House File 2595 - Introduced
HOUSE FILE
BY COMMITTEE ON ECONOMIC GROWTH
(SUCCESSOR TO HSB 630)
Passed House, Date Passed Senate, Date
Vote: Ayes Nays Vote: Ayes Nays
Approved
A BILL FOR
1 An Act relating to eligibility requirements and certification of
2 enterprise zones under the enterprise zone program and
3 including effective and retroactive applicability dates.
4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
5 TLSB 6084HV 81
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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 thousand or
1 4 more which includes at least three census tracts with at least
1 5 fifty percent of the population in each census tract located
1 6 in the city, as shown by the 2000 certified federal census,
1 7 may create an economic development enterprise zone as
1 8 authorized in this division, subject to certification by the
1 9 department of economic development, by designating one or more
1 10 contiguous census tracts, as determined in the most recent
1 11 federal census, or designating other geographic units approved
1 12 by the department of economic development for that purpose.
1 13 If there is an area in the city which meets the requirements
1 14 for eligibility for an urban or rural enterprise community
1 15 under Title XIII of the federal Omnibus Budget Reconciliation
1 16 Act of 1993, such area shall be designated by the state as an
1 17 economic development enterprise zone. The area meeting the
1 18 requirements for eligibility for an urban or rural enterprise
1 19 community shall not be included for the purpose of determining
1 20 the area limitation pursuant to subsection 3. In creating an
1 21 enterprise zone, a city with a population of twenty=four
1 22 thousand or more which includes at least three census tracts
1 23 with at least fifty percent of the population in each census
1 24 tract located in the city, as shown by the 2000 certified
1 25 federal census, may designate as part of the area tracts or
1 26 approved geographic units located in a contiguous city if such
1 27 tracts or approved geographic units meet the criteria and the
1 28 city agrees to being included. The city may establish more
1 29 than one enterprise zone. Reference in this division to
1 30 "city" means a city with a population of twenty=four thousand
1 31 or more which includes at least three census tracts with at
1 32 least fifty percent of the population in each census tract
1 33 located in the city, as shown by the 2000 certified federal
1 34 census.
1 35 Sec. 2. Section 15E.192, subsection 4, Code Supplement
2 1 2005, is amended to read as follows:
2 2 4. An enterprise zone designation shall remain in effect
2 3 for ten years following the date of certification. Prior to
2 4 the expiration of an enterprise zone designation, a city or
2 5 county meeting the distress criteria in section 15E.194 may
2 6 apply for a one=time ten=year extension of the designation.
2 7 In applying for a one=time ten=year extension of an enterprise
2 8 zone designation, a city or county may redefine the boundaries
2 9 of the enterprise zone provided that the redefined enterprise
2 10 zone meets the applicable distress criteria provided in
2 11 section 15E.194. Any state or local incentives or assistance
2 12 that may be conferred must be conferred before the designation
2 13 expires. However, the benefits of the incentive or assistance
2 14 may continue beyond the expiration.
2 15 Sec. 3. Section 15E.195, subsection 2, Code 2005, is
2 16 amended to read as follows:
2 17 2. A city with a population of twenty=four thousand or
2 18 more which includes at least three census tracts with at least
2 19 fifty percent of the population in each census tract located
2 20 in the city and which designates an enterprise zone pursuant
2 21 to section 15E.194, subsection 2, and in which an eligible
2 22 enterprise zone is certified shall establish an enterprise
2 23 zone commission to review applications from qualified
2 24 businesses located within or requesting to locate within an
2 25 enterprise zone to receive incentives or assistance as
2 26 provided in section 15E.196. The enterprise zone commission
2 27 shall review applications from qualified housing businesses
2 28 requesting to receive incentives or assistance as provided in
2 29 section 15E.193B. The commission shall consist of nine
2 30 members. Six of these members shall consist of one
2 31 representative of an international labor organization, one
2 32 member with economic development expertise chosen by the
2 33 department of economic development, one representative of the
2 34 city council, one member of the local community college board
2 35 of directors, one member of the city planning and zoning
3 1 commission, and one representative of the local workforce
3 2 development center. These six members shall select the
3 3 remaining three members. If the enterprise zone consists of
3 4 an area meeting the requirements for eligibility for an urban
3 5 enterprise community under Title XIII of the federal Omnibus
3 6 Budget Reconciliation Act of 1993, one of the remaining three
3 7 members shall be a representative of that community. If a
3 8 city contiguous to the city designating the enterprise zone is
3 9 included in an enterprise zone, a representative of the
3 10 contiguous city, chosen by the city council, shall be a member
3 11 of the commission. A city in which an eligible enterprise
3 12 zone is certified shall have only one enterprise zone
3 13 commission. If a city has established an enterprise zone
3 14 commission prior to July 1, 1998, the city may petition to the
3 15 department of economic development to change the structure of
3 16 the existing commission.
3 17 Sec. 4. EFFECTIVE AND RETROACTIVE APPLICABILITY DATES.
3 18 This Act, being deemed of immediate importance, takes effect
3 19 upon enactment and, if enacted after March 1, 2006, applies
3 20 retroactively to March 1, 2006.
3 21 EXPLANATION
3 22 This bill relates to eligibility requirements and
3 23 certification of enterprise zones under the enterprise zone
3 24 program and includes effective and retroactive applicability
3 25 dates.
3 26 Currently, a city with a population of 24,000 or more is
3 27 eligible to designate an enterprise zone if the enterprise
3 28 zone meets certain distress criteria. The bill eliminates the
3 29 24,000 population threshold and, instead, provides that a city
3 30 which includes at least three census tracts with at least 50
3 31 percent of the population in each census tract located in the
3 32 city, as shown by the 2000 certified federal census, is
3 33 eligible to designate an enterprise zone if the enterprise
3 34 zone meets certain distress criteria.
3 35 The bill provides that, prior to the expiration of an
4 1 enterprise zone designation, a city or county meeting certain
4 2 distress criteria may apply for a one=time 10=year extension
4 3 of the enterprise zone designation. The bill provides that,
4 4 in applying for a one=time 10=year extension, a city or county
4 5 may redefine the boundaries of the enterprise zone, provided
4 6 the redefined enterprise zone meets the applicable distress
4 7 criteria.
4 8 The bill takes effect upon enactment and, if enacted after
4 9 March 1, 2006, applies retroactively to March 1, 2006.
4 10 LSB 6084HV 81
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