Senate File 2432 - Introduced SENATE FILE 2432 BY COMMITTEE ON APPROPRIATIONS (SUCCESSOR TO SSB 3198) 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. 6 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 7 TLSB 5002SV (1) 90 ko/ns
S.F. 2432 Section 1. GOALS AND ACCOUNTABILITY ECONOMIC 1 DEVELOPMENT. 2 1. For the fiscal year beginning July 1, 2024, the goals 3 for the economic development authority shall be to expand and 4 stimulate the state economy, increase the wealth of Iowans, and 5 increase the population of the state. 6 2. To achieve the goals in subsection 1, the economic 7 development authority shall do all of the following for the 8 fiscal year beginning July 1, 2024: 9 a. Concentrate its efforts on programs and activities that 10 result in commercially viable products and services. 11 b. Adopt practices and services consistent with free 12 market, private sector philosophies. 13 c. Ensure economic growth and development throughout the 14 state. 15 d. Work with businesses and communities to continually 16 improve the economic development climate along with the 17 economic well-being and quality of life for Iowans. 18 e. Coordinate with other state agencies to ensure that they 19 are attentive to the needs of an entrepreneurial culture. 20 f. Establish a strong and aggressive marketing image to 21 showcase Iowas workforce, existing industry, and potential. 22 A priority shall be placed on recruiting new businesses, 23 business expansion, and retaining existing Iowa businesses. 24 Emphasis shall be placed on entrepreneurial development through 25 helping entrepreneurs secure capital, and developing networks 26 and a business climate conducive to entrepreneurs and small 27 businesses. 28 g. Encourage the development of communities and quality of 29 life to foster economic growth. 30 h. Prepare communities for future growth and development 31 through development, expansion, and modernization of 32 infrastructure. 33 i. Develop public-private partnerships with Iowa businesses 34 in the tourism industry, Iowa tour groups, Iowa tourism 35 -1- LSB 5002SV (1) 90 ko/ns 1/ 20
S.F. 2432 organizations, and political subdivisions in this state to 1 assist in the development of advertising efforts. 2 j. Develop, to the fullest extent possible, cooperative 3 efforts for advertising with contributions from other sources. 4 Sec. 2. ECONOMIC DEVELOPMENT AUTHORITY. 5 1. APPROPRIATION 6 a. There is appropriated from the general fund of the state 7 to the economic development authority for the fiscal year 8 beginning July 1, 2024, and ending June 30, 2025, the following 9 amount, or so much thereof as is necessary, to be used for the 10 purposes designated in this subsection, and for not more than 11 the following full-time equivalent positions: 12 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 12,921,510 13 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . FTEs 112.50 14 b. (1) For salaries, support, miscellaneous purposes, 15 programs, marketing, and the maintenance of an administration 16 division, a business development division, a community 17 development division, a small business development division, 18 and other divisions the authority may organize. 19 (2) For business development operations and programs, 20 international trade, export assistance, workforce recruitment, 21 and the partner state program. 22 (3) For transfer to a fund created pursuant to section 23 15.313 for purposes of financing strategic infrastructure 24 projects. 25 (4) For community economic development programs, tourism 26 operations, community assistance, plans for Iowa green corps 27 and summer youth programs, the main street and rural main 28 street programs, the school-to-career program, the community 29 development block grant, and housing and shelter-related 30 programs. 31 (5) For achieving the goals and accountability, and 32 fulfilling the requirements and duties required under this Act. 33 (6) The full-time equivalent positions authorized under 34 this section are funded, in whole or in part, by the moneys 35 -2- LSB 5002SV (1) 90 ko/ns 2/ 20
S.F. 2432 appropriated under this subsection or by other moneys received 1 by the authority, including certain federal moneys. 2 c. Notwithstanding section 8.33 , moneys appropriated in 3 this subsection that remain unencumbered or unobligated at the 4 close of the fiscal year shall not revert but shall remain 5 available for expenditure for the purposes designated in this 6 subsection until the close of the succeeding fiscal year. 7 2. FINANCIAL ASSISTANCE RESTRICTIONS 8 a. A business creating jobs through moneys appropriated in 9 subsection 1 shall be subject to contract provisions requiring 10 new and retained jobs to be filled by individuals who are 11 citizens of the United States who reside within the United 12 States, or any person authorized to work in the United States 13 pursuant to federal law, including legal resident aliens 14 residing in the United States. 15 b. Any vendor who receives moneys appropriated in 16 subsection 1 shall adhere to such contract provisions and 17 provide periodic assurances as the state shall require that the 18 jobs are filled solely by citizens of the United States who 19 reside within the United States, or any person authorized to 20 work in the United States, pursuant to federal law, including 21 legal resident aliens residing in the United States. 22 c. A business that receives financial assistance from 23 the authority from moneys appropriated in subsection 1 shall 24 only employ individuals legally authorized to work in this 25 state. In addition to all other applicable penalties provided 26 by current law, all or a portion of the assistance received 27 by a business which is found to knowingly employ individuals 28 not legally authorized to work in this state is subject to 29 recapture by the authority. 30 3. USES OF APPROPRIATIONS 31 a. From the moneys appropriated in subsection 1, the 32 authority may provide financial assistance in the form of a 33 grant to a community economic development entity for conducting 34 a local workforce recruitment effort designed to recruit former 35 -3- LSB 5002SV (1) 90 ko/ns 3/ 20
S.F. 2432 citizens of the state and former students at colleges and 1 universities in the state to meet the needs of local employers. 2 b. From the moneys appropriated in subsection 1, the 3 authority may provide financial assistance to early stage 4 industry companies being established by women entrepreneurs. 5 c. From the moneys appropriated in subsection 1, the 6 authority may provide financial assistance in the form of 7 grants, loans, or forgivable loans for advanced research and 8 commercialization projects involving value-added agriculture, 9 advanced technology, or biotechnology. 10 d. The authority shall not use any moneys appropriated in 11 subsection 1 for purposes of providing financial assistance for 12 the Iowa green streets pilot project or for any other program 13 or project that involves the installation of geothermal systems 14 for melting snow and ice from streets or sidewalks. 15 4. WORLD FOOD PRIZE 16 In lieu of the standing appropriation in section 15.368 , 17 there is appropriated from the general fund of the state to the 18 economic development authority for the fiscal year beginning 19 July 1, 2024, and ending June 30, 2025, the following amount 20 for the world food prize: 21 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 500,000 22 5. COUNCILS OF GOVERNMENTS ASSISTANCE 23 There is appropriated from the general fund of the state 24 to the economic development authority for the fiscal year 25 beginning July 1, 2024, and ending June 30, 2025, the following 26 amount to be used for the purposes of providing financial 27 assistance to Iowas councils of governments: 28 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 250,000 29 6. TOURISM OFFICE 30 a. There is appropriated from the general fund of the state 31 to the economic development authority for the fiscal year 32 beginning July 1, 2024, and ending June 30, 2025, the following 33 amount for the tourism office to be used for advertising, 34 promoting, placement, and implementation of the economic 35 -4- LSB 5002SV (1) 90 ko/ns 4/ 20
S.F. 2432 development authoritys strategic plan for tourism and travel: 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,100,000 2 b. Notwithstanding section 8.33 , moneys appropriated in 3 this subsection that remain unencumbered or unobligated at the 4 close of the fiscal year shall not revert but shall remain 5 available for expenditure for the purposes designated until the 6 close of the succeeding fiscal year. 7 c. The economic development authority shall submit an 8 annual report on or before January 15 to the general assembly 9 regarding the tourism offices activities funded with moneys 10 appropriated under this subsection. The report shall be 11 provided in an electronic format and shall include metrics 12 and criteria that allow the general assembly to quantify 13 and evaluate the effectiveness and economic impact of the 14 tourism offices activities related to advertising, promoting, 15 placement, and implementation of the economic development 16 authoritys strategic plan for tourism and travel. 17 7. CULTURAL AFFAIRS ACTIVITIES 18 a. There is appropriated from the general fund of the state 19 to the economic development authority for the fiscal year 20 beginning July 1, 2024, and ending June 30, 2025, the following 21 amounts, or so much thereof as is necessary, to be used for the 22 purposes designated: 23 (1) For planning and programming for the community cultural 24 grants program established under section 15.436: 25 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 172,090 26 (2) For support of the Iowa arts council: 27 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,400,000 28 Of the moneys appropriated in this subparagraph, the 29 authority shall allocate $300,000 for purposes of the film 30 office. 31 (3) For the Iowa great places program established under 32 section 15.439: 33 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 149,710 34 (4) For grant programs administered by the Iowa arts 35 -5- LSB 5002SV (1) 90 ko/ns 5/ 20
S.F. 2432 council including those programs supporting the long-term 1 financial stability and sustainability of nonprofit cultural 2 organizations: 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 150,000 4 b. 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 until the 8 close of the succeeding fiscal year. 9 Sec. 3. LIMITATIONS OF STANDING APPROPRIATIONS FY 10 2024-2025. Notwithstanding the standing appropriations 11 in the following designated sections for the fiscal year 12 beginning July 1, 2024, and ending June 30, 2025, the amounts 13 appropriated from the general fund of the state pursuant to 14 those sections for the following purposes shall not exceed the 15 following amounts: 16 1. For operational support grants and community cultural 17 grants under section 99F.11, subsection 4 , paragraph d, 18 subparagraph (1): 19 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 448,403 20 2. For the purposes of regional tourism marketing under 21 section 99F.11, subsection 4 , paragraph d, subparagraph (2): 22 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,443,700 23 Sec. 4. FINANCIAL ASSISTANCE REPORTING ECONOMIC 24 DEVELOPMENT AUTHORITY. The economic development authority 25 shall submit an annual report to the general assembly no later 26 than November 1, 2024, that details the amount of every direct 27 loan, forgivable loan, tax credit, tax exemption, tax refund, 28 grant, or any other financial assistance awarded to a person 29 during the prior fiscal year by the authority under an economic 30 development program administered by the authority. The report 31 shall identify the county where the project associated with 32 each such award is located. 33 Sec. 5. INSURANCE ECONOMIC DEVELOPMENT. From the moneys 34 collected by the insurance division of the department of 35 -6- LSB 5002SV (1) 90 ko/ns 6/ 20
S.F. 2432 insurance and financial services in excess of the anticipated 1 gross revenues under section 505.7, subsection 3 , during 2 the fiscal year beginning July 1, 2024, $100,000 shall be 3 transferred to the economic development authority for insurance 4 economic development and international insurance economic 5 development. 6 Sec. 6. IOWA FINANCE AUTHORITY. 7 1. There is appropriated from the general fund of the state 8 to the Iowa finance authority for the fiscal year beginning 9 July 1, 2024, and ending June 30, 2025, the following amounts, 10 or so much thereof as is necessary, to be used for the purposes 11 designated: 12 a. Rent subsidy program 13 (1) To provide reimbursement for rent expenses to eligible 14 persons under the home and community-based services rent 15 subsidy program established in section 16.55: 16 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 873,000 17 (2) Of the moneys appropriated in this paragraph, not more 18 than $35,000 may be used for administrative costs. 19 b. Housing renewal pilot program 20 To provide housing renewal moneys to a nonprofit Iowa 21 affiliate to award grants to eligible communities for a housing 22 renewal pilot program: 23 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 500,000 24 2. Notwithstanding section 8.33, moneys appropriated in 25 this section that remain unencumbered or unobligated at the 26 close of the fiscal year shall not revert but shall remain 27 available for expenditure for the purposes designated until the 28 close of the succeeding fiscal year. 29 Sec. 7. IOWA FINANCE AUTHORITY AUDIT. The auditor of state 30 is requested to review the audit of the Iowa finance authority 31 performed by the auditor hired by the authority. 32 Sec. 8. PUBLIC EMPLOYMENT RELATIONS BOARD. 33 1. There is appropriated from the general fund of the state 34 to the public employment relations board for the fiscal year 35 -7- LSB 5002SV (1) 90 ko/ns 7/ 20
S.F. 2432 beginning July 1, 2024, and ending June 30, 2025, the following 1 amount, or so much thereof as is necessary, to be used for the 2 purposes designated: 3 For salaries, support, maintenance, and miscellaneous 4 purposes, and for not more than the following full-time 5 equivalent positions: 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,290,230 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . FTEs 9.00 8 2. Of the moneys appropriated in this section, the board 9 shall allocate $15,000 for maintaining an internet site that 10 allows access to a searchable database of collective bargaining 11 information. 12 Sec. 9. DEPARTMENT OF WORKFORCE DEVELOPMENT. There 13 is appropriated from the general fund of the state to the 14 department of workforce development for the fiscal year 15 beginning July 1, 2024, and ending June 30, 2025, the following 16 amounts, or so much thereof as is necessary, to be used for the 17 purposes designated: 18 1. WORKFORCE DEVELOPMENT OPERATIONS 19 a. For the operation of field offices and the workforce 20 development board, and for not more than the following 21 full-time equivalent positions: 22 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 6,902,636 23 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . FTEs 166.41 24 b. Of the moneys appropriated in paragraph a, the 25 department shall allocate $150,000 to the state library for the 26 purpose of licensing an online resource which prepares persons 27 to succeed in the workplace through programs which improve job 28 skills and vocational test-taking abilities. 29 2. OFFENDER REENTRY PROGRAM 30 a. For the development and administration of an offender 31 reentry program to provide offenders with employment skills, 32 and for not more than the following full-time equivalent 33 positions: 34 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 387,158 35 -8- LSB 5002SV (1) 90 ko/ns 8/ 20
S.F. 2432 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . FTEs 5.00 1 b. The department of workforce development shall partner 2 with the department of corrections to provide staff within 3 the correctional facilities resources to improve offenders 4 abilities to find and retain productive employment. 5 3. INTEGRATED INFORMATION FOR IOWA SYSTEM 6 For the payment of services provided by the department of 7 administrative services related to the integrated information 8 for Iowa system: 9 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 228,822 10 4. WORKPLACE INJURY AND SAFETY SURVEYS 11 For the operation of workplace safety surveys and workplace 12 data collection and analysis, including salaries, support, 13 maintenance, and miscellaneous purposes, and for not more than 14 the following full-time equivalent positions: 15 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 125,555 16 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . FTEs 3.00 17 5. SUMMER YOUTH INTERN PILOT PROGRAM 18 For the funding of a summer youth intern pilot program that 19 will help young people at risk of not graduating from high 20 school to explore and prepare for high-demand careers through 21 summer work experience, including the development of soft 22 skills: 23 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 250,000 24 6. VOCATIONAL REHABILITATION SERVICES DIVISION 25 a. For salaries, support, maintenance, and miscellaneous 26 purposes, and for not more than the following full-time 27 equivalent positions: 28 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 6,226,739 29 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . FTEs 248.00 30 For purposes of optimizing the job placement of individuals 31 with disabilities, the division shall make its best efforts 32 to work with community rehabilitation program providers for 33 job placement and retention services for individuals with 34 significant disabilities and most significant disabilities. By 35 -9- LSB 5002SV (1) 90 ko/ns 9/ 20
S.F. 2432 January 15, 2025, the division shall submit a written report to 1 the general assembly regarding the divisions outreach efforts 2 with community rehabilitation program providers. 3 b. For matching moneys for programs to enable persons 4 with severe physical or mental disabilities to function more 5 independently, including salaries and support, and for not more 6 than the following full-time equivalent positions: 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 84,804 8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . FTEs 1.00 9 c. For the entrepreneurs with disabilities program 10 established pursuant to section 84H.4: 11 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 138,506 12 d. For costs associated with centers for independent 13 living: 14 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 86,547 15 7. ADULT EDUCATION AND LITERACY PROGRAMS 16 For distribution as grants to community colleges for 17 the purpose of adult basic education programs for students 18 requiring instruction in English as a second language: 19 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 500,000 20 In issuing grants under this subsection, the department of 21 workforce development shall use the same application process 22 and criteria as are used for purposes of awarding grants to 23 community colleges for the purpose of adult basic education 24 programs for students requiring instruction in English as a 25 second language using moneys that are appropriated to the 26 department from the Iowa skilled worker and job creation fund. 27 8. FUTURE READY IOWA REGISTERED APPRENTICESHIP DEVELOPMENT 28 PROGRAMS 29 For the funding of the future ready Iowa registered 30 apprenticeship development programs under chapter 84F to 31 encourage small to midsize businesses to start or grow 32 registered apprenticeships: 33 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 760,000 34 Notwithstanding section 8.33 , moneys appropriated in this 35 -10- LSB 5002SV (1) 90 ko/ns 10/ 20
S.F. 2432 section that remain unencumbered or unobligated at the close of 1 the fiscal year shall not revert but shall remain available for 2 expenditure for the purposes designated until the close of the 3 succeeding fiscal year. 4 Sec. 10. GENERAL FUND EMPLOYEE MISCLASSIFICATION 5 PROGRAM. There is appropriated from the general fund of the 6 state to the department of workforce development for the fiscal 7 year beginning July 1, 2024, and ending June 30, 2025, the 8 following amount, or so much thereof as is necessary, to be 9 used for the purposes designated: 10 For enhancing efforts to investigate employers that 11 misclassify workers, and for not more than the following 12 full-time equivalent positions: 13 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 379,631 14 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . FTEs 3.00 15 Sec. 11. SPECIAL EMPLOYMENT SECURITY CONTINGENCY FUND. 16 1. There is appropriated from the special employment 17 security contingency fund created in section 96.13 to the 18 department of workforce development for the fiscal year 19 beginning July 1, 2024, and ending June 30, 2025, the following 20 amount, or so much thereof as is necessary, to be used for 21 field offices: 22 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2,416,084 23 2. Any remaining additional penalty and interest revenue 24 collected by the department of workforce development is 25 appropriated to the department for the fiscal year beginning 26 July 1, 2024, and ending June 30, 2025, to accomplish the 27 mission of the department. 28 Sec. 12. UNEMPLOYMENT COMPENSATION RESERVE FUND FIELD 29 OFFICES. Notwithstanding section 96.9, subsection 8 , paragraph 30 e, there is appropriated from interest earned on the 31 unemployment compensation reserve fund created in section 96.9 32 to the department of workforce development for the fiscal year 33 beginning July 1, 2024, and ending June 30, 2025, the following 34 amount, or so much thereof as is necessary, to be used for the 35 -11- LSB 5002SV (1) 90 ko/ns 11/ 20
S.F. 2432 purposes designated: 1 For the operation of field offices: 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2,200,000 3 Sec. 13. VIRTUAL ACCESS WORKFORCE DEVELOPMENT OFFICES. The 4 department of workforce development shall require a unique 5 identification login for all users of workforce development 6 centers operated through electronic means. 7 Sec. 14. UNEMPLOYMENT COMPENSATION PROGRAM. 8 1. Notwithstanding section 96.9, subsection 4 , paragraph 9 a, moneys credited to the state by the secretary of the 10 treasury of the United States pursuant to section 903 of the 11 federal Social Security Act are appropriated to the department 12 of workforce development and shall be used by the department 13 for the administration of the unemployment compensation program 14 only. This appropriation shall not apply to any fiscal year 15 beginning after December 31, 2024. 16 2. Notwithstanding subsection 1, up to $800,000, or 17 so much thereof as may be necessary, of the unemployment 18 compensation modernization incentive payments made to the 19 states unemployment trust fund account as a special transfer 20 under section 903 of the federal Social Security Act, pursuant 21 to the federal Assistance for Unemployed Workers and Struggling 22 Families Act, of the American Recovery and Reinvestment Act of 23 2009, Pub. L. No. 111-5, are appropriated to the department of 24 workforce development for the fiscal year beginning July 1, 25 2024, and ending June 30, 2025, for the purpose of modification 26 of space for unemployment insurance administrative law judge 27 offices and conference rooms in which to hold unemployment 28 insurance appeal hearings. 29 Sec. 15. IOWA SKILLED WORKER AND JOB CREATION FUND. 30 1. There is appropriated from the Iowa skilled worker and 31 job creation fund created in section 8.75 to the following 32 departments, agencies, and institutions for the fiscal year 33 beginning July 1, 2024, and ending June 30, 2025, the following 34 amounts, or so much thereof as is necessary, to be used for the 35 -12- LSB 5002SV (1) 90 ko/ns 12/ 20
S.F. 2432 purposes designated: 1 a. ECONOMIC DEVELOPMENT AUTHORITY 2 (1) For the purposes of providing assistance as described in 3 section 15.335B for the high quality jobs program: 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 11,700,000 5 (a) From the moneys appropriated in this subparagraph 6 (1), the economic development authority may use not more than 7 $1,000,000 for purposes of providing infrastructure grants to 8 main street communities under the main street Iowa program. 9 (b) As a condition of receiving moneys appropriated in this 10 subparagraph (1), an entity shall testify upon the request of 11 the joint appropriations subcommittee on economic development 12 regarding the expenditure of such moneys. 13 (2) For support of the manufacturing 4.0 technology 14 investment program established in section 15.371: 15 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,016,675 16 (3) For the empower rural Iowa program: 17 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 700,000 18 b. STATE BOARD OF REGENTS AND REGENTS INSTITUTIONS 19 (1) STATE BOARD OF REGENTS. For capacity building 20 infrastructure in areas related to technology 21 commercialization, marketing and business development 22 efforts in areas related to technology commercialization, 23 entrepreneurship, and business growth, and infrastructure 24 projects and programs needed to assist in implementation of 25 activities under chapter 262B : 26 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 3,000,000 27 (a) Of the moneys appropriated pursuant to this 28 subparagraph (1), 35 percent shall be allocated for Iowa state 29 university of science and technology, 35 percent shall be 30 allocated for the state university of Iowa, and 30 percent 31 shall be allocated for the university of northern Iowa. 32 (b) The institutions shall provide a one-to-one match 33 of additional moneys for the activities funded with moneys 34 appropriated under this subparagraph (1). 35 -13- LSB 5002SV (1) 90 ko/ns 13/ 20
S.F. 2432 (c) The state board of regents shall submit a report by 1 January 15, 2025, to the governor and the general assembly 2 regarding the activities, projects, and programs funded with 3 moneys appropriated under this subparagraph (1). The report 4 shall be provided in an electronic format and shall include a 5 list of metrics and criteria mutually agreed to in advance by 6 the board of regents and the economic development authority. 7 The metrics and criteria shall allow the governors office and 8 the general assembly to quantify and evaluate the progress 9 of the board of regents institutions with regard to their 10 activities, projects, and programs in the areas of technology 11 commercialization, entrepreneurship, regional development, and 12 market research. 13 (2) IOWA STATE UNIVERSITY OF SCIENCE AND TECHNOLOGY. For 14 small business development centers, the research park, and the 15 center for industrial research and service, and for not more 16 than the following full-time equivalent positions: 17 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2,424,302 18 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . FTEs 50.95 19 (a) Of the moneys appropriated in this subparagraph (2), 20 Iowa state university of science and technology shall allocate 21 at least $735,728 for purposes of funding small business 22 development centers. Iowa state university of science and 23 technology may allocate the appropriated moneys to the various 24 small business development centers in any manner necessary to 25 achieve the purposes of this subparagraph. 26 (b) Iowa state university of science and technology shall 27 do all of the following: 28 (i) Direct expenditures for research toward projects that 29 will provide economic stimulus for Iowa. 30 (ii) Provide emphasis to providing services to Iowa-based 31 companies. 32 (c) It is the intent of the general assembly that the 33 industrial incentive program focus on Iowa industrial sectors 34 and seek contributions and in-kind donations from businesses, 35 -14- LSB 5002SV (1) 90 ko/ns 14/ 20
S.F. 2432 industrial foundations, and trade associations, and that moneys 1 for the center for industrial research and service industrial 2 incentive program shall be allocated only for projects which 3 are matched by private sector moneys for directed contract 4 research or for nondirected research. The match required of 5 small businesses as defined in section 15.102 for directed 6 contract research or for nondirected research shall be $1 7 for each $3 of state funds. The match required for other 8 businesses for directed contract research or for nondirected 9 research shall be $1 for each $1 of state funds. The match 10 required of industrial foundations or trade associations shall 11 be $1 for each $1 of state funds. 12 (d) Iowa state university of science and technology shall 13 report annually to the general assembly the total amount of 14 private contributions, the proportion of contributions from 15 small businesses and other businesses, and the proportion for 16 directed contract research and nondirected research of benefit 17 to Iowa businesses and industrial sectors. 18 (3) STATE UNIVERSITY OF IOWA 19 (a) For the state university of Iowa research park and for 20 university of Iowa pharmaceuticals located at the research 21 park, including salaries, support, maintenance, equipment, and 22 miscellaneous purposes, and for not more than the following 23 full-time equivalent positions: 24 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 209,279 25 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . FTEs 6.00 26 The state university of Iowa shall do all of the following: 27 (i) Direct expenditures for research toward projects that 28 will provide economic stimulus for Iowa. 29 (ii) Provide emphasis to providing services to Iowa-based 30 companies. 31 (b) For the purpose of implementing the entrepreneurship 32 and economic growth initiative, and for not more than the 33 following full-time equivalent positions: 34 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2,000,000 35 -15- LSB 5002SV (1) 90 ko/ns 15/ 20
S.F. 2432 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . FTEs 8.00 1 (4) UNIVERSITY OF NORTHERN IOWA. For the metal casting and 2 foundry 4.0 centers, advance Iowa, family business center, and 3 the institute for decision making, including salaries, support, 4 maintenance, and miscellaneous purposes, and for not more than 5 the following full-time equivalent positions: 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,466,419 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . FTEs 13.00 8 The university of northern Iowa shall do all of the 9 following: 10 (a) Direct expenditures for research toward projects that 11 will provide economic stimulus for Iowa. 12 (b) Provide emphasis to providing services to Iowa-based 13 companies. 14 (5) As a condition of receiving moneys appropriated in 15 this lettered paragraph b, an entity shall testify upon the 16 request of the joint appropriations subcommittee on economic 17 development regarding the expenditure of such moneys. 18 c. DEPARTMENT OF WORKFORCE DEVELOPMENT 19 (1) To develop a long-term sustained program to train 20 unemployed and underemployed central Iowans with skills 21 necessary to advance to higher-paying jobs with full benefits: 22 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 100,000 23 As a condition of receiving moneys appropriated under this 24 subparagraph (1), an entity shall testify upon the request of 25 the joint appropriations subcommittee on economic development 26 regarding the expenditure of such moneys. 27 (2) For distribution to community colleges for the purposes 28 of implementing adult education and literacy programs pursuant 29 to section 84A.19: 30 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 5,500,000 31 (a) From the moneys appropriated in this numbered 32 subparagraph, $3,883,000 shall be allocated pursuant to the 33 formula established in section 260C.18C. 34 (b) From the moneys appropriated in this numbered 35 -16- LSB 5002SV (1) 90 ko/ns 16/ 20
S.F. 2432 subparagraph, not more than $150,000 shall be used by the 1 department of workforce development for implementation of adult 2 education and literacy programs pursuant to section 84A.19. 3 (c) From the moneys appropriated in this numbered 4 subparagraph, not more than $1,257,000 shall be distributed 5 as grants to community colleges for the purpose of adult 6 basic education programs for students requiring instruction 7 in English as a second language. The department of workforce 8 development shall establish an application process and criteria 9 to award grants pursuant to this subparagraph division to 10 community colleges. The criteria shall be based on need for 11 instruction in English as a second language in the region 12 served by each community college as determined by factors 13 including data from the latest federal decennial census and 14 outreach efforts to determine regional needs. 15 (d) From the moneys appropriated in this numbered 16 subparagraph, $210,000 shall be transferred to the department 17 of health and human services for purposes of administering a 18 program to provide access to international resources to Iowans 19 and new Iowans to provide economic and leadership development 20 resulting in Iowa being a more inclusive and welcoming place 21 to live, work, and raise a family. The program shall provide 22 supplemental support services for international refugees to 23 improve learning, English literacy, life skills, cultural 24 competencies, and integration in a county with a population 25 over 350,000 as determined by the 2020 federal decennial 26 census. The department of health and human services shall 27 utilize a request for proposals process to identify the entity 28 best qualified to implement the program. 29 (3) For the funding of internships for students studying in 30 the fields of science, technology, engineering, and mathematics 31 with eligible Iowa employers as provided in section 15.411, 32 subsection 3, paragraph c: 33 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 633,325 34 (4) For deposit in the statewide work-based learning 35 -17- LSB 5002SV (1) 90 ko/ns 17/ 20
S.F. 2432 intermediary network fund created in section 84A.16: 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,000,000 2 If the provision of 2024 Iowa Acts, Senate File 2411, or 3 successor legislation, repealing section 84A.16 is enacted, 4 moneys appropriated in this subparagraph (4) are instead 5 appropriated to the economic development authority for the 6 fiscal year beginning July 1, 2024, and ending June 30, 2025, 7 to be used for support of the manufacturing 4.0 technology 8 investment program established in section 15.371, in addition 9 to any other such appropriation provided by law. 10 2. Notwithstanding section 8.33 , moneys appropriated in 11 this section that remain unencumbered or unobligated at the 12 close of the fiscal year shall not revert but shall remain 13 available for expenditure for the purposes designated until the 14 close of the succeeding fiscal year. 15 Sec. 16. GENERAL FUND CERTAIN REGENTS INSTITUTIONS. 16 1. There is appropriated from the general fund of the state 17 to the following institutions for the fiscal year beginning 18 July 1, 2024, and ending June 30, 2025, the following amounts, 19 or so much thereof as is necessary, to be used for the purposes 20 designated: 21 a. IOWA STATE UNIVERSITY OF SCIENCE AND TECHNOLOGY 22 In cooperation with the economic development authority, for 23 support of a biosciences innovation ecosystem, to strengthen 24 Iowas leadership positions in the area of bio-based chemicals, 25 digital agriculture, vaccines, and medical devices, including 26 salaries, support, maintenance, and miscellaneous purposes, and 27 for not more than the following full-time equivalent positions: 28 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2,963,995 29 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . FTEs 8.40 30 b. STATE UNIVERSITY OF IOWA 31 In cooperation with the economic development authority, for 32 support of a biosciences innovation ecosystem, to strengthen 33 Iowas leadership positions in the area of bio-based chemicals, 34 digital agriculture, vaccines, and medical devices, including 35 -18- LSB 5002SV (1) 90 ko/ns 18/ 20
S.F. 2432 salaries, support, maintenance, and miscellaneous purposes, and 1 for not more than the following full-time equivalent positions: 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,000,000 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . FTEs 4.35 4 c. UNIVERSITY OF NORTHERN IOWA 5 For equipment and technology to expand the universitys 6 additive manufacturing capabilities related to investment 7 castings technology and industry support, including salaries, 8 support, maintenance, and miscellaneous purposes, and for not 9 more than the following full-time equivalent positions: 10 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 394,321 11 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . FTEs 2.73 12 The university of northern Iowa shall make a good-faith 13 effort to coordinate with private entities to seek moneys to 14 supplement this appropriation to support the expansion of the 15 universitys additive manufacturing capabilities. 16 2. Notwithstanding section 8.33 , moneys appropriated in 17 subsection 1, paragraphs a and b, that remain unencumbered 18 or unobligated at the close of the fiscal year shall not revert 19 but shall remain available for expenditure for the purposes 20 designated until the close of the succeeding fiscal year. 21 EXPLANATION 22 The inclusion of this explanation does not constitute agreement with 23 the explanations substance by the members of the general assembly. 24 This bill relates to and makes appropriations for the 25 economic development of the state. 26 The bill appropriates moneys for FY 2024-2025 from 27 the general fund of the state to the economic development 28 authority, the Iowa finance authority, the public employment 29 relations board, the department of workforce development, 30 Iowa state university of science and technology, the state 31 university of Iowa, and the university of northern Iowa. 32 The bill appropriates moneys for FY 2024-2025 from the 33 Iowa skilled worker and job creation fund to the economic 34 development authority, the department of workforce development, 35 -19- LSB 5002SV (1) 90 ko/ns 19/ 20
S.F. 2432 and the state board of regents and institutions under the 1 control of the board. 2 For FY 2024-2025, the bill limits standing appropriations 3 for the world food prize, certain operational support grants, 4 community cultural grants, and regional tourism marketing. 5 The bill transfers $100,000 of the moneys collected by the 6 insurance division in excess of the anticipated gross revenues 7 under Code section 505.7 to the economic development authority. 8 The bill appropriates moneys for FY 2024-2025 from the 9 special employment security contingency fund and interest 10 earned on the unemployment compensation reserve fund to the 11 department of workforce development. 12 Moneys credited to the state by the U.S. secretary of 13 treasury pursuant to section 903 of the federal Social 14 Security Act are appropriated to the department of workforce 15 development. Up to $800,000 of the unemployment compensation 16 modernization incentive payments made to the states 17 unemployment trust fund account as a special transfer under 18 section 903 of the federal Social Security Act are appropriated 19 to the department of workforce development for modification 20 of space for unemployment insurance administrative law judge 21 offices and conference rooms for unemployment insurance appeal 22 hearings. 23 The auditor of state is requested to review the audit of the 24 Iowa finance authority performed by the auditor hired by the 25 authority. 26 The bill requires the economic development authority, the 27 vocational rehabilitation services division of the department 28 of workforce development, the state board of regents, and Iowa 29 state university of science and technology to submit various 30 reports to the general assembly. 31 -20- LSB 5002SV (1) 90 ko/ns 20/ 20