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
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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.
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