Iowa House Bill HF2450

Iowa 2023-2024 Regular Session

• Introduced: 2/12/24

Caption

A bill for an act relating to economic development and energy shortages under the purview of the economic development authority and governor, and providing penalties.(Formerly HSB 622.)

Impact

The bill rescinds various provisions tied to economic development programs, including assistance to local governments and community development plans. This could lead to reduced support for smaller entities needing guidance on managing their economic growth initiatives. Moreover, it simplifies how the economic development authority evaluates applications for financial aid and vendor selection by eliminating previously mandated supplementary credits for community plans, potentially disadvantaging local organizations in the application process.

Summary

House File 2450, enacted to address issues of economic development and energy shortages in Iowa, introduces significant changes to existing authority regulations. The bill outlines the powers of the economic development authority and the governor, granting the latter greater control over managing energy shortages and significantly modifying the authority's mandate to aid economic growth. A notable alteration is the removal of requirements for establishing a federal procurement office and for marketing Iowa products, which could impact local businesses reliant on these initiatives.

Contention

A prominent point of contention surrounds the bill's amendment of existing powers relating to energy management. The governor is provided expansive authority to declare energy shortages and manage state resources without the prior requirement of consultation with the economic development authority. Critics argue this could lead to overreach and ineffective management of energy resources, potentially detrimentally affecting business operations during a shortage. Overall, the bill's impact on local control, particularly in economic planning and emergency measures, has raised concerns regarding the balance of power between state and community leadership.