HB 602 (BR 1995) - R. Wilkey, M. Denham, D. Ford, R. Meeks
AN ACT relating to economic development.
Amend KRS 42.4588 relating to the Local Government Economic Development program to expand eligible programs; amend KRS 42.4585 to increase the assistance fund from 13% to 15%; amend KRS 65.680 to include new definitions related to the Kentucky Tax Increment Financing Act (TIF); amend KRS 65.682 to declare TIFs a public purpose; amend KRS 65.686, regarding cities and counties, to establish a TIF development area; amend KRS 65.692 to clarify the use of increment bonds; amend KRS 65.694 to conform; create two new sections in KRS 65.680 to 65.699 to specify how a city or county or agency may apply to the Kentucky Economic Development Finance Authority (KEDFA) for approval of a development area; or with the Cabinet for Economic Development for approval of a development and related project for determination of an economic development or tourism development project; with requirements and a procedure for determining the state's portion of the increments and certification; amend KRS 103.210 to require prior approval by KEDFA of all KRS Chapter 103 industrial revenue bond issuances for industrial buildings; amend KRS 132.020 to conform; amend KRS 154.22-010 to include new definitions in the Kentucky Rural Economic Development Act (KREDA); amend KRS 154.22-040 relating to certification of KREDA counties to provide a third method for determining eligibility; and to establish wage and benefit standards for approved companies; amend KRS 154.22-050 to delete references to a financing agreement and add incentive agreement; and require companies to recover inducements based on actual investments rather than debt service paid; amend KRS 154.22-060 to limit an inducement to the amount in the tax incentive agreement; amend KRS 154.22-070 to provide that the authority may consent to assessments by an affiliate of the approved company; create a new section of KRS Chapter 22 to provide that the current KREDA projects are subject to current law and not the provisions of this Act; amend KRS 154.23-010 to include new definitions of the Kentucky Economic Opportunity Zone Act (KEOZ); amend KRS 154.23-015 to conform; amend KRS 154.23-025 to establish wage and benefit standards under this program and to allow for project eligibility to transfer to an acquiring company; amend KRS 154.23-030 delete references to financing agreement and add incentive agreement; amend KRS 154.23-035 to delete references to a financing agreement and add incentive agreement; and require companies to recover inducements based on actual investments rather than debt service paid; amend KRS 154.23-045 and KRS 154.23-055 to conform; amend KRS 154.24-010 to include new definitions of the Kentucky Jobs Development Act (KJDA); amend KRS 154.24-090 to change the minimum employment required for a project from 25 to 15 full-time jobs; establish wage and benefit standards under this program; amend KRS 154.24-110 to allow the authority to consent to assessments by an affiliate; amend KRS 154.24-120 and 154.24-140 to conform; amend KRS 154.28-010 to include new definitions of the Kentucky Industrial Development Act (KIDA); amend KRS 154.28-080 to establish wage and benefit standards under this program; amend KRS 154.28-090 to delete references to financing agreement and add tax incentive agreement; and require company recovery of inducements based on actual investment not on debt service; amend KRS 154.28-110 to allow the authority to consent to assessments by an affiliate; create a new section of Subchapter 28 of KRS 154 to allow current projects to be subject to current law and not the provisions of this Act; amend KRS 141.370 to conform; and to repeal various sections of the existing TIF statutes in KRS Chapter 65, KRS 154.22-090 and 154.28-120.
HB 602 - AMENDMENTS
HCS - Retain original provisions; amend KRS 65.6851 to provide that a governing body establishing a development area that does not include Commonwealth revenues may impose an assessment against employee wages in the development area in an amount of up to 2% of gross wages, to be credited against an employee’s local occupational license fee, if existing and not otherwise used as a credit against a job development assessment fee imposed under KEOZ, KJDA, or KIRA, for manufacturing and service or technology projects; amend KRS 65.6853 to provide that the total assessment against employees, whose wages are assessed for local tax increment financing together with KEOZ, KJDA, or KIRA shall not exceed six percent (6%), and that the assessment due to a governing body shall not exceed the lesser of two percent (2%) or the difference between two percent (2%) and the local occupational license fee used as a credit against the job development assessment fee granted under KEOZ, KJDA, or KIRA; amend KRS 65.684, KRS 65.6855, KRS 65.688, 65.692, and KRS 65.696 to conform for development areas that do not include Commonwealth revenues; amend KRS 154.20-010 to provide that a majority vote of the KEDFA members present at a duly held meeting is required for committee action; and amend KRS 154.22-040 to provide that regional industrial parks established under the LGEDF program that cross KREDA and KIDA county lines are KREDA qualified.
HFA (1, T. Pullin) - Amend KRS 154.22-010 to require regional industrial parks which lie within 2 or more counties to base wage and benefit requirements for KREDA on the lowest average county hourly wage in the park.
HFA (2, C. Geveden) - Amend KRS 154.22-010 to allow economic development projects to be eligible for KREDA if they are undertaken in industrial parks which are created by local industrial development authorities and if two or more of the participating counties are KREDA qualified.
HFA (3, T. Pullin) - Amend KRS 154.22-010 to require that regional industrial parks which lie in two counties that are KREDA eligible, calculate the wage and benefit based on averaging the average county hourly wage for all counties within the park.
HFA (4, R. Wilkey) - Require that a development area for infrastructure development consist of 50 acres instead of 100 acres unless approved otherwise by the KEDFA; amend KRS 154.22-010 to allow an economic development project to receive KREDA benefits if it is in an industrial park created under a interlocal agreement in which revenues are shared and if part of the park lies in a qualified county; require regional industrial parks which lie within 2 or more counties to base wage and benefit requirements for KREDA on the average of the average county hourly wage in the park.
HFA (5, J. Fischer) - Amend KRS 154.45-050 to extend the Enterprise Zone Program for an additional ten years beyond the current twenty year designation.
HFA (6, B. Smith) - Decrease the base hourly wage requirement from 150% to 125% of the federal minimum wage for KREDA and KJDA.
HFA (7, B. Smith) - Exempt health care services from the calculation of average hourly wage for KREDA and KJDA.
HFA (8, R. Damron) - Retain original provisions; amend to add an agency to those who can issue increment bonds; amend to add a definition of project costs; amend to change acceptable developments under KRS 65.6851 to those activities under the definition of project rather than limiting them to manufacturing and service technology projects.
SFA (1, D. Adams) - Retain original provisions; amend KRS 154.22-040 to extend KREDA assistance to companies for a second year, rather than one year, following the year in which the authority decertified a county.
SFA (2, D. Adams) - Amend KRS 154.26-010 to change the definition of "eligible company" to include any other entity either individually or with its affiliates and to allow contracts for annual delivery of four million tons of coal.
Feb 6-introduced in House
Feb 7-to Economic Development (H)
Feb 12-posted in committee
Feb 21-reported favorably, 1st reading, to Calendar with Committee Substitute
Feb 22-2nd reading, to Rules
Feb 25-floor amendment (1) filed to Committee Substitute
Feb 26-floor amendment (2) filed to Committee Substitute
Feb 27-posted for passage in the Regular Orders of the Day for Thursday, February 28, 2002; floor amendment (1) withdrawn ; floor amendment (3) filed to Committee Substitute
Feb 28-floor amendments (4) and (5) filed to Committee Substitute
Mar 4-floor amendments (6) (7) and (8) filed to Committee Substitute
Mar 5-floor amendment (2) withdrawn
Mar 6-3rd reading, passed 85-11 with Committee Substitute, floor amendments (4) (7) and (8)
Mar 7-received in Senate
Mar 12-to Economic Development, Tourism & Labor (S)
Mar 13-floor amendments (1) and (2) filed
Mar 26-taken from committee; laid on clerk's desk; 1st reading, to Calendar
Mar 27-2nd reading, to Rules; recommitted to Economic Development, Tourism & Labor (S)