House File 375 - Introduced



                                       HOUSE FILE       
                                       BY  BAILEY, WISE, SODERBERG,
                                           and ANDERSON


    Passed House,  Date               Passed Senate, Date             
    Vote:  Ayes        Nays           Vote:  Ayes        Nays         
                 Approved                            

                                      A BILL FOR

  1 An Act relating to distress criteria and the designation of
  2    enterprise zones under the enterprise zone program and
  3    including effective date and retroactive applicability
  4    provisions.
  5 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  6 TLSB 2280HH 82
  7 tm/es/88

PAG LIN



  1  1    Section 1.  Section 15E.194, subsection 1, paragraph c,
  1  2 Code 2007, is amended to read as follows:
  1  3    c.  The county has experienced a percentage population loss
  1  4 that ranks among the top twenty=five counties in the state
  1  5 between 1995 and 2000.  For purposes of this paragraph, prison
  1  6 population shall not be included in the population
  1  7 calculations.
  1  8    Sec. 2.  Section 15E.194, subsection 3, unnumbered
  1  9 paragraph 1, Code 2007, is amended to read as follows:
  1 10    A city may designate an area of up to four square miles to
  1 11 be an enterprise zone if the area is designated a blighted
  1 12 area as defined in section 403.17 by any city or an economic
  1 13 development area pursuant to section 403.4 by a city with a
  1 14 population of more than seventy=five thousand located in a
  1 15 county with a population of less than one hundred ten thousand
  1 16 and the area includes or is located within four miles of at
  1 17 least three of the following:
  1 18    Sec. 3.  Section 15E.194, subsection 5, paragraph a, Code
  1 19 2007, is amended to read as follows:
  1 20    a.  A city of any size or any county may designate an
  1 21 enterprise zone at any time prior to July 1, 2010, when a
  1 22 business closure or permanent layoff occurs involving.  The
  1 23 business closure or permanent layoff must involve the loss of
  1 24 full=time employees, not including retail employees, at one
  1 25 place of business totaling at least one thousand employees or
  1 26 four percent or more of the county's resident labor force
  1 27 based on the most recent annual resident labor force
  1 28 statistics from the department of workforce development,
  1 29 whichever is lower.  A permanent layoff must occur on or after
  1 30 July 1, 2005.  The enterprise zone may be established on the
  1 31 property of the place of business that has closed or imposed a
  1 32 permanent layoff and the enterprise zone may include an area
  1 33 up to an additional three miles adjacent to the property.  The
  1 34 area meeting the requirements for enterprise zone eligibility
  1 35 under this subsection shall not be included for the purpose of
  2  1 determining the area limitation pursuant to section 15E.192,
  2  2 subsection 4.  An eligible housing business under section
  2  3 15E.193B shall not receive incentives or assistance for a home
  2  4 or multiple dwelling unit built or rehabilitated in an
  2  5 enterprise zone designated pursuant to this subsection.
  2  6    Sec. 4.  EFFECTIVE AND RETROACTIVE APPLICABILITY DATES.
  2  7 The section of this Act amending section 15E.194, subsection
  2  8 3, being deemed of immediate importance, takes effect upon
  2  9 enactment and applies retroactively to March 1, 2006.
  2 10                           EXPLANATION
  2 11    This bill relates to distress criteria and the designation
  2 12 of enterprise zones under the enterprise zone program.
  2 13    Currently, an enterprise zone may be designated by a county
  2 14 that meets two of four possible distress criteria.  One of the
  2 15 criteria is that the county has experienced a percentage
  2 16 population loss that ranks among the top 25 counties in the
  2 17 state between 1995 and 2000.  The bill qualifies the
  2 18 population criterion by prohibiting the inclusion of prison
  2 19 population in the population calculations.
  2 20    In 2006, a new type of enterprise zone was enacted,
  2 21 effective March 1, 2006, which allows a city to designate an
  2 22 area of up to four square miles to be an enterprise zone if
  2 23 the area is a blighted area and the area includes or is
  2 24 located within four miles of at least three certain types of
  2 25 modes of transportation.  The bill provides that the new type
  2 26 of enterprise zone must be designated a blighted area by any
  2 27 city or an economic development area by a city meeting certain
  2 28 population requirements pursuant to the "Urban Renewal Law",
  2 29 specifically, Code section 403.4.  This provision of the bill
  2 30 takes effect upon enactment and applies retroactively to March
  2 31 1, 2006.
  2 32    Currently, a city or county may designate an enterprise
  2 33 zone at any time prior to July 1, 2010, when a business
  2 34 closure occurs involving the loss of full=time employees, not
  2 35 including retail employees, at one place of business totaling
  3  1 at least 1,000 employees or 4 percent or more of the county's
  3  2 resident labor force based on the most recent annual resident
  3  3 labor force statistics from the department of workforce
  3  4 development, whichever is lower.  The bill changes the
  3  5 requirement from a business closure to a business closure or a
  3  6 permanent layoff.  The permanent layoff must occur on or after
  3  7 July 1, 2005.
  3  8 LSB 2280HH 82
  3  9 tm:nh/es/88