House File 2123 - Introduced HOUSE FILE BY PAULSEN Passed House, Date Passed Senate, Date Vote: Ayes Nays Vote: Ayes Nays Approved A BILL FOR 1 An Act relating to tool and die recovery enterprise zones. 2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 3 TLSB 5510YH 81 4 tm/gg/14 PAG LIN 1 1 Section 1. Section 15E.192, subsection 3, paragraph b, 1 2 Code Supplement 2005, is amended to read as follows: 1 3 b. A county or city may apply to the department for an 1 4 area to be certified as an enterprise zone at any time prior 1 5 to March 1, 2006. However, the total amount of land 1 6 designated as enterprise zones under subsections 1 and 2, and 1 7 any other enterprise zones certified by the department, 1 8 excluding those approved pursuant to section 15E.194, 1 9subsection 4subsections 4 and 5, shall not exceed in the 1 10 aggregate one percent of the total county area. 1 11 Sec. 2. Section 15E.194, Code 2005, is amended by adding 1 12 the following new subsection: 1 13 NEW SUBSECTION. 5. a. A city of any size or any county 1 14 may designate a tool and die recovery enterprise zone at any 1 15 time prior to July 1, 2010, consisting of property owned or 1 16 leased by an eligible tool and die business where a tool and 1 17 die facility is located. In lieu of the requirements in 1 18 section 15E.193, an eligible business located in a tool and 1 19 die recovery enterprise zone shall meet the requirements of 1 20 this subsection in order to receive incentives and assistance 1 21 under section 15E.196. 1 22 b. An eligible tool and die business under this subsection 1 23 must meet all of the following criteria: 1 24 (1) The business uses the property primarily for tool and 1 25 die business operations and is classified under the North 1 26 American industrial classification system with a code of 1 27 333511, 333512, 333513, 333514, or 333515. 1 28 (2) The business has entered into a qualified 1 29 collaboration agreement, as approved by the department 1 30 pursuant to paragraph "c", with other business entities that 1 31 have a North American industrial classification system code of 1 32 333511, 333512, 333513, 333514, or 333515. 1 33 (3) The business has less than fifty full=time employees. 1 34 (4) The business leases or owns property located in a 1 35 designated enterprise zone where the tool and die operations 2 1 are conducted. 2 2 c. In order for a qualified collaboration agreement to be 2 3 approved by the department, the agreement must demonstrate 2 4 synergistic opportunities between the parties to the agreement 2 5 in at least all of the following areas: 2 6 (1) Sales and marketing efforts. 2 7 (2) Development of standardized processes. 2 8 (3) Development of tooling standards. 2 9 (4) Standardized project management methods. 2 10 (5) Improved ability for specialized or small niche shops 2 11 to develop expertise and compete successfully on larger 2 12 programs. 2 13 d. The area meeting the requirements for tool and die 2 14 recovery enterprise zone eligibility under this subsection 2 15 shall not be included for the purposes of determining the area 2 16 limitation pursuant to section 15E.192, subsection 3. 2 17 Sec. 3. Section 15E.195, subsection 6, Code 2005, is 2 18 amended to read as follows: 2 19 6. A business that is approved to receive incentives or 2 20 assistance shall, for the length of its designation as an 2 21 enterprise zone business, certify annually to the county or 2 22 city, as applicable, and the department of economic 2 23 development its compliance with the requirements of section 2 24 15E.193, 15E.194, subsection 5, or 15E.193B. 2 25 EXPLANATION 2 26 This bill relates to tool and die recovery enterprise 2 27 zones. 2 28 The bill allows a city of any size or any county to 2 29 designate a tool and die recovery enterprise zone at any time 2 30 prior to July 1, 2010, consisting of property owned or leased 2 31 by an eligible tool and die business where a tool and die 2 32 facility is located. In order for an eligible business 2 33 located in a tool and die recovery enterprise zone to receive 2 34 incentives and assistance under the enterprise zone program, 2 35 the business must meet certain classifications under the North 3 1 American industrial classification system, have entered into a 3 2 qualified collaboration agreement as approved by the 3 3 department of economic development, have less than 50 full= 3 4 time employees, and lease or own the property located in a 3 5 designated enterprise zone where the tool and die operations 3 6 are conducted. 3 7 The bill provides that a qualified collaboration agreement 3 8 must demonstrate synergistic opportunities between the parties 3 9 to the agreement in certain areas. 3 10 The bill provides that an area meeting the requirements for 3 11 tool and die recovery enterprise zone eligibility under the 3 12 bill shall not be included for the purposes of determining the 3 13 area limitations under the enterprise zone program. 3 14 LSB 5510YH 81 3 15 tm:nh/gg/14