LOC News
LOC Opposes Economic Development Bills
Two economic development bills related to local discretionary programs had public hearings this week in the Joint Committee on Tax Expenditures:
HB 2199 A – Enterprise Zones
The LOC testified in opposition to HB 2199 A because of concern that the proposed changes to enterprise zones would weaken the incentive and make it no longer useful as an economic development tool for cities. The bill currently includes a 5-year extension of the program, which was amended from the 10-year extension in the base bill. Although it has an extension, which the LOC has been advocating for since well before the start of the legislative session, the LOC is committed to working on the proposed policy changes so the effectiveness of the incentive remains as intact as possible. A summary of the bill can be found here.
HB 3457 A – Strategic Investment Program/Gain-Share
The LOC also testified in opposition to HB 3457 A because of similar concerns that proposed changes limit the scope of how local governments can use the incentive and narrow the range of possibilities for attracting economic growth and high-wage jobs. The bill introduces uncertainty to the program by adding a sunset to Strategic Investment Program (SIP) agreements, which has not previously had a sunset. Due to the nature of the high-capital investments attracted by SIP agreements, it’s important for local governments to understand the long-term availability of the program.
Contact: Lindsay Tenes, Lobbyist – ltenes@orcities.org
Last Updated 5/26/23