Bill Text: IA SF2359 | 2013-2014 | 85th General Assembly | Enrolled
Bill Title: A bill for an act relating to the administration of certain economic development programs by the economic development authority and including effective date and retroactive applicability provisions. (Formerly SSB 3121, SF 2180, and SF 2354.) Various effective dates; see bill.
Spectrum: Committee Bill
Status: (Passed) 2014-05-30 - Signed by Governor. S.J. 930. [SF2359 Detail]
Download: Iowa-2013-SF2359-Enrolled.html
Senate
File
2359
AN
ACT
RELATING
TO
THE
ADMINISTRATION
OF
CERTAIN
ECONOMIC
DEVELOPMENT
PROGRAMS
BY
THE
ECONOMIC
DEVELOPMENT
AUTHORITY
AND
INCLUDING
EFFECTIVE
DATE
AND
RETROACTIVE
APPLICABILITY
PROVISIONS.
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
DIVISION
I
INVESTMENT
TAX
CREDITS
Section
1.
Section
15E.43,
subsection
1,
paragraph
b,
Code
2014,
is
amended
to
read
as
follows:
b.
A
tax
credit
shall
be
allowed
only
for
an
investment
made
in
the
form
of
cash
to
purchase
equity
in
a
qualifying
business
or
in
a
community-based
seed
capital
fund.
A
taxpayer
that
has
received
a
tax
credit
for
an
investment
in
a
community-based
seed
capital
fund
shall
not
claim
the
tax
credit
prior
to
the
third
tax
year
following
the
tax
year
in
which
the
investment
is
made.
Any
tax
credit
in
excess
of
the
taxpayer’s
liability
for
the
tax
year
may
be
credited
to
the
tax
liability
for
the
following
five
years
or
until
depleted,
whichever
is
earlier.
A
tax
credit
shall
not
be
carried
back
to
a
tax
year
prior
to
the
tax
year
in
which
the
taxpayer
redeems
the
tax
credit.
Sec.
2.
Section
15E.43,
subsections
3
and
5,
Code
2014,
are
amended
to
read
as
follows:
3.
An
investment
shall
be
deemed
to
have
been
made
on
the
same
date
as
the
date
of
acquisition
of
the
equity
interest
as
determined
by
the
Internal
Revenue
Code.
An
investment
made
prior
to
January
1,
2002,
shall
not
qualify
for
a
tax
credit
under
this
division
.
5.
A
tax
credit
shall
not
be
redeemed
during
any
tax
year
beginning
prior
to
January
1,
2005.
A
tax
credit
shall
not
be
transferable
to
any
other
taxpayer.
Senate
File
2359,
p.
2
Sec.
3.
Section
15E.43,
Code
2014,
is
amended
by
adding
the
following
new
subsection:
NEW
SUBSECTION
.
5A.
A
tax
credit
issued
pursuant
to
this
division
for
an
equity
investment
in
a
qualifying
business,
as
described
in
section
15E.44,
which
is
made
on
or
after
January
1,
2014,
shall
not
be
redeemed
by
a
taxpayer
prior
to
January
1,
2016.
Sec.
4.
Section
15E.44,
subsection
1,
Code
2014,
is
amended
to
read
as
follows:
1.
In
order
for
an
equity
investment
to
qualify
for
a
tax
credit,
the
business
in
which
the
equity
investment
is
made
shall,
within
one
hundred
twenty
days
of
the
date
of
the
first
investment,
notify
the
authority
of
the
names,
addresses,
shares
issued,
consideration
paid
for
the
shares,
and
the
amount
of
any
tax
credits,
of
all
shareholders
who
may
initially
qualify
for
the
tax
credits
,
and
the
earliest
year
in
which
the
tax
credits
may
be
redeemed
.
The
list
of
shareholders
who
may
qualify
for
the
tax
credits
shall
be
amended
as
new
equity
investments
are
sold
or
as
any
information
on
the
list
shall
change.
Sec.
5.
Section
15E.44,
subsection
2,
paragraph
f,
Code
2014,
is
amended
to
read
as
follows:
f.
The
business
shall
have
secured
,
within
twenty-four
months
following
the
first
date
on
which
the
equity
investments
qualifying
for
tax
credits
have
been
made,
total
equity
or
financing,
near
equity
financing
,
binding
investment
commitments,
or
some
combination
thereof,
equal
to
at
least
two
hundred
fifty
thousand
dollars.
Sec.
6.
Section
15E.45,
subsection
3,
paragraph
a,
subparagraph
(3),
Code
2014,
is
amended
by
striking
the
subparagraph
and
inserting
in
lieu
thereof
the
following:
(3)
Any
other
information
required
by
the
authority.
Sec.
7.
Section
15E.45,
subsection
6,
Code
2014,
is
amended
to
read
as
follows:
6.
In
the
event
that
a
community-based
seed
capital
fund
fails
to
meet
or
maintain
any
requirement
set
forth
in
this
section
,
or
in
the
event
that
at
least
thirty-three
percent
of
the
invested
capital
of
the
community-based
seed
capital
fund
has
not
been
invested
in
one
or
more
separate
qualifying
businesses,
measured
at
the
end
of
the
forty-eighth
thirty-sixth
month
after
commencing
the
fund’s
investing
activities,
the
authority
shall
rescind
any
tax
credit
certificates
issued
to
limited
partners
or
members
and
shall
Senate
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2359,
p.
3
notify
the
department
of
revenue
that
it
has
done
so,
and
the
tax
credit
certificates
shall
be
null
and
void.
However,
a
A
community-based
seed
capital
fund
may
apply
to
the
authority
for
a
one-year
waiver
of
the
requirements
of
this
subsection
.
Sec.
8.
RETROACTIVE
APPLICABILITY.
Except
as
otherwise
provided
in
this
division
of
this
Act,
this
division
of
this
Act
applies
retroactively
to
January
1,
2014,
for
tax
years
beginning
and
investments
made
on
or
after
that
date.
DIVISION
II
TARGETED
SMALL
BUSINESS
ASSISTANCE
Sec.
9.
2013
Iowa
Acts,
chapter
13,
section
10,
subsections
1
and
2,
are
amended
to
read
as
follows:
1.
Upon
repeal
of
the
targeted
small
business
financial
assistance
program
established
in
section
15.247
,
the
authority
shall
transfer
all
unencumbered
and
unobligated
moneys
accruing
to
the
authority
pursuant
to
existing
agreements
to
a
fund
established
by
the
authority
in
the
state
treasury
under
the
control
of
the
authority
pursuant
to
section
15.106A,
subsection
1,
paragraph
“o”,
to
be
used
for
the
purposes
of
providing
assistance
to
targeted
small
businesses
pursuant
to
subsection
subsections
3
and
4
of
this
section
of
this
Act.
2.
Loan
payments
or
repayments
and
recaptures
of
principal,
interest,
or
other
moneys
accruing
to
the
authority
on
or
after
June
30,
2013,
pursuant
to
an
agreement
under
section
15.247
,
shall
be
transferred
to
a
fund
established
by
the
authority
in
the
state
treasury
under
the
control
of
the
authority
pursuant
to
section
15.106A,
subsection
1,
paragraph
“o”,
to
be
used
for
the
purposes
of
providing
assistance
to
targeted
small
businesses
pursuant
to
subsection
subsections
3
and
4
of
this
section
of
this
Act.
Sec.
10.
2013
Iowa
Acts,
chapter
13,
section
10,
subsection
3,
paragraph
c,
is
amended
to
read
as
follows:
c.
The
authority
shall,
upon
completion
of
the
initial
performance
period
and
the
other
applicable
terms
of
the
agreement
with
the
microloan
service
provider,
submit
a
report
to
the
general
assembly
and
the
governor’s
office
describing
the
results
achieved
by
the
service
provider
and
shall
make
recommendations
as
to
whether
the
state
should
continue
to
provide
funds
for
future
fiscal
years
for
the
purpose
of
providing
financial
and
technical
assistance
to
targeted
small
businesses
through
the
services
of
a
microloan
service
provider.
The
report
shall
also
include
the
results
achieved
by
the
program
established
to
assist
entities
in
developing
a
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2359,
p.
4
statewide
initiative
designed
to
increase
the
number
of
female
entrepreneurs
in
the
state
pursuant
to
subsection
4.
Sec.
11.
2013
Iowa
Acts,
chapter
13,
section
10,
is
amended
by
adding
the
following
new
subsection:
NEW
SUBSECTION
.
4.
a.
From
the
moneys
transferred
pursuant
to
subsections
1
and
2,
the
authority
may
use
amounts
not
allocated
for
purposes
of
subsection
3
for
purposes
of
this
subsection.
b.
The
authority
may
establish
a
program
to
assist
one
or
more
private
sector
entities
in
implementing
a
multiyear
statewide
initiative
designed
to
increase
the
number
of
female
entrepreneurs
in
the
state.
Such
an
initiative
shall
target
at
least
ten
communities
around
the
state,
both
urban
and
rural,
for
training
and
discussion
on
the
personal,
legal,
and
financial
aspects
of
starting
and
operating
a
small
business.
The
initiative
shall
also
provide
for
individual
mentoring,
access
to
matched
savings
accounts
intended
to
be
used
for
the
start
or
expansion
of
a
small
business
by
a
female
entrepreneur,
and
specialized
topical
workshops
useful
to
female
entrepreneurs.
c.
A
targeted
small
business
owned,
operated,
and
actively
managed
by
one
or
more
women
that
is
receiving
assistance
under
subsection
3
is
also
eligible
to
receive
assistance
under
this
subsection.
d.
The
program
established
pursuant
to
this
subsection
shall
be
implemented,
to
the
extent
practicable,
in
a
manner
that
complements
the
program
established
pursuant
to
subsection
3.
Results
achieved
by
the
program
established
pursuant
to
this
subsection
shall
be
included
in
the
report
prepared
pursuant
to
subsection
3.
Sec.
12.
EFFECTIVE
UPON
ENACTMENT.
This
division
of
this
Act,
being
deemed
of
immediate
importance,
takes
effect
upon
enactment.
DIVISION
III
STRATEGIC
INFRASTRUCTURE
PROGRAM
Sec.
13.
Section
15.117A,
subsection
6,
Code
2014,
is
amended
by
adding
the
following
new
paragraph:
NEW
PARAGRAPH
.
f.
Review
and
make
recommendations
on
all
applications
received
by
the
authority
for
financial
assistance
under
the
Iowa
strategic
infrastructure
program
pursuant
to
section
15.313.
Sec.
14.
Section
15.311,
Code
2014,
is
amended
to
read
as
follows:
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File
2359,
p.
5
15.311
Title.
This
part
shall
be
known
as
the
“Iowa
Strategic
Investment
Fund”
Infrastructure”
program.
Sec.
15.
Section
15.313,
subsection
1,
Code
2014,
is
amended
to
read
as
follows:
1.
a.
An
Iowa
strategic
investment
fund
is
created
The
authority
shall
establish
a
fund
pursuant
to
section
15.106A,
subsection
1,
paragraph
“o”
,
for
purposes
of
financing
strategic
infrastructure
projects
as
described
in
this
section.
A
fund
established
for
purposes
of
this
section
may
be
administered
as
a
revolving
fund
consisting
and
may
consist
of
any
money
moneys
appropriated
by
the
general
assembly
for
that
purpose
purposes
of
this
section
and
any
other
moneys
that
are
lawfully
available
to
and
obtained
or
accepted
by
the
authority
,
from
the
federal
government
or
private
sources
for
placement
in
the
fund
including
moneys
transferred
or
deposited
from
other
funds
created
pursuant
to
section
15.106A,
subsection
1,
paragraph
“o”
.
Any
moneys
appropriated
to
a
fund
for
purposes
of
this
section
shall
be
used
for
purposes
of
the
strategic
infrastructure
program.
b.
Notwithstanding
section
8.33
,
moneys
in
the
strategic
investment
a
fund
established
for
purposes
of
this
section
at
the
end
of
each
fiscal
year
shall
not
revert
to
any
other
fund
but
shall
remain
in
the
strategic
investment
infrastructure
fund
for
expenditure
for
subsequent
fiscal
years.
c.
Moneys
in
a
fund
established
for
purposes
of
this
section,
except
for
moneys
appropriated
to
a
fund
for
purposes
of
this
section,
may
be
transferred
to
other
funds
created
pursuant
to
section
15.106A,
subsection
1,
paragraph
“o”
.
Sec.
16.
Section
15.313,
subsection
2,
unnumbered
paragraph
1,
Code
2014,
is
amended
to
read
as
follows:
The
assets
of
the
fund
program
shall
be
used
by
the
authority
to
assist
in
provide
financial
assistance
for
strategic
infrastructure
projects
that
are
intended
to
lead
to
relocation
or
expansion
projects
for
existing
businesses
as
well
as
entrepreneurial
start-up
and
expansion
projects
financial
assistance
for
new
businesses
.
Moneys
in
the
fund
shall
be
used
for
projects
designed
to
meet
any
of
the
following
purposes:
Sec.
17.
Section
15.313,
subsection
2,
paragraphs
a,
b,
c,
d,
e,
and
f,
Code
2014,
are
amended
by
striking
the
paragraphs.
Sec.
18.
Section
15.313,
Code
2014,
is
amended
by
adding
the
following
new
subsection:
Senate
File
2359,
p.
6
NEW
SUBSECTION
.
2A.
The
Iowa
innovation
council
shall
review
each
application
received
by
the
economic
development
authority
for
financial
assistance
under
the
program
and
shall
make
recommendations
to
the
board
regarding
all
of
the
following:
a.
The
completeness
of
the
application.
b.
Whether
the
board
should
approve
an
application
for
financial
assistance,
and
if
so,
the
amount
of
such
financial
assistance.
Sec.
19.
Section
15.313,
subsection
3,
Code
2014,
is
amended
by
striking
the
subsection
and
inserting
in
lieu
thereof
the
following:
3.
For
purposes
of
this
section,
unless
the
context
otherwise
requires:
a.
“Financial
assistance”
means
the
same
as
defined
in
section
15.102.
b.
“Strategic
infrastructure”
means
projects
that
develop
commonly
utilized
assets
that
provide
an
advantage
to
one
or
more
private
sector
entities
or
that
create
necessary
physical
infrastructure
in
the
state,
and
such
projects
are
not
adequately
provided
by
the
public
or
private
sectors.
Such
projects
may
include
vertical
improvement
developments,
facilities
and
equipment
upgrades,
or
the
redevelopment
or
repurposing
of
underutilized
property
or
other
assets,
provided
that
each
project
is
intended
to
attract
additional
public
or
private
sector
investment
and
result
in
broad-based
prosperity
in
this
state.
c.
“Vertical
improvement”
means
the
same
as
defined
in
section
15J.2.
Sec.
20.
Section
15.313,
Code
2014,
is
amended
by
adding
the
following
new
subsection:
NEW
SUBSECTION
.
4.
The
authority
shall
adopt
rules
to
implement
and
administer
this
section.
In
adopting
such
rules,
the
authority
shall
narrowly
construe
the
provisions
of
this
section.
Sec.
21.
Section
15.335B,
subsection
2,
paragraph
a,
Code
2014,
is
amended
by
adding
the
following
new
subparagraph:
NEW
SUBPARAGRAPH
.
(7)
For
deposit
in
a
fund
created
for
purposes
of
the
strategic
infrastructure
program
established
pursuant
to
section
15.313.
Sec.
22.
Section
384.4,
subsection
1,
paragraph
b,
Code
2014,
is
amended
to
read
as
follows:
b.
Interest
as
it
becomes
due
and
the
amount
necessary
Senate
File
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p.
7
to
pay,
or
to
create
a
sinking
fund
to
pay,
the
principal
at
maturity
of
all
general
obligation
bonds
issued
by
the
city
or
to
pay,
or
to
create
a
sinking
fund
to
pay,
amounts
as
due
on
loans
received
through
the
former
Iowa
community
development
loan
program
pursuant
to
section
15E.120
.
Sec.
23.
2011
Iowa
Acts,
chapter
133,
section
13A,
as
enacted
by
2013
Iowa
Acts,
chapter
142,
section
7,
is
amended
to
read
as
follows:
SEC.
13A.
TRANSITION
UPON
REPEAL.
1.
Any
moneys
in
the
economic
development
fund
created
pursuant
to
section
15G.111,
Code
Supplement
2011
,
that
remain
unobligated
on
July
1,
2013,
shall
be
transferred
to
the
rebuild
Iowa
infrastructure
fund.
The
authority
shall
provide
notification
to
the
department
of
management
and
to
the
legislative
services
agency
at
the
time
of
the
transfer.
2.
Loan
payments
or
repayments
and
recaptures
of
principal,
interest,
or
other
moneys
accruing
to
the
authority
on
or
after
July
1,
2013,
pursuant
to
an
agreement
under
chapter
15G,
subchapter
I,
shall
be
transferred
by
the
authority
to
a
fund
established
by
the
authority
in
the
state
treasury
pursuant
to
section
15.106A,
subsection
1,
paragraph
“o”.
3.
The
authority
may
use
any
moneys
accruing
pursuant
to
subsection
2
for
purposes
of
section
15.313.
Sec.
24.
REPEAL.
Section
15E.120,
Code
2014,
is
repealed.
Sec.
25.
EFFECTIVE
UPON
ENACTMENT.
This
division
of
this
Act,
being
deemed
of
immediate
importance,
takes
effect
upon
enactment.
Sec.
26.
RETROACTIVE
APPLICABILITY.
The
section
of
this
division
of
this
Act
amending
2011
Iowa
Acts,
chapter
133,
section
13A,
as
enacted
by
2013
Iowa
Acts,
chapter
142,
section
7,
applies
retroactively
to
July
1,
2013.
DIVISION
IV
ENDOW
IOWA
PROGRAM
Sec.
27.
Section
15E.303,
subsection
4,
Code
2014,
is
amended
to
read
as
follows:
4.
“Endow
Iowa
qualified
community
foundation”
means
a
community
foundation
organized
or
operating
in
this
state
that
substantially
complies
with
attains
the
national
standards
established
by
the
national
council
on
foundations
as
determined
by
the
authority
in
collaboration
with
the
Iowa
council
of
foundations.
DIVISION
V
ECONOMIC
DEVELOPMENT
REGIONS
Senate
File
2359,
p.
8
Sec.
28.
Section
15E.231,
unnumbered
paragraph
1,
Code
2014,
is
amended
to
read
as
follows:
In
order
for
an
economic
development
region
to
receive
assistance
pursuant
to
section
15.335B
,
an
economic
development
region’s
regional
development
plan
must
be
approved
by
the
authority.
An
economic
development
region
shall
consist
of
not
less
than
three
counties,
unless
two
contiguous
counties
have
a
combined
population
of
at
least
three
hundred
thousand
based
on
the
most
recent
federal
decennial
census
three
or
more
contiguous
counties
or
two
or
more
contiguous
counties
and
one
or
more
public
or
private,
nonprofit
entities
that
have
entered
into
an
agreement
to
pursue
mutual
economic
development
goals
with
a
regional
focus
.
An
economic
development
region
shall
establish
a
focused
economic
development
effort
that
shall
include
a
regional
development
plan
relating
to
one
or
more
of
the
following
areas:
Sec.
29.
EFFECTIVE
UPON
ENACTMENT.
This
division
of
this
Act,
being
deemed
of
immediate
importance,
takes
effect
upon
enactment.
______________________________
PAM
JOCHUM
President
of
the
Senate
______________________________
KRAIG
PAULSEN
Speaker
of
the
House
I
hereby
certify
that
this
bill
originated
in
the
Senate
and
is
known
as
Senate
File
2359,
Eighty-fifth
General
Assembly.
______________________________
MICHAEL
E.
MARSHALL
Secretary
of
the
Senate
Approved
_______________,
2014
______________________________
TERRY
E.
BRANSTAD
Governor