Senate Amendment 5135 PAG LIN 1 1 Amend Senate File 2183, as passed by the Senate, as 1 2 follows: 1 3 #1. By striking everything after the enacting 1 4 clause and inserting the following: 1 5 <Section 1. Section 15E.192, subsection 2, Code 1 6 Supplement 2005, is amended to read as follows: 1 7 2. A citywith a population of twenty=four 1 8 thousand or morewhich includes at least three census 1 9 tracts with at least fifty percent of the population 1 10 in each census tract located in the city, as shown by 1 11 the 2000 certified federal census, may create an 1 12 economic development enterprise zone as authorized in 1 13 this division, subject to certification by the 1 14 department of economic development, by designating one 1 15 or more contiguous census tracts, as determined in the 1 16 most recent federal census, or designating other 1 17 geographic units approved by the department of 1 18 economic development for that purpose. If there is an 1 19 area in the city which meets the requirements for 1 20 eligibility for an urban or rural enterprise community 1 21 under Title XIII of the federal Omnibus Budget 1 22 Reconciliation Act of 1993, such area shall be 1 23 designated by the state as an economic development 1 24 enterprise zone. The area meeting the requirements 1 25 for eligibility for an urban or rural enterprise 1 26 community shall not be included for the purpose of 1 27 determining the area limitation pursuant to subsection 1 28 3. In creating an enterprise zone, a citywith a 1 29 population of twenty=four thousand or morewhich 1 30 includes at least three census tracts with at least 1 31 fifty percent of the population in each census tract 1 32 located in the city, as shown by the 2000 certified 1 33 federal census, may designate as part of the area 1 34 tracts or approved geographic units located in a 1 35 contiguous city if such tracts or approved geographic 1 36 units meet the criteria and the city agrees to being 1 37 included. The city may establish more than one 1 38 enterprise zone. Reference in this division to "city" 1 39 means a citywith a population of twenty=four thousand 1 40 or morewhich includes at least three census tracts 1 41 with at least fifty percent of the population in each 1 42 census tract located in the city, as shown by the 2000 1 43 certified federal census. 1 44 Sec. 2. Section 15E.192, Code Supplement 2005, is 1 45 amended by adding the following new subsection: 1 46 NEW SUBSECTION. 2A. A city may create an economic 1 47 development enterprise zone as authorized in this 1 48 division, subject to certification by the department 1 49 of economic development, by designating up to four 1 50 square miles of the city for that purpose. In order 2 1 for an enterprise zone to be certified pursuant to 2 2 this subsection, an enterprise zone shall meet the 2 3 distress criteria provided in section 15E.194, 2 4 subsection 2A. Section 15E.194, subsection 2, shall 2 5 not apply to an enterprise zone certified pursuant to 2 6 this subsection. For the fiscal year beginning July 2 7 1, 2007, and ending June 30, 2010, each fiscal year a 2 8 cumulative total of not more than twenty=five million 2 9 dollars worth of incentives and assistance under 2 10 section 15E.196, subsections 1, 2, 3, 4, and 6, shall 2 11 be awarded to businesses located in enterprise zones 2 12 certified during that fiscal year pursuant to this 2 13 subsection. For purposes of this subsection and 2 14 section 15E.194, subsection 2A, "city" means a city 2 15 that includes at least three census tracts, as 2 16 determined in the most recent federal census. 2 17 Sec. 3. Section 15E.192, subsection 3, paragraph 2 18 b, Code Supplement 2005, is amended to read as 2 19 follows: 2 20 b. A county or city may apply to the department 2 21 for an area to be certified as an enterprise zone at 2 22 any time prior toMarch 1, 2006July 1, 2010. 2 23 However, the total amount of land designated as 2 24 enterprise zones undersubsections 1 and 2subsection 2 25 1, and any other enterprise zones certified by the 2 26 department, excluding those approved pursuant to 2 27 subsection 2 and section 15E.194,subsection2 28 subsections 2A and 4, shall not exceed in the 2 29 aggregate one percent of the total county area. 2 30 Sec. 4. Section 15E.192, subsection 4, Code 2 31 Supplement 2005, is amended to read as follows: 2 32 4. An enterprise zone designation shall remain in 2 33 effect for ten years following the date of 2 34 certification. Prior to the expiration of an 2 35 enterprise zone designation, a city or county meeting 2 36 the distress criteria in section 15E.194 may apply for 2 37 a one=time ten=year extension of the designation. In 2 38 applying for a one=time ten=year extension of an 2 39 enterprise zone designation, a city or county may 2 40 redefine the boundaries of the enterprise zone 2 41 provided that the redefined enterprise zone meets the 2 42 applicable distress criteria provided in section 2 43 15E.194. Prior to the expiration of an enterprise 2 44 zone designation, a city or county that is not 2 45 eligible to designate an enterprise zone but 2 46 previously designated the enterprise zone pursuant to 2 47 section 15E.194, Code Supplement 1997, may apply for a 2 48 one=time extension of the enterprise zone designation 2 49 to one year following the complete publication of the 2 50 2010 federal census. In applying for a one=time 3 1 extension of the enterprise zone designation, the city 3 2 or county may redefine the boundaries of the 3 3 enterprise zone provided that the redefined enterprise 3 4 zone meets the distress criteria provided in section 3 5 15E.194, Code Supplement 1997. The department shall 3 6 designate by rule the specific date of one year 3 7 following the complete publication of the 2010 federal 3 8 census. Any state or local incentives or assistance 3 9 that may be conferred must be conferred before the 3 10 designation expires. However, the benefits of the 3 11 incentive or assistance may continue beyond the 3 12 expiration. 3 13 Sec. 5. Section 15E.193B, subsection 1, Code 3 14 Supplement 2005, is amended to read as follows: 3 15 1. A housing business qualifying under this 3 16 section is eligible to receive incentives and 3 17 assistance only as provided in this section. An 3 18 eligible housing business shall not receive incentives 3 19 or assistance for a home or multiple dwelling unit 3 20 built or rehabilitated in an enterprise zone 3 21 designated pursuant to section 15E.194, subsection 2A 3 22 or 4. Sections 15E.193 and 15E.196 do not apply to an 3 23 eligible housing business qualifying under this 3 24 section. 3 25 Sec. 6. Section 15E.194, Code 2005, is amended by 3 26 adding the following new subsection: 3 27 NEW SUBSECTION. 2A. A city may designate an area 3 28 of up to four square miles to be an enterprise zone if 3 29 the area includes or is located within four miles of 3 30 at least three of the following: 3 31 a. A commercial service airport. 3 32 b. A barge terminal or a navigable waterway. 3 33 c. Entry to a rail line. 3 34 d. Entry to an interstate highway. 3 35 e. Entry to a commercial and industrial highway 3 36 network as identified pursuant to section 313.2A. 3 37 An eligible housing business under section 15E.193B 3 38 shall not receive incentives or assistance for a home 3 39 or multiple dwelling unit built or rehabilitated in an 3 40 enterprise zone designated pursuant to this 3 41 subsection. 3 42 Sec. 7. Section 15E.194, subsection 3, Code 2005, 3 43 is amended to read as follows: 3 44 3. The department of economic development shall 3 45 certify eligible enterprise zones that meet the 3 46 requirements of subsection 1 upon request by the 3 47 county,orsubsection 2 upon request by the city, or 3 48 subsection 2A upon request by the city, as applicable. 3 49 Sec. 8. Section 15E.195, subsection 2, Code 2005, 3 50 is amended to read as follows: 4 1 2. A citywith a population of twenty=four 4 2 thousand or morewhich includes at least three census 4 3 tracts with at least fifty percent of the population 4 4 in each census tract located in the city and which 4 5 designates an enterprise zone pursuant to section 4 6 15E.194, subsection 2 or 2A, and in which an eligible 4 7 enterprise zone is certified shall establish an 4 8 enterprise zone commission to review applications from 4 9 qualified businesses located within or requesting to 4 10 locate within an enterprise zone to receive incentives 4 11 or assistance as provided in section 15E.196. The 4 12 enterprise zone commission shall review applications 4 13 from qualified housing businesses requesting to 4 14 receive incentives or assistance as provided in 4 15 section 15E.193B. The commission shall consist of 4 16 nine members. Six of these members shall consist of 4 17 one representative of an international labor 4 18 organization, one member with economic development 4 19 expertise chosen by the department of economic 4 20 development, one representative of the city council, 4 21 one member of the local community college board of 4 22 directors, one member of the city planning and zoning 4 23 commission, and one representative of the local 4 24 workforce development center. These six members shall 4 25 select the remaining three members. If the enterprise 4 26 zone consists of an area meeting the requirements for 4 27 eligibility for an urban enterprise community under 4 28 Title XIII of the federal Omnibus Budget 4 29 Reconciliation Act of 1993, one of the remaining three 4 30 members shall be a representative of that community. 4 31 If a city contiguous to the city designating the 4 32 enterprise zone is included in an enterprise zone, a 4 33 representative of the contiguous city, chosen by the 4 34 city council, shall be a member of the commission. A 4 35 city in which an eligible enterprise zone is certified 4 36 shall have only one enterprise zone commission. If a 4 37 city has established an enterprise zone commission 4 38 prior to July 1, 1998, the city may petition to the 4 39 department of economic development to change the 4 40 structure of the existing commission. 4 41 Sec. 9. REPORT. By December 31, 2006, the 4 42 department of economic development shall submit a 4 43 written report to the general assembly regarding the 4 44 enterprise zone program and other programs 4 45 administered by the department. The report shall 4 46 include an analysis of the impact the enterprise zone 4 47 program has on the state's economy and the economy of 4 48 the cities and counties where enterprise zones are and 4 49 have been located, how the enterprise zone program 4 50 integrates with other programs administered by the 5 1 department, whether other programs administered by the 5 2 department are used to focus assistance on 5 3 economically distressed areas of the state, and any 5 4 changes to the enterprise zone program or any other 5 5 programs administered by the department necessary to 5 6 better serve the needs of the economically distressed 5 7 areas of the state. 5 8 Sec. 10. EFFECTIVE AND RETROACTIVE APPLICABILITY 5 9 DATES. 5 10 1. The section of this Act amending section 5 11 15E.192, subsection 4, being deemed of immediate 5 12 importance, takes effect upon enactment and applies 5 13 retroactively to May 14, 1997. 5 14 2. The remaining sections of this Act, being 5 15 deemed of immediate importance, take effect upon 5 16 enactment and apply retroactively to March 1, 2006.> 5 17 #2. Title page, by striking lines 1 and 2 and 5 18 inserting the following: <An Act relating to the 5 19 certification of enterprise zones and incentives and 5 20 assistance under the enterprise zone program and 5 21 including effective date and retroactive applicability 5 22 provisions.> 5 23 #3. By renumbering as necessary. 5 24 SF 2183.H 5 25 tm/es/25 -1-