S.F. 19 Section 1. Section 15.329, subsection 5, paragraph b, Code 1 2011, is amended to read as follows: 2 b. (1) The impact of the proposed project on other 3 businesses in competition with the business being considered 4 for assistance. The department shall make a good faith effort 5 to identify existing Iowa businesses within an industry in 6 competition with the business being considered for assistance. 7 The department shall make a good faith effort to determine 8 the probability that the proposed financial assistance will 9 displace employees of the existing businesses. In determining 10 the impact on businesses in competition with the business being 11 considered for assistance, jobs created or retained as a result 12 of other jobs being displaced elsewhere in the state shall not 13 be considered direct jobs created or retained. 14 (2) The department may waive consideration of the factor 15 in subparagraph (1) if the proposed project, at the time the 16 application is being considered, is located in a community 17 located within an area declared to be a disaster area in a 18 declaration issued by the president of the United States or the 19 governor and if the failure of the business being considered 20 for assistance would cause significant job loss considering 21 the population of the community. This subparagraph applies 22 to proposed projects located in disaster areas declared on or 23 after January 1, 2010. 24 Sec. 2. Section 15E.193, subsection 2, paragraph d, Code 25 2011, is amended to read as follows: 26 d. (1) The impact the business will have on other 27 businesses in competition with it. The enterprise zone 28 commission shall make a good faith effort to identify existing 29 Iowa businesses within an industry in competition with the 30 business being considered for assistance. The enterprise 31 zone commission shall make a good faith effort to determine 32 the probability that the proposed financial assistance will 33 displace employees of the existing businesses. In determining 34 the impact on businesses in competition with the business being 35 -1- LSB 1060XS (2) 84 tm/nh 1/ 3

S.F. 19 considered for assistance, jobs created or retained as a result 1 of other jobs being displaced elsewhere in the state shall not 2 be considered direct jobs created or retained. 3 (2) The commission may waive consideration of the factor in 4 subparagraph (1) if the business, at the time the application 5 is being considered, is located in a community located within 6 an area declared to be a disaster area in a declaration issued 7 by the president of the United States or the governor and if 8 the failure of the business being considered for assistance 9 would cause significant job loss considering the population of 10 the community. This subparagraph applies to businesses located 11 in disaster areas declared on or after January 1, 2010. 12 Sec. 3. Section 15G.112, subsection 2, paragraph c, Code 13 2011, is amended to read as follows: 14 c. (1) The proposed project shall not negatively impact 15 other businesses in competition with the business being 16 considered for assistance. The department shall make a good 17 faith effort to identify existing Iowa businesses within an 18 industry in competition with the business being considered for 19 financial assistance. The department shall make a good faith 20 effort to determine the probability that the proposed financial 21 assistance will displace employees of the existing businesses. 22 In determining the impact on businesses in competition with 23 the business being considered for financial assistance, jobs 24 created or retained as a result of other jobs being displaced 25 elsewhere in the state shall not be considered direct jobs 26 created or retained. 27 (2) The department may waive consideration of the factor 28 in subparagraph (1) if the proposed project, at the time the 29 application is being considered, is located in a community 30 located within an area declared to be a disaster area in a 31 declaration issued by the president of the United States or the 32 governor and if the failure of the business being considered 33 for assistance would cause significant job loss considering 34 the population of the community. This subparagraph applies to 35 -2- LSB 1060XS (2) 84 tm/nh 2/ 3

S.F. 19 projects located in disaster areas declared on or after January 1 1, 2010. 2 EXPLANATION 3 This bill relates to competition restrictions under certain 4 economic development programs. 5 Under the high quality jobs program, the enterprise zone 6 program, and the grow Iowa values financial assistance program, 7 consideration is given to whether financial assistance awarded 8 to a project would have an impact on competing businesses 9 in the state. The bill provides that the department and an 10 enterprise zone commission may waive consideration of this 11 factor if the proposed project, at the time the application is 12 being considered, is located in a community located within an 13 area declared to be a disaster area in a declaration issued by 14 the president of the United States or the governor and if the 15 failure of the business being considered for assistance would 16 cause significant job loss considering the population of the 17 community. The provisions allowing such waiver only apply to 18 projects located in disaster areas declared on or after January 19 1, 2010. 20 -3- LSB 1060XS (2) 84 tm/nh 3/ 3