Introduced Version
Senate Bill 189 History
| 
Email
Key: Green = existing Code. Red = new code to be enacted
Senate Bill No. 189
(By Senators Kessler (Mr. President) and M. Hall,
By Request of the Executive)
____________
[Introduced February 15, 2013; referred to the Committee on
Economic Development; and then to the Committee on Finance .]
____________
A BILL to amend and reenact §7-22-7 of the Code of West Virginia,
1931, as amended; and to amend and reenact §8-38-7 of said
code, all relating to changing the capital investment
threshold amount from more than $25 million to more than $75
million for development expenditures proposed to be made in
county economic opportunity development districts and in
municipal economic opportunity development districts in the
first twenty-four months following their creation; changing
the capital investment threshold amount from more than $25
million to more than $75 million for remediation expenditures
to be made in county economic opportunity development
districts and in municipal economic opportunity development
districts in the first forty-eight months following their creation; and making other technical corrections.
Be it enacted by the Legislature of West Virginia:
That §7-22-7 of the Code of West Virginia, 1931, as amended,
be amended and reenacted; and that §8-38-7 of said code be amended
and reenacted, all to read as follows:
CHAPTER 7. COUNTY COMMISSIONS AND OFFICERS.
ARTICLE 22. COUNTY ECONOMIC OPPORTUNITY DEVELOPMENT DISTRICTS.
§7-22-7. Application to Development Office for approval of an
economic opportunity development district project.
(a) General. -- The Development Office shall receive and act
on applications filed with it by county commissions pursuant to
section six of this article. Each application must include:
(1) A true copy of the notice described in section six of this
article;
(2) The total cost of the project;
(3) A reasonable estimate of the number of months needed to
complete the project;
(4) A general description of the capital improvements,
additional or extended services and other proposed development
expenditures to be made in the district as part of the project;
(5) A description of the proposed method of financing the
development expenditures, together with a description of the reserves to be established for financing ongoing development
expenditures necessary to permanently maintain the optimum economic
viability of the district following its inception: Provided, That
the amounts of the reserves may not exceed the amounts that would
be required by prevailing commercial capital market considerations;
(6) A description of the sources and anticipated amounts of
all financing, including, but not limited to, proceeds from the
issuance of any bonds or other instruments, revenues from the
special district excise tax and enhanced revenues from property
taxes and fees;
(7) A description of the financial contribution of the county
commission to the funding of development expenditures;
(8) Identification of any businesses that the county
commission expects to relocate their business locations from the
district to another place in the state in connection with the
establishment of the district or from another place in this state
to the district: Provided, That for purposes of this article, any
entities shall be designated "relocated entities";
(9) Identification of any businesses currently conducting
business in the proposed economic opportunity development district
that the county commission expects to continue doing business there
after the district is created;
(10) A good faith estimate of the aggregate amount of
consumers sales and service tax that was actually remitted to the
Tax Commissioner by all business locations identified as provided
in subdivisions (8) and (9) of this subsection with respect to
their sales made and services rendered from their then current
business locations that will be relocated from, or to, or remain in
the district, for the twelve full calendar months next preceding
the date of the application: Provided, That for purposes of this
article, the aggregate amount is designated as "the base tax
revenue amount";
(11) A good faith estimate of the gross annual district tax
revenue amount;
(12) The proposed application of any surplus from all funding
sources to further the objectives of this article;
(13) The Tax Commissioner's certification of: (i) The amount
of consumers sales and service taxes collected from businesses
located in the economic opportunity district during the twelve
calendar months preceding the calendar quarter during which the
application will be submitted to the Development Office; (ii) the
estimated amount of economic opportunity district excise tax that
will be collected during the first twelve months after the month in
which the Tax Commissioner would first begin to collect that tax; and (iii) the estimated amount of economic opportunity district
excise tax that will be collected during the first thirty-six
months after the month in which the Tax Commissioner would first
begin to collect that tax; and
(14) Any additional information the Development Office may
require.
(b) Review of applications. -- The Development Office shall
review all project proposals for conformance to statutory and
regulatory requirements, the reasonableness of the project's budget
and timetable for completion and the following criteria:
(1) The quality of the proposed project and how it addresses
economic problems in the area in which the project will be located;
(2) The merits of the project determined by a cost-benefit
analysis that incorporates all costs and benefits, both public and
private;
(3) Whether the project is supported by significant private
sector investment and substantial credible evidence that, but for
the existence of sales tax increment financing, the project would
not be feasible;
(4) Whether the economic opportunity district excise tax
dollars will leverage or be the catalyst for the effective use of
private, other local government, state or federal funding that is available;
(5) Whether there is substantial and credible evidence that
the project is likely to be started and completed in a timely
fashion;
(6) Whether the project will, directly or indirectly, improve
the opportunities in the area where the project will be located for
the successful establishment or expansion of other industrial or
commercial businesses;
(7) Whether the project will, directly or indirectly, assist
in the creation of additional long-term employment opportunities in
the area and the quality of jobs created in all phases of the
project, to include, but not be limited to, wages and benefits;
(8) Whether the project will fulfill a pressing need for the
area, or part of the area, in which the economic opportunity
district is located;
(9) Whether the county commission has a strategy for economic
development in the county and whether the project is consistent
with that strategy;
(10) Whether the project helps to diversify the local economy;
(11) Whether the project is consistent with the goals of this
article;
(12) Whether the project is economically and fiscally sound using recognized business standards of finance and accounting; and
(13) (A) The ability of the county commission and the project
developer or project team to carry out the project: Provided, That
no project may be approved by the Development Office unless the
amount of all development expenditures proposed to be made in the
first twenty-four months following the creation of the district
results in capital investment of more than $25 $75 million in the
district and the county submits clear and convincing information,
to the satisfaction of the Development Office, that the investment
will be made if the Development Office approves the project and the
Legislature authorizes the county commission to levy an excise tax
on sales of goods and services made within the economic opportunity
district as provided in this article.
(B) Notwithstanding any provision of paragraph (A) of this
subdivision to the contrary, no project involving remediation may
be approved by the Development Office unless the amount of all
development expenditures proposed to be made in the first
forty-eight months following the creation of the district results
in capital investment of more than $25 $75 million in the district.
In addition to the remaining provisions of paragraph (A) of this
subdivision the Development Office may not approve a project
involving remediation authorized under section five of this article unless the county commission submits clear and convincing
information, to the satisfaction of the Development Office, that
the proposed remediation expenditures to be financed by the
issuance of bonds or notes pursuant to section sixteen of this
article do not constitute more than twenty-five percent of the
total development expenditures associated with the project.
(c) Additional criteria. -- The Development Office may
establish other criteria for consideration when approving the
applications.
(d) Action on the application. -- The Executive Director of
the Development Office shall act to approve or not approve any
application within thirty days following the receipt of the
application or the receipt of any additional information requested
by the Development Office, whichever is the later.
(e) Certification of project. -- If the Executive Director of
the Development Office approves a county's economic opportunity
district project application, he or she shall issue to the county
commission a written certificate evidencing the approval.
The certificate shall expressly state a base tax revenue
amount, the gross annual district tax revenue amount and the
estimated net annual district tax revenue amount which, for
purposes of this article, is the difference between the gross annual district tax revenue amount and the base tax revenue amount,
all of which the Development Office has determined with respect to
the district's application based on any investigation it considers
reasonable and necessary, including, but not limited to, any
relevant information the Development Office requests from the Tax
Commissioner and the Tax Commissioner provides to the Development
Office: Provided, That in determining the net annual district tax
revenue amount, the Development Office may not use a base tax
revenue amount less than that amount certified by the Tax
Commissioner but, in lieu of confirmation from the Tax Commissioner
of the gross annual district tax revenue amount, the Development
Office may use the estimate of the gross annual district tax
revenue amount provided by the county commission pursuant to
subsection (a) of this section.
(f) Certification of enlargement of geographic boundaries of
previously certified district. -- If the Executive Director of the
Development Office approves a county's economic opportunity
district project application to expand the geographic boundaries of
a previously certified district, he or she shall issue to the
county commission a written certificate evidencing the approval.
The certificate shall expressly state a base tax revenue
amount, the gross annual district tax revenue amount and the estimated net annual district tax revenue amount which, for
purposes of this article, is the difference between the gross
annual district tax revenue amount and the base tax revenue amount,
all of which the Development Office has determined with respect to
the district's application based on any investigation it considers
reasonable and necessary, including, but not limited to, any
relevant information the Development Office requests from the Tax
Commissioner and the Tax Commissioner provides to the Development
Office: Provided, That in determining the net annual district tax
revenue amount, the Development Office may not use a base tax
revenue amount less than that amount certified by the Tax
Commissioner but, in lieu of confirmation from the Tax Commissioner
of the gross annual district tax revenue amount, the Development
Office may use the estimate of the gross annual district tax
revenue amount provided by the county commission pursuant to
subsection (a) of this section.
(g) Promulgation of rules. -- The Executive Director of the
Development Office may promulgate rules to implement the economic
opportunity development district project application approval
process and to describe the criteria and procedures it has
established in connection therewith. These rules are not subject
to the provisions of chapter twenty-nine-a of this code but shall be filed with the Secretary of State.
CHAPTER 8. MUNICIPAL CORPORATIONS.
ARTICLE 38. MUNICIPAL ECONOMIC OPPORTUNITY DEVELOPMENT DISTRICTS.
§8-38-7. Application to Development Office for approval of an
economic opportunity development district project.
(a) General. -- The Development Office shall receive and act
on applications filed with it by municipalities pursuant to section
six of this article. Each application must include:
(1) A true copy of the notice described in section six of this
article;
(2) The total cost of the project;
(3) A reasonable estimate of the number of months needed to
complete the project;
(4) A general description of the capital improvements,
additional or extended services and other proposed development
expenditures to be made in the district as part of the project;
(5) A description of the proposed method of financing the
development expenditures, together with a description of the
reserves to be established for financing ongoing development
expenditures necessary to permanently maintain the optimum economic
viability of the district following its inception: Provided, That
the amounts of the reserves may not exceed the amounts that would be required by prevailing commercial capital market considerations;
(6) A description of the sources and anticipated amounts of
all financing, including, but not limited to, proceeds from the
issuance of any bonds or other instruments, revenues from the
special district excise tax and enhanced revenues from property
taxes and fees;
(7) A description of the financial contribution of the
municipality to the funding of development expenditures;
(8) Identification of any businesses that the municipality
expects to relocate their business locations from the district to
another place in the state in connection with the establishment of
the district or from another place in this state to the district:
Provided, That for purposes of this article, any entities shall be
designated "relocated entities";
(9) Identification of any businesses currently conducting
business in the proposed economic opportunity development district
that the municipality expects to continue doing business there
after the district is created;
(10) A good faith estimate of the aggregate amount of
consumers sales and service tax that was actually remitted to the
Tax Commissioner by all business locations identified as provided
in subdivisions (8) and (9) of this subsection with respect to their sales made and services rendered from their then current
business locations that will be relocated from, or to, or remain in
the district for the twelve full calendar months next preceding the
date of the application: Provided, That for purposes of this
article, the aggregate amount is designated as "the base tax
revenue amount";
(11) A good faith estimate of the gross annual district tax
revenue amount;
(12) The proposed application of any surplus from all funding
sources to further the objectives of this article;
(13) The Tax Commissioner's certification of: (i) The amount
of consumers sales and service taxes collected from businesses
located in the economic opportunity district during the twelve
calendar months preceding the calendar quarter during which the
application will be submitted to the Development Office; (ii) the
estimated amount of economic opportunity district excise tax that
will be collected during the first twelve months after the month in
which the Tax Commissioner would first begin to collect that tax;
and (iii) the estimated amount of economic opportunity district
excise tax that will be collected during the first thirty-six
months after the month in which the Tax Commissioner would first
begin to collect that tax; and
(14) Any additional information the Development Office may
require.
(b) Review of applications. -- The Development Office shall
review all project proposals for conformance to statutory and
regulatory requirements, the reasonableness of the project's budget
and timetable for completion and the following criteria:
(1) The quality of the proposed project and how it addresses
economic problems in the area in which the project will be located;
(2) The merits of the project determined by a cost-benefit
analysis that incorporates all costs and benefits, both public and
private;
(3) Whether the project is supported by significant private
sector investment and substantial credible evidence that, but for
the existence of sales tax increment financing, the project would
not be feasible;
(4) Whether the economic opportunity development district
excise tax dollars will leverage or be the catalyst for the
effective use of private, other local government, state or federal
funding that is available;
(5) Whether there is substantial and credible evidence that
the project is likely to be started and completed in a timely
fashion;
(6) Whether the project will, directly or indirectly, improve
the opportunities in the area where the project will be located for
the successful establishment or expansion of other industrial or
commercial businesses;
(7) Whether the project will, directly or indirectly, assist
in the creation of additional long-term employment opportunities in
the area and the quality of jobs created in all phases of the
project, to include, but not be limited to, wages and benefits;
(8) Whether the project will fulfill a pressing need for the
area, or part of the area, in which the economic opportunity
district is located: Provided, That the Development Office should
consider whether the economic development project is large enough
to require that it contain a mixed use development provision
consisting of a housing component with at least ten percent of
housing units in the district allocated for affordable housing;
(9) Whether the municipality has a strategy for economic
development in the municipality and whether the project is
consistent with that strategy;
(10) Whether the project helps to diversify the local economy;
(11) Whether the project is consistent with the goals of this
article;
(12) Whether the project is economically and fiscally sound using recognized business standards of finance and accounting; and
(13) (A) The ability of the municipality and the project
developer or project team to carry out the project: Provided, That
no project may be approved by the Development Office unless the
amount of all development expenditures proposed to be made in the
first twenty-four months following the creation of the district
results in capital investment of more than $25 $75 million in the
district and the municipality submits clear and convincing
information, to the satisfaction of the Development Office, that
the investment will be made if the Development Office approves the
project and the Legislature authorizes the municipality to levy an
excise tax on sales of goods and services made within the economic
opportunity development district as provided in this article.
(B) Notwithstanding any provision of paragraph (A) of this
subdivision to the contrary, no project involving remediation may
be approved by the Development Office unless the amount of all
development expenditures proposed to be made in the first
forty-eight months following the creation of the district results
in capital investment of more than $25 $75 million in the district.
In addition to the remaining provisions of paragraph (A) of this
subdivision the Development Office may not approve a project
involving remediation authorized under section five of this article unless the municipality submits clear and convincing information,
to the satisfaction of the Development Office, that the proposed
remediation expenditures to be financed by the issuance of bonds or
notes pursuant to section sixteen of this article do not constitute
more than twenty-five percent of the total development expenditures
associated with the project.
(c) Additional criteria. -- The Development Office may
establish other criteria for consideration when approving the
applications.
(d) Action on the application. -- The Executive Director of
the Development Office shall act to approve or not approve any
application within thirty days following the receipt of the
application or the receipt of any additional information requested
by the Development Office, whichever is the later.
(e) Certification of project. -- If the Executive Director of
the Development Office approves a municipality's economic
opportunity district project application, he or she shall issue to
the municipality a written certificate evidencing the approval.
The certificate shall expressly state a base tax revenue
amount, the gross annual district tax revenue amount and the
estimated net annual district tax revenue amount which, for
purposes of this article, is the difference between the gross annual district tax revenue amount and the base tax revenue amount,
all of which the Development Office has determined with respect to
the district's application based on any investigation it considers
reasonable and necessary, including, but not limited to, any
relevant information the Development Office requests from the Tax
Commissioner and the Tax Commissioner provides to the Development
Office: Provided, That in determining the net annual district tax
revenue amount, the Development Office may not use a base tax
revenue amount less than that amount certified by the Tax
Commissioner but, in lieu of confirmation from the Tax Commissioner
of the gross annual district tax revenue amount, the Development
Office may use the estimate of the gross annual district tax
revenue amount provided by the municipality pursuant to subsection
(a) of this section.
(f) Certification of enlargement of geographic boundaries of
previously certified district. -- If the Executive Director of the
Development Office approves a municipality's economic opportunity
district project application to expand the geographic boundaries of
a previously certified district, he or she shall issue to the
municipality a written certificate evidencing the approval.
The certificate shall expressly state a base tax revenue
amount, the gross annual district tax revenue amount and the estimated net annual district tax revenue amount which, for
purposes of this article, is the difference between the gross
annual district tax revenue amount and the base tax revenue amount,
all of which the Development Office has determined with respect to
the district's application based on any investigation it considers
reasonable and necessary, including, but not limited to, any
relevant information the Development Office requests from the Tax
Commissioner and the Tax Commissioner provides to the Development
Office: Provided, That in determining the net annual district tax
revenue amount, the Development Office may not use a base tax
revenue amount less than that amount certified by the Tax
Commissioner, but, in lieu of confirmation from the Tax
Commissioner of the gross annual district tax revenue amount, the
Development Office may use the estimate of the gross annual
district tax revenue amount provided by the municipality pursuant
to subsection (a) of this section.
(g) Promulgation of rules. -- The Executive Director of the
Development Office may promulgate rules to implement the economic
opportunity development district project application approval
process and to describe the criteria and procedures it has
established in connection therewith. These rules are not subject
to the provisions of chapter twenty-nine-a of this code but shall be filed with the Secretary of State.
NOTE: The purpose of this bill is to increase the minimum
capital investment threshold from more than $25 million to more
than $75 million for sales tax increment financing in county and
municipal economic opportunity development districts.
Strike-throughs indicate language that would be stricken from
the present law, and underscoring indicates new language that would
be added.
Webmaster | © 2024 West Virginia Legislature ***
