House File 2354 - Introduced HOUSE FILE 2354 BY COMMITTEE ON ECONOMIC GROWTH/REBUILD IOWA (SUCCESSOR TO HSB 590) (COMPANION TO SF2212 BY COMMITTEE ON ECONOMIC GROWTH/REBUILD IOWA) A BILL FOR An Act relating to economic development by making technical 1 and policy changes related to environmental response 2 projects and to certain programs administered by the 3 economic development authority and including retroactive 4 applicability provisions. 5 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 6 TLSB 5263HV (2) 84 ad/sc

H.F. 2354 DIVISION I 1 TARGETED JOBS WITHHOLDING ELIGIBILITY 2 Section 1. Section 403.19A, subsection 1, paragraph a, Code 3 Supplement 2011, is amended to read as follows: 4 a. “Business” means any an enterprise that is located in 5 this state and that is operated for profit and under a single 6 management. “Business” includes professional services , or 7 industrial enterprise, including and industrial enterprises, 8 including but not limited to medical treatment facilities, 9 manufacturing facilities, corporate headquarters, and research 10 facilities. “Business” does not include a retail operation , a 11 government entity, or a business which closes or substantially 12 reduces its operation in one area of this state and relocates 13 substantially the same operation to another area of this state. 14 DIVISION II 15 ACCELERATED CAREER EDUCATION PHYSICAL INFRASTRUCTURE PROJECTS 16 Sec. 2. Section 260G.6, subsections 1, 3, and 4, Code 17 Supplement 2011, are amended to read as follows: 18 1. An accelerated career education fund is established 19 in the state treasury under the control of the economic 20 development authority consisting of moneys appropriated to the 21 authority fund for purposes of funding the cost of accelerated 22 career education program capital projects. 23 3. If moneys are appropriated by the general assembly to 24 support program capital costs, the moneys shall be allocated 25 according to rules adopted by the economic development 26 authority pursuant to chapter 17A equally to each community 27 college . 28 4. In order to receive moneys pursuant to this section , 29 a program agreement approved by the community college board 30 of directors shall be in place, program capital cost requests 31 shall be approved by the economic development authority 32 created in section 15.105 , and employer contributions toward 33 program capital costs shall be certified and agreed to in the 34 agreement. Program capital cost requests shall be approved 35 -1- LSB 5263HV (2) 84 ad/sc 1/ 7

H.F. 2354 or denied not later than sixty days following receipt of the 1 request by the economic development authority. 2 DIVISION III 3 IOWA INNOVATION COUNCIL 4 Sec. 3. Section 15.117A, subsection 2, Code Supplement 5 2011, is amended by adding the following new paragraph: 6 NEW PARAGRAPH . c. A vacancy on the council shall be filled 7 in the same manner as the original selection and shall be for 8 the remainder of the term. 9 DIVISION IV 10 ENTERPRISE ZONE CERTIFICATION SUNSET 11 Sec. 4. Section 15E.192, subsection 4, paragraph b, Code 12 Supplement 2011, is amended to read as follows: 13 b. A county or city may apply to the authority for an area 14 to be certified as an enterprise zone at any time prior to July 15 1, 2012 2014 . However, the total amount of land designated as 16 enterprise zones under subsection 1 , and any other enterprise 17 zones certified by the authority, excluding those approved 18 pursuant to subsection 2 and section 15E.194 , subsections 3 and 19 5 , shall not exceed in the aggregate one percent of the total 20 county area. 21 DIVISION V 22 ENVIRONMENTAL RESPONSE PROJECTS 23 Sec. 5. Section 455I.2, subsection 5, unnumbered paragraph 24 1, Code 2011, is amended to read as follows: 25 “Environmental response project” means a plan or work 26 performed for environmental remediation or flood control 27 affecting real property and conducted under or by one of the 28 following: 29 Sec. 6. Section 455I.11, subsection 3, Code 2011, is amended 30 to read as follows: 31 3. A person is not responsible for or subject to liability 32 for environmental remediation or flood control solely because 33 it has the right to enforce an environmental covenant. 34 Sec. 7. RETROACTIVE APPLICABILITY AND COVENANT VALIDITY. 35 -2- LSB 5263HV (2) 84 ad/sc 2/ 7

H.F. 2354 1. This division of this Act applies retroactively to 1 an instrument entered into on or after July 1, 1992, and 2 before the effective date of this division of this Act, if the 3 instrument meets the following requirements: 4 a. The instrument creates restrictions or obligations with 5 respect to flood control affecting real property that would 6 qualify as activity and use limitations under chapter 455I, as 7 amended in this division of this Act. 8 b. A grantor or holder or a party to or beneficiary of 9 the instrument, as named in the instrument, files by July 1, 10 2013, in the office of the recorder of deeds of the county in 11 which the real estate is situated, a statement in writing, duly 12 acknowledged, doing all of the following: 13 (1) Definitely describing the real estate involved and 14 the originally recorded instrument creating the restrictions 15 or obligations with respect to flood control affecting real 16 property. 17 (2) Declaring that such instrument is an environmental 18 covenant for purposes of chapter 455I, as amended in this 19 division of this Act. 20 2. An instrument meeting the requirements of this section of 21 this division of this Act is valid and enforceable under the 22 provisions of chapter 455I, as amended in this division of this 23 Act, and the validity of the environmental covenant established 24 by the instrument is not impaired by section 558.68 or 614.24. 25 DIVISION VI 26 REGIONAL SPORTS AUTHORITY DISTRICTS 27 Sec. 8. Section 15E.321, subsection 2, Code Supplement 28 2011, is amended to read as follows: 29 2. a. A convention and visitors bureau may apply to the 30 authority for certification of a regional sports authority 31 district which may include more than one city and more than 32 one convention and visitors bureau within the district. The 33 authority shall not certify more than ten such districts. 34 b. If more than ten applications are received in any 35 -3- LSB 5263HV (2) 84 ad/sc 3/ 7

H.F. 2354 certification year, the authority shall certify the districts 1 on a competitive basis. In evaluating the applications for 2 certification, the authority shall consider the economic impact 3 to the state of the activities proposed in the application, the 4 geographic diversity of the districts applying, and any other 5 factors the authority deems relevant. 6 DIVISION VII 7 CONFIDENTIAL INFORMATION 8 Sec. 9. Section 15.118, subsection 2, Code Supplement 2011, 9 is amended to read as follows: 10 2. All information contained in an application for 11 financial assistance submitted to the authority shall remain 12 confidential while the authority is reviewing the application, 13 processing requests for confidentiality, negotiating with the 14 applicant, and preparing the application for consideration by 15 the director or the board. The authority may release certain 16 information in an application for financial assistance to a 17 third party for technical review. If the authority releases 18 such information to a third party, the authority shall ensure 19 that the third party protects such information from public 20 disclosure. After the authority has considered a request for 21 confidentiality pursuant to subsection 3 , any information not 22 deemed confidential shall be made publicly available. Any 23 information deemed confidential by the authority shall also 24 be kept confidential during and following administration of 25 a contract executed pursuant to a successful application. 26 Information deemed confidential may be treated as such for as 27 long as the authority deems necessary to protect an applicant’s 28 competitive position, and the confidential treatment of the 29 information shall apply whether the authority is in possession 30 of the information or whether the information has been sent to 31 off-site storage or to the state archivist. 32 DIVISION VIII 33 EMPLOYEES ELIGIBLE FOR JOBS TRAINING PROGRAMS 34 Sec. 10. Section 260E.2, subsection 6, Code 2011, is amended 35 -4- LSB 5263HV (2) 84 ad/sc 4/ 7

H.F. 2354 to read as follows: 1 6. “Employee” means the person employed in a new job. 2 “Employee” does not include a person not subject to the 3 withholding of Iowa income pursuant to a reciprocal agreement 4 under section 422.8, subsection 5. 5 Sec. 11. Section 260F.2, subsection 6, Code Supplement 6 2011, is amended to read as follows: 7 6. “Employee” means a person currently employed by a 8 business who is to be trained. However, “employee” does not 9 include a person with executive responsibilities or replacement 10 workers who are hired as a result of a strike, lockout, or 11 other labor dispute in Iowa. 12 EXPLANATION 13 This bill makes technical and policy changes relating 14 to environmental response projects and certain programs 15 administered by the economic development authority (EDA). 16 Division I of the bill amends the definition of “business” 17 under Code section 403.19A, which determines the eligibility 18 of an entity to enter into an agreement with a pilot project 19 city under the targeted jobs withholding credit program. The 20 bill adds that a business for purposes of the targeted jobs 21 withholding credit program is a for-profit enterprise that 22 is located within the state and that operates under single 23 management. The bill provides that a government entity does 24 not constitute a business for purposes of the program. 25 Division II of the bill amends Code section 260G.6 to provide 26 that the EDA would not control the accelerated career education 27 fund, and appropriations for accelerated career education would 28 be directed to the fund rather than the EDA. The bill states 29 that moneys appropriated by the general assembly for program 30 capital costs shall be allocated equally to each community 31 college rather than requiring the EDA to allocate the moneys. 32 The bill strikes language that requires a program agreement to 33 be in place. The bill strikes language that would require the 34 EDA to approve program capital cost requests. 35 -5- LSB 5263HV (2) 84 ad/sc 5/ 7

H.F. 2354 Division III of the bill amends Code section 15.117A to 1 require a vacancy on the Iowa innovation council be filled 2 for the remainder of the term in the same manner in which the 3 original selection was made. 4 Division IV of the bill amends Code section 15E.192 to allow 5 counties or cities to apply to the EDA to be certified as an 6 enterprise zone any time prior to July 1, 2014, rather than 7 July 1, 2012. 8 Division V of the bill amends Code section 455I.2 defining 9 an environmental response project to include a plan or 10 work performed for flood control. Current law and the bill 11 exempt a flood covenant that meets certain standards from 12 the requirement that certain conveyances containing land use 13 restrictions be renewed every 21 years. Under the bill, a 14 flood covenant can be exempted if a grantor or holder or 15 any party to or beneficiary of the flood control covenant, 16 who is named in the document creating the flood control 17 covenant, files a written statement that is duly acknowledged 18 and definitely describes the real estate involved in the 19 original recorded flood control covenant and describes the 20 originally recorded flood control covenant. The written 21 statement must also declare that the flood control covenant is 22 an environmental covenant for purposes of Code chapter 455I. 23 Division V applies retroactively to eligible flood control 24 covenants entered into on or after July 1, 1992, and before the 25 effective date of this division of this Act. 26 Division VI of the bill amends Code section 15E.321 to 27 include criteria for the EDA to consider when determining 28 whether to certify a regional sports authority district when 29 more than 10 applications for certification are received. 30 Division VII of the bill amends Code section 15.118 to add 31 that an applicant’s confidential information contained in an 32 application for financial assistance may remain confidential 33 as long as necessary to protect the applicant’s competitive 34 position. The bill also provides that the information’s 35 -6- LSB 5263HV (2) 84 ad/sc 6/ 7

H.F. 2354 confidential status and treatment applies regardless of 1 whether the authority has possession of the information or the 2 information has been sent to off-site storage or the state 3 archivist. 4 Division VIII of the bill amends Code sections 260E.2 and 5 260F.2 regarding the definition of an employee for purposes 6 of the industrial new jobs training and the jobs training 7 programs, respectively. The bill provides that an employee for 8 purposes of eligibility for the jobs training program does not 9 include a person with executive responsibilities. The bill 10 also provides that a person not subject to withholding of Iowa 11 income tax because of a reciprocal withholding agreement with 12 another state does not qualify as an employee for purposes of 13 eligibility for the industrial jobs training program. 14 -7- LSB 5263HV (2) 84 ad/sc 7/ 7