Bill No.
14 -12
Concerning: Economic
Development
Fund - Amendments
Revised: September 11. 2012 Draft No.
L
Introduced:
March 20.2012
Enacted:
September 18. 2012
Executive:
September 20.2012
Effective:
December 20. 2012
Sunset Date: _N:..:,o=n.:..::e'--_ _ _ _ __
Ch.~.
Laws of Mont. Co.
2012
COUNTY COUNCIL
FOR MONTGOMERY COUNTY, MARYLAND
By: Council President Berliner and Council members Riemer, Ervin, EIrich, Leventhal, Navarro,
and Rice
AN
ACT to:
(1)
(2)
(3)
(4)
require the Executive to propose and update an economic development strategic plan
for the County, subject to Council approval;
establish criteria for offers of financial assistance from the Economic Development
Fund that promote the County's approved economic development strategic plan;
require the Council to approve certain offers of assistance from the Economic
Development Fund; and
generally amend the County economic development laws.
By amending
Montgomery County Code
Chapter 20, Finance
Sections 20-75 and 20-76
Boldface
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[Single boldface brackets]
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[[Double boldface brackets
D
Heading or defined term.
Added to existing law by original bill.
Deletedfrom existing law by original bill.
Added by amendment.
Deletedfrom existing law or the bill by amendment.
Existing law unaffected by bill.
* * *
The County Council for Montgomery County, Maryland approves the following Act:
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BILL
No. 14-12
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Sec. 1. Sections 20-75 and 20-76 are amended as follows:
20-75. Use of Fund.
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(a)
The Director may spend or allocate funds from this Fund consistent
with the economic development strategic plan approved under Section
20-76 [[and on the basis of criteria defined]] in a Regulation adopted
under method (1), including the following criteria:
(1)
the proposed assistance will materially improve the County's
economy and advance County economic development objectives
and strategies; or
(2) the assistance is necessary to:
(A) bring a significant number of new jobs to the County;
(B) add a significant number of new jobs to an existing
operation in the County;
(C) retain a significant number of jobs at an existing operation
in the County or
(D) respond to other economic development objectives.
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(b) The Director must provide the Council with all fiscal analyses and other
supporting documents for any proposed offer of assistance to
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private
employer valued at more than $100,000. The supporting documents
must include:
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the name, industry, location, employee compensation profile, and
estimated current and future taxes paid
.by
the prospective
recipient;
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the estimated employment and tax revenue gains resulting from
the proposed assistance;
each assumption, variable, and model used to generate estimates
of employment and tax revenue gains;
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BILL
No. 14-12
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the number of new residents estimated to move into the County
resulting from gains in employment
.by
the proposed recipient;
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the number and cost of new students estimated to enroll
County public schools;
In
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an analysis of how the proposed assistance supports the overall
goals of the economic development strategy; and
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offers, if any, made
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or expected from other competing
jurisdictions.
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W
The Executive must notify the Council at least [2]
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working days
before the Executive tentatively offers assistance valued at more than
$100,000 to a private employer, including all fiscal analyses and other
supporting documents described in subsection
(hl.
During a Council
recess of one week or longer, the Executive must notify the Council at
least [5] 10 working days before the Executive tentatively offers
assistance valued at more than $100,000 to a private employer.
If
during either notice period the Council President notifies the Executive
that more time is necessary for the Council to [comment] review the
tentative offer, the Executive must wait an additional [2]
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working days
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(or [5] 10 working days during a Council recess) before [offering]
making
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tentative offer of assistance to the private employer.
[(c)]
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The [[Council]] Executive must [[approve each]] not provide
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[[offer oil] assistance to
private employer valued at more than
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$500,000 unless the grant or loan is approved by the Council in a
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or
supplemental appropriation. The amount of any discount
part of the
The
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from market value in the sale of County property offered
assistance must be included in the value of the assistance.
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BILL NO.
14-12
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Executive must submit an economiC development agreement to the
Council within 60 days after all parties to the agreement execute it.
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The notice required under subsection [(b)] (£) must also specify the
proposed terms of any assistance offered, including any repayment
provisIons.
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[(d)]
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Unless expressly inconsistent with any other federal,
state, or County
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law, the terms of any assistance from the Fund must require the
recipient to meet certain performance criteria specified in the offer of
assistance, including a repayment agreement unless the Executive
[describes] justifies why repayment of assistance is not required.
[(e)]
(g}
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*
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*
20-76. Economic Development Stratee:ic Plan, Administration.
(a)
The Executive must submit.! by method 1 regulation.
[@
proposed]]
economic development strategic plan for the County to the Council for
approval on or before July
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[[Qf]]
each [[even numbered]]
fourth year thereafter. [[The Council may amend the proposed strategic
plan and must approve
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final strategic plan
Qy
resolution.]]
The
success or progress of the strategic plan must be measurable and
plan must include measures to address:
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(Q)
job creation;
private sector compensation and benefits;
target industries;
target geographic areas;
workforce education and training;
growth in tax base;
economic opportunity for residents;
encouragement of entrepreneurs and small business;
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m
([)
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BILL No. 14-12
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(2)
land use; and
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.QQ) other actions necessary to promote economic development in the
County.
(hl
The Executive may adopt Regulations under method
(1)
to administer
this Fund.
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[(b)]
(£}
The Executive must report by March 15 each year on the status and
use of the Fund.
This report can be included in the Executive's
proposed operating budget The annual report must:
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describe the success of each award of financial assistance in
satisfying the economic development goals supporting the
assistance;
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identify any assistance agreement where the recipient did not
satisfy the performance criteria in the agreement; and
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track the progress of the Fund in satisfying the overall goals of
the approved economic development strategic plan.
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Sec. 2. Transition.
The County Executive must submit the initial [[proposed]]
economic development strategic plan to the Council for
approval not later than 180 days after this Act becomes law. In addition to the
requirements of 20-76(a), the initial proposed economic development strategic plan
must:
(a)
(b)
(c)
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analyze the County's economic development structure;
compare the County's structure with peer jurisdictions;
identify and analyze different alternative government and non­
government entities that could perform each core function of economic
development;
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Bill
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14-12
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(d)
detennine the total amount of public and private money spent in each
peer jurisdiction to achieve current levels of service; and
(
e)
recommend changes, if appropriate, to the County's structure.
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r;,o/2,
Date
Approved:
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I~egge~~
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This is a correct copy ofCouncil action.
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A-/h.
y'D/Jill.
b
(
Date'
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Linda M. Lauer, Clerk of the Council
C;jzL//;-Z-
Date
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