SB 2673

This bill establishes the automotive tariff relief fund, to be administered by the department of economic and community development ("department""). The purpose of the fund is to issue grants to eligible entities that demonstrate hardship due to increased costs, reduced revenues, or supply interruptions resulting directly or indirectly from federal tariffs or foreign retaliatory measures. Grants may be used for cost mitigation, inventory diversification, workforce retention, or capital investment. The department must promulgate rules to create grant application procedures and documentation requir ements. This bill requires the department to provide refundable tax credits and low-interest loans to eligible entities that (i) r elocate critical supply operations, (ii) e xpand domestic sourcing within this state, or ( iii ) i nvest in technology or equipment that mitigates reliance on tariff-affected imports. The amount of any such credits must not exceed 30% of qualifying investment expenditures. This bill requires the department to expand export support services to eligible entities seeking new international markets. Services may include export financing assistance, trade mission subsidies, foreign regulatory compliance, and market entry consulting. The department must prioritize businesses impacted by foreign retaliatory tariffs. This bill authorizes s tate procurement agencies to (i) a djust bid scoring to reflect cost increases from tariffs, (ii) gr ant temporary preference to domestic suppliers impacted by trade measures, and ( iii ) m odify contract requirements to allow use of alternative materials. The department of finance and administration must promulgate rules to effectuate this paragraph. AUTOMOTIVE RESILIENCE TASK FORCE This bill establishes the automotive resilience task force, composed of five members appointed by the governor. The task force must consist of representatives from industry, labor, academia, and state and local government. The task force must (i) m onitor federal trade actions and foreign retaliatory measures, ( ii ) a ssess economic impact on the automotive sector, and ( iii ) r ecommend policy responses and industry adaptations. The task force must submit a biennial report of its findings and recommendations to the speaker of the senate and the speaker of the house of representatives no later than December 31 of each year the report is due."