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House File 621 - IntroducedA Bill ForAn Act 1relating to programs and projects administered by the
2economic development authority.
3BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1DIVISION I
2SPORTS TOURISM PROGRAM — TECHNICAL CHANGES
3 Section 1. Section 15F.401, subsections 2 and 6, Code 2017,
4are amended to read as follows:
52. a. A city or county in the state or a public
6organization entity, including a convention and visitors
7bureau or a district, may apply to the authority for financial
8assistance for a project that actively and directly promotes
9sporting events for accredited colleges and universities and
10other sporting events in the area served by the city, county,
11or public organization entity.
12b. A city, county, or public organization entity may apply
13for and receive financial assistance for more than one project.
14c. A city, county, or public organization entity may apply
15for financial assistance for a project that spans multiple
16fiscal years or may apply for renewal of financial assistance
17awarded in a prior year if all applicable contractual
18requirements are met. The decision as to whether to renew
19an award shall be at the discretion of the board. The board
20may adopt by rule certain metrics and return on investment
21estimates for purposes of this paragraph. The authority may
22include such metrics and estimates in a program agreement
23executed pursuant to this section.
24d. A convention and visitors bureau may apply to the
25authority for financial assistance pursuant to this section and
26a district may apply to the authority for district financial
27assistance, but a convention and visitors bureau shall not in
28the same year receive financial assistance under the program
29created in this section and financial assistance as part of a
30district.
316. a. A city, county, or public organization entity
32 may use financial assistance received under the program for
33marketing, promotions, and infrastructure. Whether an activity
34or individual cost item is directly related to the promotion
35of the sporting event shall be within the discretion of the
-1-1authority.
2b. All applications to the authority for financial
3assistance shall be made at least ninety days prior to an
4event’s scheduled date. A city, county, or public organization
5 entity shall not use financial assistance received under the
6program as reimbursement for completed projects.
7 Sec. 2. Section 15F.403, subsection 2, paragraph a, Code
82017, is amended to read as follows:
9a. Moneys in the fund are appropriated to the authority
10for purposes of providing financial assistance to cities,
11counties, and public organizations entities under the sports
12tourism program established and administered pursuant to this
13subchapter.
14DIVISION II
15TARGETED SMALL BUSINESS CERTIFICATION
16 Sec. 3. Section 8A.111, subsection 7, Code 2017, is amended
17to read as follows:
187. An annual report regarding the Iowa targeted small
19business procurement Act activities of the department as
20required under section 15.108, subsection 7, paragraph
21“c”, and quarterly reports regarding the total dollar
22amount of certified purchases for certified targeted small
23businesses during the previous quarter as required in section
2473.16, subsection 2. The department shall keep any vendor
25identification information received from the department of
26inspections and appeals economic development authority as
27provided in section 10A.104, subsection 8 15.108, subsection
287, paragraph “0d”, and necessary for the quarterly reports,
29confidential to the same extent as the department of inspection
30and appeals economic development authority is required to
31keep such information. Confidential information received by
32the department from the department of inspections and appeals
33 economic development authority shall not be disclosed except
34pursuant to court order or with the approval of the department
35of inspections and appeals economic development authority.
-2-1 Sec. 4. Section 10A.104, subsection 8, Code 2017, is amended
2by striking the subsection.
3 Sec. 5. Section 12.44, Code 2017, is amended to read as
4follows:
512.44 Iowa satisfaction and performance bond program.
6Agencies of state government shall be required to waive the
7requirement of satisfaction, performance, surety, or bid bonds
8for targeted small businesses which are able to demonstrate
9the inability of securing such a bond because of a lack of
10experience, lack of net worth, or lack of capital. This waiver
11shall not apply to businesses with a record of repeated failure
12of substantial performance or material breach of contract in
13prior circumstances. The waiver shall be applied only to a
14project or individual transaction amounting to fifty thousand
15dollars or less, notwithstanding section 573.2. In order to
16qualify, the targeted small business shall provide written
17evidence to the department of inspections and appeals economic
18development authority that the bond would otherwise be denied
19the business. The granting of the waiver shall in no way
20relieve the business from its contractual obligations and shall
21not preclude the state agency from pursuing any remedies under
22law upon default or breach of contract.
23The department of inspections and appeals economic
24development authority shall certify targeted small businesses
25for eligibility and participation in this program and shall
26make this information available to other state agencies.
27Subdivisions of state government may also grant such a
28waiver under similar circumstances.
29 Sec. 6. Section 15.107B, subsection 2, paragraph b, Code
302017, is amended to read as follows:
31b. A summary of the report filed by December 1 of each year
32by the department of inspections and appeals with the authority
33regarding certifications of targeted small businesses. At a
34minimum, the summary shall include the number of certified
35targeted small businesses for the previous year, the increase
-3-1or decrease in that number during the previous fiscal year
2compared to the prior fiscal year, and the number of targeted
3small businesses that have been decertified in the previous
4fiscal year.
5 Sec. 7. Section 15.108, subsection 7, paragraph c,
6subparagraph (1), subparagraph division (b), Code 2017, is
7amended by striking the subparagraph division.
8 Sec. 8. Section 15.108, subsection 7, Code 2017, is amended
9by adding the following new paragraph:
10 NEW PARAGRAPH. 0d. (1) Establish standards and procedures,
11by rule, for certifying that targeted small businesses are
12eligible to participate in the procurement program established
13in sections 73.15 through 73.21 and are eligible for financial
14and technical assistance provided for under this subsection.
15The rules for certifying eligibility adopted pursuant to this
16paragraph shall not recognize self-certification by a business.
17The authority may also establish, by rule, the appropriate
18level of public access to differing classes of electronic
19records and other records under the procurement program to
20ensure the confidentiality of any records that are required by
21law to be confidential.
22(2) Maintain a current directory of targeted small
23businesses certified pursuant to this paragraph. The
24authority shall also provide information to the department of
25administrative services necessary for the identification of
26targeted small businesses under section 8A.111, subsection 7.
27 Sec. 9. Section 15.108, subsection 7, paragraph g,
28subparagraph (1), Code 2017, is amended to read as follows:
29(1) Developing a uniform small business vendor application
30form which can be adopted by all agencies and departments of
31state government to identify small businesses and targeted
32small businesses which desire to sell goods and services to the
33state. This form shall also contain information which can be
34used to determine certification as a targeted small business
35pursuant to section 10A.104, subsection 8 paragraph “0d”.
-4-1 Sec. 10. Section 73.16, subsection 2, paragraph a,
2unnumbered paragraph 1, Code 2017, is amended to read as
3follows:
4Prior to the commencement of a fiscal year, the director of
5each agency or department of state government having purchasing
6authority, in cooperation with the targeted small business
7marketing and compliance project manager of the economic
8development authority, shall establish for that fiscal year
9a procurement goal from certified targeted small businesses
10identified pursuant to section 10A.104, subsection 8 15.108,
11subsection 7, paragraph “0d”.
12 Sec. 11. Section 73.16, subsection 2, paragraph c,
13subparagraph (3), Code 2017, is amended to read as follows:
14(3) A community college, area education agency, or school
15district shall establish a procurement goal from certified
16targeted small businesses, identified pursuant to section
1710A.104, subsection 8 15.108, subsection 7, paragraph “0d”, of
18at least ten percent of the value of anticipated procurements
19of goods and services including construction, but not including
20utility services, each fiscal year.
21DIVISION III
22TARGETED JOBS WITHHOLDING CREDIT
23 Sec. 12. Section 403.19A, subsection 1, Code 2017, is
24amended by adding the following new paragraph:
25 NEW PARAGRAPH. 0d. “Laborshed wage” means the wage level
26represented by those wages within two standard deviations
27from the mean wage within the laborshed area in which the
28eligible business is located, as calculated by the authority,
29by rule, using the most current covered wage and employment
30data available from the department of workforce development for
31the laborshed area. The authority shall designate laborshed
32areas by rule, in consultation with the department of workforce
33development.
34 Sec. 13. Section 403.19A, subsection 1, paragraph g, Code
352017, is amended to read as follows:
-5- 1g. “Targeted job” means a job in a business which is or will
2be located in a pilot project city that pays a wage at least
3equal to the countywide average laborshed wage. “Targeted job”
4includes new or retained jobs from Iowa business expansions or
5retentions within the city limits of the pilot project city and
6those jobs resulting from established out-of-state businesses,
7as defined by the economic development authority, moving to or
8expanding in Iowa.
9 Sec. 14. Section 403.19A, subsection 2, paragraph b, Code
102017, is amended to read as follows:
11b. (1) The department of economic development authority
12 shall approve four eligible cities as pilot project cities, one
13pursuant to paragraph “a”, subparagraph (1), one pursuant to
14paragraph “a”, subparagraph (2), and two pursuant to paragraph
15“a”, subparagraph (3). If two eligible cities are approved
16which are located in the same county and the county has a
17population of less than forty-five thousand, the two approved
18eligible cities shall be considered one pilot project city. If
19more than two cities meeting the requirements of paragraph “a”,
20subparagraph (3), apply to be designated as a pilot project
21city, the department of economic development authority shall
22determine which two cities hold the most potential to create
23new jobs or generate the greatest capital within their areas.
24Applications from eligible cities filed on or after October 1,
252006, shall not be considered.
26(2) If a pilot project city does not enter into a
27withholding agreement within one year of its approval as a
28pilot project city, the city shall lose its status as a pilot
29project city. If two pilot project cities are located in the
30same county, the loss of status by one pilot project city shall
31not cause the second pilot project city in the county to lose
32its status as a pilot project city. Upon such occurrence,
33the department of economic development authority shall take
34applications from other eligible cities to replace that city.
35Another city shall be designated within six months.
-6- 1(3) On July 1, 2011, the economic development authority
2shall assume responsibility for the administration of this
3subsection.
4EXPLANATION
5The inclusion of this explanation does not constitute agreement with
6the explanation’s substance by the members of the general assembly.
7This bill relates to programs and projects administered by
8the economic development authority (authority).
9Division I of the bill makes technical changes relating
10to the eligibility for applying for and receiving financial
11assistance under the sports tourism program by replacing the
12term “organization” with “entity”.
13Division II of the bill transfers responsibility for
14certifying targeted small businesses under the targeted small
15business procurement goal program, and associated reporting
16requirements, from the department of inspections and appeals to
17the authority. The division also specifies that the authority
18may establish standards for public access to different classes
19of information obtained under the program.
20Division III of the bill relates to the targeted jobs
21withholding credit pilot project by requiring that targeted
22jobs be determined on the basis of a laborshed wage, as defined
23in the bill, rather than a countywide average wage. Under
24the division, a laborshed wage is a wage within two standard
25deviations above or below the average wage within the laborshed
26area.
-7-aw/sc/rn
2economic development authority.
3BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1DIVISION I
2SPORTS TOURISM PROGRAM — TECHNICAL CHANGES
3 Section 1. Section 15F.401, subsections 2 and 6, Code 2017,
4are amended to read as follows:
52. a. A city or county in the state or a public
6organization entity, including a convention and visitors
7bureau or a district, may apply to the authority for financial
8assistance for a project that actively and directly promotes
9sporting events for accredited colleges and universities and
10other sporting events in the area served by the city, county,
11or public organization entity.
12b. A city, county, or public organization entity may apply
13for and receive financial assistance for more than one project.
14c. A city, county, or public organization entity may apply
15for financial assistance for a project that spans multiple
16fiscal years or may apply for renewal of financial assistance
17awarded in a prior year if all applicable contractual
18requirements are met. The decision as to whether to renew
19an award shall be at the discretion of the board. The board
20may adopt by rule certain metrics and return on investment
21estimates for purposes of this paragraph. The authority may
22include such metrics and estimates in a program agreement
23executed pursuant to this section.
24d. A convention and visitors bureau may apply to the
25authority for financial assistance pursuant to this section and
26a district may apply to the authority for district financial
27assistance, but a convention and visitors bureau shall not in
28the same year receive financial assistance under the program
29created in this section and financial assistance as part of a
30district.
316. a. A city, county, or public organization entity
32 may use financial assistance received under the program for
33marketing, promotions, and infrastructure. Whether an activity
34or individual cost item is directly related to the promotion
35of the sporting event shall be within the discretion of the
-1-1authority.
2b. All applications to the authority for financial
3assistance shall be made at least ninety days prior to an
4event’s scheduled date. A city, county, or public organization
5 entity shall not use financial assistance received under the
6program as reimbursement for completed projects.
7 Sec. 2. Section 15F.403, subsection 2, paragraph a, Code
82017, is amended to read as follows:
9a. Moneys in the fund are appropriated to the authority
10for purposes of providing financial assistance to cities,
11counties, and public organizations entities under the sports
12tourism program established and administered pursuant to this
13subchapter.
14DIVISION II
15TARGETED SMALL BUSINESS CERTIFICATION
16 Sec. 3. Section 8A.111, subsection 7, Code 2017, is amended
17to read as follows:
187. An annual report regarding the Iowa targeted small
19business procurement Act activities of the department as
20required under section 15.108, subsection 7, paragraph
21“c”, and quarterly reports regarding the total dollar
22amount of certified purchases for certified targeted small
23businesses during the previous quarter as required in section
2473.16, subsection 2. The department shall keep any vendor
25identification information received from the department of
26inspections and appeals economic development authority as
27provided in section 10A.104, subsection 8 15.108, subsection
287, paragraph “0d”, and necessary for the quarterly reports,
29confidential to the same extent as the department of inspection
30and appeals economic development authority is required to
31keep such information. Confidential information received by
32the department from the department of inspections and appeals
33 economic development authority shall not be disclosed except
34pursuant to court order or with the approval of the department
35of inspections and appeals economic development authority.
-2-1 Sec. 4. Section 10A.104, subsection 8, Code 2017, is amended
2by striking the subsection.
3 Sec. 5. Section 12.44, Code 2017, is amended to read as
4follows:
512.44 Iowa satisfaction and performance bond program.
6Agencies of state government shall be required to waive the
7requirement of satisfaction, performance, surety, or bid bonds
8for targeted small businesses which are able to demonstrate
9the inability of securing such a bond because of a lack of
10experience, lack of net worth, or lack of capital. This waiver
11shall not apply to businesses with a record of repeated failure
12of substantial performance or material breach of contract in
13prior circumstances. The waiver shall be applied only to a
14project or individual transaction amounting to fifty thousand
15dollars or less, notwithstanding section 573.2. In order to
16qualify, the targeted small business shall provide written
17evidence to the department of inspections and appeals economic
18development authority that the bond would otherwise be denied
19the business. The granting of the waiver shall in no way
20relieve the business from its contractual obligations and shall
21not preclude the state agency from pursuing any remedies under
22law upon default or breach of contract.
23The department of inspections and appeals economic
24development authority shall certify targeted small businesses
25for eligibility and participation in this program and shall
26make this information available to other state agencies.
27Subdivisions of state government may also grant such a
28waiver under similar circumstances.
29 Sec. 6. Section 15.107B, subsection 2, paragraph b, Code
302017, is amended to read as follows:
31b. A summary of the report filed by December 1 of each year
32by the department of inspections and appeals with the authority
33regarding certifications of targeted small businesses. At a
34minimum, the summary shall include the number of certified
35targeted small businesses for the previous year, the increase
-3-1or decrease in that number during the previous fiscal year
2compared to the prior fiscal year, and the number of targeted
3small businesses that have been decertified in the previous
4fiscal year.
5 Sec. 7. Section 15.108, subsection 7, paragraph c,
6subparagraph (1), subparagraph division (b), Code 2017, is
7amended by striking the subparagraph division.
8 Sec. 8. Section 15.108, subsection 7, Code 2017, is amended
9by adding the following new paragraph:
10 NEW PARAGRAPH. 0d. (1) Establish standards and procedures,
11by rule, for certifying that targeted small businesses are
12eligible to participate in the procurement program established
13in sections 73.15 through 73.21 and are eligible for financial
14and technical assistance provided for under this subsection.
15The rules for certifying eligibility adopted pursuant to this
16paragraph shall not recognize self-certification by a business.
17The authority may also establish, by rule, the appropriate
18level of public access to differing classes of electronic
19records and other records under the procurement program to
20ensure the confidentiality of any records that are required by
21law to be confidential.
22(2) Maintain a current directory of targeted small
23businesses certified pursuant to this paragraph. The
24authority shall also provide information to the department of
25administrative services necessary for the identification of
26targeted small businesses under section 8A.111, subsection 7.
27 Sec. 9. Section 15.108, subsection 7, paragraph g,
28subparagraph (1), Code 2017, is amended to read as follows:
29(1) Developing a uniform small business vendor application
30form which can be adopted by all agencies and departments of
31state government to identify small businesses and targeted
32small businesses which desire to sell goods and services to the
33state. This form shall also contain information which can be
34used to determine certification as a targeted small business
35pursuant to section 10A.104, subsection 8 paragraph “0d”.
-4-1 Sec. 10. Section 73.16, subsection 2, paragraph a,
2unnumbered paragraph 1, Code 2017, is amended to read as
3follows:
4Prior to the commencement of a fiscal year, the director of
5each agency or department of state government having purchasing
6authority, in cooperation with the targeted small business
7marketing and compliance project manager of the economic
8development authority, shall establish for that fiscal year
9a procurement goal from certified targeted small businesses
10identified pursuant to section 10A.104, subsection 8 15.108,
11subsection 7, paragraph “0d”.
12 Sec. 11. Section 73.16, subsection 2, paragraph c,
13subparagraph (3), Code 2017, is amended to read as follows:
14(3) A community college, area education agency, or school
15district shall establish a procurement goal from certified
16targeted small businesses, identified pursuant to section
1710A.104, subsection 8 15.108, subsection 7, paragraph “0d”, of
18at least ten percent of the value of anticipated procurements
19of goods and services including construction, but not including
20utility services, each fiscal year.
21DIVISION III
22TARGETED JOBS WITHHOLDING CREDIT
23 Sec. 12. Section 403.19A, subsection 1, Code 2017, is
24amended by adding the following new paragraph:
25 NEW PARAGRAPH. 0d. “Laborshed wage” means the wage level
26represented by those wages within two standard deviations
27from the mean wage within the laborshed area in which the
28eligible business is located, as calculated by the authority,
29by rule, using the most current covered wage and employment
30data available from the department of workforce development for
31the laborshed area. The authority shall designate laborshed
32areas by rule, in consultation with the department of workforce
33development.
34 Sec. 13. Section 403.19A, subsection 1, paragraph g, Code
352017, is amended to read as follows:
-5- 1g. “Targeted job” means a job in a business which is or will
2be located in a pilot project city that pays a wage at least
3equal to the countywide average laborshed wage. “Targeted job”
4includes new or retained jobs from Iowa business expansions or
5retentions within the city limits of the pilot project city and
6those jobs resulting from established out-of-state businesses,
7as defined by the economic development authority, moving to or
8expanding in Iowa.
9 Sec. 14. Section 403.19A, subsection 2, paragraph b, Code
102017, is amended to read as follows:
11b. (1) The department of economic development authority
12 shall approve four eligible cities as pilot project cities, one
13pursuant to paragraph “a”, subparagraph (1), one pursuant to
14paragraph “a”, subparagraph (2), and two pursuant to paragraph
15“a”, subparagraph (3). If two eligible cities are approved
16which are located in the same county and the county has a
17population of less than forty-five thousand, the two approved
18eligible cities shall be considered one pilot project city. If
19more than two cities meeting the requirements of paragraph “a”,
20subparagraph (3), apply to be designated as a pilot project
21city, the department of economic development authority shall
22determine which two cities hold the most potential to create
23new jobs or generate the greatest capital within their areas.
24Applications from eligible cities filed on or after October 1,
252006, shall not be considered.
26(2) If a pilot project city does not enter into a
27withholding agreement within one year of its approval as a
28pilot project city, the city shall lose its status as a pilot
29project city. If two pilot project cities are located in the
30same county, the loss of status by one pilot project city shall
31not cause the second pilot project city in the county to lose
32its status as a pilot project city. Upon such occurrence,
33the department of economic development authority shall take
34applications from other eligible cities to replace that city.
35Another city shall be designated within six months.
-6- 1(3) On July 1, 2011, the economic development authority
2shall assume responsibility for the administration of this
3subsection.
4EXPLANATION
5The inclusion of this explanation does not constitute agreement with
6the explanation’s substance by the members of the general assembly.
7This bill relates to programs and projects administered by
8the economic development authority (authority).
9Division I of the bill makes technical changes relating
10to the eligibility for applying for and receiving financial
11assistance under the sports tourism program by replacing the
12term “organization” with “entity”.
13Division II of the bill transfers responsibility for
14certifying targeted small businesses under the targeted small
15business procurement goal program, and associated reporting
16requirements, from the department of inspections and appeals to
17the authority. The division also specifies that the authority
18may establish standards for public access to different classes
19of information obtained under the program.
20Division III of the bill relates to the targeted jobs
21withholding credit pilot project by requiring that targeted
22jobs be determined on the basis of a laborshed wage, as defined
23in the bill, rather than a countywide average wage. Under
24the division, a laborshed wage is a wage within two standard
25deviations above or below the average wage within the laborshed
26area.
-7-aw/sc/rn