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House of Representatives
Session of 2017 - 2018 Regular Session


Posted: January 11, 2017 02:53 PM
From: Representative Keith Gillespie
To: All House members
Subject: Micro-Enterprise Development (former HB 616)
In the near future, I intend to reintroduce language which would set up a process for our local governments to develop micro-enterprises in our downtown business communities. The bill is designed to continue our fight against blight, through the re-use of buildings in our down towns, and to move people from social programs to employment. Micro-enterprises employ one to five people.

The legislation allows a municipality with a population of more than 10,000, or two or more contiguous municipalities located in the same county and meeting the 10,000 population to create community development authorities that will develop blighted, low-income neighborhoods and to create jobs. The bill also encourages collaboration among existing authorities and redevelopment authorities to operate a community development authority through intergovernmental cooperation agreements.

A community development authority will issue loans to micro-enterprises. Funding for these loans will be through a mechanism of fees, fines and private partnerships, thereby making the program self-sustaining. Specifically, a municipality that establishes a community development fund shall deposit $5 of every $100 generated through violations of a building code, $5 of e very $100 collected in fines for zoning

violations, $5 of every $100 collected in building permit fees and $2 of every $100 collected in liens on blighted property. This bill does not require any state appropriations and contains no tax credits.

Additional key features of the bill include:
  • A requirement for loan applicants to undergo business development training through providers approved by the authority board;
    Accountability and transparency, as the authority is subject to our Open Meetings and Right-to-Know laws and is required to provide public access to its land inventory list.

Introduced as HB584