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 24subsectionsubsections 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,orsubsection 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 citywith a population of twenty=four thousand or 2 32 morewhich 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