Senate File 2308 - Reprinted SENATE FILE 2308 BY COMMITTEE ON ECONOMIC GROWTH/REBUILD IOWA (SUCCESSOR TO SSB 3110) (As Amended and Passed by the Senate March 6, 2012 ) A BILL FOR An Act relating to economic development by affecting programs, 1 tax incentives, and project completion and other assistance 2 administered by the economic development authority, by 3 abolishing the film tax credit program, by replacing 4 references to the economic development fund and financial 5 assistance program, and by providing spending authority, 6 by providing for properly related matters, and including 7 effective date and retroactive and other applicability 8 provisions. 9 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 10 SF 2308 (4) 84 ad/sc/jh

S.F. 2308 DIVISION I 1 HIGH QUALITY JOBS PROGRAM AND RELATED ASSISTANCE AND PROGRAMS 2 Section 1. Section 15.327, subsections 2, 5, 7, 8, 10, 12, 3 and 13, Code Supplement 2011, are amended to read as follows: 4 2. “Benefit” has the same meaning as defined in section 5 15G.101 means nonwage compensation provided to an employee . 6 Benefits typically include medical and dental insurance 7 plans, pension, retirement, and profit-sharing plans, child 8 care services, life insurance coverage, vision insurance 9 coverage, disability insurance coverage, and any other nonwage 10 compensation as determined by the board. 11 5. “Created job” has the same meaning as defined in section 12 15G.101 means a new, permanent, full-time equivalent position 13 added to a business’s payroll in excess of the business’s base 14 employment level . 15 7. “Fiscal impact ratio” has the same meaning as defined 16 in section 15G.101 means a ratio calculated by estimating the 17 amount of taxes to be received from a business by the state 18 and dividing the estimate by the estimated cost to the state 19 of providing certain project completion assistance and tax 20 incentives to the business, reflecting a ten-year period and 21 expressed in terms of current dollars . For purposes of the 22 program, “fiscal impact ratio” does not include taxes received 23 by political subdivisions. 24 8. “Maintenance period completion date” has the same meaning 25 as defined in section 15G.101 means the date on which the 26 maintenance period ends . 27 10. “Project completion date” has the same meaning as 28 defined in section 15G.101 means the date by which a recipient 29 of project completion assistance has agreed to meet all the 30 terms and obligations contained in an agreement with the 31 authority . 32 12. “Qualifying wage threshold” has the same meaning as 33 defined in section 15G.101 means the laborshed wage for an 34 eligible business . 35 -1- SF 2308 (4) 84 ad/sc/jh 1/ 25

S.F. 2308 13. “Retained job” has the same meaning as defined in 1 section 15G.101 means a full-time equivalent position, in 2 existence at the time an employer applies for financial 3 assistance which remains continuously filled and which is at 4 risk of elimination if the project for which the employer is 5 seeking assistance does not proceed . 6 Sec. 2. Section 15.327, Code Supplement 2011, is amended by 7 adding the following new subsections: 8 NEW SUBSECTION . 1A. “Base employment level” means the 9 number of full-time equivalent positions at a business, 10 as established by the authority and a business using the 11 business’s payroll records, as of the date a business applies 12 for incentives or project completion assistance under the 13 program. 14 NEW SUBSECTION . 2A. “Business engaged in disaster recovery” 15 means a business located in an area declared a disaster area 16 by a federal official, that has sustained substantial physical 17 damage, that has closed as the result of a natural disaster, 18 and that has a plan for reopening that includes employing a 19 substantial number of the employees the business employed 20 before the natural disaster occurred. 21 NEW SUBSECTION . 6A. “Financial assistance” means assistance 22 provided only from the funds, rights, and assets legally 23 available to the authority pursuant to this chapter and 24 includes but is not limited to assistance in the form of 25 grants, loans, forgivable loans, and royalty payments. 26 NEW SUBSECTION . 7A. “Full-time equivalent position” means 27 a non-part-time position for the number of hours or days per 28 week considered to be full-time work for the kind of service 29 or work performed for an employer. Typically, a full-time 30 equivalent position requires two thousand eighty hours of work 31 in a calendar year, including all paid holidays, vacations, 32 sick time, and other paid leave. 33 NEW SUBSECTION . 7B. “Fund” means a fund created pursuant 34 to section 15.335B. 35 -2- SF 2308 (4) 84 ad/sc/jh 2/ 25

S.F. 2308 NEW SUBSECTION . 7C. “Laborshed wage” means the wage level 1 represented by those wages within two standard deviations 2 from the mean wage within the laborshed area in which the 3 eligible business is located, as calculated by the authority, 4 by rule, using the most current covered wage and employment 5 data available from the department of workforce development for 6 the laborshed area. 7 NEW SUBSECTION . 7D. “Maintenance period” means the period 8 of time between the project completion date and the maintenance 9 period completion date. 10 NEW SUBSECTION . 8A. “Necessary physical infrastructure 11 project” means a project that creates necessary infrastructure 12 for economic success throughout Iowa, provides the foundation 13 for the creation of jobs, and involves the investment of 14 a substantial amount of capital. Physical infrastructure 15 projects include but are not limited to projects involving 16 any mode of transportation; public works and utilities such 17 as sewer, water, power, or telecommunications; physical 18 improvements that mitigate, prevent, or eliminate environmental 19 contamination; and other similar projects deemed to be physical 20 infrastructure by the authority. 21 NEW SUBSECTION . 9A. “Program support” means the services 22 necessary for the efficient administration of this part, 23 including the delivery of program services to eligible 24 businesses. “Program support” may include the administrative 25 costs of providing project assistance, conducting a statewide 26 laborshed study in coordination with the department of 27 workforce development, outreach to business and marketing of 28 programs, the procurement of technical assistance, and the 29 implementation of information technology. 30 NEW SUBSECTION . 9B. “Project completion assistance” means 31 financial assistance or technical assistance provided to 32 an eligible business in order to facilitate the start-up, 33 location, or expansion of the business in this state and 34 provided in an expedient manner to ensure the successful 35 -3- SF 2308 (4) 84 ad/sc/jh 3/ 25

S.F. 2308 completion of the start-up, location, or expansion project. 1 NEW SUBSECTION . 10A. “Project completion period” means the 2 period of time between the date financial assistance is awarded 3 and the project completion date. 4 Sec. 3. Section 15.329, subsection 1, unnumbered paragraph 5 1, Code Supplement 2011, is amended to read as follows: 6 To be eligible to receive incentives or assistance 7 under this part, a business shall meet all of the following 8 requirements: 9 Sec. 4. Section 15.329, subsection 1, paragraph b, Code 10 Supplement 2011, is amended to read as follows: 11 b. (1) The business has not closed or substantially 12 reduced operations in one area of this state and relocated 13 substantially the same operations in a community in another 14 area of this state shall not be solely relocating operations 15 from one area of the state while seeking state or local 16 incentives . A project that does not create new jobs or 17 involve a substantial amount of new capital investment shall 18 be presumed to be a relocation. In determining whether a 19 business is solely relocating operations for purposes of this 20 subparagraph, the authority shall consider a letter of support 21 for the move from the affected local community. 22 (2) The business shall not be in the process of reducing 23 operations in one community while simultaneously applying 24 for assistance under the program. For purposes of this 25 subparagraph, a reduction in operations within twelve months 26 before or after an application for assistance is submitted to 27 the authority shall be presumed to be a reduction in operations 28 while simultaneously applying for assistance under the program. 29 (3) This paragraph shall not be construed to prohibit 30 a business from expanding its operation in a community if 31 existing operations of a similar nature in this state are not 32 closed or substantially reduced. 33 Sec. 5. Section 15.329, subsection 1, paragraph c, 34 subparagraphs (1) and (2), Code Supplement 2011, are amended 35 -4- SF 2308 (4) 84 ad/sc/jh 4/ 25

S.F. 2308 to read as follows: 1 (1) If the business is creating jobs, the business shall 2 demonstrate that the jobs will pay at least one hundred percent 3 of the qualifying wage threshold at the start of the project 4 completion period, at least one hundred thirty twenty percent 5 of the qualifying wage threshold by the project completion 6 date, and at least one hundred thirty twenty percent of 7 the qualifying wage threshold until the maintenance period 8 completion date. 9 (2) If the business is retaining jobs, the business 10 shall demonstrate that the jobs retained will pay at least 11 one hundred thirty twenty percent of the qualifying wage 12 threshold throughout both the project completion period and the 13 maintenance period. 14 Sec. 6. Section 15.329, subsection 2, Code Supplement 2011, 15 is amended by striking the subsection. 16 Sec. 7. Section 15.330, Code Supplement 2011, is amended to 17 read as follows: 18 15.330 Agreement. 19 A business shall enter into an agreement with the authority 20 specifying the requirements that must be met to confirm 21 eligibility pursuant to this part. The authority shall may 22 consult with the community during negotiations relating to the 23 agreement. The agreement shall contain, at a minimum, the 24 following provisions: 25 1. A business that is approved to receive incentives 26 or assistance under this part shall, for the length of the 27 agreement, certify annually to the authority the compliance of 28 the business with the requirements of the agreement. If the 29 business receives a local property tax exemption, the business 30 shall also certify annually to the community the compliance of 31 the business with the requirements of the agreement. 32 2. The repayment of incentives or financial assistance 33 by the business if the business does not meet any of the 34 requirements of this part or the resulting agreement. 35 -5- SF 2308 (4) 84 ad/sc/jh 5/ 25

S.F. 2308 3. If a business that is approved to receive incentives 1 or assistance under this part experiences a layoff within the 2 state or closes any of its facilities within the state, the 3 authority shall have the discretion to reduce or eliminate 4 some or all of the incentives or assistance . If a business 5 has received incentives or assistance under this part and 6 experiences a layoff within the state or closes any of its 7 facilities within the state, the business may be subject to 8 repayment of all or a portion of the incentives or financial 9 assistance that it has received. 10 4. A project completion date, a maintenance period 11 completion date, the number of jobs to be created or retained, 12 or certain other terms and obligations described in section 13 15G.112, subsection 1 , paragraph “d” , as the authority 14 deems necessary in order to make the requirements in project 15 agreements uniform. The authority, with the approval of 16 the board, may adopt rules as necessary for making such 17 requirements uniform. Such rules shall be in compliance with 18 the provisions of this part and with the provisions of chapter 19 15G . 20 5. The amount and type of project completion assistance to 21 be provided under section 15.335B. 22 6. The amount of matching funds to be received by a business 23 from a city or county. The authority shall adopt by rule a 24 formula for determining the amount of matching funds required 25 under the program. 26 7. The business shall not be relocating or reducing 27 operations as described in section 15.329, subsection 1, 28 paragraph “b” . 29 8. The proposed project shall not negatively impact other 30 businesses in competition with the business being considered 31 for assistance. The authority shall make a good-faith effort 32 to identify existing Iowa businesses within an industry in 33 competition with the business being considered for incentives 34 or assistance. The authority shall make a good-faith effort 35 -6- SF 2308 (4) 84 ad/sc/jh 6/ 25

S.F. 2308 to determine the probability that the proposed incentives or 1 assistance will displace employees of the existing businesses. 2 In determining the impact on businesses in competition with the 3 business being considered for incentives or assistance, jobs 4 created or retained as a result of other jobs being displaced 5 elsewhere in the state shall not be considered direct jobs 6 created or retained. 7 9. A report submitted to the authority with its application 8 describing all violations of environmental law or worker 9 safety law within the last five years. If, upon review of the 10 application, the authority finds that a business has a record 11 of violations of the law, statutes, rules, or regulations that 12 tends to show a consistent pattern, the authority shall not 13 provide incentives or assistance to the business unless the 14 authority finds either that the violations did not seriously 15 affect public health, public safety, or the environment, or, 16 if such violations did seriously affect public health, public 17 safety, or the environment, that mitigating circumstances were 18 present. 19 10. That the business shall only employ individuals legally 20 authorized to work in this state. In addition to any and 21 all other applicable penalties provided by current law, all 22 or a portion of the incentives or assistance received under 23 this part by a business that is found to knowingly employ 24 individuals not legally authorized to work in this state is 25 subject to recapture by the authority or by the department of 26 revenue. 27 11. Any terms deemed necessary by the authority to effect 28 compliance with the eligibility requirements of section 15.329. 29 Sec. 8. NEW SECTION . 15.330A Maintenance of agreements. 30 1. An eligible business receiving incentives or assistance 31 under this part shall meet all terms and obligations in an 32 agreement by the project completion date, but the board may 33 for good cause extend the project completion date or otherwise 34 amend an agreement. 35 -7- SF 2308 (4) 84 ad/sc/jh 7/ 25

S.F. 2308 2. During the maintenance period an eligible business 1 receiving incentives or assistance under this part shall 2 continue to comply with the terms and obligations of an 3 agreement entered into pursuant to section 15.330. 4 3. The authority may enforce the terms of an agreement as 5 necessary and appropriate. 6 Sec. 9. Section 15.335A, subsection 1, unnumbered paragraph 7 1, Code Supplement 2011, is amended to read as follows: 8 Tax incentives are available to eligible businesses as 9 provided in this section . The incentives are based upon the 10 number of jobs created or retained that pay at least one 11 hundred thirty twenty percent of the qualifying wage threshold 12 as computed pursuant to section 15G.112, subsection 4 , and 13 the amount of the qualifying investment made according to the 14 following schedule: 15 Sec. 10. Section 15.335A, subsection 2, paragraphs b, c, 16 f, and g, Code Supplement 2011, are amended by striking the 17 paragraphs. 18 Sec. 11. Section 15.335A, subsections 3 through 5, Code 19 Supplement 2011, are amended to read as follows: 20 3. A community may apply to the economic development 21 authority for a project-specific waiver from the qualifying 22 wage threshold requirement provided in subsection 1 in order to 23 seek tax incentives for an eligible business. The authority 24 may grant a project-specific waiver from the qualifying 25 wage threshold requirement in subsection 1 for the remainder 26 of a calendar year , based on county wage or regional wage 27 calculations brought forth by the applicant county including 28 but not limited to any of the following: 29 a. The county wage calculated without wage data from 30 the business in the county employing the greatest number of 31 full-time employees if the community meets the requirements of 32 an economically distressed community pursuant to 15.335C . 33 b. The regional wage calculated without wage data from up to 34 two adjacent counties. 35 -8- SF 2308 (4) 84 ad/sc/jh 8/ 25

S.F. 2308 c. The county wage calculated without wage data from the 1 largest city in the county. 2 d. A qualifying wage guideline for a specific project based 3 upon unusual economic circumstances present in the city or 4 county. 5 e. The annualized, average hourly wage paid by all 6 businesses in the county located outside the largest city of 7 the county. 8 f. The annualized, average hourly wage paid by all 9 businesses other than the largest employer in the entire 10 county. 11 4. Each calendar year, the authority shall not approve 12 more than three million six hundred thousand dollars worth of 13 investment tax credits for projects with qualifying investments 14 of less than one million dollars. 15 5. 4. The authority shall negotiate the amount of 16 tax incentives provided to an applicant under the program 17 in accordance with this section and section 15G.112 , as 18 applicable . 19 Sec. 12. NEW SECTION . 15.335B Assistance for certain 20 programs and projects. 21 1. a. Under the authority provided in section 15.106A, 22 there shall be established one or more funds within the state 23 treasury, under the control of the authority, to be used for 24 purposes of this section. 25 b. A fund established for purposes of this section shall 26 consist of the moneys appropriated or otherwise provided for 27 purposes of this section. 28 c. Interest or earnings on moneys appropriated or provided 29 to a fund to be used for the purposes of this section, and 30 all repayments or recaptures of the assistance provided under 31 this section, shall accrue to the authority and shall be used 32 for purposes of this section, notwithstanding section 12C.7. 33 Moneys in a fund are not subject to section 8.33. 34 2. a. Moneys appropriated or provided pursuant to 35 -9- SF 2308 (4) 84 ad/sc/jh 9/ 25

S.F. 2308 subsection 1 shall be allocated by the authority in appropriate 1 amounts to be used for the following purposes: 2 (1) For providing project completion assistance to eligible 3 businesses under this part and for program support of such 4 assistance. 5 (2) For providing economic development region financial 6 assistance under section 15E.232, subsections 1, 3, 4, 5, and 7 6. 8 (3) For providing financial assistance for business 9 accelerators pursuant to section 15E.351. 10 (4) For deposit in the innovation and commercialization 11 fund created pursuant to section 15.412. 12 (5) For providing financial assistance to businesses or 13 communities engaged in necessary physical infrastructure 14 projects. 15 (6) For providing financial assistance to businesses 16 engaged in disaster recovery. 17 (7) For providing financial assistance to Iowa’s councils 18 of governments. 19 b. Each fiscal year, the authority shall estimate the 20 amount of revenues available for purposes of this section and 21 shall develop a budget appropriate for the expenditure of the 22 revenues available. 23 3. In providing assistance under this section, the 24 authority shall make a determination as to the amount and 25 type of assistance that is most appropriate for facilitating 26 the successful completion of an eligible business’s project. 27 Before making such a determination, the authority shall do all 28 of the following: 29 a. Consider a business’s eligibility for the tax incentives 30 available under section 15.335A and ensure that the amount of 31 assistance to be provided appropriately complements the amount 32 and type of tax incentives to be provided. 33 b. Consider the amount of private sector investment to be 34 leveraged by the project, including the eligible business’s 35 -10- SF 2308 (4) 84 ad/sc/jh 10/ 25

S.F. 2308 equity investment, debt financing, and any venture capital or 1 foreign investment available, and make a good-faith effort to 2 provide only the amount of incentives and assistance necessary 3 to facilitate the project’s successful completion. 4 c. Consider the amount and type of the local community 5 match. The authority may provide assistance to an early-stage 6 business in a high-growth industry regardless of the amount of 7 local match involved. 8 d. Calculate the fiscal impact ratio of the project and use 9 it to guide the provision of incentives and assistance under 10 this part. 11 e. Evaluate the quality of the project based on the factors 12 described in section 15.329, subsection 5, and any other 13 relevant factors. 14 f. Ensure that the combined amount of incentives and 15 assistance are appropriate to the size of the project, to 16 the value of the project, to the fiscal impact ratio of the 17 project, and to any other relevant factors. 18 4. Each eligible business receiving assistance under this 19 section shall enter into an agreement with the authority and 20 the agreement shall meet the requirements of sections 15.330 21 and 15.330A. 22 Sec. 13. NEW SECTION . 15.335C Economically distressed 23 areas. 24 1. a. Notwithstanding section 15.329, subsection 1, 25 paragraph “c” , the authority may provide tax incentives or 26 project completion assistance under this part to an eligible 27 business paying less than one hundred twenty percent of the 28 qualifying wage threshold if that business is located in an 29 economically distressed area. 30 b. A business in an economically distressed area receiving 31 incentives or assistance pursuant to this section shall be 32 required to pay at least one hundred percent of the qualifying 33 wage threshold. 34 2. For purposes of this section, “economically distressed 35 -11- SF 2308 (4) 84 ad/sc/jh 11/ 25

S.F. 2308 area” means a county that ranks among the bottom twenty-five of 1 all Iowa counties, as measured by one of the following: 2 a. Average monthly unemployment level for the most recent 3 twelve-month period. 4 b. Average annualized unemployment level for the most recent 5 five-year period. 6 Sec. 14. Section 15A.7, subsection 3, Code Supplement 2011, 7 is amended to read as follows: 8 3. That the employer shall agree to pay wages for the jobs 9 for which the credit is taken of at least the county wage or 10 the regional laborshed wage, as calculated by the authority 11 pursuant to section 15G.112 15.327 , subsection 3 , whichever 12 is lower 7C . Eligibility for the supplemental credit shall 13 be based on a one-time determination of starting wages by the 14 community college. 15 Sec. 15. Section 15E.193, subsection 1, paragraph b, 16 subparagraph (1), Code Supplement 2011, is amended to read as 17 follows: 18 (1) The business shall provide a sufficient package of 19 benefits to each employee holding a created or retained job. 20 For purposes of this paragraph, “created job” and “retained job” 21 have the same meaning as defined in section 15G.101 15.327 . 22 Sec. 16. Section 15E.193, subsection 1, paragraphs c and d, 23 Code Supplement 2011, are amended to read as follows: 24 c. The business shall pay a wage that is at least ninety 25 percent of the qualifying wage threshold. For purposes of this 26 paragraph, “qualifying wage threshold” has the same meaning as 27 defined in section 15G.101 15.327 . 28 d. Creates or retains at least ten full-time equivalent 29 positions and maintains them until the maintenance period 30 completion date. For purposes of this paragraph, “maintenance 31 period completion date” and “full-time equivalent position” have 32 the same meanings as defined in section 15G.101 15.327 . 33 Sec. 17. Section 15E.231, unnumbered paragraph 1, Code 34 Supplement 2011, is amended to read as follows: 35 -12- SF 2308 (4) 84 ad/sc/jh 12/ 25

S.F. 2308 In order for an economic development region to receive 1 moneys under the economic development financial assistance 2 program established in section 15G.112 assistance pursuant to 3 section 15.335B , an economic development region’s regional 4 development plan must be approved by the authority. An 5 economic development region shall consist of not less than 6 three counties, unless two contiguous counties have a combined 7 population of at least three hundred thousand based on the 8 most recent federal decennial census. An economic development 9 region shall establish a focused economic development effort 10 that shall include a regional development plan relating to one 11 or more of the following areas: 12 Sec. 18. Section 15E.232, subsections 1, 3, 4, 5, and 6, 13 Code Supplement 2011, are amended to read as follows: 14 1. An economic development region may apply for financial 15 assistance from the economic development a fund established 16 pursuant to section 15.335B to assist with the installation 17 of physical infrastructure needs including, but not limited 18 to, horizontal infrastructure, water and sewer infrastructure, 19 and telecommunications infrastructure, related to the 20 development of fully served business and industrial sites by 21 one or more of the region’s economic development partners 22 or for the installation of infrastructure related to a 23 new business location or expansion. In order to receive 24 financial assistance pursuant to this subsection , the economic 25 development region must demonstrate all of the following: 26 a. The ability to provide matching moneys on a basis of a 27 one dollar contribution of local matching moneys for every two 28 dollars received from the economic development fund. 29 b. The commitment of the specific business partner 30 including, but not limited to, a letter of intent defining a 31 capital commitment or a percentage of equity. 32 c. That all other funding alternatives have been exhausted. 33 3. An economic development region may apply for financial 34 assistance from the economic development a fund established 35 -13- SF 2308 (4) 84 ad/sc/jh 13/ 25

S.F. 2308 pursuant to section 15.335B to assist an existing business 1 threatened with closure due to a potential consolidation to an 2 out-of-state location. The economic development region may 3 apply for financial assistance from the economic development 4 fund for the purchase, rehabilitation, or marketing of a 5 building that has become available due to the closing of an 6 existing business due to a consolidation to an out-of-state 7 location. In order to receive financial assistance under this 8 subsection , an economic development region must demonstrate the 9 ability to provide local matching moneys on a basis of a one 10 dollar contribution of local moneys for every three dollars 11 received from the economic development fund. 12 4. An economic development region may apply for financial 13 assistance from the economic development a fund established 14 pursuant to section 15.335B to establish and operate an 15 entrepreneurial initiative. In order to receive financial 16 assistance under this subsection , an economic development 17 region must demonstrate the ability to provide local matching 18 moneys on a basis of a one dollar contribution of local moneys 19 for every two dollars received from the economic development 20 fund. 21 5. a. An economic development region may apply for 22 financial assistance from the economic development a fund 23 established pursuant to section 15.335B to establish and 24 operate a business succession assistance program for the 25 region. 26 b. In order to receive financial assistance under this 27 subsection , an economic development region must demonstrate 28 the ability to provide local matching moneys on a basis of a 29 one dollar contribution of local moneys for every two dollars 30 received from the economic development fund. 31 6. An economic development region may apply for financial 32 assistance from the economic development a fund established 33 pursuant to section 15.335B to implement economic development 34 initiatives that are either unique to the region or innovative 35 -14- SF 2308 (4) 84 ad/sc/jh 14/ 25

S.F. 2308 in design and implementation. In order to receive financial 1 assistance under this subsection , an economic development 2 region must demonstrate the ability to provide local matching 3 moneys on a one-to-one basis. 4 Sec. 19. Section 15E.351, subsection 1, Code Supplement 5 2011, is amended to read as follows: 6 1. The economic development authority shall establish and 7 administer a business accelerator program to provide financial 8 assistance for the establishment and operation of a business 9 accelerator for technology-based, value-added agricultural, 10 information solutions, alternative and renewable energy 11 including the alternative and renewable energy sectors listed 12 in section 476.42, subsection 1 , paragraph “a” , subparagraph 13 (1), or advanced manufacturing start-up businesses or for a 14 satellite of an existing business accelerator. The program 15 shall be designed to foster the accelerated growth of new 16 and existing businesses through the provision of technical 17 assistance. The economic development authority may provide 18 financial assistance under this section from moneys allocated 19 for regional financial assistance for business accelerators 20 pursuant to section 15G.111 section 15.335B , subsection 9 2 . 21 Sec. 20. Section 159A.6B, subsection 2, Code Supplement 22 2011, is amended to read as follows: 23 2. The office may execute contracts in order to provide 24 technical support and outreach services for purposes of 25 assisting and educating interested persons as provided in this 26 section . The office may also contract with a consultant to 27 provide part or all of these services. The office may require 28 that a person receiving assistance pursuant to this section 29 contribute up to fifty percent of the amount required to 30 support the costs of contracting with the consultant to provide 31 assistance to the person. The office shall assist the person 32 in completing any technical information required in order 33 to receive assistance by the economic development authority 34 pursuant to the value-added agriculture component of the 35 -15- SF 2308 (4) 84 ad/sc/jh 15/ 25

S.F. 2308 economic development financial assistance program established 1 pursuant to section 15G.112 section 15.335B . 2 Sec. 21. Section 266.19, Code Supplement 2011, is amended 3 to read as follows: 4 266.19 Renewable fuel —— assistance. 5 The university shall cooperate in assisting renewable fuel 6 production facilities supporting livestock operations managed 7 by persons receiving assistance pursuant to the value-added 8 agriculture component of the economic development financial 9 assistance program established in section 15G.112 section 10 15.335B . 11 Sec. 22. Section 455B.104, subsection 2, Code Supplement 12 2011, is amended to read as follows: 13 2. The department shall assist persons applying for 14 assistance to establish and operate renewable fuel production 15 facilities pursuant to the value-added agriculture component 16 of the economic development financial assistance program 17 established in section 15G.112 section 15.335B . 18 Sec. 23. Section 455B.433, Code Supplement 2011, is amended 19 to read as follows: 20 455B.433 Physical infrastructure assistance —— funding —— 21 liability. 22 1. The department of natural resources shall work in 23 conjunction with the economic development authority to identify 24 environmentally contaminated sites which qualify for the 25 infrastructure component of the economic development financial 26 assistance program established in section 15G.112 assistance 27 under section 15.335B as necessary physical infrastructure 28 projects . The department shall provide an assessment of the 29 site and shall provide any emergency response activities which 30 the department deems necessary. The department may take any 31 further action, including remediation of the site, that the 32 department deems to be appropriate and which promotes the 33 purposes of the necessary physical infrastructure component 34 project . 35 -16- SF 2308 (4) 84 ad/sc/jh 16/ 25

S.F. 2308 2. The department shall be reimbursed from the economic 1 development fund created in section 15G.111 by the economic 2 development authority for any costs incurred pursuant to this 3 section . 4 3. A person shall not have standing pursuant to section 5 455B.111 to commence a citizen suit which is based upon 6 property that is part of the infrastructure component of the 7 economic development financial assistance program established 8 in section 15G.112 receiving assistance pursuant to section 9 15.335B as a necessary physical infrastructure project . 10 Sec. 24. RULES. The economic development authority shall 11 adopt rules for the implementation of this division of this 12 Act. 13 DIVISION II 14 TARGETED INDUSTRIES PROGRAM 15 Sec. 25. Section 15.102, subsection 11, Code Supplement 16 2011, is amended to read as follows: 17 11. “Targeted industries” means the same as defined 18 in section 15.411, subsection 1 industries of advanced 19 manufacturing, biosciences, and information technology . 20 Sec. 26. Section 15.106B, subsection 2, paragraph d, 21 subparagraph (1), Code Supplement 2011, is amended by adding 22 the following new subparagraph division: 23 NEW SUBPARAGRAPH DIVISION . (g) Services related to 24 outreach and assistance to businesses for small business 25 innovation research and technology transfer pursuant to section 26 15.411, subsection 5, or services related to accelerating the 27 generation and development of innovative ideas and businesses 28 pursuant to section 15.411, subsection 6. 29 Sec. 27. Section 15.411, Code Supplement 2011, is amended 30 to read as follows: 31 15.411 Targeted industries Innovative business development —— 32 internships —— technical and financial assistance. 33 1. As used in this part, unless the context otherwise 34 requires: 35 -17- SF 2308 (4) 84 ad/sc/jh 17/ 25

S.F. 2308 a. “Innovative business” means the same as defined in 1 section 15E.52. 2 a. b. “Internship” means temporary employment of a student 3 that focuses on providing the student with work experience in 4 the student’s field of study. 5 b. “Targeted industries” means the industries of advanced 6 manufacturing, biosciences, and information technology. 7 2. The authority shall, upon board approval, may contract 8 with service providers on a case-by-case basis for services 9 related to statewide commercialization development in the 10 targeted industries of innovative businesses . Services 11 provided shall include all of the following: 12 a. Assistance provided directly to businesses by experienced 13 serial entrepreneurs for all of the following activities: 14 (1) Business plan development. 15 (2) Due diligence. 16 (3) Market assessments. 17 (4) Technology assessments. 18 (5) Other planning activities. 19 b. Operation and coordination of various available 20 competitive seed and prototype development funds. 21 c. Connecting businesses to private angel investors and the 22 venture capital community. 23 d. Assistance in obtaining access to an experienced pool 24 of managers and operations talent that can staff, mentor, or 25 advise start-up enterprises. 26 e. Support and advice for accessing sources of early stage 27 financing. 28 3. The authority shall establish and administer a program 29 to provide financial and technical assistance to encourage 30 prototype and concept development activities by innovative 31 businesses that have a clear potential to lead to commercially 32 viable products or services within a reasonable period of time 33 in the targeted industries . Financial assistance shall be 34 awarded on a per project basis upon board approval. The amount 35 -18- SF 2308 (4) 84 ad/sc/jh 18/ 25

S.F. 2308 of financial assistance available for a single project shall 1 not exceed one hundred fifty thousand dollars. In order to 2 receive financial assistance, an applicant must demonstrate 3 the ability to secure one dollar of nonstate moneys for every 4 two dollars received from the authority. For purposes of this 5 section, “financial assistance” means assistance provided only 6 from the funds, rights, and assets legally available to the 7 authority pursuant to this chapter and includes but is not 8 limited to assistance in the form of grants, loans, forgivable 9 loans, and royalty payments. 10 4. The authority shall, upon board approval, establish 11 and administer a program to provide financial assistance for 12 projects designed to encourage collaboration between commercial 13 users and developers of information technology in the state 14 for the purpose of commercializing existing software and 15 applications technologies. Financial assistance shall not 16 exceed one hundred thousand dollars per project. In order to 17 receive financial assistance, an applicant must demonstrate the 18 ability to secure two dollars of nonstate moneys for every one 19 dollar received from the authority. Financial assistance shall 20 be awarded to projects that will result in technologies being 21 developed as commercial products for sale by Iowa companies 22 rather than as custom applications for proprietary use by a 23 participating firm. 24 5. The authority shall, upon board approval, establish 25 and administer a program to provide financial assistance to 26 businesses or departments of businesses engaged in the delivery 27 of information technology services in the state for the purpose 28 of upgrading the high-level technical skills of existing 29 employees. The amount of financial assistance shall not exceed 30 twenty-five thousand dollars for any business site. In order 31 to receive financial assistance, an applicant must demonstrate 32 the ability to secure two dollars of nonstate moneys for every 33 one dollar received from the authority. 34 6. 4. The authority shall , upon board approval, establish 35 -19- SF 2308 (4) 84 ad/sc/jh 19/ 25