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|Councilmember David A. Catania
A BILL IN THE COUNCIL OF THE DISTRICT OF COLUMBIA
Councilmembers David Catania introduced the following bill, which was referred to the Committee on Finance and Revenue and Economic Development with comments from the Committees on Consumer and Regulatory Affairs, Public Works and the Environment, and Human Services.
To provide financial and tax incentives for the remediation and redevelopment of abandoned or underutilized contaminated real property.
TITLE I. AMENDMENTS TO DISTRICT OF COLUMBIA LAWS
TITLE II. TAX AND FINANCIAL INCENTIVES FOR THE REMEDIATION AND REDEVELOPMENT OF
TITLE III. FISCAL IMPACT STATEMENT
TITLE IV. EFFECTIVE DATE
BE IT ENACTED BY THE COUNCIL OF THE DISTRICT OF COLUMBIA, That this act may be cited as the "Brownfields Remediation and Redevelopment Incentives Amendment Act of 1999".
TITLE I. AMENDMENTS TO DISTRICT LAWS.
Sec 101. Section 2 of The Tax Increment Financing Authorization Act of 1998, effective September 11, 1998 (D.C. Law 12-143; D.C. Code §1-2293.1), is amended as follows:
(a) Paragraph (24) is amended by striking the "." at the end of the paragraph and inserting the phrase "; and Brownfields areas as defined in subsection (33)." in its place.
(b) Add a new paragraph (33) to read as follows:
Sec. 102. The National Capital Revitalization Corporation Act of 1998, effective September 11, 1998 (D.C. Law 12-144; D.C. Code §1-2295.1 et seq.), is amended as follows:
(a) Section 13(b)(2) (D.C. Code §1-2295.12(b)(2)) is amended to read as follows:
(b) Section 21(a) (D.C.. Code §1-2295.20(a) is amended as follows:
Sec. 103. Section 3(a)(3) of the District of Columbia Community Development Act of 1975, effective December 16, 1975 (D.C. Law 1-39; D.C. Code §5-902(a)(3)), is amended as follows:
TITLE II. TAX AND FINANCIAL INCENTIVES.
Sec. 201. Short title.
This title may be cited as the "Brownfields Remediation and Redevelopment Incentives Act of 1999".
Sec. 202. Definition.
For purposes of this title, "brownfields site" means an abandoned or underutilized property where expansion or redevelopment is complicated by actual or perceived environmental contamination as determined by the Mayor.
Sec. 202 [sic]. Brownfields real property and business franchise tax abatements.
(a) The Mayor may submit proposed rules to the Council to establish credits that offset real property taxes and business franchise taxes in connection with the remediation and redevelopment of a brownfields site. The proposed rules shall be submitted to the Council for a 45-day period of review, excluding Saturdays, Sundays, legal holidays, and days of Council recess. If the Council does not approve or disapprove the proposed rules, in whole or in part, by resolution within this 45-day review period, the proposed rules shall be deemed approved. Nothing in this section shall affect any requirements imposed upon the Mayor by Title 1 of the District of Columbia Administrative Procedure Act, approved October 21, 1968 (82 Stat. 1204; D.C. Code §1-1501 et seq.) The aggregate of the credits may equal an amount up to 100% of costs for remediation and up to 25% of costs for redevelopment of a brownfields site.
(b)(1) Application may be made to the Mayor for a reduction in real property taxes for real property that has been proposed as a site for brownfields remediation and redevelopment. Application may also be made for the deferral or forgiveness of any delinquent real property taxes, of any delinquent special assessments, of any cost or fee assessed to correct any condition that exists on the real property in violation of law, and of any delinquent water or sanitary sewer charges that have been imposed on the brownfields site.
(c)( 1 ) Application may be made to the Mayor for a credit to any franchise tax liability imposed by D.C. Code §47-1807.1 et seq. or §47-1808.1 et seq., on income expected to be earned by an incorporated or unincorporated business entity as a result of the remediation and redevelopment of a brownfields site.
(d) If the amount of the credits allowable under this section exceeds the taxes otherwise due, the amount of the credits not used as an offset against the taxes may be carried forward for up to 25 years.
(e) The Mayor may impose limitations on the amount of total reductions that will be allowed.
Sec. 204. Environmental Savings Accounts.
The Mayor shall establish a program to be known as the Environmental Savings Account Program which shall permit an eligible person to establish an Environmental Savings Account ("ESA") for the purpose of accumulating funds to be used for the remediation and/or redevelopment of a brownfields site. Funds deposited in an ESA by an eligible person and interest earned on the funds shall be exempt from District income taxation; provided, that any funds withdrawn that are not used for remediation and redevelopment shall be subject to income taxation and a 10% penalty.
Sec. 205. Brownfields Sites Environmental Assessment Fund.
The Mayor shall establish a Brownfields Sites Environmental Assessment Fund, subject to appropriations and any other Federal funds or private contributions, for the purpose of making grants to conduct environmental assessments of industrial, commercial and residential sites. The Mayor shall provide an annual report on October l of each year to the Council on grants made from the Fund and on the effectiveness of the Fund in conducting environmental assessments.
Sec. 206. Brownfields Sites Cleanup Revolving Fund.
(a) The Mayor shall establish the Brownfields Sites Cleanup Revolving Fund ("Fund"), subject to appropriations and any other federal funds or private contributions, to provide financial assistance for the remediation and redevelopment of brownfields sites. The financial assistance, in the form of grants or loans to be lent at a rate not to exceed 2%, shall be in an amount up to 75% of the costs incurred for completing an environmental study and remediating and redeveloping a brownfields site.
(b) The following criteria shall be used in determining whether to provide financial assistance:
(c) In addition to the criteria in subsection (b) of this subsection, loans may be made based on the ability to repay the loan from future revenue to be derived from the redeveloped site and may be secured by a mortgage or other collateral.
(d) Moneys received as repayment of loans shall be deposited in the Fund.
(e) The Mayor shall provide an annual report on October 1 of each year to the Council on grants, loans, and expenditures made from the Fund, the revenue received by the Fund, and on the effectiveness of the Fund in redeveloping brownfields sites.
Sec. 207. Rules.
The Mayor shall promulgate rules to implement the provisions of this title. The rules shall include the following:
TITLE III. FISCAL IMPACT STATEMENT.
Sec. 301. Fiscal Impact Statement
TITLE IV. EFFECTIVE DATE
Sec. 401. This act shall take effect following approval by the Mayor (or in the event of veto by the Mayor, action by the Council to override the veto), approval by the Financial Responsibility and Management Assistance Authority as provided in section 203(a) of the District of Columbia Financial Responsibility and Management Assistance Act of 1995, approved April 17, 1995 (109 Stat. 116; D.C. Code §47-392.3(a)), a 30-day period of Congressional review as provided in section 602(c)(1) of the District of Columbia Home Rule Act, approved December 24, 1973 (87 Stat. 831; D.C. Code §1-233(c)(1)), and publication in the District of Columbia Register.
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