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 5 tm/cf/24 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 1,20052006, and 2 15 ending June 30, 2015, there is appropriated to the department 2 16 of economic development each fiscal yearfiftyfifty=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 1,20052006, 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 developmentthirty=fiveforty 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 3 24 tm:nh/cf/24.1