Text: HF00723 Text: HF00725 Text: HF00700 - HF00799 Text: HF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 HOUSE FILE 724 1 2 1 3 AN ACT 1 4 RELATING TO INVESTMENTS IN COUNTIES AND CITIES BY PRO- 1 5 VIDING FOR THE ESTABLISHMENT OF ENTERPRISE ZONES IN 1 6 AREAS OF COUNTIES AND CITIES FOR WHICH TAX INCENTIVES 1 7 AND ASSISTANCE ARE AVAILABLE FOR ELIGIBLE BUSINESSES 1 8 LOCATING OR LOCATED IN THE ENTERPRISE ZONE. 1 9 1 10 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 1 11 1 12 Section 1. NEW SECTION. 15E.181 INTENT. 1 13 It is the intent of the general assembly that this division 1 14 be administered in a manner to promote new economic 1 15 development in economically distressed areas by encouraging 1 16 communities to target resources in ways that attract 1 17 productive private investment. 1 18 Sec. 2. NEW SECTION. 15E.182 ENTERPRISE ZONES. 1 19 1. A county may create an economic development enterprise 1 20 zone as authorized in this division, subject to certification 1 21 by the department of economic development, by designating up 1 22 to one percent of the county area for that purpose. A county 1 23 may establish more than one enterprise zone. 1 24 2. A city with a population of twenty-four thousand or 1 25 more, as shown by the 1990 certified federal census, may 1 26 create an economic development enterprise zone as authorized 1 27 in this division, subject to certification by the department 1 28 of economic development, by designating one or more contiguous 1 29 census tracts, as determined in the most recent federal census 1 30 or designating other geographic units approved by the 1 31 department of economic development, for that purpose. If 1 32 there is an area in the city which meets the requirements for 1 33 eligibility for an urban or rural enterprise community under 1 34 Title XIII of the federal Omnibus Budget Reconciliation Act of 1 35 1993, such area shall be designated by the state an economic 2 1 development enterprise zone. The area meeting the 2 2 requirements for eligibility for an urban or rural enterprise 2 3 community shall not be included for the purpose of determining 2 4 the area limitation pursuant to subsection 3. In creating an 2 5 enterprise zone, a city with a population of twenty-four 2 6 thousand or more, as shown by the 1990 certified federal 2 7 census, may designate as part of the area tracts or approved 2 8 geographic units located in a contiguous city if such tracts 2 9 or approved geographic units meet the criteria and the city 2 10 agrees to being included. The city may establish more than 2 11 one enterprise zone. Reference in this division to "city" 2 12 means a city with a population of twenty-four thousand or 2 13 more, as shown by the 1990 certified federal census. 2 14 3. A county or city may apply to the department for an 2 15 area to be certified as an enterprise zone at any time prior 2 16 to July 1, 2000. However, the total amount of land designated 2 17 as enterprise zones under subsections 1 and 2 shall not exceed 2 18 in the aggregate one percent of the total county area. 2 19 4. An enterprise zone designation shall remain in effect 2 20 for ten years following the date of certification. Any state 2 21 or local incentives or assistance that may be conferred must 2 22 be conferred before the designation expires. However, the 2 23 benefits of the incentive or assistance may continue beyond 2 24 the expiration. 2 25 Sec. 3. NEW SECTION. 15E.183 ELIGIBLE BUSINESS. 2 26 1. A business which is or will be located in an enterprise 2 27 zone is eligible to receive incentives and assistance under 2 28 this division if the business has not closed or reduced its 2 29 operation in one area of the state and relocated substantially 2 30 the same operation into the enterprise zone and if the 2 31 business meets all of the following: 2 32 a. Is not a retail business. 2 33 b. Pays at least eighty percent of the cost of a standard 2 34 medical and dental insurance plan for all full-time employees. 2 35 c. Pays an average wage that is at or greater than ninety 3 1 percent of the lesser of the average county wage or average 3 2 regional wage, as determined by the department. However, the 3 3 wage paid by the business shall not be less than seven dollars 3 4 and fifty cents per hour. 3 5 d. Creates at least ten full-time positions and maintains 3 6 them for at least ten years. For an existing business in 3 7 counties with a population of ten thousand or less, the 3 8 commission may adopt a provision that allows the business to 3 9 create at least five initial jobs with the additional jobs to 3 10 be added in five years. The business shall include in its 3 11 strategic plan the timeline for job creation. If the existing 3 12 business fails to meet the ten-job creation requirement within 3 13 the five-year period all incentives or assistance will cease 3 14 immediately. 3 15 e. Makes a capital investment of at least five hundred 3 16 thousand dollars. If the business will be occupying a vacant 3 17 building suitable for industrial use, the fair market value of 3 18 the building and land, not to exceed two hundred fifty 3 19 thousand dollars, shall be counted toward the capital 3 20 investment requirement. An existing business that has been 3 21 operating in the enterprise zone for at least five years is 3 22 exempt from the capital investment requirement of this 3 23 paragraph of up to two hundred fifty thousand dollars of the 3 24 fair market value, as established by an appraisal, of the 3 25 building and land. 3 26 2. In addition to meeting the requirements under 3 27 subsection 1, an eligible business shall provide the 3 28 enterprise zone commission with all of the following: 3 29 a. The long-term strategic plan for the business which 3 30 shall include labor and infrastructure needs. 3 31 b. Information dealing with the benefits the business will 3 32 bring to the area. 3 33 c. Examples of why the business should be considered or 3 34 would be considered a good business enterprise. 3 35 d. The impact the business will have on other businesses 4 1 in competition with it. 4 2 e. An affidavit that it has not, within the last five 4 3 years, violated state or federal environmental and worker 4 4 safety statutes, rules, and regulations or if such violation 4 5 has occurred that there were mitigating circumstances or such 4 6 violations did not seriously affect public health or safety or 4 7 the environment. 4 8 3. If a business has received incentives or assistance 4 9 under section 15E.186 and fails to maintain the requirements 4 10 of subsection 1 to be an eligible business, the business is 4 11 subject to repayment of all or a portion of the incentives and 4 12 assistance that it has received. The city or county, as 4 13 applicable, shall have the authority to take action to recover 4 14 the value of taxes not collected as a result of the exemption 4 15 provided by the community to the business. The department of 4 16 revenue and finance shall have the authority to recover the 4 17 value of state taxes or incentives provided under section 4 18 15E.186. The value of state incentives provided under section 4 19 15E.186 includes applicable interest and penalties. The 4 20 department of economic development and the city and county, as 4 21 applicable, shall enter into agreement with the business 4 22 specifying the method for determining the amount of incentives 4 23 or assistance paid which will be repaid in the event of 4 24 failure to maintain the requirements of subsection 1. In 4 25 addition, a business that fails to maintain the requirements 4 26 of subsection 1 shall not receive incentives or assistance for 4 27 each year during which the business is not in compliance. 4 28 Sec. 4. NEW SECTION. 15E.184 DISTRESS CRITERIA. 4 29 1. An enterprise zone may be designated by a county which 4 30 meets at least two of the following criteria: 4 31 a. The county has an average weekly wage that ranks among 4 32 the bottom twenty-five counties in the state based on the 1995 4 33 annual average weekly wage for employees in private business. 4 34 b. The county has a family poverty rate that ranks among 4 35 the top twenty-five counties in the state based on the 1990 5 1 census. 5 2 c. The county has experienced a percentage population loss 5 3 that ranks among the top twenty-five counties in the state 5 4 between 1990 and 1995. 5 5 d. The county has a percentage of persons sixty-five years 5 6 of age or older that ranks among the top twenty-five counties 5 7 in the state based on the 1990 census. 5 8 2. An enterprise zone may be designated by a city which 5 9 meets at least two of the following criteria: 5 10 a. The area has a per capita income of nine thousand six 5 11 hundred dollars or less based on the 1990 census. 5 12 b. The area has a family poverty rate of twelve percent or 5 13 higher based on the 1990 census. 5 14 c. Ten percent or more of the housing units are vacant in 5 15 the area. 5 16 d. The valuations of each class of property in the 5 17 designated area is seventy-five percent or less of the 5 18 citywide average for that classification based upon the most 5 19 recent valuations for property tax purposes. 5 20 e. The area is a blighted area, as defined in section 5 21 403.17. 5 22 3. The department of economic development shall certify 5 23 eligible enterprise zones that meet the requirements of 5 24 subsection 1 upon request by the county or subsection 2 upon 5 25 request by the city, as applicable. 5 26 Sec. 5. NEW SECTION. 15E.185 ENTERPRISE ZONE COMMISSION. 5 27 1. A county in which an eligible enterprise zone is 5 28 certified shall establish an enterprise zone commission to 5 29 review applications from qualified businesses located within 5 30 or requesting to locate within an enterprise zone to receive 5 31 incentives or assistance as provided in section 15E.186. The 5 32 commission shall consist of nine members. Five of these 5 33 members shall consist of one representative of the board of 5 34 supervisors, one member with economic development expertise 5 35 chosen by the department of economic development, one 6 1 representative of the county zoning board, one member of the 6 2 local community college board of directors, and one 6 3 representative of the local workforce development center. 6 4 These five members shall select the remaining four members. 6 5 If the enterprise zone consists of an area meeting the 6 6 requirements for eligibility for an urban or rural enterprise 6 7 community under Title XIII of the federal Omnibus Budget 6 8 Reconciliation Act of 1993, one of the remaining four members 6 9 shall be a representative of that zone. However, if the 6 10 enterprise zone qualifies under the city criteria, one of the 6 11 four members shall be a representative of an international 6 12 labor organization and if an enterprise zone is located in any 6 13 city, a representative, chosen by the city council, of each 6 14 such city may be a member of the commission. A county shall 6 15 have only one enterprise zone commission. 6 16 2. The commission may adopt more stringent requirements, 6 17 including requirements related to compensation and benefits, 6 18 for a business to be eligible for incentives or assistance 6 19 than provided in section 15E.183. The commission may develop 6 20 as an additional requirement that preference in hiring be 6 21 given to individuals who live within the enterprise zone. The 6 22 commission shall work with the local workforce development 6 23 center to determine the labor availability in the area. 6 24 3. If the enterprise zone commission determines that a 6 25 business qualifies for inclusion in an enterprise zone and is 6 26 eligible to receive incentives or assistance as provided in 6 27 section 15E.186, the commission shall submit an application 6 28 for incentives or assistance to the department of economic 6 29 development. The department may approve, defer, or deny the 6 30 application. 6 31 4. In making its decision, the commission or department 6 32 shall consider the impact of the eligible business on other 6 33 businesses in competition with it and compare the compensation 6 34 package of businesses in competition with the business being 6 35 considered for incentives or assistance. The commission or 7 1 department shall make a good faith effort to identify existing 7 2 Iowa businesses within an industry in competition with the 7 3 business being considered for incentives or assistance. The 7 4 commission or department shall also make a good faith effort 7 5 to determine the probability that the proposed incentives or 7 6 assistance will displace employees of existing businesses. In 7 7 determining the impact on businesses in competition with the 7 8 business seeking incentives or assistance, jobs created as a 7 9 result of other jobs being displaced elsewhere in the state 7 10 shall not be considered direct jobs created. 7 11 However, if the commission or department finds that an 7 12 eligible business has a record of violations of the law, 7 13 including but not limited to environmental and worker safety 7 14 statutes, rules, and regulations, over a period of time that 7 15 tends to show a consistent pattern, the eligible business 7 16 shall not qualify for incentives or assistance under section 7 17 15E.186, unless the commission or department finds that the 7 18 violations did not seriously affect public health or safety or 7 19 the environment, or if it did that there were mitigating 7 20 circumstances. In making the findings and determinations 7 21 regarding violations, mitigating circumstances, and whether an 7 22 eligible business is eligible for incentives or assistance 7 23 under section 15E.186, the commission or department shall be 7 24 exempt from chapter 17A. If requested by the commission or 7 25 department, the business shall provide copies of materials 7 26 documenting the type of violation, any fees or penalties 7 27 assessed, court filings, final disposition of any findings and 7 28 any other information which would assist the commission or 7 29 department in assessing the nature of any violation. 7 30 5. A business that is approved to receive incentives or 7 31 assistance shall, for the length of its designation as an 7 32 enterprise zone business, certify annually to the county or 7 33 city, as applicable, and the department of economic 7 34 development its compliance with the requirements of section 7 35 15E.183. 8 1 Sec. 6. NEW SECTION. 15E.186 INCENTIVES ASSISTANCE. 8 2 For purposes of determining the incentives or assistance 8 3 provided in this section, "eligible business" means a business 8 4 which has been approved to receive incentives and assistance 8 5 by the department of economic development pursuant to 8 6 application as provided in section 15E.185. The incentives 8 7 and assistance provided under this division for businesses 8 8 located in enterprise zones shall be for a period not to 8 9 exceed ten years and shall include all of the following: 8 10 1. New jobs credit from withholding, as provided in 8 11 section 15.331. 8 12 2. Sales, services, and use tax refund, as provided in 8 13 section 15.331A. 8 14 3. Investment tax credit, as provided in section 15.333. 8 15 4. Research activities credit, as provided in section 8 16 15.335. 8 17 5. The county or city for which an eligible enterprise 8 18 zone is certified may exempt from all property taxation all or 8 19 a portion of the value added to the property upon which an 8 20 eligible business locates or expands in an enterprise zone and 8 21 which is used in the operation of the eligible business. The 8 22 amount of value added for purposes of this subsection shall be 8 23 the amount of the increase in assessed valuation of the 8 24 property following the location or expansion of the business 8 25 in the enterprise zone. The exemption may be allowed for a 8 26 period not to exceed ten years beginning the year the eligible 8 27 business enters into an agreement with the county or city to 8 28 locate or expand operations in an enterprise zone. 8 29 8 30 8 31 8 32 RON J. CORBETT 8 33 Speaker of the House 8 34 8 35 9 1 9 2 MARY E. KRAMER 9 3 President of the Senate 9 4 9 5 I hereby certify that this bill originated in the House and 9 6 is known as House File 724, Seventy-seventh General Assembly. 9 7 9 8 9 9 9 10 ELIZABETH ISAACSON 9 11 Chief Clerk of the House 9 12 Approved , 1997 9 13 9 14 9 15 9 16 TERRY E. BRANSTAD 9 17 Governor
Text: HF00723 Text: HF00725 Text: HF00700 - HF00799 Text: HF Index Bills and Amendments: General Index Bill History: General Index
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