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Senate committee advances bill to add guardrails for enterprise zones, adds sunset and executive approval
Summary
House Bill 1129 (LC 44-35-21 ECS) was presented on behalf of the governor to tighten rules for enterprise zones: require executive approval for a state sales-and-use tax exemption, cap four zones per urban redevelopment area, require a $400 million minimum capital investment for transformational projects, and restrict revenue-bond principal use. The committee adopted an amendment and approved the bill 7–1.
A Senate Finance Committee advanced House Bill 1129, a measure the governor supports to add guardrails to the state’s enterprise-zone program.
Calvin Sorbey, deputy director of policy for the governor’s office, presented the bill (LC 44-35-21 ECS). He said the legislation "clarifies the specific authority of the DCA commissioner" to nominate and designate enterprise-zone areas under code section 36-88-6, provides for executive-branch approval to exempt state sales and use tax, caps at four the number of enterprise zones that may simultaneously exist in an urban redevelopment area and bars using revenue bond principal to return capital investment to project investors.
Committee members pressed for details. Senators noted the bill targets large, transformational projects: it requires a minimum capital investment of about $400 million for eligible redevelopment projects, and sponsors confirmed bonds tied to these zones are typically long-term (about 30 years). Sorbey and members explained that the state and local sales-and-use taxes would be waived and an enterprise-zone infrastructure fee, equal to the waived amount, would be collected and dedicated to local bond repayment.
Members questioned geographic caps and certification mechanics. Senator Orrock and others sought to confirm whether the cap of four zones applied statewide or per certified urban redevelopment area; Sorbey said it is four per each urban redevelopment area, not a statewide cap. Several senators noted that only three enterprise zones currently exist in the state (all in the city of Atlanta) and that other cities could potentially qualify if they meet the statute’s criteria.
The committee considered and adopted an amendment to add a sunset (July 1, 2031) for new executive approvals and to make clear that projects approved by that date would retain the designation and existing tax-exemption treatment for the life of their bond financing. After debate and amendment, the committee voted to advance the bill as amended with a recorded tally of 7–1.
The bill now moves to the full Senate with Senator Bo Hatchett listed as the Senate sponsor in committee proceedings.
