1996 Nebraska State Statutes -- Enterprise Zone Act
Contact: Steve Duvall (DED) - 402-471-3742
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Legislative findings.
13-2101. The Legislature finds that:
(1) There exist in this state distressed areas where
unemployment is higher than the state or national average, where
poverty levels are higher than the state or national average,
where the population is declining, where property is being
abandoned, and where other forms of economic distress are
occurring which adversely affect the general welfare of the
people of this state;
(2) Such unemployment and other problems cause the
distressed areas of the state to deteriorate and become
substandard and blighted, making the areas economic or social
liabilities which are harmful to the social and economic
well-being of the state and the counties and communities in which
they exist. Such distressed areas cause a needless increase in
public expenditures, impose an onerous burden on the state and
its political subdivisions, decrease the tax base, reduce tax
revenue, substantially impair or arrest the sound growth of the
state and its political subdivisions, depreciate general
statewide and community-wide values, and contribute to the spread
of disease and crime. This in turn necessitates excessive and
disproportionate expenditures of public funds for the
preservation of the public health and safety, for crime
prevention, correction, prosecution, and punishment, for the
treatment of juvenile delinquency, for the maintenance of
adequate police, fire, and accident protection, and for other
public services and facilities;
(3) From time to time, various communities in the state
suffer extensive economic distress from the loss of a major
employer in the area or from a major cut-back in employment by
such an employer resulting in high local unemployment and
threatening the economic balance of the community if not its
continued existence; and
(4) Stimulation of economic development in the
distressed areas
is a matter of state policy, public interest, and concern and is
within the power and authority inherent in and reserved to the
state. Economic development is needed to insure that the state
will not continue to be endangered by areas which consume an
excessive proportion of revenue and that the economic base of the
state may be broadened and stabilized by providing jobs and
increasing the tax base.
Act, how cited.
13-2101.01. Sections 13-2101 to 13-2114 shall be known
and may be cited as the Enterprise Zone Act.
Terms, defined.
13-2102. For purposes of the Enterprise Zone Act:
(1) Census shall mean the federal decennial census;
(2) Department shall mean the Department of Economic
Development;
(3) Economic distress shall mean conditions of
unemployment, poverty, and declining population existing within
the area of a proposed enterprise zone considered in the stated
order as an order of priority from most to least significant;
(4) Enterprise zone or zone shall mean an area which is
at least one but no more than sixteen square miles in total area
composed of one or more discrete areas which have a combined
total resident population of not less than two hundred fifty
persons. If it is composed of more than one discrete area, each
separate area must meet the eligibility criteria established by
this subdivision and (a) must be no more than five miles from
another area if the zone is located within a city of the
metropolitan or primary class, (b) must be located within the
same county if the zone is located outside of the boundaries of a
city of the metropolitan or primary class, or (c) must be located
within the boundaries of the applying political subdivisions if
the application for zone designation is made jointly by counties
or tribal government areas pursuant to subsection (4) of section
13-2103. No area or portion of an area located in a city of the
metropolitan or primary class shall include any portion of a
central business district. For purposes of this subdivision,
central business district shall mean an area comprised of a high
concentration of office, service, financial, lodging,
entertainment, and retail businesses and government facilities
and possessing a high traffic flow or an area composed of one or
more complete federal census tracts defined as a central business
district by the United States Bureau of the Census.
To qualify as an enterprise zone under this subdivision
(4), such area must meet at least two of the following three
criteria as measured by data from the United States Bureau of the
Census:
(i) Population in the area or within a reasonable
proximity to the area has decreased by at least ten percent
between the date of the most recent census and the date of the
immediately preceding census;
(ii) The average rate of unemployment in the area or
within a reasonable proximity to the area is at least two hundred
percent of the average rate of unemployment in the state during
the same period covered by the most recent census; or
(iii) The average poverty rate in the area exceeds
twenty percent for the total federal census tract or tracts or
federal census block group or block groups in the area or within
a reasonable proximity to the area when the area is located
within the legal boundaries of a city of the metropolitan or
primary class or the average poverty rate in the area exceeds
twenty percent for the total federal census tract or tracts or
federal census block group or block groups which encompass the
legal boundaries of a city of the first class, city of the second
class, village, or tribal government area when the area is
located in such political subdivision.
For purposes of this subdivision (4), reasonable
proximity shall refer to the federal census tracts or federal
census block groups which either in whole or in part are within
the boundaries of any portion of the proposed zone;
(5) Political subdivision shall mean any incorporated
village, city, county, or tribal government area; and
(6) Tribal government area shall mean (a) that portion
of Knox County under the jurisdiction of the Santee Sioux Tribe,
(b) that portion of Thurston County under the jurisdiction of the
Omaha Tribe, and (c) that portion of Thurston County under the
jurisdiction of the Winnebago Tribe.
Designation; application; requirements; limitation; term.
13-2103. (1) (a) Following the formal adoption of
rules and regulations pursuant to section 13-2112, the department
shall, for a period of one hundred twenty days, accept formal
applications for the designation of enterprise zones. Within
sixty days after the end of such application period, the
department may designate not more than two areas as enterprise
zones based on eligible applications it has received. Each area
designated as an enterprise zone shall meet all eligibility
criteria.
(b) For a period of one hundred eighty days following
April 1 next immediately following the end of the application
period specified in subdivision (a) of this subsection, the
department shall accept formal applications for the designation
of enterprise zones. Within sixty days after the end of such
application period, the department may designate additional areas
as enterprise zones based on eligible applications it has
received, subject to the restriction on number of zones
designated set out in subdivision (c) of this subsection. Each
area designated as an enterprise zone shall meet all eligibility
criteria.
(c) During the two application periods set out in
subdivisions (a) and (b) of this subsection, the department shall
not designate more than a total of five enterprise zones in this
state. Of the five enterprise zones authorized, at least three
shall be located outside of the boundaries of cities of the
metropolitan and primary classes.
(d) In any application period, the department may
reject from consideration any application which does not fully
and completely comport with the provisions of section 13-2104 at
the end of the designated application period. In choosing among
eligible applications for enterprise zone designation, the
department shall consider the levels of distress existing within
the applicant areas and the contents of the applicant's formal
enterprise zone application.
(2) Any city, village, tribal government area, or
county may apply for designation of an area within such city,
village, tribal government area, or county as an enterprise zone,
except that if a county seeks to have an area within an
incorporated city or village or a tribal government area
designated as an enterprise zone, the consent of the governing
body of such city, village, or tribal government area shall first
be required.
(3) If an incorporated city or village or a tribal
government area consents, a county may apply on behalf of the
city, village, or tribal government area for certification of an
area within such city, village, or tribal government area as an
enterprise zone. Both a county and a city, village, or tribal
government area shall not apply for certification of the same
area.
(4) Two or more counties or tribal government areas may
jointly apply for designation of an area as an enterprise zone
which is located on both sides of their common boundaries.
(5) Political subdivisions wishing to file an
application for designation of an enterprise zone shall first
follow the procedures set out in sections 13-2106 to 13-2108. An
application for designation as an enterprise zone shall be in a
form and contain information prescribed by the department
pursuant to section 13-2104.
(6) An area designated as an enterprise zone shall
retain such designation for a period of ten years from the date
of such designation.
(7) All enterprise zones designated as such within a
single county shall not exceed a total of sixteen square miles in
area.
Application; contents.
13-2104. An application for designation of an area as
an enterprise zone shall contain at least the following:
(1) A description of the geographic location of the
proposed zone;
(2) Documentation that the area of the proposed
enterprise zone represents the area with the greatest level of
economic distress within the boundaries of the applying political
subdivision;
(3) An enterprise zone economic development plan
containing goals, objectives, and a description of current and
new actions to be undertaken to encourage private investment in
the area, including: (a) Job training to be provided to new and
existing businesses in the zone and to unemployed and displaced
worker residents; (b) the provision of technical assistance to
businesses in the zone, such as management training, marketing
assistance, engineering or technology assistance, and business
plan preparation; (c) efforts to be made to assure the safety of
businesses and employees in the zone; (d) efforts to be made to
market the zone to new and existing businesses as an appropriate
place for location or expansion; (e) infrastructure investments
to be made to lead to economic development; and (f)
organizational structures to be created and processes to be
undertaken which will lead toward economic development;
(4) A plan to insure that resources are available to
assist residents of the area with self-help development;
(5) A description of any projected positive or negative
effects of designation of the area as an enterprise zone;
(6) A plan to provide assistance to persons or
businesses displaced as a result of zone activity;
(7) Documentation of substantial commitments to be made
by the private sector of resources and contributions to the
operation or development of the zone;
(8) Documentation that the requirements in sections
13-2106 to 13-2108 have been completed;
(9) Cities of the metropolitan, primary, and first
classes shall provide documentation of the commitment of funds
for expenditure in the proposed enterprise zone during the first
three years of its existence if it is designated an enterprise
zone by the department. Such funds shall be for the purpose of
directly or indirectly assisting or enabling businesses to locate
or expand existing operations within the area of the proposed
enterprise zone. The funds to be committed and expended shall be
from revenue of the city or any other local political
subdivision, from private nongovernmental sources, or from any
other nonstate government sources. For cities of the
- metropolitan and primary classes, such commitments from all
permitted sources shall not be less than five hundred thousand
dollars. For cities of the first class, such commitments from
all permitted sources shall not be less than one hundred thousand
dollars. No application for enterprise zone designation from a
city of the metropolitan, primary, or first class shall be
approved until commitments at the level designated have been
documented to the department;
(10) Counties, tribal governments, cities of the second
class, and villages shall document commitments to be made from
private sector sources of resources and funds for the operation
and development of the enterprise zone and commitments by the
applicant and other local political subdivisions of local revenue
and other nonstate government resources to encourage economic
development in the area. Such commitments of funds shall be
consistent with local government capabilities to raise additional
funds from local sources and shall reflect the applicant's
commitment to the proposed enterprise zone. If a county is
making an application for designation of an area located in whole
or in part within the boundaries of a city of the metropolitan,
primary, or first class, the county shall provide documentation
of the commitment of funds for expenditure in the proposed
enterprise zone as provided in subdivision (9) of this section as
if the application were being made by the city; and
(11) A description of any actions to be taken with
regard to the removal, reduction, or simplification of any
resolutions, regulations, ordinances, fees, or other items
pursuant to the authority granted by section 13-2111.
Use of federal funds; state government interagency response team.
13-2105. The Legislature shall encourage the targeting
of funds from federal programs, including Community Development
Block Grants, the Job Training Partnership Act, Community
Services Block Grants, federal highway funds, or other federal
funds received by the state for designated enterprise zones.
Local governments shall be encouraged to use federal funds to
provide assistance to business activities in enterprise zones and
to seek designation of appropriate areas as community development
areas under the Community Development Assistance Act. The
Governor shall provide a state government interagency response
team to work with local governments and enterprise zone
associations on effective ways to use new and existing resources
from all levels of government to improve development capacity in
enterprise zones and accomplish the purposes of the Enterprise
Zone Act.
City council, village board, county board, or tribal government;
resolution to establish zone.
13-2106. A city council, village board, county board,
or tribal government may propose the creation of one or more
enterprise zones by adopting a resolution of intention to
establish a zone or zones. The resolution shall contain a
description of the boundaries of the zone or zones, the time and
place of a hearing to be held by the city council, village board,
county board, or tribal government, a basic summary of the
information to be provided to the department as specified in
section 13-2104, and such other additional information as the
proposing body may desire to include.
Public hearing; notice.
13-2107. Any city council, village board, county
board, or tribal government proposing to create an enterprise
zone or zones shall hold a public hearing on the question. A
notice of the hearing shall be given by one publication of the
resolution of intention in a newspaper of general circulation in
the city, village, county, or tribal government area at least ten
days prior to the hearing.
City council, village board, county board, or tribal government;
vote to make formal application.
13-2108. Following the public hearing held pursuant to
section 13-2107, the city council, village board, county board,
or tribal government may vote to make formal application to the
department for the creation of an enterprise zone or zones and
take any additional appropriate action with regard to the
creation of such zone or zones.
Enterprise zone association; board; membership; vacancies; powers
and duties; dissolution.
13-2109. There shall be created an enterprise zone
association within each proposed enterprise zone upon the
decision by the political subdivision to submit an enterprise
zone application. Such enterprise zone association shall be
governed by an enterprise zone association board which shall
consist of seven members to be appointed by the mayor of the city
or village with the approval of the city council or village
board, by the county board, or by the tribal chairperson. The
city council, village board, county board, or tribal government
shall establish the length of the terms. Vacancies on the
enterprise zone association board shall be filled in the same
manner as initial appointments, and such members shall serve for
the balance of the unexpired terms. A board member may serve
more than one term. The enterprise zone association board shall
select its own officers and may exercise such other additional
powers and authority as may be granted it by the department or
the city, village, county, or tribal government. The presence of
at least four members of the enterprise zone association board
shall be necessary to transact any business.
Individuals chosen to serve as members of the
enterprise zone association board shall include property owners,
residents, business operators, and users of space within the area
of the enterprise zone as well as individuals representing groups
or organizations with an interest in furthering the purposes and
goals of the enterprise zone. The city, village, county, or
tribal government establishing the enterprise zone association
may provide appropriate staff assistance and support to the
association.
If an applicant for designation as an enterprise zone
does not receive such designation, the association of such
applicant shall be dissolved.
Enterprise zone association; powers and duties.
13-2110. (1) An enterprise zone association created
pursuant to section 13-2109 shall:
(a) Approve the application to be submitted by the
political subdivision to the department for enterprise zone
designation;
(b) Promote the enterprise zone to outside groups and
individuals;
(c) Establish a formal line of communication with
residents and businesses in the enterprise zone; and
(d) Act as a liaison between residents, businesses, and
the city, village, county, or tribal government for any
development activity that may affect the enterprise zone or zone
residents.
(2) An enterprise zone association may:
(a) Initiate and coordinate any community development
activities that aid in the employment of enterprise zone
residents, improve the physical environment, or encourage the
turnover or retention of capital in the enterprise zone. Such
additional activities may include recommendations to the city,
village, county, or tribal government and the department; and
(b) Make recommendations to the city, village, county,
tribal government, state agency, or other political subdivision
for the establishment of a plan or plans for public improvements
or programs.
Political subdivision; remove, reduce, or simplify certain
resolutions, regulations, or ordinances; when.
13-2111. In order to accomplish the purposes of the
Enterprise Zone Act, any political subdivision may remove,
reduce, or simplify, in whole or in part, the provisions of any
resolution, regulation, or ordinance relating to fees or
administrative or procedural requirements as they relate to
enterprise zones or entities or persons within the boundaries of
an enterprise zone, except that such removal, reduction, or
simplification shall not occur unless there is a finding by the
political subdivision that the proposed action would not endanger
the health or safety of the public.
Rules and regulations.
13-2112. The department shall adopt and promulgate
rules and regulations to carry out the Enterprise Zone Act.
Business entity; entitled to tax credits; when.
13-2113. Any business entity located, starting up, or
expanding within an enterprise zone on or after the date upon
which the area is designated as an enterprise zone by the
department and which is a taxpayer otherwise entitled to receive
tax credits pursuant to the Employment Expansion and Investment
Incentive Act shall receive credit in the amount provided in
subsection (3) of section 77-27,188. Except for the additional
qualification that a taxpayer be located within an enterprise
zone and that, in consequence, the amount of tax credits it
receives is governed by subsection (3) of section 77-27,188, the
grant of tax credits to that taxpayer shall in all other respects
be governed by the Employment Expansion and Investment Incentive
Act.
Report; contents; filing requirements.
13-2114. Within one hundred twenty days of the end of
the third year following the designation of an area as an
enterprise zone and at the end of each two-year period
thereafter, the original applying political subdivision shall
file with the department a report on the enterprise zone
detailing the status of the zone on the qualifying economic
distress criteria, the current status of economic activity within
the zone, including the number and type of new business
enterprises which have located within the zone and their levels
of employment, the status of local efforts to carry out the
enterprise zone economic development plan outlined in the
original application, the status of local efforts to comply with
commitments made under subdivisions (9) and (10) of section
13-2104, the membership and activities of the enterprise zone
association, and such other items as the department shall request
to enable it to assess the current status of the enterprise zone
and to make appropriate recommendations to the Legislature upon
the enterprise zone program as set out in the Enterprise Zone
Act. Prior to filing such report, the applying political
subdivision shall provide copies of the report to its enterprise
zone association which shall attach thereto for filing with the
department such comments or additional information or
recommendations as it deems appropriate. Prior to the
commencement of the next following legislative session, the
department shall file copies of such reports with the Clerk of
the Legislature along with any comments or recommendations it may
have with regard thereto or with regard to the act.