HB1685--WORKFORCEDEVELOPMENT
SPONSOR: Black(137)
Thisbillestablishesthe"TargetedIndustrialManufacturing
EnhancementZonesAct".
Thebillallowsanytwoormorecontiguousoroverlappingpolitical
subdivisions,asdefinedinthebill,tocreateTargetedIndustrial
ManufacturingEnhancement(TIME)zonesforthepurposeof
completinginfrastructure projectstopromoteeconomicdevelopment.
PriortothecreationofaTIMEzone,eachpoliticalsubdivision
mustproposeanordinanceorresolutionthatsetsforththenames
ofthepoliticalsubdivisionswhichwillformthezone,thegeneral
natureoftheproposedimprovements,theestimatedcostofsuch
improvements,theboundariesoftheproposedTIMEzone,andthe
estimatednumberofnewjobstobecreatedintheTIMEzone.The
politicalsubdivisionsmustholdapublichearingpriorto
approvingtheordinanceorresolutioncreatingtheTIMEzone.
ThisbillallowstheZoneBoardgoverningtheTIMEzonetoretain
25%ofwithholdingtaxesonnewjobscreatedwithintheTIMEzone
tofundimprovementsmadeintheTIMEzone.Priortoretaining
suchwithholdingtaxes,theZoneBoardmustenterintoanagreement
withtheDepartmentofEconomicDevelopment. Theagreementmust
includetheestimatednumberofnewjobstobecreated,the
estimatedaveragewageofnewjobstobecreated,theestimatednet
fiscalimpactofthenewjobs,theestimatedcostsofimprovements,
andtheestimatedamountofwithholdingtaxtoberetainedoverthe
periodoftheagreement. TheDepartmentwillnotapprovean
agreementunlesstheZoneBoardcommitstothecreationofa
certainnumberofnewjobs,asdescribedinthebill.
Thetermofsuchagreementwillnotexceed10years.AZoneBoard
mayapplytotheDepartmentofEconomicDevelopmentforapprovalto
renewanyagreement. Indeterminingwhethertoapprovetherenewal
ofanagreement,theDepartmentwillconsiderthenumberofnew
jobscreatedandtheaveragewageandnetfiscalimpactofsuchnew
jobs,andtheoutstandingimprovementstobemadewithintheTIME
zone,thefundingnecessarytocompletesuchimprovements,andany
otherfactortheDepartmentrequires. TheDepartmentmayapprove
therenewalofanagreementforaperiodnottoexceed10years.
IfaZoneBoardhasnotmetthenewjobcreationrequirementsby
theendoftheagreement,theDepartmentwillrecapturethe
withholdingtaxesretainedbytheZoneBoard.
TheZoneBoardmustsubmitanannualreporttotheDepartmentand
totheGeneralAssembly,asdescribedinthebill. NopoliticalsubdivisionwillestablishaTIMEzonewithboundaries
thatoverlaptheboundariesofanAdvancedIndustrialManufacturing
(AIM)zone.
ThetotalamountofwithholdingtaxesretainedbyTIMEzonesunder
thisbillmustnotexceed$5millionperyear.
NonewTIMEzonewillbecreatedafterAugust28,2025.
ThisbillissimilartoHCSHB379(2021).