House File 2312
HOUSE FILE
BY DIX
Passed House, Date Passed Senate, Date
Vote: Ayes Nays Vote: Ayes Nays
Approved
A BILL FOR
1 An Act relating to the ability of cities and counties to
2 designate enterprise zones.
3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
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PAG LIN
1 1 Section 1. Section 15A.1, subsection 5, paragraph c, Code
1 2 2003, is amended to read as follows:
1 3 c. The area is located in a city or county that meets the
1 4 distress criteria provided under the is designated an
1 5 enterprise zone program in pursuant to section 15E.194,
1 6 subsection 1 or 2.
1 7 Sec. 2. Section 15E.191, Code 2003, is amended to read as
1 8 follows:
1 9 15E.191 INTENT.
1 10 It is the intent of the general assembly that this division
1 11 be administered in a manner to promote new economic
1 12 development in economically distressed areas by encouraging
1 13 communities to target resources in ways that attract
1 14 productive private investment.
1 15 Sec. 3. Section 15E.192, subsection 2, Code Supplement
1 16 2003, is amended to read as follows:
1 17 2. A city with a population of twenty=four thousand or
1 18 more, as shown by the 2000 certified federal census, may
1 19 create an economic development enterprise zone as authorized
1 20 in this division, subject to certification by the department
1 21 of economic development, by designating one or more contiguous
1 22 census tracts, as determined in the most recent federal
1 23 census, or designating other geographic units approved by the
1 24 department of economic development for that purpose. If there
1 25 is an area in the city which meets the requirements for
1 26 eligibility for an urban or rural enterprise community under
1 27 Title XIII of the federal Omnibus Budget Reconciliation Act of
1 28 1993, such area shall be designated by the state as an
1 29 economic development enterprise zone. The area meeting the
1 30 requirements for eligibility for an urban or rural enterprise
1 31 community shall not be included for the purpose of determining
1 32 the area limitation pursuant to subsection 3. In creating an
1 33 enterprise zone, a city with a population of twenty=four
1 34 thousand or more, as shown by the 2000 certified federal
1 35 census, may designate as part of the area tracts or approved
2 1 geographic units located in a contiguous city if such tracts
2 2 or approved geographic units meet the criteria and the city
2 3 agrees to being included. The city may establish more than
2 4 one enterprise zone. Reference in this division to "city"
2 5 means a city with a population of twenty=four thousand or
2 6 more, as shown by the 2000 certified federal census.
2 7 Sec. 4. Section 15E.192, subsection 3, paragraph a, Code
2 8 Supplement 2003, is amended to read as follows:
2 9 a. An enterprise zone certified by the department pursuant
2 10 to subsection 2 shall only be amended if the amendment
2 11 consists of an area being added to the enterprise zone and the
2 12 added area meets the criteria of section 15E.194, subsection
2 13 2. An enterprise zone certified by the department pursuant to
2 14 subsection 1 or 2 may be decertified; however, if a subsequent
2 15 enterprise zone is designated, the expiration date of the
2 16 subsequent enterprise zone shall be the same as the expiration
2 17 date of the decertified enterprise zone. A portion of a
2 18 certified enterprise zone may be decertified, provided that
2 19 the remaining portion of the certified enterprise zone meets
2 20 the distress criteria provided in section 15E.194.
2 21 Sec. 5. Section 15E.194, subsections 1, 2, and 3, Code
2 22 2003, are amended to read as follows:
2 23 1. An enterprise zone may be designated by a county which
2 24 meets at least two of the following criteria:
2 25 a. The county has an average weekly wage that ranks among
2 26 the bottom twenty=five counties in the state based on the 2000
2 27 annual average weekly wage for employees in private business.
2 28 b. The county has a family poverty rate that ranks among
2 29 the top twenty=five counties in the state based on the 2000
2 30 census.
2 31 c. The county has experienced a percentage population loss
2 32 that ranks among the top twenty=five counties in the state
2 33 between 1995 and 2000.
2 34 d. The county has a percentage of persons sixty=five years
2 35 of age or older that ranks among the top twenty=five counties
3 1 in the state based on the 2000 census.
3 2 2. An enterprise zone may be designated by a city which
3 3 meets at least two of the following criteria:
3 4 a. The area has a per capita income of twelve thousand six
3 5 hundred forty=eight dollars or less based on the 2000 census.
3 6 b. The area has a family poverty rate of twelve percent or
3 7 higher based on the 2000 census.
3 8 c. Ten percent or more of the housing units are vacant in
3 9 the area.
3 10 d. The valuations of each class of property in the
3 11 designated area is seventy=five percent or less of the
3 12 citywide average for that classification based upon the most
3 13 recent valuations for property tax purposes.
3 14 e. The area is a blighted area, as defined in section
3 15 403.17.
3 16 3. The department of economic development shall certify
3 17 eligible enterprise zones that meet the requirements of
3 18 subsection 1 upon request by the a county or subsection 2 upon
3 19 request by the a city, as applicable unless certification
3 20 causes the area limitations of section 15E.192 to be exceeded.
3 21 Sec. 6. Section 15E.195, subsection 2, Code 2003, is
3 22 amended to read as follows:
3 23 2. A city with a population of twenty=four thousand or
3 24 more which designates an enterprise zone pursuant to section
3 25 15E.194, subsection 2, and in which an eligible enterprise
3 26 zone is certified shall establish an enterprise zone
3 27 commission to review applications from qualified businesses
3 28 located within or requesting to locate within an enterprise
3 29 zone to receive incentives or assistance as provided in
3 30 section 15E.196. The enterprise zone commission shall review
3 31 applications from qualified housing businesses requesting to
3 32 receive incentives or assistance as provided in section
3 33 15E.193B. The enterprise zone commission shall also review
3 34 applications from qualified development businesses requesting
3 35 to receive incentives or assistance as provided in section
4 1 15E.193C. The commission shall consist of nine members. Six
4 2 of these members shall consist of one representative of an
4 3 international labor organization, one member with economic
4 4 development expertise chosen by the department of economic
4 5 development, one representative of the city council, one
4 6 member of the local community college board of directors, one
4 7 member of the city planning and zoning commission, and one
4 8 representative of the local workforce development center.
4 9 These six members shall select the remaining three members.
4 10 If the enterprise zone consists of an area meeting the
4 11 requirements for eligibility for an urban enterprise community
4 12 under Title XIII of the federal Omnibus Budget Reconciliation
4 13 Act of 1993, one of the remaining three members shall be a
4 14 representative of that community. If a city contiguous to the
4 15 city designating the enterprise zone is included in an
4 16 enterprise zone, a representative of the contiguous city,
4 17 chosen by the city council, shall be a member of the
4 18 commission. A city in which an eligible enterprise zone is
4 19 certified shall have only one enterprise zone commission. If
4 20 a city has established an enterprise zone commission prior to
4 21 July 1, 1998, the city may petition to the department of
4 22 economic development to change the structure of the existing
4 23 commission.
4 24 EXPLANATION
4 25 This bill relates to the ability of cities and counties to
4 26 designate enterprise zones.
4 27 Currently, only certain cities and counties meeting
4 28 specific distress criteria may designate enterprise zones
4 29 under the enterprise zone program. The bill eliminates the
4 30 distress criteria. The bill also eliminates a limitation that
4 31 only cities with a population of 24,000 or more may designate
4 32 an enterprise zone. Enterprise zones designated by both
4 33 cities and counties cannot, in aggregate, consist of more than
4 34 1 percent of the total county area.
4 35 LSB 5566YH 80
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