House File 2450 - Introduced
HOUSE FILE 2450
BY COMMITTEE ON ECONOMIC
GROWTH AND TECHNOLOGY
(SUCCESSOR TO HSB 622)
A BILL FOR
1 An Act relating to economic development and energy shortages
2 under the purview of the economic development authority and
3 governor, and providing penalties.
4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
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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:
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. The authority shall adopt rules as necessary pursuant to
33 chapter 17A to administer this section.
34 Sec. 3. Section 15.108, subsection 2, Code 2024, is amended
35 by striking the subsection and inserting in lieu thereof the
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1 following:
2 2. Marketing. To aid in all of the following:
3 a. The marketing and promotion of Iowa products and
4 services.
5 b. The promotion and development of the agricultural
6 processing industry in the state.
7 Sec. 4. Section 15.108, subsection 3, paragraph a,
8 subparagraph (5), Code 2024, is amended to read as follows:
9 (5) Encourage cities, counties, local and regional
10 government organizations, and local and regional economic
11 development organizations to develop and implement
12 comprehensive community and economic development plans. In
13 evaluating financial assistance applications, the authority
14 shall award supplementary credit to applications submitted by
15 cities, counties, local and regional government organizations,
16 and local and regional economic development organizations
17 that have developed a comprehensive community and economic
18 development plan.
19 Sec. 5. Section 15.108, subsection 4, Code 2024, is amended
20 by striking the subsection and inserting in lieu thereof the
21 following:
22 4. Exporting. To promote and aid in the marketing and
23 sale of Iowa industrial and agricultural products and services
24 outside of the state. To carry out this responsibility, the
25 authority shall:
26 a. Perform the duties and activities specified for the
27 agricultural marketing program under sections 15.201 and
28 15.202.
29 b. Seek assistance and advice from the Iowa district export
30 council which advises the United States department of commerce.
31 Sec. 6. Section 15.108, subsection 5, paragraph d, Code
32 2024, is amended to read as follows:
33 d. Coordinate with other divisions of the authority to add
34 Promote the contributions of Iowa’s recreation, tourism, and
35 leisure resources to the agricultural and other images which
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1 characterize the state on a national level.
2 Sec. 7. Section 15.108, subsection 5, paragraph o, Code
3 2024, is amended by striking the paragraph.
4 Sec. 8. Section 15.108, subsection 6, paragraph c, Code
5 2024, is amended by striking the paragraph and inserting in
6 lieu thereof the following:
7 c. Provide aid for the development and implementation of
8 the Iowa targeted small business procurement Act established in
9 sections 73.15 through 73.22.
10 Sec. 9. Section 15.108, subsection 6, paragraphs f and g,
11 Code 2024, are amended by striking the paragraphs.
12 Sec. 10. Section 15.108, subsection 7, Code 2024, is amended
13 by striking the subsection.
14 Sec. 11. Section 15.108, subsection 10, paragraph b,
15 subparagraph (3), Code 2024, is amended to read as follows:
16 (3) Establish programs which assist communities or local
17 entities in developing housing to meet a range of community
18 needs, including programs to assist homeless shelter operations
19 and programs to assist in the development of housing to enhance
20 economic development opportunities in the community.
21 Sec. 12. Section 15.371, subsection 5, paragraph e, Code
22 2024, is amended to read as follows:
23 e. Employ a minimum of three full-time employees and no more
24 than seventy-five one hundred twenty-five full-time employees
25 across all of the manufacturer’s locations.
26 Sec. 13. NEW SECTION. 73.22 Reports.
27 1. By December 1 of each calendar year, the department of
28 administrative services shall provide a written summary to the
29 economic development authority of all activities undertaken
30 by the department of administrative services to maximize the
31 purposes of this subchapter during the immediately preceding
32 fiscal year.
33 2. By December 1 of each calendar year, the economic
34 development authority shall compile a list of the procurement
35 goals established pursuant to section 73.16, subsection 2, for
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1 the prior fiscal year, and the performance of each agency or
2 department of state government having purchasing authority in
3 meeting the goals. The compilation shall be based upon the
4 reports required to be filed under section 73.16, subsection 2.
5 3. By January 15 of each calendar year, the economic
6 development authority shall submit to the governor and the
7 general assembly a summary of all reports required under this
8 section.
9 4. The director of the economic development authority, in
10 cooperation with the department of administrative services and
11 other state agencies shall do all of the following:
12 a. Publicize the targeted small business procurement goal
13 program to targeted small businesses and to agencies of state
14 government.
15 b. Identify targeted small businesses able to perform
16 contracts under the program.
17 c. Encourage targeted small businesses to participate in the
18 program.
19 Sec. 14. REPEAL. Sections 15.246, 15.271, and 15.272, Code
20 2024, are repealed.
21 DIVISION II
22 ENERGY SHORTAGES
23 Sec. 15. Section 12.28, subsection 6, Code 2024, is amended
24 to read as follows:
25 6. The maximum principal amount of financing agreements
26 which the treasurer of state can enter into shall be one
27 million dollars per state agency in a fiscal year, subject
28 to the requirements of section 8.46. For the fiscal year,
29 the treasurer of state shall not enter into more than one
30 million dollars of financing agreements per state agency,
31 not considering interest expense. However, the treasurer
32 of state may enter into financing agreements in excess of
33 the one million dollar per agency per fiscal year limit if a
34 constitutional majority of each house of the general assembly,
35 or the legislative council if the general assembly is not in
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1 session, and the governor, authorize the treasurer of state
2 to enter into additional financing agreements above the one
3 million dollar authorization contained in this section. The
4 treasurer of state shall not enter into a financing agreement
5 for real or personal property which is to be constructed for
6 use as a prison or prison-related facility without prior
7 authorization by a constitutional majority of each house of
8 the general assembly and approval by the governor of the use,
9 location, and maximum cost, not including interest expense,
10 of the real or personal property to be financed. However,
11 financing agreements for an energy conservation measure, as
12 defined in section 7D.34, for an energy management improvement,
13 as defined in section 473.19, or for costs associated with
14 projects under section 473.13A, are exempt from the provisions
15 of this subsection, but are subject to the requirements of
16 section 7D.34. In addition, financing agreements funded
17 through the materials and equipment revolving fund established
18 in section 307.47 are exempt from the provisions of this
19 subsection.
20 Sec. 16. Section 29C.2, Code 2024, is amended by adding the
21 following new subsections:
22 NEW SUBSECTION. 4A. “Energy” or “energy sources” means the
23 same as defined in section 473.1.
24 NEW SUBSECTION. 5A. “Liquid fossil fuel” means heating
25 oil, diesel oil, motor gasoline, propane, residual fuel oil,
26 kerosene, and aviation fuel.
27 NEW SUBSECTION. 7A. “Prime supplier” means an individual,
28 trustee, agency, partnership, association, corporation,
29 company, municipality, political subdivision, or other legal
30 entity that makes the first sale of liquid fossil fuel into the
31 state distribution system for consumption within the state.
32 Sec. 17. Section 29C.6, Code 2024, is amended by adding the
33 following new subsection:
34 NEW SUBSECTION. 18. a. Determine that an actual acute
35 shortage of usable energy has occurred or is imminent based
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1 upon circumstances indicated in the state energy security plan
2 created in section 473.5, or in response to a declaration of
3 a severe energy supply interruption by the president of the
4 United States under the federal Emergency Energy Conservation
5 Act of 1979, Pub. L. No. 96-102, as amended. Upon such a
6 determination, the governor may do any of the following by
7 proclamation:
8 (1) Regulate the operating hours of agencies and
9 instrumentalities of state government, political subdivisions,
10 private institutions, and business facilities that consume
11 energy to the extent the regulation is not hazardous or
12 detrimental to the health, safety, or welfare of the people of
13 this state. However, the governor shall not have authority to
14 suspend, amend, or nullify any service provided by a public
15 utility, as defined in section 476.1, if the public utility
16 is providing such service pursuant to an order or rule of a
17 federal agency which has jurisdiction over the public utility.
18 The governor shall also not have authority to suspend,
19 amend, or nullify any service provided by a public utility,
20 as defined in section 476.1, when the public utility has a
21 contractual or tariff obligation pursuant to the tariff of a
22 federally-approved regional transmission organization.
23 (2) Establish a system for the distribution and supply
24 of energy. The system shall not include a coupon rationing
25 program, unless the coupon rationing program is federally
26 mandated.
27 (3) Curtail public and private transportation utilizing
28 energy. Curtailment may include measures designed to promote
29 the use of carpools and mass transit systems.
30 (4) Accept the delegation of authority for other mandatory
31 measures under the federal Emergency Energy Conservation Act of
32 1979, Pub. L. No. 96-102, as amended.
33 (5) Require a prime supplier to reserve a specified fraction
34 of the prime supplier’s projected total monthly release of
35 liquid fossil fuel into the state distribution system. The
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1 governor or the governor’s designee may release any or all
2 of the fuel required to be reserved by a prime supplier
3 to end-users or to distributors for release through normal
4 retail distribution channels. However, the specified fraction
5 required to be reserved shall not exceed three percent for
6 propane, aviation fuel, and residual fuel oil, and five percent
7 for motor gasoline, heating oil, and diesel oil.
8 b. A person who violates paragraph “a” commits a simple
9 misdemeanor punishable as a scheduled violation pursuant to
10 section 805.8C, subsection 1. If the violation is continuous
11 and stationary in its nature and subsequent compliance can
12 easily be ascertained, an officer may issue a memorandum of
13 warning in lieu of a citation providing a reasonable amount of
14 time not exceeding fourteen days to correct the violation and
15 to comply with the requirements of the proclamation.
16 Sec. 18. Section 279.53, Code 2024, is amended to read as
17 follows:
18 279.53 Loan proceeds.
19 The proceeds of loans issued to school districts pursuant to
20 section 279.48, or 279.52, or 473.20 shall be deposited into
21 either the general fund of a school district or the physical
22 plant and equipment levy fund. The board of directors shall
23 expend the amount of the principal and interest due each year
24 to maturity from the same fund into which the loan proceeds
25 were deposited.
26 Sec. 19. Section 298.3, subsection 1, paragraph g, Code
27 2024, is amended to read as follows:
28 g. Expenditures for energy conservation, including payments
29 made pursuant to a guarantee furnished by a school district
30 entering into a financing agreement for energy management
31 improvements, limited to agreements pursuant to section 473.19,
32 473.20, or 473.20A.
33 Sec. 20. Section 323A.2, subsection 1, paragraph c, Code
34 2024, is amended to read as follows:
35 c. The director of the economic development authority
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1 determines that the franchisee has demonstrated that a special
2 hardship exists in the community served by the franchisee
3 relating to the public health, safety, and welfare, as
4 specified under the rules of the authority.
5 Sec. 21. Section 473.1, subsection 3, Code 2024, is amended
6 by striking the subsection.
7 Sec. 22. Section 473.3, subsection 2, Code 2024, is amended
8 by striking the subsection.
9 Sec. 23. NEW SECTION. 473.4 Duties of the authority.
10 The authority shall do the following:
11 1. Periodically update the Iowa energy plan that identifies
12 objectives and strategies for developing the energy sector in
13 the state.
14 2. Administer and coordinate federal funds received for
15 energy conservation, energy management, and alternative and
16 renewable energy programs.
17 3. Apply for, receive, administer, and use federal or other
18 funds available for achieving the purposes of this chapter.
19 Sec. 24. NEW SECTION. 473.5 Energy security plan.
20 1. The governor or the governor’s designee shall maintain
21 an energy security plan.
22 2. The energy security plan shall include but is not limited
23 to the following:
24 a. A description of the circumstances that indicate an
25 actual or imminent acute shortage of usable energy, including
26 liquid fossil fuels.
27 b. Any action to be taken by the authority or relevant
28 agencies in response to a proclamation issued pursuant to
29 section 29C.6, subsection 18.
30 Sec. 25. Section 805.8C, subsection 1, Code 2024, is amended
31 to read as follows:
32 1. Energy emergency violations. For violations of an
33 executive order issued a proclamation by the governor under the
34 provisions of section 473.8 section 29C.6, subsection 18, the
35 scheduled fine is seventy dollars.
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