Senate Study Bill 3062



                                    SENATE/HOUSE FILE       
                                    BY  (PROPOSED DEPARTMENT OF ECONOMIC
                                        DEVELOPMENT BILL)

                                         A BILL FOR

     1 An Act relating to economic development including changes
     2    to the administration of certain economic development
     3    programs and to the terms served by members of the economic
     4    development board and including effective date provisions.
     5 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
       TLSB 5159DP (11) 83
       tw/nh

PAG LIN



  1  1                           DIVISION I
  1  2                  Miscellaneous PROGRAM changes
  1  3    Section 1.  Section 15.335A, subsection 1, paragraph e, Code
  1  4 Supplement 2009, is amended to read as follows:
  1  5    e.  The number of jobs is sixteen but not more than thirty or
  1  6 more and the amount of the qualifying investment is one of the
  1  7 following:
  1  8    (1)  Less than one hundred thousand dollars, then the tax
  1  9 incentive is the investment tax credit of up to five percent.
  1 10    (2)  At least one hundred thousand dollars but less than
  1 11 five hundred thousand dollars, then the tax incentives are the
  1 12 investment tax credit of up to five percent and the sales tax
  1 13 refund.
  1 14    (3)  At least five hundred thousand dollars, then the
  1 15 tax incentives are the investment tax credit of up to five
  1 16 percent, the sales tax refund, and the additional research and
  1 17 development tax credit.
  1 18    Sec. 2.  Section 15.411, subsection 6, Code Supplement 2009,
  1 19 is amended to read as follows:
  1 20    6.  The department shall, upon board approval, establish
  1 21 and administer a targeted industries internship program for
  1 22 students of Iowa community colleges, private colleges, or
  1 23 institutions of higher learning under the control of the
  1 24 state board of regents Iowa students. For purposes of this
  1 25 subsection, "Iowa student" means a student of an Iowa community
  1 26 college, private college, or institution of higher learning
  1 27 under the control of the state board of regents, or a student
  1 28 who graduated from high school in Iowa but now attends an
  1 29 institution of higher learning outside the state of Iowa.  The
  1 30 purpose of the program is to link Iowa students to small and
  1 31 medium sized Iowa firms in the targeted industries through
  1 32 internship opportunities.  An Iowa employer may receive
  1 33 financial assistance in an amount of one dollar for every
  1 34 two dollars paid by the employer to an intern.  The amount
  1 35 of financial assistance shall not exceed three thousand one
  2  1 hundred dollars for any single internship, or nine thousand
  2  2 three hundred dollars for any single employer.  In order to be
  2  3 eligible to receive financial assistance under this subsection,
  2  4 the employer must have five hundred or fewer employees and
  2  5 must be engaged in a targeted industry.  The department shall
  2  6 encourage youth who reside in economically distressed areas,
  2  7 youth adjudicated to have committed a delinquent act, and youth
  2  8 transitioning out of foster care to participate in the targeted
  2  9 industries internship program.
  2 10    Sec. 3.  Section 15G.111, subsection 5, paragraph c, Code
  2 11 Supplement 2009, is amended to read as follows:
  2 12    c.  The state board of regents shall annually prepare a
  2 13 report for submission to the governor, the general assembly,
  2 14 the department, and the legislative services agency regarding
  2 15 the activities, projects, and programs funded with moneys
  2 16 allocated under this subsection. The report shall be provided
  2 17 in an electronic format and shall include a list of metrics and
  2 18 criteria mutually agreed to in advance by the board of regents
  2 19 and the department. The metrics and criteria shall allow the
  2 20 governor's office, the general assembly, and the department
  2 21 to quantify and evaluate the progress of the board of regents
  2 22 institutions with regard to their activities, projects,
  2 23 and programs in the areas of technology commercialization,
  2 24 entrepreneurship, regional development, and market research.
  2 25    Sec. 4.  EFFECTIVE UPON ENACTMENT.  The following provision
  2 26 of this division of this Act, being deemed of immediate
  2 27 importance, takes effect upon enactment:
  2 28    1.  Section 1 of this Act amending section 15.335A.
  2 29                           DIVISION II
  2 30                   ECONOMIC DEVELOPMENT BOARD
  2 31    Sec. 5.  Section 15.103, subsection 1, paragraph a, Code
  2 32 Supplement 2009, is amended to read as follows:
  2 33    a.  The Iowa economic development board is created,
  2 34 consisting of fifteen voting members appointed by the governor
  2 35 and seven ex officio, nonvoting members.  The ex officio,
  3  1 nonvoting members are four legislative members; one president,
  3  2 or the president's designee, of the university of northern
  3  3 Iowa, the university of Iowa, or Iowa state university of
  3  4 science and technology designated by the state board of regents
  3  5 on a rotating basis; and one president, or the president's
  3  6 designee, of a private college or university appointed by the
  3  7 Iowa association of independent colleges and universities;
  3  8 and one superintendent, or the superintendent's designee, of
  3  9 a community college, appointed by the Iowa association of
  3 10 community college presidents.  The legislative members are two
  3 11 state senators, one appointed by the president of the senate
  3 12 after consultation with the majority leader of the senate,
  3 13 and one appointed by the minority leader of the senate from
  3 14 their respective parties; and two state representatives, one
  3 15 appointed by the speaker and one appointed by the minority
  3 16 leader of the house of representatives from their respective
  3 17 parties.  Not more than eight of the voting members shall
  3 18 be from the same political party.  Beginning with the first
  3 19 appointment to the board made after July 1, 2005, at least one
  3 20 voting member shall have been less than thirty years of age
  3 21 at the time of appointment.  The governor shall appoint the
  3 22 voting members of the board for a term to staggered terms of
  3 23 four years beginning and ending as provided by section 69.19,
  3 24 subject to confirmation by the senate, and the governor's
  3 25 appointments shall include persons knowledgeable of the various
  3 26 elements of the department's responsibilities.
  3 27    Sec. 6.  ECONOMIC DEVELOPMENT BOARD MEMBER TERMS.
  3 28 Notwithstanding the four=year term required by section 15.103
  3 29 for members of the economic development board, and in order to
  3 30 ensure that members of the board serve staggered terms, of the
  3 31 fifteen members initially appointed after the effective date of
  3 32 this Act, the governor shall appoint seven members to terms of
  3 33 two years and eight members to terms of four years.
  4  1    Sec. 7.  EFFECTIVE UPON ENACTMENT.  This division of this
  4  2 Act, being deemed of immediate importance, takes effect upon
  4  3 enactment.
  4  4                           EXPLANATION
  4  5    This bill makes miscellaneous changes to certain economic
  4  6 development programs and staggers the terms served by members
  4  7 of the economic development board.
  4  8    Currently, the tax incentives for the high quality jobs
  4  9 program do not allow incentives for a business creating 31 or
  4 10 more jobs unless that business invests $10 million or more.
  4 11 The bill adjusts the program's incentive schedule to allow
  4 12 incentives to be provided to businesses investing less than $10
  4 13 million provided they create at least 16 jobs.
  4 14    The department of economic development currently operates a
  4 15 targeted industries internship program for students attending
  4 16 an institution of higher learning in Iowa. The bill allows
  4 17 students who graduated from an Iowa high school, but now
  4 18 attend an institution of higher learning in another state, to
  4 19 participate in the program.
  4 20    Currently, the board of regents must prepare an annual
  4 21 report for the governor, the general assembly, the department,
  4 22 and the legislative services agency regarding the activities,
  4 23 projects, and programs funded with the $5 million received
  4 24 by the regents as part of the annual grow Iowa values
  4 25 appropriation. The bill directs the board of regents and the
  4 26 department to mutually agree on certain metrics and criteria
  4 27 for evaluating the success of the activities, projects, and
  4 28 programs funded with those moneys, particularly as they relate
  4 29 to the areas of technology commercialization, entrepreneurship,
  4 30 regional development, and market research.
  4 31    Currently, the economic development board's 15 members
  4 32 appointed by the governor all serve four=year terms that expire
  4 33 on the same date. The bill provides for the staggering of
  4 34 these terms, and, since the terms of the current board members
  4 35 expire on April 30, 2010, the bill takes effect upon enactment.
       LSB 5159DP (11) 83
       tw/nh