SB581 Summary

• Creates the "Local Job Creation, Job Expansion, and Economic Development Act of 2017" (Chapter 176) allowing municipalities and counties to obtain and appropriate money for economic development projects and services.

• Requires governing bodies to review an economic impact and cost-benefit analysis before entering contracts for projects exceeding $100,000, with analysis paid by the governing body.

• Limits annual economic development appropriations to 5% of a municipality's or county's unobligated general revenue and reserves from the previous fiscal year, unless a financial forecast is obtained for projects exceeding this threshold.

• Mandates economic development contracts include specific criteria, public purpose statements, recapture provisions requiring quarterly reports, and cannot exceed one year without a public finding that multiple years are necessary.

• Exempts from restrictions: federal and state grants, revenue bonds under Amendment 65, capital improvement bonds under Amendment 62, interlocal agreements, and projects already underway on January 1, 2017.