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House Study Bill 252 - IntroducedA Bill ForAn Act 1relating to rural economic development by establishing
2a rural economic revitalization center and requiring that
3a certain percentage of the tax incentives administered by
4the economic development authority be provided to projects
5located in small cities, and including applicability
6provisions.
7BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. Section 15.105, Code 2019, is amended by adding
2the following new subsection:
3 NEW SUBSECTION. 8A. The members of the authority shall
4administer the rural economic revitalization center established
5in section 15.106F.
6 Sec. 2. NEW SECTION. 15.106F Rural economic revitalization
7center.
81. A rural economic revitalization center is established
9within the authority. A rural economic revitalization
10center office shall be established and maintained in each
11congressional district on the campus of either a community
12college or regents institution within each district.
132. The rural economic revitalization center shall support
14rural communities by doing all of the following:
15a. Identify and study successful strategies to attract and
16grow economic development and the workforce.
17b. Identify and assist in applications for economic
18development programs.
19c. Identify and provide pathways for rural community
20improvement.
21d. Assist in and serve as a conduit for rural policy
22development.
233. The board shall serve as the governing body of the rural
24economic revitalization center, and shall provide an annual
25report to the general assembly and the governor relating to
26rural revitalization issues and efforts by January 15, 2021,
27and by every January 15, thereafter.
28 Sec. 3. Section 15.119, Code 2019, is amended by adding the
29following new subsection:
30 NEW SUBSECTION. 3A. a. Of the total amount of tax credits
31allocated for purposes of subsection 2, paragraph “a”, during
32each fiscal year, at least fifty percent shall be allocated for
33purposes of small city projects that meet all of the following
34criteria:
35(1) An accredited public or private postsecondary
-1-1educational institution is located in the county in which the
2small city is located.
3(2) Sufficient housing is located within thirty miles of
4the project to accommodate such a project. As used in this
5subparagraph, “sufficient housing” means a determination using
6information from the latest American community survey conducted
7by the United States census bureau relating to statistics on
8rental housing, owner-occupied housing, vacancy rates, and
9vacancy units.
10b. In the event this small city allocation percentage is not
11satisfied in a given fiscal year, a shortfall is declared to
12exist, and the percentage of the total amount of tax credits
13allocated for purposes of subsection 2, paragraph “a”, during
14the succeeding fiscal year that shall be allocated for purposes
15of projects located in a small city shall be adjusted to equal
16an amount necessary to reach the fifty percent small city
17allocation percentage for that fiscal year, plus an amount
18equal to the shortfall for the prior fiscal year or years.
19c. For purposes of this subsection, “small city” means any
20city located in this state with a population of thirty thousand
21or less in a county with a population of fifty thousand or
22less. A small city that is located in more than one county
23shall be considered to be located in the county having the
24greatest taxable base within the city.
25 Sec. 4. APPLICABILITY. The following applies to fiscal
26years beginning on or after the effective date of this Act:
27The section of this Act amending section 15.119.
28EXPLANATION
29The inclusion of this explanation does not constitute agreement with
30the explanation’s substance by the members of the general assembly.
31This bill relates to rural economic development by
32establishing a rural economic revitalization center and
33requiring a certain percentage of the tax incentives
34administered by the economic development authority (authority)
35to be provided to projects located in small cities.
-2- 1The bill establishes a rural economic revitalization center
2within the authority. A rural economic revitalization center
3office shall be established in each congressional district on
4the campus of either a community college or regents institution
5within each district. The bill specifies that the rural
6economic revitalization center shall support rural communities
7by identifying and studying successful strategies to attract
8and grow economic development and the workforce; assisting
9in and serving as a conduit for rural policy development;
10identifying and assisting in applications for economic
11development programs; and identifying and providing pathways
12for rural community improvement.
13The members of the authority appointed by the governor
14pursuant to Code section 15.105 shall serve as the governing
15body of the rural economic revitalization center. The
16bill requires the governing body of the rural economic
17revitalization center to provide an annual report to
18the general assembly and the governor relating to rural
19revitalization issues and efforts by January 15, 2021, and by
20every January 15, thereafter.
21Under the tax credit program administered by the authority,
22the authority provides various tax incentives to eligible
23businesses that complete projects in Iowa. The bill requires
24that at least 50 percent of the tax incentives awarded by the
25authority each fiscal year shall be allocated for projects
26located in a small city based upon certain criteria. The
27criteria for purposes of allocation of projects in a small
28city require the following: an accredited public or private
29postsecondary educational institution located in the county in
30which the small city is located and sufficient housing located
31within 30 miles of the project. The bill defines “sufficient
32housing” to mean a determination using information from the
33latest American community survey conducted by the United States
34census bureau relating to statistics on rental housing, owner
35occupied housing, vacancy rates, and vacancy units.
-3- 1The bill defines “small city” to mean any city located in
2this state with a population of 30,000 or less in a county with
3a population of 50,000 or less. If a small city is located in
4more than one county, it is considered to be located in the
5county having the greatest taxable base within the city.
6In the event this small city percentage is not satisfied in
7a given fiscal year, a shortfall is declared to exist, and the
8percentage of tax incentives awarded to projects in a small
9city in the succeeding fiscal year shall be adjusted to equal
10an amount necessary to reach the 50 percent requirement for
11that fiscal year, plus an amount equal to the shortfall for the
12prior fiscal year or years.
13The amendment relating to the tax credits administered by
14the authority applies to fiscal years beginning on or after the
15effective date of the bill.
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2a rural economic revitalization center and requiring that
3a certain percentage of the tax incentives administered by
4the economic development authority be provided to projects
5located in small cities, and including applicability
6provisions.
7BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. Section 15.105, Code 2019, is amended by adding
2the following new subsection:
3 NEW SUBSECTION. 8A. The members of the authority shall
4administer the rural economic revitalization center established
5in section 15.106F.
6 Sec. 2. NEW SECTION. 15.106F Rural economic revitalization
7center.
81. A rural economic revitalization center is established
9within the authority. A rural economic revitalization
10center office shall be established and maintained in each
11congressional district on the campus of either a community
12college or regents institution within each district.
132. The rural economic revitalization center shall support
14rural communities by doing all of the following:
15a. Identify and study successful strategies to attract and
16grow economic development and the workforce.
17b. Identify and assist in applications for economic
18development programs.
19c. Identify and provide pathways for rural community
20improvement.
21d. Assist in and serve as a conduit for rural policy
22development.
233. The board shall serve as the governing body of the rural
24economic revitalization center, and shall provide an annual
25report to the general assembly and the governor relating to
26rural revitalization issues and efforts by January 15, 2021,
27and by every January 15, thereafter.
28 Sec. 3. Section 15.119, Code 2019, is amended by adding the
29following new subsection:
30 NEW SUBSECTION. 3A. a. Of the total amount of tax credits
31allocated for purposes of subsection 2, paragraph “a”, during
32each fiscal year, at least fifty percent shall be allocated for
33purposes of small city projects that meet all of the following
34criteria:
35(1) An accredited public or private postsecondary
-1-1educational institution is located in the county in which the
2small city is located.
3(2) Sufficient housing is located within thirty miles of
4the project to accommodate such a project. As used in this
5subparagraph, “sufficient housing” means a determination using
6information from the latest American community survey conducted
7by the United States census bureau relating to statistics on
8rental housing, owner-occupied housing, vacancy rates, and
9vacancy units.
10b. In the event this small city allocation percentage is not
11satisfied in a given fiscal year, a shortfall is declared to
12exist, and the percentage of the total amount of tax credits
13allocated for purposes of subsection 2, paragraph “a”, during
14the succeeding fiscal year that shall be allocated for purposes
15of projects located in a small city shall be adjusted to equal
16an amount necessary to reach the fifty percent small city
17allocation percentage for that fiscal year, plus an amount
18equal to the shortfall for the prior fiscal year or years.
19c. For purposes of this subsection, “small city” means any
20city located in this state with a population of thirty thousand
21or less in a county with a population of fifty thousand or
22less. A small city that is located in more than one county
23shall be considered to be located in the county having the
24greatest taxable base within the city.
25 Sec. 4. APPLICABILITY. The following applies to fiscal
26years beginning on or after the effective date of this Act:
27The section of this Act amending section 15.119.
28EXPLANATION
29The inclusion of this explanation does not constitute agreement with
30the explanation’s substance by the members of the general assembly.
31This bill relates to rural economic development by
32establishing a rural economic revitalization center and
33requiring a certain percentage of the tax incentives
34administered by the economic development authority (authority)
35to be provided to projects located in small cities.
-2- 1The bill establishes a rural economic revitalization center
2within the authority. A rural economic revitalization center
3office shall be established in each congressional district on
4the campus of either a community college or regents institution
5within each district. The bill specifies that the rural
6economic revitalization center shall support rural communities
7by identifying and studying successful strategies to attract
8and grow economic development and the workforce; assisting
9in and serving as a conduit for rural policy development;
10identifying and assisting in applications for economic
11development programs; and identifying and providing pathways
12for rural community improvement.
13The members of the authority appointed by the governor
14pursuant to Code section 15.105 shall serve as the governing
15body of the rural economic revitalization center. The
16bill requires the governing body of the rural economic
17revitalization center to provide an annual report to
18the general assembly and the governor relating to rural
19revitalization issues and efforts by January 15, 2021, and by
20every January 15, thereafter.
21Under the tax credit program administered by the authority,
22the authority provides various tax incentives to eligible
23businesses that complete projects in Iowa. The bill requires
24that at least 50 percent of the tax incentives awarded by the
25authority each fiscal year shall be allocated for projects
26located in a small city based upon certain criteria. The
27criteria for purposes of allocation of projects in a small
28city require the following: an accredited public or private
29postsecondary educational institution located in the county in
30which the small city is located and sufficient housing located
31within 30 miles of the project. The bill defines “sufficient
32housing” to mean a determination using information from the
33latest American community survey conducted by the United States
34census bureau relating to statistics on rental housing, owner
35occupied housing, vacancy rates, and vacancy units.
-3- 1The bill defines “small city” to mean any city located in
2this state with a population of 30,000 or less in a county with
3a population of 50,000 or less. If a small city is located in
4more than one county, it is considered to be located in the
5county having the greatest taxable base within the city.
6In the event this small city percentage is not satisfied in
7a given fiscal year, a shortfall is declared to exist, and the
8percentage of tax incentives awarded to projects in a small
9city in the succeeding fiscal year shall be adjusted to equal
10an amount necessary to reach the 50 percent requirement for
11that fiscal year, plus an amount equal to the shortfall for the
12prior fiscal year or years.
13The amendment relating to the tax credits administered by
14the authority applies to fiscal years beginning on or after the
15effective date of the bill.
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