Relating to the establishment of a grant fund and a grant program administered by the economic development authority to assist eligible out-of-state candidates residing in Puerto Rico with relocation expenses to move to the state to fill specific jobs

This bill relates to the establishment of a grant fund and a grant program administered by the economic development authority to assist eligible out-of-state candidates residing in Puerto Rico with relocation expenses to move to the state to fill specific jobs. The bill creates a grow Iowa’s talent pool grant fund (fund) in the state treasury under the control of the economic development authority (authority) that consists of any moneys appropriated to the fund by the general assembly and any other moneys available to the authority for placement in the fund. The fund must be used to provide grants as provided under the grow Iowa’s talent pool grant program (program) and the authority must use any moneys specifically appropriated for purposes of the program only for purposes of the program. The bill establishes a $2 million standing appropriation from the general fund of the state to the authority for deposit in the fund for the fiscal year beginning July 1, 2020. Of the appropriated moneys, percent must be reserved for grants to eligible businesses located in rural communities. “Rural community” is defined in the bill as any city or township located in the state that has a population of 50,000 or less, except those located wholly within or more of the most populous counties in the state, as determined by the most recent population estimates issued by the United States bureau of census. Interest or earnings on moneys in the fund accrue to the authority and must be used for purposes of the program. Moneys in the fund at the end of each fiscal year do not revert to any other fund but remain in the fund for expenditure for subsequent fiscal years. All repayments or recaptures of grants provided under the program accrue to the authority to be used for purposes of the program. The authority may use not more than percent of the moneys in the fund at the beginning of the fiscal year for purposes of administrative costs, marketing, and other program support. The authority must begin to award grants from the fund not later than January 1, 2021. The bill requires the authority to establish and administer the program for purposes of awarding grants to eligible businesses. A business is eligible to apply for a grant under the program if, at the time the business applies, the business is located in Iowa, as defined in the bill; if the business has been a going concern for two years or more, the business has not been found to be in violation of any environmental or worker safety laws or rules; the business only employs individuals legally authorized to work in the state; the business is not in bankruptcy and is not imminently contemplating filing for bankruptcy; the business has a candidate pending hire for a job at the business that pays a minimum of $15 per hour and the candidate currently resides in Puerto Rico; the business has at least one letter of support from community leaders of the community in which the candidate will be working that supports the candidate’s relocation; and the business can demonstrate the ability to match a grant awarded by the authority in an amount equal to $1 for every dollar awarded by the authority. A grant awarded to an eligible business cannot exceed $5,000 per relocating candidate. Upon approval of a business’s application, the business must enter into an agreement with the authority that must include a provision requiring the business to use the grant assistance, and the matching dollar-for-dollar contribution from the business, specifically for relocation-related expenses, as detailed in the bill, for the candidate for whom the business was awarded the grant. The candidate must substantiate the relocation-related expenses. The agreement must also have provisions allowing for all or a portion of the grant received to be subject to disallowance, recapture, or immediate repayment, in certain circumstances as outlined in the bill. An eligible business may receive more than one grant under the program and must submit a new application for each award. The bill requires the authority to submit an annual report on the program to the general assembly. The report must include information as outlined in the bill for each business that is awarded a grant under the program in the immediately preceding calendar year. The authority is required to adopt rules pursuant to Code chapter 17A as necessary to administer the program.