Senate File 622 - Introduced SENATE FILE 622 BY COMMITTEE ON WAYS AND MEANS (SUCCESSOR TO SF 465) (SUCCESSOR TO SSB 1106) A BILL FOR An Act relating to matters under the purview of the 1 economic development authority and the Iowa finance 2 authority including the strategic infrastructure program, 3 brownfield, grayfield, and redevelopment tax credits, 4 community attraction and tourism, vision Iowa, sports 5 tourism marketing, the historic preservation tax credit, 6 homelessness, the title guaranty board, arts and culture, 7 and the Iowa reinvestment Act and including applicability 8 and retroactive applicability provisions. 9 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 10 TLSB 1410SZ (2) 91 nls/ko

S.F. 622 DIVISION I 1 STRATEGIC INFRASTRUCTURE PROGRAM 2 Section 1. Section 15.117A, subsection 6, paragraph c, Code 3 2025, is amended by striking the paragraph. 4 Sec. 2. Section 15.313, subsection 3, unnumbered paragraph 5 1, Code 2025, is amended to read as follows: 6 The Iowa innovation council A committee appointed pursuant 7 to section 15.117A, subsection 7, shall review each application 8 received by the economic development authority for financial 9 assistance under the program and shall make recommendations to 10 the board regarding all of the following: 11 DIVISION II 12 BROWNFIELDS, GRAYFIELDS, AND REDEVELOPMENT TAX CREDITS 13 Sec. 3. Section 15.291, subsections 3 and 11, Code 2025, are 14 amended by striking the subsections. 15 Sec. 4. Section 15.293A, subsection 3, unnumbered paragraph 16 1, Code 2025, is amended to read as follows: 17 The amount of the tax credit shall be determined by the board 18 in conjunction with the council. However, the tax credit and 19 shall not exceed the following amount, as applicable: 20 Sec. 5. Section 15.293B, subsection 1, paragraphs b, d, and 21 h, Code 2025, are amended to read as follows: 22 b. The authority shall accept and , in conjunction with 23 the council, review applications for tax credits provided in 24 section 15.293A and , with the approval of the council, make tax 25 credit award recommendations regarding the applications to the 26 board. The authority may engage outside experts to complete a 27 technical, financial, or other review. 28 d. Upon review of an application, the authority may 29 register the project with the redevelopment tax credits 30 program. If the authority registers the project, the authority 31 may , in conjunction with the council, make a preliminary 32 determination as to the amount of tax credit for which an award 33 recommendation will be made to the board. 34 h. If the applicant for a tax credit provided in section 35 -1- LSB 1410SZ (2) 91 nls/ko 1/ 23

S.F. 622 15.293A has also applied to an agency of the federal government 1 or to the authority, the board, or any other agency of state 2 government for additional financial assistance, the authority , 3 the council, and the board shall consider the amount of funding 4 to be received from such public sources when making a tax 5 credit award pursuant to this section . 6 Sec. 6. Section 15.293B, subsection 1, paragraph f, 7 subparagraph (1), Code 2025, is amended to read as follows: 8 (1) All completed applications shall be reviewed and scored 9 on a competitive basis by the council and the board authority . 10 In reviewing and scoring applications, the council and the 11 board authority may consider any factors the council and board 12 deem authority deems appropriate for a competitive application 13 process, including but not limited to the financial need, 14 quality, and feasibility of a qualifying redevelopment project. 15 Sec. 7. Section 15.293B, subsection 2, paragraph c, Code 16 2025, is amended to read as follows: 17 c. Any other information deemed necessary by the board 18 and the council authority to review and score the application 19 pursuant to subsection 1 . 20 Sec. 8. Section 15.293B, subsections 4 and 5, Code 2025, are 21 amended to read as follows: 22 4. A registered project shall be completed within thirty 23 months of the date the project was registered unless the 24 authority, upon recommendation of the council and with the 25 approval of the board, provides additional time to complete the 26 project. If the registered project is not completed within 27 the time required, the project is not eligible to claim a 28 redevelopment tax credit provided in section 15.293A . 29 5. a. The investor shall engage a certified public 30 accountant authorized to practice in this state to conduct an 31 examination of the project in accordance with the American 32 institute of certified public accountants’ statements on 33 standards for attestation engagements. Upon completion of a 34 registered project, an audit of the project, completed by an 35 -2- LSB 1410SZ (2) 91 nls/ko 2/ 23

S.F. 622 independent certified public accountant licensed in this state, 1 the examination, along with a statement of the amount of final 2 qualifying investment, shall be submitted to the authority. 3 b. Upon review of the audit and verification of the amount 4 of the qualifying investment, examination and statement 5 submitted pursuant to paragraph “a” , the authority may issue a 6 tax credit certificate to the investor stating the amount of 7 tax credit under section 15.293A the investor may claim. 8 Sec. 9. REPEAL. Sections 15.292, 15.293, 15.294, and 9 15.295, Code 2025, are repealed. 10 Sec. 10. TRANSFER OF MONEYS. On the effective date of this 11 division of this Act, any unencumbered or unobligated moneys 12 remaining in the brownfield redevelopment fund created in 13 section 15.293 are transferred to a fund or funds established 14 pursuant to section 15.335B, subsection 1, paragraph “a”, as 15 determined by the economic development authority. 16 DIVISION III 17 COMMUNITY ATTRACTION AND TOURISM, AND VISION IOWA —— REQUIRED 18 BENEFITS 19 Sec. 11. REPEAL. Section 15F.106, Code 2025, is repealed. 20 Sec. 12. APPLICABILITY. This division of this Act applies 21 to an applicant awarded financial assistance under both the 22 vision Iowa program established in section 15F.302, and the 23 community attraction and tourism program established in section 24 15F.202, on or after the effective date of this division of 25 this Act. 26 Sec. 13. RETROACTIVE APPLICABILITY. This division of this 27 Act applies retroactively to an applicant awarded financial 28 assistance under both the vision Iowa program established in 29 section 15F.302, and the community attraction and tourism 30 program established in section 15F.202, prior to the effective 31 date of this division of this Act. 32 DIVISION IV 33 COMMUNITY ATTRACTION AND TOURISM PROGRAM, AND SPORTS TOURISM 34 MARKETING AND INFRASTRUCTURE PROGRAM —— APPLICATION REVIEW 35 -3- LSB 1410SZ (2) 91 nls/ko 3/ 23

S.F. 622 Sec. 14. Section 15F.203, subsection 2, Code 2025, is 1 amended to read as follows: 2 2. A The director of the authority shall appoint a review 3 committee composed of five members of the board shall with 4 relevant expertise to review community attraction and tourism 5 program applications forwarded to the board and . The review 6 committee shall make recommendations regarding the applications 7 to the board. 8 Sec. 15. Section 15F.402, subsection 2, Code 2025, is 9 amended to read as follows: 10 2. A The director of the authority shall appoint a review 11 committee composed of five members of the board shall with 12 relevant expertise to review sports tourism marketing and 13 infrastructure program applications forwarded to the board and . 14 The review committee shall make recommendations regarding the 15 applications to the authority. 16 DIVISION V 17 HISTORIC PRESERVATION TAX CREDIT 18 Sec. 16. Section 404A.1, subsection 2, Code 2025, is amended 19 by striking the subsection. 20 Sec. 17. Section 404A.1, subsection 7, Code 2025, is amended 21 by adding the following new paragraph: 22 NEW PARAGRAPH . d. The property is not a single-family 23 dwelling unit, unless the project will result in two or more 24 new single-family dwelling units that were not available 25 for occupancy as residential housing during the immediately 26 preceding consecutive six months prior to commencement of 27 the project, and the dwelling units are located in the same 28 neighborhood, as confirmed by the authority. The two or more 29 new single-family dwelling units must be made available for 30 occupancy as a result of the rehabilitation project. The 31 authority may promulgate by rule criteria used by the authority 32 to determine if a property is a single-family dwelling unit, 33 and qualifies as a qualified rehabilitation project under this 34 paragraph. 35 -4- LSB 1410SZ (2) 91 nls/ko 4/ 23

S.F. 622 Sec. 18. Section 404A.1, Code 2025, is amended by adding the 1 following new subsection: 2 NEW SUBSECTION . 8. “Registration date” means the date on 3 which the authority notifies an eligible taxpayer of successful 4 registration of the taxpayer’s qualified rehabilitation project 5 pursuant to section 404A.3, subsection 2. 6 Sec. 19. Section 404A.2, subsection 3, paragraph a, Code 7 2025, is amended to read as follows: 8 a. Tax credit certificates issued under section 404A.3 may 9 be transferred to any person , except that an eligible taxpayer 10 shall not transfer a tax credit certificate on or after January 11 1, 2026 . Within ninety days of transfer, the transferee shall 12 submit the transferred tax credit certificate to the department 13 of revenue along with a statement containing the transferee’s 14 name, tax identification number, address, the denomination 15 that each replacement tax credit certificate is to carry, and 16 any other information required by the department of revenue. 17 However, tax credit certificate amounts of less than the 18 minimum amount established by rule by the department of revenue 19 shall not be transferable. 20 Sec. 20. Section 404A.2, subsection 4, paragraph a, Code 21 2025, is amended to read as follows: 22 a. For a tax credit claimed by an eligible taxpayer or 23 a transferee for qualified rehabilitation projects with 24 agreements entered into on or after July 1, 2014, the following 25 percentage of any credit in excess of the taxpayer’s tax 26 liability for the tax year may be refunded: 27 (1) For the tax year beginning on or after January 1, 2023, 28 but before January 1, 2024, ninety-five percent. 29 (2) For the tax year beginning on or after January 1, 2024, 30 but before January 1, 2025, ninety percent. 31 (3) For the tax year beginning on or after January 1, 2025, 32 but before January 1, 2026, eighty-five percent. 33 (4) For the tax year beginning on or after January 1, 2026, 34 but before January 1, 2027, eighty percent. 35 -5- LSB 1410SZ (2) 91 nls/ko 5/ 23

S.F. 622 (5) (4) For tax years beginning on or after January 1, 1 2027, seventy-five 2026, one hundred percent. 2 Sec. 21. Section 404A.3, subsection 3, paragraph b, 3 subparagraphs (4) and (5), Code 2025, are amended to read as 4 follows: 5 (4) The commencement date of by which the qualified 6 rehabilitation project must commence , which shall not be no 7 later than the end of the fiscal year in which the agreement 8 is entered into one calendar year from the registration date . 9 Upon application of the eligible taxpayer, the authority may, 10 at the discretion of the authority, extend the date by which 11 the qualified rehabilitation project must commence up to an 12 additional twelve consecutive months. 13 (5) (a) The completion date of by which the qualified 14 rehabilitation project , which shall be within thirty-six 15 months of the commencement date must be completed, which shall 16 be no later than three consecutive calendar years from the 17 registration date . The qualified rehabilitation project shall 18 be considered complete as of the date the property that is the 19 subject of the qualified rehabilitation project is placed in 20 service, as described in 26 U.S.C. §47. 21 (b) Upon application of the eligible taxpayer, the 22 authority may, at the discretion of the authority, extend the 23 date by which the qualified rehabilitation project must be 24 complete up to an additional twelve consecutive months. 25 (c) Upon application of the eligible taxpayer made prior 26 to the expiration of an extension under subparagraph (b), the 27 authority may, at the discretion of the authority, extend 28 the date by which the qualified rehabilitation project must 29 be complete up to an additional twelve consecutive months. 30 The qualified eligible taxpayer must substantiate to the 31 satisfaction of the authority that the requested extension is 32 warranted due to extenuating circumstances outside the control 33 of the eligible taxpayer. 34 (d) An application by an eligible taxpayer under 35 -6- LSB 1410SZ (2) 91 nls/ko 6/ 23

S.F. 622 subparagraph division (b) or (c) shall be made in the manner 1 and form prescribed by the authority by rule. 2 Sec. 22. Section 404A.3, subsection 4, paragraph c, 3 subparagraph (3), subparagraph division (c), unnumbered 4 paragraph 1, Code 2025, is amended to read as follows: 5 “Qualifying transferee” means a transferee who acquires a tax 6 credit certificate before January 1, 2026, issued under this 7 chapter for value, in good faith, without express or implied 8 notice of a prohibited activity of the eligible taxpayer who 9 was originally issued the tax credit, and without express or 10 implied notice of any other claim to or defense against the 11 tax credit, and which transferee is not associated with the 12 eligible taxpayer by being one or more of the following: 13 Sec. 23. Section 404A.4, subsection 1, paragraph a, 14 unnumbered paragraph 1, Code 2025, is amended to read as 15 follows: 16 Except as provided in subsections 2 , and 3 , and 4, the 17 authority shall not award in any one fiscal year an amount of 18 tax credits provided in section 404A.2 in excess of forty-five 19 million dollars. 20 Sec. 24. Section 404A.4, Code 2025, is amended by adding the 21 following new subsection: 22 NEW SUBSECTION . 4. a. If, during the fiscal year beginning 23 July 1, 2025, or any fiscal year thereafter, the authority 24 receives an application for a qualified rehabilitation project 25 with qualified rehabilitation expenditures that, if registered 26 by the authority, makes the eligible taxpayer eligible for tax 27 credits of ten million dollars or more, the authority may award 28 tax credits during the fiscal year in which the application 29 is received in an amount not to exceed twenty percent more 30 than the maximum aggregate tax credit award limit specified in 31 subsection 1. 32 b. Tax credits awarded pursuant to this subsection shall be 33 considered for purposes of calculating the maximum aggregate 34 tax credits awarded pursuant to subsection 1 in the immediately 35 -7- LSB 1410SZ (2) 91 nls/ko 7/ 23

S.F. 622 succeeding fiscal year. 1 DIVISION VI 2 HOMELESSNESS —— IOWA FINANCE AUTHORITY 3 Sec. 25. Section 16.5F, subsection 3, Code 2025, is amended 4 to read as follows: 5 3. a. The authority shall may adopt rules pursuant to 6 chapter 17A for carrying out the duties of the authority 7 pursuant to this section . 8 b. The authority shall may establish internal rules of 9 procedure consistent with the provisions of this section . 10 c. Rules adopted or internal rules of procedure established 11 pursuant to paragraph “a” or “b” shall be consistent with the 12 requirements of the federal McKinney-Vento Homeless Assistance 13 Act, 42 U.S.C. §11301 et seq. 14 DIVISION VII 15 TITLE GUARANTY BOARD —— ELIMINATION 16 Sec. 26. Section 16.1A, subsection 5, Code 2025, is amended 17 to read as follows: 18 5. The board may, by resolution, delegate to the 19 agricultural development board , title guaranty division board , 20 director, or other authority employee such of its powers, under 21 such terms and conditions, as it deems appropriate. 22 Sec. 27. Section 16.2A, Code 2025, is amended by striking 23 the section and inserting in lieu thereof the following: 24 16.2A Title guaranty division. 25 A title guaranty division is created within the authority. 26 The division may also be referred to as Iowa title guaranty. 27 The powers of the division relating to the issuance of 28 title guaranties are vested in and shall be exercised by the 29 board. The director shall appoint an attorney as director 30 of the division. The appointment of, and compensation for, 31 the division director shall be exempt from the merit system 32 under chapter 8A, subchapter IV, part 2. The net earnings of 33 the division, beyond that necessary for reserves, backing, 34 guaranties issued, or to otherwise implement the public 35 -8- LSB 1410SZ (2) 91 nls/ko 8/ 23

S.F. 622 purposes and programs authorized, shall not inure to the 1 benefit of any person other than the state and are subject to 2 section 16.2, subsection 9. 3 Sec. 28. Section 16.91, subsections 1, 3, and 6, Code 2025, 4 are amended to read as follows: 5 1. The authority , through the Iowa title guaranty division , 6 shall initiate and operate a program in which the division 7 shall offer guaranties of real property titles in this state. 8 The terms, conditions, and form of the guaranty contract shall 9 be forms approved by the division board. The division shall 10 fix a charge for the guaranty in an amount sufficient to permit 11 the program to operate on a self-sustaining basis, including 12 payment of administrative costs and the maintenance of an 13 adequate reserve against claims under the Iowa title guaranty 14 program. A title guaranty fund is created in the office of 15 the treasurer of state. Funds collected under this program 16 shall be placed in the title guaranty fund and are available 17 to pay all claims, necessary reserves and all administrative 18 costs of the Iowa title guaranty program. Moneys in the fund 19 shall not revert to the general fund and interest on the moneys 20 in the fund shall be deposited in the housing trust fund 21 established created in section 16.181 and shall not accrue to 22 the general fund. If the authority board in consultation with 23 the division board determines that there are surplus funds in 24 the title guaranty fund after providing for adequate reserves 25 and operating expenses of the division, the surplus funds shall 26 be transferred to the housing assistance fund created pursuant 27 to section 16.40 . 28 3. With the approval of the authority board , the division 29 and its board shall consult with the insurance division of the 30 department of insurance and financial services in developing 31 a guaranty contract acceptable to the secondary market and 32 developing any other feature of the program with which the 33 insurance division may have special expertise. Except as 34 provided in this subsection , the Iowa title guaranty program 35 -9- LSB 1410SZ (2) 91 nls/ko 9/ 23

S.F. 622 is not subject to the jurisdiction of or regulation by the 1 insurance division or the commissioner of insurance. 2 6. Prior to the issuance of a title guaranty, the division 3 shall require evidence that an abstract of title to the 4 property in question has been brought up-to-date and certified 5 by a participating abstractor in a form approved by division 6 rules acceptable to the division, and a title opinion issued by 7 a participating attorney in the form approved in the rules a 8 form acceptable to the division stating the attorney’s opinion 9 as to the title. The division shall require evidence of the 10 abstract being brought up-to-date and the abstractor shall 11 retain evidence of the abstract as determined by the board 12 division . 13 Sec. 29. Section 16.92, subsection 1, paragraph d, Code 14 2025, is amended by striking the paragraph. 15 Sec. 30. Section 16.92, subsection 1, paragraph e, Code 16 2025, is amended to read as follows: 17 e. “Mortgage” means a mortgage or mortgage lien on an 18 interest in real property in this state given to secure a loan 19 in an original principal amount equal to or less than the 20 maximum principal amount as determined by the division board 21 and adopted by the authority pursuant to rules promulgated 22 under chapter 17A . 23 Sec. 31. Section 16.93, subsection 1, unnumbered paragraph 24 1, Code 2025, is amended to read as follows: 25 The authority , through the Iowa title guaranty division , 26 may issue a closing protection letter to a person to whom a 27 proposed title guaranty is to be issued, upon the request of 28 the person, if the division issues a commitment for title 29 guaranty or title guaranty certificate. The closing protection 30 letter shall conform to the terms of coverage and form of the 31 instrument as approved by the division board and may indemnify 32 a person to whom a proposed title guaranty is to be issued 33 against loss of settlement funds due to only the following acts 34 of the division’s named participating attorney, participating 35 -10- LSB 1410SZ (2) 91 nls/ko 10/ 23

S.F. 622 abstractor, or closer: 1 Sec. 32. Section 16.93, subsection 3, Code 2025, is amended 2 to read as follows: 3 3. The division board shall establish the amount of coverage 4 to be provided and may distinguish between classes of property 5 including, but not limited to, residential, agricultural, or 6 commercial, provided that the total amount of coverage provided 7 by the closing protection letter shall not exceed the amount 8 of the commitment or title guaranty to be issued. Liability 9 under the closing protection letter shall be coextensive with 10 liability under the certificate to be issued in connection with 11 a transaction such that payments under the terms of the closing 12 protection letter shall reduce by the same amount the liability 13 under the title guaranty certificate and payment under the 14 title guaranty certificate shall reduce the liability under the 15 terms of the closing protection letter. 16 DIVISION VIII 17 ARTS AND CULTURE 18 Sec. 33. Section 15.108, subsection 7, Code 2025, is amended 19 to read as follows: 20 7. Cultural affairs. To develop the state’s interest in 21 the areas of the arts, history, and other cultural matters. To 22 carry out this responsibility, the authority shall: 23 a. Accept, receive, and administer grants or other funds or 24 gifts from public or private agencies, including the federal 25 government, for the authority. 26 b. Administer the Iowa cultural trust, as advised and 27 assisted by the Iowa arts council, as provided in subchapter 28 II, part 30 , and do all of the following: 29 (1) Develop and adopt by rule criteria for the issuance 30 of trust fund credits by measuring the efforts of qualified 31 organizations to increase their endowment or other resources 32 for the promotion of the arts, history, or the sciences and 33 humanities in Iowa. For purposes of this paragraph, “qualified 34 organization” means a tax-exempt, nonprofit organization 35 -11- LSB 1410SZ (2) 91 nls/ko 11/ 23

S.F. 622 whose primary mission is to promote the arts, history, or the 1 sciences and humanities in Iowa. If the authority determines 2 that a qualified organization has increased the amount of the 3 qualified organization’s endowment and other resources, the 4 authority shall certify the amount of increase in the form of 5 trust fund credits to the treasurer, who shall deposit in the 6 Iowa cultural trust fund, from moneys received for purposes 7 of the trust fund as provided in section 15.479, subsection 8 2 , an amount equal to the trust fund credits. If the amount 9 of the trust fund credits issued by the authority exceeds the 10 amount of moneys available to be deposited in the trust fund as 11 provided in section 15.479, subsection 2 , the outstanding trust 12 fund credits shall not expire but shall be available to draw 13 down additional moneys which become available to be deposited 14 in the trust fund as provided in section 15.479, subsection 2 . 15 (2) Develop and implement, in accordance with subchapter 16 II, part 30 , a grant application process for grants issued to 17 qualified organizations. 18 (3) Develop and adopt by rule criteria for the approval of 19 Iowa cultural trust grants. The criteria shall include but 20 shall not be limited to the future stability and sustainability 21 of a qualified organization. 22 (4) Compile, in consultation with the Iowa arts council, 23 a list of grant applications recommended for funding in 24 accordance with the amount available for distribution as 25 provided in section 15.481, subsection 3 . 26 (5) Monitor the allocation and use of grant moneys by all 27 qualified organizations to determine whether moneys are used 28 in accordance with the provisions of this paragraph “b” and 29 subchapter II, part 30 . 30 c. b. Design a comprehensive, statewide, long-range plan 31 with the assistance of the Iowa arts council to develop the 32 arts in Iowa. The authority is designated as the state agency 33 for carrying out the plan. 34 d. c. By rule, establish Establish advisory groups as 35 -12- LSB 1410SZ (2) 91 nls/ko 12/ 23

S.F. 622 necessary for the receipt of federal funds or grants or the 1 administration of any of the authority’s programs. 2 e. Develop and implement fee-based educational programming 3 opportunities, including preschool programs, related to arts, 4 history, and other cultural matters for Iowans of all ages. 5 f. Conduct surveys of existing art and cultural programs 6 and activities within the state, including but not limited to 7 music, theater, dance, painting, sculpture, architecture, and 8 allied arts and crafts. The authority shall submit, or include 9 as part of the annual report under section 15.107B , a report 10 on the survey to the governor and to the general assembly no 11 later than ten calendar days after the commencement of each 12 first session of the general assembly recommending appropriate 13 legislation or other action as the authority deems appropriate. 14 g. d. Establish and administer a film office. The purpose 15 of the film office is to assist legitimate film, television, 16 and video producers in Provide technical assistance for the 17 production of film, television, and video projects in the 18 state , and to increase the fiscal impact on the state’s economy 19 of film, television, and video projects produced in the state . 20 Sec. 34. Section 15.274, Code 2025, is amended to read as 21 follows: 22 15.274 Promotional program for national historic landmarks 23 and cultural and entertainment districts. 24 The economic development authority, in cooperation with 25 the state department of transportation, shall establish 26 and administer a program designed to promote knowledge of 27 and access to buildings, sites, districts, structures, and 28 objects located in this state that have been designated by the 29 secretary of the interior of the United States as a national 30 historic landmark, unless the national historic landmark is 31 protected under section 22.7, subsection 20 , and certified 32 cultural and entertainment districts, as established pursuant 33 to section 15.438 . The program shall be designed to maximize 34 the visibility and visitation of national historic landmarks 35 -13- LSB 1410SZ (2) 91 nls/ko 13/ 23

S.F. 622 in this state and buildings, sites, structures, and objects 1 located in certified cultural and entertainment districts, 2 as established pursuant to section 15.438 . Methods used to 3 maximize the visibility and visitation of such locations may 4 include the use of tourism literature, signage on highways, 5 maps of the state and cities, and internet sites. For purposes 6 of this section , “highway” means the same as defined in section 7 325A.1 . 8 Sec. 35. Section 15.436, Code 2025, is amended by striking 9 the section and inserting in lieu thereof the following: 10 15.436 Arts and culture enhancement fund. 11 1. The economic development authority shall, pursuant 12 to section 15.106A, subsection 1, paragraph “o” , establish 13 the arts and culture enhancement fund to be used for the 14 purposes of this section. The fund shall consist of any moneys 15 appropriated by the general assembly for purposes of this 16 section and any other moneys that are lawfully available to 17 the authority. Notwithstanding section 12C.7, subsection 2, 18 interest or earnings on moneys in the fund shall accrue to 19 the authority and shall be used for purposes of this section. 20 Notwithstanding section 8.33, moneys in the fund at the end of 21 each fiscal year shall not revert to any other fund but shall 22 remain in the fund for expenditure for subsequent fiscal years. 23 2. The authority shall allocate moneys in the arts and 24 culture enhancement fund in appropriate amounts to be used for 25 the following purposes: 26 a. To provide support to municipal and nonprofit arts and 27 cultural organizations that serve as significant attractions 28 or community resources. 29 b. To support artists and entities that foster artistic and 30 cultural expression, promote lifelong learning and engagement 31 in the arts, advance community development goals, or emphasize 32 Iowa’s diverse heritage through the creation, performance, or 33 presentation of artworks. 34 c. To increase access to arts and culture in rural and 35 -14- LSB 1410SZ (2) 91 nls/ko 14/ 23

S.F. 622 underserved communities in the state. 1 d. For the promotion of and investment in film, television, 2 and video projects produced in the state. 3 e. To address other goals and priorities as reflected in 4 the comprehensive, statewide, long-range plan designed by the 5 authority with the assistance of the Iowa arts council pursuant 6 to section 15.108, subsection 7. 7 f. For administrative costs related to this section. 8 3. The authority may adopt by rule eligibility and priority 9 criteria for allocation of moneys in the arts and culture 10 enhancement fund. 11 Sec. 36. Section 15.465, subsection 2, Code 2025, is amended 12 to read as follows: 13 2. The term of office of each member of the Iowa arts 14 council is three years. The governor shall designate council 15 may elect a chairperson and a vice chairperson from the members 16 of the council to serve at the pleasure of the governor . All 17 vacancies shall be filled for the balance of any unexpired term 18 in the same manner as original appointments. The members of 19 the council shall not receive compensation for their services, 20 but shall be reimbursed for their actual and necessary expenses 21 incurred in the performance of their duties as members of the 22 council. Members may also be eligible for compensation as 23 provided in section 7E.6 . 24 Sec. 37. Section 15.466, Code 2025, is amended to read as 25 follows: 26 15.466 Duties of Iowa arts council. 27 The Iowa arts council shall review programs to be supported 28 and make recommendations on the programs to the director to 29 ensure that Iowa citizens and communities have access to the 30 cultural, civic, economic, and educational benefits of the 31 arts . The council may solicit public input including but not 32 limited to input on the comprehensive, statewide, long-range 33 plan created by the authority with the assistance of the Iowa 34 arts council pursuant to section 15.108, subsection 7. 35 -15- LSB 1410SZ (2) 91 nls/ko 15/ 23

S.F. 622 Sec. 38. Section 15H.6, subsection 3, Code 2025, is amended 1 to read as follows: 2 3. The capacity building activities shall be targeted in 3 communities that are already working with existing community 4 improvement programs, including but not limited to the Iowa 5 great places program established under section 15.439 , the 6 green streets and main street Iowa programs administered by 7 the economic development authority, and disaster remediation 8 activities by communities located within an area declared to be 9 a disaster area in a declaration issued by the president of the 10 United States or the governor. 11 Sec. 39. Section 99F.11, subsection 4, paragraph d, 12 subparagraph (1), Code 2025, is amended to read as follows: 13 (1) Five hundred twenty thousand dollars is appropriated 14 each fiscal year to the economic development authority with 15 one-half of the moneys allocated for operational support grants 16 and the remaining one-half allocated for the community cultural 17 grants program established under for deposit in the arts and 18 culture enhancement fund established in section 15.436 . 19 Sec. 40. REPEAL. Sections 15.437, 15.438, 15.439, 15.440, 20 15.441, 15.476, 15.477, 15.478, 15.479, 15.481, and 15.482, 21 Code 2025, are repealed. 22 Sec. 41. TRANSFER OF MONEYS. On the effective date of this 23 division of this Act, all unencumbered and unobligated moneys 24 remaining in the Iowa great places program fund created in 25 section 15.440, the Iowa cultural trust fund created in section 26 15.479, and the Iowa cultural trust grant account created 27 in section 15.482 are transferred to the arts and culture 28 enhancement fund established pursuant to section 15.436, as 29 amended by this division of this Act. 30 DIVISION IX 31 CONFORMING CHANGES 32 Sec. 42. Section 16.6, subsection 4, Code 2025, is amended 33 to read as follows: 34 4. The director may establish administrative divisions 35 -16- LSB 1410SZ (2) 91 nls/ko 16/ 23

S.F. 622 within the authority in order to most efficiently and 1 effectively carry out the authority’s responsibilities, 2 provided that any creation or modification of authority 3 divisions be established only after consultation with the board 4 of the authority . 5 Sec. 43. Section 16.64, subsection 1, Code 2025, is amended 6 to read as follows: 7 1. The authority shall publish a notice of intention to 8 issue bonds or notes. After sixty days from the date of 9 publication of the notice, an action shall not be brought 10 questioning the legality of any bonds or notes or the power of 11 the authority to issue any bonds or notes or to the legality 12 of any proceedings in connection with the authorization or 13 issuance of the bonds or notes after determination by the board 14 of the authority to proceed with the issuance of the bonds or 15 notes. 16 DIVISION X 17 IOWA REINVESTMENT ACT —— DISTRICT ESTABLISHMENT 18 Sec. 44. Section 15J.4, subsection 1, paragraph c, Code 19 2025, is amended to read as follows: 20 c. For districts approved before July 1, 2018, the area 21 consists of contiguous parcels and does not exceed twenty-five 22 acres in total. For districts approved on or after July 1, 23 2020, the area consists of contiguous parcels and does not 24 exceed seventy-five one hundred twenty-five acres in total. 25 Sec. 45. RETROACTIVE APPLICABILITY. This division of this 26 Act applies retroactively to July 1, 2020. 27 EXPLANATION 28 The inclusion of this explanation does not constitute agreement with 29 the explanation’s substance by the members of the general assembly. 30 This bill relates to matters under the purview of the 31 economic development authority and the Iowa finance authority 32 including the strategic infrastructure program, brownfield, 33 grayfield, and redevelopment tax credits, community attraction 34 and tourism, vision Iowa, sports tourism marketing, the 35 -17- LSB 1410SZ (2) 91 nls/ko 17/ 23

S.F. 622 historic preservation tax credit, homelessness, the title 1 guaranty board, arts and culture, and the Iowa reinvestment 2 Act. 3 Division I eliminates the requirement that the Iowa 4 innovation council review and make recommendations on all 5 applications received by the Iowa economic development 6 authority (IEDA) for financial assistance under the Iowa 7 strategic infrastructure program, and instead requires a 8 committee appointed by the IEDA director to conduct a review 9 and make recommendations. 10 Division II repeals the brownfield redevelopment program, 11 fund, and advisory council (council). 12 The bill requires that the amount of a redevelopment tax 13 credit be determined by members of the IEDA appointed by the 14 governor (the board), rather than determined by the board 15 in conjunction with the council as required under current 16 law. The IEDA shall accept and review applications for the 17 redevelopment tax credit and make award recommendations to 18 the board, rather than accept and review applications in 19 conjunction with the council as required under current law. 20 IEDA may engage outside experts to complete a technical, 21 financial, or other review. The bill makes conforming changes 22 related to elimination of the council. 23 Under current law, upon completion of a registered project 24 for redevelopment tax credits, an audit of the project 25 completed by an independent certified public accountant (CPA) 26 shall be submitted to the IEDA. Under the bill, the investor 27 shall engage a CPA to conduct an examination of the project 28 and submit the examination, and a statement of the amount of 29 final qualifying investments, to the IEDA. Upon review of the 30 examination and statement, the IEDA may issue a tax credit 31 certificate to the investor. 32 On the effective date of the bill, all unencumbered and 33 unobligated moneys remaining in the brownfield redevelopment 34 fund are transferred to a fund or funds established pursuant to 35 -18- LSB 1410SZ (2) 91 nls/ko 18/ 23