Senate File 2432 - Enrolled Senate File 2432 AN ACT RELATING TO AND MAKING APPROPRIATIONS FOR THE ECONOMIC DEVELOPMENT OF THE STATE, INCLUDING TO THE ECONOMIC DEVELOPMENT AUTHORITY, THE IOWA FINANCE AUTHORITY, THE PUBLIC EMPLOYMENT RELATIONS BOARD, THE DEPARTMENT OF WORKFORCE DEVELOPMENT, AND THE STATE BOARD OF REGENTS AND CERTAIN REGENTS INSTITUTIONS. 7 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 1 DIVISION I 2 FY 2024–2025 APPROPRIATIONS 3 Section 1. GOALS AND ACCOUNTABILITY —— ECONOMIC 4 DEVELOPMENT. 5 1. For the fiscal year beginning July 1, 2024, the goals 6 for the economic development authority shall be to expand and 7 stimulate the state economy, increase the wealth of Iowans, and 8 increase the population of the state. 9 2. To achieve the goals in subsection 1, the economic 10 development authority shall do all of the following for the 11 fiscal year beginning July 1, 2024: 12 a. Concentrate its efforts on programs and activities that 13 result in commercially viable products and services. 14 b. Adopt practices and services consistent with free 15 market, private sector philosophies. 16 c. Ensure economic growth and development throughout the 17 state. Senate File 2432, p. 2 18 d. Work with businesses and communities to continually 19 improve the economic development climate along with the 20 economic well-being and quality of life for Iowans. 21 e. Coordinate with other state agencies to ensure that they 22 are attentive to the needs of an entrepreneurial culture. 23 f. Establish a strong and aggressive marketing image to 24 showcase Iowa’s workforce, existing industry, and potential. 25 A priority shall be placed on recruiting new businesses, 26 business expansion, and retaining existing Iowa businesses. 27 Emphasis shall be placed on entrepreneurial development through 28 helping entrepreneurs secure capital, and developing networks 29 and a business climate conducive to entrepreneurs and small 30 businesses. 31 g. Encourage the development of communities and quality of 32 life to foster economic growth. 33 h. Prepare communities for future growth and development 34 through development, expansion, and modernization of 35 infrastructure. 1 i. Develop public-private partnerships with Iowa businesses 2 in the tourism industry, Iowa tour groups, Iowa tourism 3 organizations, and political subdivisions in this state to 4 assist in the development of advertising efforts. 5 Sec. 2. ECONOMIC DEVELOPMENT AUTHORITY. 6 1. APPROPRIATION 7 a. There is appropriated from the general fund of the state 8 to the economic development authority for the fiscal year 9 beginning July 1, 2024, and ending June 30, 2025, the following 10 amount, or so much thereof as is necessary, to be used for the 11 purposes designated in this subsection, and for not more than 12 the following full-time equivalent positions: 13 .................................................. $ 12,921,510 14 ............................................... FTEs 112.50 15 b. (1) For salaries, support, miscellaneous purposes, 16 programs, marketing, administration, business development, 17 community development, small business development, and any 18 divisions the authority may organize. 19 (2) For business development operations and programs, 20 international trade, export assistance, workforce recruitment, 21 and the partner state program. Senate File 2432, p. 3 22 (3) For transfer to a fund created pursuant to section 23 15.313 for purposes of financing strategic infrastructure 24 projects. 25 (4) For community economic development programs, tourism 26 operations, community assistance, and the community development 27 block grant. 28 (5) For achieving the goals and accountability, and 29 fulfilling the requirements and duties required under this Act. 30 (6) The full-time equivalent positions authorized under 31 this section are funded, in whole or in part, by the moneys 32 appropriated under this subsection or by other moneys received 33 by the authority, including certain federal moneys. 34 c. Notwithstanding section 8.33, moneys appropriated in 35 this subsection that remain unencumbered or unobligated at the 1 close of the fiscal year shall not revert but shall remain 2 available for expenditure for the purposes designated in this 3 subsection until the close of the succeeding fiscal year. 4 2. FINANCIAL ASSISTANCE RESTRICTIONS 5 a. A business creating jobs through moneys appropriated in 6 subsection 1 shall be subject to contract provisions requiring 7 new and retained jobs to be filled by individuals who are 8 citizens of the United States who reside within the United 9 States, or any person authorized to work in the United States 10 pursuant to federal law, including legal resident aliens 11 residing in the United States. 12 b. Any vendor who receives moneys appropriated in 13 subsection 1 shall adhere to such contract provisions and 14 provide periodic assurances as the state shall require that the 15 jobs are filled solely by citizens of the United States who 16 reside within the United States, or any person authorized to 17 work in the United States, pursuant to federal law, including 18 legal resident aliens residing in the United States. 19 c. A business that receives financial assistance from 20 the authority from moneys appropriated in subsection 1 shall 21 only employ individuals legally authorized to work in this 22 state. In addition to all other applicable penalties provided 23 by current law, all or a portion of the assistance received 24 by a business which is found to knowingly employ individuals 25 not legally authorized to work in this state is subject to Senate File 2432, p. 4 26 recapture by the authority. 27 3. USES OF APPROPRIATIONS 28 a. From the moneys appropriated in subsection 1, the 29 authority may provide financial assistance in the form of a 30 grant to a community economic development entity for conducting 31 a local workforce recruitment effort designed to recruit former 32 citizens of the state and former students at colleges and 33 universities in the state to meet the needs of local employers. 34 b. From the moneys appropriated in subsection 1, the 35 authority may provide financial assistance to early stage 1 industry companies being established by women entrepreneurs. 2 c. From the moneys appropriated in subsection 1, the 3 authority may provide financial assistance in the form of 4 grants, loans, or forgivable loans for advanced research and 5 commercialization projects involving value-added agriculture, 6 advanced technology, or biotechnology. 7 d. The authority shall not use any moneys appropriated in 8 subsection 1 for purposes of providing financial assistance 9 for any program or project that involves the installation of 10 geothermal systems for melting snow and ice from streets or 11 sidewalks. 12 4. WORLD FOOD PRIZE 13 In lieu of the standing appropriation in section 15.368, 14 there is appropriated from the general fund of the state to the 15 economic development authority for the fiscal year beginning 16 July 1, 2024, and ending June 30, 2025, the following amount 17 for the world food prize: 18 .................................................. $ 650,000 19 5. COUNCILS OF GOVERNMENTS —— ASSISTANCE 20 There is appropriated from the general fund of the state 21 to the economic development authority for the fiscal year 22 beginning July 1, 2024, and ending June 30, 2025, the following 23 amount to be used for the purposes of providing financial 24 assistance to Iowa’s councils of governments: 25 .................................................. $ 350,000 26 6. TOURISM OFFICE 27 a. There is appropriated from the general fund of the state 28 to the economic development authority for the fiscal year 29 beginning July 1, 2024, and ending June 30, 2025, the following Senate File 2432, p. 5 30 amount for the tourism office to be used for advertising, 31 promoting, placement, and implementation of the economic 32 development authority’s strategic plan for tourism and travel: 33 .................................................. $ 1,100,000 34 b. Notwithstanding section 8.33, moneys appropriated in 35 this subsection that remain unencumbered or unobligated at the 1 close of the fiscal year shall not revert but shall remain 2 available for expenditure for the purposes designated until the 3 close of the succeeding fiscal year. 4 c. The economic development authority shall submit an 5 annual report on or before January 15 to the general assembly 6 regarding the tourism office’s activities funded with moneys 7 appropriated under this subsection. The report shall be 8 provided in an electronic format and shall include metrics 9 and criteria that allow the general assembly to quantify 10 and evaluate the effectiveness and economic impact of the 11 tourism office’s activities related to advertising, promoting, 12 placement, and implementation of the economic development 13 authority’s strategic plan for tourism and travel. 14 7. CULTURAL AFFAIRS ACTIVITIES 15 a. There is appropriated from the general fund of the state 16 to the economic development authority for the fiscal year 17 beginning July 1, 2024, and ending June 30, 2025, the following 18 amounts, or so much thereof as is necessary, to be used for the 19 purposes designated: 20 (1) For planning and programming for the community cultural 21 grants program established under section 15.436: 22 .................................................. $ 172,090 23 (2) For support of the Iowa arts council: 24 .................................................. $ 1,450,000 25 Of the moneys appropriated in this subparagraph, the 26 authority shall allocate $300,000 for purposes of the film 27 office. 28 (3) For the Iowa great places program established under 29 section 15.439: 30 .................................................. $ 149,710 31 (4) For grant programs administered by the Iowa arts 32 council including those programs supporting the long-term 33 financial stability and sustainability of nonprofit cultural Senate File 2432, p. 6 34 organizations: 35 .................................................. $ 150,000 1 b. Notwithstanding section 8.33, moneys appropriated in 2 this subsection that remain unencumbered or unobligated at the 3 close of the fiscal year shall not revert but shall remain 4 available for expenditure for the purposes designated until the 5 close of the succeeding fiscal year. 6 Sec. 3. LIMITATIONS OF STANDING APPROPRIATIONS —— FY 7 2024-2025. Notwithstanding the standing appropriations 8 in the following designated sections for the fiscal year 9 beginning July 1, 2024, and ending June 30, 2025, the amounts 10 appropriated from the general fund of the state pursuant to 11 those sections for the following purposes shall not exceed the 12 following amounts: 13 1. For operational support grants and community cultural 14 grants under section 99F.11, subsection 4, paragraph “d”, 15 subparagraph (1): 16 .................................................. $ 448,403 17 2. For the purposes of tourism marketing under section 18 99F.11, subsection 4, paragraph “d”, subparagraph (2): 19 .................................................. $ 1,443,700 20 Sec. 4. FINANCIAL ASSISTANCE REPORTING —— ECONOMIC 21 DEVELOPMENT AUTHORITY. The economic development authority 22 shall submit an annual report to the general assembly no later 23 than November 1, 2024, that details the amount of every direct 24 loan, forgivable loan, tax credit, tax exemption, tax refund, 25 grant, or any other financial assistance awarded to a person 26 during the prior fiscal year by the authority under an economic 27 development program administered by the authority. The report 28 shall identify the county where the project associated with 29 each such award is located. 30 Sec. 5. INSURANCE ECONOMIC DEVELOPMENT. From the moneys 31 collected by the insurance division of the department of 32 insurance and financial services in excess of the anticipated 33 gross revenues under section 505.7, subsection 3, during 34 the fiscal year beginning July 1, 2024, $100,000 shall be 35 transferred to the economic development authority for insurance 1 economic development and international insurance economic 2 development. Senate File 2432, p. 7 3 Sec. 6. IOWA FINANCE AUTHORITY. 4 1. There is appropriated from the general fund of the state 5 to the Iowa finance authority for the fiscal year beginning 6 July 1, 2024, and ending June 30, 2025, the following amounts, 7 or so much thereof as is necessary, to be used for the purposes 8 designated: 9 a. Rent subsidy program 10 (1) To provide reimbursement for rent expenses to eligible 11 persons under the home and community-based services rent 12 subsidy program established in section 16.55: 13 .................................................. $ 873,000 14 (2) Of the moneys appropriated in this paragraph, not more 15 than $35,000 may be used for administrative costs. 16 b. Housing renewal pilot program 17 To provide housing renewal moneys to a nonprofit Iowa 18 affiliate to award grants to eligible communities for a housing 19 renewal pilot program: 20 .................................................. $ 550,000 21 2. Notwithstanding section 8.33, moneys appropriated in 22 this section that remain unencumbered or unobligated at the 23 close of the fiscal year shall not revert but shall remain 24 available for expenditure for the purposes designated until the 25 close of the succeeding fiscal year. 26 Sec. 7. IOWA FINANCE AUTHORITY AUDIT. The auditor of state 27 is requested to review the audit of the Iowa finance authority 28 performed by the auditor hired by the authority. 29 Sec. 8. PUBLIC EMPLOYMENT RELATIONS BOARD. 30 1. There is appropriated from the general fund of the state 31 to the public employment relations board for the fiscal year 32 beginning July 1, 2024, and ending June 30, 2025, the following 33 amount, or so much thereof as is necessary, to be used for the 34 purposes designated: 35 For salaries, support, maintenance, and miscellaneous 1 purposes, and for not more than the following full-time 2 equivalent positions: 3 .................................................. $ 1,296,403 4 ............................................... FTEs 9.00 5 2. Of the moneys appropriated in this section, the board 6 shall allocate $15,000 for maintaining an internet site that Senate File 2432, p. 8 7 allows access to a searchable database of collective bargaining 8 information. 9 Sec. 9. DEPARTMENT OF WORKFORCE DEVELOPMENT. There 10 is appropriated from the general fund of the state to the 11 department of workforce development for the fiscal year 12 beginning July 1, 2024, and ending June 30, 2025, the following 13 amounts, or so much thereof as is necessary, to be used for the 14 purposes designated: 15 1. WORKFORCE DEVELOPMENT OPERATIONS 16 a. For the operation of field offices and the workforce 17 development board, and for not more than the following 18 full-time equivalent positions: 19 .................................................. $ 6,902,636 20 ............................................... FTEs 166.41 21 b. Of the moneys appropriated in paragraph “a”, the 22 department shall allocate $150,000 to the state library for the 23 purpose of licensing an online resource which prepares persons 24 to succeed in the workplace through programs which improve job 25 skills and vocational test-taking abilities. 26 2. OFFENDER REENTRY PROGRAM 27 a. For the development and administration of an offender 28 reentry program to provide offenders with employment skills, 29 and for not more than the following full-time equivalent 30 positions: 31 .................................................. $ 387,158 32 ............................................... FTEs 5.00 33 b. The department of workforce development shall partner 34 with the department of corrections to provide staff within 35 the correctional facilities resources to improve offenders’ 1 abilities to find and retain productive employment. 2 3. INTEGRATED INFORMATION FOR IOWA SYSTEM 3 For the payment of services provided by the department of 4 administrative services related to the integrated information 5 for Iowa system: 6 .................................................. $ 228,822 7 4. WORKPLACE INJURY AND SAFETY SURVEYS 8 For the operation of workplace safety surveys and workplace 9 data collection and analysis, including salaries, support, 10 maintenance, and miscellaneous purposes, and for not more than Senate File 2432, p. 9 11 the following full-time equivalent positions: