HB 549/FN (BR 1333) - L. Clark, J. Draud, S. Brinkman, T. Firkins, C. Hoffman, J. Hoover, D. Horlander, J. Jenkins, D. Keene, T. Kerr, C. Miller, D. Pasley, T. Riner, A. Simpson, K. Stein, T. Thompson, R. Weston, A. Wuchner
AN ACT relating to tax increment financing and urban redevelopment.
Create new sections of KRS Chapter 65 to establish the public purpose of tax increment financing; define terms; provide for the establishment and amendment of local development areas and development areas; identify funding sources for local governments; permit the issuance of increment bonds by local governments; require a sinking fund; establish requirements for local participation agreements; establish the State Tax Increment Financing Commission; establish the Commonwealth Participation Program for Real Property Ad Valorem Tax Revenues and the Commonwealth Participation Program for State Tax Revenues and provide application procedures and requirements for both programs; establish requirements for project grant agreements; provide for the monitoring and oversight of project grant agreements; provide for the payment and release of incremental revenues; limit the provisions of KRS 65.490 to 65.499 to development areas established prior to the effective date of the Act except allow the provisions to apply for projects that meet specified conditions; limit the provisions of KRS 65.680 to 65.699 to development areas that have been established and agreements that have been executed prior to the effective date of the Act; amend KRS 132.012 to conform; amend KRS 131.020 to establish the Division of Tax Increment Financing within the Department of Revenue.
HB 549 - AMENDMENTS
HCS/FN - Retain original provisions; add additional state participation program for mixed use redevelopment in blighted urban areas and establish parameters for participation under the program; attach the provisions of HB 393 with amendments; make technical corrections.
HCA (1/Title, H. Moberly Jr) - Make title amendment.
HFA (1, J. Stacy) - Amend a new section created in KRS Chapter 65 to provide that a director of an area development district that is primarily rural shall serve on the State Tax Increment Financing Commission.
HFA (2, A. Simpson) - Retain original provisions; amend Section 5 of the Act to include additional findings that must be made by local governments to establish a development area; amend the real property ad valorem tax program to remove minimum investment requirements; amend the participation program for mixed use redevelopment in blighted urban areas to reduce the minimum investment required from $35 million to $20 million.
HFA (3, J. Wayne) - Delete provisions that permitted the transient room tax generated from within a qualifying development area to be used to support a project within the development area; permit a levy of an additional transient room tax within the development area to support a project within the development area; delete Section 29 of the bill amending KRS 91A.390.
HFA (4, J. Wayne) - Amend Section 28 of the bill to delete language that permits funds generated from the transient room tax to be used to support a qualifying project in a qualifying development area; delete Section 29 of the bill amending KRS 91A.390.
HFA (5, D. Floyd) - Retain original provisions; amend Section 1 by deleting the first subsection.
SCS - Retain original provisions; add definitions for "approved public infrastructure costs," "approved signature costs," and "financing costs"; provide that the 20 percent limitation on the real property tax base that can be in a development area be measured at the time the development area is established; amend the real property tax program to require a $10 million minimum investment; limit permissible recovery to 100 percent of public infrastructure costs; amend the mixed use urban redevelopment program to limit permissible recovery to up to 100 percent of public infrastructure costs and up to 100 percent of expenses for land preparation, demolition, and clearance necessary for the development to occur; establish the signature project program for investments of more than $200 million and allow recovery of up to 100 percent of public infrastructure costs, signature project costs, and financing costs; establish requirements and conditions for the signature project program; amend the sales tax refund provisions to limit recovery to the sales tax on the portions not included in the project grant agreement; declare an emergency.
SCA (1/Title, C. Borders) - Make title amendment.
Feb 20-introduced in House; to Appropriations & Revenue (H); posting waived
Feb 27-reported favorably, 1st reading, to Calendar with Committee Substitute, committee amendment (1-title)
Feb 28-2nd reading, to Rules; posted for passage in the Regular Orders of the Day for Thursday, March 1, 2007; floor amendments (1) (2) (3) and (4) filed to Committee Substitute
Mar 1-floor amendment (5) filed to Committee Substitute ; 3rd reading; floor amendment (3) rejected ; passed 79-13 with Committee Substitute, committee amendment (1-title), floor amendments (1) and (2)
Mar 2-received in Senate
Mar 5-to Appropriations & Revenue (S)
Mar 7-taken from committee; 1st reading; returned to Appropriations & Revenue (S)
Mar 8-taken from committee; 2nd reading; returned to Appropriations & Revenue (S)
Mar 12-reported favorably, to Rules with Committee Substitute, committee amendment (1-title) ; posted for passage in the Regular Orders of the Day for Monday, March 12, 2007; 3rd reading, passed 35-1 with Committee Substitute, committee amendment (1-title) ; received in House; posted for passage for concurrence in Senate Committee Substitute, committee amendment (1-title) ; House concurred in Senate Committee Substitute, committee amendment (1-title) ; passed 85-1; enrolled, signed by each presiding officer; delivered to Governor
Mar 23-signed by Governor (Acts Ch. 95)