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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
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