Senate File 2289 - Enrolled
Senate File 2289
AN ACT
RELATING TO ECONOMIC DEVELOPMENT AND ENERGY SHORTAGES UNDER THE
PURVIEW OF THE ECONOMIC DEVELOPMENT AUTHORITY AND GOVERNOR,
AND PROVIDING PENALTIES.
4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 DIVISION I
2 ECONOMIC DEVELOPMENT PROGRAMS
3 Section 1. Section 15.106B, subsection 5, paragraph b, Code
4 2024, is amended by striking the paragraph.
5 Sec. 2. NEW SECTION. 15.106E Application or award ——
6 prohibition.
7 1. The authority may prohibit a person from receiving an
8 award of financial assistance, or from being selected as a
9 vendor to provide goods or services to the authority in any of
10 the following circumstances:
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11 a. An act or omission by the person seriously affects or
12 threatens public health, public safety, or the environment.
13 b. The person is charged with or convicted of a crime
14 involving dishonesty.
15 c. An act or omission by the person indicates a lack of
16 integrity or honesty.
17 d. The person violates the terms of an agreement or
18 transaction that detrimentally impacts the integrity of a
19 program administered by the authority, or other governmental
20 entity as defined in section 8A.101.
21 e. A compelling cause exists that is relevant to and affects
22 the person’s obligations under the programs administered by the
23 authority, or is relevant to and affects the provision of goods
24 and services to the authority by a vendor.
25 2. Upon a determination by the authority, a person shall
26 be prohibited from receiving an award of financial assistance,
27 or from being selected as a vendor pursuant to subsection 1.
28 The authority shall provide written notice to the prohibited
29 person stating the reason for the prohibition. The authority
30 may immediately disqualify a prohibited person from receiving
31 financial assistance, or from being selected as a vendor.
32 3. A prohibited person may request a review of the
33 determination made by the authority pursuant to subsection 2.
34 a. The request to review the determination shall be made
35 within thirty-five calendar days of the date the authority
1 provided written notice to the prohibited person. The request
2 to review the determination must be in writing and state the
3 specific reasons or legal basis for review.
4 b. Within sixty calendar days of the receipt of the request
5 to review, the authority shall approve, deny, or modify the
6 determination, if the authority finds that the determination
7 is based on a clear error of material fact or law, or if the
8 authority finds the determination was arbitrary, capricious, or
9 an abuse of discretion.
10 c. The authority shall issue its decision in writing and
11 provide written notice of the decision to the prohibited
12 person.
13 d. The decision of the authority pursuant to this subsection
14 shall be considered final agency action. A petition for
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15 judicial review of the decision of the authority shall be filed
16 pursuant to section 17A.19.
17 4. The authority shall adopt rules as necessary pursuant to
18 chapter 17A to administer this section.
19 Sec. 3. Section 15.108, subsection 2, Code 2024, is amended
20 by striking the subsection and inserting in lieu thereof the
21 following:
22 2. Marketing. To aid in all of the following:
23 a. The marketing and promotion of Iowa products and
24 services.
25 b. The promotion and development of the agricultural
26 processing industry in the state.
27 Sec. 4. Section 15.108, subsection 3, paragraph a,
28 subparagraph (5), Code 2024, is amended to read as follows:
29 (5) Encourage cities, counties, local and regional
30 government organizations, and local and regional economic
31 development organizations to develop and implement
32 comprehensive community and economic development plans. In
33 evaluating financial assistance applications, the authority
34 shall award supplementary credit to applications submitted by
35 cities, counties, local and regional government organizations,
1 and local and regional economic development organizations
2 that have developed a comprehensive community and economic
3 development plan.
4 Sec. 5. Section 15.108, subsection 4, Code 2024, is amended
5 by striking the subsection and inserting in lieu thereof the
6 following:
7 4. Exporting. To promote and aid in the marketing and
8 sale of Iowa industrial and agricultural products and services
9 outside of the state. To carry out this responsibility, the
10 authority shall:
11 a. Perform the duties and activities specified for the
12 agricultural marketing program under sections 15.201 and
13 15.202.
14 b. Seek assistance and advice from the Iowa district export
15 council which advises the United States department of commerce.
16 Sec. 6. Section 15.108, subsection 5, paragraph d, Code
17 2024, is amended to read as follows:
18 d. Coordinate with other divisions of the authority to add
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19 Promote the contributions of Iowa’s recreation, tourism, and
20 leisure resources to the agricultural and other images which
21 characterize the state on a national level.
22 Sec. 7. Section 15.108, subsection 5, paragraph o, Code
23 2024, is amended by striking the paragraph.
24 Sec. 8. Section 15.108, subsection 6, paragraph c, Code
25 2024, is amended by striking the paragraph and inserting in
26 lieu thereof the following:
27 c. Provide aid for the development and implementation of
28 the Iowa targeted small business procurement Act established in
29 sections 73.15 through 73.22.
30 Sec. 9. Section 15.108, subsection 6, paragraphs f and g,
31 Code 2024, are amended by striking the paragraphs.
32 Sec. 10. Section 15.108, subsection 7, Code 2024, is amended
33 by striking the subsection.
34 Sec. 11. Section 15.108, subsection 10, paragraph b,
35 subparagraph (3), Code 2024, is amended to read as follows:
1 (3) Establish programs which assist communities or local
2 entities in developing housing to meet a range of community
3 needs, including programs to assist homeless shelter operations
4 and programs to assist in the development of housing to enhance
5 economic development opportunities in the community.
6 Sec. 12. Section 15.371, subsection 5, paragraph e, Code
7 2024, is amended to read as follows:
8 e. Employ a minimum of three full-time employees and no more
9 than seventy-five one hundred twenty-five full-time employees
10 across all of the manufacturer’s locations.
11 Sec. 13. NEW SECTION. 73.22 Reports.
12 1. By December 1 of each calendar year, the department of
13 administrative services shall provide a written summary to the
14 economic development authority of all activities undertaken
15 by the department of administrative services to maximize the
16 purposes of this subchapter during the immediately preceding
17 fiscal year.
18 2. By December 1 of each calendar year, the economic
19 development authority shall compile a list of the procurement
20 goals established pursuant to section 73.16, subsection 2, for
21 the prior fiscal year, and the performance of each agency or
22 department of state government having purchasing authority in
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23 meeting the goals. The compilation shall be based upon the
24 reports required to be filed under section 73.16, subsection 2.
25 3. By January 15 of each calendar year, the economic
26 development authority shall submit to the governor and the
27 general assembly a summary of all reports required under this
28 section.
29 4. The director of the economic development authority, in
30 cooperation with the department of administrative services and
31 other state agencies shall do all of the following:
32 a. Publicize the targeted small business procurement goal
33 program to targeted small businesses and to agencies of state
34 government.
35 b. Identify targeted small businesses able to perform
1 contracts under the program.
2 c. Encourage targeted small businesses to participate in the
3 program.
4 Sec. 14. REPEAL. Sections 15.246, 15.271, and 15.272, Code
5 2024, are repealed.
6 DIVISION II
7 ENERGY SHORTAGES
8 Sec. 15. Section 12.28, subsection 6, Code 2024, is amended
9 to read as follows:
10 6. The maximum principal amount of financing agreements
11 which the treasurer of state can enter into shall be one
12 million dollars per state agency in a fiscal year, subject
13 to the requirements of section 8.46. For the fiscal year,
14 the treasurer of state shall not enter into more than one
15 million dollars of financing agreements per state agency,
16 not considering interest expense. However, the treasurer
17 of state may enter into financing agreements in excess of
18 the one million dollar per agency per fiscal year limit if a
19 constitutional majority of each house of the general assembly,
20 or the legislative council if the general assembly is not in
21 session, and the governor, authorize the treasurer of state
22 to enter into additional financing agreements above the one
23 million dollar authorization contained in this section. The
24 treasurer of state shall not enter into a financing agreement
25 for real or personal property which is to be constructed for
26 use as a prison or prison-related facility without prior
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27 authorization by a constitutional majority of each house of
28 the general assembly and approval by the governor of the use,
29 location, and maximum cost, not including interest expense,
30 of the real or personal property to be financed. However,
31 financing agreements for an energy conservation measure, as
32 defined in section 7D.34, for an energy management improvement,
33 as defined in section 473.19, or for costs associated with
34 projects under section 473.13A, are exempt from the provisions
35 of this subsection, but are subject to the requirements of
1 section 7D.34. In addition, financing agreements funded
2 through the materials and equipment revolving fund established
3 in section 307.47 are exempt from the provisions of this
4 subsection.
5 Sec. 16. Section 279.53, Code 2024, is amended to read as
6 follows:
7 279.53 Loan proceeds.
8 The proceeds of loans issued to school districts pursuant to
9 section 279.48, or 279.52, or 473.20 shall be deposited into
10 either the general fund of a school district or the physical
11 plant and equipment levy fund. The board of directors shall
12 expend the amount of the principal and interest due each year
13 to maturity from the same fund into which the loan proceeds
14 were deposited.
15 Sec. 17. Section 298.3, subsection 1, paragraph g, Code
16 2024, is amended to read as follows:
17 g. Expenditures for energy conservation, including payments
18 made pursuant to a guarantee furnished by a school district
19 entering into a financing agreement for energy management
20 improvements, limited to agreements pursuant to section 473.19,
21 473.20, or 473.20A.
22 Sec. 18. Section 473.3, subsection 2, Code 2024, is amended
23 by striking the subsection.
24 Sec. 19. NEW SECTION. 473.4 Duties of the authority.
25 The authority shall do the following:
26 1. Periodically update the Iowa energy plan that identifies
27 objectives and strategies for developing the energy sector in
28 the state.
29 2. Administer and coordinate federal funds received for
30 energy conservation, energy management, and alternative and
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31 renewable energy programs.
32 3. Apply for, receive, administer, and use federal or other
33 funds available for achieving the purposes of this chapter.
34 4. Promulgate rules necessary to carry out the provisions of
35 this chapter, subject to review in accordance with chapter 17A.
1 Rules promulgated by the governor pursuant to a proclamation
2 issued under section 473.8 shall not be subject to review or a
3 public hearing as required in chapter 17A; however, authority
4 rules for implementation of the governor’s proclamation are
5 subject to the requirements of chapter 17A.
6 Sec. 20. NEW SECTION. 473.5 Energy security plan.
7 1. The governor or the governor’s designee shall maintain
8 an energy security plan.
9 2. The energy security plan shall include but is not limited
10 to the following:
11 a. A description of the circumstances that indicate an
12 actual or imminent acute shortage of usable energy, including
13 liquid fossil fuels.
14 b. Any action to be taken by the authority or relevant
15 agencies in response to an executive order by the governor
16 under section 473.8.
17 Sec. 21. Section 473.8, subsection 1, Code 2024, is amended
18 to read as follows:
19 1. If the authority by resolution determines director
20 makes a determination the health, safety, or welfare of the
21 people of this state is threatened by an actual or impending
22 acute shortage of usable energy, it shall transmit the
23 resolution the director shall provide the determination to
24 the governor together with its recommendation the director’s
25 recommendations on the declaration of an emergency by the
26 governor and recommended actions, if any, to be undertaken.
27 Within thirty days of the date of the resolution determination
28 by the director, the governor may issue a proclamation of
29 emergency which shall be filed with the secretary of state.
30 The proclamation shall state the facts relied upon and the
31 reasons for the proclamation.
32 Sec. 22. Section 473.8, subsection 2, paragraph a,
33 subparagraph (6), Code 2024, is amended to read as follows:
34 (6) Accept the delegation of the authority for other
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35 mandatory measures as allowed by under the federal Emergency
1 Energy Conservation Act of 1979, Pub. L. No. 96-102, as
2 amended.
3 Sec. 23. Section 473.10, Code 2024, is amended to read as
4 follows:
5 473.10 Reserve required.
6 1. If the authority director or the governor finds that
7 an impending or actual shortage or distribution imbalance of
8 liquid fossil fuels may cause hardship or pose a threat to the
9 health and economic well-being of the people of the state or a
10 significant segment of the state’s population, the authority
11 or the governor may authorize the director to operate a liquid
12 fossil fuel set-aside program as provided in subsection 2.
13 2. Upon authorization by the authority or the governor
14 the director may require a prime supplier to reserve a
15 specified fraction of the prime supplier’s projected total
16 monthly release of liquid fossil fuel in Iowa. The director
17 may release any or all of the fuel required to be reserved
18 by a prime supplier to end-users or to distributors for
19 release through normal retail distribution channels to retail
20 customers. However, the specified fraction required to be
21 reserved shall not exceed three percent for propane, aviation
22 fuel and residual oil, and five percent for motor gasoline,
23 heating oil, and diesel oil.
24 3. The authority director shall periodically review and
25 may terminate the operation of a set-aside program authorized
26 by the authority director under subsection 1 when the
27 authority director finds that the conditions that prompted the
28 authorization no longer exist. The governor shall periodically
29 review and may terminate the operation of a set-aside program
30 authorized by the governor under subsection 1 when the governor
31 finds that the conditions that prompted the authorization no
32 longer exist.
33 4. The authority shall adopt rules to implement this
34 section.
35 Sec. 24. REPEAL. Sections 473.7, 473.13A, 473.15, 473.19,
1 473.19A, 473.20, 473.20A, and 473.41, Code 2024, are repealed.
2 Sec. 25. TRANSFER OF MONEYS. On the effective date of this
3 division of this Act, any moneys remaining in the building
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4 energy management fund in section 473.19A, Code 2024, shall be
5 transferred to the general fund of the state.
______________________________ ______________________________
AMY SINCLAIR PAT GRASSLEY
President of the Senate Speaker of the House
I hereby certify that this bill originated in the Senate and
is known as Senate File 2289, Ninetieth General Assembly.
______________________________
W. CHARLES SMITHSON
Secretary of the Senate
Approved _______________, 2024 ______________________________
KIM REYNOLDS
Governor


Statutes affected:
Introduced: 15.106B, 15.108, 15.201, 73.15, 15.371, 73.16, 7D.34, 29C.6, 473.5, 279.48, 323A.2, 473.1, 473.3
Reprinted: 15.106B, 1