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 city with a population of twenty=four thousand or
  1  4 more which 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 city with a population of twenty=four
  1 21 thousand or more which 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 city with a
  1 28 population of twenty=four thousand or more which 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 city with a population of twenty=four thousand or
  2 10 more which 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