House Study Bill 629



                                       HOUSE FILE       
                                       BY  (PROPOSED COMMITTEE ON
                                            ECONOMIC GROWTH BILL BY
                                            CHAIRPERSON HOFFMAN)


    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 6429HC 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 Applications for enterprise zones designated pursuant to this
  1 13 subsection must be received by the department by July 1, 2007.
  1 14 The department shall not certify more than three such
  1 15 enterprise zones.
  1 16    Sec. 2.  Section 15E.192, subsection 3, paragraph b, Code
  1 17 Supplement 2005, is amended to read as follows:
  1 18    b.  A county or city may apply to the department for an
  1 19 area to be certified as an enterprise zone at any time prior
  1 20 to March 1, 2006.  However, the total amount of land
  1 21 designated as enterprise zones under subsections 1 and 2, and
  1 22 any other enterprise zones certified by the department,
  1 23 excluding those approved pursuant to section 15E.194,
  1 24 subsection subsections 2A and 4, shall not exceed in the
  1 25 aggregate one percent of the total county area.
  1 26    Sec. 3.  Section 15E.193B, subsection 1, Code Supplement
  1 27 2005, is amended to read as follows:
  1 28    1.  A housing business qualifying under this section is
  1 29 eligible to receive incentives and assistance only as provided
  1 30 in this section.  An eligible housing business shall not
  1 31 receive incentives or assistance for a home or multiple
  1 32 dwelling unit built or rehabilitated in an enterprise zone
  1 33 designated pursuant to section 15E.194, subsection 2A or 4.
  1 34 Sections 15E.193 and 15E.196 do not apply to an eligible
  1 35 housing business qualifying under this section.
  2  1    Sec. 4.  Section 15E.194, subsection 2, unnumbered
  2  2 paragraph 1, Code 2005, is amended to read as follows:
  2  3    An enterprise zone may be designated by a city with a
  2  4 population of twenty=four thousand or more which meets at
  2  5 least two of the following criteria:
  2  6    Sec. 5.  Section 15E.194, Code 2005, is amended by adding
  2  7 the following new subsection:
  2  8    NEW SUBSECTION.  2A.  A city may designate an area of up to
  2  9 four square miles to be an enterprise zone if the area
  2 10 includes or is located within one mile of at least three of
  2 11 the following:
  2 12    a.  A commercial service airport.
  2 13    b.  A barge terminal or a navigable waterway.
  2 14    c.  Entry to a rail line.
  2 15    d.  Entry to an interstate highway.
  2 16    e.  Entry to a commercial and industrial highway network as
  2 17 identified pursuant to section 313.2A.
  2 18    An eligible housing business under section 15E.193B shall
  2 19 not receive incentives or assistance for a home or multiple
  2 20 dwelling unit built or rehabilitated in an enterprise zone
  2 21 designated pursuant to this subsection.
  2 22    Sec. 6.  Section 15E.194, subsection 3, Code 2005, is
  2 23 amended to read as follows:
  2 24    3.  The department of economic development shall certify
  2 25 eligible enterprise zones that meet the requirements of
  2 26 subsection 1 upon request by the county, or subsection 2 upon
  2 27 request by the city, or subsection 2A upon request by the
  2 28 city, as applicable.
  2 29    Sec. 7.  Section 15E.195, subsection 2, Code 2005, is
  2 30 amended to read as follows:
  2 31    2.  A city with a population of twenty=four thousand or
  2 32 more which designates an enterprise zone pursuant to section
  2 33 15E.194, subsection 2 or 2A, and in which an eligible
  2 34 enterprise zone is certified shall establish an enterprise
  2 35 zone commission to review applications from qualified
  3  1 businesses located within or requesting to locate within an
  3  2 enterprise zone to receive incentives or assistance as
  3  3 provided in section 15E.196.  The enterprise zone commission
  3  4 shall review applications from qualified housing businesses
  3  5 requesting to receive incentives or assistance as provided in
  3  6 section 15E.193B.  The commission shall consist of nine
  3  7 members.  Six of these members shall consist of one
  3  8 representative of an international labor organization, one
  3  9 member with economic development expertise chosen by the
  3 10 department of economic development, one representative of the
  3 11 city council, one member of the local community college board
  3 12 of directors, one member of the city planning and zoning
  3 13 commission, and one representative of the local workforce
  3 14 development center.  These six members shall select the
  3 15 remaining three members.  If the enterprise zone consists of
  3 16 an area meeting the requirements for eligibility for an urban
  3 17 enterprise community under Title XIII of the federal Omnibus
  3 18 Budget Reconciliation Act of 1993, one of the remaining three
  3 19 members shall be a representative of that community.  If a
  3 20 city contiguous to the city designating the enterprise zone is
  3 21 included in an enterprise zone, a representative of the
  3 22 contiguous city, chosen by the city council, shall be a member
  3 23 of the commission.  A city in which an eligible enterprise
  3 24 zone is certified shall have only one enterprise zone
  3 25 commission.  If a city has established an enterprise zone
  3 26 commission prior to July 1, 1998, the city may petition to the
  3 27 department of economic development to change the structure of
  3 28 the existing commission.
  3 29                           EXPLANATION
  3 30    This bill allows the creation of a new type of enterprise
  3 31 zone within the economic development enterprise zone program
  3 32 administered by the department of economic development.
  3 33    The bill provides that any city in the state may create an
  3 34 enterprise zone, subject to certification by the department,
  3 35 by designating up to four square miles of the city for that
  4  1 purpose.  In order to be certified, the area must include or
  4  2 be located within one mile of three of the following:  a
  4  3 commercial service airport, a barge terminal or a navigable
  4  4 waterway, entry to a rail line, entry to an interstate
  4  5 highway, or entry to a commercial and industrial highway
  4  6 network.  The bill provides that applications for such
  4  7 enterprise zones must be received by the department by July 1,
  4  8 2007, and the department shall not certify more than three
  4  9 such enterprise zones.  The bill provides that eligible
  4 10 housing businesses cannot receive incentives or assistance for
  4 11 a home or multiple dwelling unit built or rehabilitated in
  4 12 such an enterprise zone and such enterprise zones are excluded
  4 13 from the calculation to determine whether the aggregate 1
  4 14 percent of the total county area limit has been exceeded.
  4 15 LSB 6429HC 81
  4 16 tm:rj/cf/24