SB 626 — AN ACT ESTABLISHING AN ENTERPRISE ZONE IN THE TOWN OF PLYMOUTH.

Senate General Assembly SubstituteFile Bill No.

626232 January Session, 2021 ANSubstitute ACTSenate ESTABLISHINGBill ANNo. ENTERPRISE ZONE IN THE TOWN OF PLYMOUTH.

626 Senate, March 31, 2021 The Committee on Commerce reported through SEN.

HARTLEY of the 15th Dist., Chairperson of the Committee on the part of the Senate, that the substitute bill ought to pass.

AN ACT ESTABLISHING AN ENTERPRISE ZONE IN THE TOWN OF PLYMOUTH.

Such municipalities shallsSB626 be/ inFile differentNo. counties.

If232 the1 commissionersSB626 approvesFile the designation of an area of a municipality as an enterprise zone because of a plant closure in the municipality and there is a closure of another plant in any other municipality in the state by the same business, the commissioner shall also designate an area in such other municipality as LCO \\PRDFS1\SCOUSERS\FORZANOF\WS\2021SB-00626-R01 of 4 SB.docx Substitute Bill No.

626232 anshall enterprisebe zone.in different counties.

If the commissioner approves the designation of an area of a municipality as an enterprise zone because of a plant closure in the municipality and there is a closure of another plant in any other municipality in the state by the same business, the commissioner shall also designate an area in such other municipality as an enterprise zone.

In making his determination, the commissioner may also consider the vacancy rates for commercial and industrial facilities in a municipality and a municipality's program for thesSB626 implementation/ ofFile anNo. effective enterprise zone program.

232 2 sSB626 File No.

232 the implementation of an effective enterprise zone program.

(C) Notwithstanding the provisions of subsection (a) of this section, municipalities that were not distressed municipalities LCOunder {\\PRDFS1\SCOUSERS\FORZANOF\WS\2021SB-00622the provisions of 4subsection R02-SB.docx(b) }of Substitutesection Bill32-9p No.on February 1, 1986, shall be eligible to designate areas as enterprise zones under subparagraph (A) or (B) of this subdivision.

626 under the provisions of subsection (b) of section 32-9p on February 1, 1986, shall be eligible to designate areas as enterprise zones under subparagraph (A) or (B) of this subdivision.

(4) On or after July 1, 2021, the commissioner shall approve the designation of one area as an enterprise zone, which shall be in a municipalitysSB626 with/ aFile population of not less than twelve thousand two hundred and not more than twelve thousand three hundred, having a total area of not more than 22.34 square miles and having an average population density of not more than 559.3 persons per square mile of LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2021SB-00623 of 4 R02-SB.docx } Substitute Bill No.

626232 land,3 assSB626 enumeratedFile inNo. the 2010 federal decennial census.

232 municipality with a population of not less than twelve thousand two hundred and not more than twelve thousand three hundred, having a total area of not more than 22.34 square miles and having an average population density of not more than 559.3 persons per square mile of land, as enumerated in the 2010 federal decennial census.

Section 1 July 1, 2021 32-70(c) StatementsSB626 of/ LegislativeFile Commissioners:No.

232 4 sSB626 File No.

232 Statement of Legislative Commissioners:

LCOCE {\\PRDFS1\SCOUSERS\FORZANOF\WS\2021SB-00626-4Joint ofFavorable 5Subst. R02-SB.docx } Substitute Bill No.

626-LCO CEsSB626 Joint/ FavorableFile Subst.No.

-LCO232 LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2021SB-00626- 5 ofsSB626 5File R02-SB.docxNo. }

232 The following Fiscal Impact Statement and Bill Analysis are prepared for the benefit of the members of the General Assembly, solely for purposes of information, summarization and explanation and do not represent the intent of the General Assembly or either chamber thereof for any purpose.

In general, fiscal impacts are based upon a variety of informational sources, including the analyst’s professional knowledge.

Whenever applicable, agency data is consulted as part of the analysis, however final products do not necessarily reflect an assessment from any specific department.

OFA Fiscal Note State Impact:

Agency Affected Fund-Effect FY 22 $ FY 23 $ Policy & Mgmt., Off.

GF - Cost None See Below Note:

GF=General Fund Municipal Impact:

Municipalities Effect FY 22 $ FY 23 $ Plymouth Grand List None See Below Reduction Plymouth Revenue None See Below Gain Explanation The bill designates the Town of Plymouth as an Enterprise Zone, which entitles certain businesses within the zone to certain corporate and property tax breaks.

There is a potential grand list reduction to Plymouth due to multiple five-year property tax breaks of between 40% and 80%, depending on the type of business, and type of investment undertaken.

This potential grand list reduction results in a revenue loss, given a constant mill rate.

Dueto thetiming ofgrandlist assessments,any revenue losswould first occur in FY 23.

Any revenue loss to Plymouth resulting from these exemptions is partially offset by the Distressed Municipalities grant program, which reimburses municipalities for 50% of the tax loss resulting from these exemptions, for a five-year period.

The bill results in an increased cost to OPM to fully fund the grant program, which will vary based on the revenue loss claimed by the Town of Plymouth.

While the grant is sSB626 / File No.

232 6 sSB626 File No.

232 proportionately reduced when the appropriation or bond authorization is insufficient for full funding, the grant is currently fully funded.

1 The Out Years The annualized ongoing fiscal impact identified above would continue into the future subject to any grand list reductions experienced by the Town of Plymouth as a result of any Enterprise Zone property tax exemptions.