House File 2455 - Introduced
HOUSE FILE
BY COMMITTEE ON ECONOMIC
GROWTH
(SUCCESSOR TO HSB 629)
Passed House, Date Passed Senate, Date
Vote: Ayes Nays Vote: Ayes Nays
Approved
A BILL FOR
1 An Act allowing cities to create enterprise zones near modes of
2 transportation.
3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
4 TLSB 6429HV 81
5 tm/cf/24
PAG LIN
1 1 Section 1. Section 15E.192, Code Supplement 2005, is
1 2 amended by adding the following new subsection:
1 3 NEW SUBSECTION. 2A. A city may create an economic
1 4 development enterprise zone as authorized in this division,
1 5 subject to certification by the department of economic
1 6 development, by designating up to four square miles of the
1 7 city for that purpose. In order for an enterprise zone to be
1 8 certified pursuant to this subsection, an enterprise zone
1 9 shall meet the distress criteria provided in section 15E.194,
1 10 subsection 2A. Section 15E.194, subsection 2, shall not apply
1 11 to an enterprise zone certified pursuant to this subsection.
1 12 A cumulative total of not more than twenty=five million
1 13 dollars worth of incentives and assistance under section
1 14 15E.196, subsections 1, 2, 3, 4, and 6, shall be awarded to
1 15 businesses located in enterprise zones certified prior to July
1 16 1, 2007, pursuant to this subsection. A cumulative total of
1 17 not more than ten million dollars worth of incentives and
1 18 assistance under section 15E.196, subsections 1, 2, 3, 4, and
1 19 6, shall be awarded to businesses located in enterprise zones
1 20 certified during each fiscal year beginning on or after July
1 21 1, 2007, pursuant to this subsection. For purposes of this
1 22 subsection and section 15E.194, subsection 2A, "city" means a
1 23 city that includes at least three census tracts, as determined
1 24 in the most recent federal census.
1 25 Sec. 2. Section 15E.192, subsection 3, paragraph b, Code
1 26 Supplement 2005, is amended to read as follows:
1 27 b. A county or city may apply to the department for an
1 28 area to be certified as an enterprise zone at any time prior
1 29 to March 1, 2006. However, the total amount of land
1 30 designated as enterprise zones under subsections 1 and 2, and
1 31 any other enterprise zones certified by the department,
1 32 excluding those approved pursuant to section 15E.194,
1 33 subsection subsections 2A and 4, shall not exceed in the
1 34 aggregate one percent of the total county area.
1 35 Sec. 3. Section 15E.193B, subsection 1, Code Supplement
2 1 2005, is amended to read as follows:
2 2 1. A housing business qualifying under this section is
2 3 eligible to receive incentives and assistance only as provided
2 4 in this section. An eligible housing business shall not
2 5 receive incentives or assistance for a home or multiple
2 6 dwelling unit built or rehabilitated in an enterprise zone
2 7 designated pursuant to section 15E.194, subsection 2A or 4.
2 8 Sections 15E.193 and 15E.196 do not apply to an eligible
2 9 housing business qualifying under this section.
2 10 Sec. 4. Section 15E.194, subsection 2, unnumbered
2 11 paragraph 1, Code 2005, is amended to read as follows:
2 12 An enterprise zone may be designated by a city with a
2 13 population of twenty=four thousand or more which meets at
2 14 least two of the following criteria:
2 15 Sec. 5. Section 15E.194, Code 2005, is amended by adding
2 16 the following new subsection:
2 17 NEW SUBSECTION. 2A. A city may designate an area of up to
2 18 four square miles to be an enterprise zone if the area
2 19 includes or is located within four miles of at least three of
2 20 the following:
2 21 a. A commercial service airport.
2 22 b. A barge terminal or a navigable waterway.
2 23 c. Entry to a rail line.
2 24 d. Entry to an interstate highway.
2 25 e. Entry to a commercial and industrial highway network as
2 26 identified pursuant to section 313.2A.
2 27 An eligible housing business under section 15E.193B shall
2 28 not receive incentives or assistance for a home or multiple
2 29 dwelling unit built or rehabilitated in an enterprise zone
2 30 designated pursuant to this subsection.
2 31 Sec. 6. Section 15E.194, subsection 3, Code 2005, is
2 32 amended to read as follows:
2 33 3. The department of economic development shall certify
2 34 eligible enterprise zones that meet the requirements of
2 35 subsection 1 upon request by the county, or subsection 2 upon
3 1 request by the city, or subsection 2A upon request by the
3 2 city, as applicable.
3 3 Sec. 7. Section 15E.195, subsection 2, Code 2005, is
3 4 amended to read as follows:
3 5 2. A city with a population of twenty=four thousand or
3 6 more which designates an enterprise zone pursuant to section
3 7 15E.194, subsection 2 or 2A, and in which an eligible
3 8 enterprise zone is certified shall establish an enterprise
3 9 zone commission to review applications from qualified
3 10 businesses located within or requesting to locate within an
3 11 enterprise zone to receive incentives or assistance as
3 12 provided in section 15E.196. The enterprise zone commission
3 13 shall review applications from qualified housing businesses
3 14 requesting to receive incentives or assistance as provided in
3 15 section 15E.193B. The commission shall consist of nine
3 16 members. Six of these members shall consist of one
3 17 representative of an international labor organization, one
3 18 member with economic development expertise chosen by the
3 19 department of economic development, one representative of the
3 20 city council, one member of the local community college board
3 21 of directors, one member of the city planning and zoning
3 22 commission, and one representative of the local workforce
3 23 development center. These six members shall select the
3 24 remaining three members. If the enterprise zone consists of
3 25 an area meeting the requirements for eligibility for an urban
3 26 enterprise community under Title XIII of the federal Omnibus
3 27 Budget Reconciliation Act of 1993, one of the remaining three
3 28 members shall be a representative of that community. If a
3 29 city contiguous to the city designating the enterprise zone is
3 30 included in an enterprise zone, a representative of the
3 31 contiguous city, chosen by the city council, shall be a member
3 32 of the commission. A city in which an eligible enterprise
3 33 zone is certified shall have only one enterprise zone
3 34 commission. If a city has established an enterprise zone
3 35 commission prior to July 1, 1998, the city may petition to the
4 1 department of economic development to change the structure of
4 2 the existing commission.
4 3 EXPLANATION
4 4 This bill allows the creation of a new type of enterprise
4 5 zone within the economic development enterprise zone program
4 6 administered by the department of economic development.
4 7 The bill provides that any city in the state may create an
4 8 enterprise zone, subject to certification by the department,
4 9 by designating up to four square miles of the city for that
4 10 purpose. The bill defines a city as a city that includes at
4 11 least three census tracts. In order to be certified, the area
4 12 must include or be located within four miles of three of the
4 13 following: a commercial service airport, a barge terminal or
4 14 a navigable waterway, entry to a rail line, entry to an
4 15 interstate highway, or entry to a commercial and industrial
4 16 highway network. The bill limits the amount of incentives and
4 17 assistance that may be awarded to businesses located in such
4 18 enterprise zones to $25 million for enterprise zones certified
4 19 prior to July 1, 2007, and $10 million for enterprise zones
4 20 certified during each fiscal year beginning on or after July
4 21 1, 2007. The bill provides that eligible housing businesses
4 22 cannot receive incentives or assistance for a home or multiple
4 23 dwelling unit built or rehabilitated in such an enterprise
4 24 zone and such enterprise zones are excluded from the
4 25 calculation to determine whether the aggregate 1 percent of
4 26 the total county area limit has been exceeded.
4 27 LSB 6429HV 81
4 28 tm:rj/cf/24