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