Bill Text: IA HF2460 | 2013-2014 | 85th General Assembly | Enrolled

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Bill Title: A bill for an act relating to and making appropriations to the department of cultural affairs, the economic development authority, the department of workforce development, the Iowa finance authority, the public employment relations board, and the state board of regents and regents institutions, and providing for other properly related matters, and including effective date provisions. Item vetoed. Effective 5-27-14.

Spectrum: Committee Bill

Status: (Passed) 2014-05-27 - Item vetoed, signed by Governor H.J. 902. [HF2460 Detail]

Download: Iowa-2013-HF2460-Enrolled.html

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House File 2460
AN ACT
RELATING TO AND MAKING APPROPRIATIONS TO THE DEPARTMENT OF
CULTURAL AFFAIRS, THE ECONOMIC DEVELOPMENT AUTHORITY,
THE DEPARTMENT OF WORKFORCE DEVELOPMENT, THE IOWA FINANCE
AUTHORITY, THE PUBLIC EMPLOYMENT RELATIONS BOARD, AND
THE STATE BOARD OF REGENTS AND REGENTS INSTITUTIONS, AND
PROVIDING FOR OTHER PROPERLY RELATED MATTERS, AND INCLUDING
EFFECTIVE DATE PROVISIONS.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
DIVISION I
FY 2014-2015 APPROPRIATIONS
Section 1. 2013 Iowa Acts, chapter 137, section 16,
subsection 1, is amended to read as follows:
SEC. 16. DEPARTMENT OF CULTURAL AFFAIRS.
1. There is appropriated from the general fund of the state
to the department of cultural affairs for the fiscal year
beginning July 1, 2014, and ending June 30, 2015, the following
amounts, or so much thereof as is necessary, to be used for the
purposes designated:
a. ADMINISTRATION
For salaries, support, maintenance, miscellaneous purposes,
and for not more than the following full-time equivalent
positions for the department:
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 85,907
176,882
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . FTEs 74.50
The department of cultural affairs shall coordinate
activities with the tourism office of the economic development
authority to promote attendance at the state historical
building and at this state’s historic sites.

House File 2460, p. 2
Full-time equivalent positions authorized under this
paragraph shall be funded, in full or in part, using moneys
appropriated under this paragraph and paragraphs “c” through
“g”.
b. COMMUNITY CULTURAL GRANTS
For planning and programming for the community cultural
grants program established under section 303.3 :
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 86,045
172,090
c. HISTORICAL DIVISION
For the support of the historical division:
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,583,851
3,167,701
d. HISTORIC SITES
For the administration and support of historic sites:
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 213,199
426,398
e. ARTS DIVISION
For the support of the arts division:
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 616,882
1,233,764
Of the moneys appropriated in this paragraph, the department
shall allocate $300,000 for purposes of the film office.
f. IOWA GREAT PLACES
For the Iowa great places program established under section
303.3C :
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 75,000
150,000
g. ARCHIVE IOWA GOVERNORS’ RECORDS
For archiving the records of Iowa governors:
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 32,967
65,933
h. RECORDS CENTER RENT
For payment of rent for the state records center:
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 113,622
227,243
i. BATTLE FLAGS
For continuation of the project recommended by the Iowa
battle flag advisory committee to stabilize the condition of
the battle flag collection:
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 47,000
94,000
Sec. 2. 2013 Iowa Acts, chapter 137, section 18, is amended

House File 2460, p. 3
to read as follows:
SEC. 18. ECONOMIC DEVELOPMENT AUTHORITY.
1. APPROPRIATION
a. There is appropriated from the general fund of the state
to the economic development authority for the fiscal year
beginning July 1, 2014, and ending June 30, 2015, the following
amount, or so much thereof as is necessary, to be used for the
purposes designated in this subsection, and for not more than
the following full-time equivalent positions:
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 7,734,483
15,516,372
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . FTEs 149.00
b. (1) For salaries, support, miscellaneous purposes,
programs, marketing, and the maintenance of an administration
division, a business development division, a community
development division, a small business development division,
and other divisions the authority may organize.
(2) The full-time equivalent positions authorized under
this section shall be funded, in whole or in part, by the
moneys appropriated under this subsection or by other moneys
received by the authority, including certain federal moneys.
(3) For business development operations and programs,
international trade, export assistance, workforce recruitment,
and the partner state program.
(4) For transfer to the strategic investment fund created
in section 15.313 .
(5) For community economic development programs, tourism
operations, community assistance, plans for Iowa green corps
and summer youth programs, the mainstreet and rural mainstreet
programs, the school-to-career program, the community
development block grant, and housing and shelter-related
programs.
(6) For achieving the goals and accountability, and
fulfilling the requirements and duties required under this Act.
c. Notwithstanding section 8.33 , moneys appropriated in
this subsection that remain unencumbered or unobligated at the
close of the fiscal year shall not revert but shall remain
available for expenditure for the purposes designated in this
subsection until the close of the succeeding fiscal year.
2. FINANCIAL ASSISTANCE RESTRICTIONS
a. A business creating jobs through moneys appropriated in
subsection 1 shall be subject to contract provisions requiring
new and retained jobs to be filled by individuals who are

House File 2460, p. 4
citizens of the United States who reside within the United
States or any person authorized to work in the United States
pursuant to federal law, including legal resident aliens in the
United States.
b. Any vendor who receives moneys appropriated in
subsection 1 shall adhere to such contract provisions and
provide periodic assurances as the state shall require that the
jobs are filled solely by citizens of the United States who
reside within the United States or any person authorized to
work in the United States pursuant to federal law, including
legal resident aliens in the United States.
c. A business that receives financial assistance from
the authority from moneys appropriated in subsection 1 shall
only employ individuals legally authorized to work in this
state. In addition to all other applicable penalties provided
by current law, all or a portion of the assistance received
by a business which is found to knowingly employ individuals
not legally authorized to work in this state is subject to
recapture by the authority.
3. USES OF APPROPRIATIONS
a. From the moneys appropriated in subsection 1, the
authority may provide financial assistance in the form of a
grant to a community economic development entity for conducting
a local workforce recruitment effort designed to recruit former
citizens of the state and former students at colleges and
universities in the state to meet the needs of local employers.
b. From the moneys appropriated in subsection 1, the
authority may provide financial assistance to early stage
industry companies being established by women entrepreneurs.
c. From the moneys appropriated in subsection 1, the
authority may provide financial assistance in the form of
grants, loans, or forgivable loans for advanced research and
commercialization projects involving value-added agriculture,
advanced technology, or biotechnology.
d. The authority shall not use any moneys appropriated in
subsection 1 for purposes of providing financial assistance for
the Iowa green streets pilot project or for any other program
or project that involves the installation of geothermal systems
for melting snow and ice from streets or sidewalks.
4. WORLD FOOD PRIZE
There is appropriated from the general fund of the state
to the economic development authority for the fiscal year
beginning July 1, 2014, and ending June 30, 2015, the following

House File 2460, p. 5
amount for the world food prize and in lieu of the standing
appropriation in section 15.368, subsection 1 :
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 400,000
800,000
5. IOWA COMMISSION ON VOLUNTEER SERVICE
There is appropriated from the general fund of the state
to the economic development authority for the fiscal year
beginning July 1, 2014, and ending June 30, 2015, the following
amount for allocation to the Iowa commission on volunteer
service for purposes of the Iowa state commission grant
program, the Iowa’s promise and Iowa mentoring partnership
programs, and for not more than the following full-time
equivalent positions:
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 89,067
178,133
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . FTEs 7.00
Of the moneys appropriated in this subsection, the authority
shall allocate $37,500 $75,000 for purposes of the Iowa state
commission grant program and $51,567 $103,133 for purposes of
the Iowa’s promise and Iowa mentoring partnership programs.
Notwithstanding section 8.33 , moneys appropriated in this
subsection that remain unencumbered or unobligated at the close
of the fiscal year shall not revert but shall remain available
for expenditure for the purposes designated until the close of
the succeeding fiscal year.
6. COUNCILS OF GOVERNMENTS —— ASSISTANCE
There is appropriated from the general fund of the state
to the economic development authority for the fiscal year
beginning July 1, 2014, and ending June 30, 2015, the following
amount to be used for the purposes of providing financial
assistance to Iowa’s councils of governments:
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 87,500
200,000
Sec. 3. 2013 Iowa Acts, chapter 137, section 21, is amended
to read as follows:
SEC. 21. WORKFORCE DEVELOPMENT FUND ACCOUNT .
1. There Notwithstanding section 15.342A, as amended by
this Act, there is appropriated from the workforce development
fund account created in section 15.342A to the workforce
development fund created in section 15.343 following funds
for the fiscal year beginning July 1, 2014, and ending June
30, 2015, the following amount amounts , for purposes of
the workforce development fund to be used for the purposes

House File 2460, p. 6
designated :
a. JOB TRAINING FUND
For deposit in the job training fund created in section
260F.6, as amended in this Act:
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2,000,000
3,000,000
b. APPRENTICESHIP TRAINING PROGRAM FUND
For deposit in the apprenticeship training program fund
created in section 15B.3, as enacted in this Act:
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2,750,000
2. The first $250,000 of any unexpended or unobligated
moneys accruing to the workforce development fund created in
section 15.343, Code 2014, as a result of section 260F.6A, as
repealed by this Act, shall be allocated for purposes of the
apprenticeship training program. Any unexpended or unobligated
moneys accruing to the workforce development fund created in
section 15.343, Code 2014, as a result of section 260F.6A,
as repealed by this Act, after the first $250,000, shall be
allocated equally between the job training program and the
apprenticeship training program.
Sec. 4. 2013 Iowa Acts, chapter 137, section 22, is amended
to read as follows:
SEC. 22. IOWA FINANCE AUTHORITY.
1. There is appropriated from the general fund of the state
to the Iowa finance authority for the fiscal year beginning
July 1, 2014, and ending June 30, 2015, the following amount,
or so much thereof as is necessary, to be used to provide
reimbursement for rent expenses to eligible persons under the
rent subsidy program:
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 329,000
658,000
2. Participation in the rent subsidy program shall be
limited to only those persons who meet the requirements for the
nursing facility level of care for home and community-based
services waiver services as in effect on July 1, 2014, and
to those individuals who are eligible for the federal money
follows the person grant program under the medical assistance
program. Of the moneys appropriated in this section, not more
than $35,000 may be used for administrative costs.
Sec. 5. 2013 Iowa Acts, chapter 137, section 24, is amended
to read as follows:
SEC. 24. PUBLIC EMPLOYMENT RELATIONS BOARD.
1. There is appropriated from the general fund of the state

House File 2460, p. 7
to the public employment relations board for the fiscal year
beginning July 1, 2014, and ending June 30, 2015, the following
amount, or so much thereof as is necessary, for the purposes
designated:
For salaries, support, maintenance, miscellaneous purposes,
and for not more than the following full-time equivalent
positions:
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 670,963
1,342,452
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . FTEs 10.00
2. Of the moneys appropriated in this section, the board
shall allocate $15,000 for maintaining a website that allows
searchable access to a database of collective bargaining
information.
Sec. 6. 2013 Iowa Acts, chapter 137, section 25, is amended
to read as follows:
SEC. 25. DEPARTMENT OF WORKFORCE DEVELOPMENT. There
is appropriated from the general fund of the state to the
department of workforce development for the fiscal year
beginning July 1, 2014, and ending June 30, 2015, the following
amounts, or so much thereof as is necessary, for the purposes
designated:
1. DIVISION OF LABOR SERVICES
a. For the division of labor services, including salaries,
support, maintenance, miscellaneous purposes, and for not more
than the following full-time equivalent positions:
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,774,360
3,823,539
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . FTEs 65.00
b. From the contractor registration fees, the division of
labor services shall reimburse the department of inspections
and appeals for all costs associated with hearings under
chapter 91C , relating to contractor registration.
c. Of the moneys appropriated under this subsection, the
department shall allocate $53,280 for the purpose of employing
an additional investigator to investigate wage enforcement.
2. DIVISION OF WORKERS’ COMPENSATION
a. For the division of workers’ compensation, including
salaries, support, maintenance, miscellaneous purposes, and for
not more than the following full-time equivalent positions:
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,629,522
3,259,044
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . FTEs 30.00

House File 2460, p. 8
b. The division of workers’ compensation shall charge a
$100 filing fee for workers’ compensation cases. The filing
fee shall be paid by the petitioner of a claim. However, the
fee can be taxed as a cost and paid by the losing party, except
in cases where it would impose an undue hardship or be unjust
under the circumstances. The moneys generated by the filing
fee allowed under this subsection are appropriated to the
department of workforce development to be used for purposes of
administering the division of workers’ compensation.
3. WORKFORCE DEVELOPMENT OPERATIONS
a. For the operation of field offices, the workforce
development board, and for not more than the following
full-time equivalent positions:
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 4,589,707
9,179,413
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . FTEs 130.00
b. Of the moneys appropriated in paragraph “a” of this
subsection, the department shall allocate $150,000 to the state
library for the purpose of licensing an online resource which
prepares persons to succeed in the workplace through programs
which improve job skills and vocational test-taking abilities.
c. Of the moneys appropriated in paragraph “a” of this
subsection, the department shall allocate at least $1,130,602
for the operation of the three satellite field offices
projected by the department to serve the most people from the
offices located in Decorah, Fort Madison, Iowa City, or Webster
City.
4. OFFENDER REENTRY PROGRAM
a. For the development and administration of an offender
reentry program to provide offenders with employment skills,
and for not more than the following full-time equivalent
positions:
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 142,232
358,464
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . FTEs 4.00
b. The department of workforce development shall partner
with the department of corrections to provide staff within the
correctional facilities to improve offenders’ abilities to find
and retain productive employment.
5. NONREVERSION
Notwithstanding section 8.33 , moneys appropriated in this
section that remain unencumbered or unobligated at the close of
the fiscal year shall not revert but shall remain available for

House File 2460, p. 9
expenditure for the purposes designated until the close of the
succeeding fiscal year.
Sec. 7. 2013 Iowa Acts, chapter 137, section 26, is amended
to read as follows:
SEC. 26. GENERAL FUND —— EMPLOYEE MISCLASSIFICATION
PROGRAM. There is appropriated from the general fund of the
state to the department of workforce development for the fiscal
year beginning July 1, 2014, and ending June 30, 2015, the
following amount, or so much thereof as is necessary, to be
used for the purposes designated:
For enhancing efforts to investigate employers that
misclassify workers and for not more than the following
full-time equivalent positions:
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 225,729
451,458
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . FTEs 8.10
Sec. 8. 2013 Iowa Acts, chapter 137, section 27, is amended
to read as follows:
SEC. 27. SPECIAL EMPLOYMENT SECURITY CONTINGENCY FUND.
1. There is appropriated from the special employment
security contingency fund to the department of workforce
development for the fiscal year beginning July 1, 2014, and
ending June 30, 2015, the following amount, or so much thereof
as is necessary, to be used for field offices:
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 883,042
1,766,084
2. Any remaining additional penalty and interest revenue
collected by the department of workforce development is
appropriated to the department for the fiscal year beginning
July 1, 2014, and ending June 30, 2015, to accomplish the
mission of the department.
Sec. 9. 2013 Iowa Acts, chapter 137, section 28, is amended
to read as follows:
SEC. 28. UNEMPLOYMENT COMPENSATION RESERVE FUND ——
FIELD OFFICES. Notwithstanding section 96.9, subsection 8 ,
paragraph “e”, there is appropriated from interest earned on
the unemployment compensation reserve fund to the department
of workforce development for the fiscal year beginning July 1,
2014, and ending June 30, 2015, the following amount or so much
thereof as is necessary, for the purposes designated:
For the operation of field offices:
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 247,000
400,000

House File 2460, p. 10
Sec. 10. 2013 Iowa Acts, chapter 141, section 54,
subsections 2, 3, and 5, are amended to read as follows:
2. ECONOMIC DEVELOPMENT AUTHORITY
a. For the purposes of providing assistance under the high
quality jobs program as described in section 15.335B :
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 8,450,000
16,900,000
b. From the moneys appropriated in this subsection, the
economic development authority may use not more than $1,000,000
for purposes of providing infrastructure grants to mainstreet
communities under the main street Iowa program.
c. As a condition of receiving moneys appropriated in
this subsection, an entity shall testify upon the request of
the joint appropriations subcommittee on economic development
regarding the expenditure of such moneys.
3. REGENTS INSTITUTIONS
a. To the state board of regents for capacity
building infrastructure in areas related to technology
commercialization, marketing and business development
efforts in areas related to technology commercialization,
entrepreneurship, and business growth, and infrastructure
projects and programs needed to assist in implementation of
activities under chapter 262B :
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,500,000
3,000,000
Of the moneys appropriated pursuant to this paragraph,
35 percent shall be allocated for Iowa state university, 35
percent shall be allocated for the university of Iowa, and 30
percent shall be allocated for the university of northern Iowa.
(1) The institutions shall provide a one-to-one match
of additional moneys for the activities funded with moneys
appropriated under this paragraph.
(2) The state board of regents shall annually submit a
report by January 15 of each year to the governor, the general
assembly, and the legislative services agency regarding
the activities, projects, and programs funded with moneys
allocated under this paragraph. The report shall be provided
in an electronic format and shall include a list of metrics
and criteria mutually agreed to in advance by the board of
regents and the economic development authority. The metrics
and criteria shall allow the governor’s office and the general
assembly to quantify and evaluate the progress of the board of
regents institutions with regard to their activities, projects,

House File 2460, p. 11
and programs in the areas of technology commercialization,
entrepreneurship, regional development, and market research.
b. To Iowa state university of science and technology for
small business development centers, the science and technology
research park, and the institute for physical research and
technology, and for not more than the following full-time
equivalent positions:
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,212,151
2,424,302
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . FTEs 56.63
(1) Of the moneys appropriated in this paragraph, Iowa
state university of science and technology shall allocate at
least $367,864 $735,728 for purposes of funding small business
development centers. Iowa state university of science and
technology may allocate moneys appropriated in this paragraph
to the various small business development centers in any manner
necessary to achieve the purposes of this paragraph.
(2) Iowa state university of science and technology shall
do all of the following:
(a) Direct expenditures for research toward projects that
will provide economic stimulus for Iowa.
(b) Provide emphasis to providing services to Iowa-based
companies.
(3) It is the intent of the general assembly that the
industrial incentive program focus on Iowa industrial
sectors and seek contributions and in-kind donations from
businesses, industrial foundations, and trade associations,
and that moneys for the institute for physical research and
technology industrial incentive program shall be allocated
only for projects which are matched by private sector moneys
for directed contract research or for nondirected research.
The match required of small businesses as defined in section
15.102, subsection 10 , for directed contract research or for
nondirected research shall be $1 for each $3 of state funds.
The match required for other businesses for directed contract
research or for nondirected research shall be $1 for each $1 of
state funds. The match required of industrial foundations or
trade associations shall be $1 for each $1 of state funds.
Iowa state university of science and technology shall
report annually to the joint appropriations subcommittee on
economic development and the legislative services agency the
total amount of private contributions, the proportion of
contributions from small businesses and other businesses, and

House File 2460, p. 12
the proportion for directed contract research and nondirected
research of benefit to Iowa businesses and industrial sectors.
c. To the state university of Iowa for the state university
of Iowa research park and for the advanced drug development
program at the Oakdale research park, including salaries,
support, maintenance, equipment, miscellaneous purposes, and
for not more than the following full-time equivalent positions:
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 104,640
209,279
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . FTEs 6.00
The state university of Iowa shall do all of the following:
(1) Direct expenditures for research toward projects that
will provide economic stimulus for Iowa.
(2) Provide emphasis to providing services to Iowa-based
companies.
d. To the state university of Iowa for the purpose
of implementing the entrepreneurship and economic growth
initiative, and for not more than the following full-time
equivalent positions:
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,000,000
2,000,000
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . FTEs 8.00
e. To the university of northern Iowa for the metal
casting institute, the MyEntreNet internet application, and
the institute of decision making, including salaries, support,
maintenance, miscellaneous purposes, and for not more than the
following full-time equivalent positions:
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 533,209
1,066,419
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . FTEs 9.75
(1) Of the moneys appropriated pursuant to this paragraph,
the university of northern Iowa shall allocate at least
$308,819 $617,639 for purposes of support of entrepreneurs
through the university’s regional business center and economic
gardening program.
(2) The university of northern Iowa shall do all of the
following:
(a) Direct expenditures for research toward projects that
will provide economic stimulus for Iowa.
(b) Provide emphasis to providing services to Iowa-based
companies.
f. As a condition of receiving moneys appropriated in
this subsection, an entity shall testify upon the request of

House File 2460, p. 13
the joint appropriations subcommittee on economic development
regarding the expenditure of such moneys.
5. DEPARTMENT OF WORKFORCE DEVELOPMENT
To develop a long-term sustained program to train unemployed
and underemployed central Iowans with skills necessary to
advance to higher-paying jobs with full benefits:
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 50,000
100,000
a. The department of workforce development shall begin
a request for proposals process, issued for purposes of this
subsection, no later than September 1, 2014.
b. As a condition of receiving moneys appropriated under
this subsection, an entity shall testify upon the request of
the joint appropriations subcommittee on economic development
regarding the expenditure of such moneys.
Sec. 11. SMALL BUSINESS DEVELOPMENT CENTERS. There is
appropriated from the general fund of the state to Iowa state
university of science and technology for the fiscal year
beginning July 1, 2014, and ending June 30, 2015, the following
amount, or so much thereof as is necessary, to be used for the
purposes of funding small business development centers:
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 101,000
Sec. 12. SCIENCE, TECHNOLOGY, ENGINEERING, AND MATHEMATICS
INTERNSHIPS —— APPROPRIATION. There is appropriated from the
general fund of the state to the Iowa economic development
authority for the fiscal year beginning July 1, 2014, and
ending June 30, 2015, the following amount, or so much thereof
as is necessary, for the purposes designated:
For the funding of internships for students studying in the
fields of science, technology, engineering, and mathematics
with eligible Iowa employers as provided in section 15.411,
subsection 3, paragraph “c”, as enacted by this Act:
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,000,000
1. No more than 3 percent of the moneys appropriated
pursuant to this section may be used by the authority for costs
associated with administration of the internship program as
amended by 2014 Iowa Acts, House File 2329, 2014 Iowa Acts,
Senate File 2324, or 2014 successor legislation, if enacted.
Notwithstanding section 8.33, moneys appropriated in this
section which remain unencumbered or unobligated at the end of
the fiscal year shall not revert but shall remain available for
expenditure for the purposes designated in subsequent fiscal
years.

House File 2460, p. 14
2. It is the intent of the general assembly to appropriate
moneys to the authority for the fiscal year beginning July
1, 2015, and ending June 30, 2016, to fund internships for
students studying in the fields of science, technology,
engineering, and mathematics.
DIVISION II
WORKFORCE DEVELOPMENT FUND ACCOUNT CHANGES
Sec. 13. Section 15.342A, Code 2014, is amended to read as
follows:
15.342A Workforce development fund account.
1. A workforce development fund account is established in
the office of the treasurer of state under the control of the
authority. The account shall receive funds pursuant to section
422.16A up to a maximum of four six million dollars per year.
2. For the fiscal year beginning July 1, 2014, and for each
fiscal year thereafter, there is annually appropriated from
the workforce development fund account to the apprenticeship
training program fund created in section 15B.3 three million
dollars for the purposes of chapter 15B.
3. For the fiscal year beginning July 1, 2014, and for each
fiscal year thereafter, there is annually appropriated from
the workforce development fund account to the job training
fund created in section 260F.6 three million dollars for the
purposes of chapter 260F.
Sec. 14. Section 422.16A, Code 2014, is amended to read as
follows:
422.16A Job training withholding —— certification and
transfer.
Upon the completion by a business of its repayment
obligation for a training project funded under chapter
260E , including a job training project funded under section
15A.8 or repaid in whole or in part by the supplemental new
jobs credit from withholding under section 15A.7 or section
15E.197 , the sponsoring community college shall report to
the economic development authority the amount of withholding
paid by the business to the community college during the
final twelve months of withholding payments. The economic
development authority shall notify the department of revenue
of that amount. The department shall credit to the workforce
development fund account established in section 15.342A
twenty-five percent of that amount each quarter for a period
of ten years. If the amount of withholding from the business
or employer is insufficient, the department shall prorate the

House File 2460, p. 15
quarterly amount credited to the workforce development fund
account. The maximum amount from all employers which shall be
transferred to the workforce development fund account in any
year is four six million dollars.
Sec. 15. FY 2014-2015 WORKFORCE DEVELOPMENT FUND
TRANSFER. Notwithstanding sections 15.342A and 422.16A, as
amended in this Act, the maximum amount from all employers
which shall be transferred pursuant to section 422.16A
to the workforce development fund account for the fiscal
year beginning July 1, 2014, and ending June 30, 2015, is
$5,750,000.
DIVISION III
JOBS TRAINING AND APPRENTICESHIP TRAINING
Sec. 16. Section 15.108, subsection 6, paragraph a, Code
2014, is amended to read as follows:
a. Coordinate and perform the duties specified under the
Iowa industrial new jobs training Act in chapter 260E , the
Iowa jobs training Act in chapter 260F , and the workforce
development fund in section 15.341 .
Sec. 17. NEW SECTION . 15B.1 Title.
This chapter shall be known and may be cited as the “Iowa
Apprenticeship Act” .
Sec. 18. NEW SECTION . 15B.2 Definitions.
For purposes of this chapter, unless the context otherwise
requires:
1. “Apprentice” means a person who is at least sixteen
years of age, except where a higher minimum age is required by
law, who is employed in an apprenticeable occupation, and is
registered in Iowa with the United States department of labor,
office of apprenticeship.
2. “Apprenticeable occupation” means an occupation approved
for apprenticeship by the United States department of labor,
office of apprenticeship.
3. “Apprenticeship program” means a program registered
with the United States department of labor, office of
apprenticeship, which includes terms and conditions for the
qualification, recruitment, selection, employment, and training
of apprentices, including the requirement for a written
apprenticeship agreement.
4. “Apprenticeship sponsor” means an entity operating
an apprenticeship program or an entity in whose name an
apprenticeship program is being operated, which is registered
with or approved by the United States department of labor,

House File 2460, p. 16
office of apprenticeship.
5. “Authority” means the economic development authority
created in section 15.105.
6. “Financial assistance” means assistance provided only
from the funds, rights, and assets legally available to the
authority and includes but is not limited to assistance in the
forms of grants, loans, forgivable loans, and royalty payments.
7. “Fund” means the apprenticeship training program fund
created in section 15B.3.
8. “Lead apprenticeship sponsor” means a trade organization,
labor organization, employer association, or other incorporated
entity representing a group of apprenticeship sponsors.
Sec. 19. NEW SECTION . 15B.3 Apprenticeship training program
—— fund.
1. An apprenticeship training program fund is created as a
revolving fund in the state treasury under the control of the
authority.
2. The fund shall consist of moneys appropriated for
purposes of the apprenticeship training program, and any other
moneys lawfully available to the authority for purposes of this
chapter.
3. Moneys in the fund are appropriated to the authority for
the purposes of this chapter.
4. No more than two percent of the total moneys deposited
in the fund on July 1 of a fiscal year is appropriated to the
authority for the purposes of administering this chapter.
5. Notwithstanding section 8.33, moneys in the fund at
the close of the fiscal year shall not revert but shall
remain available for expenditure for the purposes designated
for subsequent fiscal years. Notwithstanding section 12C.7,
subsection 2, interest or earnings on moneys in the fund shall
be credited to the fund.
6. The authority shall adopt rules to administer this
chapter.
Sec. 20. NEW SECTION . 15B.4 Financial assistance for an
apprenticeship program.
1. a. An apprenticeship sponsor or lead apprenticeship
sponsor conducting apprenticeship programs registered with the
United States department of labor, office of apprenticeship,
through Iowa, for apprentices who will be employed at Iowa
worksites may apply to the authority for a training grant under
this section.
b. Financial assistance received by an apprenticeship

House File 2460, p. 17
sponsor or lead apprenticeship sponsor under this section shall
be used only for the cost of conducting and maintaining an
apprenticeship program.
2. The authority shall provide financial assistance in the
form of training grants to apprenticeship sponsors or lead
apprenticeship sponsors in the following manner:
a. By determining the total amount of funding allocated
for purposes of training grants for apprenticeship programs
pursuant to section 15B.3.
b. By adding together all of the following:
(1) The total number of apprentices trained by all applying
apprenticeship sponsors or lead apprenticeship sponsors during
the most recent training year as calculated on the last day of
the training year.
(2) The total number of contact hours that apprenticeship
instructors for all applying apprenticeship sponsors or lead
apprenticeship sponsors spent in contact with apprentices
during the most recent training year. For purposes of
this subparagraph, “contact hours” includes the time spent
instructing apprentices in person or, in the case of a lead
apprenticeship sponsor with programs totaling one hundred or
more total instructional hours, “contact hours” includes the
time spent in online training if the total amount of online
instruction does not account for more than thirty percent of
the total instructional hours.
c. By adding together all of the following:
(1) The total number of apprentices trained by a single
applying apprenticeship sponsor or lead apprenticeship sponsor
during the most recent training year as calculated on the last
day of the training year.
(2) The total number of contact hours that apprenticeship
instructors for a single applying apprenticeship sponsor or
lead apprenticeship sponsor spent in contact with apprentices
during the most recent training year. For purposes of
this subparagraph, “contact hours” includes the time spent
instructing apprentices in person or, in the case of a lead
apprenticeship sponsor with programs totaling one hundred or
more total instructional hours, “contact hours” includes the
time spent in online training if the total amount of online
instruction does not account for more than thirty percent of
the total instructional hours.
d. By determining the proportion, stated as a percentage,
that a single applying apprenticeship sponsor’s or lead

House File 2460, p. 18
apprenticeship sponsor’s total calculated pursuant to paragraph
“c” bears to all applying apprenticeship sponsors’ or lead
apprenticeship sponsors’ total calculated pursuant to paragraph
“b” .
e. By multiplying the percentage calculated in paragraph “d”
by the amount determined in paragraph “a” .
3. An apprenticeship sponsor or lead apprenticeship sponsor
seeking financial assistance under this section shall provide
the following information to the authority:
a. The federal apprentice registration number of each
apprentice in the apprenticeship program.
b. The address and a description of the physical location
where in-person training is conducted.
c. A certification of the apprenticeship sponsor’s training
standards as most recently approved by the United States
department of labor, office of apprenticeship or, in the case
of a lead apprenticeship sponsor, a representative sample of
participating members’ training standards.
d. A certification of the apprenticeship sponsor’s
compliance review or quality assessment as most recently
conducted by the United States department of labor, office of
apprenticeship, unless the apprenticeship sponsor has not been
subjected to a compliance review or quality assessment. In the
case of a lead apprenticeship sponsor, a sampling of compliance
reviews or quality assessments from participating members shall
be sufficient.
e. Any other information the authority reasonably determines
is necessary.
4. The apprenticeship sponsor or lead apprenticeship
sponsor and the authority shall enter into an agreement
regarding the provision of any financial assistance to the
apprenticeship sponsor or lead apprenticeship sponsor.
5. Notwithstanding the provisions of this section, an
apprenticeship program receiving funds from section 260F.6 or
other community college funding sources in the fiscal year
beginning July 1, 2013, and ending June 30, 2014, shall receive
no less than that amount from the fund in the fiscal year
beginning July 1, 2014, and ending June 30, 2015.
Sec. 21. NEW SECTION . 15B.5 Apprenticeship training program
advisory board.
1. An apprenticeship training program advisory board is
established to advise the authority on issues concerning the
apprenticeship training program.

House File 2460, p. 19
2. The advisory board shall consist of the following
members:
a. One member of the master builders of Iowa.
b. One member of the associated builders and contractors of
Iowa.
c. One member of the heavy highway contractors association
domiciled in Iowa.
d. One member of the associated general contractors of Iowa.
e. One member of the technology association of Iowa.
f. One member of the Iowa association of business and
industry.
g. One member representing the mechanical contractors
association of Iowa.
h. Five members, one member each from different labor
organizations. The Iowa state building and construction
trades council shall select five members from different labor
organizations within the construction trade.
i. One member from the Iowa federation of labor.
j. One member representing community college apprenticeship
programs.
k. One member representing the authority.
l. One member representing the department of education.
m. One member of the United States department of labor,
office of apprenticeship, serving as an ex-officio, nonvoting
member.
n. Four members of the general assembly serving as
ex officio, nonvoting members, one representative to be
appointed by the speaker of the house of representatives, one
representative to be appointed by the minority leader of the
house of representatives, one senator to be appointed by the
majority leader of the senate, and one senator to be appointed
by the minority leader of the senate.
3. a. The voting members of the advisory board and the
member from the United States department of labor, office
of apprenticeship, shall be selected by the named entity or
entities. The member representing the community college
apprenticeship programs shall be selected by the Iowa
association of community college trustees.
b. The voting members of the advisory board and the
member from the United States department of labor, office of
apprenticeship, shall serve three-year staggered terms. If
a vacancy occurs a successor shall be selected in the same
manner and subject to the same qualifications as the original

House File 2460, p. 20
selection to serve the remainder of the term.
c. The legislative members of the advisory board shall serve
terms as provided in section 69.16B. A legislative member may
designate another person to attend an advisory board meeting
if the member is unavailable.
4. The voting members shall elect a chairperson and vice
chairperson annually from the voting membership of the advisory
board. A majority of the voting members of the advisory board
constitute a quorum. If the chairperson and vice chairperson
are unable to preside over the advisory board due to absence or
disability, a majority of the voting members present may elect
a temporary chairperson providing a quorum is present.
5. The advisory board shall do all of the following:
a. Advise the authority on issues related to apprenticeship
programs supported pursuant to this chapter.
b. Promote the development of new and the expansion of
existing apprenticeship programs in Iowa.
c. In collaboration with the department of education,
educate students about apprenticeship training opportunities
and promote apprenticeship training in middle school and high
school.
Sec. 22. Section 260C.18A, subsection 2, paragraph b, Code
2014, is amended to read as follows:
b. Projects in which an agreement between a community
college and a business meet all the requirements of the Iowa
jobs training Act under chapter 260F . However, projects funded
by moneys provided by a local workforce training and economic
development fund of a community college are not subject to
the maximum advance or award limitations contained in section
260F.6, subsection 2 , or the allocation limitations contained
in section 260F.8, subsection 1 .
Sec. 23. Section 260F.2, subsection 2, Code 2014, is amended
by striking the subsection.
Sec. 24. Section 260F.2, Code 2014, is amended by adding the
following new subsection:
NEW SUBSECTION . 4A. “Department” means the department of
education.
Sec. 25. Section 260F.2, subsections 4, 5, 10, and 11, Code
2014, are amended to read as follows:
4. “Date of commencement of the project” commencement” means
the date of the preliminary signed agreement or the date an
application for assistance is received by the authority .
5. “Eligible business” or “business” means a business

House File 2460, p. 21
training employees which is engaged in interstate or intrastate
commerce for the purpose of manufacturing, processing, or
assembling products, conducting research and development,
commercial construction, or providing services in interstate
commerce including electronic commerce , but excludes retail,
health, or professional services and which meets the other
criteria established by the authority department . “Eligible
business” does not include a business whose training costs can
be economically funded under chapter 260E , a business which
closes or substantially reduces its employment base in order
to relocate substantially the same operation to another area
of the state, or a business which is involved in a strike,
lockout, or other labor dispute in Iowa.
10. “Program services” includes but is not limited to the
following:
a. Training of employees.
b. Adult basic education and job-related instruction.
c. Vocational and skill-assessment services and testing.
d. Training facilities, equipment, materials, and supplies.
e. Administrative expenses incurred by community colleges
for the jobs training program , in an amount not to exceed five
percent of the total project cost .
f. Subcontracted services with institutions governed by the
state board of regents, private colleges or universities, or
other federal, state, or local agencies.
g. Contracted or professional services.
11. “Project” means a training arrangement which is the
subject of an agreement entered into between the community
college and a business to provide program services. “Project”
also means an authority-sponsored training arrangement which
is sponsored by the authority and administered under sections
260F.6A and 260F.6B .
Sec. 26. Section 260F.3, Code 2014, is amended by adding the
following new subsections:
NEW SUBSECTION . 4A. Type of training to be delivered.
NEW SUBSECTION . 4B. Amount of employer match.
Sec. 27. NEW SECTION . 260F.4 Financial assistance ——
restrictions.
1. The maximum award of financial assistance for any one
project is fifty thousand dollars.
2. A business may be approved for multiple projects, but the
total financial assistance award to a business shall not exceed
one hundred thousand dollars within a three-year period.

House File 2460, p. 22
3. An award of financial assistance does not include
reimbursement to the business for employee wages while the
employee is in training.
4. An award of financial assistance is based on the actual
cost of services.
5. A business’s request for financial assistance shall be
commensurate with training needs.
6. Community colleges shall provide financial assistance to
a business on a reimbursement basis or by directly paying for
training expenses from an account administered by the community
college.
7. a. A business shall provide a cash match or in-kind
match in order to be eligible for financial assistance pursuant
to this section.
b. A business requesting financial assistance of less than
five thousand dollars for a program shall provide an in-kind
match.
c. A business requesting financial assistance of five
thousand dollars or more for a program shall provide cash to
pay at least twenty-five percent of the total project cost,
including training and administration costs.
d. An in-kind match includes employee wages paid by
the business during the training period, the value of
business-provided facilities and equipment used for training,
or the value of any other resource provided by the business to
facilitate the training program.
Sec. 28. NEW SECTION . 260F.5 Community college annual
report.
1. Each community college shall submit an annual report
to the governor, the general assembly, and the department by
September 1 documenting the job training programs funded and
the community college training fund during the previous fiscal
year.
2. The report shall address the performance metrics
established by the department for the job training program
pursuant to section 260F.8.
3. The report shall include the following information
concerning the community college training fund created pursuant
to section 260F.6 for that community college:
a. The number of projects and the amount paid for each
project out of the fund.
b. The amount of money remaining in the fund at the end of
the fiscal year.

House File 2460, p. 23
c. An accounting of any other moneys spent out of the fund
in the fiscal year.
4. The report shall be submitted in a manner and form
prescribed by the department.
Sec. 29. Section 260F.6, subsection 1, Code 2014, is amended
to read as follows:
1. There is established created as a revolving fund for
the community colleges a job training fund in the economic
development authority in the workforce development fund to be
administered by the department . The job training fund consists
of moneys appropriated for the purposes of this chapter plus
the interest and principal from repayment of advances made to
businesses for program costs, plus the repayments, including
interest, of loans made from that retraining fund, and interest
earned from moneys in the job training fund . Moneys in the
fund are appropriated to the department for purposes of this
chapter.
Sec. 30. Section 260F.6, subsections 2 and 3, Code 2014,
are amended by striking the subsections and inserting in lieu
thereof the following:
2. A community college training fund is created for each
community college. Moneys in the job training fund shall be
allocated to each community college training fund pursuant
to the formula established in section 260C.18C. A project
meeting the criteria of an eligible business established by
the department is funded upon the approval of the community
college’s board of directors.
3. Notwithstanding section 8.33, moneys in the community
college training funds and the job training fund created in
this section at the close of the fiscal year shall not revert
to the general fund of the state but shall remain available for
expenditure for the purpose designated for subsequent fiscal
years. Notwithstanding section 12C.7, subsection 2, interest
or earnings on moneys in the funds shall be credited to the
funds.
Sec. 31. Section 260F.7, Code 2014, is amended to read as
follows:
260F.7 Economic development authority Department of education
to coordinate.
The economic development authority, in consultation with
the department of education and the department of workforce
development, department shall coordinate the jobs training
program. A project shall not be funded under this chapter

House File 2460, p. 24
unless the economic development authority approves the project.
The authority department shall adopt rules pursuant to chapter
17A governing the program’s operation and eligibility for
participation in the program. The authority department shall
establish by rule criteria for determining what constitutes an
eligible business.
Sec. 32. Section 260F.8, Code 2014, is amended by striking
the section and inserting in lieu thereof the following:
260F.8 Program assessment, development, and coordination.
1. The department shall establish performance metrics for
the job training programs funded under this chapter and assess
program outcomes on an annual basis.
2. A community college may retain up to ten percent of the
total project cost for the following purposes:
a. Outreach to employers by community college business and
industry outreach staff.
b. Monitoring the performance of training agreements and
accountability measures.
c. Development of training project and program plans.
d. Business development activities.
Sec. 33. Section 403.21, subsections 1 and 3, Code 2014, are
amended to read as follows:
1. In order to promote communication and cooperation among
cities, counties, and community colleges with respect to the
allocation and division of taxes, no jobs training projects
as defined in chapter 260E or 260F shall be undertaken within
the area of operation of a municipality after July 1, 1995,
unless the municipality and the community college have entered
into an agreement or have jointly adopted a plan relating
to a community college’s new jobs training program which
shall provide for a procedure for advance notification to
each affected municipality, for exchange of information, for
mutual consultation, and for procedural guidelines for all
such new jobs training projects, including related project
financing to be undertaken within the area of operation of the
municipality. The joint agreement or the plan shall state its
precise duration and shall be binding on the community college
and the municipality with respect to all new jobs training
projects, including related project financing undertaken during
its existence. The joint agreement or plan shall be effective
upon adoption and shall be placed on file in the office of the
secretary of the board of directors of the community college
and such other location as may be stated in the joint agreement

House File 2460, p. 25
or plan. The joint agreement or plan shall also be sent to each
school district which levied or certified for levy a property
tax on any portion of the taxable property located in the area
of operation of the municipality in the fiscal year beginning
prior to the calendar year in which the plan is adopted or
the agreement is reached. If no such agreement is reached or
plan adopted, the community college shall not use incremental
property tax revenues to fund jobs training projects within the
area of operation of the municipality. Agreements entered into
between a community college and a city or county pursuant to
chapter 28E shall not apply.
3. The community college shall send a copy of the final
agreement prepared pursuant to section 260F.3 to the economic
development authority. For each year in which incremental
property taxes are used to retire debt service on a jobs
training advance issued for a project creating new jobs, the
community college shall provide to the economic development
authority a report of the incremental property taxes and new
jobs credits from withholding generated for that year, a
specific description of the training conducted, the number of
employees provided program services under the project, the
median wage of employees in the new jobs in the project, and
the administrative costs directly attributable to the project.
Sec. 34. Section 558.1, Code 2014, is amended to read as
follows:
558.1 “Instruments affecting real estate” defined ——
revocation.
All instruments containing a power to convey, or in any
manner relating to real estate, including certified copies of
petitions in bankruptcy with or without the schedules appended,
of decrees of adjudication in bankruptcy, and of orders
approving trustees’ bonds in bankruptcy, and a jobs training
agreement entered into under chapter 260E or 260F between an
employer and community college which contains a description
of the real estate affected, shall be held to be instruments
affecting the same; and no such instrument, when acknowledged
or certified and recorded as in this chapter prescribed, can be
revoked as to third parties by any act of the parties by whom it
was executed, until the instrument containing such revocation
is acknowledged and filed for record in the same office in
which the instrument containing such power is recorded, except
that uniform commercial code financing statements and financing
statement changes as provided in chapter 554 need not be thus

House File 2460, p. 26
acknowledged.
Sec. 35. REPEAL. Section 15.343, Code 2014, is repealed.
Sec. 36. REPEAL. Section 260F.6A, Code 2014, is repealed.
Sec. 37. REPEAL. Section 260F.6B, Code 2014, is repealed.
Sec. 38. RULES. The economic development authority and the
department of education shall adopt rules to administer this
Act.
Sec. 39. TRANSFER OF FUNDS. Except as otherwise provided in
this Act, all moneys in the workforce development fund, created
in section 15.343, Code 2014, as of the effective date of this
division of this Act and any moneys accruing to the workforce
development fund, created in section 15.343, Code 2014, after
the effective date of this division of this Act, shall be
distributed equally between the job training fund created in
section 260F.6, as amended in this Act, and the apprenticeship
training program fund created in section 15B.3, as enacted
in this Act, and deposited in the job training fund and the
apprenticeship training program fund.
DIVISION IV
IOWA PRODUCTS
Sec. 40. IOWA PRODUCTS. As a condition of receiving an
appropriation, any agency appropriated moneys pursuant to this
Act shall give first preference when purchasing a product to an
Iowa product or a product produced from an Iowa-based business.
Second preference shall be given to a United States product or
a product produced from a business based in the United States.
DIVISION V
STEM INTERNSHIPS
Sec. 41. Section 15.411, subsection 3, Code 2014, is amended
to read as follows:
3. a. The authority shall establish and administer an
innovative businesses internship program with two components
for Iowa students. For purposes of this subsection , “Iowa
student” means a student of an Iowa community college, private
college, or institution of higher learning under the control
of the state board of regents, or a student who graduated from
high school in Iowa but now attends an institution of higher
learning outside the state of Iowa.
b. The purpose of the first component of the program is
to link Iowa students to small and medium sized Iowa firms
through internship opportunities. An Iowa employer may receive
financial assistance in an amount of one dollar for every
two dollars paid by the employer to an intern. The amount

House File 2460, p. 27
of financial assistance shall not exceed three thousand one
hundred dollars for any single internship, or nine thousand
three hundred dollars for any single employer. In order to be
eligible to receive financial assistance under this subsection
paragraph , the employer must have five hundred or fewer
employees and must be an innovative business. The authority
shall encourage youth who reside in economically distressed
areas, youth adjudicated to have committed a delinquent act,
and youth transitioning out of foster care to participate in
the first component of the internship program.
c. (1) The purpose of the second component of the program
is to assist in placing Iowa students studying in the fields
of science, technology, engineering, and mathematics into
internships that lead to permanent positions with Iowa
employers. The authority shall collaborate with eligible
employers, including but not limited to innovative businesses,
to ensure that the interns hired are studying in such fields.
An Iowa employer may receive financial assistance in an amount
of one dollar for every dollar paid by the employer to an
intern. The amount of financial assistance shall not exceed
five thousand dollars per internship. The authority may adopt
rules to administer this component.
(2) The requirement to administer this component of the
internship program is contingent upon the provision of funding
for such purposes by the general assembly.
DIVISION VI
FINANCIAL ASSISTANCE FOR BORDER COUNTY HOSPITALS
Sec. 42. FINANCIAL ASSISTANCE FOR BORDER COUNTY HOSPITALS.
1. Notwithstanding the purposes provided under section
16.182, subsection 1, section 16.183, subsection 1, section
16.184, subsection 1, and section 16.185, subsection 1, the
Iowa finance authority created in section 16.1A shall use
moneys from the funds created in sections 16.182, 16.183,
16.184, and 16.185 to provide financial assistance directly
to hospitals in counties that border other states. A border
county hospital may apply to the authority for financial
assistance and the authority shall provide financial assistance
pursuant to this section if the applying hospital meets the
criteria described in subsection 2 and funding is available.
2. To qualify for financial assistance pursuant to this
section, a hospital shall meet the following criteria:
a. The hospital is licensed in this state and is located in
a county bordering two states.

House File 2460, p. 28
b. The hospital is located in a county with a population of
greater than 25,000 persons, but less than 50,000 persons.
c. Not less than ninety percent of the operations of the
hospital are located within this state.
d. Based upon the hospital’s net worth, cash flow,
debt-to-asset ratio, and other criteria prescribed by the
authority, the applying hospital has determined that without
receiving financial assistance pursuant to this section,
the hospital could not reasonably be expected to obtain,
retain, restructure, or service loans or other financing for
operating expenses or cash flow requirements on a reasonable
and affordable basis.
3. a. The Iowa finance authority shall provide financial
assistance pursuant to this section in the form of a loan.
The loan may be a secured or unsecured direct loan to the
qualifying hospital.
b. The amount of financial assistance provided pursuant
to this section as a secured or unsecured direct loan to a
qualifying border hospital shall not exceed five million
dollars.
c. Any loan provided pursuant to this section shall be fully
amortized and repaid over a five-year period.
d. Repayments of any loan provided pursuant to this section
shall be made to the authority and the authority shall credit
the moneys to the account from which it was provided.
4. Notwithstanding the purposes provided under section
16.182, subsection 1, section 16.183, subsection 1, section
16.184, subsection 1, and section 16.185, subsection 1, moneys
in the funds established in sections 16.182, 16.183, 16.184,
and 16.185 may be commingled and transferred for the purpose
of providing financial assistance pursuant to this section or
for the purposes provided under section 16.182, subsection
1, section 16.183, subsection 1, section 16.184, subsection
1, and section 16.185, subsection 1. Moneys in the funds
established in sections 16.182, 16.183, 16.184, and 16.185
shall be commingled or transferred if the moneys in any of
the funds individually are insufficient to provide financial
assistance pursuant to this section, or to provide assistance
for the purposes provided in section 16.182, subsection 1,
section 16.183, subsection 1, section 16.184, subsection 1, and
section 16.185, subsection 1.
5. As used in this section, unless the context otherwise
requires, “hospital” means the same as defined in section

House File 2460, p. 29
135B.1.
Sec. 43. EFFECTIVE UPON ENACTMENT. This division of this
Act, being deemed of immediate importance, takes effect upon
enactment.
DIVISION VII
PERSONNEL SETTLEMENT AGREEMENT PAYMENTS
Sec. 44. PERSONNEL SETTLEMENT AGREEMENT PAYMENTS. As
a condition made to any appropriation to the department of
cultural affairs, the economic development authority, the Iowa
finance authority, the public employment relations board,
the department of workforce development, the state board of
regents, Iowa state university, the state university of Iowa,
or the university of northern Iowa as provided in this Act,
moneys appropriated and any other moneys available for use by
that entity under this Act shall not be used for the payment
of a personnel settlement agreement between that entity and
a state employee that contains a confidentiality provision
intended to prevent public disclosure of the agreement or any
terms of the agreement.
______________________________
KRAIG PAULSEN
Speaker of the House
______________________________
PAM JOCHUM
President of the Senate
I hereby certify that this bill originated in the House and
is known as House File 2460, Eighty-fifth General Assembly.
______________________________
CARMINE BOAL
Chief Clerk of the House
Approved _______________, 2014
______________________________
TERRY E. BRANSTAD
Governor