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Senate Study Bill 1032 - IntroducedA Bill ForAn Act 1relating to grants for new remote workers who relocate
2to this state and who are employed by an out-of-state
3employer and creating and making appropriations to the new
4remote worker grant fund.
5BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. NEW SECTION. 15.221 New remote worker grant
2program.
31. a. The economic development authority shall, pursuant to
4section 15.106A, subsection 1, paragraph “o”, establish a new
5remote worker grant fund for the purpose of providing grants to
6new remote workers pursuant to this section.
7b. The fund may consist of any moneys appropriated by the
8general assembly for purposes of this section and any other
9moneys that are lawfully available to the authority, including
10moneys transferred or deposited from other funds created
11pursuant to section 15.106A, subsection 1, paragraph “o”.
12c. The authority shall use any moneys specifically
13appropriated for purposes of this section only for the purposes
14of this section.
15d. Notwithstanding section 8.33, moneys remaining in the
16fund at the end of each fiscal year shall not revert to any fund
17and shall remain in the fund.
18e. There is appropriated from the general fund of the state
19to the new remote worker grant fund for the new remote worker
20grant program the following amounts:
21(1) For the fiscal year beginning July 1, 2021, seven
22hundred fifty thousand dollars.
23(2) For the fiscal year beginning July 1, 2022, three
24hundred fifty thousand dollars.
25(3) For the fiscal year beginning July 1, 2023, four hundred
26thousand dollars.
27(4) For the fiscal year beginning July 1, 2024, four hundred
28fifty thousand dollars.
29(5) For the fiscal year beginning July 1, 2025, five hundred
30thousand dollars.
312. As used in this section, unless the context otherwise
32requires:
33a. “Coworking space” means a shared office space in which
34individuals that are not employed by the same organization work
35independently or collaboratively.
-1- 1b. “New remote worker” means an individual who meets all of
2the following requirements:
3(1) Is a full-time employee, as defined by the employer,
4of a business that is domiciled or has its primary place of
5business outside of this state.
6(2) Performs the majority of the worker’s duties for the
7business remotely from a home office or a coworking space
8located in this state.
9(3) Becomes a full-time resident of this state on or after
10January 1, 2022.
11c. “Qualifying remote worker expenses” means actual,
12substantiated costs that a new remote worker incurs for any
13of the following that are necessary to perform the new remote
14worker’s employment duties and that are not reimbursed by the
15employer:
16(1) Relocation to this state.
17(2) Computer software and hardware.
18(3) Broadband access or upgrade.
19(4) Membership in a coworking space or a similar space.
203. A new remote worker shall be eligible for a grant under
21this program for qualifying new remote worker expenses in an
22amount not to exceed five thousand dollars per calendar year
23for a maximum of two calendar years.
244. Subject to funding, the authority shall award grants
25under this program on a first-come, first-served basis, with
26the following limitations on total grants:
27a. Not to exceed seven hundred fifty thousand dollars in
28calendar year 2022.
29b. Not to exceed three hundred fifty thousand dollars in
30calendar year 2023.
31c. Not to exceed four hundred thousand dollars in calendar
32year 2024.
33d. Not to exceed four hundred fifty thousand dollars in
34calendar year 2025.
35e. Not to exceed five hundred thousand dollars in calendar
-2-1year 2026.
2f. To the extent funds remain available, not to exceed two
3hundred thousand dollars in any subsequent calendar year.
45. The authority shall adopt rules pursuant to chapter 17A
5to implement and administer this section.
66. Each year that moneys are appropriated to the fund
7established in this section, the authority shall submit a
8report to the general assembly and the governor’s office that
9provides the total number of grants awarded, the amount of each
10grant, the state where each grantee’s employer is located, the
11city and county in this state to which each grantee relocated,
12whether the new remote worker works out of the person’s home
13or a coworking space, and if applicable, the city and county
14in which the coworking space is located. The report shall be
15submitted by January 31 of each year for the prior calendar
16year.
17EXPLANATION
18The inclusion of this explanation does not constitute agreement with
19the explanation’s substance by the members of the general assembly.
20This bill relates to grants for new remote workers who
21relocate to this state and who are employed by an out-of-state
22employer, and creates and makes appropriations to the new
23remote worker grant fund.
24The bill defines “new remote worker” as an individual who is
25a full-time employee of a business that is domiciled or has its
26primary place of business outside of this state, who performs
27the majority of the person’s duties for the business remotely
28from a home office or a coworking space located in this state,
29and who becomes a full-time resident of this state on or after
30January 1, 2022.
31Under the bill, a new remote worker is eligible for a
32grant for qualifying remote worker expenses in an amount not
33to exceed $5,000 per calendar year. A new remote worker is
34eligible for a grant for a maximum of two calendar years.
35“Qualifying remote worker expenses” is defined in the bill as
-3-1actual, substantiated costs that a new remote worker incurs
2for relocation to this state, computer software and hardware,
3broadband access or upgrade, and membership in a coworking
4space. The expenses must be necessary to perform the remote
5worker’s employment duties and cannot also be reimbursed by the
6employer. “Coworking space” is defined in the bill.
7The bill requires the authority to establish a new remote
8worker grant fund for the purpose of providing grants to
9new remote workers. There is appropriated from the general
10fund of the state to the remote worker grant fund for the
11new remote worker grant program $750,000 for the fiscal year
12beginning July 1, 2021, $350,000 for the fiscal year beginning
13July 1, 2022, $400,000 for the fiscal year beginning July 1,
142023, $450,000 for the fiscal year beginning July 1, 2024,
15and $500,000 for the fiscal year beginning July 1, 2025.
16Notwithstanding Code section 8.33, moneys remaining in the fund
17at the end of each fiscal year shall not revert to any fund and
18shall remain in the fund.
19Subject to funding, the authority is required by the bill to
20award grants on a first-come, first-served basis, not exceeding
21total grants of $750,000 in calendar year 2022, $350,000 in
22calendar year 2023, $400,000 in calendar year 2024, $450,000
23in calendar year 2025, and $500,000 in calendar year 2026. To
24the extent funds remain available in subsequent calendar years,
25total grants cannot exceed $200,000 in any calendar year.
26The bill requires the Iowa economic development authority
27to adopt rules to implement and administer the requirements of
28the bill.
29Each year that moneys are appropriated to the fund, the
30authority must submit a report to the general assembly and the
31governor’s office providing details related to the grants and
32grantees. The report is due by January 31 of every year for the
33immediately preceding calendar year.
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2to this state and who are employed by an out-of-state
3employer and creating and making appropriations to the new
4remote worker grant fund.
5BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. NEW SECTION. 15.221 New remote worker grant
2program.
31. a. The economic development authority shall, pursuant to
4section 15.106A, subsection 1, paragraph “o”, establish a new
5remote worker grant fund for the purpose of providing grants to
6new remote workers pursuant to this section.
7b. The fund may consist of any moneys appropriated by the
8general assembly for purposes of this section and any other
9moneys that are lawfully available to the authority, including
10moneys transferred or deposited from other funds created
11pursuant to section 15.106A, subsection 1, paragraph “o”.
12c. The authority shall use any moneys specifically
13appropriated for purposes of this section only for the purposes
14of this section.
15d. Notwithstanding section 8.33, moneys remaining in the
16fund at the end of each fiscal year shall not revert to any fund
17and shall remain in the fund.
18e. There is appropriated from the general fund of the state
19to the new remote worker grant fund for the new remote worker
20grant program the following amounts:
21(1) For the fiscal year beginning July 1, 2021, seven
22hundred fifty thousand dollars.
23(2) For the fiscal year beginning July 1, 2022, three
24hundred fifty thousand dollars.
25(3) For the fiscal year beginning July 1, 2023, four hundred
26thousand dollars.
27(4) For the fiscal year beginning July 1, 2024, four hundred
28fifty thousand dollars.
29(5) For the fiscal year beginning July 1, 2025, five hundred
30thousand dollars.
312. As used in this section, unless the context otherwise
32requires:
33a. “Coworking space” means a shared office space in which
34individuals that are not employed by the same organization work
35independently or collaboratively.
-1- 1b. “New remote worker” means an individual who meets all of
2the following requirements:
3(1) Is a full-time employee, as defined by the employer,
4of a business that is domiciled or has its primary place of
5business outside of this state.
6(2) Performs the majority of the worker’s duties for the
7business remotely from a home office or a coworking space
8located in this state.
9(3) Becomes a full-time resident of this state on or after
10January 1, 2022.
11c. “Qualifying remote worker expenses” means actual,
12substantiated costs that a new remote worker incurs for any
13of the following that are necessary to perform the new remote
14worker’s employment duties and that are not reimbursed by the
15employer:
16(1) Relocation to this state.
17(2) Computer software and hardware.
18(3) Broadband access or upgrade.
19(4) Membership in a coworking space or a similar space.
203. A new remote worker shall be eligible for a grant under
21this program for qualifying new remote worker expenses in an
22amount not to exceed five thousand dollars per calendar year
23for a maximum of two calendar years.
244. Subject to funding, the authority shall award grants
25under this program on a first-come, first-served basis, with
26the following limitations on total grants:
27a. Not to exceed seven hundred fifty thousand dollars in
28calendar year 2022.
29b. Not to exceed three hundred fifty thousand dollars in
30calendar year 2023.
31c. Not to exceed four hundred thousand dollars in calendar
32year 2024.
33d. Not to exceed four hundred fifty thousand dollars in
34calendar year 2025.
35e. Not to exceed five hundred thousand dollars in calendar
-2-1year 2026.
2f. To the extent funds remain available, not to exceed two
3hundred thousand dollars in any subsequent calendar year.
45. The authority shall adopt rules pursuant to chapter 17A
5to implement and administer this section.
66. Each year that moneys are appropriated to the fund
7established in this section, the authority shall submit a
8report to the general assembly and the governor’s office that
9provides the total number of grants awarded, the amount of each
10grant, the state where each grantee’s employer is located, the
11city and county in this state to which each grantee relocated,
12whether the new remote worker works out of the person’s home
13or a coworking space, and if applicable, the city and county
14in which the coworking space is located. The report shall be
15submitted by January 31 of each year for the prior calendar
16year.
17EXPLANATION
18The inclusion of this explanation does not constitute agreement with
19the explanation’s substance by the members of the general assembly.
20This bill relates to grants for new remote workers who
21relocate to this state and who are employed by an out-of-state
22employer, and creates and makes appropriations to the new
23remote worker grant fund.
24The bill defines “new remote worker” as an individual who is
25a full-time employee of a business that is domiciled or has its
26primary place of business outside of this state, who performs
27the majority of the person’s duties for the business remotely
28from a home office or a coworking space located in this state,
29and who becomes a full-time resident of this state on or after
30January 1, 2022.
31Under the bill, a new remote worker is eligible for a
32grant for qualifying remote worker expenses in an amount not
33to exceed $5,000 per calendar year. A new remote worker is
34eligible for a grant for a maximum of two calendar years.
35“Qualifying remote worker expenses” is defined in the bill as
-3-1actual, substantiated costs that a new remote worker incurs
2for relocation to this state, computer software and hardware,
3broadband access or upgrade, and membership in a coworking
4space. The expenses must be necessary to perform the remote
5worker’s employment duties and cannot also be reimbursed by the
6employer. “Coworking space” is defined in the bill.
7The bill requires the authority to establish a new remote
8worker grant fund for the purpose of providing grants to
9new remote workers. There is appropriated from the general
10fund of the state to the remote worker grant fund for the
11new remote worker grant program $750,000 for the fiscal year
12beginning July 1, 2021, $350,000 for the fiscal year beginning
13July 1, 2022, $400,000 for the fiscal year beginning July 1,
142023, $450,000 for the fiscal year beginning July 1, 2024,
15and $500,000 for the fiscal year beginning July 1, 2025.
16Notwithstanding Code section 8.33, moneys remaining in the fund
17at the end of each fiscal year shall not revert to any fund and
18shall remain in the fund.
19Subject to funding, the authority is required by the bill to
20award grants on a first-come, first-served basis, not exceeding
21total grants of $750,000 in calendar year 2022, $350,000 in
22calendar year 2023, $400,000 in calendar year 2024, $450,000
23in calendar year 2025, and $500,000 in calendar year 2026. To
24the extent funds remain available in subsequent calendar years,
25total grants cannot exceed $200,000 in any calendar year.
26The bill requires the Iowa economic development authority
27to adopt rules to implement and administer the requirements of
28the bill.
29Each year that moneys are appropriated to the fund, the
30authority must submit a report to the general assembly and the
31governor’s office providing details related to the grants and
32grantees. The report is due by January 31 of every year for the
33immediately preceding calendar year.
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