House File 2552 - Introduced
HOUSE FILE
BY DANDEKAR, STRUYK, and
HUSER
Passed House, Date Passed Senate, Date
Vote: Ayes Nays Vote: Ayes Nays
Approved
A BILL FOR
1 An Act creating a rejuvenate achievable zones for economic
2 development program and making appropriations.
3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
4 TLSB 6304YH 81
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PAG LIN
1 1 Section 1. NEW SECTION. 15E.361 REJUVENATE ACHIEVABLE
1 2 ZONES FOR ECONOMIC DEVELOPMENT PROGRAM.
1 3 1. The department shall establish and administer a
1 4 rejuvenate achievable zones for economic development program
1 5 for purposes of providing financial assistance to businesses
1 6 in distressed areas of the state.
1 7 2. To be eligible to apply for financial assistance under
1 8 the program, a business must be located in a city with a
1 9 population of fewer than twenty=four thousand, as shown by the
1 10 2000 certified federal census, and must meet all of the
1 11 following criteria:
1 12 a. At least two of the following conditions must be met:
1 13 (1) The business is located in a county which has a
1 14 poverty rate that ranks among the twenty=five counties with
1 15 the highest poverty rates in the state based on data from the
1 16 previous calendar year.
1 17 (2) The business is located in a county with a per capita
1 18 income that is eighty percent or less of the national average
1 19 based on data from the previous calendar year.
1 20 (3) The business is located in a facility which previously
1 21 was the location of a business which meets one of the
1 22 following criteria:
1 23 (a) The previous business employed at least five hundred
1 24 full=time employees and closed within five years of the
1 25 application for assistance.
1 26 (b) The previous business employed more than two percent
1 27 of the workforce in the county and closed within two years of
1 28 the application for assistance.
1 29 (4) The business is located in a county which has an
1 30 unemployment rate that ranks among the twenty=five counties
1 31 with the highest unemployment rates in the state based on data
1 32 from the previous calendar year.
1 33 b. At least one=half of the jobs created by the business
1 34 must have a total compensation package of wages and benefits
1 35 that equal at least one hundred thirty percent of the average
2 1 county wage.
2 2 3. The department may provide financial assistance in the
2 3 form of grants to eligible businesses. The grants may be used
2 4 for eligible costs including but not limited to employee
2 5 training, workplace childcare, employee transportation
2 6 assistance, property tax assistance, and utility cost
2 7 assistance. The department shall use at least five million
2 8 dollars per fiscal year from moneys appropriated to the
2 9 department pursuant to section 15G.111, subsection 1, for
2 10 purposes of the program.
2 11 Sec. 2. Section 15G.110, Code Supplement 2005, is amended
2 12 to read as follows:
2 13 15G.110 APPROPRIATION.
2 14 For the fiscal period beginning July 1, 2005 2006, and
2 15 ending June 30, 2015, there is appropriated to the department
2 16 of economic development each fiscal year fifty fifty=five
2 17 million dollars from the general fund of the state for deposit
2 18 in the grow Iowa values fund.
2 19 Sec. 3. Section 15G.111, subsection 1, paragraph a, Code
2 20 Supplement 2005, is amended to read as follows:
2 21 a. For the fiscal period beginning July 1, 2005 2006, and
2 22 ending June 30, 2015, there is appropriated each fiscal year
2 23 from the grow Iowa values fund created in section 15G.108, to
2 24 the department of economic development thirty=five forty
2 25 million dollars for programs administered by the department of
2 26 economic development.
2 27 EXPLANATION
2 28 This bill creates a rejuvenate achievable zones for
2 29 economic development program and makes appropriations.
2 30 The bill requires the department of economic development to
2 31 establish and administer a rejuvenate achievable zones for
2 32 economic development program for purposes of providing
2 33 financial assistance to businesses in distressed areas of the
2 34 state. The bill provides that to be an eligible business, a
2 35 business must be located in a city with a population of fewer
3 1 than 24,000, must meet certain distress criteria, and at least
3 2 one=half of the jobs created by the business must have a total
3 3 compensation package of wages and benefits equal to at least
3 4 130 percent of the average county wage.
3 5 The bill provides that the department may provide financial
3 6 assistance in the form of grants to eligible businesses and
3 7 that the grants may be used for eligible costs. The bill
3 8 provides that the department shall use at least $5 million per
3 9 fiscal year from moneys appropriated to the department from
3 10 the grow Iowa values fund for purposes of the program.
3 11 The bill amends the appropriations related to the grow Iowa
3 12 values fund. For the fiscal period beginning July 1, 2006,
3 13 and ending June 30, 2015, the bill appropriates each fiscal
3 14 year $55 million from the general fund of the state for
3 15 deposit in the grow Iowa values fund. Currently, for the same
3 16 fiscal period, $50 million is appropriated each fiscal year.
3 17 For the fiscal period beginning July 1, 2006, and ending June
3 18 30, 2015, the bill appropriates each fiscal year from the grow
3 19 Iowa values fund to the department of economic development $40
3 20 million for programs administered by the department of
3 21 economic development. Currently, for the same fiscal period,
3 22 $35 million is appropriated each fiscal year.
3 23 LSB 6304YH 81
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