House File 2770 - Reprinted HOUSE FILE BY COMMITTEE ON WAYS AND MEANS (SUCCESSOR TO HF 2736) (SUCCESSOR TO HF 2497) Passed House, Date Passed Senate, Date Vote: Ayes Nays Vote: Ayes Nays Approved A BILL FOR 1 An Act relating to economic development by creating a technology 2 and commercialization resource organization, providing tax 3 incentives under the high quality job creation Act, and 4 providing an exempt activity for foreign corporations, and 5 including effective and retroactive applicability date 6 provisions. 7 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 8 HF 2770 9 tm/es/25 PAG LIN 1 1 Section 1. Section 15.335A, Code Supplement 2005, is 1 2 amended by adding the following new subsection: 1 3 NEW SUBSECTION. 7. a. In calculating the annual wage, 1 4 including benefits, pursuant to subsection 1, the department 1 5 shall not require a certain wage level, without benefits, to 1 6 be met. 1 7 b. In calculating the value of benefits pursuant to 1 8 subsection 1, if an employer offers medical insurance under 1 9 both single and family coverage plans, the employer shall be 1 10 given credit for providing medical insurance under family 1 11 coverage plans to all new high=quality jobs employees. 1 12 Sec. 2. Section 15G.112, subsection 1, Code Supplement 1 13 2005, is amended to read as follows: 1 14 1. In order to receive financial assistance from the 1 15 department from moneys appropriated from the grow Iowa values 1 16 fund, the average annual wage, including benefits, of new jobs 1 17 created must be equal to or greater than one hundred thirty 1 18 percent of the average county wage. The department shall not 1 19 require any other wage level to be met. For purposes of this 1 20 section, "average county wage" and "benefits" mean the same as 1 21 defined in section 15I.1. 1 22 Sec. 3. Section 15G.112, Code Supplement 2005, is amended 1 23 by adding the following new subsection: 1 24 NEW SUBSECTION. 1A. If a project is located in any 1 25 nonmetropolitan county or group of contiguous counties the 1 26 majority of which includes nonmetropolitan counties, an 1 27 applicant may qualify by meeting one of the following wage 1 28 threshold requirements in lieu of the wage threshold 1 29 requirement in subsection 1: 1 30 a. The average hourly wage of new jobs created must be 1 31 equal to or greater than one hundred thirty percent of one of 1 32 the following: 1 33 (1) For a single county, the average new hire hourly wage 1 34 over a three calendar quarter period. 1 35 (2) For a region, the average of all contiguous counties 2 1 average new hire hourly wage over a three calendar quarter 2 2 period. 2 3 b. The average hourly wage, including benefits, of new 2 4 jobs created must be equal to or greater than one hundred 2 5 fifty percent of one of the following: 2 6 (1) For a single county, the average new hire hourly wage 2 7 over a three calendar quarter period. 2 8 (2) For a region, the average of all contiguous counties 2 9 average new hire hourly wage over a three calendar quarter 2 10 period. 2 11 For purposes of this subsection, the wage thresholds shall 2 12 be determined by utilizing wage data available from the local 2 13 employment dynamics program of the department of workforce 2 14 development. The method for calculating the wage threshold 2 15 shall be based on local employment dynamics program data for 2 16 all industry sectors and all public and private entities. 2 17 For purposes of this subsection, "metropolitan county" 2 18 means a county included in the standard metropolitan 2 19 statistical areas as determined by the United States census 2 20 bureau. 2 21 Sec. 4. Section 15I.1, subsection 2, paragraph a, Code 2 22 Supplement 2005, is amended to read as follows: 2 23 a. Medical and dental insurance plans. If an employer 2 24 offers medical insurance under both single and family coverage 2 25 plans, the employer shall be given credit for providing 2 26 medical insurance under family coverage plans to all new 2 27 employees. 2 28 Sec. 5. NEW SECTION. 262B.21 RESEARCH AND DEVELOPMENT 2 29 PLATFORMS. 2 30 1. For purposes of this section, and sections 262B.22 and 2 31 262B.23, "core platform areas" means the areas of advanced 2 32 manufacturing, biosciences, information solutions, and 2 33 financial services. 2 34 2. The state board of regents shall do all of the 2 35 following: 3 1 a. Recruit employees, build capacity, and invest moneys to 3 2 ensure rapid scientific progress in the core platform areas. 3 3 b. Create endowed chair positions and employ persons with 3 4 entrepreneurial expertise. 3 5 c. Invest in technology development infrastructure to 3 6 strengthen and accelerate the scientific and commercialization 3 7 work in the core platform areas. 3 8 d. Provide financial assistance in the form of grants for 3 9 purposes of accelerating the transformation of new and ongoing 3 10 research and development initiatives in the core platform 3 11 areas into commercial opportunities. 3 12 e. Actively participate in advisory groups dedicated to 3 13 the areas of bioscience advanced manufacturing, and 3 14 information solutions. 3 15 Sec. 6. NEW SECTION. 262B.22 TECHNOLOGY AND 3 16 COMMERCIALIZATION RESOURCE ORGANIZATION. 3 17 1. The general assembly finds and declares that the public 3 18 good requires that Iowa successfully participate and compete 3 19 in the emerging world economy. A technology and 3 20 commercialization resource organization is established to 3 21 formulate and implement plans and programs for the core 3 22 platform areas and to facilitate their commercial application 3 23 within the state. 3 24 2. The technology and commercialization resource 3 25 organization shall receive recommendations for research 3 26 projects which have commercialization potential from 3 27 institutions of higher learning under the control of the state 3 28 board of regents. In cooperation with commercialization 3 29 experts in the private sector, the organization shall analyze 3 30 research project submissions and make recommendations 3 31 regarding which projects should receive funding and how much 3 32 funding such projects should receive. The recommendations of 3 33 the organization shall be forwarded to the state board of 3 34 regents. The state board of regents shall review the 3 35 recommendations and may approve, deny, or modify the 4 1 recommendations, but the state board of regents shall not 4 2 change the primary focus of the proposal. The state board of 4 3 regents may award financial assistance to approved research 4 4 projects. 4 5 3. A technology and commercialization resource 4 6 organization shall be incorporated under chapter 504. The 4 7 organization shall not be regarded as a state agency, except 4 8 for purposes of chapter 17A. A member of the board of 4 9 directors is not considered a state employee, except for 4 10 purposes of chapter 669. A natural person employed by the 4 11 organization is a state employee for purposes of the Iowa 4 12 public employees' retirement system, state health and dental 4 13 plans, and other state employee benefit plans and chapter 669. 4 14 Chapters 8, 8A, and 20, and other provisions of law that 4 15 relate to requirements or restrictions dealing with state 4 16 personnel or state funds, do not apply to the organization or 4 17 any employees of the board of directors or the organization 4 18 except to the extent provided in this chapter. 4 19 4. The board of directors of the organization shall 4 20 consist of eight voting members as follows: 4 21 a. The president of the state board of regents. 4 22 b. The three members of the economic development 4 23 subcommittee of the state board of regents. 4 24 c. The chief technology officer of the state. 4 25 d. One member selected by a biosciences development 4 26 organization designated by the department of economic 4 27 development pursuant to section 15G.111, subsection 2. 4 28 e. The chairperson of the advanced manufacturing steering 4 29 group of the department of economic development. 4 30 f. The chairperson of the information solutions steering 4 31 group of the department of economic development. 4 32 5. The members of the board of directors shall annually 4 33 elect a president of the board from the board membership. A 4 34 vacancy shall be filled by the appointing authority. Members 4 35 are eligible for actual expense reimbursement while fulfilling 5 1 duties of the board. 5 2 Sec. 7. NEW SECTION. 262B.23 ENDOWED CHAIRS AND 5 3 SALARIES. 5 4 1. The state board of regents may use for salaries and may 5 5 create endowed chair positions at each of the regents 5 6 universities using, in part, moneys appropriated to the state 5 7 board of regents for purposes of implementing recommendations 5 8 provided in separate consultant reports on bioscience, 5 9 advanced manufacturing, and information technology submitted 5 10 to the department of economic development in the calendar 5 11 years 2004 and 2005. Such moneys may only be used to 5 12 partially fund an endowed chair position if significant 5 13 private contributions and contributions from governmental 5 14 entities other than the state and political subdivisions of 5 15 the state are used to fund the position. Not more than fifty 5 16 percent of the cost of funding an endowed chair position shall 5 17 be paid with such moneys. The endowed chair positions shall 5 18 be used to attract scholars recruited nationally and 5 19 internationally who can bring with them related start=up 5 20 business ventures or a concept for near=term 5 21 commercialization. 5 22 Sec. 8. Section 422.34A, Code 2005, is amended by adding 5 23 the following new subsection: 5 24 NEW SUBSECTION. 8. Utilizing a distribution facility 5 25 within this state, owning or leasing property at a 5 26 distribution facility within this state that is used at or 5 27 distributed from the distribution facility, or selling 5 28 property shipped or distributed from a distribution facility. 5 29 For purposes of this subsection, "distribution facility" means 5 30 an establishment where shipments of tangible personal property 5 31 are processed for delivery to customers. "Distribution 5 32 facility" does not include an establishment where retail sales 5 33 of tangible personal property or returns of such property are 5 34 undertaken with respect to retail customers on more than 5 35 twelve days a year except for a distribution facility which 6 1 processes customer sales orders by mail, telephone, or 6 2 electronic means, if the distribution facility also processes 6 3 shipments of tangible personal property to customers provided 6 4 that not more than ten percent of the dollar amount of goods 6 5 are delivered and shipped so as to be included in the gross 6 6 sales of the corporation within this state as provided in 6 7 section 422.33, subsection 2, paragraph "b", subparagraph (6). 6 8 Sec. 9. EFFECTIVE AND RETROACTIVE APPLICABILITY DATE. 6 9 1. The section of this Act amending section 15.335A, being 6 10 deemed of immediate importance, takes effect upon enactment 6 11 and applies retroactively to June 9, 2005. 6 12 2. The section of this Act enacting section 422.34A, 6 13 subsection 8, being deemed of immediate importance, takes 6 14 effect upon enactment and applies retroactively to January 1, 6 15 2006, for tax years beginning on or after that date. 6 16 HF 2770 6 17 tm:rj/es/25