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COMMITTEE REPORT
May 15, 2003
S. 560
Introduced by Senators Leatherman, Ritchie, Knotts, Grooms, Verdin, Giese, Branton, Mescher, McConnell, McGill, J. Verne Smith, Alexander, Martin, Short, Moore, Ravenel, O'Dell, Drummond, Hayes and Setzler
S. Printed 5/15/03--H. [SEC 5/19/03 2:41 PM]
Read the first time May 6, 2003.
To whom was referred a Bill (S. 560) to enact the South Carolina Life Sciences Act, by defining a life sciences facility and providing that a life sciences facility project in which is invested at least one hundred million dollars, etc., respectfully
That they have duly and carefully considered the same and recommend that the same do pass with amendment:
Amend the bill, as and if amended, by striking all after the enacting words and inserting:
/ SECTION 1. (A) This section may be cited as the South Carolina Life Sciences Act.
(B) For purposes of this section, a "life sciences facility" means a business engaged in pharmaceutical, medicine, and related laboratory instrument manufacturing, processing, or research and development. Included in this definition are the following North American Industrial Classification Systems, NAICS Codes published by the Office of Management and Budget of the federal government:
(1) 3254 Pharmaceutical and Medical Manufacturing;
(2) 334516 Analytical Laboratory Instrument Manufacturing.
(C)(1) For all purposes of Chapter 10, Title 12 of the 1976 Code, the Enterprise Zone Act of 1995, including all definitions applicable to that chapter:
(a) Employee relocation expenses that qualify for reimbursement pursuant to Section 12-10-80(C)(3)(f) of the 1976 Code include such expenses associated with a new or expanded life sciences facility investing a minimum of one hundred million dollars in the project, as defined in Section 12-10-30(8) of the 1976 Code, and creating at least two hundred new full-time jobs at the project with an average annual cash compensation of at least one hundred fifty percent of annual per capita income in this State or the county in which the facility is located, whichever is less. Per capita income must be determined using the most recent per capita income data available as of the end of the taxable year in which the jobs are filled.
(b) The waiver that may be approved by the Coordinating Council for Economic Development pursuant to Section 12-10-80(D)(2) of the 1976 Code on maximum job development credits that may be claimed also may be approved for a life sciences facility meeting the requirements of subitem (a) of this subsection. In determining whether to approve a waiver for such a facility, the Coordinating Council for Economic Development shall consider the creditworthiness of the business and economic viability of the project, as defined in Section 12-10-30(8) of the 1976 Code.
(2) The provisions of item (1) of this subsection apply with respect to capital investment made and new jobs created after June 30, 2004, and before July 1, 2008.
(D) In the case of a taxpayer establishing a life sciences facility meeting the requirements of subsection (C)(1)(a) of this section, the South Carolina Department of Revenue, in its discretion, may enter into an agreement with the taxpayer pursuant to Section 12-6-2320 of the 1976 Code for a period not to exceed fifteen years if the facility otherwise meets the requirements of that section.
SECTION 2. A. Section 12-37-930(34) of the 1976 Code, as last amended by Section 3(Q)2, Act 399 of 2000, is further amended to read:
"34. Use of Clean Rooms ............... 10% 15%
A manufacturer who uses a Class 100 or better clean room, as that term is defined in Federal Standard 209E, in manufacturing its product may elect an annual allowance for depreciation for property tax purposes of ten fifteen percent on clean room modules and associated mechanical systems, and on process piping, wiring environmental systems, and water purification systems associated with the clean room instead of a depreciation allowance for which the manufacturer otherwise is entitled. Included are waffle flooring, wall and ceiling panels, foundation improvements that isolate the clean room to control vibrations, clean air handling and filtration systems, piping systems for fluids and gases used in the manufacturing process and in the clean room that touch the product during the process, flat panel displays, and liquid crystal displays, process equipment energy control systems, ultra pure water processing and wastewater recycling systems, and safety alarm and monitoring systems.
35. Life sciences............................. 20%
Includes machinery and equipment used directly in the manufacturing process by a life sciences facility. For purposes of this item, life sciences facility means a business engaged in pharmaceutical, medicine, and related laboratory instrument manufacturing, processing, or research and development that invests a minimum of one hundred million dollars in the project, as defined in Section 12-10-30(8), and creates at least two hundred new full-time jobs at the project with an average cash compensation level of at least one hundred fifty percent of the annual per capita income in this State or the county in which the facility is located, whichever is less. Per capita income must be determined using the most recent per capita income data available as of the end of the taxable year in which the jobs are filled. Included in this definition are the following North American Industrial Classification Systems, NAICS Codes published by the Office of Management and Budget of the federal government:
(i) 3254 Pharmaceutical and Medical Manufacturing;
(ii) 334516 Analytical Laboratory Instrument Manufacturing."
B. In the case of machinery and equipment otherwise eligible for the depreciation allowed pursuant to Section 12-37-930 of the 1976 Code, as amended in subsection A of this section, if the project with which the machinery and equipment is associated is the subject of an inducement agreement between the project sponsor and the county, the initial inducement agreement must have been entered into between these parties after September 1, 2003.
SECTION 3. A. Chapter 41, Title 11 of the 1976 Code, is amended by adding:
"Section 11-41-45. No economic development bonds shall be issued pursuant to this chapter to defray the cost of research and development facilities unless the research university that shall own the research and development facilities demonstrates to the secretary that it has available funds which shall be applied to defray the cost of the research and development facilities in an amount equal to one-half of the principal amount of the economic development bonds. The matching funds required under this section must be made available as the secretary determines."
B. Section 11-41-20(3) of the 1976 Code, as added by Act 254 of 2002, is amended to read:
"(3) In order to foster economic development and to encourage the creation of high-paying jobs in the life sciences industry and to encourage the creation of research and development facilities for life sciences at research universities within the State, it is in the best interests of the State that the limitation on general obligation debt imposed by Article X, Section 13(6)(c) be increased to five and one-half percent with the additional debt service capacity available at any time as a consequence of the increase available only for the repayment of general obligation bonds issued to provide infrastructure required for significant economic development projects within the State, including those related to the life sciences industry that create high-paying jobs and meet certain investment criteria and to provide for the creation of research and development facilities within the limitations provided in this chapter; and that a designated principal amount of general obligation bonds issued pursuant to the existing debt limit and the debt limit as increased by this section be provided additional constitutional authorization pursuant to Article X, Section 13(5) of the Constitution of this State, 1895."
C. Section 11-41-30 of the 1976 Code, as added by Act 254 of 2002, is amended to read:
"Section 11-41-30. As used in this chapter:
(1) 'Department' means the State Department of Commerce.
(2)(a) 'Economic development project' or 'project' means a project in this State as defined in Section 12-44-30(16) in which a total of at least four hundred million dollars is invested in the project by the sponsor and at least four hundred new jobs are created at the project by the sponsor. To qualify as an economic development project for purposes of this chapter, the investment and job creation requirements must be attained no later than the eighth year after the project first begins operations.
(b) 'Project' also includes a life sciences facility in this State defined as a business engaged in pharmaceutical, medicine, and related laboratory instrument manufacturing, processing, or research and development. Included in this definition are the following North American Industrial Classification Systems, NAICS Codes published by the Office of Management and Budget of the federal government:
(i) 3254 Pharmaceutical and Medical Manufacturing;
(ii) 334516 Analytical Laboratory Instrument Manufacturing.
With respect to a life sciences facility, the sponsor must invest in the project at least one hundred million dollars and create at the project at least two hundred new jobs with an average annual cash compensation level of at least twice the annual per capita income in this State. Per capita income must be determined by using the most recent per capita income data available at the time the request for funding is made pursuant to this chapter.
(c) To qualify as an economic development project under either subitem (a) or (b) of this item for purposes of this chapter, the investment and job creation requirements must be attained no later than the eighth year after the project first begins operations.
(3) 'Infrastructure' must relate specifically to, but is not required to be located at, the economic development project and means:
(a) land acquisition;
(b) site preparation;
(c) road and highway improvements;
(d) rail spur construction;
(e) water service;
(f) wastewater treatment;
(g) employee training which may include equipment used for such purpose;
(h) environmental mitigation; and
(i) training and research facilities and the necessary equipment therefor.
(4) 'Investment' means money expended by the sponsor on capital assets directly related to the economic development project and does not include amounts expended in aid of the project by the State pursuant to this chapter or otherwise, or amounts expended in aid of the project by a county, municipality, or a special purpose district, however financed.
(5) (7) 'New job' means a full-time job created in this State at an economic development project. The term does not include a job created when an employee is shifted from an existing location in this State to a new or expanded facility whether the transferred job is from, or to, a project of the sponsor or a related person. A related person includes any entity or person that bears a relationship to the sponsor as described in Section 267 of the Internal Revenue Code of 1986. Full time means a job requiring a minimum of thirty-five hours of an employee's time a week for the entire normal year of sponsor operations or a job requiring a minimum of thirty-five hours of an employee's time a week for a year if the employee was hired initially for or transferred to the project. Two half-time jobs are considered one full-time job. A half-time job is a job requiring a minimum of twenty hours of an employee's time a week otherwise meeting the full-time job requirements.
(6) 'Research and development facility' means a facility, including all necessary dry and wet laboratories, office space, lecture halls, conference rooms, equipment and administrative support spaces owned by a research university that would advance the development of the life sciences industry in the State by providing the necessary infrastructure that would be used by the research university and private entrepreneurs to promote the pursuit of intellectual property, to incubate emerging businesses, and to develop pilot commercial and manufacturing establishments.
(7) 'Research universities' means Clemson University, the Medical University of South Carolina, and the University of South Carolina - Columbia.
(8) 'Secretary' means the secretary of the department.
(5)(9) 'Sponsor' means a sole proprietor, partnership, corporation of any classification, limited liability company, or association taxable as a business entity or any combination of these entities.
(6)(10) 'State general obligation economic development bonds' or 'economic development bonds' or 'bonds' means general obligation bonds of this State issued under the authority of this chapter."
D. Section 11-41-40 of the 1976 Code, as added by Act 254 of 2002, is amended to read:
"Section 11-41-40. To obtain funds for allocation to the department for financing of (1) infrastructure and (2) research and development facilities, there are issued from time to time state general obligation economic development bonds under the conditions prescribed by this chapter."
E. Section 11-41-50 of the 1976 Code, as added by Act 254 of 2002, is amended to read:
"Section 11-41-50. (A) Pursuant to Article X, Section 13(6)(c) of the Constitution of this State, 1895, the General Assembly provides that economic development bonds may be issued under this chapter only at such times as the maximum annual debt service on all general obligation bonds of the State, including economic development bonds outstanding and being issued, but excluding highway bonds, state institution bonds, tax anticipation notes, and bond anticipation notes, must will not exceed five and one-half percent of the general revenues of the State for the fiscal year next preceding, excluding revenues which are authorized to be pledged for state highway bonds and state institution bonds. The State at any time must may not have outstanding issue general obligation bonds, excluding economic development bonds, highway bonds, state institution bonds, tax anticipation notes, and bond anticipation notes, if at the time of issuance the maximum annual debt service on which all such general obligation bonds, outstanding and being issued exceeds five percent of the general revenues of the State for the fiscal year next preceding, excluding revenues which are authorized to be pledged for state highway bonds and state institution bonds.
(B) With respect to the first seven hundred million dollars in principal amount of general obligation bonds issued after the effective date of this chapter within the debt service constraints set forth in subsection (A) of this section, the General Assembly provides additional constitutional authorization for such bonds pursuant to Article X, Section 13(5) of the Constitution of this State, 1895."
F. Section 11-41-60 of the 1976 Code, as added by Act 254 of 2002, is amended to read:
"Section 11-41-60. At the time of issuance of economic development bonds pursuant to this chapter, the maximum annual debt service on such bonds issued pursuant to this chapter outstanding or being issued must not exceed one-half of one percent of the general revenues of this State for the fiscal year next preceding, excluding revenues which are authorized to be pledged for state highway bonds and state institution bonds."
G. Section 11-41-70 of the 1976 Code, as added by Act 254 of 2002, is amended to read:
"Section 11-41-70. (A) Before issuing economic development bonds to defray the cost of infrastructure, the department shall notify the Joint Bond Review Committee and the State Budget and Control Board of the following:
(1) the amount then required for allocation to the department to defray the costs of the proposed infrastructure;
(2) a description of the infrastructure for which the bonds are to be issued, including a certification by the secretary of the department that each the economic development project to benefit from the expenditure of the proceeds of the bonds consists of the following:
(a) an investment in the State by the sponsor at the project of not less than four hundred million dollars and creates creation at the project of no fewer than four hundred new jobs; or
(b) in the case of a life sciences facility, an investment by the sponsor in the project of not less than one hundred million dollars and creation at the project of no fewer than two hundred new jobs with an average cash compensation of at least twice the per capita income in this State. Per capita income must be determined by using the most recent per capita income data available at the time the request for funding is made pursuant to this chapter.
(3) a tentative time schedule setting forth the period of time during which the sum requested is to be expended;
(4) a debt service table showing the annual principal and interest requirements for all bonds then outstanding; and
(5) the total amount of all bonds issued.
(B) Before issuing economic development bonds to defray the cost of the research and development facilities, the department shall notify the Joint Bond Review Committee and the State Budget and Control Board of the following:
(1) the amount then required for allocation to the department to defray the costs of the proposed research and development facilities;
(2) a description of the proposed research and development facilities for which the bonds are to be issued, including a certification by the secretary that matching funds required by Section 11-41-45 have been made available by the research university which shall own the research and development facilities and a schedule showing the source and amount of such matching funds;
(3) a tentative time schedule setting forth the period of time during which the sum requested is to be expended;
(4) a debt service table showing the annual principal and interest requirements for all bonds then outstanding; and
(5) the total amount of all bonds issued."
H. Section 11-41-120 of the 1976 Code, as added by Act 254 of 2002, is amended to read:
"Section 11-41-120. All bonds issued under this chapter must be signed by the Governor and the State Treasurer and attested by the Secretary of State. The Governor, and State Treasurer, and Secretary of State may sign these obligations by a facsimile of their signatures. The Great Seal of the State must be affixed to, impressed on, or reproduced upon each of them and each must be attested by the Secretary of State. The delivery of the bonds executed and authenticated, as provided in the resolution, is valid notwithstanding changes in officers or seal occurring after the execution or authentication."
SECTION 4. Beginning January 1, 2005, the Department of Revenue annually shall report to the Joint Committee on Taxation the revenue impact of this act, and the Department of Commerce annually shall report the cost and benefit of this act, together with the job creation and capital investment made by qualifying businesses.
SECTION 5. If any section, subsection, paragraph, subparagraph, sentence, clause, phrase, or word of this act is for any reason held to be unconstitutional or invalid, such holding shall not affect the constitutionality or validity of the remaining portions of this act, the General Assembly hereby declaring that it would have passed this act, and each and every section, subsection, paragraph, subparagraph, sentence, clause, phrase, and word thereof, irrespective of the fact that any one or more other sections, subsections, paragraphs, subparagraphs, sentences, clauses, phrases, or words hereof may be declared to be unconstitutional, invalid, or otherwise ineffective.
SECTION 6. This act takes effect upon approval by the Governor. /
Renumber sections to conform.
Amend title to conform.
ROBERT W. HARRELL, JR. for Committee.
REVENUE IMPACT 1/
The Board of Economic Advisors has reviewed the bill and has determined that there is no impact on state general fund revenue in FY2003-04, since this bill is not effective until FY2004-05.
Explanation
This bill would create the South Carolina Life Science Act. This bill would allow an eligible "life sciences facility" to claim job development tax credits against the withholdings of its employees. A "life sciences facility" means a business engaged in pharmaceutical, medicine, and related laboratory instrument manufacturing, processing, or research and development. The facility must invest a minimum of one hundred million dollars in the project, and create at least two hundred new full-time jobs with an average annual cash compensation of at least one hundred fifty percent of annual per capita income in this State. The provisions of this bill would only apply to new projects created after June 30, 2004 and before July 1, 2008. The Board of Economic Advisors has reviewed the bill and has determined that there is no impact on state general fund revenue in FY2003-04, since this bill is not effective until FY2004-05.
Approved By:
William C. Gillespie
Board of Economic Advisors
1/ This statement meets the requirement of Section 2-7-71 for a state revenue impact, Section 2-7-76 for a local revenue impact, and Section 6-1-85(B) for an estimate of the shift in local property tax incidence.
TO ENACT THE SOUTH CAROLINA LIFE SCIENCES ACT, BY DEFINING A LIFE SCIENCES FACILITY AND PROVIDING THAT A LIFE SCIENCES FACILITY PROJECT IN WHICH IS INVESTED AT LEAST ONE HUNDRED MILLION DOLLARS AND AT WHICH AT LEAST TWO HUNDRED NEW JOBS ARE CREATED WITH ANNUAL CASH COMPENSATION AT LEAST ONE HUNDRED FIFTY PERCENT OF AVERAGE PER CAPITA INCOME IN THIS STATE IS ELIGIBLE FOR EMPLOYEE RELOCATION EXPENSE REIMBURSEMENT AND THE WAIVER ALLOWED ON THE LIMIT FOR JOB DEVELOPMENT CREDITS FOR PURPOSES OF THE ENTERPRISE ZONE ACT OF 1995, TO ALLOW A TAXPAYER OPERATING A LIFE SCIENCES FACILITY TO ENTER INTO AN AGREEMENT WITH THE DEPARTMENT OF REVENUE NOT TO EXCEED FIFTEEN YEARS DURATION FOR ALLOCATION AND APPORTIONMENT FOR PURPOSES OF CORPORATE INCOME TAX, TO AMEND SECTION 12-37-930, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE DEPRECIATION ALLOWANCE FOR PURPOSES OF THE PROPERTY TAX, SO AS TO INCREASE THE ANNUAL DEPRECIATION ALLOWANCE FOR USE OF CLEAN ROOMS FROM TEN TO FIFTEEN PERCENT AND TO PROVIDE A TWENTY PERCENT ANNUAL DEPRECIATION ALLOWANCE FOR MACHINERY AND EQUIPMENT USED FOR MANUFACTURING IN A LIFE SCIENCES FACILITY AND TO DEFINE "LIFE SCIENCES FACILITY", TO AMEND SECTIONS 11-41-20, 11-41-30, AND 11-41-70, RELATING TO THE STATE GENERAL OBLIGATION ECONOMIC DEVELOPMENT BOND ACT, SO AS TO REVISE ITS FINDINGS, DEFINITIONS, AND NOTICE REQUIREMENTS TO ALLOW SUCH BONDS TO BE USED FOR INFRASTRUCTURE FOR A LIFE SCIENCES FACILITY IN A PROJECT IN WHICH IS INVESTED AT LEAST ONE HUNDRED MILLION DOLLARS AND AT WHICH AT LEAST TWO HUNDRED NEW JOBS ARE CREATED WITH AN ANNUAL CASH COMPENSATION AT LEAST TWICE PER CAPITA INCOME IN THE STATE AND PROVIDE THAT, WHILE INFRASTRUCTURE PROVIDED BY THESE BONDS MUST RELATE SPECIFICALLY TO THE PROJECT, SUCH INFRASTRUCTURE IS NOT REQUIRED TO BE LOCATED AT THE PROJECT, AND TO AMEND SECTION 11-41-120, RELATING TO FORMALITIES IN THE ISSUING OF THESE BONDS, SO AS TO REVISE THESE REQUIREMENTS.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. (A) This section may be cited as the South Carolina Life Sciences Act.
(B) For purposes of this section, a "life sciences facility" means a business engaged in pharmaceutical, medicine, and related laboratory instrument manufacturing, processing, or research and development. Included in this definition are the following North American Industrial Classification Systems, NAICS Codes published by the Office of Management and Budget of the federal government:
(1) 3254 Pharmaceutical and Medical Manufacturing;
(2) 334516 Analytical Laboratory Instrument Manufacturing.
(C)(1) For all purposes of Chapter 10, Title 12 of the 1976 Code, the Enterprise Zone Act of 1995, including all definitions applicable to that chapter:
(a) Employee relocation expenses that qualify for reimbursement pursuant to Section 12-10-80(C)(3)(f) of the 1976 Code include such expenses associated with a new or expanded life sciences facility investing a minimum of one hundred million dollars in the project, as defined in Section 12-10-30(8) of the 1976 Code, and creating at least two hundred new full-time jobs at the project with an average annual cash compensation of at least one hundred fifty percent of annual per capita income in this State or the county in which the facility is located, whichever is less. Per capita income must be determined using the most recent per capita income data available as of the end of the taxable year in which the jobs are filled.
(b) The waiver that may be approved by the Coordinating Council for Economic Development pursuant to Section 12-10-80(D)(2) of the 1976 Code on maximum job development credits that may be claimed also may be approved for a life sciences facility meeting the requirements of subitem (a) of this subsection. In determining whether to approve a waiver for such a facility, the Coordinating Council for Economic Development shall consider the creditworthiness of the business and economic viability of the project, as defined in Section 12-10-30(8) of the 1976 Code.
(2) The provisions of item (1) of this subsection apply with respect to capital investment made and new jobs created after June 30, 2004, and before July 1, 2008.
(D) In the case of a taxpayer establishing a life sciences facility meeting the requirements of subsection (C)(1)(a) of this section, the South Carolina Department of Revenue, in its discretion, may enter into an agreement with the taxpayer pursuant to Section 12-6-2320 of the 1976 Code for a period not to exceed fifteen years if the facility otherwise meets the requirements of that section.
SECTION 2. A. Section 12-37-930(34) of the 1976 Code, as last amended by Section 3(Q)2, Act 399 of 2000, is further amended to read:
"34. Use of Clean Rooms ......................................... 10% 15%
A manufacturer who uses a Class 100 or better clean room, as that term is defined in Federal Standard 209E, in manufacturing its product may elect an annual allowance for depreciation for property tax purposes of ten fifteen percent on clean room modules and associated mechanical systems, and on process piping, wiring environmental systems, and water purification systems associated with the clean room instead of a depreciation allowance for which the manufacturer otherwise is entitled. Included are waffle flooring, wall and ceiling panels, foundation improvements that isolate the clean room to control vibrations, clean air handling and filtration systems, piping systems for fluids and gases used in the manufacturing process and in the clean room that touch the product during the process, flat panel displays, and liquid crystal displays, process equipment energy control systems, ultra pure water processing and wastewater recycling systems, and safety alarm and monitoring systems.
35. Life sciences.................................................. 20%
Includes machinery and equipment used directly in the manufacturing process by a life sciences facility. For purposes of this item, life sciences facility means a business engaged in pharmaceutical, medicine, and related laboratory instrument manufacturing, processing, or research and development that invests a minimum of one hundred million dollars in the project, as defined in Section 12-10-30(8), and creates at least two hundred new full-time jobs at the project with an average cash compensation level of at least one hundred and fifty percent of the annual per capita income in this State or the county in which the facility is located, whichever is less. Per capita income must be determined using the most recent per capita income data available as of the end of the taxable year in which the jobs are filled. Included in this definition are the following North American Industrial Classification Systems, NAICS Codes published by the Office of Management and Budget of the federal government:
(i) 3254 Pharmaceutical and Medical Manufacturing;
(ii) 334516 Analytical Laboratory Instrument Manufacturing."
B. In the case of machinery and equipment otherwise eligible for the depreciation allowed pursuant to Section 12-37-930 of the 1976 Code, as amended in subsection A of this section, if the project with which the machinery and equipment is associated is the subject of an inducement agreement between the project sponsor and the county, the initial inducement agreement must have been entered into between these parties after September 1, 2003.
SECTION 3. A. Section 11-41-20(3) of the 1976 Code, as added by Act 254 of 2002, is amended to read:
"(3) In order to foster economic development and to encourage the creation of high-paying jobs in the life sciences industry within the State, it is in the best interests of the State that the limitation on general obligation debt imposed by Article X, Section 13(6)(c) be increased to five and one-half percent with the additional debt service capacity available at any time as a consequence of the increase available only for the repayment of general obligation bonds issued to provide infrastructure required for significant economic development projects within the State, including those related to the life sciences industry that create high-paying jobs and meet certain investment criteria."
B. Items (2) and (3) of Section 11-41-30 of the 1976 Code, as added by Act 254 of 2002, are amended to read:
"(2)(a) 'Economic development project' or 'project' means a project in this State as defined in Section 12-44-30(16) in which a total of at least four hundred million dollars is invested in the project by the sponsor and at least four hundred new jobs are created at the project by the sponsor. To qualify as an economic development project for purposes of this chapter, the investment and job creation requirements must be attained no later than the eighth year after the project first begins operations.
(b) 'Project' also includes a life sciences facility in this State defined as a business engaged in pharmaceutical, medicine, and related laboratory instrument manufacturing, processing, or research and development. Included in this definition are the following North American Industrial Classification Systems, NAICS Codes published by the Office of Management and Budget of the federal government:
(i) 3254 Pharmaceutical and Medical Manufacturing;
(ii) 334516 Analytical Laboratory Instrument Manufacturing.
With respect to a life sciences facility, the sponsor must invest in the project at least one hundred million dollars and create at the project at least two hundred new jobs with an average annual cash compensation level of at least twice the annual per capita income in this State. Per capita income must be determined by using the most recent per capita income data available at the time the request for funding is made pursuant to this chapter.
(c) To qualify as an economic development project for purposes of this chapter, the investment and job creation requirements must be attained no later than the eighth year after the project first begins operations.
(3) 'Infrastructure' must relate specifically to, but is not required to be located at, the economic development project and means:
(a) land acquisition;
(b) site preparation;
(c) road and highway improvements;
(d) rail spur construction;
(e) water service;
(f) wastewater treatment;
(g) employee training which may include equipment used for such purpose;
(h) environmental mitigation; and
(i) training and research facilities and the necessary equipment therefor."
C. Section 11-41-70(2) of the 1976 Code, as added by Act 254 of 2002, is amended to read:
"(2) a description of the infrastructure for which the bonds are to be issued, including a certification by the secretary of the department that each the economic development project to benefit from the expenditure of the proceeds of the bonds consists of the following:
(a) an investment in the State at the project of not less than four hundred million dollars and creates creation at the project of no fewer than four hundred new jobs; or
(b) in the case of a life sciences facility, an investment in the project of not less than one hundred million dollars and creation at the project of no fewer than two hundred new jobs with an average cash compensation of at least twice the per capita income in this State. Per capita income must be determined by using the most recent per capita income data available at the time the request for funding is made pursuant to this chapter."
D. Section 11-41-120 of the 1976 Code, as added by Act 254 of 2002, is amended to read:
"Section 11-41-120. All bonds issued under this chapter must be signed by the Governor and the State Treasurer and attested by the Secretary of State. The Governor, and State Treasurer, and Secretary of State may sign these obligations by a facsimile of their signatures. The Great Seal of the State must be affixed to, impressed on, or reproduced upon each of them and each must be attested by the Secretary of State. The delivery of the bonds executed and authenticated, as provided in the resolution, is valid notwithstanding changes in officers or seal occurring after the execution or authentication."
SECTION 4. Beginning January 1, 2005, the Department of Revenue annually shall report to the Joint Committee on Taxation the revenue impact of this act, and the Department of Commerce annually shall report the cost and benefit of this act, together with the job creation and capital investment made by qualifying businesses.
SECTION 5. This act takes effect upon approval by the Governor.
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