Citations Affected: IC 4-4; IC 6-3; noncode.
Synopsis: Enterprise zones. Provides that a person who resides in an
enterprise zone and is an employee of a nonprofit entity or local, state,
or federal government is eligible for the qualified employee wage
deduction. Extends from December 31, 2003, to December 31, 2015,
the date beyond which the state enterprise zone board is prohibited
from adding new enterprise zones. Specifies that the designation of an
enterprise zone in a municipality in which a previously designated zone
has expired does not count against the limit allowing only two new
enterprise zones to be designated each year.
Effective: July 1, 2001; January 1, 2002.
January 17, 2001, read first time and referred to Committee on Ways and Means.
February 14, 2001, amended, reported _ Do Pass.
February 20, 2001, read second time, amended, ordered engrossed.
A BILL FOR AN ACT to amend the Indiana Code concerning
a new application. The board by rule shall provide application
(c) The board shall evaluate an enterprise zone application, if it finds that the following threshold criteria exist in a proposed zone:
(1) A poverty level in which twenty-five percent (25%) of the households in the zone are below the poverty level as established by the most recent United States census or an average rate of unemployment for the most recent eighteen (18) month period for which data is available that is at least one and one-half (1 1/2) times the average statewide rate of unemployment for the same eighteen (18) month period.
(2) A population of more than two thousand (2,000) but less than ten thousand five hundred (10,500).
(3) An area of more than three-fourths (3/4) square mile but less than four (4) square miles, with a continuous boundary (using natural, street, or highway barriers when possible) entirely within the applicant municipality. However, if the zone includes a parcel of property that:
(A) is owned by the municipality; and
(B) has an area of twenty-five (25) acres or more;
the area of the zone may be increased above the four (4) square mile limitation by an amount not to exceed the area of the municipally owned parcel.
(4) Property suitable for the development of a mix of commercial, industrial, and residential activities.
(5) The appointment of an urban enterprise association that meets the requirements of section 4 of this chapter.
(6) A statement by the applicant indicating its willingness to provide certain specified economic development incentives.
(d) If an applicant has met the threshold criteria of subsection (c), the board shall evaluate the application, arrive at a decision based on the following factors, and either designate a zone or reject the application:
(1) Level of poverty, unemployment, and general distress of the area in comparison to other applicant and nonapplicant municipalities and the expression of need for an enterprise zone over and above the threshold criteria contained in subsection (c).
(2) Evidence of support for designation by residents, businesses, and private organizations in the proposed zone, and the demonstration of a willingness among those zone constituents to participate in zone area revitalization.
(3) Efforts by the applicant municipality to reduce the
impediments to development in the zone area where necessary,
including but not limited to the following:
(A) A procedure for streamlining local government regulations and permit procedures.
(B) Crime prevention activities involving zone residents.
(C) A plan for infrastructure improvements capable of supporting increased development activity.
(4) Significant efforts to encourage the reuse of existing zone structures in new development activities to preserve the existing character of the neighborhood, where appropriate.
(5) The proposed managerial structure of the zone and the capacity of the urban enterprise association to carry out the goals and purposes of this chapter.
(e) An enterprise zone expires ten (10) years from the day on which it is designated by the board. The two (2) year period immediately before the day on which it expires is the phase-out period. During the phase-out period, the board may review the success of the enterprise zone based upon the following criteria and may, with the consent of the budget committee, renew the zone, including all provisions of this chapter, for a period of five (5) years:
(1) Increases in capital investment in the zone.
(2) Retention of jobs and creation of jobs in the zone.
(3) Increases in employment opportunities for residents of the zone.
(f) If an enterprise zone is renewed under subsection (e), the two (2) year period immediately before the date on which the zone expires is another phase-out period. During the phase-out period, the board may review the success of the enterprise zone based upon the criteria set forth in subsection (e) and, with the consent of the budget committee, may again renew the zone, including all provisions of this chapter, for a final period of five (5) years. The zone may not be renewed after the expiration of this final five (5) year period.
(g) Notwithstanding any other provision of this chapter, one (1) or more units (as defined in IC 36-1-2-23) may declare all or any part of a military base or other military installation that is inactive, closed, or scheduled for closure as an enterprise zone. Such a declaration shall be made by a resolution of the legislative body of the unit that contains the geographic area being declared an enterprise zone. The legislative body must include in the resolution that an urban enterprise association is created or designate another entity to function as the urban enterprise association under this chapter. The resolution must also be approved by the executive of the unit. If the resolution is approved, the executive
shall file the resolution and the executive's approval with the board. If
an entity other than an urban enterprise association is designated to
function as an urban enterprise association, the entity's acceptance must
be filed with the board along with the resolution. The enterprise zone
designation is effective on the first day of the month following the date
the resolution is filed with the board. Establishment of an enterprise
zone under this subsection is not subject to the limit of two (2) new
enterprise zones each year under subsection (a).
(h) The enterprise zone board may not approve the enlargement of an enterprise zone's geographic boundaries unless the area to be enlarged meets the criteria of economic distress set forth in subsection (c)(1).