House File 2697 - Introduced
HOUSE FILE 2697
BY COMMITTEE ON APPROPRIATIONS
(SUCCESSOR TO LSB 5002HB)
A BILL FOR
1 An Act relating to and making appropriations for the economic
2 development of the state, including to the economic
3 development authority, the Iowa finance authority, the
4 public employment relations board, the department of
5 workforce development, and the state board of regents and
6 certain regents institutions, and providing for properly
7 related matters including membership in councils of
8 governments.
9 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
TLSB 5002HV (2) 90
ko/ns
 H.F. 2697
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.
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.
LSB 5002HV (2) 90
-1- ko/ns 1/19
 H.F. 2697
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 115.50
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.
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
LSB 5002HV (2) 90
-2- ko/ns 2/19
 H.F. 2697
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
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
LSB 5002HV (2) 90
-3- ko/ns 3/19
 H.F. 2697
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 4. WORLD FOOD PRIZE
8 In lieu of the standing appropriation in section 15.368,
9 there is appropriated from the general fund of the state to the
10 economic development authority for the fiscal year beginning
11 July 1, 2024, and ending June 30, 2025, the following amount
12 for the world food prize:
13 .................................................. $ 750,000
14 5. COUNCILS OF GOVERNMENTS —— ASSISTANCE
15 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 amount to be used for the purposes of providing financial
19 assistance to Iowa’s councils of governments:
20 .................................................. $ 400,000
21 6. TOURISM OFFICE
22 a. There is appropriated from the general fund of the state
23 to the economic development authority for the fiscal year
24 beginning July 1, 2024, and ending June 30, 2025, the following
25 amount for the tourism office to be used for advertising,
26 promoting, placement, and implementation of the economic
27 development authority’s strategic plan for tourism and travel:
28 .................................................. $ 1,100,000
29 b. Notwithstanding section 8.33, moneys appropriated in
30 this subsection that remain unencumbered or unobligated at the
31 close of the fiscal year shall not revert but shall remain
32 available for expenditure for the purposes designated until the
33 close of the succeeding fiscal year.
34 c. The economic development authority shall submit an
35 annual report on or before January 15 to the general assembly
LSB 5002HV (2) 90
-4- ko/ns 4/19
 H.F. 2697
1 regarding the tourism office’s activities funded with moneys
2 appropriated under this subsection. The report shall be
3 provided in an electronic format and shall include metrics
4 and criteria that allow the general assembly to quantify
5 and evaluate the effectiveness and economic impact of the
6 tourism office’s activities related to advertising, promoting,
7 placement, and implementation of the economic development
8 authority’s strategic plan for tourism and travel.
9 7. CULTURAL AFFAIRS ACTIVITIES
10 a. There is appropriated from the general fund of the state
11 to the economic development authority 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) For planning and programming for the community cultural
16 grants program established under section 15.436:
17 .................................................. $ 172,090
18 (2) For support of the Iowa arts council:
19 .................................................. $ 1,450,000
20 Of the moneys appropriated in this subparagraph, the
21 authority shall allocate $300,000 for purposes of the film
22 office.
23 (3) For the Iowa great places program established under
24 section 15.439:
25 .................................................. $ 149,710
26 (4) For grant programs administered by the Iowa arts
27 council including those programs supporting the long-term
28 financial stability and sustainability of nonprofit cultural
29 organizations:
30 .................................................. $ 150,000
31 b. Notwithstanding section 8.33, moneys appropriated in
32 this subsection that remain unencumbered or unobligated at the
33 close of the fiscal year shall not revert but shall remain
34 available for expenditure for the purposes designated until the
35 close of the succeeding fiscal year.
LSB 5002HV (2) 90
-5- ko/ns 5/19
 H.F. 2697
1 Sec. 3. LIMITATIONS OF STANDING APPROPRIATIONS —— FY
2 2024-2025. Notwithstanding the standing appropriations
3 in the following designated sections for the fiscal year
4 beginning July 1, 2024, and ending June 30, 2025, the amounts
5 appropriated from the general fund of the state pursuant to
6 those sections for the following purposes shall not exceed the
7 following amounts:
8 1. For operational support grants and community cultural
9 grants under section 99F.11, subsection 4, paragraph “d”,
10 subparagraph (1):
11 .................................................. $ 448,403
12 2. For the purposes of tourism marketing under section
13 99F.11, subsection 4, paragraph “d”, subparagraph (2):
14 .................................................. $ 1,443,700
15 Sec. 4. FINANCIAL ASSISTANCE REPORTING —— ECONOMIC
16 DEVELOPMENT AUTHORITY. The economic development authority
17 shall submit an annual report to the general assembly no later
18 than November 1, 2024, that details the amount of every direct
19 loan, forgivable loan, tax credit, tax exemption, tax refund,
20 grant, or any other financial assistance awarded to a person
21 during the prior fiscal year by the authority under an economic
22 development program administered by the authority. The report
23 shall identify the county where the project associated with
24 each such award is located.
25 Sec. 5. INSURANCE ECONOMIC DEVELOPMENT. From the moneys
26 collected by the insurance division of the department of
27 insurance and financial services in excess of the anticipated
28 gross revenues under section 505.7, subsection 3, during
29 the fiscal year beginning July 1, 2024, $100,000 shall be
30 transferred to the economic development authority for insurance
31 economic development and international insurance economic
32 development.
33 Sec. 6. IOWA FINANCE AUTHORITY.
34 1. There is appropriated from the general fund of the state
35 to the Iowa finance authority for the fiscal year beginning
LSB 5002HV (2) 90
-6- ko/ns 6/19
 H.F. 2697
1 July 1, 2024, and ending June 30, 2025, the following amounts,
2 or so much thereof as is necessary, to be used for the purposes
3 designated:
4 a. Rent subsidy program
5 (1) To provide reimbursement for rent expenses to eligible
6 persons under the home and community-based services rent
7 subsidy program established in section 16.55:
8 .................................................. $ 873,000
9 (2) Of the moneys appropriated in this paragraph, not more
10 than $35,000 may be used for administrative costs.
11 b. Housing renewal pilot program
12 To provide housing renewal moneys to a nonprofit Iowa
13 affiliate to award grants to eligible communities for a housing
14 renewal pilot program:
15 .................................................. $ 600,000
16 2. Notwithstanding section 8.33, moneys appropriated in
17 this section that remain unencumbered or unobligated at the
18 close of the fiscal year shall not revert but shall remain
19 available for expenditure for the purposes designated until the
20 close of the succeeding fiscal year.
21 Sec. 7. IOWA FINANCE AUTHORITY AUDIT. The auditor of state
22 is requested to review the audit of the Iowa finance authority
23 performed by the auditor hired by the authority.
24 Sec. 8. PUBLIC EMPLOYMENT RELATIONS BOARD.
25 1. There is appropriated from the general fund of the state
26 to the public employment relations board for the fiscal year
27 beginning July 1, 2024, and ending June 30, 2025, the following
28 amount, or so much thereof as is necessary, to be used for the
29 purposes designated:
30 For salaries, support, maintenance, and miscellaneous
31 purposes, and for not more than the following full-time
32 equivalent positions:
33 .................................................. $ 1,296,403
34 ............................................... FTEs 5.00
35 2. Of the moneys appropriated in this section, the board
LSB 5002HV (2) 90
-7- ko/ns 7/19
 H.F. 2697
1 shall allocate $15,000 for maintaining an internet site that
2 allows access to a searchable database of collective bargaining
3 information.
4 Sec. 9. DEPARTMENT OF WORKFORCE DEVELOPMENT. There
5 is appropriated from the general fund of the state to the
6 department of workforce development for the fiscal year
7 beginning July 1, 2024, and ending June 30, 2025, the following
8 amounts, or so much thereof as is necessary, to be used for the
9 purposes designated:
10 1. WORKFORCE DEVELOPMENT OPERATIONS
11 a. For the operation of field offices and the workforce
12 development board, and for not more than the following
13 full-time equivalent positions:
14 .................................................. $ 6,902,636
15 ............................................... FTEs 173.37
16 b. Of the moneys appropriated in paragraph “a”, the
17 department shall allocate $150,000 to the state library for the
18 purpose of licensing an online resource which prepares persons
19 to succeed in the workplace through programs which improve job
20 skills and vocational test-taking abilities.
21 2. OFFENDER REENTRY PROGRAM
22 a. For the development and administration of an offender
23 reentry program to provide offenders with employment skills,
24 and for not more than the following full-time equivalent
25 positions:
26 .................................................. $ 387,158
27 ............................................... FTEs 5.00
28 b. The department of workforce development shall partner
29 with the departme