SENATE FILE 517

BY  COMMITTEE ON APPROPRIATIONS

(SUCCESSOR TO SSB 1199)

(As Amended and Passed by the Senate 2011-04-12)

A BILL FOR

An Act relating to and making appropriations to the department of cultural affairs, the department of economic development, certain board of regents institutions, the department of workforce development, the Iowa finance authority, and the public employment relations board, and related matters and including immediate effective date and retroactive applicability provisions.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

   Section 1.  DEPARTMENT OF CULTURAL AFFAIRS.  There is appropriated from the general fund of the state to the department of cultural affairs for the fiscal year beginning July 1, 2011, and ending June 30, 2012, the following amounts, or so much thereof as is necessary, to be used for the purposes designated:
   1.  ADMINISTRATION
   For salaries, support, maintenance, miscellaneous purposes, and for not more than the following full-time equivalent positions for the department:
.................................................. $    181,813
............................................... FTEs      74.50
   The department of cultural affairs shall coordinate activities with the tourism office of the department of economic development to promote attendance at the state historical building and at this state’s historic sites.
   Full-time equivalent positions authorized under this subsection shall be funded, in full or in part, using moneys appropriated under this subsection and subsections 3 through 7.
   2.  COMMUNITY CULTURAL GRANTS
   For planning and programming for the community cultural grants program established under section 303.3:
.................................................. $    257,090
   3.  HISTORICAL DIVISION
   For the support of the historical division:
.................................................. $  2,767,701
   4.  HISTORIC SITES
   For the administration and support of historic sites:
.................................................. $    426,398
   5.  ARTS DIVISION
   For the support of the arts division:
.................................................. $    933,764
   6.  IOWA GREAT PLACES
   For the Iowa great places program established under section 303.3C:
.................................................. $    193,823
   7.  ARCHIVE IOWA GOVERNORS’ RECORDS
   For archiving the records of Iowa governors:
.................................................. $     65,933
   8.  RECORDS CENTER RENT
   For payment of rent for the state records center:
.................................................. $    227,243
   9.  BATTLE FLAGS
   For continuation of the project recommended by the Iowa battle flag advisory committee to stabilize the condition of the battle flag collection:
.................................................. $     60,000
   Sec. 2.  GOALS AND ACCOUNTABILITY —— ECONOMIC DEVELOPMENT.
   1.  For the fiscal year beginning July 1, 2011, the goals for the department of economic development shall be to expand and stimulate the state economy, increase the wealth of Iowans, and increase the population of the state.
   2.  To achieve the goals in subsection 1, the department of economic development shall do all of the following for the fiscal year beginning July 1, 2011:
   a.  Concentrate its efforts on programs and activities that result in commercially viable products and services.
   b.  Adopt practices and services consistent with free market, private sector philosophies.
   c.  Ensure economic growth and development throughout the state.
   d.  Work with businesses and communities to continually improve the economic development climate along with the economic well-being and quality of life for Iowans.
   e.  Coordinate with other state agencies to ensure that they are attentive to the needs of an entrepreneurial culture.
   f.  Establish a strong and aggressive marketing image to showcase Iowa’s workforce, existing industry, and potential. A priority shall be placed on recruiting new businesses, business expansion, and retaining existing Iowa businesses. Emphasis shall be placed on entrepreneurial development through helping entrepreneurs secure capital, and developing networks and a business climate conducive to entrepreneurs and small businesses.
   g.  Encourage the development of communities and quality of life to foster economic growth.
   h.  Prepare communities for future growth and development through development, expansion, and modernization of infrastructure.
   i.  Develop public-private partnerships with Iowa businesses in the tourism industry, Iowa tour groups, Iowa tourism organizations, and political subdivisions in this state to assist in the development of advertising efforts.
   j.  Develop, to the fullest extent possible, cooperative efforts for advertising with contributions from other sources.
   Sec. 3.  DEPARTMENT OF ECONOMIC DEVELOPMENT.
   1.  APPROPRIATION
   There is appropriated from the general fund of the state to the department of economic development for the fiscal year beginning July 1, 2011, and ending June 30, 2012, the following amounts, or so much thereof as is necessary, to be used for the purposes designated in subsection 2, and for not more than the following full-time equivalent positions:
.................................................. $ 10,047,229
............................................... FTEs     149.00
   2.  DESIGNATED PURPOSES
   a.  For salaries, support, miscellaneous purposes, programs, and the maintenance of an administration division, a business development division, and a community development division.
   b.  The full-time equivalent positions authorized under this section shall be funded, in whole or in part, by the moneys appropriated under subsection 1 or by other moneys received by the department, including certain federal moneys.
   c.  For business development operations and programs, the film office, international trade, export assistance, workforce recruitment, and the partner state program.
   d.  For transfer to the strategic investment fund created in section 15.313.
   e.  For transfer to the grow Iowa values fund created in section 15G.111.
   f.  For community economic development programs, tourism operations, community assistance, plans for Iowa green corps and summer youth programs, the mainstreet and rural mainstreet programs, the school-to-career program, the community development block grant, and housing and shelter-related programs.
   g.  For achieving the goals and accountability, and fulfilling the requirements and duties required under this Act.
   3.  NONREVERSION
   Notwithstanding section 8.33, moneys appropriated in subsection 1 that remain unencumbered or unobligated at the close of the fiscal year shall not revert but shall remain available for expenditure for the purposes designated in subsection 2 until the close of the succeeding fiscal year.
   4.  FINANCIAL ASSISTANCE RESTRICTIONS
   a.  A business creating jobs through moneys appropriated in this section shall be subject to contract provisions requiring new and retained jobs to be filled by individuals who are citizens of the United States who reside within the United States or any person authorized to work in the United States pursuant to federal law, including legal resident aliens in the United States.
   b.  Any vendor who receives moneys appropriated in this section shall adhere to such contract provisions and provide periodic assurances as the state shall require that the jobs are filled solely by citizens of the United States who reside within the United States or any person authorized to work in the United States pursuant to federal law, including legal resident aliens in the United States.
   c.  A business that receives financial assistance from the department from moneys appropriated in this section shall only employ individuals legally authorized to work in this state. In addition to all other applicable penalties provided by current law, all or a portion of the assistance received by a business which is found to knowingly employ individuals not legally authorized to work in this state is subject to recapture by the department.
   5.  USES OF APPROPRIATIONS
   a.  From the moneys appropriated in this section, the department may provide financial assistance in the form of a grant to a community economic development entity for conducting a local workforce recruitment effort designed to recruit former citizens of the state and former students at colleges and universities in the state to meet the needs of local employers.
   b.  From the moneys appropriated in this section, the department may provide financial assistance to early stage industry companies being established by women entrepreneurs.
   c.  From the moneys appropriated in this section, the department may provide financial assistance in the form of grants, loans, or forgivable loans for advanced research and commercialization projects involving value-added agriculture, advanced technology, or biotechnology.
   6.  WORLD FOOD PRIZE
   For allocating moneys for the world food prize and notwithstanding the standing appropriation in section 15.368, subsection 1:
.................................................. $    650,000
   7.  MAIN STREET GRANTS
   For use as matching funds for the United States department of housing and urban development’s main street challenge grants for historic building preservation:
.................................................. $    155,828
   Notwithstanding section 8.33, moneys appropriated in this subsection that remain unencumbered or unobligated at the close of the fiscal year shall not revert but shall remain available for expenditure for the purposes designated until the close of the succeeding fiscal year.
   8.  IOWA COMMISSION ON VOLUNTEER SERVICE
   For allocation to the Iowa commission on volunteer service for the Iowa’s promise and mentoring partnership programs, for transfer to the Iowa state commission grant program, and for not more than the following full-time equivalent positions:
.................................................. $    178,133
............................................... FTEs       7.00
   Of the moneys appropriated in this subsection, the department shall allocate $75,000 for purposes of the Iowa state commission grant program and $103,133 for purposes of the Iowa’s promise and mentoring partnership programs.
   Notwithstanding section 8.33, moneys appropriated in this subsection that remain unencumbered or unobligated at the close of the fiscal year shall not revert but shall remain available for expenditure for the purposes designated until the close of the succeeding fiscal year.
   Sec. 4.  VISION IOWA PROGRAM —— FTE AUTHORIZATION.  For purposes of administrative duties associated with the vision Iowa program, the department of economic development is authorized an additional 2.25 FTEs above those otherwise authorized in this Act.
   Sec. 5.  INSURANCE ECONOMIC DEVELOPMENT.  From the moneys collected by the division of insurance in excess of the anticipated gross revenues under section 505.7, subsection 3, during the fiscal year beginning July 1, 2011, $100,000 shall be transferred to the department of economic development for insurance economic development and international insurance economic development.
   Sec. 6.  COMMUNITY DEVELOPMENT LOAN FUND.  Notwithstanding section 15E.120, subsection 5, there is appropriated from the Iowa community development loan fund all moneys available during the fiscal year beginning July 1, 2011, and ending June 30, 2012, to the department of economic development for purposes of the community development program.
   Sec. 7.  WORKFORCE DEVELOPMENT FUND.  There is appropriated from the workforce development fund account created in section 15.342A to the workforce development fund created in section 15.343 for the fiscal year beginning July 1, 2011, and ending June 30, 2012, the following amount, for purposes of the workforce development fund:
.................................................. $  4,000,000
   Sec. 8.  WORKFORCE DEVELOPMENT ADMINISTRATION.  From moneys appropriated or transferred to or receipts credited to the workforce development fund created in section 15.343, up to $400,000 for the fiscal year beginning July 1, 2011, and ending June 30, 2012, are appropriated to the department of economic development for the administration of workforce development activities including salaries, support, maintenance, and miscellaneous purposes, and for not more than the following full-time equivalent positions:
............................................... FTEs       4.00
   Sec. 9.  JOB TRAINING FUND.  Notwithstanding section 15.251, all moneys in the job training fund on July 1, 2011, and any moneys appropriated or credited to the fund during the fiscal year beginning July 1, 2011, shall be transferred to the workforce development fund established pursuant to section 15.343.
   Sec. 10.  IOWA STATE UNIVERSITY.
   1.  There is appropriated from the general fund of the state to Iowa state university of science and technology for the fiscal year beginning July 1, 2011, and ending June 30, 2012, the following amount, or so much thereof as is necessary, to be used for small business development centers, the science and technology research park, and the institute for physical research and technology, and for not more than the following full-time equivalent positions:
.................................................. $  2,575,983
............................................... FTEs      56.63

   2.  Of the moneys appropriated in subsection 1, Iowa state university of science and technology shall allocate at least $994,929 for purposes of funding small business development centers. Iowa state university of science and technology may allocate moneys appropriated in subsection 1 to the various small business development centers in any manner necessary to achieve the purposes of this subsection.
   3.  Iowa state university of science and technology shall do all of the following:
   a.  Direct expenditures for research toward projects that will provide economic stimulus for Iowa.
   b.  Provide emphasis to providing services to Iowa-based companies.
   4.  It is the intent of the general assembly that the industrial incentive program focus on Iowa industrial sectors and seek contributions and in-kind donations from businesses, industrial foundations, and trade associations, and that moneys for the institute for physical research and technology industrial incentive program shall be allocated only for projects which are matched by private sector moneys for directed contract research or for nondirected research. The match required of small businesses as defined in section 15.102, subsection 6, for directed contract research or for nondirected research shall be $1 for each $3 of state funds. The match required for other businesses for directed contract research or for nondirected research shall be $1 for each $1 of state funds. The match required of industrial foundations or trade associations shall be $1 for each $1 of state funds.
   Iowa state university of science and technology shall report annually to the joint appropriations subcommittee on economic development and the legislative services agency the total amount of private contributions, the proportion of contributions from small businesses and other businesses, and the proportion for directed contract research and nondirected research of benefit to Iowa businesses and industrial sectors.

   5.  Notwithstanding section 8.33, moneys appropriated in this section that remain unencumbered or unobligated at the close of the fiscal year shall not revert but shall remain available for expenditure for the purposes designated until the close of the succeeding fiscal year.
   Sec. 11.  UNIVERSITY OF IOWA.
   1.  There is appropriated from the general fund of the state to the state university of Iowa for the fiscal year beginning July 1, 2011, and ending June 30, 2012, the following amount, or so much thereof as is necessary, to be used for the state university of Iowa research park and for the advanced drug development program at the Oakdale research park, including salaries, support, maintenance, equipment, miscellaneous purposes, and for not more than the following full-time equivalent positions:
.................................................. $    222,372
............................................... FTEs       6.00
   2.  The state university of Iowa shall do all of the following:
   a.  Direct expenditures for research toward projects that will provide economic stimulus for Iowa.
   b.  Provide emphasis to providing services to Iowa-based companies.
   3.  Notwithstanding section 8.33, moneys appropriated in this section that remain unencumbered or unobligated at the close of the fiscal year shall not revert but shall remain available for expenditure for the purposes designated until the close of the succeeding fiscal year.
   Sec. 12.  UNIVERSITY OF NORTHERN IOWA.
   1.  There is appropriated from the general fund of the state to the university of northern Iowa for the fiscal year beginning July 1, 2011, and ending June 30, 2012, the following amount, or so much thereof as is necessary, to be used for the metal casting institute, the MyEntreNet internet application, and the institute of decision making, including salaries, support, maintenance, miscellaneous purposes, and for not more than the following full-time equivalent positions:
.................................................. $    610,674
............................................... FTEs       6.75
   2.  Of the moneys appropriated pursuant to subsection 1, the university of northern Iowa shall allocate at least $290,494 for purposes of expanded support of entrepreneurs through the university’s regional business center.
   3.  The university of northern Iowa shall do all of the following:
   a.  Direct expenditures for research toward projects that will provide economic stimulus for Iowa.
   b.  Provide emphasis to providing services to Iowa-based companies.
   4.  Notwithstanding section 8.33, moneys appropriated in this section that remain unencumbered or unobligated at the close of the fiscal year shall not revert but shall remain available for expenditure for the purposes designated until the close of the succeeding fiscal year.
   Sec. 13.  BOARD OF REGENTS REPORT.  The state board of regents shall submit a report on the progress of regents institutions in meeting the strategic plan for technology transfer and economic development to the secretary of the senate, the chief clerk of the house of representatives, and the legislative services agency by January 15, 2012.
   Sec. 14.  DEPARTMENT OF WORKFORCE DEVELOPMENT.  There is appropriated from the general fund of the state to the department of workforce development for the fiscal year beginning July 1, 2011, and ending June 30, 2012, the following amounts, or so much thereof as is necessary, for the purposes designated:
   1.  DIVISION OF LABOR SERVICES
   a.  For the division of labor services, including salaries, support, maintenance, miscellaneous purposes, and for not more than the following full-time equivalent positions:
.................................................. $  3,495,440
............................................... FTEs      64.00
   b.  From the contractor registration fees, the division of labor services shall reimburse the department of inspections and appeals for all costs associated with hearings under chapter 91C, relating to contractor registration.
   2.  DIVISION OF WORKERS’ COMPENSATION
   a.  For the division of workers’ compensation, including salaries, support, maintenance, miscellaneous purposes, and for not more than the following full-time equivalent positions:
.................................................. $  3,066,768
............................................... FTEs      30.00
   b.  The division of workers’ compensation shall charge a $100 filing fee for workers’ compensation cases. The filing fee shall be paid by the petitioner of a claim. However, the fee can be taxed as a cost and paid by the losing party, except in cases where it would impose an undue hardship or be unjust under the circumstances. The moneys generated by the filing fee allowed under this subsection are appropriated to the department of workforce development to be used for purposes of administering the division of workers’ compensation.
   3.  WORKFORCE DEVELOPMENT OPERATIONS
   a.  For the operation of field offices, the workforce development board, and for not more than the following full-time equivalent positions:
.................................................. $  8,671,352
............................................... FTEs     130.00
   b.  Of the moneys appropriated in paragraph “a” of this subsection, the department shall allocate $8,660,480 for the operation of field offices.
   c.  The department shall not reduce the number of field offices below the number of field offices being operated as of January 1, 2009.
   4.  OFFENDER REENTRY PROGRAM
   a.  For the development and administration of an offender reentry program to provide offenders with employment skills, and for not more than the following full-time equivalent positions:
.................................................. $    284,464
............................................... FTEs       3.00
   b.  The department shall partner with the department of corrections to provide staff within the correctional facilities to improve offenders’ abilities to find and retain productive employment.
   5.  Notwithstanding section 8.33, moneys appropriated in this section that remain unencumbered or unobligated at the close of the fiscal year shall not revert but shall remain available for expenditure for the purposes designated until the close of the succeeding fiscal year.
   Sec. 15.  WORKERS’ COMPENSATION CARRYFORWARD APPROPRIATION.
   1.  There is appropriated from the general fund of the state to the department of workforce development for the fiscal year beginning July 1, 2010, and ending June 30, 2011, the following amount, or so much thereof as is necessary, to be used for the purposes designated:
   For expenditure in the fiscal year beginning July 1, 2011, for the division of workers’ compensation, including salaries, support, maintenance, and miscellaneous purposes:
.................................................. $    300,000
   2.  Notwithstanding section 8.33, moneys appropriated in this section that remain unencumbered or unobligated at the close of the fiscal year shall not revert but shall remain available for expenditure for the purposes designated until the close of the succeeding fiscal year.
   Sec. 16.  ACCOUNTABILITY —— AUDIT.  The auditor of state shall annually conduct an audit of the department of workforce development and shall report the findings of such annual audit, including the accountability of programs of the department, to the chairpersons and ranking members of the joint appropriations subcommittee on economic development. The department shall pay for the costs associated with the audit.
   Sec. 17.  EMPLOYMENT SECURITY CONTINGENCY FUND.
   1.  There is appropriated from the special employment security contingency fund to the department of workforce development for the fiscal year beginning July 1, 2011, and ending June 30, 2012, the following amount, or so much thereof as is necessary, to be used for field offices:
.................................................. $  1,217,084
   2.  Any remaining additional penalty and interest revenue is appropriated to the department of workforce development to accomplish the mission of the department.
   Sec. 18.  UNEMPLOYMENT COMPENSATION RESERVE FUND —— FIELD OFFICES.  Notwithstanding section 96.9, subsection 8, paragraph “e”, there is appropriated from interest earned on the unemployment compensation reserve fund to the department of workforce development for the fiscal year beginning July 1, 2011, and ending June 30, 2012, the following amount or so much thereof as is necessary, for the purposes designated:
   For the operation of field offices:
.................................................. $  4,238,260
   Sec. 19.  GENERAL FUND —— EMPLOYEE MISCLASSIFICATION PROGRAM.  There is appropriated from the general fund of the state to the department of workforce development for the fiscal year beginning July 1, 2011, and ending June 30, 2012, the following amount, or so much thereof as is necessary, to be used for the purposes designated:
   For enhancing efforts to investigate employers that misclassify workers and for not more than the following full-time equivalent positions:
.................................................. $    451,458
............................................... FTEs       8.10
   Sec. 20.  APPROPRIATIONS RESTRICTED.  The department of workforce development shall not use any of the moneys appropriated pursuant to this Act for purposes of the national career readiness certificate program.
   Sec. 21.  PUBLIC EMPLOYMENT RELATIONS BOARD.
   1.  There is appropriated from the general fund of the state to the public employment relations board for the fiscal year beginning July 1, 2011, and ending June 30, 2012, the following amount, or so much thereof as is necessary, for the purposes designated:
   For salaries, support, maintenance, miscellaneous purposes, and for not more than the following full-time equivalent positions:
.................................................. $  1,057,871
............................................... FTEs      10.00
   2.  Of the moneys appropriated in this section, the board shall allocate $15,000 for maintaining a website that allows searchable access to a database of collective bargaining information.
   Sec. 22.  UNEMPLOYMENT COMPENSATION PROGRAM.  Notwithstanding section 96.9, subsection 4, paragraph “a”, moneys credited to the state by the secretary of the treasury of the United States pursuant tosection 903 of the Social Security Act are appropriated to the department of workforce development and shall be used by the department for the administration of the unemployment compensation program only. This appropriation shall not apply to any fiscal year beginning after December 31, 2011.
   Sec. 23.  Section 15.301, subsection 1, paragraph c, subparagraph (1), Code 2011, is amended to read as follows:
   (1)  If, on March 31, 2011, there are unobligated moneys in the fund, such unobligated moneys shall revert to the general fund of the state be transferred and appropriated to the department of workforce development for the fiscal year beginning July 1, 2011, for purposes of providing funding for field offices.
   Sec. 24.  Section 15E.117, subsection 3, paragraph b, Code 2011, is amended by striking the paragraph.
   Sec. 25.  Section 123.183, subsection 2, paragraph b, Code 2011, is amended by striking the paragraph and inserting in lieu thereof the following:
   b.
  (1)  A wine gallonage tax fund is created in the office of the treasurer of state.
   (2)  Moneys deposited in the fund are appropriated as follows:
   (a)  To the midwest grape and wine industry institute at Iowa state university of science and technology, one hundred twenty thousand dollars.
   (b)  To the department of economic development for purposes of section 15E.117, the balance of moneys in the fund after the appropriation in subparagraph subdivision (a).
   (3)  Moneys in the fund and moneys appropriated from the fund pursuant to subparagraph (2) are not subject to reversion under section 8.33.
   Sec. 26.  2008 Iowa Acts, chapter 1190, section 30, subsection 3, is amended to read as follows:
   3.  As part of the plan, the department of workforce development shall set a goal of having at least one certified one-stop center in each of the fifteen workforce regions by the year 2012 2014.
   Sec. 27.  2010 Iowa Acts, chapter 1184, section 37, is amended by adding the following new unnumbered paragraph:
   NEW UNNUMBERED PARAGRAPH.  Notwithstanding section 8.33, moneys appropriated in this section shall not revert at the close of the fiscal year for which they are appropriated but shall remain available for the purposes designated until the close of the fiscal year that begins July 1, 2011. The full-time equivalent position authorized in this section shall continue to be authorized until the close of the fiscal year that begins July 1, 2011.
   Sec. 28.  2010 Iowa Acts, chapter 1193, section 88, is amended to read as follows:
   SEC. 88.
  TAIWAN TRADE OFFICE—— IOWA COMPREHENSIVE PETROLEUM UNDERGROUND STORAGE TANK FUND.  There is appropriated from the Iowa comprehensive petroleum underground storage tank fund to the department of economic development for the fiscal year beginning July 1, 2010, and ending June 30, 2011, the following amount, or so much thereof as is necessary, to be used for the purposes designated:
   Notwithstanding section 455G.3, subsection 1, for establishing a trade office in Taipei, Taiwan:
.................................................. $    100,000
   Notwithstanding section 8.33, moneys appropriated in this section shall not revert at the close of the fiscal year for which they are appropriated but shall remain available for the purposes designated until the close of the fiscal year that begins July 1, 2011.
   If the department cannot arrange for matching moneys from another source by June 30, 2012, in an amount at least equal to the appropriation made in this section, the moneys appropriated in this section shall revert to the Iowa comprehensive petroleum underground storage tank fund.
   Sec. 29.  EFFECTIVE UPON ENACTMENT—— RETROACTIVE APPLICABILITY.  The section of this Act amending section 15.301, being deemed of immediate importance, takes effect upon enactment and applies retroactively to March 30, 2011.
   Sec. 30.  EFFECTIVE UPON ENACTMENT.  The sections of this Act amending 2010 Iowa Acts, chapter 1184, 2010 Iowa Acts, chapter 1193, and 2008 Iowa Acts, chapter 1190, being deemed of immediate importance, take effect upon enactment.
   The section of this Act appropriating moneys from the general fund of the state to the department of workforce development in the fiscal year beginning July 1, 2010, for expenditure in the fiscal year beginning July 1, 2011, for the division of workers’ compensation, being deemed of immediate importance, takes effect upon enactment.