Economic Recovery Package, 651
- The purpose of this bill is to facilitate economic recovery following the war with TGN. This shall be achieved by adopting a monetary policy of quantitative easing that will increase the liquidity of the market, which promotes economic activity. With the reacquisition of the Darrent, this bill will hasten and incentivize the mining and extraction of rare earth metals such as bauxite via mining subsidies. Measures regarding increasing Kodiak’s energy efficiency and decreasing our oil dependency via renewable energy subsidies will improve our economy and our environment. Perhaps the most ambitious and important part of this bill is its effort to increase foreign investment inside the Kodiak Republic; this shall be achieved via foreign investment tax credits and protection of international intellectual property rights. This package will include multiple acts which will be located in their respective department.
*Take Note: Assembly members requested that each act be voted on separately. All acts but the Quantitative Easing Act were approved.
- The Quantitative Easing Act has FAILED in the assembly by a vote of 8 Aye, 8 Nay and 2 abstaining.
- The Mining and Energy Expansion Act has PASSED by a vote of 9 Aye, 7 Nay and 2 abstaining.
- The Foreign Investment Expansion Act has PASSED by a vote of 8 Aye, 7 Nay and 2 abstaining.
- The Intellectual Copyright Protections Act has PASSED by a vote of 10 Aye, 4 Nay and 2 abstaining.
- The Foreign Investment Regulation Act has PASSED by a vote of 10 Aye, 5 Nay and 4 abstaining.
The Quantitative Easing Act
- 1.1 - The Central Bank shall establish a monetary policy of mild quantitative easing. The Treasury shall create 12.1 billion new florins which the Central Bank shall use to start buying a small number of long-term bonds spread over the largest financial institutions in Kodiak.
- 1.2 - After 12 months from implementation, this article will be automatically removed unless the General Assembly wishes and votes to renew it.
Mining & Energy Expansion Act
- 1.1 - The Ministry of Commerce shall issue a government subsidy to mining companies to hasten the establishment of long-term rare earth metal mining operations in the Darrent. They will also issue subsidies for the research and development of renewable energy infrastructure.
- 1.2 - A total of 1,200 million florins shall be allocated quarterly by the Ministry of Commerce to fund these mining subsidies.
- 1.3 - These mining subsidies shall first and foremost go towards establishing proper ventilation and waste disposal systems on mining sites and facilities.
- 1.4 - A total of 243 million florins shall be allocated quarterly by the Ministry of Commerce to fund renewable energy subsidies.
- 1.5 - Renewable energy consists of wind, solar, hydro, and nuclear power. This funding will only be used to create renewable energy facilities, by any legal means.
Foreign Investment Expansion Act
- 1.1 - The Ministry of Revenue & Treasury shall issue tax credits to foreign investors willing to invest money into Kodiak. A foreign investor is any foreign individual or private entity who has invested at least 1,000,000 florins worth of assets or cash into the Kodiak economy.
- 1.2 - A total of 600 million florins shall be allocated quarterly by the Ministry of Revenue & Treasury to fund foreign investor tax credits. The allocation of tax credits shall be overseen and independently determined by the FIC created in Foreign Investment Regulation Act.
Intellectual Copyright Protections Act
- 1.1 - The National Patent Office (NPO) shall be created under the Ministry of Law & Order to review, protect, and enforce intellectual copyright inside the Kodiak Republic.
- 1.2 - The Ministry of Law shall enact intellectual copyright protections laws. All international copyrights shall be recognized and enforced by the NPO.
Foreign Investment Regulation Act
- 1.1 - A foreign investor is defined with the same definition in clause 1.1 of the Foreign Investment Expansion Act.
- 2.1 - The Foreign Investment Council (FIC) shall be created under the Ministry of Revenue & Treasury. It is the FIC's responsibility to:
- 2.1.1 - Create and review goals investors have to meet to be eligible for tax credits defined in the Foreign Investment Expansion Act.
- 2.1.2 - Review the eligibility of foreign investors who want to apply for tax credits according to the goals defined by the FIC.
- 2.1.3 - Organizing the tiers of restrictions on the amount of foreign investment in any company, sectors or industry in accordance with clause 2.2.
- 2.2 - The organization of restrictions on foreign investment in specific sectors (sectors can mean anything from entire industries to specific companies) will be defined in these following tiers:
- 2.2.1 - Tier 1: Heavily restricted sectors. Sectors of the economy which are completely off limits to foreign investment (unless specified in specific treaties or bills).
- 2.2.2 - Tier 2: Well-regulated sectors. Sectors of the economy which are limited in how much foreign investment can be consisted of their total equities. Foreign investments can not go over 25% of the total amount of equities in the sector.
- 2.2.3 - Tier 3: Mildly-regulated sectors. Sectors of the economy which are limited in how much foreign investment can be consisted of their total equities. Foreign investments can not go over 49% of the total amount of equities in the sector.
- 2.2.4 - Tier 4: Unregulated sectors. Sectors of the economy which have no regulation on the amount of foreign investment they can receive.
- 2.3 - These specific sectors shall be defined in accordance with clause 2.2:
- 2.3.1 - Tier 1: The defense industry and mining industry.
- 2.3.2 - Tier 2: The agriculture industry, rail infrastructure, port infrastructure, airport infrastructure, and the transportation industry.
- 2.3.3 - Tier 3: The healthcare industry, energy industry, real estate industry, and news outlets.
- 2.3.4 - Tier 4: All sectors not previously defined in clause 2.3.
Written and Proposed by Erich Crysler, MGA, Independent.