Bill Text: IA HF555 | 2017-2018 | 87th General Assembly | Introduced
Bill Title: A bill for an act relating to programs and projects administered by the economic development authority. (Formerly HSB 36)(See HF 621.)
Spectrum: Committee Bill
Status: (Introduced - Dead) 2017-04-10 - Withdrawn. H.J. 960. [HF555 Detail]
Download: Iowa-2017-HF555-Introduced.html
House File 555 - Introduced HOUSE FILE BY COMMITTEE ON ECONOMIC GROWTH (SUCCESSOR TO HSB 36) A BILL FOR 1 An Act relating to programs and projects administered by the 2 economic development authority. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: TLSB 1328HV (1) 87 aw/sc/rn PAG LIN 1 1 DIVISION I 1 2 SPORTS TOURISM PROGRAM == TECHNICAL CHANGES 1 3 Section 1. Section 15F.401, subsections 2 and 6, Code 2017, 1 4 are amended to read as follows: 1 5 2. a. A city or county in the state or a public 1 6organizationentity, including a convention and visitors 1 7 bureau or a district, may apply to the authority for financial 1 8 assistance for a project that actively and directly promotes 1 9 sporting events for accredited colleges and universities and 1 10 other sporting events in the area served by the city, county, 1 11 or publicorganizationentity. 1 12 b. A city, county, or publicorganizationentity may apply 1 13 for and receive financial assistance for more than one project. 1 14 c. A city, county, or publicorganizationentity may apply 1 15 for financial assistance for a project that spans multiple 1 16 fiscal years or may apply for renewal of financial assistance 1 17 awarded in a prior year if all applicable contractual 1 18 requirements are met. The decision as to whether to renew 1 19 an award shall be at the discretion of the board. The board 1 20 may adopt by rule certain metrics and return on investment 1 21 estimates for purposes of this paragraph. The authority may 1 22 include such metrics and estimates in a program agreement 1 23 executed pursuant to this section. 1 24 d. A convention and visitors bureau may apply to the 1 25 authority for financial assistance pursuant to this section and 1 26 a district may apply to the authority for district financial 1 27 assistance, but a convention and visitors bureau shall not in 1 28 the same year receive financial assistance under the program 1 29 created in this section and financial assistance as part of a 1 30 district. 1 31 6. a. A city, county, or publicorganizationentity 1 32 may use financial assistance received under the program for 1 33 marketing, promotions, and infrastructure. Whether an activity 1 34 or individual cost item is directly related to the promotion 1 35 of the sporting event shall be within the discretion of the 2 1 authority. 2 2 b. All applications to the authority for financial 2 3 assistance shall be made at least ninety days prior to an 2 4 event's scheduled date. A city, county, or publicorganization 2 5entity shall not use financial assistance received under the 2 6 program as reimbursement for completed projects. 2 7 Sec. 2. Section 15F.403, subsection 2, paragraph a, Code 2 8 2017, is amended to read as follows: 2 9 a. Moneys in the fund are appropriated to the authority 2 10 for purposes of providing financial assistance to cities, 2 11 counties, and publicorganizationsentities under the sports 2 12 tourism program established and administered pursuant to this 2 13 subchapter. 2 14 DIVISION II 2 15 TARGETED SMALL BUSINESS CERTIFICATION 2 16 Sec. 3. Section 8A.111, subsection 7, Code 2017, is amended 2 17 to read as follows: 2 18 7. An annual report regarding the Iowa targeted small 2 19 business procurement Act activities of the department as 2 20 required under section 15.108, subsection 7, paragraph 2 21 "c", and quarterly reports regarding the total dollar 2 22 amount of certified purchases for certified targeted small 2 23 businesses during the previous quarter as required in section 2 24 73.16, subsection 2. The department shall keep any vendor 2 25 identification information received from thedepartment of 2 26 inspections and appealseconomic development authority as 2 27 provided in section10A.104, subsection 815.108, subsection 2 28 7, paragraph "0d", and necessary for the quarterly reports, 2 29 confidential to the same extent as thedepartment of inspection 2 30 and appealseconomic development authority is required to 2 31 keep such information. Confidential information received by 2 32 the department from thedepartment of inspections and appeals 2 33economic development authority shall not be disclosed except 2 34 pursuant to court order or with the approval of thedepartment 2 35 of inspections and appealseconomic development authority. 3 1 Sec. 4. Section 10A.104, subsection 8, Code 2017, is amended 3 2 by striking the subsection. 3 3 Sec. 5. Section 12.44, Code 2017, is amended to read as 3 4 follows: 3 5 12.44 Iowa satisfaction and performance bond program. 3 6 Agencies of state government shall be required to waive the 3 7 requirement of satisfaction, performance, surety, or bid bonds 3 8 for targeted small businesses which are able to demonstrate 3 9 the inability of securing such a bond because of a lack of 3 10 experience, lack of net worth, or lack of capital. This waiver 3 11 shall not apply to businesses with a record of repeated failure 3 12 of substantial performance or material breach of contract in 3 13 prior circumstances. The waiver shall be applied only to a 3 14 project or individual transaction amounting to fifty thousand 3 15 dollars or less, notwithstanding section 573.2. In order to 3 16 qualify, the targeted small business shall provide written 3 17 evidence to thedepartment of inspections and appealseconomic 3 18 development authority that the bond would otherwise be denied 3 19 the business. The granting of the waiver shall in no way 3 20 relieve the business from its contractual obligations and shall 3 21 not preclude the state agency from pursuing any remedies under 3 22 law upon default or breach of contract. 3 23 Thedepartment of inspections and appealseconomic 3 24 development authority shall certify targeted small businesses 3 25 for eligibility and participation in this program and shall 3 26 make this information available to other state agencies. 3 27 Subdivisions of state government may also grant such a 3 28 waiver under similar circumstances. 3 29 Sec. 6. Section 15.107B, subsection 2, paragraph b, Code 3 30 2017, is amended to read as follows: 3 31 b. A summary ofthe report filed by December 1 of each year 3 32 by the department of inspections and appeals with the authority 3 33 regardingcertifications of targeted small businesses. At a 3 34 minimum, the summary shall include the number of certified 3 35 targeted small businesses for the previous year, the increase 4 1 or decrease in that number during the previous fiscal year 4 2 compared to the prior fiscal year, and the number of targeted 4 3 small businesses that have been decertified in the previous 4 4 fiscal year. 4 5 Sec. 7. Section 15.108, subsection 7, paragraph c, 4 6 subparagraph (1), subparagraph division (b), Code 2017, is 4 7 amended by striking the subparagraph division. 4 8 Sec. 8. Section 15.108, subsection 7, Code 2017, is amended 4 9 by adding the following new paragraph: 4 10 NEW PARAGRAPH. 0d. (1) Establish standards and procedures, 4 11 by rule, for certifying that targeted small businesses are 4 12 eligible to participate in the procurement program established 4 13 in sections 73.15 through 73.21 and are eligible for financial 4 14 and technical assistance provided for under this subsection. 4 15 The rules for certifying eligibility adopted pursuant to this 4 16 paragraph shall not recognize self=certification by a business. 4 17 The authority may also establish, by rule, the appropriate 4 18 level of public access to differing classes of electronic 4 19 records and other records under the procurement program to 4 20 ensure the confidentiality of any records that are required by 4 21 law to be confidential. 4 22 (2) Maintain a current directory of targeted small 4 23 businesses certified pursuant to this paragraph. The 4 24 authority shall also provide information to the department of 4 25 administrative services necessary for the identification of 4 26 targeted small businesses under section 8A.111, subsection 7. 4 27 Sec. 9. Section 15.108, subsection 7, paragraph g, 4 28 subparagraph (1), Code 2017, is amended to read as follows: 4 29 (1) Developing a uniform small business vendor application 4 30 form which can be adopted by all agencies and departments of 4 31 state government to identify small businesses and targeted 4 32 small businesses which desire to sell goods and services to the 4 33 state. This form shall also contain information which can be 4 34 used to determine certification as a targeted small business 4 35 pursuant tosection 10A.104, subsection 8paragraph "0d". 5 1 Sec. 10. Section 73.16, subsection 2, paragraph a, 5 2 unnumbered paragraph 1, Code 2017, is amended to read as 5 3 follows: 5 4 Prior to the commencement of a fiscal year, the director of 5 5 each agency or department of state government having purchasing 5 6 authority, in cooperation with the targeted small business 5 7marketing and complianceproject manager of the economic 5 8 development authority, shall establish for that fiscal year 5 9 a procurement goal from certified targeted small businesses 5 10 identified pursuant to section10A.104, subsection 815.108, 5 11 subsection 7, paragraph "0d". 5 12 Sec. 11. Section 73.16, subsection 2, paragraph c, 5 13 subparagraph (3), Code 2017, is amended to read as follows: 5 14 (3) A community college, area education agency, or school 5 15 district shall establish a procurement goal from certified 5 16 targeted small businesses, identified pursuant to section 5 1710A.104, subsection 815.108, subsection 7, paragraph "0d", of 5 18 at least ten percent of the value of anticipated procurements 5 19 of goods and services including construction, but not including 5 20 utility services, each fiscal year. 5 21 DIVISION III 5 22 TARGETED JOBS WITHHOLDING CREDIT 5 23 Sec. 12. Section 403.19A, subsection 1, Code 2017, is 5 24 amended by adding the following new paragraph: 5 25 NEW PARAGRAPH. 0d. "Laborshed wage" means the wage level 5 26 represented by those wages within two standard deviations 5 27 from the mean wage within the laborshed area in which the 5 28 eligible business is located, as calculated by the authority, 5 29 by rule, using the most current covered wage and employment 5 30 data available from the department of workforce development for 5 31 the laborshed area. The authority shall designate laborshed 5 32 areas by rule, in consultation with the department of workforce 5 33 development. 5 34 Sec. 13. Section 403.19A, subsection 1, paragraph g, Code 5 35 2017, is amended to read as follows: 6 1 g. "Targeted job" means a job in a business which is or will 6 2 be located in a pilot project city that pays a wage at least 6 3 equal to thecountywideaverage laborshed wage. "Targeted job" 6 4 includes new or retained jobs from Iowa business expansions or 6 5 retentions within the city limits of the pilot project city and 6 6 those jobs resulting from established out=of=state businesses, 6 7 as defined by the economic development authority, moving to or 6 8 expanding in Iowa. 6 9 Sec. 14. Section 403.19A, subsection 2, paragraph b, Code 6 10 2017, is amended to read as follows: 6 11 b. (1) Thedepartment ofeconomic development authority 6 12 shall approve four eligible cities as pilot project cities, one 6 13 pursuant to paragraph "a", subparagraph (1), one pursuant to 6 14 paragraph "a", subparagraph (2), and two pursuant to paragraph 6 15 "a", subparagraph (3). If two eligible cities are approved 6 16 which are located in the same county and the county has a 6 17 population of less than forty=five thousand, the two approved 6 18 eligible cities shall be considered one pilot project city. If 6 19 more than two cities meeting the requirements of paragraph "a", 6 20 subparagraph (3), apply to be designated as a pilot project 6 21 city, thedepartment ofeconomic development authority shall 6 22 determine which two cities hold the most potential to create 6 23 new jobs or generate the greatest capital within their areas. 6 24 Applications from eligible cities filed on or after October 1, 6 25 2006, shall not be considered. 6 26 (2) If a pilot project city does not enter into a 6 27 withholding agreement within one year of its approval as a 6 28 pilot project city, the city shall lose its status as a pilot 6 29 project city. If two pilot project cities are located in the 6 30 same county, the loss of status by one pilot project city shall 6 31 not cause the second pilot project city in the county to lose 6 32 its status as a pilot project city. Upon such occurrence, 6 33 thedepartment ofeconomic development authority shall take 6 34 applications from other eligible cities to replace that city. 6 35 Another city shall be designated within six months. 7 1(3) On July 1, 2011, the economic development authority 7 2 shall assume responsibility for the administration of this 7 3 subsection.7 4 EXPLANATION 7 5 The inclusion of this explanation does not constitute agreement with 7 6 the explanation's substance by the members of the general assembly. 7 7 This bill relates to programs and projects administered by 7 8 the economic development authority (authority). 7 9 Division I of the bill makes technical changes relating 7 10 to the eligibility for applying for and receiving financial 7 11 assistance under the sports tourism program by replacing the 7 12 term "organization" with "entity". 7 13 Division II of the bill transfers responsibility for 7 14 certifying targeted small businesses under the targeted small 7 15 business procurement goal program, and associated reporting 7 16 requirements, from the department of inspections and appeals to 7 17 the authority. The division also specifies that the authority 7 18 may establish standards for public access to different classes 7 19 of information obtained under the program. 7 20 Division III of the bill relates to the targeted jobs 7 21 withholding credit pilot project by requiring that targeted 7 22 jobs be determined on the basis of a laborshed wage, as defined 7 23 in the bill, rather than a countywide average wage. Under 7 24 the division, a laborshed wage is a wage within two standard 7 25 deviations above or below the average wage within the laborshed 7 26 area. LSB 1328HV (1) 87 aw/sc/rn