AB 968

This bill authorizes the governor to award a grant or loan to a political

subdivision for infrastructure improvements specified in the bill for development

projects that will create new jobs.

Under the bill, the governor may award a grant or loan for any of the following:

1) a project that involves a $10,000,000 private investment and creates at least 100

new jobs, as defined in the bill; 2) a project located in a political subdivision with a

population less than 100,000 that involves a $5,000,000 private investment and

creates at least 50 new jobs; or 3) a project located in a political subdivision with a

population less than 50,000 that involves a $2,500,000 private investment and

creates at least 25 new jobs. At least one-quarter of the total amount of grant and

loan moneys awarded in a fiscal biennium must be awarded to political subdivisions

with unemployment rates that are higher than the statewide average

unemployment rate, and at least one-quarter must be awarded to political

subdivisions with populations of 35,000 or less. However, the governor may award

a grant or loan notwithstanding the investment and job creation requirements or the

one-quarter minimums for certain political subdivisions if the Joint Committee on

Finance fails to schedule a hearing on the governor's proposal within five days or

approves the proposal after a hearing.

The bill requires a political subdivision that receives a grant or loan to enter

into a contract with the business for whose benefit the grant or loan has been

awarded that specifies a deadline for securing the private investment and creating

the new jobs. A political subdivision may grant an extension of the deadline of up

to 15 days, but a business that fails to meet the deadline must repay a prorated

portion of the grant or loan.

The governor, with the advice of the Department of Commerce (department),

must develop guidelines and criteria for grants and loans that encourage the award

of grants and loans throughout the state and set a cap on the amount of grants. The

department assists the governor in reviewing applications and monitors contract

compliance.

Awards under the bill come from a new segregated fund, the Governor's

Opportunity Fund, which consists of moneys transferred from a new sum certain

appropriation created in the general fund and of repayments of grants and loans

under the program.