House File 725 - Introduced HOUSE FILE 725 BY COMMITTEE ON APPROPRIATIONS (SUCCESSOR TO HSB 249) A BILL FOR An Act relating to and making appropriations for the economic 1 development of the state, including to the economic 2 development authority, the Iowa finance authority, the 3 public employment relations board, the department of 4 workforce development, and the state board of regents and 5 certain regents institutions, and by modifying provisions 6 relating to the pathways for academic career and employment 7 program, the apprenticeship training program, and new jobs 8 training agreements. 9 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 10 TLSB 1002HV (2) 90 ko/ns
H.F. 725 DIVISION I 1 FY 2023-2024 APPROPRIATIONS 2 Section 1. GOALS AND ACCOUNTABILITY ECONOMIC 3 DEVELOPMENT. 4 1. For the fiscal year beginning July 1, 2023, the goals 5 for the economic development authority shall be to expand and 6 stimulate the state economy, increase the wealth of Iowans, and 7 increase the population of the state. 8 2. To achieve the goals in subsection 1, the economic 9 development authority shall do all of the following for the 10 fiscal year beginning July 1, 2023: 11 a. Concentrate its efforts on programs and activities that 12 result in commercially viable products and services. 13 b. Adopt practices and services consistent with free 14 market, private sector philosophies. 15 c. Ensure economic growth and development throughout the 16 state. 17 d. Work with businesses and communities to continually 18 improve the economic development climate along with the 19 economic well-being and quality of life for Iowans. 20 e. Coordinate with other state agencies to ensure that they 21 are attentive to the needs of an entrepreneurial culture. 22 f. Establish a strong and aggressive marketing image to 23 showcase Iowas workforce, existing industry, and potential. 24 A priority shall be placed on recruiting new businesses, 25 business expansion, and retaining existing Iowa businesses. 26 Emphasis shall be placed on entrepreneurial development through 27 helping entrepreneurs secure capital, and developing networks 28 and a business climate conducive to entrepreneurs and small 29 businesses. 30 g. Encourage the development of communities and quality of 31 life to foster economic growth. 32 h. Prepare communities for future growth and development 33 through development, expansion, and modernization of 34 infrastructure. 35 -1- LSB 1002HV (2) 90 ko/ns 1/ 24
H.F. 725 i. Develop public-private partnerships with Iowa businesses 1 in the tourism industry, Iowa tour groups, Iowa tourism 2 organizations, and political subdivisions in this state to 3 assist in the development of advertising efforts. 4 j. Develop, to the fullest extent possible, cooperative 5 efforts for advertising with contributions from other sources. 6 Sec. 2. ECONOMIC DEVELOPMENT AUTHORITY. 7 1. APPROPRIATION 8 a. There is appropriated from the general fund of the state 9 to the economic development authority for the fiscal year 10 beginning July 1, 2023, and ending June 30, 2024, the following 11 amount, or so much thereof as is necessary, to be used for the 12 purposes designated in this subsection, and for not more than 13 the following full-time equivalent positions: 14 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 12,807,359 15 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . FTEs 111.35 16 b. (1) For salaries, support, miscellaneous purposes, 17 programs, marketing, and the maintenance of an administration 18 division, a business development division, a community 19 development division, a small business development division, 20 and other divisions the authority may organize. 21 (2) For business development operations and programs, 22 international trade, export assistance, workforce recruitment, 23 and the partner state program. 24 (3) For transfer to a fund created pursuant to section 25 15.313 for purposes of financing strategic infrastructure 26 projects. 27 (4) For community economic development programs, tourism 28 operations, community assistance, plans for Iowa green corps 29 and summer youth programs, the main street and rural main 30 street programs, the school-to-career program, the community 31 development block grant, and housing and shelter-related 32 programs. 33 (5) For achieving the goals and accountability, and 34 fulfilling the requirements and duties required under this Act. 35 -2- LSB 1002HV (2) 90 ko/ns 2/ 24
H.F. 725 (6) The full-time equivalent positions authorized under 1 this section are funded, in whole or in part, by the moneys 2 appropriated under this subsection or by other moneys received 3 by the authority, including certain federal moneys. 4 c. Notwithstanding section 8.33 , moneys appropriated in 5 this subsection that remain unencumbered or unobligated at the 6 close of the fiscal year shall not revert but shall remain 7 available for expenditure for the purposes designated in this 8 subsection until the close of the succeeding fiscal year. 9 2. FINANCIAL ASSISTANCE RESTRICTIONS 10 a. A business creating jobs through moneys appropriated in 11 subsection 1 shall be subject to contract provisions requiring 12 new and retained jobs to be filled by individuals who are 13 citizens of the United States who reside within the United 14 States, or any person authorized to work in the United States 15 pursuant to federal law, including legal resident aliens 16 residing in the United States. 17 b. Any vendor who receives moneys appropriated in 18 subsection 1 shall adhere to such contract provisions and 19 provide periodic assurances as the state shall require that the 20 jobs are filled solely by citizens of the United States who 21 reside within the United States, or any person authorized to 22 work in the United States, pursuant to federal law, including 23 legal resident aliens residing in the United States. 24 c. A business that receives financial assistance from 25 the authority from moneys appropriated in subsection 1 shall 26 only employ individuals legally authorized to work in this 27 state. In addition to all other applicable penalties provided 28 by current law, all or a portion of the assistance received 29 by a business which is found to knowingly employ individuals 30 not legally authorized to work in this state is subject to 31 recapture by the authority. 32 3. USES OF APPROPRIATIONS 33 a. From the moneys appropriated in subsection 1, the 34 authority may provide financial assistance in the form of a 35 -3- LSB 1002HV (2) 90 ko/ns 3/ 24
H.F. 725 grant to a community economic development entity for conducting 1 a local workforce recruitment effort designed to recruit former 2 citizens of the state and former students at colleges and 3 universities in the state to meet the needs of local employers. 4 b. From the moneys appropriated in subsection 1, the 5 authority may provide financial assistance to early stage 6 industry companies being established by women entrepreneurs. 7 c. From the moneys appropriated in subsection 1, the 8 authority may provide financial assistance in the form of 9 grants, loans, or forgivable loans for advanced research and 10 commercialization projects involving value-added agriculture, 11 advanced technology, or biotechnology. 12 d. The authority shall not use any moneys appropriated in 13 subsection 1 for purposes of providing financial assistance for 14 the Iowa green streets pilot project or for any other program 15 or project that involves the installation of geothermal systems 16 for melting snow and ice from streets or sidewalks. 17 4. WORLD FOOD PRIZE 18 In lieu of the standing appropriation in section 15.368 , 19 there is appropriated from the general fund of the state to the 20 economic development authority for the fiscal year beginning 21 July 1, 2023, and ending June 30, 2024, the following amount 22 for the world food prize: 23 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 500,000 24 5. COUNCILS OF GOVERNMENTS ASSISTANCE 25 There is appropriated from the general fund of the state 26 to the economic development authority for the fiscal year 27 beginning July 1, 2023, and ending June 30, 2024, the following 28 amount to be used for the purposes of providing financial 29 assistance to Iowas councils of governments: 30 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 250,000 31 6. BUTCHERY INNOVATION AND REVITALIZATION PROGRAM 32 a. There is appropriated from the general fund of the state 33 to the economic development authority for the fiscal year 34 beginning July 1, 2023, and ending June 30, 2024, the following 35 -4- LSB 1002HV (2) 90 ko/ns 4/ 24
H.F. 725 amount, or so much thereof as is necessary, to be used for the 1 purposes designated: 2 For support of the butchery innovation and revitalization 3 program established in section 15E.370 : 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 633,325 5 b. There is appropriated from the Iowa skilled worker and 6 job creation fund created in section 8.75 to the economic 7 development authority for the fiscal year beginning July 1, 8 2023, and ending June 30, 2024, the following amount, or so 9 much thereof as is necessary, to be used for the purposes 10 designated: 11 For support of the butchery innovation and revitalization 12 program established in section 15E.370 : 13 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 366,675 14 7. TOURISM OFFICE 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, 2023, and ending June 30, 2024, the following 18 amount for the tourism office to be used for advertising, 19 promoting, placement, and implementation of the economic 20 development authoritys strategic plan for tourism and travel: 21 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,100,000 22 b. Notwithstanding section 8.33 , moneys appropriated in 23 this subsection that remain unencumbered or unobligated at the 24 close of the fiscal year shall not revert but shall remain 25 available for expenditure for the purposes designated until the 26 close of the succeeding fiscal year. 27 c. The economic development authority shall submit an 28 annual report on or before January 15 to the general assembly 29 regarding the tourism offices activities funded with moneys 30 appropriated under this subsection. The report shall be 31 provided in an electronic format and shall include metrics 32 and criteria that allow the general assembly to quantify 33 and evaluate the effectiveness and economic impact of the 34 tourism offices activities related to advertising, promoting, 35 -5- LSB 1002HV (2) 90 ko/ns 5/ 24
H.F. 725 placement, and implementation of the economic development 1 authoritys strategic plan for tourism and travel. 2 8. EMPOWER RURAL IOWA 3 a. There is appropriated from the Iowa skilled worker and 4 job creation fund created in section 8.75 to the economic 5 development authority for the fiscal year beginning July 1, 6 2023, and ending June 30, 2024, the following amount, or so 7 much thereof as is necessary, to be used for the purposes 8 designated: 9 Empower rural Iowa program: 10 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 700,000 11 b. Notwithstanding section 8.33 , moneys appropriated in 12 this subsection that remain unencumbered or unobligated at the 13 close of the fiscal year shall not revert but shall remain 14 available for expenditure for the purposes designated until the 15 close of the succeeding fiscal year. 16 c. The authority shall adopt rules pursuant to chapter 17 17A to establish criteria for the distribution of the moneys 18 appropriated in this subsection. 19 9. CULTURAL AFFAIRS ACTIVITIES 20 a. There is appropriated from the general fund of the state 21 to the economic development authority for the fiscal year 22 beginning July 1, 2023, and ending June 30, 2024, the following 23 amounts, or so much thereof as is necessary, to be used for the 24 purposes designated: 25 (1) For planning and programming for the community cultural 26 grants program established under section 303.3, as amended by 27 2023 Iowa Acts, Senate File 514: 28 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 172,090 29 (2) For support of the Iowa arts council: 30 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,400,000 31 Of the moneys appropriated in this subparagraph, the 32 authority shall allocate $300,000 for purposes of the film 33 office. 34 (3) For the Iowa great places program established under 35 -6- LSB 1002HV (2) 90 ko/ns 6/ 24
H.F. 725 section 303.3C, as amended by 2023 Iowa Acts, Senate File 514: 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 149,710 2 (4) For grant programs administered by the Iowa arts 3 council including those programs supporting the long-term 4 financial stability and sustainability of nonprofit cultural 5 organizations: 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 150,000 7 b. Notwithstanding section 8.33, moneys appropriated in 8 this subsection that remain unencumbered or unobligated at the 9 close of the fiscal year shall not revert but shall remain 10 available for expenditure for the purposes designated until the 11 close of the succeeding fiscal year. 12 Sec. 3. LIMITATIONS OF STANDING APPROPRIATIONS FY 13 2023-2024. Notwithstanding the standing appropriations 14 in the following designated sections for the fiscal year 15 beginning July 1, 2023, and ending June 30, 2024, the amounts 16 appropriated from the general fund of the state pursuant to 17 those sections for the following purposes shall not exceed the 18 following amounts: 19 1. For operational support grants and community cultural 20 grants under section 99F.11, subsection 4 , paragraph d, 21 subparagraph (1): 22 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 448,403 23 2. For the purposes of regional tourism marketing under 24 section 99F.11, subsection 4 , paragraph d, subparagraph (2): 25 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,443,700 26 Sec. 4. FINANCIAL ASSISTANCE REPORTING ECONOMIC 27 DEVELOPMENT AUTHORITY. The economic development authority 28 shall submit an annual report to the general assembly no later 29 than November 1, 2023, that details the amount of every direct 30 loan, forgivable loan, tax credit, tax exemption, tax refund, 31 grant, or any other financial assistance awarded to a person 32 during the prior fiscal year by the authority under an economic 33 development program administered by the authority. The report 34 shall identify the county where the project associated with 35 -7- LSB 1002HV (2) 90 ko/ns 7/ 24
H.F. 725 each such award is located. 1 Sec. 5. INSURANCE ECONOMIC DEVELOPMENT. From the 2 moneys collected by the insurance division in excess of the 3 anticipated gross revenues under section 505.7, subsection 4 3 , during the fiscal year beginning July 1, 2023, $100,000 5 shall be transferred to the economic development authority for 6 insurance economic development and international insurance 7 economic development. 8 Sec. 6. IOWA FINANCE AUTHORITY. 9 1. There is appropriated from the general fund of the state 10 to the Iowa finance authority for the fiscal year beginning 11 July 1, 2023, and ending June 30, 2024, the following amounts, 12 or so much thereof as is necessary, to be used for the purposes 13 designated: 14 a. Rent subsidy program 15 (1) To provide reimbursement for rent expenses to eligible 16 persons under the home and community-based services rent 17 subsidy program established in section 16.55 : 18 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 873,000 19 (2) Of the moneys appropriated in this paragraph, not more 20 than $35,000 may be used for administrative costs. 21 b. Housing renewal pilot program 22 To provide housing renewal moneys to a nonprofit Iowa 23 affiliate to award grants to eligible communities for a housing 24 renewal pilot program: 25 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 500,000 26 2. Notwithstanding section 8.33 , moneys appropriated in 27 this section that remain unencumbered or unobligated at the 28 close of the fiscal year shall not revert but shall remain 29 available for expenditure for the purposes designated until the 30 close of the succeeding fiscal year. 31 Sec. 7. IOWA FINANCE AUTHORITY AUDIT. The auditor of state 32 is requested to review the audit of the Iowa finance authority 33 performed by the auditor hired by the authority. 34 Sec. 8. PUBLIC EMPLOYMENT RELATIONS BOARD. 35 -8- LSB 1002HV (2) 90 ko/ns 8/ 24
H.F. 725 1. There is appropriated from the general fund of the state 1 to the public employment relations board for the fiscal year 2 beginning July 1, 2023, and ending June 30, 2024, the following 3 amount, or so much thereof as is necessary, to be used for the 4 purposes designated: 5 For salaries, support, maintenance, and miscellaneous 6 purposes, and for not more than the following full-time 7 equivalent positions: 8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,290,230 9 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . FTEs 9.00 10 2. Of the moneys appropriated in this section, the board 11 shall allocate $15,000 for maintaining an internet site that 12 allows access to a searchable database of collective bargaining 13 information. 14 Sec. 9. DEPARTMENT OF WORKFORCE DEVELOPMENT. There 15 is appropriated from the general fund of the state to the 16 department of workforce development for the fiscal year 17 beginning July 1, 2023, and ending June 30, 2024, the following 18 amounts, or so much thereof as is necessary, to be used for the 19 purposes designated: 20 1. WORKFORCE DEVELOPMENT OPERATIONS 21 a. For the operation of field offices and the workforce 22 development board, and for not more than the following 23 full-time equivalent positions: 24 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 6,801,205 25 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . FTEs 169.41 26 b. Of the moneys appropriated in paragraph a, the 27 department shall allocate $150,000 to the state library for the 28 purpose of licensing an online resource which prepares persons 29 to succeed in the workplace through programs which improve job 30 skills and vocational test-taking abilities. 31 2. OFFENDER REENTRY PROGRAM 32 a. For the development and administration of an offender 33 reentry program to provide offenders with employment skills, 34 and for not more than the following full-time equivalent 35 -9- LSB 1002HV (2) 90 ko/ns 9/ 24
H.F. 725 positions: 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 387,158 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . FTEs 5.00 3 b. The department of workforce development shall partner 4 with the department of corrections to provide staff within 5 the correctional facilities resources to improve offenders 6 abilities to find and retain productive employment. 7 3. INTEGRATED INFORMATION FOR IOWA SYSTEM 8 For the payment of services provided by the department of 9 administrative services related to the integrated information 10 for Iowa system: 11 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 228,822 12 4. SUMMER YOUTH INTERN PILOT PROGRAM 13 For the funding of a summer youth intern pilot program that 14 will help young people at risk of not graduating from high 15 school to explore and prepare for high-demand careers through 16 summer work experience, including the development of soft 17 skills: 18 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 250,000 19 5. VOCATIONAL REHABILITATION SERVICES DIVISION 20 a. For salaries, support, maintenance, and miscellaneous 21 purposes, and for not more than the following full-time 22 equivalent positions: 23 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 6,106,732 24 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . FTEs 248.00 25 For purposes of optimizing the job placement of individuals 26 with disabilities, the division shall make its best efforts 27 to work with community rehabilitation program providers for 28 job placement and retention services for individuals with 29 significant disabilities and most significant disabilities. By 30 January 15, 2024, the division shall submit a written report to 31 the general assembly regarding the divisions outreach efforts 32 with community rehabilitation program providers. 33 b. For matching moneys for programs to enable persons 34 with severe physical or mental disabilities to function more 35 -10- LSB 1002HV (2) 90 ko/ns 10/ 24
H.F. 725 independently, including salaries and support, and for not more 1 than the following full-time equivalent positions: 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 84,804 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . FTEs 1.00 4 c. For the entrepreneurs with disabilities program 5 established pursuant to section 259.4, as amended by 2023 Iowa 6 Acts, Senate File 514: 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 138,506 8 d. For costs associated with centers for independent 9 living: 10 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 86,457 11 6. ADULT EDUCATION AND LITERACY PROGRAMS 12 For distribution as grants to community colleges for 13 the purpose of adult basic education programs for students 14 requiring instruction in English as a second language: 15 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 500,000 16 In issuing grants under this subsection, the department of 17 workforce development shall use the same application process 18 and criteria as are used for purposes of awarding grants to 19 community colleges for the purpose of adult basic education 20 programs for students requiring instruction in English as a 21 second language using moneys that are appropriated to the 22 department from the Iowa skilled worker and job creation fund. 23 7. FUTURE READY IOWA REGISTERED APPRENTICESHIP DEVELOPMENT 24 PROGRAM 25 For the funding of the future ready Iowa registered 26 apprenticeship development program under chapter 15C, as 27 amended by 2023 Iowa Acts, Senate File 514, to encourage 28 small to midsize businesses to start or grow registered 29 apprenticeships: 30 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 760,000 31 Notwithstanding section 8.33 , moneys appropriated in this 32 section that remain unencumbered or unobligated at the close of 33 the fiscal year shall not revert but shall remain available for 34 expenditure for the purposes designated until the close of the 35 -11- LSB 1002HV (2) 90 ko/ns 11/ 24
H.F. 725 succeeding fiscal year. 1 Sec. 10. GENERAL FUND EMPLOYEE MISCLASSIFICATION 2 PROGRAM. There is appropriated from the general fund of the 3 state to the department of workforce development for the fiscal 4 year beginning July 1, 2023, and ending June 30, 2024, the 5 following amount, or so much thereof as is necessary, to be 6 used for the purposes designated: 7 For enhancing efforts to investigate employers that 8 misclassify workers, and for not more than the following 9 full-time equivalent positions: 10 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 379,631 11 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . FTEs 3.00 12 Sec. 11. SPECIAL EMPLOYMENT SECURITY CONTINGENCY FUND. 13 1. There is appropriated from the special employment 14 security contingency fund created in section 96.13 to the 15 department of workforce development for the fiscal year 16 beginning July 1, 2023, and ending June 30, 2024, the following 17 amount, or so much thereof as is necessary, to be used for 18 field offices: 19 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2,416,084 20 2. Any remaining additional penalty and interest revenue 21 collected by the department of workforce development is 22 appropriated to the department for the fiscal year beginning 23 July 1, 2023, and ending June 30, 2024, to accomplish the 24 mission of the department. 25 Sec. 12. UNEMPLOYMENT COMPENSATION RESERVE FUND FIELD 26 OFFICES. Notwithstanding section 96.9, subsection 8 , paragraph 27 e, there is appropriated from interest earned on the 28 unemployment compensation reserve fund created in section 96.9 29 to the department of workforce development for the fiscal year 30 beginning July 1, 2023, and ending June 30, 2024, the following 31 amount, or so much thereof as is necessary, to be used for the 32 purposes designated: 33 For the operation of field offices: 34 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2,200,000 35 -12- LSB 1002HV (2) 90 ko/ns 12/ 24
H.F. 725 Sec. 13. VIRTUAL ACCESS WORKFORCE DEVELOPMENT OFFICES. The 1 department of workforce development shall require a unique 2 identification login for all users of workforce development 3 centers operated through electronic means. 4 Sec. 14. UNEMPLOYMENT COMPENSATION PROGRAM. 5 1. Notwithstanding section 96.9, subsection 4 , paragraph 6 a, moneys credited to the state by the secretary of the 7 treasury of the United States pursuant to section 903 of the 8 federal Social Security Act are appropriated to the department 9 of workforce development and shall be used by the department 10 for the administration of the unemployment compensation program 11 only. This appropriation shall not apply to any fiscal year 12 beginning after December 31, 2023. 13 2. Notwithstanding subsection 1, up to $800,000, or 14 so much thereof as may be necessary, of the unemployment 15 compensation modernization incentive payments made to the 16 states unemployment trust fund account as a special transfer 17 under section 903 of the federal Social Security Act, pursuant 18 to the federal Assistance for Unemployed Workers and Struggling 19 Families Act, of the American Recovery and Reinvestment Act of 20 2009, Pub. L. No. 111-5, are appropriated to the department of 21 workforce development for the fiscal year beginning July 1, 22 2023, and ending June 30, 2024, for the purpose of modification 23 of space for unemployment insurance administrative law judge 24 offices and conference rooms in which to hold unemployment 25 insurance appeal hearings. 26 Sec. 15. IOWA SKILLED WORKER AND JOB CREATION FUND. 27 1. There is appropriated from the Iowa skilled worker and 28 job creation fund created in section 8.75 to the following 29 departments, agencies, and institutions for the fiscal year 30 beginning July 1, 2023, and ending June 30, 2024, the following 31 amounts, or so much thereof as is necessary, to be used for the 32 purposes designated: 33 a. ECONOMIC DEVELOPMENT AUTHORITY 34 (1) For the purposes of providing assistance as described in 35 -13- LSB 1002HV (2) 90 ko/ns 13/ 24
H.F. 725 section 15.335B for the high quality jobs program: 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 11,700,000 2 From the moneys appropriated in this subparagraph, the 3 economic development authority may use not more than $1,000,000 4 for purposes of providing infrastructure grants to main street 5 communities under the main street Iowa program and may allocate 6 not more than $300,000 for the purposes of supporting statewide 7 worker education and quality preapprenticeship programs. 8 (2) As a condition of receiving moneys appropriated in 9 this lettered paragraph a, an entity shall testify upon the 10 request of the joint appropriations subcommittee on economic 11 development regarding the expenditure of such moneys. 12 b. STATE BOARD OF REGENTS AND REGENTS INSTITUTIONS 13 (1) STATE BOARD OF REGENTS. For capacity building 14 infrastructure in areas related to technology 15 commercialization, marketing and business development 16 efforts in areas related to technology commercialization, 17 entrepreneurship, and business growth, and infrastructure 18 projects and programs needed to assist in implementation of 19 activities under chapter 262B : 20 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 3,000,000 21 (a) Of the moneys appropriated pursuant to this 22 subparagraph (1), 35 percent shall be allocated for Iowa state 23 university of science and technology, 35 percent shall be 24 allocated for the state university of Iowa, and 30 percent 25 shall be allocated for the university of northern Iowa. 26 (b) The institutions shall provide a one-to-one match 27 of additional moneys for the activities funded with moneys 28 appropriated under this subparagraph (1). 29 (c) The state board of regents shall submit a report by 30 January 15, 2024, to the governor and the general assembly 31 regarding the activities, projects, and programs funded with 32 moneys appropriated under this subparagraph (1). The report 33 shall be provided in an electronic format and shall include a 34 list of metrics and criteria mutually agreed to in advance by 35 -14- LSB 1002HV (2) 90 ko/ns 14/ 24
H.F. 725 the board of regents and the economic development authority. 1 The metrics and criteria shall allow the governors office and 2 the general assembly to quantify and evaluate the progress 3 of the board of regents institutions with regard to their 4 activities, projects, and programs in the areas of technology 5 commercialization, entrepreneurship, regional development, and 6 market research. 7 (2) IOWA STATE UNIVERSITY OF SCIENCE AND TECHNOLOGY. For 8 small business development centers, the research park, and the 9 center for industrial research and service, and for not more 10 than the following full-time equivalent positions: 11 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2,424,302 12 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . FTEs 50.95 13 (a) Of the moneys appropriated in this subparagraph (2), 14 Iowa state university of science and technology shall allocate 15 at least $735,728 for purposes of funding small business 16 development centers. Iowa state university of science and 17 technology may allocate the appropriated moneys to the various 18 small business development centers in any manner necessary to 19 achieve the purposes of this subparagraph. 20 (b) Iowa state university of science and technology shall 21 do all of the following: 22 (i) Direct expenditures for research toward projects that 23 will provide economic stimulus for Iowa. 24 (ii) Provide emphasis to providing services to Iowa-based 25 companies. 26 (c) It is the intent of the general assembly that the 27 industrial incentive program focus on Iowa industrial sectors 28 and seek contributions and in-kind donations from businesses, 29 industrial foundations, and trade associations, and that moneys 30 for the center for industrial research and service industrial 31 incentive program shall be allocated only for projects which 32 are matched by private sector moneys for directed contract 33 research or for nondirected research. The match required of 34 small businesses as defined in section 15.102 for directed 35 -15- LSB 1002HV (2) 90 ko/ns 15/ 24
H.F. 725 contract research or for nondirected research shall be $1 1 for each $3 of state funds. The match required for other 2 businesses for directed contract research or for nondirected 3 research shall be $1 for each $1 of state funds. The match 4 required of industrial foundations or trade associations shall 5 be $1 for each $1 of state funds. 6 (d) Iowa state university of science and technology shall 7 report annually to the general assembly the total amount of 8 private contributions, the proportion of contributions from 9 small businesses and other businesses, and the proportion for 10 directed contract research and nondirected research of benefit 11 to Iowa businesses and industrial sectors. 12 (3) STATE UNIVERSITY OF IOWA. 13 (a) For the state university of Iowa research park and for 14 university of Iowa pharmaceuticals located at the research 15 park, including salaries, support, maintenance, equipment, and 16 miscellaneous purposes, and for not more than the following 17 full-time equivalent positions: 18 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 209,279 19 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . FTEs 6.00 20 The state university of Iowa shall do all of the following: 21 (i) Direct expenditures for research toward projects that 22 will provide economic stimulus for Iowa. 23 (ii) Provide emphasis to providing services to Iowa-based 24 companies. 25 (b) For the purpose of implementing the entrepreneurship 26 and economic growth initiative, and for not more than the 27 following full-time equivalent positions: 28 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2,000,000 29 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . FTEs 8.00 30 (4) UNIVERSITY OF NORTHERN IOWA. For the metal casting and 31 foundry 4.0 centers, advance Iowa, family business center, and 32 the institute for decision making, including salaries, support, 33 maintenance, and miscellaneous purposes, and for not more than 34 the following full-time equivalent positions: 35 -16- LSB 1002HV (2) 90 ko/ns 16/ 24
H.F. 725 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,466,419 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . FTEs 13.00 2 The university of northern Iowa shall do all of the 3 following: 4 (a) Direct expenditures for research toward projects that 5 will provide economic stimulus for Iowa. 6 (b) Provide emphasis to providing services to Iowa-based 7 companies. 8 (5) As a condition of receiving moneys appropriated in 9 this lettered paragraph b, an entity shall testify upon the 10 request of the joint appropriations subcommittee on economic 11 development regarding the expenditure of such moneys. 12 c. DEPARTMENT OF WORKFORCE DEVELOPMENT 13 (1) To develop a long-term sustained program to train 14 unemployed and underemployed central Iowans with skills 15 necessary to advance to higher-paying jobs with full benefits: 16 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 100,000 17 (a) The department of workforce development shall begin 18 a request for proposals process, issued for purposes of this 19 subparagraph (1), no later than September 1, 2023. 20 (b) As a condition of receiving moneys appropriated under 21 this subparagraph (1), an entity shall testify upon the 22 request of the joint appropriations subcommittee on economic 23 development regarding the expenditure of such moneys. 24 (2) For the funding of a future ready Iowa coordinator in 25 the department, and for not more than the following full-time 26 equivalent positions: 27 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 150,000 28 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . FTEs 1.00 29 (3) For distribution to community colleges for the purposes 30 of implementing adult education and literacy programs pursuant 31 to section 84A.19, as enacted by 2023 Iowa Acts, Senate File 32 514: 33 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 5,500,000 34 (a) From the moneys appropriated in this numbered 35 -17- LSB 1002HV (2) 90 ko/ns 17/ 24
H.F. 725 subparagraph, $3,883,000 shall be allocated pursuant to the 1 formula established in section 260C.18C. 2 (b) From the moneys appropriated in this numbered 3 subparagraph, not more than $150,000 shall be used by the 4 department of workforce development for implementation of adult 5 education and literacy programs pursuant to section 84A.19, as 6 enacted by 2023 Iowa Acts, Senate File 514. 7 (c) From the moneys appropriated in this numbered 8 subparagraph, not more than $1,257,000 shall be distributed 9 as grants to community colleges for the purpose of adult 10 basic education programs for students requiring instruction 11 in English as a second language. The department of workforce 12 development shall establish an application process and criteria 13 to award grants pursuant to this subparagraph division to 14 community colleges. The criteria shall be based on need for 15 instruction in English as a second language in the region 16 served by each community college as determined by factors 17 including data from the latest federal decennial census and 18 outreach efforts to determine regional needs. 19 (d) From the moneys appropriated in this numbered 20 subparagraph, $210,000 shall be transferred to the department 21 of health and human services for purposes of administering a 22 program to provide access to international resources to Iowans 23 and new Iowans to provide economic and leadership development 24 resulting in Iowa being a more inclusive and welcoming place 25 to live, work, and raise a family. The program shall provide 26 supplemental support services for international refugees to 27 improve learning, English literacy, life skills, cultural 28 competencies, and integration in a county with a population 29 over 350,000 as determined by the 2020 federal decennial 30 census. The department of health and human services shall 31 utilize a request for proposals process to identify the entity 32 best qualified to implement the program. 33 (4) For deposit in the statewide work-based learning 34 intermediary network fund created pursuant to section 256.40, 35 -18- LSB 1002HV (2) 90 ko/ns 18/ 24
H.F. 725 as amended by 2023 Iowa Acts, Senate File 514: 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,500,000 2 From the moneys appropriated in this numbered subparagraph, 3 not more than $50,000 shall be used by the department of 4 workforce development to provide statewide support for 5 work-based learning. 6 (5) For the funding of internships for students studying in 7 the fields of science, technology, engineering, and mathematics 8 with eligible Iowa employers as provided in section 15.411, 9 subsection 3, paragraph c: 10 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 633,325 11 2. Notwithstanding section 8.33 , moneys appropriated in 12 this section that remain unencumbered or unobligated at the 13 close of the fiscal year shall not revert but shall remain 14 available for expenditure for the purposes designated until the 15 close of the succeeding fiscal year. 16 Sec. 16. GENERAL FUND CERTAIN REGENTS INSTITUTIONS. 17 1. There is appropriated from the general fund of the state 18 to the following institutions for the fiscal year beginning 19 July 1, 2023, and ending June 30, 2024, the following amounts, 20 or so much thereof as is necessary, to be used for the purposes 21 designated: 22 a. IOWA STATE UNIVERSITY OF SCIENCE AND TECHNOLOGY 23 In cooperation with the economic development authority, for 24 support of a biosciences innovation ecosystem, to strengthen 25 Iowas leadership positions in the area of bio-based chemicals, 26 digital agriculture, vaccines, and medical devices, including 27 salaries, support, maintenance, and miscellaneous purposes, and 28 for not more than the following full-time equivalent positions: 29 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2,963,995 30 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . FTEs 8.40 31 b. STATE UNIVERSITY OF IOWA 32 In cooperation with the economic development authority, for 33 support of a biosciences innovation ecosystem, to strengthen 34 Iowas leadership positions in the area of bio-based chemicals, 35 -19- LSB 1002HV (2) 90 ko/ns 19/ 24
H.F. 725 digital agriculture, vaccines, and medical devices, including 1 salaries, support, maintenance, and miscellaneous purposes, and 2 for not more than the following full-time equivalent positions: 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,000,000 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . FTEs 4.35 5 c. UNIVERSITY OF NORTHERN IOWA 6 For equipment and technology to expand the universitys 7 additive manufacturing capabilities related to investment 8 castings technology and industry support, including salaries, 9 support, maintenance, and miscellaneous purposes, and for not 10 more than the following full-time equivalent positions: 11 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 394,321 12 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . FTEs 2.73 13 The university of northern Iowa shall make a good-faith 14 effort to coordinate with private entities to seek moneys to 15 supplement this appropriation to support the expansion of the 16 universitys additive manufacturing capabilities. 17 2. Notwithstanding section 8.33 , moneys appropriated in 18 subsection 1, paragraphs a and b, that remain unencumbered 19 or unobligated at the close of the fiscal year shall not revert 20 but shall remain available for expenditure for the purposes 21 designated until the close of the succeeding fiscal year. 22 DIVISION II 23 FY 2022-2023 FUTURE READY IOWA VOLUNTEER MENTORING PROGRAM 24 Sec. 17. 2022 Iowa Acts, chapter 1148, section 3, subsection 25 11, is amended to read as follows: 26 11. FUTURE READY IOWA VOLUNTEER MENTORING PROGRAM 27 a. There is appropriated from the Iowa skilled worker and 28 job creation fund created in section 8.75 to the economic 29 development authority for the fiscal year beginning July 1, 30 2022, and ending June 30, 2023, the following amount, or so 31 much thereof as is necessary, to be used for the purposes 32 designated: 33 For allocation to the Iowa commission on volunteer services 34 to be used for establishing a volunteer mentor program to 35 -20- LSB 1002HV (2) 90 ko/ns 20/ 24
H.F. 725 support implementation of the future ready Iowa skilled 1 workforce last-dollar scholarship program in section 261.131 2 and the future ready Iowa skilled workforce grant program 3 created in section 261.132 , and for not more than the following 4 full-time equivalent positions: 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 400,000 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . FTEs 1.15 7 b. Notwithstanding section 8.33 , moneys appropriated in 8 this subsection that remain unencumbered or unobligated at the 9 close of the fiscal year shall not revert but shall remain 10 available for expenditure for the purposes designated , and for 11 not more than the authorized full-time equivalent positions, 12 until the close of the succeeding fiscal year. 13 DIVISION III 14 PATHWAYS FOR ACADEMIC CAREER AND EMPLOYMENT PROGRAM RULES 15 Sec. 18. Section 260H.8, Code 2023, as amended by 2023 16 Iowa Acts, Senate File 514, section 2196, is amended to read 17 as follows: 18 260H.8 Rules. 19 The department of education workforce development , in 20 consultation with the community colleges, the economic 21 development authority, and the department of workforce 22 development education , shall adopt rules pursuant to chapter 23 17A to implement this chapter . Local workforce development 24 boards established pursuant to section 84A.4 shall be consulted 25 in the development and implementation of rules adopted pursuant 26 to this section . 27 DIVISION IV 28 APPRENTICESHIP TRAINING PROGRAM DEFINITIONS 29 Sec. 19. Section 15B.2, subsection 9A, as enacted by 30 2023 Iowa Acts, Senate File 514, section 2251, is amended by 31 striking the subsection. 32 DIVISION V 33 NEW JOBS TRAINING AGREEMENTS 34 Sec. 20. 2015 Iowa Acts, chapter 138, section 8, is amended 35 -21- LSB 1002HV (2) 90 ko/ns 21/ 24
H.F. 725 to read as follows: 1 SEC. 8. IOWA NEW JOBS TRAINING AGREEMENTS. An Iowa 2 community college that entered into a new jobs training 3 agreement pursuant to chapter 260E , which was effective in 4 April 2012 2021 , with an Iowa employer may enter into a new 5 agreement with such employer pursuant to chapter 260E , which 6 will be effective September 2015 2023 , and may use the base 7 employment determined in April 2012 October 2021 as the base 8 employment for determining the new jobs eligible under the 9 new agreement if the base employment determined in April 2012 10 October 2021 was 2,125 2,335 employees. The new agreement 11 under chapter 260E shall be limited to seven years from the 12 effective date of the agreement. 13 EXPLANATION 14 The inclusion of this explanation does not constitute agreement with 15 the explanations substance by the members of the general assembly. 16 This bill relates to and makes appropriations for the 17 economic development of the state. 18 FY 2023-2024 APPROPRIATIONS. The bill appropriates moneys 19 for FY 2023-2024 from the general fund of the state to the 20 economic development authority, the Iowa finance authority, the 21 public employment relations board, the department of workforce 22 development, Iowa state university of science and technology, 23 the state university of Iowa, and the university of northern 24 Iowa. 25 The bill appropriates moneys for FY 2023-2024 from the 26 Iowa skilled worker and job creation fund to the economic 27 development authority, the department of workforce development, 28 and the state board of regents and institutions under the 29 control of the board. 30 For FY 2023-2024, the bill limits standing appropriations 31 for the world food prize, certain operational support grants, 32 community cultural grants, and regional tourism marketing. 33 The bill transfers $100,000 of the moneys collected by the 34 insurance division in excess of the anticipated gross revenues 35 -22- LSB 1002HV (2) 90 ko/ns 22/ 24
H.F. 725 under Code section 505.7 to the economic development authority. 1 The bill appropriates moneys for FY 2023-2024 from the 2 special employment security contingency fund and interest 3 earned on the unemployment compensation reserve fund to the 4 department of workforce development. 5 Moneys credited to the state by the U.S. secretary of 6 treasury pursuant to section 903 of the federal Social 7 Security Act are appropriated to the department of workforce 8 development. Up to $800,000 of the unemployment compensation 9 modernization incentive payments made to the states 10 unemployment trust fund account as a special transfer under 11 section 903 of the federal Social Security Act are appropriated 12 to the department of workforce development for modification 13 of space for unemployment insurance administrative law judge 14 offices and conference rooms for unemployment insurance appeal 15 hearings. 16 The auditor of state is requested to review the audit of the 17 Iowa finance authority performed by the auditor hired by the 18 authority. 19 The bill requires the economic development authority, the 20 vocational rehabilitation services division of the department 21 of workforce development, the state board of regents, and Iowa 22 state university of science and technology to submit various 23 reports to the general assembly. 24 FUTURE READY IOWA VOLUNTEER MENTORING PROGRAM. The bill 25 authorizes the moneys appropriated to the economic development 26 authority for the future ready Iowa volunteer mentoring program 27 in FY 2022-2023 to remain available for use in FY 2023-2024 for 28 the 1.15 full-time equivalent positions under the program. 29 PATHWAYS FOR ACADEMIC CAREER AND EMPLOYMENT PROGRAM. 30 The bill requires the department of workforce development, 31 rather than the department of education, to adopt rules in 32 consultation with entities designated in the bill for the 33 pathway for academic career and employment program. 34 APPRENTICESHIP TRAINING PROGRAM. The bill amends Code 35 -23- LSB 1002HV (2) 90 ko/ns 23/ 24
H.F. 725 section 15B.2 to strike the definition for targeted 1 industries. 2 NEW JOBS TRAINING AGREEMENTS. The bill authorizes a 3 community college that entered into a new jobs training 4 agreement (agreement) that was effective in April 2021 to enter 5 into a new agreement with the same employer with an effective 6 date of September 2023. The new jobs eligible under the 7 agreement are determined as outlined in the bill. 8 -24- LSB 1002HV (2) 90 ko/ns 24/ 24