House File 648 - Introduced



                                   HOUSE FILE       
                                   BY  COMMITTEE ON ECONOMIC GROWTH

                                  (SUCCESSOR TO HF 280)


    Passed House,  Date               Passed Senate, Date             
    Vote:  Ayes        Nays           Vote:  Ayes        Nays         
                 Approved                            

                                      A BILL FOR

  1 An Act relating to distress criteria for enterprise zones.
  2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  3 TLSB 1895HV 82
  4 tm/es/88

PAG LIN



  1  1    Section 1.  Section 15E.194, subsection 5, paragraph a,
  1  2 Code 2007, is amended to read as follows:
  1  3    a.  A city of any size or any county may designate an
  1  4 enterprise zone at any time prior to July 1, 2010, when a
  1  5 business closure or permanent layoff occurs involving.  The
  1  6 business closure or permanent layoff must involve the loss of
  1  7 full=time employees, not including retail employees, at one
  1  8 place of business totaling at least one thousand employees or
  1  9 four percent or more of the county's resident labor force
  1 10 based on the most recent annual resident labor force
  1 11 statistics from the department of workforce development,
  1 12 whichever is lower.  A permanent layoff does not include a
  1 13 layoff of seasonal employees or a layoff that is seasonal in
  1 14 nature.  For purposes of this paragraph, "permanent layoff"
  1 15 means the elimination of jobs from business operations, the
  1 16 loss of jobs to an out=of=state location, the cessation of one
  1 17 or more production lines, the removal of manufacturing
  1 18 machinery and equipment, or similar actions determined to be
  1 19 equivalent in nature by the department.  A permanent layoff
  1 20 must occur on or after February 1, 2007.  The enterprise zone
  1 21 may be established on the property of the place of business
  1 22 that has closed or imposed a permanent layoff and the
  1 23 enterprise zone may include an area up to an additional three
  1 24 miles adjacent to the property.  The area meeting the
  1 25 requirements for enterprise zone eligibility under this
  1 26 subsection shall not be included for the purpose of
  1 27 determining the area limitation pursuant to section 15E.192,
  1 28 subsection 4.  The closing business or business creating a
  1 29 permanent layoff shall not be eligible to receive incentives
  1 30 or assistance under this division.  An eligible housing
  1 31 business under section 15E.193B shall not receive incentives
  1 32 or assistance for a home or multiple dwelling unit built or
  1 33 rehabilitated in an enterprise zone designated pursuant to
  1 34 this subsection.
  1 35                           EXPLANATION
  2  1    This bill relates to distress criteria for enterprise
  2  2 zones.
  2  3    Currently, a city or county may designate an enterprise
  2  4 zone at any time prior to July 1, 2010, when a business
  2  5 closure occurs involving the loss of full=time employees, not
  2  6 including retail employees, at one place of business totaling
  2  7 at least 1,000 employees or 4 percent or more of the county's
  2  8 resident labor force based on the most recent annual resident
  2  9 labor force statistics from the department of workforce
  2 10 development, whichever is lower.  The bill changes the
  2 11 requirement from a business closure to a business closure or a
  2 12 permanent layoff.  The bill defines the term "permanent
  2 13 layoff".  The permanent layoff must occur on or after February
  2 14 1, 2007.  The bill provides that the closing business or
  2 15 business creating a permanent layoff shall not be eligible to
  2 16 receive incentives or assistance under the enterprise zone
  2 17 program.
  2 18 LSB 1895HV 82
  2 19 tm:nh/es/88