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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 may create an economic development enterprise
1 14 zone as authorized in this division, subject to certification
1 15 by the department of economic development, by designating one
1 16 or more contiguous census tracts, as determined in the most
1 17 recent federal census, for that purpose. A city may establish
1 18 more than one enterprise zone.
1 19 3. A county or city may apply to the department for an
1 20 area to be certified as an enterprise zone at any time prior
1 21 to July 1, 2000. However, the total amount of land designated
1 22 as enterprise zones under subsections 1 and 2 shall not exceed
1 23 in the aggregate one percent of the total county area.
1 24 4. An enterprise zone designation shall remain in effect
1 25 for ten years following the date of certification. Any state
1 26 or local incentives that may be conferred must be conferred
1 27 before the designation expires. However, the benefits of the
1 28 incentive may continue beyond the expiration.
1 29 Sec. 3. NEW SECTION. 15E.183 ELIGIBLE BUSINESS.
1 30 1. A business which is or will be located in an enterprise
1 31 zone is eligible to receive incentives under this division if
1 32 the business has not closed or substantially reduced its
1 33 operation in one area of the state and relocated substantially
1 34 the same operation into the enterprise zone and if the
1 35 business meets all of the following:
2 1 a. Is not a retail or professional service business.
2 2 b. Pays at least eighty percent of the cost of a standard
2 3 medical and dental insurance plan for all full-time employees.
2 4 c. Pays an average wage that is at or greater than one
2 5 hundred percent of the average county wage but not less than
2 6 seven dollars and fifty cents per hour.
2 7 d. Creates at least ten full-time positions and maintains
2 8 them for at least five years.
2 9 e. Makes a one-time capital investment of at least five
2 10 hundred thousand dollars. If the business is occupying a
2 11 vacant building suitable for industrial use, the fair market
2 12 value of the building shall be counted toward the capital
2 13 investment requirement.
2 14 2. A business is not ineligible under this section when
2 15 the business expands its operation in an enterprise zone if
2 16 existing operations of a similar nature in the state are not
2 17 closed or substantially reduced.
2 18 Sec. 4. NEW SECTION. 15E.184 DISTRESS CRITERIA.
2 19 1. An enterprise zone may be designated in an area which
2 20 meets at least two of the following criteria:
2 21 a. The area has an average weekly wage that ranks among
2 22 the bottom twenty-five counties in the state based on the 1995
2 23 annual average weekly wage for employees in private business.
2 24 b. The area has a family poverty rate that ranks among the
2 25 top twenty-five counties in the state based on the 1990
2 26 census.
2 27 c. The area has experienced a population loss that ranks
2 28 among the top twenty-five counties in the state between 1990
2 29 and 1995.
2 30 d. The area has a percentage of persons sixty-five years
2 31 of age or older that ranks among the top twenty-five counties
2 32 in the state based on the 1990 census.
2 33 2. The department of economic development shall certify
2 34 eligible enterprise zones that meet the requirements of
2 35 subsection 1 upon request by the county or city, as
3 1 applicable.
3 2 Sec. 5. NEW SECTION. 15E.185 ENTERPRISE ZONE COMMISSION.
3 3 A county or city for which an eligible enterprise zone is
3 4 certified shall establish an enterprise zone commission to
3 5 review applications from qualified businesses located within
3 6 or requesting to locate within an enterprise zone to receive
3 7 assistance as provided in section 15E.186. The commission
3 8 shall include but not be limited to representatives from the
3 9 board of supervisors, cities, school districts, community or
3 10 regional economic development offices, community colleges, and
3 11 the servicing utility companies. A county and any cities
3 12 within the county may combine their commissions into one
3 13 commission.
3 14 If the enterprise zone commission determines that a
3 15 business qualifies for inclusion in an enterprise zone and is
3 16 eligible to receive assistance as provided in section 15E.186,
3 17 the commission shall submit an application for assistance to
3 18 the department of economic development. The department may
3 19 approve, defer, or deny the application. A business that is
3 20 approved to receive assistance shall, for the length of its
3 21 designation as an enterprise zone business, certify annually
3 22 to the county or city, as applicable, and the department of
3 23 economic development its compliance with the requirements of
3 24 section 15E.183.
3 25 Sec. 6. NEW SECTION. 15E.186 INCENTIVES – ASSISTANCE.
3 26 For purposes of determining the incentives or assistance
3 27 provided in this section, "eligible business" means a business
3 28 which has been approved to receive incentives and assistance
3 29 by the department of economic development pursuant to
3 30 application as provided in section 15E.185. The incentives
3 31 and assistance provided under this division for businesses
3 32 located in enterprise zones shall include all of the
3 33 following:
3 34 1. New jobs credit from withholding, as provided in
3 35 section 15.331.
4 1 2. Sales, services, and use tax refund, as provided in
4 2 section 15.331A.
4 3 3. Investment tax credit, as provided in section 15.333.
4 4 4. Research activities credit, as provided in section
4 5 15.335.
4 6 5. The county or city for which an eligible enterprise
4 7 zone is certified may exempt from all property taxation all or
4 8 a portion of the property upon which an eligible business
4 9 locates or expands in an enterprise zone and which is used in
4 10 the operation of the eligible business. The exemption may be
4 11 allowed for a period not to exceed ten years beginning the
4 12 year the eligible business enters into an agreement with the
4 13 county or city to locate or expand operations in an enterprise
4 14 zone.
4 15 EXPLANATION
4 16 The bill authorizes a county to designate up to 1 percent
4 17 of its total area as enterprise zones. A city may designate
4 18 more than one or more contiguous census tracts as enterprise
4 19 zones. However, the total amount of land that may be in these
4 20 city and county zones cannot exceed in the aggregate 1 percent
4 21 of the total area of the county. In addition, the department
4 22 of economic development must approve any such designation. In
4 23 order for an area to be designated an enterprise zone, at
4 24 least two of four criteria must be met. These are having an
4 25 average weekly wage that ranks among the bottom 25 counties
4 26 based upon 1995 statistics; family poverty rate that ranks
4 27 among the top 25 counties based upon the 1990 census;
4 28 population loss that ranks among the top 25 counties between
4 29 1990 and 1995; and a percentage of persons 65 years old that
4 30 ranks among the top 25 counties. A business that is or will
4 31 be located in the enterprise zone shall receive incentives or
4 32 assistance if the business meets all of certain eligibility
4 33 criteria. These criteria include paying at least 80 percent
4 34 of the cost of standard medical and dental insurance, paying
4 35 at least 100 percent of the average wage in the county,
5 1 creation of at least 10 new jobs, and making a capital
5 2 investment of at least $500,000. Retail or professional
5 3 service businesses are not eligible nor are businesses that
5 4 move similar operations from another part of the state to the
5 5 enterprise zone.
5 6 The incentives and assistance that shall be provided are a
5 7 new jobs credit for training new employees to work in the
5 8 zone, refund of sales and services taxes for utility services
5 9 furnished in the zone and for materials used in construction
5 10 contracts done in the zone, investment tax credit for
5 11 investments made in the zone, credit for increasing research
5 12 activities in the state, and if the county or city so decides,
5 13 exemption from all property taxation for property used in the
5 14 business in the zone.
5 15 LSB 2694SC 77
5 16 mg/sc/14
Text: SSB00201 Text: SSB00203 Text: SSB00200 - SSB00299 Text: SSB Index Bills and Amendments: General Index Bill History: General Index
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