House File 2226 - Introduced
HOUSE FILE
BY WISE
Passed House, Date Passed Senate, Date
Vote: Ayes Nays Vote: Ayes Nays
Approved
A BILL FOR
1 An Act relating to the eligibility of cities and counties to
2 create enterprise zones.
3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
4 TLSB 6178HH 81
5 tm/cf/24
PAG LIN
1 1 Section 1. Section 15E.192, subsection 2, Code Supplement
1 2 2005, is amended to read as follows:
1 3 2. A city with a population of twenty=four ten thousand or
1 4 more, as shown by the 2000 certified federal census, may
1 5 create an economic development enterprise zone as authorized
1 6 in this division, subject to certification by the department
1 7 of economic development, by designating one or more contiguous
1 8 census tracts, as determined in the most recent federal
1 9 census, or designating other geographic units approved by the
1 10 department of economic development for that purpose. If there
1 11 is an area in the city which meets the requirements for
1 12 eligibility for an urban or rural enterprise community under
1 13 Title XIII of the federal Omnibus Budget Reconciliation Act of
1 14 1993, such area shall be designated by the state as an
1 15 economic development enterprise zone. The area meeting the
1 16 requirements for eligibility for an urban or rural enterprise
1 17 community shall not be included for the purpose of determining
1 18 the area limitation pursuant to subsection 3. In creating an
1 19 enterprise zone, a city with a population of twenty=four ten
1 20 thousand or more, as shown by the 2000 certified federal
1 21 census, may designate as part of the area tracts or approved
1 22 geographic units located in a contiguous city if such tracts
1 23 or approved geographic units meet the criteria and the city
1 24 agrees to being included. The city may establish more than
1 25 one enterprise zone. Reference in this division to "city"
1 26 means a city with a population of twenty=four ten thousand or
1 27 more, as shown by the 2000 certified federal census.
1 28 Sec. 2. Section 15E.192, Code Supplement 2005, is amended
1 29 by adding the following new subsection:
1 30 NEW SUBSECTION. 2A. A city or county may create an
1 31 economic development enterprise zone as authorized in this
1 32 division, subject to certification by the department of
1 33 economic development, by designating up to four square miles
1 34 of the city or county for that purpose. In order for an
1 35 enterprise zone to be certified pursuant to this subsection,
2 1 an enterprise zone shall meet the distress criteria provided
2 2 in section 15E.194, subsection 2A. Section 15E.194,
2 3 subsections 1 and 2, shall not apply to an enterprise zone
2 4 certified pursuant to this subsection.
2 5 Sec. 3. Section 15E.194, subsection 2, unnumbered
2 6 paragraph 1, Code 2005, is amended to read as follows:
2 7 An enterprise zone may be designated by a city with a
2 8 population of ten thousand or more which meets at least two of
2 9 the following criteria:
2 10 Sec. 4. Section 15E.194, Code 2005, is amended by adding
2 11 the following new subsection:
2 12 NEW SUBSECTION. 2A. A city or county may designate an
2 13 area of up to four square miles to be an enterprise zone if
2 14 the area meets at least three of the following criteria:
2 15 a. The area is located within ten miles of a commercial
2 16 service airport.
2 17 b. The area is located within five miles of a barge
2 18 terminal or a navigable waterway.
2 19 c. The area is served by a rail line.
2 20 d. The area is located within ten miles of an interstate
2 21 highway.
2 22 e. The area is located within a federally designated free
2 23 trade zone.
2 24 Sec. 5. Section 15E.194, subsection 3, Code 2005, is
2 25 amended to read as follows:
2 26 3. The department of economic development shall certify
2 27 eligible enterprise zones that meet the requirements of
2 28 subsection 1 upon request by the county, or subsection 2 upon
2 29 request by the city, or subsection 2A upon request by the
2 30 county or city, as applicable.
2 31 Sec. 6. Section 15E.195, subsections 1 and 2, Code 2005,
2 32 are amended to read as follows:
2 33 1. A county which designates an enterprise zone pursuant
2 34 to section 15E.194, subsection 1 or 2A, and in which an
2 35 eligible enterprise zone is certified shall establish an
3 1 enterprise zone commission to review applications from
3 2 qualified businesses located within or requesting to locate
3 3 within an enterprise zone designated pursuant to section
3 4 15E.194, subsection 1 or 2A, to receive incentives or
3 5 assistance as provided in section 15E.196. The enterprise
3 6 zone commission shall also review applications from qualified
3 7 housing businesses requesting to receive incentives or
3 8 assistance as provided in section 15E.193B. The commission
3 9 shall consist of nine members. Five of these members shall
3 10 consist of one representative of the board of supervisors, one
3 11 member with economic development expertise chosen by the
3 12 department of economic development, one representative of the
3 13 county zoning board, one member of the local community college
3 14 board of directors, and one representative of the local
3 15 workforce development center. These five members shall select
3 16 the remaining four members. If the enterprise zone consists
3 17 of an area meeting the requirements for eligibility for an
3 18 urban or rural enterprise community under Title XIII of the
3 19 federal Omnibus Budget Reconciliation Act of 1993, one of the
3 20 remaining four members shall be a representative of that
3 21 community. A county shall have only one enterprise zone
3 22 commission to review applications for incentives and
3 23 assistance for businesses located within or requesting to
3 24 locate within a certified enterprise zone designated pursuant
3 25 to section 15E.194, subsection 1 or 2A.
3 26 2. A city with a population of twenty=four thousand or
3 27 more which designates an enterprise zone pursuant to section
3 28 15E.194, subsection 2 or 2A, and in which an eligible
3 29 enterprise zone is certified shall establish an enterprise
3 30 zone commission to review applications from qualified
3 31 businesses located within or requesting to locate within an
3 32 enterprise zone to receive incentives or assistance as
3 33 provided in section 15E.196. The enterprise zone commission
3 34 shall review applications from qualified housing businesses
3 35 requesting to receive incentives or assistance as provided in
4 1 section 15E.193B. The commission shall consist of nine
4 2 members. Six of these members shall consist of one
4 3 representative of an international labor organization, one
4 4 member with economic development expertise chosen by the
4 5 department of economic development, one representative of the
4 6 city council, one member of the local community college board
4 7 of directors, one member of the city planning and zoning
4 8 commission, and one representative of the local workforce
4 9 development center. These six members shall select the
4 10 remaining three members. If the enterprise zone consists of
4 11 an area meeting the requirements for eligibility for an urban
4 12 enterprise community under Title XIII of the federal Omnibus
4 13 Budget Reconciliation Act of 1993, one of the remaining three
4 14 members shall be a representative of that community. If a
4 15 city contiguous to the city designating the enterprise zone is
4 16 included in an enterprise zone, a representative of the
4 17 contiguous city, chosen by the city council, shall be a member
4 18 of the commission. A city in which an eligible enterprise
4 19 zone is certified shall have only one enterprise zone
4 20 commission. If a city has established an enterprise zone
4 21 commission prior to July 1, 1998, the city may petition to the
4 22 department of economic development to change the structure of
4 23 the existing commission.
4 24 EXPLANATION
4 25 This bill relates to the population threshold for cities
4 26 establishing enterprise zones and allows the creation of a new
4 27 type of enterprise zone within the economic development
4 28 enterprise zone program administered by the department of
4 29 economic development.
4 30 The bill provides that cities with a population of 10,000
4 31 or more may designate an enterprise zone if certain distress
4 32 criteria are met. Currently, the population threshold for
4 33 cities is 24,000.
4 34 The bill provides that any city or county in the state may
4 35 create an enterprise zone, subject to certification by the
5 1 department, by designating up to four square miles of the city
5 2 or county for that purpose. In order to be certified, the
5 3 area must be located within 10 miles of a commercial service
5 4 airport, be located within five miles of a barge terminal or a
5 5 navigable waterway, be served by a rail line, be located
5 6 within 10 miles of an interstate highway, or be located within
5 7 a federally designated free trade zone.
5 8 LSB 6178HH 81
5 9 tm:nh/cf/24