Iowa 2023-2024 Regular Session

Iowa House Bill HF725 Latest Draft

Bill / Introduced Version Filed 05/02/2023

                            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