Senate File 2221 - Introduced SENATE FILE 2221 BY COMMITTEE ON ECONOMIC GROWTH (SUCCESSOR TO SF 2085) A BILL FOR An Act extending the time period for designating enterprise 1 zones and including effective date provisions. 2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 3 TLSB 5369SV (1) 83 tw/sc

S.F. 2221 Section 1. Section 15E.192, subsection 3, Code 2009, is 1 amended to read as follows: 2 3. A city may create an economic development enterprise zone 3 as authorized in this division, subject to certification by the 4 department of economic development, by designating up to four 5 square miles of the city for that purpose. In order for an 6 enterprise zone to be certified pursuant to this subsection, 7 an enterprise zone shall meet the distress criteria provided 8 in section 15E.194, subsection 3. Section 15E.194, subsection 9 2, shall not apply to an enterprise zone certified pursuant to 10 this subsection. For the fiscal period beginning July 1, 2007, 11 and ending June 30, 2010 2012 , each fiscal year a cumulative 12 total of not more than twenty-five million dollars worth of 13 incentives and assistance under section 15E.196, subsections 14 1, 2, 3, 4, and 6, shall be awarded to eligible businesses 15 that apply to an enterprise zone commission for incentives and 16 assistance during that fiscal year and that are located in an 17 enterprise zone certified pursuant to this subsection. For 18 purposes of this subsection and section 15E.194, subsection 3, 19 “city” means a city that includes at least three census tracts, 20 as determined in the most recent federal census. 21 Sec. 2. Section 15E.192, subsection 4, paragraph b, Code 22 2009, is amended to read as follows: 23 b. A county or city may apply to the department for an area 24 to be certified as an enterprise zone at any time prior to July 25 1, 2010 2012 . However, the total amount of land designated as 26 enterprise zones under subsection 1, and any other enterprise 27 zones certified by the department, excluding those approved 28 pursuant to subsection 2 and section 15E.194, subsections 3 and 29 5, shall not exceed in the aggregate one percent of the total 30 county area. 31 Sec. 3. Section 15E.194, subsection 5, paragraph a, Code 32 2009, is amended to read as follows: 33 a. A city of any size or any county may designate an 34 enterprise zone at any time prior to July 1, 2010 2012 , when 35 -1- LSB 5369SV (1) 83 tw/sc 1/ 3

S.F. 2221 a business closure or permanent layoff occurs. The business 1 closure or permanent layoff must involve the loss of full-time 2 employees, not including retail employees, at one place of 3 business totaling at least one thousand employees or four 4 percent or more of the county’s resident labor force based on 5 the most recent annual resident labor force statistics from 6 the department of workforce development, whichever is lower. 7 A permanent layoff does not include a layoff of seasonal 8 employees or a layoff that is seasonal in nature. For purposes 9 of this paragraph, “permanent layoff” means the loss of jobs 10 to an out-of-state location, the cessation of one or more 11 production lines, the removal of manufacturing machinery and 12 equipment, or similar actions determined to be equivalent 13 in nature by the department. A permanent layoff must occur 14 on or after February 1, 2007. The enterprise zone may be 15 established on the property of the place of business that has 16 closed or imposed a permanent layoff and the enterprise zone 17 may include an area up to an additional three miles adjacent to 18 the property. The area meeting the requirements for enterprise 19 zone eligibility under this subsection shall not be included 20 for the purpose of determining the area limitation pursuant 21 to section 15E.192, subsection 4. The closing business or 22 business creating a permanent layoff shall not be eligible 23 to receive incentives or assistance under this division. 24 An eligible housing business under section 15E.193B shall 25 not receive incentives or assistance for a home or multiple 26 dwelling unit built or rehabilitated in an enterprise zone 27 designated pursuant to this subsection. 28 Sec. 4. EFFECTIVE UPON ENACTMENT. This Act, being deemed of 29 immediate importance, takes effect upon enactment. 30 EXPLANATION 31 Code sections 15E.192 and 15E.194 currently allow cities and 32 counties to designate an enterprise zone at any time prior to 33 July 1, 2010, for various purposes or if certain criteria are 34 met. This bill extends that date by two years, allowing cities 35 -2- LSB 5369SV (1) 83 tw/sc 2/ 3

S.F. 2221 and counties to designate enterprise zones at any time prior to 1 July 1, 2012. 2 The bill also extends by two years the fiscal period for 3 which financial assistance may be provided to enterprise zones. 4 -3- LSB 5369SV (1) 83 tw/sc 3/ 3