House Study Bill 221 - Introduced SENATE/HOUSE FILE _____ BY (PROPOSED ECONOMIC DEVELOPMENT AUTHORITY BILL) A BILL FOR An Act relating to matters under the purview of the 1 economic development authority and the Iowa finance 2 authority including the strategic infrastructure program, 3 brownfield, grayfield, and redevelopment tax credits, 4 community attraction and tourism, vision Iowa, sports 5 tourism marketing, the historic preservation tax credit, 6 homelessness, the title guaranty board, and arts and 7 culture, and including applicability and retroactive 8 applicability provisions. 9 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 10 TLSB 1410XD (12) 91 nls/ko
S.F. _____ H.F. _____ DIVISION I 1 STRATEGIC INFRASTRUCTURE PROGRAM 2 Section 1. Section 15.117A, subsection 6, paragraph c, Code 3 2025, is amended by striking the paragraph. 4 Sec. 2. Section 15.313, subsection 3, unnumbered paragraph 5 1, Code 2025, is amended to read as follows: 6 The Iowa innovation council A committee appointed pursuant 7 to section 15.117A, subsection 7, shall review each application 8 received by the economic development authority for financial 9 assistance under the program and shall make recommendations to 10 the board regarding all of the following: 11 DIVISION II 12 BROWNFIELDS, GRAYFIELDS, AND REDEVELOPMENT TAX CREDITS 13 Sec. 3. Section 15.291, subsections 3 and 11, Code 2025, are 14 amended by striking the subsections. 15 Sec. 4. Section 15.293A, subsection 3, unnumbered paragraph 16 1, Code 2025, is amended to read as follows: 17 The amount of the tax credit shall be determined by the board 18 in conjunction with the council. However, the tax credit and 19 shall not exceed the following amount, as applicable: 20 Sec. 5. Section 15.293B, subsection 1, paragraphs b, d, and 21 h, Code 2025, are amended to read as follows: 22 b. The authority shall accept and , in conjunction with 23 the council, review applications for tax credits provided in 24 section 15.293A and , with the approval of the council, make tax 25 credit award recommendations regarding the applications to the 26 board. The authority may engage outside experts to complete a 27 technical, financial, or other review. 28 d. Upon review of an application, the authority may 29 register the project with the redevelopment tax credits 30 program. If the authority registers the project, the authority 31 may , in conjunction with the council, make a preliminary 32 determination as to the amount of tax credit for which an award 33 recommendation will be made to the board. 34 h. If the applicant for a tax credit provided in section 35 -1- LSB 1410XD (12) 91 nls/ko 1/ 21
S.F. _____ H.F. _____ 15.293A has also applied to an agency of the federal government 1 or to the authority, the board, or any other agency of state 2 government for additional financial assistance, the authority , 3 the council, and the board shall consider the amount of funding 4 to be received from such public sources when making a tax 5 credit award pursuant to this section . 6 Sec. 6. Section 15.293B, subsection 1, paragraph f, 7 subparagraph (1), Code 2025, is amended to read as follows: 8 (1) All completed applications shall be reviewed and scored 9 on a competitive basis by the council and the board authority . 10 In reviewing and scoring applications, the council and the 11 board authority may consider any factors the council and board 12 deem authority deems appropriate for a competitive application 13 process, including but not limited to the financial need, 14 quality, and feasibility of a qualifying redevelopment project. 15 Sec. 7. Section 15.293B, subsection 2, paragraph c, Code 16 2025, is amended to read as follows: 17 c. Any other information deemed necessary by the board 18 and the council authority to review and score the application 19 pursuant to subsection 1 . 20 Sec. 8. Section 15.293B, subsections 4 and 5, Code 2025, are 21 amended to read as follows: 22 4. A registered project shall be completed within thirty 23 months of the date the project was registered unless the 24 authority, upon recommendation of the council and with the 25 approval of the board, provides additional time to complete the 26 project. If the registered project is not completed within 27 the time required, the project is not eligible to claim a 28 redevelopment tax credit provided in section 15.293A . 29 5. a. The investor shall engage a certified public 30 accountant authorized to practice in this state to conduct an 31 examination of the project in accordance with the American 32 institute of certified public accountants statements on 33 standards for attestation engagements. Upon completion of a 34 registered project, an audit of the project, completed by an 35 -2- LSB 1410XD (12) 91 nls/ko 2/ 21
S.F. _____ H.F. _____ independent certified public accountant licensed in this state, 1 the examination, along with a statement of the amount of final 2 qualifying investment, shall be submitted to the authority. 3 b. Upon review of the audit and verification of the amount 4 of the qualifying investment, examination and statement 5 submitted pursuant to paragraph a , the authority may issue a 6 tax credit certificate to the investor stating the amount of 7 tax credit under section 15.293A the investor may claim. 8 Sec. 9. REPEAL. Sections 15.292, 15.293, 15.294, and 9 15.295, Code 2025, are repealed. 10 Sec. 10. TRANSFER OF MONEYS. On the effective date of this 11 division of this Act, any unencumbered or unobligated moneys 12 remaining in the brownfield redevelopment fund created in 13 section 15.293 are transferred to a fund or funds established 14 pursuant to section 15.335B, subsection 1, paragraph a, as 15 determined by the economic development authority. 16 DIVISION III 17 COMMUNITY ATTRACTION AND TOURISM, AND VISION IOWA REQUIRED 18 BENEFITS 19 Sec. 11. REPEAL. Section 15F.106, Code 2025, is repealed. 20 Sec. 12. APPLICABILITY. This division of this Act applies 21 to an applicant awarded financial assistance under both the 22 vision Iowa program established in section 15F.302, and the 23 community attraction and tourism program established in section 24 15F.202, on or after the effective date of this division of 25 this Act. 26 Sec. 13. RETROACTIVE APPLICABILITY. This division of this 27 Act applies retroactively to an applicant awarded financial 28 assistance under both the vision Iowa program established in 29 section 15F.302, and the community attraction and tourism 30 program established in section 15F.202, prior to the effective 31 date of this division of this Act. 32 DIVISION IV 33 COMMUNITY ATTRACTION AND TOURISM PROGRAM, AND SPORTS TOURISM 34 MARKETING AND INFRASTRUCTURE PROGRAM APPLICATION REVIEW 35 -3- LSB 1410XD (12) 91 nls/ko 3/ 21
S.F. _____ H.F. _____ Sec. 14. Section 15F.203, subsection 2, Code 2025, is 1 amended to read as follows: 2 2. A The director of the authority shall appoint a review 3 committee composed of five members of the board shall with 4 relevant expertise to review community attraction and tourism 5 program applications forwarded to the board and . The review 6 committee shall make recommendations regarding the applications 7 to the board. 8 Sec. 15. Section 15F.402, subsection 2, Code 2025, is 9 amended to read as follows: 10 2. A The director of the authority shall appoint a review 11 committee composed of five members of the board shall with 12 relevant expertise to review sports tourism marketing and 13 infrastructure program applications forwarded to the board and . 14 The review committee shall make recommendations regarding the 15 applications to the authority. 16 DIVISION V 17 HISTORIC PRESERVATION TAX CREDIT 18 Sec. 16. Section 404A.1, subsection 2, Code 2025, is amended 19 by striking the subsection. 20 Sec. 17. Section 404A.1, subsection 7, Code 2025, is amended 21 by adding the following new paragraph: 22 NEW PARAGRAPH . d. The property is not a single-family 23 dwelling unit, unless the project will result in two or more 24 new single-family dwelling units that were not available 25 for occupancy as residential housing during the immediately 26 preceding consecutive six months prior to commencement of 27 the project, and the dwelling units are located in the same 28 neighborhood, as confirmed by the authority. The two or more 29 new single-family dwelling units must be made available for 30 occupancy as a result of the rehabilitation project. The 31 authority may promulgate by rule criteria used by the authority 32 to determine if a property is a single-family dwelling unit, 33 and qualifies as a qualified rehabilitation project under this 34 paragraph. 35 -4- LSB 1410XD (12) 91 nls/ko 4/ 21
S.F. _____ H.F. _____ Sec. 18. Section 404A.1, Code 2025, is amended by adding the 1 following new subsection: 2 NEW SUBSECTION . 8. Registration date means the date on 3 which the authority notifies an eligible taxpayer of successful 4 registration of the taxpayers qualified rehabilitation project 5 pursuant to section 404A.3, subsection 2. 6 Sec. 19. Section 404A.3, subsection 3, paragraph b, 7 subparagraphs (4) and (5), Code 2025, are amended to read as 8 follows: 9 (4) The commencement date of by which the qualified 10 rehabilitation project must commence , which shall not be no 11 later than the end of the fiscal year in which the agreement 12 is entered into one calendar year from the registration date . 13 Upon application of the eligible taxpayer, the authority may, 14 at the discretion of the authority, extend the date by which 15 the qualified rehabilitation project must commence up to an 16 additional twelve consecutive months. 17 (5) (a) The completion date of by which the qualified 18 rehabilitation project , which shall be within thirty-six 19 months of the commencement date must be completed, which shall 20 be no later than three consecutive calendar years from the 21 registration date . The qualified rehabilitation project shall 22 be considered complete as of the date the property that is the 23 subject of the qualified rehabilitation project is placed in 24 service, as described in 26 U.S.C. 47. 25 (b) Upon application of the eligible taxpayer, the 26 authority may, at the discretion of the authority, extend the 27 date by which the qualified rehabilitation project must be 28 complete up to an additional twelve consecutive months. 29 (c) Upon application of the eligible taxpayer made prior 30 to the expiration of an extension under subparagraph (b), the 31 authority may, at the discretion of the authority, extend 32 the date by which the qualified rehabilitation project must 33 be complete up to an additional twelve consecutive months. 34 The qualified eligible taxpayer must substantiate to the 35 -5- LSB 1410XD (12) 91 nls/ko 5/ 21
S.F. _____ H.F. _____ satisfaction of the authority that the requested extension is 1 warranted due to extenuating circumstances outside the control 2 of the eligible taxpayer. 3 (d) An application by an eligible taxpayer under 4 subparagraph division (b) or (c) shall be made in the manner 5 and form prescribed by the authority by rule. 6 Sec. 20. Section 404A.4, subsection 1, paragraph a, 7 unnumbered paragraph 1, Code 2025, is amended to read as 8 follows: 9 Except as provided in subsections 2 , and 3 , and 4, the 10 authority shall not award in any one fiscal year an amount of 11 tax credits provided in section 404A.2 in excess of forty-five 12 million dollars. 13 Sec. 21. Section 404A.4, Code 2025, is amended by adding the 14 following new subsection: 15 NEW SUBSECTION . 4. a. If, during the fiscal year beginning 16 July 1, 2025, or any fiscal year thereafter, the authority 17 receives an application for a qualified rehabilitation project 18 with qualified rehabilitation expenditures that, if registered 19 by the authority, makes the eligible taxpayer eligible for tax 20 credits of ten million dollars or more, the authority may award 21 tax credits during the fiscal year in which the application 22 is received in an amount not to exceed twenty percent more 23 than the maximum aggregate tax credit award limit specified in 24 subsection 1. 25 b. Tax credits awarded pursuant to this subsection shall be 26 considered for purposes of calculating the maximum aggregate 27 tax credits awarded pursuant to subsection 1 in the immediately 28 succeeding fiscal year. 29 DIVISION VI 30 HOMELESSNESS IOWA FINANCE AUTHORITY 31 Sec. 22. Section 16.5F, subsection 3, Code 2025, is amended 32 to read as follows: 33 3. a. The authority shall may adopt rules pursuant to 34 chapter 17A for carrying out the duties of the authority 35 -6- LSB 1410XD (12) 91 nls/ko 6/ 21
S.F. _____ H.F. _____ pursuant to this section . 1 b. The authority shall may establish internal rules of 2 procedure consistent with the provisions of this section . 3 c. Rules adopted or internal rules of procedure established 4 pursuant to paragraph a or b shall be consistent with the 5 requirements of the federal McKinney-Vento Homeless Assistance 6 Act, 42 U.S.C. 11301 et seq. 7 DIVISION VII 8 TITLE GUARANTY BOARD ELIMINATION 9 Sec. 23. Section 16.1A, subsection 5, Code 2025, is amended 10 to read as follows: 11 5. The board may, by resolution, delegate to the 12 agricultural development board , title guaranty division board , 13 director, or other authority employee such of its powers, under 14 such terms and conditions, as it deems appropriate. 15 Sec. 24. Section 16.2A, Code 2025, is amended by striking 16 the section and inserting in lieu thereof the following: 17 16.2A Title guaranty division. 18 A title guaranty division is created within the authority. 19 The division may also be referred to as Iowa title guaranty. 20 The powers of the division relating to the issuance of 21 title guaranties are vested in and shall be exercised by the 22 board. The director shall appoint an attorney as director 23 of the division. The appointment of, and compensation for, 24 the division director shall be exempt from the merit system 25 under chapter 8A, subchapter IV, part 2. The net earnings of 26 the division, beyond that necessary for reserves, backing, 27 guaranties issued, or to otherwise implement the public 28 purposes and programs authorized, shall not inure to the 29 benefit of any person other than the state and are subject to 30 section 16.2, subsection 9. 31 Sec. 25. Section 16.91, subsections 1, 3, and 6, Code 2025, 32 are amended to read as follows: 33 1. The authority , through the Iowa title guaranty division , 34 shall initiate and operate a program in which the division 35 -7- LSB 1410XD (12) 91 nls/ko 7/ 21
S.F. _____ H.F. _____ shall offer guaranties of real property titles in this state. 1 The terms, conditions, and form of the guaranty contract shall 2 be forms approved by the division board. The division shall 3 fix a charge for the guaranty in an amount sufficient to permit 4 the program to operate on a self-sustaining basis, including 5 payment of administrative costs and the maintenance of an 6 adequate reserve against claims under the Iowa title guaranty 7 program. A title guaranty fund is created in the office of 8 the treasurer of state. Funds collected under this program 9 shall be placed in the title guaranty fund and are available 10 to pay all claims, necessary reserves and all administrative 11 costs of the Iowa title guaranty program. Moneys in the fund 12 shall not revert to the general fund and interest on the moneys 13 in the fund shall be deposited in the housing trust fund 14 established created in section 16.181 and shall not accrue to 15 the general fund. If the authority board in consultation with 16 the division board determines that there are surplus funds in 17 the title guaranty fund after providing for adequate reserves 18 and operating expenses of the division, the surplus funds shall 19 be transferred to the housing assistance fund created pursuant 20 to section 16.40 . 21 3. With the approval of the authority board , the division 22 and its board shall consult with the insurance division of the 23 department of insurance and financial services in developing 24 a guaranty contract acceptable to the secondary market and 25 developing any other feature of the program with which the 26 insurance division may have special expertise. Except as 27 provided in this subsection , the Iowa title guaranty program 28 is not subject to the jurisdiction of or regulation by the 29 insurance division or the commissioner of insurance. 30 6. Prior to the issuance of a title guaranty, the division 31 shall require evidence that an abstract of title to the 32 property in question has been brought up-to-date and certified 33 by a participating abstractor in a form approved by division 34 rules acceptable to the division, and a title opinion issued by 35 -8- LSB 1410XD (12) 91 nls/ko 8/ 21
S.F. _____ H.F. _____ a participating attorney in the form approved in the rules a 1 form acceptable to the division stating the attorneys opinion 2 as to the title. The division shall require evidence of the 3 abstract being brought up-to-date and the abstractor shall 4 retain evidence of the abstract as determined by the board 5 division . 6 Sec. 26. Section 16.92, subsection 1, paragraph d, Code 7 2025, is amended by striking the paragraph. 8 Sec. 27. Section 16.92, subsection 1, paragraph e, Code 9 2025, is amended to read as follows: 10 e. Mortgage means a mortgage or mortgage lien on an 11 interest in real property in this state given to secure a loan 12 in an original principal amount equal to or less than the 13 maximum principal amount as determined by the division board 14 and adopted by the authority pursuant to rules promulgated 15 under chapter 17A . 16 Sec. 28. Section 16.93, subsection 1, unnumbered paragraph 17 1, Code 2025, is amended to read as follows: 18 The authority , through the Iowa title guaranty division , 19 may issue a closing protection letter to a person to whom a 20 proposed title guaranty is to be issued, upon the request of 21 the person, if the division issues a commitment for title 22 guaranty or title guaranty certificate. The closing protection 23 letter shall conform to the terms of coverage and form of the 24 instrument as approved by the division board and may indemnify 25 a person to whom a proposed title guaranty is to be issued 26 against loss of settlement funds due to only the following acts 27 of the divisions named participating attorney, participating 28 abstractor, or closer: 29 Sec. 29. Section 16.93, subsection 3, Code 2025, is amended 30 to read as follows: 31 3. The division board shall establish the amount of coverage 32 to be provided and may distinguish between classes of property 33 including, but not limited to, residential, agricultural, or 34 commercial, provided that the total amount of coverage provided 35 -9- LSB 1410XD (12) 91 nls/ko 9/ 21
S.F. _____ H.F. _____ by the closing protection letter shall not exceed the amount 1 of the commitment or title guaranty to be issued. Liability 2 under the closing protection letter shall be coextensive with 3 liability under the certificate to be issued in connection with 4 a transaction such that payments under the terms of the closing 5 protection letter shall reduce by the same amount the liability 6 under the title guaranty certificate and payment under the 7 title guaranty certificate shall reduce the liability under the 8 terms of the closing protection letter. 9 DIVISION VIII 10 ARTS AND CULTURE 11 Sec. 30. Section 15.108, subsection 7, Code 2025, is amended 12 to read as follows: 13 7. Cultural affairs. To develop the states interest in 14 the areas of the arts, history, and other cultural matters. To 15 carry out this responsibility, the authority shall: 16 a. Accept, receive, and administer grants or other funds or 17 gifts from public or private agencies, including the federal 18 government, for the authority. 19 b. Administer the Iowa cultural trust, as advised and 20 assisted by the Iowa arts council, as provided in subchapter 21 II, part 30 , and do all of the following: 22 (1) Develop and adopt by rule criteria for the issuance 23 of trust fund credits by measuring the efforts of qualified 24 organizations to increase their endowment or other resources 25 for the promotion of the arts, history, or the sciences and 26 humanities in Iowa. For purposes of this paragraph, qualified 27 organization means a tax-exempt, nonprofit organization 28 whose primary mission is to promote the arts, history, or the 29 sciences and humanities in Iowa. If the authority determines 30 that a qualified organization has increased the amount of the 31 qualified organizations endowment and other resources, the 32 authority shall certify the amount of increase in the form of 33 trust fund credits to the treasurer, who shall deposit in the 34 Iowa cultural trust fund, from moneys received for purposes 35 -10- LSB 1410XD (12) 91 nls/ko 10/ 21
S.F. _____ H.F. _____ of the trust fund as provided in section 15.479, subsection 1 2 , an amount equal to the trust fund credits. If the amount 2 of the trust fund credits issued by the authority exceeds the 3 amount of moneys available to be deposited in the trust fund as 4 provided in section 15.479, subsection 2 , the outstanding trust 5 fund credits shall not expire but shall be available to draw 6 down additional moneys which become available to be deposited 7 in the trust fund as provided in section 15.479, subsection 2 . 8 (2) Develop and implement, in accordance with subchapter 9 II, part 30 , a grant application process for grants issued to 10 qualified organizations. 11 (3) Develop and adopt by rule criteria for the approval of 12 Iowa cultural trust grants. The criteria shall include but 13 shall not be limited to the future stability and sustainability 14 of a qualified organization. 15 (4) Compile, in consultation with the Iowa arts council, 16 a list of grant applications recommended for funding in 17 accordance with the amount available for distribution as 18 provided in section 15.481, subsection 3 . 19 (5) Monitor the allocation and use of grant moneys by all 20 qualified organizations to determine whether moneys are used 21 in accordance with the provisions of this paragraph b and 22 subchapter II, part 30 . 23 c. b. Design a comprehensive, statewide, long-range plan 24 with the assistance of the Iowa arts council to develop the 25 arts in Iowa. The authority is designated as the state agency 26 for carrying out the plan. 27 d. c. By rule, establish Establish advisory groups as 28 necessary for the receipt of federal funds or grants or the 29 administration of any of the authoritys programs. 30 e. Develop and implement fee-based educational programming 31 opportunities, including preschool programs, related to arts, 32 history, and other cultural matters for Iowans of all ages. 33 f. Conduct surveys of existing art and cultural programs 34 and activities within the state, including but not limited to 35 -11- LSB 1410XD (12) 91 nls/ko 11/ 21
S.F. _____ H.F. _____ music, theater, dance, painting, sculpture, architecture, and 1 allied arts and crafts. The authority shall submit, or include 2 as part of the annual report under section 15.107B , a report 3 on the survey to the governor and to the general assembly no 4 later than ten calendar days after the commencement of each 5 first session of the general assembly recommending appropriate 6 legislation or other action as the authority deems appropriate. 7 g. d. Establish and administer a film office. The purpose 8 of the film office is to assist legitimate film, television, 9 and video producers in Provide technical assistance for the 10 production of film, television, and video projects in the 11 state , and to increase the fiscal impact on the states economy 12 of film, television, and video projects produced in the state . 13 Sec. 31. Section 15.274, Code 2025, is amended to read as 14 follows: 15 15.274 Promotional program for national historic landmarks 16 and cultural and entertainment districts. 17 The economic development authority, in cooperation with 18 the state department of transportation, shall establish 19 and administer a program designed to promote knowledge of 20 and access to buildings, sites, districts, structures, and 21 objects located in this state that have been designated by the 22 secretary of the interior of the United States as a national 23 historic landmark, unless the national historic landmark is 24 protected under section 22.7, subsection 20 , and certified 25 cultural and entertainment districts, as established pursuant 26 to section 15.438 . The program shall be designed to maximize 27 the visibility and visitation of national historic landmarks 28 in this state and buildings, sites, structures, and objects 29 located in certified cultural and entertainment districts, 30 as established pursuant to section 15.438 . Methods used to 31 maximize the visibility and visitation of such locations may 32 include the use of tourism literature, signage on highways, 33 maps of the state and cities, and internet sites. For purposes 34 of this section , highway means the same as defined in section 35 -12- LSB 1410XD (12) 91 nls/ko 12/ 21
S.F. _____ H.F. _____ 325A.1 . 1 Sec. 32. Section 15.436, Code 2025, is amended by striking 2 the section and inserting in lieu thereof the following: 3 15.436 Arts and culture enhancement fund. 4 1. The economic development authority shall, pursuant 5 to section 15.106A, subsection 1, paragraph o , establish 6 the arts and culture enhancement fund to be used for the 7 purposes of this section. The fund shall consist of any moneys 8 appropriated by the general assembly for purposes of this 9 section and any other moneys that are lawfully available to 10 the authority. Notwithstanding section 12C.7, subsection 2, 11 interest or earnings on moneys in the fund shall accrue to 12 the authority and shall be used for purposes of this section. 13 Notwithstanding section 8.33, moneys in the fund at the end of 14 each fiscal year shall not revert to any other fund but shall 15 remain in the fund for expenditure for subsequent fiscal years. 16 2. The authority shall allocate moneys in the arts and 17 culture enhancement fund in appropriate amounts to be used for 18 the following purposes: 19 a. To provide support to municipal and nonprofit arts and 20 cultural organizations that serve as significant attractions 21 or community resources. 22 b. To support artists and entities that foster artistic and 23 cultural expression, promote lifelong learning and engagement 24 in the arts, advance community development goals, or emphasize 25 Iowas diverse heritage through the creation, performance, or 26 presentation of artworks. 27 c. To increase access to arts and culture in rural and 28 underserved communities in the state. 29 d. For the promotion of and investment in film, television, 30 and video projects produced in the state. 31 e. To address other goals and priorities as reflected in 32 the comprehensive, statewide, long-range plan designed by the 33 authority with the assistance of the Iowa arts council pursuant 34 to section 15.108, subsection 7. 35 -13- LSB 1410XD (12) 91 nls/ko 13/ 21
S.F. _____ H.F. _____ f. For administrative costs related to this section. 1 3. The authority may adopt by rule eligibility and priority 2 criteria for allocation of moneys in the arts and culture 3 enhancement fund. 4 Sec. 33. Section 15.465, subsection 2, Code 2025, is amended 5 to read as follows: 6 2. The term of office of each member of the Iowa arts 7 council is three years. The governor shall designate council 8 may elect a chairperson and a vice chairperson from the members 9 of the council to serve at the pleasure of the governor . All 10 vacancies shall be filled for the balance of any unexpired term 11 in the same manner as original appointments. The members of 12 the council shall not receive compensation for their services, 13 but shall be reimbursed for their actual and necessary expenses 14 incurred in the performance of their duties as members of the 15 council. Members may also be eligible for compensation as 16 provided in section 7E.6 . 17 Sec. 34. Section 15.466, Code 2025, is amended to read as 18 follows: 19 15.466 Duties of Iowa arts council. 20 The Iowa arts council shall review programs to be supported 21 and make recommendations on the programs to the director to 22 ensure that Iowa citizens and communities have access to the 23 cultural, civic, economic, and educational benefits of the 24 arts . The council may solicit public input including but not 25 limited to input on the comprehensive, statewide, long-range 26 plan created by the authority with the assistance of the Iowa 27 arts council pursuant to section 15.108, subsection 7. 28 Sec. 35. Section 15H.6, subsection 3, Code 2025, is amended 29 to read as follows: 30 3. The capacity building activities shall be targeted in 31 communities that are already working with existing community 32 improvement programs, including but not limited to the Iowa 33 great places program established under section 15.439 , the 34 green streets and main street Iowa programs administered by 35 -14- LSB 1410XD (12) 91 nls/ko 14/ 21
S.F. _____ H.F. _____ the economic development authority, and disaster remediation 1 activities by communities located within an area declared to be 2 a disaster area in a declaration issued by the president of the 3 United States or the governor. 4 Sec. 36. Section 99F.11, subsection 4, paragraph d, 5 subparagraph (1), Code 2025, is amended to read as follows: 6 (1) Five hundred twenty thousand dollars is appropriated 7 each fiscal year to the economic development authority with 8 one-half of the moneys allocated for operational support grants 9 and the remaining one-half allocated for the community cultural 10 grants program established under for deposit in the arts and 11 culture enhancement fund established in section 15.436 . 12 Sec. 37. REPEAL. Sections 15.437, 15.438, 15.439, 15.440, 13 15.441, 15.476, 15.477, 15.478, 15.479, 15.481, and 15.482, 14 Code 2025, are repealed. 15 Sec. 38. TRANSFER OF MONEYS. On the effective date of this 16 division of this Act, all unencumbered and unobligated moneys 17 remaining in the Iowa great places program fund created in 18 section 15.440, the Iowa cultural trust fund created in section 19 15.479, and the Iowa cultural trust grant account created 20 in section 15.482 are transferred to the arts and culture 21 enhancement fund established pursuant to section 15.436, as 22 amended by this division of this Act. 23 DIVISION IX 24 CONFORMING CHANGES 25 Sec. 39. Section 16.6, subsection 4, Code 2025, is amended 26 to read as follows: 27 4. The director may establish administrative divisions 28 within the authority in order to most efficiently and 29 effectively carry out the authoritys responsibilities, 30 provided that any creation or modification of authority 31 divisions be established only after consultation with the board 32 of the authority . 33 Sec. 40. Section 16.64, subsection 1, Code 2025, is amended 34 to read as follows: 35 -15- LSB 1410XD (12) 91 nls/ko 15/ 21
S.F. _____ H.F. _____ 1. The authority shall publish a notice of intention to 1 issue bonds or notes. After sixty days from the date of 2 publication of the notice, an action shall not be brought 3 questioning the legality of any bonds or notes or the power of 4 the authority to issue any bonds or notes or to the legality 5 of any proceedings in connection with the authorization or 6 issuance of the bonds or notes after determination by the board 7 of the authority to proceed with the issuance of the bonds or 8 notes. 9 EXPLANATION 10 The inclusion of this explanation does not constitute agreement with 11 the explanations substance by the members of the general assembly. 12 This bill relates to matters under the purview of the 13 economic development authority and the Iowa finance authority 14 including the strategic infrastructure program, brownfield, 15 grayfield, and redevelopment tax credits, community attraction 16 and tourism, vision Iowa, sports tourism marketing, the 17 historic preservation tax credit, homelessness, the title 18 guaranty board, and arts and culture. 19 Division I eliminates the requirement that the Iowa 20 innovation council review and make recommendations on all 21 applications received by the Iowa economic development 22 authority (IEDA) for financial assistance under the Iowa 23 strategic infrastructure program, and instead requires a 24 committee appointed by the IEDA director to conduct a review 25 and make recommendations. 26 Division II repeals the brownfield redevelopment program, 27 fund, and advisory council (council). 28 The bill requires that the amount of a redevelopment tax 29 credit be determined by members of the IEDA appointed by the 30 governor (the board), rather than determined by the board 31 in conjunction with the council as required under current 32 law. The IEDA shall accept and review applications for the 33 redevelopment tax credit and make award recommendations to 34 the board, rather than accept and review applications in 35 -16- LSB 1410XD (12) 91 nls/ko 16/ 21
S.F. _____ H.F. _____ conjunction with the council as required under current law. 1 IEDA may engage outside experts to complete a technical, 2 financial, or other review. The bill makes conforming changes 3 related to elimination of the council. 4 Under current law, upon completion of a registered project 5 for redevelopment tax credits, an audit of the project 6 completed by an independent certified public accountant (CPA) 7 shall be submitted to the IEDA. Under the bill, the investor 8 shall engage a CPA to conduct an examination of the project 9 and submit the examination, and a statement of the amount of 10 final qualifying investments, to the IEDA. Upon review of the 11 examination and statement, the IEDA may issue a tax credit 12 certificate to the investor. 13 On the effective date of the bill, all unencumbered and 14 unobligated moneys remaining in the brownfield redevelopment 15 fund are transferred to a fund or funds established pursuant to 16 Code section 15.335B, as determined by the IEDA. 17 Division III eliminates the requirement that an applicant 18 awarded financial assistance under both the vision Iowa program 19 and the community attraction and tourism program provide and 20 pay at least 50 percent of the cost of a standard medical 21 insurance plan for all full-time employees after the completion 22 of the project for which financial assistance was received. 23 This division applies to applicants awarded financial 24 assistance under both programs on or after the effective date 25 of the bill, and applies retroactively to applicants awarded 26 financial assistance under both programs prior to the effective 27 date of the bill. 28 Under division IV, the director of the IEDA shall appoint a 29 review committee composed of members with relevant expertise to 30 review community attraction and tourism program applications 31 and sports tourism marketing and infrastructure program 32 applications. Under current law, the review committee is 33 composed of five members of the IEDA board. 34 Division V requires, in addition to existing requirements 35 -17- LSB 1410XD (12) 91 nls/ko 17/ 21
S.F. _____ H.F. _____ for the historic preservation tax credit program (historic 1 tax program) under current law, for a project for the 2 rehabilitation of property to be considered a qualified 3 rehabilitation project (project), that the property not be a 4 single-family dwelling unit, unless the project will result 5 in two or more new single-family dwelling units that were 6 not available for occupancy for at least six months prior to 7 the project, and the dwelling units are located in the same 8 neighborhood as confirmed by the IEDA. The single-family 9 dwelling units must be made available for occupancy as a result 10 of the project. The IEDA may promulgate rules that specify the 11 criteria used to determine if a property is a single-family 12 dwelling unit, and to determine if a property is a qualified 13 rehabilitation project. 14 Under current law, upon successful registration of a 15 project under the historic tax program, the eligible taxpayer 16 (taxpayer) shall enter into an agreement with the IEDA that 17 contains mutually agreeable terms and conditions including the 18 commencement date of the project, which shall not be later than 19 the end of the fiscal year in which the agreement is entered 20 into, and the completion date of the project, which shall be 21 within 36 months of the commencement date. Under the bill, 22 the date by which the project must commence shall be no later 23 than one calendar year from the registration date, except 24 that upon application of the taxpayer the IEDA may extend the 25 date of commencement up to 12 additional months. The date by 26 which the project must be completed shall be no later than 27 three consecutive calendar years from the registration date, 28 except that upon application of the taxpayer, the IEDA may 29 extend the date of commencement up to another 12 months. The 30 project is complete as of the date the property is placed in 31 service. Upon application of the taxpayer made prior to the 32 expiration of the 12-month extension, the IEDA may extend the 33 date by which the project must be completed up to an additional 34 12 months. The taxpayer must substantiate that the requested 35 -18- LSB 1410XD (12) 91 nls/ko 18/ 21
S.F. _____ H.F. _____ extension is warranted due to extenuating circumstances. 1 Under the bill, the IEDA may grant historic preservation 2 tax credits beyond the aggregate tax credit award limit in one 3 fiscal year if, during that fiscal year, the IEDA receives an 4 application for a project that has qualified rehabilitation 5 expenditures that, if registered, would make the taxpayer 6 eligible for tax credits of $10 million or more. The IEDA is 7 then permitted to award tax credits during that fiscal year not 8 to exceed 20 percent more than the maximum aggregate tax credit 9 award limit. Such tax credits awarded shall be considered for 10 purposes of calculating the maximum aggregate tax credit award 11 limit in the immediately succeeding fiscal year. 12 Under division VI, the Iowa finance authority (IFA) 13 may adopt rules to carry out the duties of IFA related to 14 homelessness, and may establish internal rules of procedure, 15 consistent with the requirements of the federal McKinney-Vento 16 Homeless Assistance Act. Under current law, IFA must adopt 17 rules. 18 Division VII eliminates the title guaranty division board. 19 The powers of the title guaranty division relating to the 20 issuance of title guaranties are vested in the IFA board of 21 directors. The director of the IFA shall appoint an attorney 22 as director of the division, and the division directors 23 appointment and compensation shall be exempt from the merit 24 system. The bill makes conforming changes to Code sections 25 16.1A, 16.91, 16.92, and 16.93. 26 Division VIII is related to arts and culture. Under current 27 law, the IEDA is responsible for the Iowa cultural trust, 28 including the issuance of trust fund credits for the promotion 29 of the arts, history, or the sciences and humanities; the 30 issuance of grants for qualified organizations; developing and 31 implementing fee-based educational programming opportunities; 32 conducting surveys of existing art and cultural programs 33 and activities within the state; and the establishment and 34 administration of a film office. The bill maintains the 35 -19- LSB 1410XD (12) 91 nls/ko 19/ 21
S.F. _____ H.F. _____ responsibility for the IEDA to accept, receive, and administer 1 grants or other funds or gifts from public or private agencies; 2 to design and carry out a comprehensive, statewide, long-range 3 plan (plan) with the assistance of the Iowa arts council to 4 develop the arts in Iowa; and to establish advisory groups for 5 the receipt of federal funds or grants or the administration 6 of the IEDAs programs. Under the bill, the IEDA is no longer 7 required to establish and administer a film office. Instead, 8 the IEDA is responsible for providing technical assistance for 9 the production of film, television, and video projects in the 10 state. 11 The bill eliminates certified cultural and entertainment 12 districts. The bill eliminates the cultural grant programs 13 under current law, which requires the IEDA to establish 14 a grant program for cities and nonprofit, tax-exempt 15 community organizations for the development of community 16 programs that provide local jobs for Iowa residents and 17 promote Iowas historic, ethnic, and cultural heritages 18 through the development of festivals, music, drama, cultural 19 programs, or tourist attractions. Additionally, the IEDA 20 is required to establish a grant program which provides 21 general operating budget support to major, multidisciplinary 22 cultural organizations that demonstrate cultural and managerial 23 excellence on a continuing basis to the citizens of Iowa. 24 Instead, the bill creates the arts and culture enhancement 25 fund (enhancement fund), under which the IEDA shall allocate 26 moneys to the fund to provide support to municipal and 27 nonprofit arts and cultural organizations that serve as 28 significant attractions or community resources; to support 29 artists and entities that foster artistic and cultural 30 expression, promote lifelong learning and engagement in the 31 arts, advance community development goals, or emphasize Iowas 32 diverse heritage through artwork; to increase access to arts 33 and culture in rural and underserved communities; for the 34 promotion of and investment in film, television, and video 35 -20- LSB 1410XD (12) 91 nls/ko 20/ 21
S.F. _____ H.F. _____ projects produced in the state; and to address other goals and 1 priorities in the plan designed by the IEDA. The enhancement 2 fund consists of moneys appropriated by the general assembly 3 and any other moneys that are lawfully available to the IEDA. 4 Each fiscal year, $520,000 is appropriated from gambling 5 and sports wagering taxes to the IEDA for deposit in the 6 enhancement fund. The IEDA may establish and adopt by rule 7 eligibility and priority criteria for allocation of moneys in 8 the enhancement fund. 9 The Iowa arts council (arts council) may elect a chairperson 10 and vice chairperson from the members of the arts council, 11 rather than being designated by the governor under current law. 12 In addition to duties under current law, the arts council is 13 required to recommend programs to ensure that Iowa citizens and 14 communities have access to the cultural, civic, economic, and 15 educational benefits of the arts. 16 The bill repeals Code sections 15.437 through 15.441, 15.476 17 through 15.479, 15.481, and 15.482, eliminating the Iowa 18 cultural trust Act, including the Iowa cultural trust, trust 19 fund, grant account, and board of trustees, and eliminates the 20 arts and cultural conferences and caucuses, the cultural and 21 entertainment districts, the Iowa great places program and 22 fund, and the culture, history, and arts teams program. 23 On the effective date of this division of the bill, all 24 unencumbered and unobligated moneys remaining in the Iowa 25 great places program fund, Iowa cultural trust fund, and Iowa 26 cultural trust grant account are transferred to the arts and 27 culture enhancement fund established in the bill. 28 Division IX makes conforming changes to Code sections 16.6 29 and 16.64. 30 -21- LSB 1410XD (12) 91 nls/ko 21/ 21