls/ko 15/ 18

H.F. 1040 Sec. 12. GENERAL FUND —— CERTAIN REGENTS INSTITUTIONS. 1 1. There is appropriated from the general fund of the state 2 to the following institutions for the fiscal year beginning 3 July 1, 2025, and ending June 30, 2026, the following amounts, 4 or so much thereof as is necessary, to be used for the purposes 5 designated: 6 a. IOWA STATE UNIVERSITY OF SCIENCE AND TECHNOLOGY 7 In cooperation with the economic development authority, for 8 support of a biosciences innovation ecosystem, to strengthen 9 Iowa’s leadership positions in the area of bio-based chemicals, 10 digital agriculture, vaccines, and medical devices, including 11 salaries, support, maintenance, and miscellaneous purposes, and 12 for not more than the following full-time equivalent positions: 13 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2,963,995 14 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . FTEs 9.18 15 b. STATE UNIVERSITY OF IOWA 16 In cooperation with the economic development authority, for 17 support of a biosciences innovation ecosystem, to strengthen 18 Iowa’s leadership positions in the area of bio-based chemicals, 19 digital agriculture, vaccines, and medical devices, including 20 salaries, support, maintenance, and miscellaneous purposes, and 21 for not more than the following full-time equivalent positions: 22 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,000,000 23 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . FTEs 4.35 24 c. UNIVERSITY OF NORTHERN IOWA 25 For equipment and technology to expand the university’s 26 additive manufacturing capabilities related to investment 27 castings technology and industry support, including salaries, 28 support, maintenance, and miscellaneous purposes, and for not 29 more than the following full-time equivalent positions: 30 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 394,321 31 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . FTEs 2.73 32 The university of northern Iowa shall make a good-faith 33 effort to coordinate with private entities to seek moneys to 34 supplement this appropriation to support the expansion of the 35 -16- LSB 1002HV (1) 91 nls/ko 16/ 18