Senate Study Bill 1295 - Introduced SENATE FILE _____ BY (PROPOSED COMMITTEE ON APPROPRIATIONS BILL BY CHAIRPERSON DVORSKY) A BILL FOR An Act relating to cultural affairs and economic development 1 by establishing an Iowa next program and fund to assist 2 communities in community enhancement projects, creating a 3 sports tourism program, modifying certain department of 4 cultural affairs programs, eliminating the Iowa cultural 5 trust board of trustees, Iowa cultural trust grant 6 account, and the great places program and fund, making 7 appropriations, and including transition provisions. 8 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 9 TLSB 2688XC (2) 86 ad/rj

S.F. _____ Section 1. TITLE. This Act shall be known and may be cited 1 as the “Iowa Next Act”. 2 Sec. 2. NEW SECTION . 304.101 Definitions. 3 As used in this chapter, unless the context otherwise 4 requires: 5 1. “Commission” means the Iowa next commission established 6 in section 304.102. 7 2. “Department” means the department of cultural affairs 8 created in section 303.1. 9 Sec. 3. NEW SECTION . 304.102 Iowa next commission. 10 1. The Iowa next commission is established consisting 11 of eleven members and is located for administrative purposes 12 within the department. The director of the department shall 13 provide office space, staff assistance, and necessary supplies 14 and equipment for the commission. The director shall budget 15 funds to pay the compensation and expenses of the commission. 16 In performing its functions, the commission is performing 17 a public function on behalf of the state and is a public 18 instrumentality of the state. 19 2. The commission shall consist of the following voting 20 members appointed by the governor: 21 a. Two members from each United States congressional 22 district in the state as established in section 40.1. 23 b. Three at-large members. 24 3. a. Of the voting members appointed pursuant to 25 subsection 2, the governor shall appoint the following: 26 (1) One person selected by the board of the Iowa natural 27 heritage foundation. 28 (2) One person with professional experience in finance, 29 insurance, or investment banking. 30 (3) One person with professional experience in the tourism 31 industry. 32 (4) One person with professional experience in historic 33 preservation. 34 (5) One person with professional experience in cultural 35 -1- LSB 2688XC (2) 86 ad/rj 1/ 19

S.F. _____ programming. 1 (6) Six persons actively employed in the private, 2 for-profit sector of the economy who otherwise have substantial 3 expertise in economic development. 4 b. All members appointed pursuant to subsection 2 shall be 5 residents of different counties at the time of appointment. 6 c. The governor shall appoint the voting members pursuant to 7 subsection 2, subject to sections 69.16, 69.16A, and 69.16C, 8 and subject to confirmation by the senate. 9 d. The members appointed pursuant to subsection 2 shall be 10 appointed to three-year staggered terms and the terms shall 11 commence and end as provided by section 69.19. If a vacancy 12 occurs, a successor shall be appointed to serve the unexpired 13 terms. A successor shall be appointed in the same manner and 14 subject to the same qualifications as the original appointment 15 to serve the unexpired terms. 16 4. In addition to the voting members, the membership of the 17 commission shall include four members of the general assembly 18 with one member designated by each of the following: the 19 majority leader of the senate, the minority leader of the 20 senate, the speaker of the house of representatives, and the 21 minority leader of the house of representatives. A legislative 22 member serves for a term as provided in section 69.16B in an ex 23 officio, nonvoting capacity. 24 5. a. In addition to the voting members, the membership 25 of the commission shall include the following ex officio, 26 nonvoting members: 27 (1) The director of the economic development authority or 28 the director’s designee. 29 (2) The director of the department of transportation or the 30 director’s designee. 31 (3) The director of the department of natural resources or 32 the director’s designee. 33 (4) The director of the department of cultural affairs or 34 the director’s designee. 35 -2- LSB 2688XC (2) 86 ad/rj 2/ 19

S.F. _____ b. A person serving as a designee pursuant to paragraph “a” 1 shall serve a one-year term as an ex officio, nonvoting member 2 of the commission. 3 6. The governor shall designate the chairperson and vice 4 chairperson of the commission from the members appointed 5 pursuant to subsection 2. In the case of absence or disability 6 of the chairperson and vice chairperson, the members of the 7 commission shall elect a temporary chairperson by a majority 8 vote of those members who are present and voting. 9 7. A majority of the total voting membership of the 10 commission constitutes a quorum. 11 8. The members of the commission are entitled to receive 12 reimbursement for actual expenses incurred while engaged in the 13 performance of official duties. A member of the commission may 14 also be eligible to receive compensation as provided in section 15 7E.6. 16 Sec. 4. NEW SECTION . 304.103 Commission duties. 17 The commission shall do all of the following: 18 1. Oversee and direct the administration of the Iowa next 19 program by the department. 20 2. Administer a process pursuant to section 304.105 21 allowing certain departments to apply for additional funds for 22 quality of life projects. 23 3. Establish the Iowa next due diligence subcommittee, 24 which shall be composed of five voting members of the 25 commission, which shall review applications and make 26 recommendations to the commission concerning applications. 27 4. Consult with state and local entities to create a 28 comprehensive strategic plan to coordinate efforts to increase 29 the quality of life for residents of Iowa and to attract 30 persons from outside the state to Iowa. 31 5. Collect and maintain any economic or other data and 32 research that is relevant to the formulation and implementation 33 of effective quality of life policies. 34 6. Cooperate with and provide information to state 35 -3- LSB 2688XC (2) 86 ad/rj 3/ 19

S.F. _____ agencies, local governments, and others as deemed appropriate 1 for the enhancement of quality of life efforts. 2 Sec. 5. NEW SECTION . 304.104 Department duties. 3 1. The department, in consultation with the economic 4 development authority and subject to approval by the 5 commission, shall adopt administrative rules pursuant to 6 chapter 17A necessary to administer the Iowa next program 7 created pursuant to section 304.202. The department shall 8 provide the commission with assistance in implementing 9 administrative functions, marketing the program, and providing 10 technical assistance and application assistance to applicants 11 under the program. 12 2. The department, in consultation with the economic 13 development authority and subject to approval by the 14 commission, shall adopt administrative rules pursuant to 15 chapter 17A necessary to develop a process pursuant to section 16 304.105 allowing certain departments to apply to the commission 17 for additional funds for quality of life projects. 18 3. The department shall work with the economic development 19 authority, the department of natural resources, the department 20 of transportation, and other state agencies as necessary to 21 allocate appropriate staff and resources to the oversight of 22 quality of life programs in the state. 23 4. The department shall enter into an agreement with 24 the economic development authority pursuant to chapter 28E 25 regarding the duties to enter into contracts with recipients of 26 financial assistance under the Iowa next program and section 27 304.105 and the maintenance of those contracts. 28 5. On or before December 15 of each year, the department 29 shall submit a report to the general assembly and the 30 governor’s office on the Iowa next program. The report shall 31 consist of the following: 32 a. The number of applications received by the department 33 under the Iowa next program and pursuant to section 304.105 and 34 the status of the applications. 35 -4- LSB 2688XC (2) 86 ad/rj 4/ 19

S.F. _____ b. The number of applications awarded financial assistance 1 and the total amount of the awards under the Iowa next program 2 and pursuant to section 304.105, the total amount expended on 3 the Iowa next program, and the number of awards under the Iowa 4 next program and pursuant to section 304.105 that were the 5 subject of repayment or collection activity. 6 c. Other information the department deems relevant. 7 Sec. 6. NEW SECTION . 304.105 Iowa next appropriation. 8 1. Commencing with appropriations made by this section for 9 the fiscal year beginning July 1, 2015, for a total of ten 10 fiscal years, if moneys are transferred to the general fund of 11 the state pursuant to section 8.55, subsection 2, paragraph “b” , 12 during a fiscal year, in an amount that exceeds one hundred 13 million dollars, there is appropriated from the general fund 14 of the state to the following agencies, for that fiscal year, 15 the following amounts, or so much thereof as is necessary to be 16 used for the purposes designated: 17 a. To the economic development authority, two million 18 dollars, for deposit in the community attraction and tourism 19 fund created in section 15F.204. 20 b. To the economic development authority, two million 21 dollars, for deposit in the river enhancement community 22 attraction and tourism fund created in section 15F.205. 23 c. To the economic development authority, one million 24 dollars, for deposit in the sports tourism fund created in 25 section 15E.323. 26 d. To the department of natural resources, two million 27 dollars, for deposit in the natural resources account in the 28 natural resources and outdoor recreation trust fund created in 29 section 461.32. 30 e. Two million dollars, for deposit in the watershed 31 protection account in the natural resources and outdoor 32 recreation trust fund created in section 461.34, for use by 33 the department of natural resources and the department of 34 agriculture and land stewardship. 35 -5- LSB 2688XC (2) 86 ad/rj 5/ 19

S.F. _____ f. Two million dollars, for deposit in the trails account in 1 the natural resources and outdoor recreation trust fund created 2 in section 461.37, for use by the department of transportation 3 and the department of natural resources. 4 g. To the department of cultural affairs, one million 5 dollars, for purposes of the community cultural grant program 6 established under section 303.3. 7 h. To the department of cultural affairs, thirteen million 8 dollars, for deposit in the Iowa next fund created in section 9 304.203. 10 2. a. If an agency listed in subsection 1, paragraphs “a” 11 through “g” , has insufficient funds in the respective accounts 12 for prospective projects and initiatives, the agency may apply 13 to the commission for additional funds pursuant to section 14 304.202 to provide financial assistance for projects and 15 initiatives. An agency listed in subsection 1, paragraphs “a” 16 through “g” , may apply for multiple projects in one application. 17 The commission shall develop a process for such application. 18 b. Upon receipt of an application submitted by an agency 19 pursuant to this subsection, the Iowa next due diligence 20 subcommittee established by the commission pursuant to section 21 304.103 shall review the application and make a recommendation 22 to the commission. When reviewing the application, the Iowa 23 next due diligence subcommittee shall consider the criteria 24 established in section 304.202, subsection 5. 25 c. Upon review of the recommendations of the Iowa next due 26 diligence subcommittee, the commission shall approve, defer, 27 or deny an application for additional funds. The commission 28 may make a multiyear commitment to an agency or may award 29 assistance for multiple projects to the same agency provided 30 the Iowa next fund contains sufficient moneys. 31 d. Upon approval of an application, the commission shall 32 notify the department of cultural affairs and the economic 33 development authority of the award. The economic development 34 authority and the applicant shall enter into an agreement 35 -6- LSB 2688XC (2) 86 ad/rj 6/ 19

S.F. _____ regarding the award. The department of cultural affairs shall 1 transfer the funds awarded to the department from the Iowa 2 next fund created in section 304.203 for deposit in an account 3 described in subsection 1, paragraphs “a” through “g” . 4 3. Notwithstanding section 8.33, moneys appropriated in 5 this section 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 for 8 future fiscal years. 9 Sec. 7. NEW SECTION . 304.201 Definitions. 10 For purposes of this subchapter, unless the context 11 otherwise requires: 12 1. “Financial assistance” means assistance provided only 13 from the funds, rights, and assets legally available to the 14 department for purposes of the program and includes but is 15 not limited to assistance in the forms of grants, loans, and 16 forgivable loans. 17 2. “Fund” means the Iowa next fund created in section 18 304.203. 19 3. “Program” means the Iowa next program established in 20 section 304.202. 21 4. “Public organization” means a nonprofit economic 22 development organization or other nonprofit organization that 23 sponsors community enhancements and activities. 24 5. “Quality of life project” means a project for which 25 an application is reviewed as provided in section 304.202, 26 subsection 5. 27 6. “Vertical infrastructure” means land acquisition and 28 construction, major renovation and major repair of buildings, 29 all appurtenant structures, utilities, site development, and 30 recreational trails and water trails. “Vertical infrastructure” 31 does not include routine, recurring maintenance or operational 32 expenses or leasing of a building, appurtenant structure, or 33 utility without a lease-purchase agreement. 34 Sec. 8. NEW SECTION . 304.202 Iowa next program. 35 -7- LSB 2688XC (2) 86 ad/rj 7/ 19

S.F. _____ 1. The commission, in conjunction with the department 1 and the economic development authority, shall establish and 2 administer an Iowa next program for purposes of providing 3 financial assistance to quality of life projects around the 4 state. 5 2. A city, county, state agency, convention and visitors 6 bureau, or public organization in the state may submit an 7 application to the department for financial assistance under 8 the program for a quality of life project. Each application 9 shall include but not be limited to the following information: 10 a. The total capital investment of the project, including 11 but not limited to costs for construction, site acquisition, 12 and infrastructure improvement. 13 b. The amount or percentage of local and private matching 14 moneys which will be or have been provided for the project. 15 c. The total number of jobs to be created or retained by the 16 project. 17 d. The need of the community for the project and for the 18 financial assistance. 19 e. The long-term tax-generating impact of the project. 20 f. Other information the commission may reasonably require. 21 3. Upon submission of an application to the department, 22 the department shall review the application to verify that the 23 minimum eligibility criteria are met. For those applications 24 that meet the eligibility criteria, the department shall 25 provide a staff review analysis and evaluation to the Iowa 26 next due diligence subcommittee established by the commission 27 pursuant to section 304.103. 28 4. The Iowa next due diligence subcommittee shall review 29 program applications submitted to the department and the 30 staff review analysis created by the department and make 31 recommendations to the commission regarding the provision of 32 financial assistance to a project. The Iowa next due diligence 33 subcommittee shall score each application on a competitive 34 basis according to the criteria established in subsection 5. 35 -8- LSB 2688XC (2) 86 ad/rj 8/ 19

S.F. _____ 5. When reviewing applications for a project, the Iowa next 1 due diligence subcommittee shall consider, at a minimum, all 2 of the following: 3 a. Whether the wages, benefits, including health benefits, 4 safety, and other attributes of the project would improve 5 the quality of life or the quality of attraction or tourism 6 employment in the community. 7 b. The extent to which the project would generate additional 8 recreational and cultural attractions or tourism opportunities. 9 c. The ability of the project to produce a long-term, 10 tax-generating economic impact. 11 d. The location of the project and its impact on the 12 geographic diversity of successful applications. 13 e. Whether the project is primarily a vertical 14 infrastructure project with demonstrated substantial regional 15 or statewide economic impact. 16 f. Whether the applicant has received other federal, state, 17 or local assistance and whether financial assistance has 18 already been provided under the program for the same project. 19 Whether a project is the same shall be within the discretion 20 of the commission. 21 g. The extent to which the project has taken the following 22 planning principles into consideration: 23 (1) Efficient and effective use of land resources and 24 existing infrastructure by encouraging development in areas 25 with existing infrastructure or capacity to avoid costly 26 duplication of services and costly use of land. 27 (2) Provision for a variety of transportation choices, 28 including pedestrian traffic. 29 (3) Maintenance of a unique sense of place by respecting 30 local cultural and natural environmental features. 31 (4) Conservation of open space and farmland and 32 preservation of critical environmental areas. 33 (5) Promotion of the safety, livability, and revitalization 34 of existing urban and rural communities. 35 -9- LSB 2688XC (2) 86 ad/rj 9/ 19

S.F. _____ h. The amount of matching, nonstate funds leveraged by the 1 project, including any tax incentives awarded to the project. 2 i. Other criteria relevant to the project and appropriate to 3 the purpose and intent of the program. 4 6. Upon review of the recommendations of the Iowa next due 5 diligence subcommittee, the commission shall approve, defer, 6 or deny an award of financial assistance for each application. 7 The amount of financial assistance awarded shall be within 8 the discretion of the commission. The commission may make a 9 multiyear commitment to an applicant or may award assistance 10 for multiple projects to the same applicant provided the fund 11 contains sufficient moneys. 12 7. a. Upon approval of an application for financial 13 assistance, the commission shall notify the economic 14 development authority, and the authority and the applicant 15 shall enter into an agreement regarding the project. 16 b. The agreement shall provide for the project requirements 17 and document the applicable matching funds requirements, if 18 any. 19 Sec. 9. NEW SECTION . 304.203 Iowa next fund. 20 1. An Iowa next fund is created as a separate fund in the 21 state treasury under the control of the department, consisting 22 of any moneys appropriated by the general assembly, any moneys 23 transferred from other funds as provided by law, and any other 24 moneys available to and obtained or accepted by the department 25 for placement in the fund. 26 2. Moneys in the fund are appropriated to the department 27 for purposes of the Iowa next program established in section 28 304.202, and for providing additional funding to other 29 departments for quality of life projects pursuant to section 30 304.105. 31 3. Payments of interest, repayments of moneys loaned 32 pursuant to sections 304.105 and 304.202, and recaptures of 33 loans shall be deposited in the fund. 34 4. a. No more than one and one-half percent of the moneys 35 -10- LSB 2688XC (2) 86 ad/rj 10/ 19

S.F. _____ in the fund on July 1 of a fiscal year are allocated to the 1 department for purposes of administering the Iowa next program. 2 b. No more than one percent of the moneys in the fund 3 on July 1 of a fiscal year are allocated to the economic 4 development authority for purposes of administering the Iowa 5 next program. 6 5. Moneys in the fund are not subject to section 8.33. 7 Notwithstanding section 12C.7, subsection 2, interest or 8 earnings on moneys in the fund shall be credited to the fund. 9 Sec. 10. Section 15.108, subsection 5, paragraph c, Code 10 2015, is amended to read as follows: 11 c. Coordinate and develop with the department of 12 transportation, the department of natural resources, the 13 department of cultural affairs, the vision Iowa board, the Iowa 14 next commission, other state agencies, and local and regional 15 entities public interpretation, marketing, and education 16 programs that encourage Iowans and out-of-state visitors to 17 participate in the recreational and leisure opportunities 18 available in Iowa. The authority shall establish and 19 administer a program that helps connect both Iowa residents and 20 residents of other states to new and existing Iowa experiences 21 as a means to enhance the economic, social, and cultural 22 well-being of the state. The program shall include a broad 23 range of new opportunities, both rural and urban, including 24 main street destinations, green space initiatives, and artistic 25 and cultural attractions. 26 Sec. 11. NEW SECTION . 15E.322 Sports tourism program. 27 1. As used in this section and section 15E.323, unless the 28 context otherwise requires: 29 a. “Board” means the vision Iowa board established in 30 section 15F.102. 31 b. “Financial assistance” means assistance provided only 32 from the funds, rights, and assets legally available to the 33 authority for purposes of the sports tourism program and 34 includes but is not limited to assistance in the form of 35 -11- LSB 2688XC (2) 86 ad/rj 11/ 19

S.F. _____ grants, loans, and forgivable loans. 1 2. The authority shall establish and administer a sports 2 tourism program to provide financial assistance for projects 3 that promote professional and accredited college and university 4 sporting events or nonprofessional sporting events of national 5 importance in the state. 6 3. a. A convention and visitors bureau may apply to the 7 authority for financial assistance for a project that actively 8 promotes professional and accredited college and university 9 sporting events or nonprofessional sporting events of national 10 importance in the area served by the convention and visitors 11 bureau. 12 b. A convention and visitors bureau may apply for and 13 receive financial assistance for more than one project. 14 c. A convention and visitors bureau may apply for a 15 multiyear financial assistance award or may apply for renewal 16 of a financial assistance award if certain metrics and return 17 on investment estimates, as set by the board by rule, are met. 18 d. A convention and visitors bureau may apply to the 19 board for financial assistance pursuant to this section and 20 a district’s convention and visitors bureau may apply to 21 the authority for financial assistance pursuant to section 22 15E.321, but shall not receive financial assistance under both 23 provisions for the same event. 24 4. a. The authority shall forward all applications received 25 pursuant to this section to the board, and the board shall 26 review the applications and award financial assistance on a 27 competitive basis using the criteria established in paragraph 28 “b” . 29 b. The board shall consider the following criteria when 30 awarding financial assistance: 31 (1) Impact of the project on the local and state economy. 32 (2) Novelty and quality of a project. 33 (3) Project size and scope. 34 (4) Financial need of the applicant. 35 -12- LSB 2688XC (2) 86 ad/rj 12/ 19

S.F. _____ (5) Ratio of public-to-private investment. 1 (6) Potential to attract Iowans and out-of-state visitors. 2 (7) Amount of positive advertising or media coverage the 3 project generates. 4 c. Upon approval of an application for financial assistance 5 under the program, the board shall notify the authority. The 6 authority shall enter into an agreement with the recipient of a 7 financial assistance award under the program. 8 5. An applicant is not required to demonstrate matching 9 funds in order to receive financial assistance pursuant to this 10 section. 11 6. A convention and visitors bureau shall use funds received 12 under this program only for the purposes of directly promoting 13 the sporting event including but not limited to marketing, 14 promotions, and infrastructure. The convention and visitors 15 bureau shall not use funds received under the program as 16 reimbursement for completed projects. 17 7. A convention and visitors bureau receiving a financial 18 assistance award shall provide an annual report to the 19 authority for years in which it receives financial assistance 20 under this section. The report shall include the information 21 the authority deems relevant. 22 Sec. 12. NEW SECTION . 15E.323 Sports program fund. 23 1. A sports program fund is created in the state treasury 24 under the control of the authority and consisting of moneys 25 appropriated by the general assembly and any other moneys 26 available to and obtained or accepted by the authority for 27 placement in the fund. 28 2. Moneys credited to the fund are appropriated to the 29 authority for purposes of providing financial assistance, 30 as awarded by the board, under the sports tourism program 31 established in section 15E.322. 32 3. Not more than one percent of the moneys in the fund on 33 July 1 of a fiscal year is allocated to the authority for the 34 purposes of administering the sports tourism program. 35 -13- LSB 2688XC (2) 86 ad/rj 13/ 19

S.F. _____ 4. Payments of interest, repayments of moneys loaned 1 pursuant to section 15E.322, and recaptures of loans shall be 2 deposited in the fund. 3 5. Moneys in the fund are not subject to section 8.33. 4 Notwithstanding section 12C.7, subsection 2, interest or 5 earnings on moneys in the fund shall be credited to the fund. 6 Sec. 13. Section 15F.103, Code 2015, is amended by adding 7 the following new subsection: 8 NEW SUBSECTION . 5. Review applications and award financial 9 assistance pursuant to the sports tourism program established 10 in section 15E.322. 11 Sec. 14. Section 15H.6, subsection 3, Code 2015, is amended 12 to read as follows: 13 3. The capacity building activities shall be targeted in 14 communities that are already working with existing community 15 improvement programs, including but not limited to the Iowa 16 great places program established under section 303.3C , cultural 17 and entertainment district certification program established 18 in section 303.3B, the green streets and main street Iowa 19 programs administered by the economic development authority, 20 and disaster remediation activities by communities located 21 within an area declared to be a disaster area in a declaration 22 issued by the president of the United States or the governor. 23 Sec. 15. Section 303.1, subsection 2, Code 2015, is amended 24 by adding the following new paragraph: 25 NEW PARAGRAPH . f. Coordinate and develop with the economic 26 development authority, department of transportation, the 27 department of natural resources, the Iowa next commission, 28 other state agencies, and local and regional entities 29 programs that encourage Iowans and out-of-state visitors to 30 participate in the cultural, recreational, and quality of life 31 opportunities available in Iowa. 32 Sec. 16. Section 303.1A, subsection 1, paragraph f, Code 33 2015, is amended by striking the paragraph and inserting in 34 lieu thereof the following: 35 -14- LSB 2688XC (2) 86 ad/rj 14/ 19

S.F. _____ f. Administer the Iowa cultural trust as provided in chapter 1 303A and do all of the following: 2 (1) Adopt administrative rules pursuant to chapter 17A to 3 develop and implement a grant application process for grants 4 issued pursuant to section 303A.4 to qualified organizations 5 as defined in section 303A.3. 6 (2) Adopt administrative rules pursuant to chapter 17A to 7 establish criteria for the approval of grants provided under 8 section 303A.4. 9 Sec. 17. Section 303A.3, subsections 1 and 4, Code 2015, are 10 amended by striking the subsections. 11 Sec. 18. Section 303A.4, subsection 4, paragraph a, Code 12 2015, is amended to read as follows: 13 a. The treasurer of state shall act as custodian of the 14 fund, shall invest moneys in the trust fund, and shall transfer 15 deposit the interest attributable to the investment of trust 16 fund moneys to the grant account created in section 303A.7 in 17 the trust fund . The trust fund’s principal shall not be used 18 or accessed by the department or the board for any purpose. 19 Sec. 19. Section 303A.4, subsection 4, paragraph b, Code 20 2015, is amended by striking the paragraph and inserting in 21 lieu thereof the following: 22 b. Notwithstanding paragraph “a” , for the fiscal year 23 beginning July 1, 2015, and ending June 30, 2016, and 24 continuing for a total of ten fiscal years, the treasurer 25 of state shall transfer six hundred thousand dollars at the 26 beginning of the fiscal year to the department of cultural 27 affairs for the following purposes: 28 (1) The department shall use at least three hundred thousand 29 dollars of the amount transferred each year to provide grants 30 to qualified organizations to assist those organizations in 31 exhibit development, traveling exhibits, and operational costs. 32 (2) The department shall use the remaining moneys to provide 33 statewide traveling educational programs and exhibits, and for 34 collections processing and digitalization. 35 -15- LSB 2688XC (2) 86 ad/rj 15/ 19

S.F. _____ Sec. 20. REPEAL. Sections 303.3C, 303.3D, 303A.5, 303A.6, 1 and 303A.7, Code 2015, are repealed. 2 Sec. 21. IOWA NEXT COMMISSION —— TRANSITION PROVISIONS. The 3 initial members of the Iowa next commission established 4 pursuant to this Act shall be appointed by September 1, 2015. 5 Sec. 22. REPEAL OF GREAT PLACES PROGRAM —— TRANSITION 6 PROVISIONS. 7 1. Upon repeal of the great places program fund created 8 in section 303.3D, the department of cultural affairs shall 9 transfer all unencumbered and unobligated moneys accruing to 10 the fund to the Iowa next fund created in section 304.203. 11 2. Unencumbered and unobligated moneys accruing to the 12 great places program fund on or after July 1, 2015, shall be 13 transferred to the Iowa next fund. 14 3. The great places program fund shall continue in existence 15 until all encumbrances and obligations have been fulfilled. 16 4. Any agreement or contract entered into prior to July 1, 17 2015, pursuant to the great places program shall continue until 18 the expiration of the contract or agreement. 19 Sec. 23. REPEAL OF IOWA CULTURAL TRUST GRANT ACCOUNT. 20 1. Upon repeal of the Iowa cultural trust grant account 21 created in section 303A.7, the treasurer of state shall 22 transfer all unencumbered and unobligated moneys accruing to 23 the fund to the Iowa cultural trust fund created in section 24 303A.4. 25 2. Unencumbered and unobligated moneys accruing to the Iowa 26 cultural trust grant account on or after July 1, 2015, shall be 27 transferred to the Iowa cultural trust fund. 28 3. The Iowa cultural trust grant account shall continue 29 in existence until all encumbrances and obligations have been 30 fulfilled. 31 4. Any agreement or contract entered into prior to July 32 1, 2015, pursuant to section 303A.6 shall continue until the 33 expiration of the agreement or contract with the department of 34 cultural affairs assuming responsibility for the duties of the 35 -16- LSB 2688XC (2) 86 ad/rj 16/ 19

S.F. _____ board of trustees of the Iowa cultural trust. 1 EXPLANATION 2 The inclusion of this explanation does not constitute agreement with 3 the explanation’s substance by the members of the general assembly. 4 This bill establishes the Iowa next program, Iowa next 5 commission, and Iowa next fund under the department of cultural 6 affairs to assist communities in community enhancement 7 projects. The bill eliminates the great places program and 8 fund, the Iowa cultural trust board of trustees, and the Iowa 9 cultural trust grant account, establishes the sports tourism 10 program and fund, and modifies certain existing department of 11 cultural affairs programs. The bill makes an appropriation and 12 includes transition provisions. The bill is known as the “Iowa 13 Next Act”. 14 The bill establishes the Iowa next commission (commission), 15 which is located for administrative purposes in the department 16 of cultural affairs (department). The commission has 11 17 voting members appointed by the governor. The bill provides 18 the qualifications for the appointed members. The commission 19 has eight ex officio, nonvoting members consisting of four 20 members of the general assembly as well as the directors of the 21 economic development authority, department of transportation, 22 department of natural resources, and department of cultural 23 affairs, or the directors’ designees. The bill describes the 24 commission’s duties. 25 The bill provides that the department, in consultation with 26 the economic development authority (authority), shall adopt 27 rules, subject to the approval of the commission, to administer 28 the Iowa next program. 29 The bill contains a conditional 10-year appropriation 30 to specified funds for quality of life programs. The bill 31 appropriates moneys from the general fund of the state 32 beginning in fiscal year 2015-2016, for 10 years, if at least 33 $100 million in excess money is transferred from the Iowa 34 economic emergency fund to the general fund pursuant to Code 35 -17- LSB 2688XC (2) 86 ad/rj 17/ 19

S.F. _____ section 8.55 in that fiscal year. 1 If the financial need for the funds receiving an 2 appropriation in the bill exceeds the moneys in the respective 3 funds, the bill allows the agency overseeing the fund to apply 4 to the department of cultural affairs for additional funds 5 from the Iowa next fund for the purposes of the projects 6 and initiatives under the individual funds that receive an 7 appropriation in the bill. The bill requires the Iowa next 8 due diligence subcommittee of the commission to review an 9 application under this provision and to make recommendations to 10 the commission. The commission must approve, defer, or deny 11 the application. Upon approval of an application under this 12 provision, the commission must notify the department and the 13 authority of the award. The authority and the applicant shall 14 enter into an agreement regarding the award and the department 15 shall transfer the funds awarded. 16 The bill requires the commission to establish and administer 17 the Iowa next program. The bill allows a city, county, state 18 agency, convention and visitors bureau, or public organization 19 to apply to the department for financial assistance for a 20 project. The bill provides the application requirements. Upon 21 submission of an application, the bill requires the department 22 to review the application to verify that minimum eligibility 23 standards are met, and for those applications meeting the 24 minimum eligibility requirements, the department shall provide 25 a staff review analysis and evaluation to the Iowa next due 26 diligence subcommittee, composed of five voting members of the 27 commission. The Iowa next due diligence subcommittee shall 28 make recommendations to the commission regarding the provision 29 of financial assistance and shall score each application on 30 a competitive basis according to criteria established in the 31 bill. After the commission has reviewed the Iowa next due 32 diligence subcommittee’s recommendations, the commission shall 33 approve, defer, or deny an award of financial assistance. The 34 bill requires the applicant receiving a financial assistance 35 -18- LSB 2688XC (2) 86 ad/rj 18/ 19

S.F. _____ award and the authority to enter into an agreement. 1 The bill establishes the Iowa next fund. The moneys in the 2 fund are appropriated to the department for purposes of the 3 Iowa next program and for providing additional funds for other 4 agencies for quality of life projects. The fund consists of 5 moneys appropriated, moneys transferred, or any other moneys 6 available to and obtained by the department for placement in 7 the fund. 8 The bill requires the authority to establish and administer 9 a sports tourism program and establishes a sports program fund. 10 The sports tourism program provides financial assistance for 11 projects that promote professional and accredited college and 12 university sporting events or nonprofessional sporting events 13 of national importance in Iowa. A convention and visitors 14 bureau can apply to the authority for such an event and the 15 vision Iowa board will receive and review those applications 16 and award grants on a competitive basis using criteria 17 established in the bill. The bill also establishes the sports 18 program fund under the control of the authority for purposes of 19 providing financial assistance, as awarded by the vision Iowa 20 board, under the sports tourism program. 21 The bill eliminates the Iowa cultural trust board. The 22 bill requires the treasurer of state to deposit the interest 23 attributable to the investment of the Iowa cultural trust fund 24 moneys in the trust fund rather than the grant account. The 25 bill eliminates the Iowa cultural trust grant account. The 26 bill also requires the treasurer of state to transfer $600,000 27 at the beginning of the fiscal year, for the next 10 fiscal 28 years, to the department of cultural affairs for the purposes 29 delineated in the bill. 30 The bill provides transition provisions for the appointment 31 of the Iowa next commission, the repeal of the great places 32 program and fund, and the repeal of the Iowa cultural trust 33 grant account. 34 -19- LSB 2688XC (2) 86 ad/rj 19/ 19