General Assembly: 81 (2005 Regular GA) - Chapter 170 - Appropriations — economic development


Published: 2005-06-09

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665 LAWS OF THE EIGHTY-FIRST G.A., 2005 SESSION CH. 170

Iowa school districts have already implemented for continuous school improvement programs and to meet the requirements of the federal No Child Left Behind statute. Implementing this new system could have long-range unintended effects on existing local and state assessment systems.

I am unable to approve the item designated as a portion of Section 31, paragraph b. This sec- tion requires that $5,000 from theStudentAchievement andTeacherQuality allocation forNa- tional Board Certification Awards be used to conduct a study of the impact the national board for professional teaching standards certification of Iowa’s teachers has on student achieve- ment. This section requires a research design that would cost far more than the $5,000 in re- sources provided to complete the study. In addition, the various studies underway nationally will provide sufficient information for decision-makers in Iowa to debate continuation of this program.

I am unable to approve the item designated as Section 33, third unnumbered paragraph in its entirety. The third unnumbered paragraph of Section 33 allocates up to $1,000,000 from the Student Achievement and Teacher Quality appropriation for the value-added assessment sys- tem. This appropriation is unnecessarywith the veto of Section 19. In addition, an investment in Iowa’s high quality teaching staffwill paymoredividends than creating another assessment data base.

For the above reasons, I respectfully disapprove of the designated items in accordance with Article III, Section 16 of the Constitution of the State of Iowa. All other items inHouse File 816 are hereby approved as of this date.

Sincerely, THOMAS J. VILSACK, Governor

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CH. 170CH. 170

CHAPTER 170

APPROPRIATIONS — ECONOMIC DEVELOPMENT

H.F. 809

AN ACT relating to and making appropriations to the department of economic development, the office of the treasurer of state, certain board of regents institutions, the department of workforce development, and the public employment relations board, relatedmatters, and providing an effective date.

Be It Enacted by the General Assembly of the State of Iowa:

ECONOMIC DEVELOPMENT

Section 1. GOALS AND ACCOUNTABILITY. 1. The goals for the department of economic development shall be to expand and stimulate

the state economy, increase the wealth of Iowans, and increase the population of the state. 2. To achieve the goals in subsection 1, the department of economic development shall do

all of the following:

666LAWS OF THE EIGHTY-FIRST G.A., 2005 SESSIONCH. 170

a. Concentrate its efforts onprograms andactivities that result in commercially viable prod- ucts and services. b. Adopt practices and services consistent with free market, private sector philosophies. c. Ensure economic growth and development throughout the state.

Sec. 2. DEPARTMENTOFECONOMICDEVELOPMENT. There is appropriated from the general fund of the state to the department of economic development for the fiscal year begin- ning July 1, 2005, and ending June 30, 2006, the following amounts, or so much thereof as is necessary, to be used for the purposes designated: 1. ADMINISTRATION DIVISION a. General administration For salaries, support, maintenance, miscellaneous purposes, programs, for the transfer to

the Iowa state commission grant program, and for notmore than the following full-time equiv- alent positions:

$ 1,956,3321. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . FTEs 28.75. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

b. The department shall work with businesses and communities to continually improve the economic development climate along with the economic well-being and quality of life for Iowans. The administration division shall coordinate with other state agencies ensuring that all state departments are attentive to the needs of an entrepreneurial culture. 2. BUSINESS DEVELOPMENT DIVISION a. Business development operations For business development operations and programs, international trade, export assistance,

workforce recruitment, the partner state program, for transfer to the strategic investment fund, for transfer to the value-added agricultural products and processes financial assistance fund, salaries, support, maintenance, miscellaneous purposes, and for not more than the fol- lowing full-time equivalent positions:

$ 6,084,500. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . FTEs 57.00. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

b. The department shall establish a strong and aggressive marketing image to showcase Iowa’sworkforce, existing industry, andpotential. A priority shall be placedon recruitingnew businesses, business expansion, and retaining existing Iowa businesses. Emphasis shall also be placed on entrepreneurial development through helping to secure capital for entrepre- neurs, and developing networks and a business climate conducive to entrepreneurs and small business. c. A business creating jobs with economic development assistance through moneys appro-

priated in this subsection shall be subject to contract provisions stating that new and retained jobs shall be filled by individuals who are citizens of the United States who reside within the United States, or any person authorized to work in the United States pursuant to federal law, including legal resident aliens in theUnitedStates. Any vendorwho receives suchpublicmon- eys shall adhere to such contract provisions and provide periodic assurances as the state shall require, that the jobs are filled solely by citizens of the United States who reside within the United States, or any person authorized to work in the United States pursuant to federal law, including legal resident aliens in the United States. d. From themoneys appropriated in this subsection, the department may provide financial

assistance in the form of a grant to a community economic development entity for conducting a local workforce recruitment effort designed to recruit former citizens of the state and former students at colleges and universities in the state to meet the needs of local employers. e. From themoneys appropriated under this subsection, the departmentmay provide finan-

cial assistance to early-stage industry companies being established by women entrepreneurs. f. From themoneys appropriated under this subsection, the departmentmay provide finan-

cial assistance in the formof grants, loans, or forgivable loans for advanced research and com- mercialization projects involving value-added agriculture, advanced technology, or biotech- nology.

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1 See chapter 179, §18 herein

667 LAWS OF THE EIGHTY-FIRST G.A., 2005 SESSION CH. 170

g. Notwithstanding section 8.33, moneys appropriated in this subsection that remain unen- cumbered or unobligated at the close of the fiscal year shall not revert but shall remain avail- able for expenditure for the purposes designated until the close of the succeeding fiscal year. 3. COMMUNITY DEVELOPMENT DIVISION a. Community development programs For salaries, support,maintenance,miscellaneouspurposes, community economicdevelop-

ment programs, tourismoperations, community assistance, the film office, themainstreet and rural mainstreet programs, the school-to-career program, the community development block grant, and housing and shelter-related programs and for notmore than the following full-time equivalent positions:

$ 5,533,511. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . FTEs 61.75. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

b. The department shall encourage development of communities and quality of life to foster economic growth. The department shall prepare communities for future growth and develop- ment through development, expansion, and modernization of infrastructure. c. The department shall develop public-private partnerships with Iowa businesses in the

tourism industry, Iowa tour groups, Iowa tourism organizations, and political subdivisions in this state to assist in thedevelopment of advertisingefforts. Thedepartment shall, to the fullest extent possible, develop cooperative efforts for advertising with contributions from other sources. d. Notwithstanding section 8.33, moneys appropriated in this subsection that remain unen-

cumbered or unobligated at the close of the fiscal year shall not revert to any fund but shall remain available for expenditure for the designated purposes during the succeeding fiscal year. *e. The department shall not charge a nonprofit, public entity a fee for placement of informa-

tional materials in a welcome center.* 4. For allocating moneys for the world food prize:

$ 285,000. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Sec. 3. VISION IOWAPROGRAM—FTEAUTHORIZATION. For purposes of administra- tive duties associatedwith the vision Iowa program, the department of economic development is authorized an additional 2.25 full-time equivalent positions above those otherwise autho- rized in this Act.

Sec. 4. RURAL COMMUNITY 2000 PROGRAM. There is appropriated from loan repay- ments on loans under the former rural community 2000 program, sections 15.281 through 15.288, Code 2001, to the department of economic development for the fiscal year beginning July 1, 2005, and ending June 30, 2006, the following amounts, or somuch thereof as is neces- sary, to be used for the purposes designated: 1. For providing financial assistance to Iowa’s councils of governments that provide techni-

cal and planning assistance to local governments: $ 150,000. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

2. For the rural development program for the purposes of the program including the rural enterprise fund and collaborative skills development training:

$ 120,000. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Sec. 5. INSURANCE ECONOMIC DEVELOPMENT. There is appropriated from moneys collected by the division of insurance in excess of the anticipated gross revenues under section 505.7, subsection 3, to the department of economic development for the fiscal year beginning July 1, 2005, and ending June 30, 2006, the following amount, or so much thereof as is neces- sary, for insurance economic development and international insurance economic develop- ment:

$ 100,000. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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* Item veto; see message at end of the Act

668LAWS OF THE EIGHTY-FIRST G.A., 2005 SESSIONCH. 170

Sec. 6. COMMUNITY DEVELOPMENT LOAN FUND. Notwithstanding section 15E.120, subsection 5, there is appropriated from the Iowa community development loan fund all the moneys available during the fiscal year beginning July 1, 2005, and ending June 30, 2006, to the department of economic development for the community development program to beused by the department for the purposes of the program.

Sec. 7. WORKFORCEDEVELOPMENTFUND. There is appropriated from theworkforce development fund account created in section 15.342A, to theworkforce development fund cre- ated in section 15.343, for the fiscal year beginning July 1, 2005, and ending June 30, 2006, the following amount, for the purposes of theworkforce development fund, and for notmore than the following full-time equivalent positions:

$ 4,000,000. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . FTEs 4.00. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Sec. 8. WORKFORCEDEVELOPMENTADMINISTRATION. From funds appropriatedor transferred to or receipts credited to the workforce development fund created in section 15.343, up to $400,000 for the fiscal year beginning July 1, 2005, and ending June 30, 2006,may beused for the administration ofworkforcedevelopment activities including salaries, support, maintenance, and miscellaneous purposes and for not more than 4.00 full-time equivalent positions.

Sec. 9. JOB TRAINING FUND. Notwithstanding section 15.251, all remaining moneys in the job training fund on July 1, 2005, and anymoneys appropriated or credited to the fund dur- ing the fiscal year beginning July 1, 2005, shall be transferred to the workforce development fund established pursuant to section 15.343.

Sec. 10. IOWA STATE UNIVERSITY. 1. There is appropriated from the general fund of the state to the Iowa state university of

science and technology for the fiscal year beginning July 1, 2005, and ending June 30, 2006, the following amount, or so much thereof as is necessary, to be used for small business devel- opment centers, the science and technology research park, the institute for physical research, and for not more than the following full-time equivalent positions:

$ 2,363,557. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . FTEs 56.63. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

2. Of the moneys appropriated in subsection 1, Iowa state university shall allocate at least $550,000 for purposes of funding small business development centers. Iowa state university may allocate moneys appropriated in subsection 1 to the various small business development centers in any manner necessary to achieve the purposes of this subsection. 3. Iowa state university of science and technology shall do all of the following: a. Direct expenditures for research toward projects that will provide economic stimulus for

Iowa. b. Provide emphasis to providing services to Iowa-based companies. 4. It is the intent of the general assembly that the industrial incentive program focus on Iowa

industrial sectors and seek contributions and in-kind donations from businesses, industrial foundations, and trade associations and thatmoneys for the institute for physical research and technology industrial incentive program shall only be allocated for projects which are matched by private sector moneys for directed contract research or for nondirected research. Thematch required of small businesses as defined in section 15.102, subsection 4, for directed contract research or for nondirected research shall be $1 for each $3 of state funds. Thematch required for other businesses for directed contract research or for nondirected research shall be $1 for each $1 of state funds. Thematch required of industrial foundations or trade associa- tions shall be $1 for each $1 of state funds. Iowa state university of science and technology shall report annually to the joint appropria-

tions subcommittee on economic development and the legislative services agency the total

669 LAWS OF THE EIGHTY-FIRST G.A., 2005 SESSION CH. 170

amount of private contributions, the proportion of contributions from small businesses and other businesses, and the proportion for directed contract research and nondirected research of benefit to Iowa businesses and industrial sectors. Notwithstanding section 8.33, moneys appropriated in this section that remain unencum-

bered or unobligated at the close of the fiscal year shall not revert but shall remain available for expenditure for the purposes designated until the close of the succeeding fiscal year.

Sec. 11. UNIVERSITY OF IOWA. 1. There is appropriated from the general fund of the state to the state university of Iowa for

the fiscal year beginning July 1, 2005, and ending June 30, 2006, the following amount, or so much thereof as is necessary, to be used for the university of Iowa research park and for the advanced drug development program at the Oakdale research park, including salaries, sup- port, maintenance, equipment, miscellaneous purposes, and for not more than the following full-time equivalent positions:

$ 247,005. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . FTEs 6.00. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

2. The university of Iowa shall do all of the following: a. Direct expenditures for research toward projects that will provide economic stimulus for

Iowa. b. Provide emphasis to providing services to Iowa-based companies. 3. Notwithstanding section 8.33,moneys appropriated in this section that remainunencum-

bered or unobligated at the close of the fiscal year shall not revert but shall remain available for expenditure for the purposes designated until the close of the succeeding fiscal year.

Sec. 12. UNIVERSITY OF NORTHERN IOWA. 1. There is appropriated from the general fund of the state to the university of northern Iowa

for the fiscal year beginning July 1, 2005, and ending June 30, 2006, the following amount, or somuch thereof as is necessary, to be used for themetal casting institute, and for the institute of decision making, including salaries, support, maintenance, miscellaneous purposes, and for not more than the following full-time equivalent positions:

$ 361,291. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . FTEs 4.75. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

2. The university of northern Iowa shall do all of the following: a. Direct expenditures for research toward projects that will provide economic stimulus for

Iowa. b. Provide emphasis to providing services to Iowa-based companies. 3. Notwithstanding section 8.33,moneys appropriated in this section that remainunencum-

bered or unobligated at the close of the fiscal year shall not revert but shall remain available for expenditure for the purposes designated until the close of the succeeding fiscal year.

Sec. 13. BOARDOF REGENTSREPORT. The state board of regents shall submit a report on theprogress of regents institutions inmeeting the strategic plan for technology transfer and economic development to the secretary of the senate, the chief clerk of the house of represen- tatives, and the legislative services agency by January 15, 2006.

Sec. 14. DEPARTMENT OF WORKFORCE DEVELOPMENT. 1. There is appropriated from the general fund of the state to the department of workforce

development for the fiscal year beginning July 1, 2005, and ending June 30, 2006, the following amount, or so much thereof as is necessary, for the division of labor services, the division of workers’ compensation, the workforce development state and regional boards, the new em- ployment opportunity fund, immigration services centers, for transfer to theboiler safety fund, for transfer to the elevator safety fund, salaries, support, maintenance, miscellaneous pur- poses, and for not more than the following full-time equivalent positions:

$ 5,151,919. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . FTEs 86.45. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

670LAWS OF THE EIGHTY-FIRST G.A., 2005 SESSIONCH. 170

2. From the contractor registration fees, the division of labor services shall reimburse the department of inspections and appeals for all costs associated with hearings under chapter 91C, relating to contractor registration. 3. The division of workers’ compensation shall continue charging a $65 filing fee for work-

ers’ compensation cases. The filing fee shall be paid by the petitioner of a claim. However, the fee can be taxed as a cost and paid by the losing party, except in cases where it would im- pose an undue hardship or be unjust under the circumstances. The moneys generated by the filing fee allowed under this subsection are appropriated to the department of workforce de- velopment to be used for purposes of administering the division of workers’ compensation. 4. The department of workforce development shall maintain pilot immigration service cen-

ters that offer one-stop services to dealwith themultiple issues related to immigration and em- ployment. The pilot centers shall be designed to support workers, businesses, and communi- ties with information, referrals, job placement assistance, translation, language training, resettlement, aswell as technical and legal assistance on such issues as forms and documenta- tion. Through the coordination of local, state, and federal service providers, and through the development of partnerships with public, private, and nonprofit entities with established rec- ords of international service, these pilot centers shall seek to provide a seamless service deliv- ery system for new Iowans. 5. Notwithstanding section 8.33,moneys appropriated in this section that remainunencum-

bered or unobligated at the close of the fiscal year shall not revert but shall remain available for expenditure for the purposes designated until the close of the succeeding fiscal year.

Sec. 15. EMPLOYMENTSECURITYCONTINGENCYFUND. There is appropriated from the special employment security contingency fund to the department of workforce develop- ment for the fiscal year beginning July 1, 2005, and ending June 30, 2006, the following amounts, or so much thereof as is necessary, for the purposes designated: DIVISION OF WORKERS’ COMPENSATION For salaries, support, maintenance, and miscellaneous purposes:

$ 471,000. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Any remaining additional penalty and interest revenuemay be allocated and used to accom-

plish the mission of the department.

Sec. 16. PUBLIC EMPLOYMENT RELATIONS BOARD. There is appropriated from the general fund of the state to the public employment relations board for the fiscal year beginning July 1, 2005, and ending June 30, 2006, the following amount, or so much thereof as is neces- sary, for the purposes designated: For salaries, support, maintenance, miscellaneous purposes, and for not more than the fol-

lowing full-time equivalent positions: $ 923,850. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

FTEs 10.00. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Sec. 17. ENDOW IOWA GRANTS APPROPRIATIONS. 1. There is appropriated from the general fund of the state to the department of economic

development for the fiscal period beginning July 1, 2005, and ending June 30, 2008, the follow- ing amounts, or so much thereof as is necessary, to be used for the purpose designated: For endow Iowa grants to lead philanthropic entities pursuant to section 15E.304:

FY 2005-2006 $ 50,000. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . FY 2006-2007 $ 50,000. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . FY 2007-2008 $ 50,000. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2. Notwithstanding section 8.33, moneys that remain unexpended at the end of the fiscal

year shall not revert to any fund but shall remain available for expenditure for the designated purposes during the succeeding fiscal year.

Sec. 18. NEW SECTION. 15G.110 APPROPRIATION. For the fiscal period beginning July 1, 2005, and ending June 30, 2015, there is appropriated

671 LAWS OF THE EIGHTY-FIRST G.A., 2005 SESSION CH. 170

to the department of economic development each fiscal year fiftymillion dollars from the gen- eral fund of the state for deposit in the grow Iowa values fund.

Sec. 19. NEW SECTION. 15G.111 APPROPRIATIONS. 1. a. For the fiscal period beginning July 1, 2005, and ending June 30, 2015, there is appro-

priated each fiscal year from the grow Iowa values fund created in section 15G.108, if enacted,2

to the department of economic development thirty-five million dollars for programs adminis- tered by the department of economic development. b. Each year thatmoneys are appropriated under this subsection, the department shall allo-

cate a percentage of the moneys for each of the following types of activities: (1) Business start-ups. (2) Business expansion. (3) Business modernization. (4) Business attraction. (5) Business retention. (6) Marketing. (7) Research and development. c. Thedepartment shall require anapplicant formoneys appropriatedunder this subsection

to include in the application a statement regarding the intended return on investment. A recip- ient of moneys appropriated under this subsection shall annually submit a statement to the department regarding the progress achieved on the intended return on investment stated in the application. Thedepartment, in cooperationwith thedepartment of revenue, shall develop a method of identifying and tracking each new job created and the leveraging of moneys through financial assistance from moneys appropriated under this subsection. The depart- ment of economic development shall identify research and development activities funded through financial assistance fromnotmore than tenpercent of themoneysappropriatedunder this subsection, and, insteadof determining return on investment and job creation for the iden- tified funding, determine the potential impact on the state’s economy. d. Thedepartmentmayusemoneysappropriatedunder this subsection toprocure technical

assistance from either the public or private sector, for information technology purposes, for a statewide labor shed study, and for rail, air, or river port transportation-related purposes. Theuse ofmoneys appropriated for rail, air, or river port transportation-relatedpurposesmust be directly related to an economic development project and themoneysmust be used to lever- age other financial assistance moneys. e. Of themoneys appropriated under this subsection, the departmentmay use up to one and

one-half percent for administrative purposes. f. The Iowa economic development board shall approve or deny applications for financial

assistance providedwithmoneys appropriated under this subsection. In providing such finan- cial assistance, the board shall, whenever possible, coordinate the assistance with other pro- grams administered by the department of economic development, including the community economic betterment program established in section 15.317 and the value-added agricultural products and processes financial assistance program established in section 15E.111. g. It is the policy of this state to expand and stimulate the state economy by advancing, pro-

moting, and expanding biotechnology industries in this state. To implement this policy, the Iowa economic development board shall consider providing assistance to projects that in- crease value-added income to individuals or organizations involved in agricultural business or biotechnology projects. Such a project need not create jobs specific to the project site; how- ever, such a project must foster the knowledge and creativity necessary to promote the state’s agricultural economy and to increase employment in urban and rural areas as a result. 2. For the fiscal period beginning July 1, 2005, and ending June 30, 2015, there is appro-

priated each fiscal year from the grow Iowa values fund created in section 15G.108, if enacted,3

to the department of economic development five million dollars for financial assistance to in- stitutions of higher learning under the control of the state board of regents for capacity build-

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2 See chapter 150, §1 herein 3 See chapter 150, §1 herein

672LAWS OF THE EIGHTY-FIRST G.A., 2005 SESSIONCH. 170

ing infrastructure in areas related to technology commercialization, for marketing and busi- ness development efforts in areas related to technology commercialization, entrepreneurship, and business growth, and for infrastructure projects and programs needed to assist in the im- plementation of activities under chapter 262B, if so amended. In allocatingmoneys to institu- tions under the control of the state board of regents, the board shall require the institutions to provide a one-to-one match of additional moneys for the activities funded with moneys ap- propriated under this subsection. The state board of regents shall annually prepare a report for submission to the governor, the general assembly, and the legislative services agency re- garding the activities, projects, and programs funded with moneys appropriated under this subsection. The state board of regentsmay allocate anymoneys appropriated under this subsection and

received from the department for financial assistance to a single biosciences development or- ganization determined by the department to possess expertise in promoting the area of biosci- ence entrepreneurship. The organization must be composed of representatives of both the public and the private sector and shall be composed of subunits or subcommittees in the areas of existing identified biosciences platforms, education and workforce development, commer- cialization, communication, policy and governance, and finance. Such financial assistance shall be used for purposes of activities related to biosciences and bioeconomy development under chapter 262B, if so amended, and to accredited private universities in this state.4

3. For the fiscal period beginning July 1, 2005, and ending June 30, 2015, there is appro- priated each fiscal year from the grow Iowa values fund created in section 15G.108, if enacted,5

to the department of economic development one million dollars for purposes of providing fi- nancial assistance for projects in targeted state parks, state banner parks, and destination parks. The department of natural resources shall submit a plan to the department of economic development for the expenditure of moneys appropriated under this subsection. The plan shall focus on improving state parks, state banner parks, and destination parks for economic development purposes. Based on the report submitted, the department of economic develop- ment shall provide financial assistance to the department of natural resources for support of state parks, state banner parks, and destination parks. For purposes of this subsection, “state banner park” means a park with multiple uses and which focuses on the economic develop- ment benefits of a community or area of the state. 4. For the fiscal period beginning July 1, 2005, and ending June 30, 2015, there is appro-

priated each fiscal year from the grow Iowa values fund created in section 15G.108, if enacted,6

to the office of the treasurer of state one million dollars for deposit in the Iowa cultural trust fund created in section 303A.4. 5. For the fiscal period beginning July 1, 2005, and ending June 30, 2015, there is appro-

priated each fiscal year from the grow Iowa values fund created in section 15G.108, if enacted,7

to the department of economic development seven million dollars for deposit into the work- force training and economic development funds of the community colleges created pursuant to section 260C.18A. 6. a. For the fiscal period beginning July 1, 2005, and ending June 30, 2015, there is appro-

priated each fiscal year from the grow Iowa values fund created in section 15G.108, if enacted,8

to the department of economic development onemillion dollars for providing economic devel- opment region financial assistance under section 15E.232, subsections 3, 4, 5, and 6, if en- acted,9 and under section 15E.233, if enacted.10

b. Of the moneys appropriated in this subsection, the department shall transfer three hun- dred fifty thousand dollars each fiscal year for the fiscal period beginning July 1, 2005, and ending June 30, 2015, to Iowa state university of science and technology, for purposes of pro- viding financial assistance to establish small business development centers in areas of the

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4 See chapter 150, §2 herein 5 See chapter 150, §1 herein 6 See chapter 150, §1 herein 7 See chapter 150, §1 herein 8 See chapter 150, §1 herein 9 See chapter 150, §10 herein 10 See chapter 150, §11 herein

673 LAWS OF THE EIGHTY-FIRST G.A., 2005 SESSION CH. 170

state previously served by a small business development center and tomaintain existing small business development centers. Financial assistance for a small business development center shall not be awarded unless the city of11 county where the center is located or scheduled to be located demonstrates the ability to obtain local matching moneys on a dollar-for-dollar basis. An award of financial assistance to a small business development center under this paragraph shall not exceed twenty thousand dollars. c. Of the moneys appropriated under this subsection, the department may use up to fifty

thousand dollars each fiscal year during the fiscal period beginning July 1, 2005, and ending June 30, 2015, for purposes of providing training, materials, and assistance to Iowa business resource centers. 7. Notwithstanding section 8.33,moneys that remain unexpended at the end of a fiscal year

shall not revert to any fund but shall remain available for expenditure for the designated pur- poses during the succeeding fiscal year.

Sec. 20. NEW SECTION. 96.51 FIELD OFFICE OPERATING FUND. A field office operating fund is created in the state treasury under the control of the depart-

ment of workforce development. The fund is separate and distinct from the unemployment compensation fund. All moneys properly credited to and deposited in the fund are annually appropriated to the department of workforce development to be used for personnel and non- personnel costs of operating field offices.

Sec. 21. 2004 IowaActs, chapter 1175, section 50, is amended by adding the following new subsection: NEW SUBSECTION. 5. For sole source grant costs associated with the hosting of the na-

tional special olympics in Iowa by a special olympics nonprofit entity, in addition to the amount appropriated for this purpose in 2004 IowaActs, chapter 1175, section 288, subsection 6, paragraph “b”:

$ 500,000. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Notwithstanding section 8.33, moneys appropriated in this subsection that remain unen-

cumbered or unobligated at the close of the fiscal year shall not revert but shall remain avail- able for expenditure for the purpose designated until the close of the fiscal year that begins July 1, 2006.

Sec. 22. VALUE-ADDED AGRICULTURAL PRODUCTS AND PROCESSES FINANCIAL ASSISTANCE FUND MONEYS. The office of renewable fuels and coproducts may apply to the department of economic development formoneys in the value-added agricultural products andprocesses financial assistance fund for deposit in the renewable fuels and coproducts fund created in section 159A.7.

Sec. 23. IOWAFINANCEAUTHORITYAUDIT. The auditor of state is requested to review the audit of the Iowa finance authority performed by the auditor hired by the authority. The auditor of state is also requested to conduct a performance audit of the authority to determine the effectiveness of the authority and the programs of the authority.

Sec. 24. APPLICATION FOR DEPARTMENT OF ECONOMIC DEVELOPMENT MON- EYS. For the fiscal year beginning July 1, 2005, any entity that was specifically identified in 2001 Iowa Acts, chapter 188, to receive funding from the department of economic develop- ment, excluding any entity identified to receive a direct appropriation beginning July 1, 2005, mayapply to thedepartment for assistance through the appropriate program. Thedepartment shall provide application criteria necessary to implement this section.

Sec. 25. SHELTERASSISTANCEFUND. In providingmoneys from the shelter assistance fund to homeless shelter programs in the fiscal year beginning July 1, 2005, and ending June 30, 2006, the department of economic development shall explore the potential of allocating

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11 The word “or” probably intended

674LAWS OF THE EIGHTY-FIRST G.A., 2005 SESSIONCH. 170

moneys tohomeless shelter programsbased inpart on their ability tomove their clients toward self-sufficiency.

Sec. 26. UNEMPLOYMENT COMPENSATION PROGRAM. Notwithstanding section 96.9, subsection 4, paragraph “a”, moneys credited to the state by the secretary of the treasury of the United States pursuant to section 903 of the Social Security Act shall be appropriated to the department of workforce development and shall be used by the department for the ad- ministration of the unemployment compensation program only. This appropriation shall not apply to any fiscal year beginning after December 31, 2005.

Sec. 27. EFFECTIVE DATE. Section 21 of this Act amending 2004 Iowa Acts, chapter 1175, section 50, being deemed of immediate importance, takes effect upon enactment.

Approved June 9, 2005, with exception noted.

THOMAS J. VILSACK, Governor

Dear Mr. Secretary:

I hereby transmit House File 809, an Act relating to and making appropriations to the depart- ment of economic development, the office of the treasurer of state, certain board of regents institutions, the department of workforce development, and the public employee relations board, related matters, and providing an effective date.

House File 809 is approved on this date with the following exception, I am unable to approve the itemdesignated asSection 2, Subsection 3, paragraph e in its entirety. It is critically impor- tant that the state’s interstate welcome centers remain open seven days a week and allowed to serve the nearly 250,000 travelers that visit those centers annually. Currently, over 50 per- cent of the brochure enrollment revenue comes from non-profit organizations. Without that, the centers would be closed several days a week.

For the above reasons, I respectfully disapprove this item in accordancewithArticle 3, Section 16 of the Constitution of the State of Iowa. All other items in House File 809 are hereby ap- proved as of this date.

Sincerely, THOMAS J. VILSACK, Governor