HSB 252 (LSB 1404YC (8) 88)

HOUSE FILE _____ 

BY  (PROPOSED COMMITTEE ON APPROPRIATIONS BILL BY CHAIRPERSON GRASSLEY)

A BILL FOR

An Act relating to rural economic development by establishing a rural economic revitalization center and requiring that a certain percentage of the tax incentives administered by the economic development authority be provided to projects located in small cities, and including applicability provisions.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 15.105, Code 2019, is amended by adding the following new subsection:
   NEW SUBSECTION.  8A.  The members of the authority shall administer the rural economic revitalization center established in section 15.106F.
    Sec. 2.  NEW SECTION.  15.106F  Rural economic revitalization center.
   1.  A rural economic revitalization center is established within the authority. A rural economic revitalization center office shall be established and maintained in each congressional district on the campus of either a community college or regents institution within each district.
   2.  The rural economic revitalization center shall support rural communities by doing all of the following:
   a.  Identify and study successful strategies to attract and grow economic development and the workforce.
   b.  Identify and assist in applications for economic development programs.
   c.  Identify and provide pathways for rural community improvement.
   d.  Assist in and serve as a conduit for rural policy development.
   3.  The board shall serve as the governing body of the rural economic revitalization center, and shall provide an annual report to the general assembly and the governor relating to rural revitalization issues and efforts by January 15, 2021, and by every January 15, thereafter.
    Sec. 3.  Section 15.119, Code 2019, is amended by adding the following new subsection:
   NEW SUBSECTION.  3A.  a.  Of the total amount of tax credits allocated for purposes of subsection 2, paragraph “a”, during each fiscal year, at least fifty percent shall be allocated for purposes of small city projects that meet all of the following criteria:
   (1)  An accredited public or private postsecondary educational institution is located in the county in which the small city is located.
   (2)  Sufficient housing is located within thirty miles of the project to accommodate such a project. As used in this subparagraph, “sufficient housing” means a determination using information from the latest American community survey conducted by the United States census bureau relating to statistics on rental housing, owner-occupied housing, vacancy rates, and vacancy units.
   b.  In the event this small city allocation percentage is not satisfied in a given fiscal year, a shortfall is declared to exist, and the percentage of the total amount of tax credits allocated for purposes of subsection 2, paragraph “a”, during the succeeding fiscal year that shall be allocated for purposes of projects located in a small city shall be adjusted to equal an amount necessary to reach the fifty percent small city allocation percentage for that fiscal year, plus an amount equal to the shortfall for the prior fiscal year or years.
   c.  For purposes of this subsection, “small city” means any city located in this state with a population of thirty thousand or less in a county with a population of fifty thousand or less. A small city that is located in more than one county shall be considered to be located in the county having the greatest taxable base within the city.
    Sec. 4.  APPLICABILITY.  The following applies to fiscal years beginning on or after the effective date of this Act:
   The section of this Act amending section 15.119.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   This bill relates to rural economic development by establishing a rural economic revitalization center and requiring a certain percentage of the tax incentives administered by the economic development authority (authority) to be provided to projects located in small cities.
   The bill establishes a rural economic revitalization center within the authority. A rural economic revitalization center office shall be established in each congressional district on the campus of either a community college or regents institution within each district. The bill specifies that the rural economic revitalization center shall support rural communities by identifying and studying successful strategies to attract and grow economic development and the workforce; assisting in and serving as a conduit for rural policy development; identifying and assisting in applications for economic development programs; and identifying and providing pathways for rural community improvement.
   The members of the authority appointed by the governor pursuant to Code section 15.105 shall serve as the governing body of the rural economic revitalization center. The bill requires the governing body of the rural economic revitalization center to provide an annual report to the general assembly and the governor relating to rural revitalization issues and efforts by January 15, 2021, and by every January 15, thereafter.
   Under the tax credit program administered by the authority, the authority provides various tax incentives to eligible businesses that complete projects in Iowa. The bill requires that at least 50 percent of the tax incentives awarded by the authority each fiscal year shall be allocated for projects located in a small city based upon certain criteria. The criteria for purposes of allocation of projects in a small city require the following: an accredited public or private postsecondary educational institution located in the county in which the small city is located and sufficient housing located within 30 miles of the project. The bill defines “sufficient housing” to mean a determination using information from the latest American community survey conducted by the United States census bureau relating to statistics on rental housing, owner occupied housing, vacancy rates, and vacancy units.
   The bill defines “small city” to mean any city located in this state with a population of 30,000 or less in a county with a population of 50,000 or less. If a small city is located in more than one county, it is considered to be located in the county having the greatest taxable base within the city.
   In the event this small city percentage is not satisfied in a given fiscal year, a shortfall is declared to exist, and the percentage of tax incentives awarded to projects in a small city in the succeeding fiscal year shall be adjusted to equal an amount necessary to reach the 50 percent requirement for that fiscal year, plus an amount equal to the shortfall for the prior fiscal year or years.
   The amendment relating to the tax credits administered by the authority applies to fiscal years beginning on or after the effective date of the bill.