SB 174
Modifies provisions relating to certain infrastructure improvement districts
Sponsor:
LR Number:
0763S.03C
Last Action:
4/19/2021 - Informal Calendar S Bills for Perfection w/SCS
Journal Page:
Title:
SCS SB 174
Calendar Position:
Effective Date:
August 28, 2021

Current Bill Summary

SCS/SB 174 - This act modifies provisions relating to certain infrastructure improvement districts.

ADVANCED INDUSTRIAL MANUFACTURING ZONES

Under current law, no advanced industrial manufacturing (AIM) zone may be established after August 28, 2023. This act extends such date to August 28, 2027.

This provision is substantially similar to SB 5 (2021), SB 636 (2020), and HB 2334 (2020), and to a provision contained in HCS/SS/SCS/SB 570 (2020), HCS/SS/SCS/SB 594 (2020), HCS/SB 686 (2020), HCS/SCS/SB 725 (2020), HCS/SB 782 (2020), and HCS/SCS/SB 867 (2020).

TARGETED INDUSTRIAL MANUFACTURING ENHANCEMENT ZONES

This act establishes the "Targeted Industrial Manufacturing Enhancement Zones Act".

This act allows any two or more contiguous or overlapping political subdivisions, as defined in the act, to create targeted industrial manufacturing enhancement (TIME) zones for the purpose of completing infrastructure projects to promote economic development. Prior to the creation of a TIME zone, each political subdivision shall propose an ordinance or resolution that sets forth the names of the political subdivisions which will form the zone, the general nature of the proposed improvements, the estimated cost of such improvements, the boundaries of the proposed TIME zone, and the estimated number of new jobs to be created in the TIME zone. The political subdivisions shall hold a public hearing prior to approving the ordinance or resolution creating the TIME zone.

This act allows the zone board governing the TIME zone to retain twenty-five percent of withholding taxes on new jobs created within the TIME zone to fund improvements made in the TIME zone. Prior to retaining such withholding taxes, the zone board shall enter into an agreement with the Department of Economic Development. Such agreement shall specify the estimated number of new jobs to be created, the estimated average wage of new jobs to be created, the estimated net fiscal impact of the new jobs, the estimated costs of improvements, and the estimated amount of withholding tax to be retained over the period of the agreement. The Department shall not approve an agreement unless the zone board commits to the creation of a certain number of new jobs, as described in the act.

The term of such agreement shall not exceed ten years. A zone board may apply to the Department for approval to renew any agreement. In determining whether to approve the renewal of an agreement, the Department shall consider the number of new jobs created and the average wage and net fiscal impact of such new jobs, and the outstanding improvements to be made within the TIME zone, the funding necessary to complete such improvements, and any other factor the Department requires. The Department may approve the renewal of an agreement for a period not to exceed ten years. If a zone board has not met the new job creation requirement s by the end of the agreement, the Department shall recapture the withholding taxes retained by the zone board.

The zone board shall submit an annual report to the Department and to the General Assembly, as described in the act.

No political subdivision shall establish a TIME zone with boundaries that overlap the boundaries of an advanced industrial manufacturing (AIM) zone.

The total amount of withholding taxes retained by TIME zones under this act shall not exceed $5 million per year.

No new TIME zone shall be created after August 28, 2024.

This provision is identical to a provision contained in HCS/SS/SCS/SB 594 (2020), HCS/SS/SCS/SB 570 (2020), HCS/SCS/SB 725 (2020), and SS#2/SCS/HCS/HB 1854 (2020), and is substantially similar to HCS/HB 1695 (2020).

JOSH NORBERG

Amendments

No Amendments Found.