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 9 subsection 4 subsections 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