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PAG LIN
1 1 Section 1. NEW SECTION. 15E.181 INTENT.
1 2 It is the intent of the general assembly that this division
1 3 be administered in a manner to promote new economic
1 4 development in economically distressed areas by encouraging
1 5 communities to target resources in ways that attract
1 6 productive private investment.
1 7 Sec. 2. NEW SECTION. 15E.182 ENTERPRISE ZONES.
1 8 1. A county may create an economic development enterprise
1 9 zone as authorized in this division, subject to certification
1 10 by the department of economic development, by designating up
1 11 to one percent of the county area for that purpose. A county
1 12 may establish more than one enterprise zone.
1 13 2. A city with a population of twenty-five thousand or
1 14 more may create an economic development enterprise zone as
1 15 authorized in this division, subject to certification by the
1 16 department of economic development, by designating one or more
1 17 contiguous census tracts, as determined in the most recent
1 18 federal census, for that purpose. In creating an enterprise
1 19 zone, a city with a population of twenty-five thousand or more
1 20 may designate as part of the area tracts located in a
1 21 contiguous city if such tracts meet the criteria and the city
1 22 agrees to being included. The city may establish more than
1 23 one enterprise zone. Reference in this division to "city"
1 24 means a city with a population of twenty-five thousand or
1 25 more.
1 26 3. A county or city may apply to the department for an
1 27 area to be certified as an enterprise zone at any time prior
1 28 to July 1, 2000. However, the total amount of land designated
1 29 as enterprise zones under subsections 1 and 2 shall not exceed
1 30 in the aggregate one percent of the total county area.
1 31 4. An enterprise zone designation shall remain in effect
1 32 for ten years following the date of certification. Any state
1 33 or local incentives that may be conferred must be conferred
1 34 before the designation expires. However, the benefits of the
1 35 incentive may continue beyond the expiration.
2 1 Sec. 3. NEW SECTION. 15E.183 ELIGIBLE BUSINESS.
2 2 1. A business which is or will be located in an enterprise
2 3 zone is eligible to receive incentives under this division if
2 4 the business has not closed or substantially reduced its
2 5 operation in one area of the state and relocated substantially
2 6 the same operation into the enterprise zone and if the
2 7 business meets all of the following:
2 8 a. Is not a retail or professional service business.
2 9 b. Pays at least eighty percent of the cost of a standard
2 10 medical and dental insurance plan for all full-time employees.
2 11 c. Pays an average wage that is at or greater than eighty-
2 12 five percent of the average county wage but not less than
2 13 seven dollars and fifty cents per hour.
2 14 d. Creates at least ten full-time positions and maintains
2 15 them for at least five years.
2 16 e. Makes a one-time capital investment of at least five
2 17 hundred thousand dollars. If the business is occupying a
2 18 vacant building suitable for industrial use, the fair market
2 19 value of the building shall be counted toward the capital
2 20 investment requirement.
2 21 2. A business is not ineligible under this section when
2 22 the business expands its operation in an enterprise zone if
2 23 existing operations of a similar nature in the state are not
2 24 closed or substantially reduced.
2 25 Sec. 4. NEW SECTION. 15E.184 DISTRESS CRITERIA.
2 26 1. An enterprise zone may be designated by a county in an
2 27 area which meets at least two of the following criteria:
2 28 a. The area has an average weekly wage that ranks among
2 29 the bottom twenty-five counties in the state based on the 1995
2 30 annual average weekly wage for employees in private business.
2 31 b. The area has a family poverty rate that ranks among the
2 32 top twenty-five counties in the state based on the 1990
2 33 census.
2 34 c. The area has experienced a population loss that ranks
2 35 among the top twenty-five counties in the state between 1990
3 1 and 1995.
3 2 d. The area has a percentage of persons sixty-five years
3 3 of age or older that ranks among the top twenty-five counties
3 4 in the state based on the 1990 census.
3 5 2. An enterprise zone may be designated by a city which
3 6 meets at least two of the following criteria:
3 7 a. The area has a per capita income of nine thousand four
3 8 hundred dollars or less based on the 1990 census.
3 9 b. The area has a family poverty rate of twelve percent or
3 10 higher based on the 1990 census.
3 11 c. Ten percent or more of the housing units are vacant in
3 12 the area.
3 13 d. The valuations of each class of property in the
3 14 designated area is seventy-five percent or less of the
3 15 citywide average for that classification based upon the most
3 16 recent valuations for property tax purposes.
3 17 3. The department of economic development shall certify
3 18 eligible enterprise zones that meet the requirements of
3 19 subsection 1 upon request by the county or subsection 2 upon
3 20 request by the city, as applicable.
3 21 Sec. 5. NEW SECTION. 15E.185 ENTERPRISE ZONE COMMISSION.
3 22 A county or city for which an eligible enterprise zone is
3 23 certified shall establish an enterprise zone commission to
3 24 review applications from qualified businesses located within
3 25 or requesting to locate within an enterprise zone to receive
3 26 assistance as provided in section 15E.186. The commission
3 27 shall include but not be limited to representatives from the
3 28 board of supervisors, cities, school districts, community or
3 29 regional economic development offices, community colleges, and
3 30 the servicing utility companies. A county and any cities
3 31 within the county may combine their commissions into one
3 32 commission.
3 33 If the enterprise zone commission determines that a
3 34 business qualifies for inclusion in an enterprise zone and is
3 35 eligible to receive assistance as provided in section 15E.186,
4 1 the commission shall submit an application for assistance to
4 2 the department of economic development. The department may
4 3 approve, defer, or deny the application. A business that is
4 4 approved to receive assistance shall, for the length of its
4 5 designation as an enterprise zone business, certify annually
4 6 to the county or city, as applicable, and the department of
4 7 economic development its compliance with the requirements of
4 8 section 15E.183.
4 9 Sec. 6. NEW SECTION. 15E.186 INCENTIVES – ASSISTANCE.
4 10 For purposes of determining the incentives or assistance
4 11 provided in this section, "eligible business" means a business
4 12 which has been approved to receive incentives and assistance
4 13 by the department of economic development pursuant to
4 14 application as provided in section 15E.185. The incentives
4 15 and assistance provided under this division for businesses
4 16 located in enterprise zones shall include all of the
4 17 following:
4 18 1. New jobs credit from withholding, as provided in
4 19 section 15.331.
4 20 2. Sales, services, and use tax refund, as provided in
4 21 section 15.331A.
4 22 3. Investment tax credit, as provided in section 15.333.
4 23 4. Research activities credit, as provided in section
4 24 15.335.
4 25 5. The county or city for which an eligible enterprise
4 26 zone is certified may exempt from all property taxation all or
4 27 a portion of the property upon which an eligible business
4 28 locates or expands in an enterprise zone and which is used in
4 29 the operation of the eligible business. The exemption may be
4 30 allowed for a period not to exceed ten years beginning the
4 31 year the eligible business enters into an agreement with the
4 32 county or city to locate or expand operations in an enterprise
4 33 zone.
4 34 EXPLANATION
4 35 The bill authorizes a county to designate up to 1 percent
5 1 of its total area as enterprise zones. A city with a
5 2 population of 25,000 or more may designate more than one or
5 3 more contiguous census tracts as enterprise zones. However,
5 4 the total amount of land that may be in these city and county
5 5 zones cannot exceed in the aggregate 1 percent of the total
5 6 area of the county. In addition, the department of economic
5 7 development must approve any such designation. In order for
5 8 an area to be designated an enterprise zone, at least two of
5 9 four criteria must be met. In the case of county-designated
5 10 areas, these are having an average weekly wage that ranks
5 11 among the bottom 25 counties based upon 1995 statistics;
5 12 family poverty rate that ranks among the top 25 counties based
5 13 upon the 1990 census; population loss that ranks among the top
5 14 25 counties between 1990 and 1995; and a percentage of persons
5 15 65 years old that ranks among the top 25 counties. In the
5 16 case of city-designated areas these are having per capita
5 17 income of $9,400 or less, poverty rate of 12 percent or more,
5 18 and 10 percent of more of housing units are vacant, all
5 19 according to the 1990 census, and the valuations in the area
5 20 equal 75 percent or less of the average for the city. A
5 21 business that is or will be located in the enterprise zone
5 22 shall receive incentives or assistance if the business meets
5 23 all of certain eligibility criteria. These criteria include
5 24 paying at least 80 percent of the cost of standard medical and
5 25 dental insurance, in a county-designated zone paying at least
5 26 85 percent of the average wage in the county, creation of at
5 27 least 10 new jobs, and making a capital investment of at least
5 28 $500,000. Retail or professional service businesses are not
5 29 eligible nor are businesses that move similar operations from
5 30 another part of the state to the enterprise zone.
5 31 The incentives and assistance that shall be provided are a
5 32 new jobs credit for training new employees to work in the
5 33 zone, refund of sales and services taxes for utility services
5 34 furnished in the zone and for materials used in construction
5 35 contracts done in the zone, investment tax credit for
6 1 investments made in the zone, credit for increasing research
6 2 activities in the state, and if the county or city so decides,
6 3 exemption from all property taxation for property used in the
6 4 business in the zone.
6 5 LSB 2714HC 77
6 6 mg/sc/14
Text: HSB00218 Text: HSB00220 Text: HSB00200 - HSB00299 Text: HSB Index Bills and Amendments: General Index Bill History: General Index
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