Text: HF02163 Text: HF02165 Text: HF02100 - HF02199 Text: HF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 HOUSE FILE 2164 1 2 1 3 AN ACT 1 4 RELATING TO ECONOMIC DEVELOPMENT ENTERPRISE ZONES AND 1 5 TO LOCAL COMMUNITY AND ECONOMIC DEVELOPMENT PLANNING 1 6 ASSISTANCE AND THE COMMUNITY BUILDER PROGRAM. 1 7 1 8 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 1 9 1 10 Section 1. Section 15.108, subsection 3, paragraph a, Code 1 11 Supplement 1997, is amended by adding the following new 1 12 subparagraph: 1 13 NEW SUBPARAGRAPH. (5) Encourage cities, counties, local 1 14 and regional government organizations, and local and regional 1 15 economic development organizations to develop and implement 1 16 comprehensive community and economic development plans. In 1 17 evaluating financial assistance applications, the department 1 18 shall award supplementary credit to applications submitted by 1 19 cities, counties, local and regional government organizations, 1 20 and local and regional economic development organizations that 1 21 have developed a comprehensive community and economic 1 22 development plan. 1 23 Sec. 2. Section 15.108, subsection 3, paragraph b, 1 24 subparagraph (3), Code Supplement 1997, is amended to read as 1 25 follows: 1 26 (3) Provide planning assistance to cities,other1 27municipalities,counties,groups of adjacent communities,1 28metropolitanlocal and regionalareas, and official1 29governmental planning agenciesgovernment organizations, and 1 30 local and regional economic development organizations. 1 31 Subject to the availability of funds for this purpose, the 1 32 department may provide financial assistance to cities, 1 33 counties, local and regional government organizations, and 1 34 local and regional economic development organizations for the 1 35 purpose of developing community and economic development 2 1 plans. 2 2 Sec. 3. Section 15.282, Code 1997, is amended to read as 2 3 follows: 2 4 15.282 PURPOSE. 2 5 The purpose of this part is to assist communities and rural 2 6 areas of the state with their development and governmental 2 7 responsibilities by providing low-interest and no-interest 2 8 loans or grants for traditional infrastructure, new 2 9 infrastructure, and housing, and their efforts relating to2 10community, business, and economic development under the2 11community builder program established in section 15.308. 2 12 The department may also provide assistance for 2 13 infrastructure assessment or planning efforts pursuant to 2 14 rules established by the department. 2 15 Sec. 4. Section 15.286A, Code 1997, is amended to read as 2 16 follows: 2 17 15.286A PLANNING. 2 18 1. The planning category contains projects that include 2 19 but are not limited to planning effortsleading to completion2 20of the community builder program established in section 15.3082 21andfor statewide or regional infrastructure assessment or 2 22 planning. 2 232. A city, cluster of cities, county, group of counties,2 24council of governments, or regional planning commission, or2 25one of these entities on behalf of an unincorporated community2 26or group of unincorporated communities, is eligible to apply2 27for loans or grants from this category for planning efforts2 28related to the community builder program.2 293.2. The department may issue requests for proposals for 2 30 applications on a competitive basis or may negotiate with one 2 31 or more public or private contractors for statewide or 2 32 regional infrastructure assessment or planning. 2 334.3. The department shall adopt rules pursuant to chapter 2 34 17A for administration of this category. 2 35 Sec. 5. Section 15.327, subsection 1, Code 1997, is 3 1 amended to read as follows: 3 2 1. "Community" means a city, county, or entity established 3 3 pursuant to chapter 28Ethat is a certified participant under3 4section 15.308 or has established a comprehensive plan3 5approved by the department. 3 6 Sec. 6. Section 15E.192, subsection 1, Code Supplement 3 7 1997, is amended to read as follows: 3 8 1. A county may create an economic development enterprise 3 9 zone as authorized in this division, subject to certification 3 10 by the department of economic development, by designating up 3 11 to one percent of the county area for that purpose. An 3 12 eligible county containing a city whose boundaries extend into 3 13 an adjacent county may establish an enterprise zone in an area 3 14 of the city located in the adjacent county if the adjacent 3 15 county's board of supervisors adopts a resolution approving 3 16 the establishment of the enterprise zone in the city and the 3 17 two counties enter into an agreement pursuant to chapter 28E 3 18 regarding the establishment of the enterprise zone. A county 3 19 may establish more than one enterprise zone. 3 20 Sec. 7. Section 15E.193, subsection 1, paragraph a, Code 3 21 Supplement 1997, is amended to read as follows: 3 22 a. Is not a retail business or a business where entrance 3 23 is limited by a cover charge or membership requirement. 3 24 Sec. 8. Section 15E.193, subsection 1, paragraph b, Code 3 25 Supplement 1997, is amended to read as follows: 3 26 b.Pays at least eighty percent of the cost of a standard3 27medical and dental insurance plan for all full-time employees.3 28 Provides all full-time employees with the option of choosing 3 29 one of the following: 3 30 (1) The business pays eighty percent of both of the 3 31 following: 3 32 (a) The cost of a standard medical insurance plan. 3 33 (b) The cost of a standard dental insurance plan or an 3 34 equivalent plan. 3 35 (2) The business provides the employee with a monetarily 4 1 equivalent plan to the plan provided for in subparagraph (1). 4 2 Sec. 9. Section 15E.193, subsection 1, paragraph d, Code 4 3 Supplement 1997, is amended to read as follows: 4 4 d. Creates at least ten full-time positions and maintains 4 5 them for at least ten years. For an existing business in 4 6 counties with a population of ten thousand or less or in 4 7 cities with a population of two thousand of less, the 4 8 commission may adopt a provision that allows the business to 4 9 create at least five initial jobs with the additional jobs to 4 10 be added in five years. The business shall include in its 4 11 strategic plan the timeline for job creation. If the existing 4 12 business fails to meet the ten-job creation requirement within 4 13 the five-year period, all incentives or assistance will cease 4 14 immediately. 4 15 Sec. 10. NEW SECTION. 15E.193A ALTERNATIVE ELIGIBLE 4 16 BUSINESS CRITERIA. 4 17 1. A business which is not located in an enterprise zone 4 18 is eligible to receive incentives and assistance under section 4 19 15E.196 if the business has not closed or reduced its 4 20 operation in one area of the state and relocated substantially 4 21 the same operation in a location which qualifies the business 4 22 under this section and if the business meets all of the 4 23 following criteria: 4 24 a. Satisfies the requirements in section 15E.193, 4 25 subsection 1, paragraphs "a", "b", "d", and "e". 4 26 b. Is or will be located in a city with a population 4 27 between eight thousand and twenty-four thousand as determined 4 28 by population estimates by the United States bureau of the 4 29 census for the year of 1995. 4 30 c. Is or will be located in a city which is not more than 4 31 thirty-five miles from an existing enterprise zone in this 4 32 state or an equivalent zone in an adjacent state. 4 33 d. Satisfies the requirement in section 15.329, subsection 4 34 1, paragraph "d". 4 35 e. Is or will be located in an area which meets two of the 5 1 criteria listed in section 15E.194, subsection 2. 5 2 f. Receives approval by ordinance or resolution from the 5 3 city in which the project is located. 5 4 2. After approval of a project by ordinance or resolution, 5 5 the city shall submit an application for incentives and 5 6 assistance to the department of economic development. As part 5 7 of the application, the city shall submit information relating 5 8 the requirements listed in subsection 1 and in section 5 9 15E.193, subsection 2. The department may approve, defer, or 5 10 deny the application. 5 11 3. If a business has received incentives or assistance 5 12 under section 15E.196 and fails to maintain the requirements 5 13 of subsection 1 to be an eligible business, the business is 5 14 subject to repayment of all or a portion of the incentives and 5 15 assistance that it has received. The city shall have the 5 16 authority to take action to recover the value of taxes not 5 17 collected as a result of an exemption provided by the 5 18 community to the business. The department of revenue and 5 19 finance shall have the authority to recover the value of state 5 20 taxes or incentives provided under section 15E.196. The value 5 21 of state incentives provided under section 15E.196 includes 5 22 applicable interest and penalties. The department of economic 5 23 development and the city shall enter into agreements with the 5 24 business specifying the method for determining the amount of 5 25 incentives or assistance paid which will be repaid in the 5 26 event of failure to maintain the requirements of subsection 1. 5 27 In addition, a business that fails to maintain the 5 28 requirements of subsection 1 shall not receive incentives or 5 29 assistance for each year during which the business is not in 5 30 compliance. 5 31 4. In making its decision regarding an application, the 5 32 department of economic development shall consider the impact 5 33 of the eligible business on other businesses in competition 5 34 with it and compare the compensation package of businesses in 5 35 competition with the business being considered for incentives 6 1 or assistance. The department shall make a good faith effort 6 2 to identify existing Iowa businesses within an industry in 6 3 competition with the business being considered for incentives 6 4 or assistance. The department shall also make a good faith 6 5 effort to determine the probability that the proposed 6 6 incentives or assistance will displace employees of existing 6 7 businesses. In determining the impact on businesses in 6 8 competition with the business seeking incentives or 6 9 assistance, jobs created as a result of other jobs being 6 10 displaced elsewhere in the state shall not be considered 6 11 direct jobs created. 6 12 However, if the department finds that an eligible business 6 13 has a record of violations of the law, including but not 6 14 limited to environmental and worker safety statutes, rules, 6 15 and regulations, over a period of time that tends to show a 6 16 consistent pattern, the eligible business shall not qualify 6 17 for incentives or assistance under section 15E.196, unless the 6 18 department finds that the violations did not seriously affect 6 19 public health or safety or the environment, or if it did that 6 20 there were mitigating circumstances. In making the findings 6 21 and determinations regarding violations, mitigating 6 22 circumstances, and whether an eligible business is eligible 6 23 for incentives or assistance under section 15E.196, the 6 24 department is exempt from chapter 17A. If requested by the 6 25 department, the business shall provide copies of materials 6 26 documenting the type of violation, any fees or penalties 6 27 assessed, court filings, final disposition of any findings, 6 28 and any other information which would assist the department in 6 29 assessing the nature of any violation. 6 30 5. A business that is approved to receive incentives or 6 31 assistance shall, for the length of its designation as an 6 32 enterprise zone business, certify annually to the department 6 33 of economic development its compliance with the requirements 6 34 of this section. 6 35 Sec. 11. Section 15E.195, subsection 1, Code Supplement 7 1 1997, is amended to read as follows: 7 2 1. A county which designates an enterprise zone pursuant 7 3 to section 15E.194, subsection 1, and in which an eligible 7 4 enterprise zone is certified shall establish an enterprise 7 5 zone commission to review applications from qualified 7 6 businesses located within or requesting to locate within an 7 7 enterprise zone designated pursuant to section 15E.194, 7 8 subsection 1, to receive incentives or assistance as provided 7 9 in section 15E.196. The commission shall consist of nine 7 10 members. Five of these members shall consist of one 7 11 representative of the board of supervisors, one member with 7 12 economic development expertise chosen by the department of 7 13 economic development, one representative of the county zoning 7 14 board, one member of the local community college board of 7 15 directors, and one representative of the local workforce 7 16 development center. These five members shall select the 7 17 remaining four members. If the enterprise zone consists of an 7 18 area meeting the requirements for eligibility for an urban or 7 19 rural enterprise community under Title XIII of the federal 7 20 Omnibus Budget Reconciliation Act of 1993, one of the 7 21 remaining four members shall be a representative of thatzone7 22 community.However, if the enterprise zone qualifies under7 23the city criteria, one of the four members shall be a7 24representative of an international labor organization and if7 25an enterprise zone is located in any city, a representative,7 26chosen by the city council, of each such city may be a member7 27of the commission.A county shall have only one enterprise 7 28 zone commission to review applications for incentives and 7 29 assistance for businesses located within or requesting to 7 30 locate within a certified enterprise zone designated pursuant 7 31 to section 15E.194, subsection 1. 7 32 Sec. 12. Section 15E.195, Code Supplement 1997, is amended 7 33 by adding the following new subsection: 7 34 NEW SUBSECTION. 1A. A city with a population of twenty- 7 35 four thousand or more which designates an enterprise zone 8 1 pursuant to section 15E.194, subsection 2, and in which an 8 2 eligible enterprise zone is certified shall establish an 8 3 enterprise zone commission to review applications from 8 4 qualified businesses located within or requesting to locate 8 5 within an enterprise zone to receive incentives or assistance 8 6 as provided in section 15E.196. The commission shall consist 8 7 of nine members. Six of these members shall consist of one 8 8 representative of an international labor organization, one 8 9 member with economic development expertise chosen by the 8 10 department of economic development, one representative of the 8 11 city council, one member of the local community college board 8 12 of directors, one member of the city planning and zoning 8 13 commission, and one representative of the local workforce 8 14 development center. These six members shall select the 8 15 remaining three members. If the enterprise zone consists of 8 16 an area meeting the requirements for eligibility for an urban 8 17 enterprise community under Title XIII of the federal Omnibus 8 18 Budget Reconciliation Act of 1993, one of the remaining three 8 19 members shall be a representative of that community. If a 8 20 city contiguous to the city designating the enterprise zone is 8 21 included in an enterprise zone, a representative of the 8 22 contiguous city, chosen by the city council, shall be a member 8 23 of the commission. A city in which an eligible enterprise 8 24 zone is certified shall have only one enterprise zone 8 25 commission. If a city has established an enterprise zone 8 26 commission prior to the effective date of this Act, the city 8 27 may petition to the department of economic development to 8 28 change the structure of the existing commission. 8 29 Sec. 13. Section 15E.196, subsection 5, Code Supplement 8 30 1997, is amended to read as follows: 8 31 5. The county or city for which an eligible enterprise 8 32 zone is certified may exempt from all property taxation all or 8 33 a portion of the value added to the property upon which an 8 34 eligible business locates or expands in an enterprise zone and 8 35 which is used in the operation of the eligible business. The 9 1 amount of value added for purposes of this subsection shall be 9 2 the amount of the increase in assessed valuation of the 9 3 property following the location or expansion of the business 9 4 in the enterprise zone. If an exemption provided pursuant to 9 5 this subsection is made applicable to only a portion of the 9 6 property within an enterprise zone, the definition of that 9 7 subset of eligible property must be by uniform criteria which 9 8 further some planning objective established by the city or 9 9 county enterprise zone commission and approved by the eligible 9 10 city or county. The exemption may be allowed for a period not 9 11 to exceed ten years beginning the year the eligible business 9 12 enters into an agreement with the county or city to locate or 9 13 expand operations in an enterprise zone. 9 14 Sec. 14. Section 15.308, Code 1997, is repealed. 9 15 9 16 9 17 9 18 RON J. CORBETT 9 19 Speaker of the House 9 20 9 21 9 22 9 23 MARY E. KRAMER 9 24 President of the Senate 9 25 9 26 I hereby certify that this bill originated in the House and 9 27 is known as House File 2164, Seventy-seventh General Assembly. 9 28 9 29 9 30 9 31 ELIZABETH ISAACSON 9 32 Chief Clerk of the House 9 33 Approved , 1998 9 34 9 35 10 1 10 2 TERRY E. BRANSTAD 10 3 Governor
Text: HF02163 Text: HF02165 Text: HF02100 - HF02199 Text: HF Index Bills and Amendments: General Index Bill History: General Index
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