SECOND REGULAR SESSION
HOUSE COMMITTEE SUBSTITUTE FOR
93RD GENERAL ASSEMBLY
Reported from the Committee on Job Creation and Economic Development April 6, 2006 with recommendation that House Committee Substitute for House Bill No. 2040 Do Pass. Referred to the Committee on Rules pursuant to Rule 25(26)(f).
STEPHEN S. DAVIS, Chief Clerk
AN ACT
To repeal sections 32.100, 32.111, 32.105, 32.110, 32.115, 32.117, 32.120, 33.282, 41.655, 41.1010, 42.007, 84.240, 99.845, 99.847, 99.918, 99.960, 99.963, 99.975, 99.980, 99.1045, 99.1048, 99.1082, 99.1090, 99.1092, 100.255, 100.275, 100.281, 100.286, 100.297, 100.760, 135.400, 135.403, 135.460, 135.700, 135.766, 135.800, 135.903, 135.950, 135.967, 160.053, 168.021, 208.750, 208.755, 208.760, 208.765, 208.770, 208.775, 290.140, 290.152, 348.251, 348.253, 348.256, 348.261, 348.262, 348.263, 348.264, 348.266, 348.271, 348.272, 348.275, 447.708, 620.030, 620.495, 620.500, 620.503, 620.521, 620.523, 620.527, 620.528, 620.529, 620.530, 620.537, 620.1003, 620.1007, 620.1100, 620.1103, 620.1878, 620.1881, and 620.1900, RSMo, and to enact in lieu thereof eighty-nine new sections relating to economic development projects.
Be it enacted by the General Assembly of the state of Missouri, as follows:
Section A. Sections 32.100, 32.111, 32.105, 32.110, 32.115, 32.117, 32.120, 33.282, 41.655, 41.1010, 42.007, 84.240, 99.845, 99.847, 99.918, 99.960, 99.963, 99.975, 99.980, 99.1045, 99.1048, 99.1082, 99.1090, 99.1092, 100.255, 100.275, 100.281, 100.286, 100.297, 100.760, 135.400, 135.403, 135.460, 135.700, 135.766, 135.800, 135.903, 135.950, 135.967, 160.053, 168.021, 208.750, 208.755, 208.760, 208.765, 208.770, 208.775, 290.140, 290.152, 348.251, 348.253, 348.256, 348.261, 348.262, 348.263, 348.264, 348.266, 348.271, 348.272, 348.275, 447.708, 620.030, 620.495, 620.500, 620.503, 620.521, 620.523, 620.527, 620.528, 620.529, 620.530, 620.537, 620.1003, 620.1007, 620.1100, 620.1103, 620.1878, 620.1881, and 620.1900, RSMo, are repealed and eighty-nine new sections enacted in lieu thereof, to be known as sections 26.700, 32.100, 32.105, 32.111, 32.115, 33.282, 41.655, 41.1010, 42.007, 99.845, 99.847, 99.918, 99.960, 99.963, 99.975, 99.980, 99.1045, 99.1048, 99.1082, 99.1090, 99.1092, 99.1100, 99.1102, 99.1104, 99.1106, 99.1108, 99.1110, 99.1112, 99.1114, 99.1116, 99.1118, 99.1120, 99.1122, 99.1124, 99.1126, 99.1128, 99.1130, 100.255, 100.275, 100.281, 100.286, 100.297, 100.760, 135.400, 135.403, 135.440, 135.442, 135.444, 135.446, 135.448, 135.449, 135.566, 135.662, 135.700, 135.800, 135.903, 135.950, 135.967, 135.1170, 144.054, 160.053, 168.021, 290.140, 290.152, 348.251, 348.253, 348.256, 348.261, 348.262, 348.263, 348.264, 348.266, 348.271, 348.273, 348.274, 348.275, 447.708, 620.030, 620.500, 620.503, 620.517, 620.1003, 620.1007, 620.1878, 620.1881, 620.1892, 620.1900, 1, and 2, to read as follows:
26.700. 1. There shall be established in the office of the lieutenant governor "The Small-Business Advocacy Program". Subject to appropriations, the lieutenant governor shall employ personnel to administer the program.
2. The duties of the personnel administering the program under subsection 1 of this section shall be to:
(1) Serve as the central clearinghouse for providing small-business information to the citizens of the state;
(2) Be accessible to the public through one telephone number to field questions or complaints about state government by small-business owners;
(3) Ensure attendance at all legislative committee hearings that affect small business or relate to regulatory fairness;
(4) Serve as an information resource for the Missouri small-business development centers, the Missouri enterprise center, and the Missouri innovation centers;
(5) Serve as a point of contact for the executive branch;
(6) Work with the small-business advocate at the small-business administration to share information about state and federal issues; and
(7) Coordinate small-business activities and issues with the various business associations.
3. Under section 23.253, RSMo, of the Missouri sunset act:
(1) The provisions of the new program authorized under this section shall automatically sunset six years after the effective date of this section unless reauthorized by an act of the general assembly; and
(2) If such program is reauthorized, the program authorized under this section shall automatically sunset twelve years after the effective date of the reauthorization of this section; and
(3) This section shall terminate on September first of the calendar year immediately following the calendar year in which the program authorized under this section is sunset.
32.100. Sections 32.100 to 32.125 shall be known and may be cited as the ["Neighborhood Assistance Act"] "Affordable Housing Assistance Act".
32.105. As used in sections 32.100 to 32.125, the following terms mean:
(1) "Affordable housing assistance activities", money, real or personal property, or professional services expended or devoted to the construction, or rehabilitation of affordable housing units;
(2) "Affordable housing unit", a residential unit generally occupied by persons and families with incomes at or below the levels described in this subdivision and bearing a cost to the occupant no greater than thirty percent of the maximum eligible household income for the affordable housing unit. In the case of owner-occupied units, the cost to the occupant shall be considered the amount of the gross monthly mortgage payment, including casualty insurance, mortgage insurance, and taxes. In the case of rental units, the cost to the occupant shall be considered the amount of the gross rent. The cost to the occupant shall include the cost of any utilities, other than telephone. If any utilities are paid directly by the occupant, the maximum cost that may be paid by the occupant is to be reduced by a utility allowance prescribed by the commission. Persons or families are eligible occupants of affordable housing units if the household combined, adjusted gross income as defined by the commission is equal to or less than the following percentages of the median family income for the geographic area in which the residential unit is located, or the median family income for the state of Missouri, whichever is larger; ("geographic area" means the metropolitan area or county designated as an area by the federal Department of Housing and Urban Development under Section 8 of the United States Housing Act of 1937, as amended, for purposes of determining fair market rental rates):
Percent of State or
Geographic Area Family
Size of Household Median Income
One Person 35%
Two Persons 40%
Three Persons 45%
Four Persons 50%
Five Persons 54%
Six Persons 58%
Seven Persons 62%
Eight Persons 66%
(3) "Business firm", person, firm, a partner in a firm, corporation or a shareholder in an S corporation doing business in the state of Missouri and subject to the state income tax imposed by the provisions of chapter 143, RSMo, or a corporation subject to the annual corporation franchise tax imposed by the provisions of chapter 147, RSMo, or an insurance company paying an annual tax on its gross premium receipts in this state, or other financial institution paying taxes to the state of Missouri or any political subdivision of this state pursuant to the provisions of chapter 148, RSMo, or an express company which pays an annual tax on its gross receipts in this state;
(4) "Commission", the Missouri housing development commission;
(5) ["Community services", any type of counseling and advice, emergency assistance or medical care furnished to individuals or groups in the state of Missouri or transportation services at below-cost rates as provided in sections 208.250 to 208.275, RSMo;
(6) "Crime prevention", any activity which aids in the reduction of crime in the state of Missouri;
(7) "Defense industry contractor", a person, corporation or other entity which will be or has been negatively impacted as a result of its status as a prime contractor of the Department of Defense or as a second or third tier contractor. A "second tier contractor" means a person, corporation or other entity which contracts to perform manufacturing, maintenance or repair services for a prime contractor of the Department of Defense, and a "third tier contractor" means a person, corporation or other entity which contracts with a person, corporation or other entity which contracts with a prime contractor of the Department of Defense;
(8)] "Doing business", among other methods of doing business in the state of Missouri, a partner in a firm or a shareholder in an S corporation shall be deemed to be doing business in the state of Missouri if such firm or S corporation, as the case may be, is doing business in the state of Missouri;
[(9) "Economic development", the acquisition, renovation, improvement, or the furnishing or equipping of existing buildings and real estate in distressed or blighted areas of the state when such acquisition, renovation, improvement, or the furnishing or equipping of the business development projects will result in the creation or retention of jobs within the state; or, until June 30, 1996, a defense conversion pilot project located in a standard metropolitan statistical area which contains a city with a population of at least three hundred fifty thousand inhabitants, which will assist Missouri-based defense industry contractors in their conversion from predominately defense-related contracting to nondefense-oriented manufacturing. Only neighborhood organizations, as defined in subdivision (13) of this section, may apply to conduct economic development projects. Prior to the approval of an economic development project, the neighborhood organization shall enter into a contractual agreement with the department of economic development. Credits approved for economic development projects may not exceed four million dollars from within any one fiscal year's allocation, except that for fiscal years 2005, 2006, and 2007 credits approved for economic development projects shall not exceed six million dollars. Neighborhood assistance program tax credits for economic development projects and affordable housing assistance as defined in section 32.111 may be transferred, sold or assigned by a notarized endorsement thereof naming the transferee;
(10) "Education", any type of scholastic instruction or scholarship assistance to an individual who resides in the state of Missouri that enables the individual to prepare himself or herself for better opportunities or community awareness activities rendered by a statewide organization established for the purpose of archeological education and preservation;
(11) "Homeless assistance pilot project", the program established pursuant to section 32.117;
(12) "Job training", any type of instruction to an individual who resides in the state of Missouri that enables the individual to acquire vocational skills so that the individual can become employable or be able to seek a higher grade of employment;
(13)] (6) "Neighborhood organization", any organization performing community services or economic development activities in the state of Missouri and:
(a) Holding a ruling from the Internal Revenue Service of the United States Department of the Treasury that the organization is exempt from income taxation pursuant to the provisions of the Internal Revenue Code; or
(b) Incorporated in the state of Missouri as a not-for-profit corporation pursuant to the provisions of chapter 355, RSMo; or
(c) Designated as a community development corporation by the United States government pursuant to the provisions of Title VII of the Economic Opportunity Act of 1964;
[(14) "Physical revitalization", furnishing financial assistance, labor, material, or technical advice to aid in the physical improvement or rehabilitation of any part or all of a neighborhood area;
(15)] (7) "S corporation", a corporation described in Section 1361(a)(1) of the United States Internal Revenue Code and not subject to the taxes imposed by section 143.071, RSMo, by reason of section 143.471, RSMo;
[(16)] (8) "Workfare renovation project", any project initiated pursuant to sections 215.340 to 215.355, RSMo.
32.111. Any business firm which engages in providing affordable housing assistance activities or market rate housing in distressed communities as defined in section 135.530, RSMo, in the state of Missouri shall receive a tax credit as provided in section 32.115 if the commission or its delegate approves a proposal submitted by one or more business firms for the provision of affordable housing units or market rate housing in distressed communities or in accordance with the requirements of participation in the workfare renovation project in sections 215.340 to 215.355, RSMo. The proposal shall set forth the program of affordable housing to be conducted, the location and number of affordable housing units, the neighborhood area to be served, why the program is needed, the time period for which affordable housing units shall be provided, the estimated amount to be invested in the program, plans for implementing the program and a list of the business firms proposing to provide affordable housing assistance activities which are part of the proposal. The same type of information shall be provided in proposals for market rate housing in distressed communities. In the case of rental units of affordable housing, but not market rate housing in distressed communities, all proposals approved by the commission shall require a land use restriction agreement stating the provision of affordable housing on such property for a time period deemed reasonable by the commission. In the case of owner-occupied units of affordable housing, all proposals approved by the commission shall require a land use restriction agreement for a time period deemed reasonable by the commission requiring any subsequent owner, except a lender with a security interest in the property, to be an owner occupant whose income at the time of acquisition is at or below the level described in section 32.105, and further requiring the acquisition price to any subsequent owner shall not exceed by more than a five percent annual appreciation the acquisition price to the original, eligible owner at the time tax credits are first claimed. The land use restriction agreement shall constitute a lien as described in subdivision (4) of subsection [3] 2 of section 32.115. The restriction shall be approved by the property owner and shall be binding on any subsequent owner of the property unless otherwise approved by the commission. In approving a proposal, the commission may authorize the use of tax credits by one or more of the business firms listed in the proposal and shall establish specific requirements regarding the degree of completion of affordable housing assistance activities or market rate housing activities in distressed communities necessary to be eligible for tax credits provided pursuant to this section. If, in the opinion of the commission or its delegate, a business firm's investment can more consistently with the purposes of this section be made through a neighborhood organization, tax credits may be allowed as provided in this section. The commission may approve requests for multiyear credit commitments provided eligibility is maintained. The commission or its delegate is hereby authorized to promulgate rules and regulations for establishing criteria for evaluating such proposals by business firms for approval or disapproval, for establishing housing priorities for approval or disapproval of such proposals by business firms, and for the certification of eligibility for tax credits authorized pursuant to this section. The decision of the commission or its delegate to approve or disapprove a proposal pursuant to this section shall be in writing, and if approved, the maximum credit allowable to the business firm shall be stated. A copy of the decision of the commission or its delegate shall be transmitted to the director of revenue and to the governor. A copy of the certification approved by the commission and a statement of the total amount of credits approved by the commission, the amount of credits previously taken by the taxpayer and the amount being claimed for the current tax year shall be filed in a manner and form designated by the director of revenue for any tax year in which a tax credit is being claimed.
32.115. 1. The department of revenue shall grant a tax credit, to be applied in the following order until used, against:
(1) The annual tax on gross premium receipts of insurance companies in chapter 148, RSMo;
(2) The tax on banks determined pursuant to subdivision (2) of subsection 2 of section 148.030, RSMo;
(3) The tax on banks determined in subdivision (1) of subsection 2 of section 148.030, RSMo;
(4) The tax on other financial institutions in chapter 148, RSMo;
(5) The corporation franchise tax in chapter 147, RSMo;
(6) The state income tax in chapter 143, RSMo; and
(7) The annual tax on gross receipts of express companies in chapter 153, RSMo.
2. [For proposals approved pursuant to section 32.110:
(1) The amount of the tax credit shall not exceed fifty percent of the total amount contributed during the taxable year by the business firm or, in the case of a financial institution, where applicable, during the relevant income period in programs approved pursuant to section 32.110;
(2) Except as provided in subsection 2 or 5 of this section, a tax credit of up to seventy percent may be allowed for contributions to programs where activities fall within the scope of special program priorities as defined with the approval of the governor in regulations promulgated by the director of the department of economic development;
(3) Except as provided in subsection 2 or 5 of this section, the tax credit allowed for contributions to programs located in any community shall be equal to seventy percent of the total amount contributed where such community is a city, town or village which has fifteen thousand or less inhabitants as of the last decennial census and is located in a county which is either located in:
(a) An area that is not part of a standard metropolitan statistical area;
(b) A standard metropolitan statistical area but such county has only one city, town or village which has more than fifteen thousand inhabitants; or
(c) A standard metropolitan statistical area and a substantial number of persons in such county derive their income from agriculture.
Such community may also be in an unincorporated area in such county as provided in subdivision (1), (2) or (3) of this subsection. Except in no case shall the total economic benefit of the combined federal and state tax savings to the taxpayer exceed the amount contributed by the taxpayer during the tax year;
(4) Such tax credit allocation, equal to seventy percent of the total amount contributed, shall not exceed four million dollars in fiscal year 1999 and six million dollars in fiscal year 2000 and any subsequent fiscal year. When the maximum dollar limit on the seventy percent tax credit allocation is committed, the tax credit allocation for such programs shall then be equal to fifty percent credit of the total amount contributed. Regulations establishing special program priorities are to be promulgated during the first month of each fiscal year and at such times during the year as the public interest dictates. Such credit shall not exceed two hundred and fifty thousand dollars annually except as provided in subdivision (5) of this subsection. No tax credit shall be approved for any bank, bank and trust company, insurance company, trust company, national bank, savings association, or building and loan association for activities that are a part of its normal course of business. Any tax credit not used in the period the contribution was made may be carried over the next five succeeding calendar or fiscal years until the full credit has been claimed. Except as otherwise provided for proposals approved pursuant to section 32.111, 32.112 or 32.117, in no event shall the total amount of all other tax credits allowed pursuant to sections 32.100 to 32.125 exceed thirty-two million dollars in any one fiscal year, of which six million shall be credits allowed pursuant to section 135.460, RSMo. If six million dollars in credits are not approved, then the remaining credits may be used for programs approved pursuant to sections 32.100 to 32.125;
(5) The credit may exceed two hundred fifty thousand dollars annually and shall not be limited if community services, crime prevention, education, job training, physical revitalization or economic development, as defined by section 32.105, is rendered in an area defined by federal or state law as an impoverished, economically distressed, or blighted area or as a neighborhood experiencing problems endangering its existence as a viable and stable neighborhood, or if the community services, crime prevention, education, job training, physical revitalization or economic development is limited to impoverished persons.
3.] For proposals approved pursuant to section 32.111:
(1) The amount of the tax credit shall not exceed fifty-five percent of the total amount invested in affordable housing assistance activities or market rate housing in distressed communities as defined in section 135.530, RSMo, by a business firm. Whenever such investment is made in the form of an equity investment or a loan, as opposed to a donation alone, tax credits may be claimed only where the loan or equity investment is accompanied by a donation which is eligible for federal income tax charitable deduction, and where the total value of the tax credits herein plus the value of the federal income tax charitable deduction is less than or equal to the value of the donation. Any tax credit not used in the period for which the credit was approved may be carried over the next ten succeeding calendar or fiscal years until the full credit has been allowed. If the affordable housing units or market rate housing units in distressed communities for which a tax is claimed are within a larger structure, parts of which are not the subject of a tax credit claim, then expenditures applicable to the entire structure shall be reduced on a prorated basis in proportion to the ratio of the number of square feet devoted to the affordable housing units or market rate housing units in distressed communities, for purposes of determining the amount of the tax credit[. The total amount of tax credit granted for programs approved pursuant to section 32.111 for the fiscal year beginning July 1, 1991, shall not exceed two million dollars, to be increased by no more than two million dollars each succeeding fiscal year, until the total tax credits that may be approved reaches ten million dollars in any fiscal year];
(2) For any year during the compliance period indicated in the land use restriction agreement, the owner of the affordable housing rental units for which a credit is being claimed shall certify to the commission that all tenants renting claimed units are income eligible for affordable housing units and that the rentals for each claimed unit are in compliance with the provisions of sections 32.100 to 32.125. The commission is authorized, in its discretion, to audit the records and accounts of the owner to verify such certification;
(3) In the case of owner-occupied affordable housing units, the qualifying owner occupant shall, before the end of the first year in which credits are claimed, certify to the commission that the occupant is income eligible during the preceding two years, and at the time of the initial purchase contract, but not thereafter. The qualifying owner occupant shall further certify to the commission, before the end of the first year in which credits are claimed, that during the compliance period indicated in the land use restriction agreement, the cost of the affordable housing unit to the occupant for the claimed unit can reasonably be projected to be in compliance with the provisions of sections 32.100 to 32.125. Any succeeding owner occupant acquiring the affordable housing unit during the compliance period indicated in the land use restriction agreement shall make the same certification;
(4) If at any time during the compliance period the commission determines a project for which a proposal has been approved is not in compliance with the applicable provisions of sections 32.100 to 32.125 or rules promulgated therefor, the commission may within one hundred fifty days of notice to the owner either seek injunctive enforcement action against the owner, or seek legal damages against the owner representing the value of the tax credits, or foreclose on the lien in the land use restriction agreement, selling the project at a public sale, and paying to the owner the proceeds of the sale, less the costs of the sale and less the value of all tax credits allowed herein. The commission shall remit to the director of revenue the portion of the legal damages collected or the sale proceeds representing the value of the tax credits. However, except in the event of intentional fraud by the taxpayer, the proposal's certificate of eligibility for tax credits shall not be revoked.
[4.] 3. For proposals approved pursuant to section 32.112, the amount of the tax credit shall not exceed fifty-five percent of the total amount contributed to a neighborhood organization by business firms. Any tax credit not used in the period for which the credit was approved may be carried over the next ten succeeding calendar or fiscal years until the full credit has been allowed. The total amount of tax credit granted for programs approved pursuant to section 32.112 shall not exceed one million dollars for each fiscal year.
[5.] 4. The total amount of tax credits used for market rate housing in distressed communities pursuant to sections 32.100 to 32.125 shall not exceed thirty percent of the total amount of all tax credits authorized pursuant to sections 32.111 and 32.112.
33.282. 1. Subject to appropriation the office of administration shall develop a tax expenditure budget for submission to the general assembly in conjunction with the submission of the state budget as required in section 33.280. The tax expenditure budget shall indicate, on an annual basis, the reduction in revenue collections for each fiscal year as a result of each deduction, exemption, credit or other tax preference as may be authorized by law, and shall indicate, where appropriate, the tax source of each state-funded program. Periodically the tax expenditure budget shall include a cost-benefit analysis of the following:
(1) The neighborhood assistance program, sections 32.100 to 32.125, RSMo;
(2) Tax increment financing, sections 99.800 to 99.865, RSMo;
(3) Export and infrastructure funding, sections 100.250 to 100.297, RSMo;
(4) Credit for new expanded business facility, sections 135.100 to 135.150, RSMo;
(5) Enterprise zones, sections 135.200 to 135.256, RSMo;
(6) Main street program, sections 251.470 to 251.485, RSMo;
(7) Economic development districts, sections 251.500 to 251.510, RSMo;
(8) Rural economic development, sections 620.155 to 620.165, RSMo;
(9) Export development, sections 620.170 to 620.174, RSMo; and
(10) [Small business incubator program, section 620.495, RSMo; and
(11)] Other programs as may be practical. Pursuant to the provisions of section 32.057, RSMo, the department of revenue shall not release information as part of the tax expenditure budget in a manner that would allow the identification of any individual taxpayer.
2. On or before October first of each year each state department authorized by law to offer deductions, exemptions, credits or other tax preferences shall submit to the budget director the estimated amount of such tax expenditures for the fiscal year beginning July first of the following year and a cost/benefit analysis of such tax expenditures for the preceding fiscal year. Such estimates and analysis shall be in the manner and form prescribed by the budget director and shall be submitted by the budget director to the chairman of the senate appropriations committee and the chairman of the house budget committee by January first of each year.
3. No new tax credits, except the senior citizens property tax credit as referenced in chapter 135, RSMo, shall be issued or certified for any tax year beginning after July first of the following year unless the estimate of such credits have been reviewed and approved by a majority of the senate appropriations committee and the house budget committee.
41.655. 1. The governing body or county planning commission, if any, of any county of the second classification with more than forty-eight thousand two hundred but fewer than forty-eight thousand three hundred inhabitants shall provide for the planning, zoning, subdivision and building within all or any portion of the unincorporated area extending three thousand feet outward from the boundaries of any military base located in such county and the area within the perimeter of accident potential zones one and two [if the county has a zoning commission and a board of adjustment established under sections 64.510 to 64.727, RSMo]. As used in this section, the term "accident potential zones one and two" means any land area [that was] identified in the [April, 1976] current Air Installation Compatible Use Zone Report at the north and south ends of the clear zone of a military installation located in any county of the second classification with more than forty-eight thousand two hundred but fewer than forty-eight thousand three hundred inhabitants and which is in significant danger of aircraft accidents by being beneath that airspace where the potential for aircraft accidents is most likely to occur.
2. The governing body of any county of the second classification with more than forty-eight thousand two hundred but fewer than forty-eight thousand three hundred inhabitants may adopt, administer, and enforce airport hazard area zoning regulations that are substantially similar to the airport hazard area zoning regulations in sections 67.1200 to 67.1222, RSMo, subject to any exceptions listed in this section. Such exceptions are as follows:
(1) All definitions in section 67.1200, RSMo, shall apply, except that any reference to a political subdivision in sections 67.1200 to 67.1222, RSMo, shall be construed to include any county of the second classification with more than forty-eight thousand two hundred but fewer than forty-eight thousand three hundred inhabitants;
(2) Sections 67.1207 and 67.1212, RSMo, shall not apply;
(3) The county shall employ any existing airport planning commission or airport zoning commission as created in section 67.1210, RSMo, or shall form such commission, with the following exceptions:
(a) The commission shall consist of five members as follows:
a. Three residents of the county, with at least two of such county residents residing in the township containing the military base;
b. The presiding county commissioner or such commissioner's designee; and
c. The county road commissioner;
(b) The commission may appoint an ex officio military liaison from the armed forces of the United States who is appointed by the installation commander;
(c) The terms of office of each member under this section shall be identical to the terms of office in section 67.1210, RSMo, with the member chosen to serve as chair serving for an initial term of two years. The commission shall elect its chairman;
(4) Sections 67.1214 to 67.1218, and section 67.1222, RSMo, shall apply in their entirety, except that any reference to a municipality in such sections shall be construed to include any county of the second classification with more than forty-eight thousand two hundred but fewer than forty-eight thousand three hundred inhabitants;
(5) Section 67.1220 shall apply in its entirety, except that the board of variance shall consist of three members as follows:
(a) Three residents of the county, with at least two of such county residents residing in the township containing the military base;
(b) The board shall elect its chairman.
41.1010. 1. There is hereby established the "Missouri Military Preparedness and Enhancement Commission". The commission shall have as its purpose the design and implementation of measures intended to protect, retain, and enhance the present and future mission capabilities at the military posts or bases within the state. The commission shall consist of nine members:
(1) Five members to be appointed by the governor;
(2) Two members of the house of representatives, one appointed by the speaker of the house of representatives, and one appointed by the minority floor leader;
(3) Two members of the senate, one appointed by the president pro tempore, and one appointed by the minority floor leader[;
(4) The director of the department of economic development or the director's designee, ex officio].
In addition, the director of the department of economic development or the director's designee, and the chairman of the Missouri veterans' commission or the chairman's designee, shall be ex officio members of the commission. No more than three of the five members appointed by the governor shall be of the same political party. To be eligible for appointment by the governor, a person shall have demonstrated experience in economic development, the defense industry, military installation operation, environmental issues, finance, local government, or the use of air space for future military missions. Appointed members of the commission shall serve three-year terms, except that of the initial appointments made by the governor, two shall be for one-year terms, two shall be for two-year terms, and one shall be for a three-year term. No appointed member of the commission shall serve more than six years total. A vacancy occurs if a legislative member leaves office for any reason. Any vacancy on the commission shall be filled in the same manner as the original appointment.
2. Members of the commission shall be reimbursed for the actual and necessary expenses incurred in the discharge of the member's official duties.
3. A chair of the commission shall be selected by the members of the commission.
4. The commission shall meet at least quarterly and at such other times as the chair deems necessary.
5. The commission shall be funded by an appropriation limited to that purpose. Any expenditure constituting more than ten percent of the commission's annual appropriation shall be based on a competitive bid process.
6. The commission shall:
(1) Advise the governor and the general assembly on military issues and economic and industrial development related to military issues;
(2) Make recommendations regarding:
(a) Developing policies and plans to support the long-term viability and prosperity of the military, active and civilian, in this state, including promoting strategic regional alliances that may extend over state lines;
(b) Developing methods to improve private and public employment opportunities for former members of the military residing in this state; and
(c) Developing methods to assist defense-dependent communities in the design and execution of programs that enhance a community's relationship with military installations and defense-related businesses;
(3) Provide information to communities, the general assembly, the state's congressional delegation, and state agencies regarding federal actions affecting military installations and missions;
(4) Serve as a clearinghouse for:
(a) Defense economic adjustment and transition information and activities; and
(b) Information concerning the following:
a. Issues related to the operating costs, missions, and strategic value of federal military installations located in the state;
b. Employment issues for communities that depend on defense bases and in defense-related businesses; and
c. Defense strategies and incentive programs that other states are using to maintain, expand, and attract new defense contractors;
(5) Provide assistance to communities that have experienced a defense-related closure or realignment;
(6) Assist communities in the design and execution of programs that enhance a community's relationship with military installations and defense-related businesses, including regional alliances that may extend over state lines;
(7) Assist communities in the retention and recruiting of defense-related businesses, including fostering strategic regional alliances that may extend over state lines;
(8) Prepare a biennial strategic plan that:
(a) Fosters the enhancement of military value of the contributions of Missouri military installations to national defense strategies;
(b) Considers all current and anticipated base realignment and closure criteria; and
(c) Develops strategies to protect the state's existing military missions and positions the state to be competitive for new and expanded military missions;
(9) Encourage economic development in this state by fostering the development of industries related to defense affairs.
7. The commission shall prepare and present an annual report to the governor and the general assembly by December thirty-first of each year.
8. The department of economic development shall furnish administrative support and staff for the effective operation of the commission.
42.007. 1. There is hereby established within the department of public safety the "Missouri Veterans' Commission", such commission to be a type III agency within the department of public safety under the Omnibus State Reorganization Act of 1974. All duties and activities carried on by the division of veterans' affairs on August 28, 1989, shall be vested in such commission as provided by the Omnibus Reorganization Act of 1974.
2. The commission shall be composed of five members, who shall be veterans appointed by the governor, with the advice and consent of the senate, for a four-year term; except that initial appointments to the commission shall consist of two veterans to serve four-year terms, two veterans to serve three-year terms, and one veteran to serve a two-year term. In addition, the chair of the Missouri military preparedness and enhancement commission or the chair's designee shall be an ex officio member of the commission.
3. The governor shall make all appointments to the commission from lists of nominees recommended by each of the statewide veterans' organizations incorporated in this state, chartered by Congress, or authorized under Title 38, United States Code. Vacancies shall be filled by appointment made in the same manner as the original appointments. A member of the commission shall be a resident of the state of Missouri but shall not be an employee of the state. Members of the commission shall not be compensated for their services, but shall be reimbursed from funds appropriated therefor for actual and necessary expenses incurred in the performance of their duties.
4. The commission shall organize by electing one member as chairman and another as vice chairman. Such officers shall serve for a term of two years. The commission shall meet no fewer than four times per calendar year, at the call of the chairman, and at times and places established by the chairman by written notice. The commission's executive director shall serve as secretary to the commission.
5. The commission shall aid and assist all veterans and their dependents and legal representatives, who live in the state of Missouri, in all matters relating to the rights of veterans under the laws of the United States and under the rules and regulations of federal agencies, boards, commissions and other authorities which are in any manner concerned with the interest and welfare of veterans and their dependents. In addition to any other duties imposed by sections 42.002 to 42.135 and section 143.1001, RSMo, the commission shall:
(1) Disseminate by all means available information concerning the rights of veterans and their dependents;
(2) Provide aid and assistance to all veterans, their dependents and legal representatives, in preparing, presenting and prosecuting claims for compensation, education, pensions, insurance benefits, hospitalization, rehabilitation and all other matters in which a veteran may have a claim against the United States or any state arising out of or connected with service in the military forces of the United States;
(3) Prosecute all claims listed in subdivision (2) of this subsection to conclusion, when so authorized and empowered by a veteran, his survivors or legal representatives;
(4) Cooperate with the United States Employment Service, the United States Department of Veterans' Affairs and all federal and state offices legally concerned with and interested in the welfare of veterans and their dependents;
(5) Arrange for and accept through such mutual arrangements as may be made, the volunteer services, equipment, facilities, properties, supplies, funds and personnel of all federal, welfare, civic and service organizations, and other organized groups and individuals which are in furtherance of the purposes of sections 42.002 to 42.135 and section 143.1001, RSMo;
(6) Volunteers shall be deemed unpaid employees and shall be accorded the protection of the legal expense fund and liability provisions. Reimbursement for transportation and other necessary expenses may be furnished to those volunteers whose presence on special assignment is determined to be necessary by the commission. Such expenses shall be reimbursed from the regular appropriations of the commission. Volunteers may utilize state vehicles in the performance of commission-related duties, subject to those rules and regulations governing use of state vehicles by paid staff;
(7) Establish, maintain and operate offices throughout this state as necessary to carry out the purposes of sections 42.002 to 42.135 and section 143.1001, RSMo;
(8) Provide to the executive director of the commission all appropriate authority for the execution of the duties of the commission under this chapter;
(9) Employ such staff as necessary for performance of the duties and purposes of this chapter.
99.845. 1. A municipality, either at the time a redevelopment project is approved or, in the event a municipality has undertaken acts establishing a redevelopment plan and redevelopment project and has designated a redevelopment area after the passage and approval of sections 99.800 to 99.865 but prior to August 13, 1982, which acts are in conformance with the procedures of sections 99.800 to 99.865, may adopt tax increment allocation financing by passing an ordinance providing that after the total equalized assessed valuation of the taxable real property in a redevelopment project exceeds the certified total initial equalized assessed valuation of the taxable real property in the redevelopment project, the ad valorem taxes, and payments in lieu of taxes, if any, arising from the levies upon taxable real property in such redevelopment project by taxing districts and tax rates determined in the manner provided in subsection 2 of section 99.855 each year after the effective date of the ordinance until redevelopment costs have been paid shall be divided as follows:
(1) That portion of taxes, penalties and interest levied upon each taxable lot, block, tract, or parcel of real property which is attributable to the initial equalized assessed value of each such taxable lot, block, tract, or parcel of real property in the area selected for the redevelopment project shall be allocated to and, when collected, shall be paid by the county collector to the respective affected taxing districts in the manner required by law in the absence of the adoption of tax increment allocation financing;
(2) (a) Payments in lieu of taxes attributable to the increase in the current equalized assessed valuation of each taxable lot, block, tract, or parcel of real property in the area selected for the redevelopment project and any applicable penalty and interest over and above the initial equalized assessed value of each such unit of property in the area selected for the redevelopment project shall be allocated to and, when collected, shall be paid to the municipal treasurer who shall deposit such payment in lieu of taxes into a special fund called the "Special Allocation Fund" of the municipality for the purpose of paying redevelopment costs and obligations incurred in the payment thereof. Payments in lieu of taxes which are due and owing shall constitute a lien against the real estate of the redevelopment project from which they are derived and shall be collected in the same manner as the real property tax, including the assessment of penalties and interest where applicable. The municipality may, in the ordinance, pledge the funds in the special allocation fund for the payment of such costs and obligations and provide for the collection of payments in lieu of taxes, the lien of which may be foreclosed in the same manner as a special assessment lien as provided in section 88.861, RSMo. No part of the current equalized assessed valuation of each lot, block, tract, or parcel of property in the area selected for the redevelopment project attributable to any increase above the total initial equalized assessed value of such properties shall be used in calculating the general state school aid formula provided for in section 163.031, RSMo, until such time as all redevelopment costs have been paid as provided for in this section and section 99.850;
(b) Notwithstanding any provisions of this section to the contrary, for purposes of determining the limitation on indebtedness of local government pursuant to article VI, section 26(b) of the Missouri Constitution, the current equalized assessed value of the property in an area selected for redevelopment attributable to the increase above the total initial equalized assessed valuation shall be included in the value of taxable tangible property as shown on the last completed assessment for state or county purposes;
(c) The county assessor shall include the current assessed value of all property within the taxing district in the aggregate valuation of assessed property entered upon the assessor's book and verified pursuant to section 137.245, RSMo, and such value shall be utilized for the purpose of the debt limitation on local government pursuant to article VI, section 26(b) of the Missouri Constitution;
(3) For purposes of this section, "levies upon taxable real property in such redevelopment project by taxing districts" shall not include the blind pension fund tax levied under the authority of article III, section 38(b) of the Missouri Constitution, or the merchants' and manufacturers' inventory replacement tax levied under the authority of subsection 2 of section 6 of article X of the Missouri Constitution, except in redevelopment project areas in which tax increment financing has been adopted by ordinance pursuant to a plan approved by vote of the governing body of the municipality taken after August 13, 1982, and before January 1, 1998.
2. In addition to the payments in lieu of taxes described in subdivision (2) of subsection 1 of this section, for redevelopment plans and projects adopted or redevelopment projects approved by ordinance after July 12, 1990, and prior to August 31, 1991, fifty percent of the total additional revenue from taxes, penalties and interest imposed by the municipality, or other taxing districts, which are generated by economic activities within the area of the redevelopment project over the amount of such taxes generated by economic activities within the area of the redevelopment project in the calendar year prior to the adoption of the redevelopment project by ordinance, while tax increment financing remains in effect, but excluding taxes imposed on sales or charges for sleeping rooms paid by transient guests of hotels and motels, taxes levied pursuant to section 70.500, RSMo, licenses, fees or special assessments other than payments in lieu of taxes and any penalty and interest thereon, or, effective January 1, 1998, taxes levied pursuant to section 94.660, RSMo, for the purpose of public transportation, shall be allocated to, and paid by the local political subdivision collecting officer to the treasurer or other designated financial officer of the municipality, who shall deposit such funds in a separate segregated account within the special allocation fund. Any provision of an agreement, contract or covenant entered into prior to July 12, 1990, between a municipality and any other political subdivision which provides for an appropriation of other municipal revenues to the special allocation fund shall be and remain enforceable.
3. In addition to the payments in lieu of taxes described in subdivision (2) of subsection 1 of this section, for redevelopment plans and projects adopted or redevelopment projects approved by ordinance after August 31, 1991, fifty percent of the total additional revenue from taxes, penalties and interest which are imposed by the municipality or other taxing districts, and which are generated by economic activities within the area of the redevelopment project over the amount of such taxes generated by economic activities within the area of the redevelopment project in the calendar year prior to the adoption of the redevelopment project by ordinance, while tax increment financing remains in effect, but excluding personal property taxes, taxes imposed on sales or charges for sleeping rooms paid by transient guests of hotels and motels, taxes levied pursuant to section 70.500, RSMo, or effective January 1, 1998, taxes levied for the purpose of public transportation pursuant to section 94.660, RSMo, licenses, fees or special assessments other than payments in lieu of taxes and penalties and interest thereon, shall be allocated to, and paid by the local political subdivision collecting officer to the treasurer or other designated financial officer of the municipality, who shall deposit such funds in a separate segregated account within the special allocation fund.
4. Beginning January 1, 1998, for redevelopment plans and projects adopted or redevelopment projects approved by ordinance and which have complied with subsections 4 to 12 of this section, in addition to the payments in lieu of taxes and economic activity taxes described in subsections 1, 2 and 3 of this section, up to fifty percent of the new state revenues, as defined in subsection 8 of this section, estimated for the businesses within the project area and identified by the municipality in the application required by subsection 10 of this section, over and above the amount of such taxes reported by businesses within the project area as identified by the municipality in their application prior to the approval of the redevelopment project by ordinance, while tax increment financing remains in effect, may be available for appropriation by the general assembly as provided in subsection 10 of this section to the department of economic development supplemental tax increment financing fund, from the general revenue fund, for distribution to the treasurer or other designated financial officer of the municipality with approved plans or projects.
5. The treasurer or other designated financial officer of the municipality with approved plans or projects shall deposit such funds in a separate segregated account within the special allocation fund established pursuant to section 99.805.
6. No transfer from the general revenue fund to the Missouri supplemental tax increment financing fund shall be made unless an appropriation is made from the general revenue fund for that purpose. No municipality shall commit any state revenues prior to an appropriation being made for that project. For all redevelopment plans or projects adopted or approved after December 23, 1997, appropriations from the new state revenues shall not be distributed from the Missouri supplemental tax increment financing fund into the special allocation fund unless the municipality's redevelopment plan ensures that one hundred percent of payments in lieu of taxes and fifty percent of economic activity taxes generated by the project shall be used for eligible redevelopment project costs while tax increment financing remains in effect. This account shall be separate from the account into which payments in lieu of taxes are deposited, and separate from the account into which economic activity taxes are deposited.
7. In order for the redevelopment plan or project to be eligible to receive the revenue described in subsection 4 of this section, the municipality shall comply with the requirements of subsection 10 of this section prior to the time the project or plan is adopted or approved by ordinance. The director of the department of economic development and the commissioner of the office of administration may waive the requirement that the municipality's application be submitted prior to the redevelopment plan's or project's adoption or the redevelopment plan's or project's approval by ordinance.
8. For purposes of this section, "new state revenues" means:
(1) The incremental increase in the general revenue portion of state sales tax revenues [received pursuant to section 144.020, RSMo] in the redevelopment project area, excluding sales taxes that are constitutionally dedicated, taxes deposited to the school district trust fund in accordance with section 144.701, RSMo, sales and use taxes on motor vehicles, trailers, boats and outboard motors and future sales taxes earmarked by law. The incremental increase shall be calculated by first adding the state sales tax revenues generated in the redevelopment project area in the calendar year prior to the adoption of an ordinance by the municipality approving a redevelopment project and the state sales tax revenue generated by businesses that have relocated into the project area from within the state in the calendar year prior to their relocation. The resulting sum shall be subtracted from the current year's state sales tax revenue generated in the redevelopment project area. In no event shall the incremental increase include any amounts attributable to retail sales generated by businesses that were not located in the project area in the calendar year prior to the adoption of an ordinance by the municipality approving a redevelopment project, unless the municipality or authority has proven to the [Missouri development finance board and the] department of economic development and [such entities have made a finding that the sales tax increment attributable to retail sales is from new sources which did not exist in the state during the baseline year. The incremental increase in the general revenue portion of state sales tax revenues for an existing or relocated facility shall be the amount that current state sales tax revenue exceeds the state sales tax revenue in the base year as stated in the redevelopment plan as provided in subsection 10 of this section] the department has made a finding that the retail sales do not consist of retail sales displaced from existing businesses within the state; or
(2) The state income tax withheld on behalf of new employees by the employer pursuant to section 143.221, RSMo, at the business located within the project as identified by the municipality. The state income tax withholding allowed by this section shall be the municipality's estimate of the amount of state income tax withheld by the employer within the redevelopment area for new employees who fill new jobs directly created by the tax increment financing project.
9. Subsection 4 of this section shall apply only to blighted areas located in enterprise zones, pursuant to sections 135.200 to 135.256, RSMo, blighted areas located in federal empowerment zones, or to blighted areas located in central business districts or urban core areas of cities which districts or urban core areas at the time of approval of the project by ordinance, provided that the enterprise zones, federal empowerment zones or blighted areas contained one or more buildings at least fifty years old; and
(1) Suffered from generally declining population or property taxes over the twenty-year period immediately preceding the area's designation as a project area by ordinance; or
(2) Was a historic hotel located in a county of the first classification without a charter form of government with a population according to the most recent federal decennial census in excess of one hundred fifty thousand and containing a portion of a city with a population according to the most recent federal decennial census in excess of three hundred fifty thousand.
10. The initial appropriation of up to fifty percent of the new state revenues authorized pursuant to subsections 4 and 5 of this section shall not be made to or distributed by the department of economic development to a municipality until all of the following conditions have been satisfied:
(1) The director of the department of economic development or his or her designee and the commissioner of the office of administration or his or her designee have approved a tax increment financing application made by the municipality for the appropriation of the new state revenues. The municipality shall include in the application the following items in addition to the items in section 99.810:
(a) The tax increment financing district or redevelopment area, including the businesses identified within the redevelopment area;
(b) The base year of state sales tax revenues or the base year of state income tax withheld on behalf of existing employees, reported by existing businesses within the project area prior to approval of the redevelopment project;
(c) The estimate of the incremental increase in the general revenue portion of state sales tax revenue or the estimate for the state income tax withheld by the employer on behalf of new employees expected to fill new jobs created within the redevelopment area after redevelopment;
(d) The official statement of any bond issue pursuant to this subsection after December 23, 1997;
(e) An affidavit that is signed by the developer or developers attesting that the provisions of subdivision (1) of section 99.810 have been met and specifying that the redevelopment area would not be reasonably anticipated to be developed without the appropriation of the new state revenues;
(f) The cost-benefit analysis required by section 99.810 includes a study of the fiscal impact on the state of Missouri; and
(g) The statement of election between the use of the incremental increase of the general revenue portion of the state sales tax revenues or the state income tax withheld by employers on behalf of new employees who fill new jobs created in the redevelopment area;
(h) The name, street and mailing address, and phone number of the mayor or chief executive officer of the municipality;
(i) The street address of the development site;
(j) The three-digit North American Industry Classification System number or numbers characterizing the development project;
(k) The estimated development project costs;
(l) The anticipated sources of funds to pay such development project costs;
(m) Evidence of the commitments to finance such development project costs;
(n) The anticipated type and term of the sources of funds to pay such development project costs;
(o) The anticipated type and terms of the obligations to be issued;
(p) The most recent equalized assessed valuation of the property within the development project area;
(q) An estimate as to the equalized assessed valuation after the development project area is developed in accordance with a development plan;
(r) The general land uses to apply in the development area;
(s) The total number of individuals employed in the development area, broken down by full-time, part-time, and temporary positions;
(t) The total number of full-time equivalent positions in the development area;
(u) The current gross wages, state income tax withholdings, and federal income tax withholdings for individuals employed in the development area;
(v) The total number of individuals employed in this state by the corporate parent of any business benefiting from public expenditures in the development area, and all subsidiaries thereof, as of December thirty-first of the prior fiscal year, broken down by full-time, part-time, and temporary positions;
(w) The number of new jobs to be created by any business benefiting from public expenditures in the development area, broken down by full-time, part-time, and temporary positions;
(x) The average hourly wage to be paid to all current and new employees at the project site, broken down by full-time, part-time, and temporary positions;
(y) For project sites located in a metropolitan statistical area, as defined by the federal Office of Management and Budget, the average hourly wage paid to nonmanagerial employees in this state for the industries involved at the project, as established by the United States Bureau of Labor Statistics;
(z) For project sites located outside of metropolitan statistical areas, the average weekly wage paid to nonmanagerial employees in the county for industries involved at the project, as established by the United States Department of Commerce;
(aa) A list of other community and economic benefits to result from the project;
(bb) A list of all development subsidies that any business benefiting from public expenditures in the development area has previously received for the project, and the name of any other granting body from which such subsidies are sought;
(cc) A list of all other public investments made or to be made by this state or units of local government to support infrastructure or other needs generated by the project for which the funding pursuant to this section is being sought;
(dd) A statement as to whether the development project may reduce employment at any other site, within or without the state, resulting from automation, merger, acquisition, corporate restructuring, relocation, or other business activity;
(ee) A statement as to whether or not the project involves the relocation of work from another address and if so, the number of jobs to be relocated and the address from which they are to be relocated;
(ff) A list of competing businesses in the county containing the development area and in each contiguous county;
(gg) A market study for the development area;
(hh) A certification by the chief officer of the applicant as to the accuracy of the development plan;
(2) The methodologies used in the application for determining the base year and determining the estimate of the incremental increase in the general revenue portion of the state sales tax revenues or the state income tax withheld by employers on behalf of new employees who fill new jobs created in the redevelopment area shall be approved by the director of the department of economic development or his or her designee and the commissioner of the office of administration or his or her designee. Upon approval of the application, the director of the department of economic development or his or her designee and the commissioner of the office of administration or his or her designee shall issue a certificate of approval. The department of economic development may request the appropriation following application approval;
(3) The appropriation shall be either a portion of the estimate of the incremental increase in the general revenue portion of state sales tax revenues in the redevelopment area or a portion of the estimate of the state income tax withheld by the employer on behalf of new employees who fill new jobs created in the redevelopment area as indicated in the municipality's application, approved by the director of the department of economic development or his or her designee and the commissioner of the office of administration or his or her designee. At no time shall the annual amount of the new state revenues approved for disbursements from the Missouri supplemental tax increment financing fund exceed [thirty-two] fifty million dollars;
(4) Redevelopment plans and projects receiving new state revenues shall have a duration of up to fifteen years, unless prior approval for a longer term is given by the director of the department of economic development or his or her designee and the commissioner of the office of administration or his or her designee; except that, in no case shall the duration exceed twenty-three years.
11. In addition to the areas authorized in subsection 9 of this section, the funding authorized pursuant to subsection 4 of this section shall also be available in a federally approved levee district, where construction of a levee begins after December 23, 1997, and which is contained within a county of the first classification without a charter form of government with a population between fifty thousand and one hundred thousand inhabitants which contains all or part of a city with a population in excess of four hundred thousand or more inhabitants.
12. There is hereby established within the state treasury a special fund to be known as the "Missouri Supplemental Tax Increment Financing Fund", to be administered by the department of economic development. The department shall annually distribute from the Missouri supplemental tax increment financing fund the amount of the new state revenues as appropriated as provided in the provisions of subsections 4 and 5 of this section if and only if the conditions of subsection 10 of this section are met. The fund shall also consist of any gifts, contributions, grants or bequests received from federal, private or other sources. Moneys in the Missouri supplemental tax increment financing fund shall be disbursed per project pursuant to state appropriations.
13. Redevelopment project costs may include, at the prerogative of the state, the portion of salaries and expenses of the department of economic development and the department of revenue reasonably allocable to each redevelopment project approved for disbursements from the Missouri supplemental tax increment financing fund for the ongoing administrative functions associated with such redevelopment project. Such amounts shall be recovered from new state revenues deposited into the Missouri supplemental tax increment financing fund created under this section.
14. For redevelopment plans or projects approved by ordinance that result in net new jobs from the relocation of a national headquarters from another state to the area of the redevelopment project, the economic activity taxes and new state tax revenues shall not be based on a calculation of the incremental increase in taxes as compared to the base year or prior calendar year for such redevelopment project, rather the incremental increase shall be the amount of total taxes generated from the net new jobs brought in by the national headquarters from another state. In no event shall this subsection be construed to allow a redevelopment project to receive an appropriation in excess of up to fifty percent of the new state revenues.
99.847. 1. Notwithstanding the provisions of sections 99.800 to 99.865 to the contrary, no new tax increment financing project shall be authorized in any area which is within an area designated as a one hundred year flood plain by the Federal Emergency Management Agency and which is located in or partly within a county with a charter form of government with greater than two hundred fifty thousand inhabitants but fewer than three hundred thousand inhabitants, unless the redevelopment area actually abuts a river or major waterway and is substantially surrounded by contiguous properties with residential, industrial, or commercial zoning classifications.
2. This subsection shall not apply to tax increment financing projects or districts approved prior to July 1, 2003, and shall allow the aforementioned tax increment financing projects to modify, amend or expand such projects including redevelopment project costs by not more than forty percent of such project original projected cost including redevelopment project costs as such projects including redevelopment project costs as such projects redevelopment projects including redevelopment project costs existed as of June 30, 2003, and shall allow the aforementioned tax increment financing district to modify, amend or expand such districts by not more than five percent as such districts existed as of June 30, 2003.
99.918. As used in sections 99.915 to 99.980, unless the context clearly requires otherwise, the following terms shall mean:
(1) "Authority", the downtown economic stimulus authority for a municipality, created pursuant to section 99.921;
(2) "Baseline year", the calendar year prior to the adoption of an ordinance by the municipality approving a development project; provided, however, if economic activity taxes or state sales tax revenues, from businesses other than any out-of-state business or businesses locating in the development project area, decrease in the development project area in the year following the year in which the ordinance approving a development project is approved by a municipality, the baseline year may, at the option of the municipality approving the development project, be the year following the year of the adoption of the ordinance approving the development project. When a development project area is located within a county for which public and individual assistance has been requested by the governor pursuant to Section 401 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act, 42 U.S.C. 5121 et seq., for an emergency proclaimed by the governor pursuant to section 44.100, RSMo, due to a natural disaster of major proportions that occurred after May 1, 2003, but prior to May 10, 2003, and the development project area is a central business district that sustained severe damage as a result of such natural disaster, as determined by the state emergency management agency, the baseline year may, at the option of the municipality approving the development project, be the calendar year in which the natural disaster occurred or the year following the year in which the natural disaster occurred, provided that the municipality adopts an ordinance approving the development project within one year after the occurrence of the natural disaster;
(3) "Blighted area", an area which, by reason of the predominance of defective or inadequate street layout, unsanitary or unsafe conditions, deterioration of site improvements, improper subdivision or obsolete platting, or the existence of conditions which endanger life or property by fire and other causes, or any combination of such factors, retards the provision of housing accommodations or constitutes an economic or social liability or a menace to the public health, safety, morals, or welfare in its present condition and use;
(4) "Central business district", the area at or near the historic core that is locally known as the "downtown" of a municipality that has a median household income of sixty-two thousand dollars or less, according to the last decennial census. In addition, at least fifty percent of existing buildings in this area will have been built in excess of thirty-five years prior or vacant lots that had prior structures built in excess of thirty-five years prior to the adoption of the ordinance approving the redevelopment plan. The historical land use emphasis of a central business district prior to redevelopment will have been a mixed use of business, commercial, financial, transportation, government, and multifamily residential uses;
(5) "Collecting officer", the officer of the municipality responsible for receiving and processing payments in lieu of taxes, economic activity taxes other than economic activity taxes which are local sales taxes, and other local taxes other than local sales taxes, and, for local sales taxes and state taxes, the director of revenue;
(6) "Conservation area", any improved area within the boundaries of a redevelopment area located within the territorial limits of a municipality in which fifty percent or more of the structures in the area have an age of thirty-five years or more, and such an area is not yet a blighted area but is detrimental to the public health, safety, morals, or welfare and may become a blighted area because of any one or more of the following factors: dilapidation; obsolescence; deterioration; illegal use of individual structures; presence of structures below minimum code standards; abandonment; excessive vacancies; overcrowding of structures and community facilities; lack of ventilation, light or sanitary facilities; inadequate utilities; excessive land coverage; deleterious land use or layout; depreciation of physical maintenance; and lack of community planning;
(7) "Development area", an area designated by a municipality in respect to which the municipality has made a finding that there exist conditions which cause the area to be classified as a blighted area or a conservation area, which area shall have the following characteristics:
(a) It includes only those parcels of real property directly and substantially benefited by the proposed development plan;
(b) It can be renovated through one or more development projects;
(c) It is located in the central business district;
(d) It has generally suffered from declining population or property taxes for the twenty-year period immediately preceding the area's designation as a development area or has structures in the area fifty percent or more of which have an age of thirty-five years or more;
(e) It is contiguous, provided, however that a development area may include up to three noncontiguous areas selected for development projects, provided that each noncontiguous area meets the requirements of paragraphs (a) to (g) herein;
(f) The development area shall not exceed ten percent of the entire area of the municipality; and
(g) The development area shall not include any property that is located within the one hundred year flood plain, as designated by the Federal Emergency Management Agency flood delineation maps, unless such property is protected by a structure that is inspected and certified by the United States Army Corps of Engineers.
This subdivision shall not apply to property within the one hundred year flood plain if the buildings on the property have been or will be flood proofed in accordance with the Federal Emergency Management Agency's standards for flood proofing and the property is located in a home rule city with more than one hundred fifty-one thousand five hundred but fewer than one hundred fifty-one thousand six hundred inhabitants. Only those buildings certified as being flood proofed in accordance with the Federal Emergency Management Agency's standards for flood proofing by the authority shall be eligible for the state sales tax increment and the state income tax increment. Subject to the limitation set forth in this subdivision, the development area can be enlarged or modified as provided in section 99.951;
(8) "Development plan", the comprehensive program of a municipality to reduce or eliminate those conditions which qualified a development area as a blighted area or a conservation area, and to thereby enhance the tax bases of the taxing districts which extend into the development area through the reimbursement, payment, or other financing of development project costs in accordance with sections 99.915 to 99.980 and through the exercise of the powers set forth in sections 99.915 to 99.980. The development plan shall conform to the requirements of section 99.942;
(9) "Development project", any development project within a development area which constitutes a major initiative in furtherance of the objectives of the development plan, and any such development project shall include a legal description of the area selected for such development project;
(10) "Development project area", the area located within a development area selected for a development project;
(11) "Development project costs" include such costs to the development plan or a development project, as applicable, which are expended on public property, buildings, or rights-of-ways for public purposes to provide infrastructure to support for a development project. Such costs shall only be allowed as an initial expense which, to be recoverable, must be included in the costs of a development plan or development project, except in circumstances of plan amendments approved by the [Missouri development finance board and the] department of economic development. Such infrastructure costs include, but are not limited to, the following:
(a) Costs of studies, appraisals, surveys, plans, and specifications;
(b) Professional service costs, including, but not limited to, architectural, engineering, legal, marketing, financial, planning, or special services;
(c) Property assembly costs, including, but not limited to, acquisition of land and other property, real or personal, or rights or interests therein, demolition of buildings, and the clearing and grading of land;
(d) Costs of rehabilitation, reconstruction, repair, or remodeling of existing public buildings and fixtures;
(e) Costs of construction of public works or improvements;
(f) Financing costs, including, but not limited to, all necessary expenses related to the issuance of obligations issued to finance all or any portion of the infrastructure costs of one or more development projects, and which may include capitalized interest on any such obligations and reasonable reserves related to any such obligations;
(g) All or a portion of a taxing district's capital costs resulting from any development project necessarily incurred or to be incurred in furtherance of the objectives of the development plan, to the extent the municipality by written agreement accepts and approves such infrastructure costs;
(h) Payments to taxing districts on a pro rata basis to partially reimburse taxes diverted by approval of a development project;
(i) State government costs, including, but not limited to, the reasonable costs incurred by the department of economic development, the department of revenue and the office of administration in evaluating an application for and administering state supplemental downtown development financing for a development project; and
(j) Endowment of positions at an institution of higher education which has a designation as a Carnegie Research I University including any campus of such university system, subject to the provisions of section 99.958.
In addition, economic activity taxes and payment in lieu of taxes may be expended on or used to reimburse any reasonable or necessary costs incurred or estimated to be incurred in furtherance of a development plan or a development project;
(12) "Economic activity taxes", the total additional revenue from taxes which are imposed by the municipality and other taxing districts, and which are generated by economic activities within each development project area, which are not related to the relocation of any out-of-state business into the development project area, which exceed the amount of such taxes generated by economic activities within such development project area in the baseline year plus, in development project areas where the baseline year is the year following the year in which the development project is approved by the municipality pursuant to subdivision (2) of this section, the total revenue from taxes which are imposed by the municipality and other taxing districts which is generated by economic activities within the development project area resulting from the relocation of an out-of-state business or out-of-state businesses to the development project area pursuant to section 99.919; but excluding personal property taxes, taxes imposed on sales or charges for sleeping rooms paid by transient guests of hotels and motels, licenses, fees, or special assessments. If a retail establishment relocates within one year from one facility to another facility within the same county and the municipality or authority finds that the retail establishment is a direct beneficiary of development financing, then for purposes of this definition, the economic activity taxes generated by the retail establishment shall equal the total additional revenues from taxes which are imposed by the municipality and other taxing districts which are generated by the economic activities within the development project area which exceed the amount of taxes which are imposed by the municipality and other taxing districts which are generated by economic activities within the development project area generated by the retail establishment in the baseline year;
(13) "Gambling establishment", an excursion gambling boat as defined in section 313.800, RSMo, and any related business facility including any real property improvements which are directly and solely related to such business facility, whose sole purpose is to provide goods or services to an excursion gambling boat and whose majority ownership interest is held by a person licensed to conduct gambling games on an excursion gambling boat or licensed to operate an excursion gambling boat as provided in sections 313.800 to 313.850, RSMo;
(14) "Major initiative", a development project within a central business district that:
(a) Promotes tourism, cultural activities, arts, entertainment, education, research, arenas, multipurpose facilities, libraries, ports, mass transit, museums, or conventions, the estimated cost of which is in excess of the amount set forth below for the municipality, as applicable; or
(b) Promotes business location or expansion, the estimated cost of which is in excess of the amount set forth below for the municipality, and is estimated to create at least as many new jobs as set forth below within three years of such location or expansion:
Population of Estimated New Jobs Municipality
Project Cost Created
300,000 or more $10,000,000 at least 100 100,000 to 299,999
$ 5,000,000 at least 50 50,001 to 99,999
$ 1,000,000 at least 10 50,000 or less
$ 500,000 at least 5;
(15) "Municipality", any city, village, incorporated town, or any county of this state established on or prior to January 1, 2001, or a census-designated place in any county designated by the county for purposes of sections 99.915 to 99.1060;
(16) "New job", any job defined as a new job pursuant to subdivision (11) of section 100.710, RSMo;
(17) "Obligations", bonds, loans, debentures, notes, special certificates, or other evidences of indebtedness issued by the municipality or authority, or other public entity authorized to issue such obligations pursuant to sections 99.915 to 99.980 to carry out a development project or to refund outstanding obligations;
(18) "Ordinance", an ordinance enacted by the governing body of any municipality or an order of the governing body of such a municipal entity whose governing body is not authorized to enact ordinances;
(19) "Other net new revenues", the amount of state sales tax increment or state income tax increment or the combination of the amount of each such increment as determined under section 99.960;
(20) "Out-of-state business", a business entity or operation that has been located outside of the state of Missouri prior to the time it relocates to a development project area;
(21) "Payment in lieu of taxes", those revenues from real property in each development project area, which taxing districts would have received had the municipality not adopted a development plan and the municipality not adopted development financing, and which would result from levies made after the time of the adoption of development financing during the time the current equalized value of real property in such development project area exceeds the total equalized value of real property in such development project area during the baseline year until development financing for such development project area expires or is terminated pursuant to sections 99.915 to 99.980;
(22) "Special allocation fund", the fund of the municipality or its authority required to be established pursuant to section 99.957 which special allocation fund shall contain at least four separate segregated accounts into which payments in lieu of taxes are deposited in one account, economic activity taxes are deposited in a second account, other net new revenues are deposited in a third account, and other revenues, if any, received by the authority or the municipality for the purpose of implementing a development plan or a development project are deposited in a fourth account;
(23) "State income tax increment", up to fifty percent of the estimate of the income tax due the state for salaries or wages paid to new employees in new jobs at a business located in the development project area and created by the development project. The estimate shall be a percentage of the gross payroll which percentage shall be based upon an analysis by the department of revenue of the practical tax rate on gross payroll as a factor in overall taxable income;
(24) "State sales tax increment", up to one-half of the incremental increase in the state sales tax revenue in the [development] redevelopment project area. [In no event shall the incremental increase include any amounts attributable to retail sales unless the Missouri development finance board and the department of economic development are satisfied based on information provided by the municipality or authority, and such entities have made a finding that a substantial portion of all but a de minimus portion of the sales tax increment attributable to retail sales is from new sources which did not exist in the state during the baseline year. The incremental increase for an existing facility shall be the amount by which the state sales tax revenue generated at the facility exceeds the state sales tax revenue generated at the facility in the baseline year. The incremental increase in development project areas where the baseline year is the year following the year in which the development project is approved by the municipality pursuant to subdivision (2) of this section shall be the state sales tax revenue generated by out-of-state businesses relocating into a development project area. The incremental increase for a Missouri facility which relocates to a development project area shall be the amount by which the state sales tax revenue of the facility exceeds the state sales tax revenue for the facility in the calendar year prior to relocation] The incremental increase shall be calculated by first adding the state sales tax revenues generated in the redevelopment project area in the calendar year prior to the adoption of an ordinance by the municipality approving a redevelopment project and the state sales tax revenue generated by businesses that have relocated into the project area from within the state in the calendar year prior to their relocation. The resulting sum shall be subtracted from the current year's state sales tax revenue generated in the redevelopment project area. In no event shall the incremental increase include any amounts attributable to retail sales generated by businesses that were not located in the project area in the calendar year prior to the adoption of an ordinance by the municipality approving a redevelopment project, unless the municipality or authority has proven to the department of economic development and the department has made a finding that the retail sales do not consist of retail sales displaced from existing businesses within the state;
(25) "State sales tax revenues", the general revenue portion of state sales tax revenues received pursuant to section 144.020, RSMo, excluding sales taxes that are constitutionally dedicated, taxes deposited to the school district trust fund in accordance with section 144.701, RSMo, sales and use taxes on motor vehicles, trailers, boats and outboard motors and future sales taxes earmarked by law;
(26) "Taxing district's capital costs", those costs of taxing districts for capital improvements that are found by the municipal governing bodies to be necessary and to directly result from a development project; and
(27) "Taxing districts", any political subdivision of this state having the power to levy taxes.
99.960. 1. A municipality shall submit an application to the department of economic development for review and [submission of an analysis and recommendation to the Missouri development finance board for a determination as to] approval of the disbursement of the project costs of one or more development projects from the state supplemental downtown development fund. [The department of economic development shall forward the application to the Missouri development finance board with the analysis and recommendation.] In no event shall any approval authorize a disbursement of one or more development projects from the state supplemental downtown development fund which exceeds the allowable amount of other net new revenues derived from the development area. An application submitted to the department of economic development shall contain the following, in addition to the items set forth in section 99.942:
(1) An estimate that one hundred percent of the payments in lieu of taxes and economic activity taxes deposited to the special allocation fund must and will be used to pay development project costs or obligations issued to finance development project costs to achieve the objectives of the development plan. Contributions to the development project from any private not-for-profit organization or local contributions from tax abatement or other sources may be substituted on a dollar-for-dollar basis for the local match of one hundred percent of payments in lieu of taxes and economic activity taxes from the fund;
(2) Identification of the existing businesses located within the development project area and the development area;
(3) The aggregate baseline year amount of state sales tax revenues and the aggregate baseline year amount of state income tax withheld on behalf of existing employees, reported by existing businesses within the development project area. Provisions of section 32.057, RSMo, notwithstanding, municipalities will provide this information to the department of revenue for verification. The department of revenue will verify the information provided by the municipalities within forty-five days of receiving a request for such verification from a municipality;
(4) An estimate of the state sales tax increment and state income tax increment within the development project area after redevelopment;
(5) An affidavit that is signed by the developer or developers attesting that the provision of subdivision (2) of subsection 3 of section 99.942 has been met and specifying that the development area would not be reasonably anticipated to be developed without the appropriation of the other net new revenues;
(6) The amounts and types of other net new revenues sought by the applicant to be disbursed from the state supplemental downtown development fund over the term of the development plan;
(7) The methodologies and underlying assumptions used in determining the estimate of the state sales tax increment and the state income tax increment; and
(8) Any other information reasonably requested by the department of economic development [and the Missouri development finance board].
2. The department of economic development shall make all reasonable efforts to process applications within sixty days of receipt of the application.
3. The Missouri department of economic development [finance board] shall make a determination regarding the application for a certificate allowing disbursements from the state supplemental downtown development fund [and shall forward such determination to the director of the department of economic development]. In no event shall the amount of disbursements from the state supplemental downtown development fund approved for a project, in addition to any other state economic development funding or other state incentives, exceed the projected state benefit of the development project, as determined by the department of economic development through a cost-benefit analysis. Any political subdivision located either wholly or partially within the development area shall be permitted to submit information to the department of economic development for consideration in its cost-benefit analysis. Upon approval of state supplemental downtown development financing, a certificate of approval shall be issued by the department of economic development containing the terms and limitations of the disbursement.
4. At no time shall the annual amount of other net new revenues approved for disbursements from the state supplemental downtown development fund combined with other net new revenues approved for disbursement from the state supplemental rural development fund created under section 99.1048 exceed [one hundred eight] fifty-eight million dollars.
5. Development projects receiving disbursements from the state supplemental downtown development fund shall be limited to receiving such disbursements for fifteen years, unless specific approval for a longer term is given by the director of the department of economic development, as set forth in the certificate of approval; except that, in no case shall the duration exceed twenty-five years. The approved term notwithstanding, state supplemental downtown development financing shall terminate when development financing for a development project is terminated by a municipality.
6. The municipality shall deposit payments received from the state supplemental downtown development fund in a separate segregated account for other net new revenues within the special allocation fund.
7. Development project costs may include, at the prerogative of the state, the portion of salaries and expenses of the department of economic development[, the Missouri development finance board,] and the department of revenue reasonably allocable to each development project approved for disbursements from the state supplemental downtown development fund for the ongoing administrative functions associated with such development project. Such amounts shall be recovered from other net new revenues deposited into the state supplemental downtown development fund created pursuant to section 99.963.
8. A development project approved for state supplemental downtown development financing may not thereafter elect to receive tax increment financing pursuant to the real property tax increment allocation redevelopment act, sections 99.800 to 99.865, and continue to receive state supplemental downtown development financing pursuant to sections 99.915 to 99.980.
9. The department of economic development[, in conjunction with the Missouri development finance board,] may establish the procedures and standards for the determination and approval of applications by the promulgation of rules and regulations and publish forms to implement the provisions of this section and section 99.963.
10. Any rule or portion of a rule, as that term is defined in section 536.010, RSMo, that is created under the authority delegated in this section and section 99.963 shall become effective only if it complies with and is subject to all of the provisions of chapter 536, RSMo, and, if applicable, section 536.028, RSMo. This section, section 99.963, and chapter 536, RSMo, are nonseverable and if any of the powers vested with the general assembly pursuant to chapter 536, RSMo, to review, to delay the effective date, or to disapprove and annul a rule are subsequently held unconstitutional, then the grant of rulemaking authority and any rule proposed or adopted after August 28, 2003, shall be invalid and void.
11. The Missouri department of economic development [finance board] shall consider parity based on population and geography of the state among the regions of the state in making determinations on applications pursuant to this section.
99.963. 1. There is hereby established within the state treasury a special fund to be known as the "State Supplemental Downtown Development Fund", to be administered by the department of economic development. Any unexpended balance and any interest in the fund at the end of the biennium shall be exempt from the provisions of section 33.080, RSMo, relating to the transfer of unexpended balances to the general revenue fund. The fund shall consist of:
(1) The [first one hundred fifty million dollars of] other net new revenues generated annually by the development projects, up to the amount approved by the department of economic development;
(2) Money received from costs charged pursuant to subsection 7 of section 99.960; and
(3) Gifts, contributions, grants, or bequests received from federal, private, or other sources.
2. Notwithstanding the provisions of section 144.700, RSMo, to the contrary, the department of revenue shall annually submit the [first one hundred fifty million of] other net new revenues generated by the development projects, up to the amount approved by the department of economic development, to the treasurer for deposit in the state supplemental downtown development fund.
3. The department of economic development shall annually disburse funds from the state supplemental downtown development fund in amounts determined pursuant to the certificates of approval for projects, providing that the amounts of other net new revenues generated from the development area have been verified and all of the conditions of sections 99.915 to 99.980 are met. If the revenues appropriated from the state supplemental downtown development fund are not sufficient to equal the amounts determined to be disbursed pursuant to such certificates of approval, the department of economic development shall disburse the revenues on a pro rata basis to all such projects and other costs approved pursuant to section 99.960.
4. In no event shall the amounts distributed to a project from the state supplemental downtown development fund exceed the lessor of the amount of the certificates of approval for projects or the actual other net new revenues generated by the projects.
5. The department of economic development shall not disburse any moneys from the state supplemental downtown development fund for any project which has not complied with the annual reporting requirements of section 99.980.
6. Money in the state supplemental downtown development fund may be spent for the reasonable and necessary costs associated with the administration of the program authorized under sections 99.915 to 99.980.
7. No municipality shall obligate or commit the expenditure of disbursements received from the state supplemental downtown development fund prior to receiving a certificate of approval for the development project generating other net new revenues.
8. Taxpayers in any development area who are required to remit sales taxes pursuant to chapter 144, RSMo, or income tax withholdings pursuant to chapter 143, RSMo, shall provide additional information to the department of revenue in a form prescribed by the department by rule. Such information shall include but shall not be limited to information upon which other net new revenues can be calculated, and shall include the number of new jobs, the gross payroll for such jobs, and sales tax generated in the development area by such taxpayer in the baseline year and during the time period related to the withholding or sales tax remittance.
9. Any rule or portion of a rule, as that term is defined in section 536.010, RSMo, that is created under the authority delegated in this section shall become effective only if it complies with and is subject to all of the provisions of chapter 536, RSMo, and, if applicable, section 536.028, RSMo. This section and chapter 536, RSMo, are nonseverable and if any of the powers vested with the general assembly pursuant to chapter 536, RSMo, to review, to delay the effective date, or to disapprove and annul a rule are subsequently held unconstitutional, then the grant of rulemaking authority and any rule proposed or adopted after August 28, 2003, shall be invalid and void.
99.975. 1. No new applications made pursuant to sections 99.915 to 99.980 shall be approved after January 1, 2013.
2. No applications made pursuant to sections 99.915 to 99.980 shall be approved prior to August 28, 2003, except for applications for projects that are located within a county for which public and individual assistance has been requested by the governor pursuant to section 401 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act, 42 U.S.C. 5121 et seq., for an emergency proclaimed by the governor pursuant to section 44.100, RSMo, due to a natural disaster of major proportions that occurred after May 1, 2003, but prior to May 10, 2003, and the development project area is a central business district that sustained severe damage as a result of such natural disaster, as determined by the state emergency management agency.
3. Prior to December 31, 2006, the Missouri department of economic development [finance board] may approve up to two applications made pursuant to sections 99.915 to 99.980 in a home rule city with more than four hundred thousand inhabitants and located in more than one county in which the state sales tax increment for such projects approved pursuant to the provisions of this subsection shall be up to one-half of the incremental increase in all sales taxes levied pursuant to section 144.020, RSMo. In no event shall the incremental increase include any amounts attributable to retail sales unless the [Missouri development finance board and the] department of economic development [are] is satisfied based on information provided by the municipality or authority, and such [entities have] entity has made a finding that a substantial portion of all but a de minimus portion of the sales tax increment attributable to retail sales is from new sources which did not exist in the state during the baseline year. The incremental increase for an existing facility shall be the amount of all state sales taxes generated pursuant to section 144.020, RSMo, at the facility in excess of the amount of all state sales taxes generated pursuant to section 144.020, RSMo, at the facility in the baseline year. The incremental increase in development project areas where the baseline year is the year following the year in which the development project is approved by the municipality pursuant to subdivision (2) of section 99.918 shall be the state sales tax revenue generated by out-of-state businesses relocating into a development project area. The incremental increase for a Missouri facility which relocates to a development project area shall be the amount by which the state sales tax revenue of the facility exceeds the state sales tax revenue for the facility in the calendar year prior to relocation.
99.980. 1. By the last day of February each year, the municipality or authority shall report to the director of the department of economic development the name, address, phone number, and primary line of business of any business which relocates to the development area.
2. Each year the governing body of the municipality, or its designee, shall prepare a report concerning the status of the development plan, the development area, and the included development projects, and shall submit a copy of such report to the director of the department of economic development. The report shall include the following:
(1) The name, street and mailing addresses, phone number, and chief officer of the granting body;
(2) The name, street and mailing addresses, phone number, and chief officer of any business benefiting from public expenditures in such development plans and projects;
(3) The amount and source of revenue in the special allocation fund;
(4) The amount and purpose of expenditures from the special allocation fund;
(5) The amount of any pledge of revenues, including principal and interest on any outstanding bonded indebtedness;
(6) The original equalized assessed value of the development area;
(7) The assessed valuation added to the development area;
(8) Payments made in lieu of taxes received and expended;
(9) The economic activity taxes generated within the development area in the baseline year;
(10) The economic activity taxes generated within the development area after the baseline year;
(11) Reports on contracts made incident to the implementation and furtherance of a development area, the development plan, and the included development projects;
(12) A copy of the development plan;
(13) The cost of any property acquired, disposed of, rehabilitated, reconstructed, repaired, or remodeled;
(14) The number of parcels acquired by or through initiation of eminent domain proceedings;
(15) For municipalities with more than four hundred thousand inhabitants and located in more than one county, any county with a charter form of government and with more than one million inhabitants, any city not within a county, and any county of the first classification with more than one hundred thirty-five thousand four hundred but less than one hundred thirty-five thousand five hundred inhabitants and any municipality located therein, the number of development projects developed in connection with community development corporations and the amount of funds generated pursuant to section 99.957 which are expended in connection with such project;
(16) A summary of the number of net new jobs created, categorized by full-time, part-time, and temporary positions, and by wage groups;
(17) The comparison of the total employment in this state by any business, including any corporate parent, benefiting from public expenditures in the development area on the date of the application compared to such employment on the date of the report, categorized by full-time, part-time, and temporary positions;
(18) A statement as to whether public expenditures on any development project during the previous fiscal year have reduced employment at any other site controlled by any business benefiting from public expenditures in the development area or its corporate parent, within or without of this state as a result of automation, merger, acquisition, corporate restructuring, or other business activity;
(19) A summary of the other community and economic benefits resulting from the project, consistent with those identified in the application;
(20) A signed certification by the chief officer of the authority or municipality as to the accuracy of the progress report; and
(21) Any additional reasonable information the department of economic development deems necessary.
3. The report shall include an analysis of the distribution of state supplemental downtown development financing by municipality and by economic development region, as defined by the department of economic development.
4. The department shall compile and publish all data from the progress reports in both written and electronic form, including the department's Internet web site.
5. The department shall have access at all reasonable times to the project site and the records of any authority or municipality in order to monitor the development project or projects and to prepare progress reports.
6. Data contained in the report required pursuant to the provisions of subsection 1 of this section and any information regarding amounts disbursed to municipalities pursuant to the provisions of sections 99.957 and 99.963 shall be deemed a public record, as defined in section 610.010, RSMo.
7. Any municipality failing to file an annual report as required pursuant to this section shall be ineligible to receive any disbursements from the state supplemental downtown development fund pursuant to section 99.963.
8. The [Missouri development finance board and the] department of economic development shall annually review the reports provided pursuant to this section.
9. The director of the department of economic development shall submit a report to the governor, the speaker of the house of representatives, and the president pro tempore of the senate no later than April thirtieth of each year. The report shall contain a summary of all information received by the director of economic development pursuant to subsection 2 of this section.
10. An annual statement showing the payments made in lieu of taxes received and expended in that year, the status of the development area, the development plan, the development projects in the development plan, the amount of outstanding obligations, and any additional information that the municipality deems necessary shall be published in a newspaper of general circulation in the municipality.
11. Five years after the establishment of the development area and the development plan and every five years thereafter the governing body of the municipality or authority shall hold a public hearing regarding the development area and the development plan and the development projects adopted pursuant to sections 99.915 to 99.980. The purpose of the hearing shall be to determine if the development area, development plan, and the included development projects are making satisfactory progress under the proposed time schedule contained within the approved development plan for completion of such development projects. Notice of such public hearing shall be given in a newspaper of general circulation in the area served by the municipality or authority once each week for four weeks immediately prior to the hearing.
99.1045. 1. A municipality shall submit an application to the Missouri agricultural and small business development authority created pursuant to section 348.020, RSMo, for approval of the disbursement of the project costs of one or more development projects from the state supplemental rural development fund. In no event shall any approval authorize a disbursement of one or more development projects from the state supplemental rural development fund which exceeds the allowable amount of other net new revenues derived from the development area. An application submitted to the Missouri agricultural and small business development authority shall contain the following, in addition to the items set forth in section 99.1027:
(1) An estimate that one hundred percent of the payments in lieu of taxes and economic activity taxes deposited to the special allocation fund must and will be used to pay development project costs or obligations issued to finance development project costs to achieve the objectives of the development plan. Contributions to the development project from any private not-for-profit organization or local contributions from tax abatement or other sources may be substituted on a dollar-for-dollar basis for the local match of one hundred percent of payments in lieu of taxes and economic activity taxes from the fund;
(2) Identification of the existing businesses located within the development project area and the development area;
(3) The aggregate baseline year amount of state sales tax revenues and the aggregate baseline year amount of state income tax withheld on behalf of existing employees, reported by existing businesses within the development project area. Provisions of section 32.057, RSMo, notwithstanding, municipalities will provide this information to the department of revenue for verification. The department of revenue will verify the information provided by the municipalities within forty-five days of receiving a request for such verification from a municipality;
(4) An estimate of the state sales tax increment and state income tax increment within the development project area after redevelopment;
(5) An affidavit that is signed by the developer or developers attesting that the provision of subdivision (2) of subsection 3 of section 99.1027 has been met and specifying that the development area would not be reasonably anticipated to be developed without the appropriation of the other net new revenues;
(6) The amounts and types of other net new revenues sought by the applicant to be disbursed from state supplemental rural development fund over the term of the development plan;
(7) The methodologies and underlying assumptions used in determining the estimate of the state sales tax increment and the state income tax increment;
(8) Any other information reasonably requested by the Missouri agricultural and small business development authority.
2. The Missouri agricultural and small business development authority shall make all reasonable efforts to process applications within sixty days of receipt of the application.
3. The Missouri agricultural and small business development authority shall make a determination regarding the application for a disbursement from the state supplemental rural development fund and shall forward such determination to the director of the department of economic development. In no event shall the amount of disbursements from the state supplemental rural development fund approved for a project, in addition to any other state economic development funding or other state incentives, exceed the projected state benefit of the development project, as determined by the department of economic development through a cost-benefit analysis. Any political subdivision located either wholly or partially within the development area shall be permitted to submit information to the department of economic development for consideration in its cost-benefit analysis. Upon approval of state supplemental rural development financing, a certificate of approval shall be issued by the department of economic development containing the terms and limitations of the disbursement.
4. At no time shall the annual amount of other net new revenues approved for disbursements from the state supplemental rural development fund combined with other net new revenues approved from disbursement from the state supplemental downtown development fund created under section 99.963 exceed [twelve] fifty-eight million dollars.
5. Development projects receiving disbursements from the state supplemental rural development fund shall be limited to receiving such disbursements for fifteen years, unless specific approval for a longer term is given by the director of the department of economic development, as set forth in the certificate of approval; except that, in no case shall the duration exceed twenty-five years. The approved term notwithstanding, state supplemental rural development financing shall terminate when development financing for a development project is terminated by a municipality.
6. The municipality shall deposit payments received from the state supplemental rural development fund in a separate segregated account for other net new revenues within the special allocation fund.
7. Development project costs may include, at the prerogative of the state, the portion of salaries and expenses of the department of economic development, the Missouri agricultural and small business development authority, and the department of revenue reasonably allocable to each development project approved for disbursements from the state supplemental rural development fund for the ongoing administrative functions associated with such development project. Such amounts shall be recovered from other net new revenues into the state supplemental rural development fund created pursuant to section 99.1048.
8. A development project approved for state supplemental rural development financing may not thereafter elect to receive tax increment financing pursuant to the real property tax increment allocation redevelopment act, sections 99.800 to 99.865, and continue to receive state supplemental rural development financing pursuant to sections 99.1000 to 99.1060.
9. The Missouri agricultural and small business development authority shall promulgate rules and regulations and publish forms to implement the provisions of this section and section 99.1048.
10. Any rule or portion of a rule, as that term is defined in section 536.010, RSMo, that is created under the authority delegated in this section and section 99.1048 shall become effective only if it complies with and is subject to all of the provisions of chapter 536, RSMo, and, if applicable, section 536.028, RSMo. This section, section 99.1048, and chapter 536, RSMo, are nonseverable and if any of the powers vested with the general assembly pursuant to chapter 536, RSMo, to review, to delay the effective date, or to disapprove and annul a rule are subsequently held unconstitutional, then the grant of rulemaking authority and any rule proposed or adopted after August 28, 2003, shall be invalid and void.
99.1048. 1. There is hereby established within the state treasury a special fund to be known as the "State Supplemental Rural Development Fund", to be administered by the department of economic development. Any unexpended balance and any interest in the fund at the end of the biennium shall be exempt from the provisions of section 33.080, RSMo, relating to the transfer of unexpended balances to the general revenue fund. The fund shall consist of:
(1) The [first twelve million dollars of] other net new revenues generated annually by the development projects, up to the amount approved by the department of economic development;
(2) Money received from fees charged pursuant to subsection 7 of section 99.1045; and
(3) Gifts, contributions, grants, or bequests received from federal, private, or other sources.
2. Notwithstanding the provisions of section 144.700, RSMo, to the contrary, the department of revenue shall annually submit the first twelve million of other net new revenues generated by the development projects to the treasurer for deposit in the state supplemental rural development fund.
3. The department of economic development shall annually disburse funds from the state supplemental rural development fund in amounts determined pursuant to the certificates of approval for projects, providing that the amounts of other net new revenues generated from the development area have been verified and all of the conditions of sections 99.1000 to 99.1060 are met. If the revenues appropriated from the state supplemental rural development fund are not sufficient to equal the amounts determined to be disbursed pursuant to such certificates of approval, the department of economic development shall disburse the revenues on a pro rata basis to all such projects and other costs approved pursuant to section 5 of this section.
4. In no event shall the amounts distributed to a project from the state supplemental rural development fund exceed the lessor of the amount of the certificates of approval for projects or the actual other net new revenues generated by the projects.
5. The department of economic development shall not disburse any moneys from the state supplemental rural development fund for any project which has not complied with the annual reporting requirements of section 99.1060.
6. Money in the state supplemental rural development fund may be spent for the reasonable and necessary costs associated with the administration of the program authorized under sections 99.1000 to 99.1060.
7. No municipality shall obligate or commit the expenditure of disbursements received from the state supplemental rural development fund prior to receiving a certificate of approval for the development project generating other net new revenues.
8. Taxpayers in any development area who are required to remit sales taxes pursuant to chapter 144, RSMo, or income tax withholdings pursuant to chapter 143, RSMo, shall provide additional information to the department of revenue in a form prescribed by the department by rule. Such information shall include but shall not be limited to information upon which other net new revenues can be calculated, and shall include the number of new jobs, the gross payroll for such jobs, and sales tax generated in the development area by such taxpayer in the baseline year and during the time period related to the withholding or sales tax remittance.
9. Any rule or portion of a rule, as that term is defined in section 536.010, RSMo, that is created under the authority delegated in this section shall become effective only if it complies with and is subject to all of the provisions of chapter 536, RSMo, and, if applicable, section 536.028, RSMo. This section and chapter 536, RSMo, are nonseverable and if any of the powers vested with the general assembly pursuant to chapter 536, RSMo, to review, to delay the effective date, or to disapprove and annul a rule are subsequently held unconstitutional, then the grant of rulemaking authority and any rule proposed or adopted after August 28, 2003, shall be invalid and void.
99.1082. As used in sections 99.1080 to 99.1092, unless the context clearly requires otherwise, the following terms shall mean:
(1) "Baseline year", the calendar year prior to the adoption of an ordinance by the municipality approving a redevelopment project; provided, however, if local sales tax revenues or state sales tax revenues, from businesses other than any out-of-state business or businesses locating in the redevelopment project area, decrease in the redevelopment project area in the year following the year in which the ordinance approving a redevelopment project is approved by a municipality, the baseline year may, at the option of the municipality approving the redevelopment project, be the year following the year of the adoption of the ordinance approving the redevelopment project. When a redevelopment project area is located within a county for which public and individual assistance has been requested by the governor under Section 401 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act, 42 U.S.C. 5121, et seq., for an emergency proclaimed by the governor under section 44.100, RSMo, due to a natural disaster of major proportions and the redevelopment project area is a central business district that sustained severe damage as a result of such natural disaster, as determined by the state emergency management agency, the baseline year may, at the option of the municipality approving the redevelopment project, be the calendar year in which the natural disaster occurred or the year following the year in which the natural disaster occurred, provided that the municipality adopts an ordinance approving the redevelopment project within one year after the occurrence of the natural disaster;
(2) "Blighted area", an area which, by reason of the predominance of defective or inadequate street layout, unsanitary or unsafe conditions, deterioration of site improvements, improper subdivision or obsolete platting, or the existence of conditions which endanger life or property by fire and other causes, or any combination of such factors, retards the provision of housing accommodations or constitutes an economic or social liability or a menace to the public health, safety, morals, or welfare in its present condition and use;
(3) "Central business district", the area at or near the historic core that is locally known as the "downtown" of a municipality that has a median household income of sixty-two thousand dollars or less, according to the last decennial census. In addition, at least fifty percent of existing buildings in this area will have been built in excess of thirty-five years prior or vacant lots that had prior structures built in excess of thirty-five years prior to the adoption of the ordinance approving the redevelopment plan. The historical land use emphasis of a central business district prior to redevelopment will have been a mixed use of business, commercial, financial, transportation, government, and multifamily residential uses;
(4) "Conservation area", any improved area within the boundaries of a redevelopment area located within the territorial limits of a municipality in which fifty percent or more of the structures in the area have an age of thirty-five years or more, and such an area is not yet a blighted area but is detrimental to the public health, safety, morals, or welfare and may become a blighted area because of any one or more of the following factors: dilapidation; obsolescence; deterioration; illegal use of individual structures; presence of structures below minimum code standards; abandonment; excessive vacancies; overcrowding of structures and community facilities; lack of ventilation, light or sanitary facilities; inadequate utilities; excessive land coverage; deleterious land use or layout; depreciation of physical maintenance; and lack of community planning;
(5) "Gambling establishment", an excursion gambling boat as defined in section 313.800, RSMo, and any related business facility including any real property improvements which are directly and solely related to such business facility, whose sole purpose is to provide goods or services to an excursion gambling boat and whose majority ownership interest is held by a person licensed to conduct gambling games on an excursion gambling boat or licensed to operate an excursion gambling boat as provided in sections 313.800 to 313.850, RSMo;
(6) "Local sales tax increment", at least fifty percent of the additional revenue from local sales [tax revenue from] taxes that are imposed by a municipality and its county, [and that are generated by economic activities within a redevelopment area] over the amount of such [taxes generated by economic activities within such a redevelopment area] local sales tax revenue in the calendar year prior to the adoption of the ordinance designating such a redevelopment area while financing under sections 99.1080 to 99.1092 remains in effect, but excluding personal property taxes, taxes imposed on sales or charges for sleeping rooms paid by transient guests of hotels and motels, licenses, fees, or special assessments; provided however, the governing body of any county may, by resolution, exclude any portion of any countywide sales tax of such county. For redevelopment projects or redevelopment plans approved after August 28, 2005, if a retail establishment relocates within one year from one facility within the same county and the governing body of the municipality finds that the retail establishment is a direct beneficiary of tax increment financing, then for the purposes of this subdivision, the [economic activity taxes] local sales tax increment generated by the retail establishment shall equal the total additional local sales tax revenues [from economic activity taxes that are imposed by a municipality or other taxing district] generated over the amount of [economic activity taxes] local sales tax revenues generated by the retail establishment in the calendar year prior to its relocation to the redevelopment area;
(7) "Local sales tax revenue", city sales tax revenues received under sections 94.500 to 94.550, RSMo, and county sales tax revenues received under sections 67.500 to 67.594, RSMo;
(8) "Major initiative", a development project within a central business district which promotes tourism, cultural activities, arts, entertainment, education, research, arenas, multipurpose facilities, libraries, ports, mass transit, museums, economic development, or conventions for the municipality, and where the capital investment within the redevelopment project area is:
(a) At least five million dollars for a project area within a city having a population of one hundred thousand to one hundred ninety-nine thousand nine hundred and ninety-nine inhabitants;
(b) At least one million dollars for a project area within a city having a population of fifty thousand to ninety-nine thousand nine hundred and ninety-nine inhabitants;
(c) At least five hundred thousand dollars for a project area within a city having a population of ten thousand to forty-nine thousand nine hundred and ninety-nine inhabitants; or
(d) At least two hundred fifty thousand dollars for a project area within a city having a population of one to nine thousand nine hundred and ninety-nine inhabitants;
(9) "Municipality", any city or county of this state having fewer than two hundred thousand inhabitants;
(10) "Obligations", bonds, loans, debentures, notes, special certificates, or other evidences of indebtedness issued by the municipality or authority, or other public entity authorized to issue such obligations under sections 99.1080 to 99.1092 to carry out a redevelopment project or to refund outstanding obligations;
(11) "Ordinance", an ordinance enacted by the governing body of any municipality;
(12) "Redevelopment area", an area designated by a municipality in respect to which the municipality has made a finding that there exist conditions which cause the area to be classified as a blighted area or a conservation area, which area shall have the following characteristics:
(a) It can be renovated through one or more redevelopment projects;
(b) It is located in the central business district;
(c) The redevelopment area shall not exceed ten percent of the entire geographic area of the municipality.
Subject to the limitation set forth in this subdivision, the redevelopment area can be enlarged or modified as provided in section 99.1088;
(13) "Redevelopment plan", the comprehensive program of a municipality to reduce or eliminate those conditions which qualify a redevelopment area as a blighted area or a conservation area, and to thereby enhance the tax bases of the taxing districts which extend into the redevelopment area through the reimbursement, payment, or other financing of redevelopment project costs in accordance with sections 99.1080 to 99.1092 and through application for and administration of downtown revitalization preservation program financing under sections 99.1080 to 99.1092;
(14) "Redevelopment project", any redevelopment project within a redevelopment area which constitutes a major initiative in furtherance of the objectives of the redevelopment plan, and any such redevelopment project shall include a legal description of the area selected for such redevelopment project;
(15) "Redevelopment project area", the area located within a redevelopment area selected for a redevelopment project;
(16) "Redevelopment project costs" include such costs to the redevelopment plan or a redevelopment project, as applicable, which are expended on public property, buildings, or rights-of-way for public purposes to provide infrastructure to support a redevelopment project, including facades. Such costs shall only be allowed as an initial expense which, to be recoverable, must be included in the costs of a redevelopment plan or redevelopment project, except in circumstances of plan amendments approved by the department of economic development. Such infrastructure costs include, but are not limited to, the following:
(a) Costs of studies, appraisals, surveys, plans, and specifications;
(b) Professional service costs, including, but not limited to, architectural, engineering, legal, marketing, financial, planning, or special services;
(c) Property assembly costs, including, but not limited to, acquisition of land and other property, real or personal, or rights or interests therein, demolition of buildings, and the clearing and grading of land;
(d) Costs of rehabilitation, reconstruction, repair, or remodeling of existing public buildings and fixtures;
(e) Costs of construction of public works or improvements;
(f) Financing costs, including, but not limited to, all necessary expenses related to the issuance of obligations issued to finance all or any portion of the infrastructure costs of one or more redevelopment projects, and which may include capitalized interest on any such obligations and reasonable reserves related to any such obligations;
(g) All or a portion of a taxing district's capital costs resulting from any redevelopment project necessarily incurred or to be incurred in furtherance of the objectives of the redevelopment plan, to the extent the municipality by written agreement accepts and approves such infrastructure costs;
(h) Payments to taxing districts on a pro rata basis to partially reimburse taxes diverted by approval of a redevelopment project when all debt is retired;
(i) State government costs, including, but not limited to, the reasonable costs incurred by the department of economic development and the department of revenue in evaluating an application for and administering downtown revitalization preservation financing for a redevelopment project;
(17) "State sales tax increment", up to one-half of the incremental increase in the state sales tax revenue in the redevelopment project area provided the local taxing jurisdictions commit one-half of their local sales tax increment to paying for redevelopment project costs. [The incremental increase shall be the amount by which the state sales tax revenue generated at the facility or within the redevelopment project area exceeds the state sales tax revenue generated at the facility or within the redevelopment project area in the baseline year. For redevelopment projects or redevelopment plans approved after August 28, 2005, if a retail establishment relocates within one year from one facility to another facility within the same county and the governing body of the municipality finds that the retail establishment is a direct beneficiary of tax increment financing, then for the purposes of this subdivision, the economic activity taxes generated by the retail establishment shall equal the total additional revenues from economic activity taxes that are imposed by a municipality or other taxing district over the amount of economic activity taxes generated by the retail establishment in the calendar year prior to the relocation to the redevelopment area] The incremental increase shall be calculated by first adding the state sales tax revenues generated in the redevelopment project area in the calendar year prior to the adoption of an ordinance by the municipality approving a redevelopment project and the state sales tax revenue generated by businesses that have relocated into the project area from within the state in the calendar year prior to their relocation. The resulting sum shall be subtracted from the current year's state sales tax revenue generated in the redevelopment project area. However, in no event shall the incremental increase include any amounts attributable to retail sales generated by businesses that were not located in the project area in the calendar year prior to the adoption of an ordinance by the municipality approving a redevelopment project, unless the municipality or authority has proven to the department of economic development and the department has made a finding that the retail sales do not consist of retail sales displaced from existing businesses within the state;
(18) "State sales tax revenues", the general revenue portion of state sales tax revenues received under section 144.020, RSMo, excluding sales taxes that are constitutionally dedicated, taxes deposited to the school district trust fund in accordance with section 144.701, RSMo, sales and use taxes on motor vehicles, trailers, boats and outboard motors and future sales taxes earmarked by law;
(19) "Taxing district's capital costs", those costs of taxing districts for capital improvements that are found by the municipal governing bodies to be necessary and to directly result from a redevelopment project;
(20) "Taxing districts", any political subdivision of this state having the power to levy taxes.
99.1090. 1. A municipality shall submit an application to the department of economic development for review and determination as to approval of the disbursement of the project costs of one or more redevelopment projects from the downtown revitalization preservation fund. The department of economic development shall forward the application to the commissioner of the office of administration for approval. In no event shall any approval authorize a disbursement of one or more redevelopment projects from the downtown revitalization preservation fund which exceeds the allowable amount of [other net new revenues] state sales tax increment derived from the redevelopment area. An application submitted to the department of economic development shall contain the following, in addition to the items set forth in section 99.1086:
(1) An estimate that one hundred percent of the local sales tax increment deposited to the special allocation fund must and will be used to pay redevelopment project costs or obligations issued to finance redevelopment project costs to achieve the objectives of the redevelopment plan;
(2) Identification of the existing businesses located within the redevelopment project area and the redevelopment area;
(3) The aggregate baseline year amount of state sales tax revenues reported by existing businesses within the redevelopment project area. Provisions of section 32.057, RSMo, notwithstanding, municipalities will provide this information to the department of revenue for verification. The department of revenue will verify the information provided by the municipalities within forty-five days of receiving a request for such verification from a municipality;
(4) An estimate of the state sales tax increment within the redevelopment project area after redevelopment. The department of economic development shall have the discretion to exempt smaller projects from this requirement;
(5) An affidavit that is signed by the developer or developers attesting that the provision of subdivision (2) of subsection 2 of section 99.1086 has been met;
(6) The [amounts and types] amount of [other net new revenues] state sales tax increment sought by the applicant to be disbursed from the downtown revitalization preservation fund over the term of the redevelopment plan;
(7) The methodologies and underlying assumptions used in determining the estimate of the state sales tax increment; and
(8) Any other information reasonably requested by the department of economic development.
2. The department of economic development shall make all reasonable efforts to process applications within a reasonable amount of time.
3. The department of economic development shall make a determination regarding the application for a certificate allowing disbursements from the downtown revitalization preservation fund and shall forward such determination to the commissioner of the office of administration. In no event shall the amount of disbursements from the downtown revitalization preservation fund approved for a project, in addition to any other state economic redevelopment funding or other state incentives, exceed the projected state benefit of the redevelopment project, as determined by the department of economic development through a cost-benefit analysis. Any political subdivision located either wholly or partially within the redevelopment area shall be permitted to submit information to the department of economic development for consideration in its cost-benefit analysis. Upon approval of downtown revitalization preservation financing, a certificate of approval shall be issued by the department of economic development containing the terms and limitations of the disbursement.
4. At no time shall the annual amount of [other net new revenues] state sales tax increment approved for disbursements from the downtown revitalization preservation fund exceed fifteen million dollars.
5. Redevelopment projects receiving disbursements from the downtown revitalization preservation fund shall be limited to receiving such disbursements for twenty-five years. The approved term notwithstanding, downtown revitalization preservation financing shall terminate when redevelopment financing for a redevelopment project is terminated by a municipality.
6. The municipality shall deposit payments received from the downtown revitalization preservation redevelopment fund in a separate segregated account for other net new revenues within the special allocation fund.
7. Redevelopment project costs may include, at the prerogative of the state, the portion of salaries and expenses of the department of economic development and the department of revenue reasonably allocable to each redevelopment project approved for disbursements from the downtown revitalization preservation fund for the ongoing administrative functions associated with such redevelopment project. Such amounts shall be recovered from new state revenues deposited into the downtown revitalization preservation fund created under section 99.1092.
8. A redevelopment project approved for downtown revitalization preservation financing shall not thereafter elect to receive tax increment financing under the real property tax increment allocation redevelopment act, sections 99.800 to 99.865, and continue to receive downtown revitalization financing under sections 99.1080 to 99.1092.
9. The department of economic development may establish the procedures and standards for the determination and approval of applications by the promulgation of rules and publish forms to implement the provisions of this section and section 99.1092.
10. Any rule or portion of a rule, as that term is defined in section 536.010, RSMo, that is created under the authority delegated in this section and section 99.1092 shall become effective only if it complies with and is subject to all of the provisions of chapter 536, RSMo, and, if applicable, section 536.028, RSMo. This section, section 99.1092, and chapter 536, RSMo, are nonseverable and if any of the powers vested with the general assembly under chapter 536, RSMo, to review, to delay the effective date, or to disapprove and annul a rule are subsequently held unconstitutional, then the grant of rulemaking authority and any rule proposed or adopted after August 28, 2005, shall be invalid and void.
99.1092. 1. There is hereby established within the state treasury a special fund to be known as the "Downtown Revitalization Preservation Fund", to be administered by the department of economic development. Any unexpended balance and any interest in the fund at the end of the biennium shall be exempt from the provisions of section 33.080, RSMo, relating to the transfer of unexpended balances to the general revenue fund. The fund shall consist of:
(1) The first fifteen million dollars of [other net new revenues] state sales tax increment generated annually by the redevelopment projects;
(2) Money received from costs charged under subsection 7 of section 99.1090; and
(3) Gifts, contributions, grants, or bequests received from federal, private, or other sources.
2. Notwithstanding the provisions of section 144.700, RSMo, to the contrary, the department of revenue shall annually submit the first fifteen million dollars of [other net new revenues] state sales tax increment generated by the redevelopment projects to the treasurer for deposit in the downtown revitalization preservation fund.
3. The department of economic development shall annually disburse funds from the downtown revitalization preservation fund in amounts determined under the certificates of approval for projects, providing that the amounts of [other net new revenues] state sales tax increment generated from the redevelopment area have been verified and all of the conditions of sections 99.1080 to 99.1092 are met. If the revenues appropriated from the downtown revitalization preservation fund are not sufficient to equal the amounts determined to be disbursed under such certificates of approval, the department of economic development shall disburse the revenues on a pro rata basis to all such projects and other costs approved under section 99.1090.
4. In no event shall the amounts distributed to a project from the downtown revitalization preservation fund exceed the lessor of the amount of the certificates of approval for projects or the actual [other net new revenues] state sales tax increment generated by the projects.
5. The department of economic development shall not disburse any moneys from the downtown revitalization preservation fund for any project which has not complied with the annual reporting requirements determined by the department of economic development.
6. Money in the downtown revitalization preservation fund may be spent for the reasonable and necessary costs associated with the administration of the program authorized under sections 99.1080 to 99.1092.
7. No municipality shall obligate or commit the expenditure of disbursements received from the downtown revitalization preservation fund prior to receiving a certificate of approval for the redevelopment project generating [other net new revenues] state sales tax increment. In addition, no municipality shall commence work on a redevelopment project prior to receiving a certificate of approval for the redevelopment project.
8. Taxpayers in any redevelopment area who are required to remit sales taxes under chapter 144, RSMo, shall provide additional information to the department of revenue in a form prescribed by the department by rule. Such information shall include, but shall not be limited to, information upon which [other net new revenues] state sales tax increment can be calculated and sales tax generated in the redevelopment area by such taxpayer in the baseline year and during the time period related to the sales tax remittance.
9. Any rule or portion of a rule, as that term is defined in section 536.010, RSMo, that is created pursuant to the authority delegated in this section shall become effective only if it complies with and is subject to all of the provisions of chapter 536, RSMo, and, if applicable, section 536.028, RSMo. This section and chapter 536, RSMo, are nonseverable and if any of the powers vested with the general assembly pursuant to chapter 536, RSMo, to review, to delay the effective date, or to disapprove and annul a rule are subsequently held unconstitutional, then the grant of rulemaking authority and any rule proposed or adopted after August 28, 2003, shall be invalid and void.
99.1100. 1. Sections 99.1100 to 99.1130 shall be known and may be cited as the "Missouri Economic Development Code".
2. Insofar as the provisions of the Missouri economic development code are inconsistent with the provisions of any other law, the provisions of the Missouri economic development code shall be controlling.
99.1102. As used in sections 99.1100 to 99.1130, unless otherwise stated, the following terms shall mean:
(1) "Baseline year", the calendar year prior to the effective date of an ordinance or order by the municipality or county approving a development project;
(2) "Collecting officer", the officer of the municipality, county, or other taxing jurisdiction responsible for receiving and processing tax payments and economic activity taxes and the officer of the municipality, county, or other taxing jurisdiction responsible for receiving and processing local sales tax revenues collected by the director of revenue on behalf of such municipality, county, or other taxing jurisdiction;
(3) "Commission", the Missouri economic development code job creation commission for a municipality or county, created under section 99.1104;
(4) "County", any county of this state and any city not within a county;
(5) "Development area", an area designated by a municipality or county which shall have the following characteristics:
(a) It includes only those parcels of real property directly and substantially benefited by the proposed development plan;
(b) It will be improved by the development project;
(c) It is contiguous;
(d) It is not included in any other redevelopment plan under this chapter or using any tax increment financing program; and
(e) The commission has declared development of the area is not likely to occur without benefit of the proposed development plan;
(6) "Development plan", the comprehensive program of a municipality or county to improve a development area, thereby enhancing the tax bases of the taxing districts which extend into the development area, through the reimbursement, payment, or other financing of development project costs in accordance with the Missouri economic development code. The development plan shall conform to the requirements of section 99.1116;
(7) "Development project", any development project within a development area which constitutes a major initiative in furtherance of the objectives of the development plan, and any such development project shall include a legal description of the area selected for such development project;
(8) "Development project area", the area located within a development area selected for a development project;
(9) "Development project costs", the costs to the development plan or a development project, as applicable, which are expended on public property, buildings, or rights-of-ways for public purposes to provide infrastructure or support for a development project. Such costs shall only be allowed as an initial expense which, to be recoverable, shall be included in the costs of a development plan or development project, including any amendments thereto adopted by the municipality or county. Such infrastructure costs include but are not limited to the following:
(a) Costs of studies, appraisals, surveys, plans, and specifications;
(b) Professional service costs, including but not limited to architectural, engineering, legal, marketing, financial, planning, or special services;
(c) Property assembly costs, including but not limited to acquisition of land and other property, real or personal, or rights or interests therein, demolition of buildings, and the clearing and grading of land;
(d) Costs of rehabilitation, reconstruction, repair, or remodeling of existing public buildings and fixtures;
(e) Costs of construction of public works or improvements;
(f) Financing costs, including but not limited to all necessary expenses related to the issuance of obligations issued to finance all or any portion of the infrastructure costs of one or more development projects, and which may include capitalized interest on any such obligations and reasonable reserves related to any such obligations; and
(g) All or a portion of a taxing district's capital costs resulting from any development project necessarily incurred or to be incurred in furtherance of the objectives of the development plan, to the extent the municipality or county by written agreement accepts and approves such infrastructure costs;
(10) "Economic activity taxes", the total additional revenue from taxes which are imposed by the municipality, county, and other taxing districts, and which are generated by economic activities within each development project area, which exceed the amount of such taxes generated by economic activities within such development project area in the baseline year; but excluding personal property taxes, taxes imposed on sales or charges for sleeping rooms paid by transient guests of hotels and motels, licenses, fees, special assessments, and any taxes imposed by the municipality, county, or other taxing district after the effective date of an ordinance or order by the municipality or county approving a development project;
(11) "Municipality", any city, village, or incorporated town of this state;
(12) "Obligations", bonds, loans, debentures, notes, special certificates, or other evidences of indebtedness issued by the municipality, county, or commission, or other public entity authorized to issue such obligations under the Missouri economic development code to carry out a development project or to refund outstanding obligations;
(13) "Ordinance", an ordinance enacted by the governing body of any municipality or county or an order of the governing body of such a municipal or county entity whose governing body is not authorized to enact ordinances;
(14) "Special allocation fund", the fund of the municipality or county established by agreement under section 99.1126;
(15) "Tax payments", the revenues from real property taxes in each development project area, which taxing districts have allocated to finance a development plan until development financing for such development project area expires or is terminated under the Missouri economic development code;
(16) "Taxing district's capital costs", the costs of taxing districts for capital improvements that are found by the governing body of the municipality or county to be necessary and to directly result from a development project;
(17) "Taxing districts", any political subdivision of this state having the power to levy taxes if the future tax revenues of such district would be affected by the establishment of a development project.
99.1104. Each municipality or county may create a commission to be known as a "Missouri Economic Development Code Job Creation Commission"; provided, however:
(1) No such commission shall transact any business or exercise its powers under the Missouri economic development code until and unless the governing body of such municipality or county shall approve, by ordinance or order, the exercise of the powers, functions, and duties of a commission under the Missouri economic development code, as provided in section 99.1120;
(2) No governing body of a municipality or county shall adopt an ordinance under subdivision (1) of this section unless it finds:
(a) That it would be in the interest of the public to consider the establishment of a development area in accordance with the Missouri economic development code;
(b) That the development of such a development area would be in the interest of the public health, safety, morals, or welfare of the residents of such municipality or county; and
(c) That it is anticipated that such a development area can be improved through a series of one or more development projects.
99.1106. Each commission created under section 99.1104 shall be governed by a board of commissioners with one commissioner appointed by each taxing jurisdiction. The number of commissioners serving on the board of each commission shall be determined by the number of taxing districts located wholly or partially within the development project area. All commissioners appointed under this subsection shall be appointed by each taxing district located wholly or partially within the development project area for a term of two years. Commissioners representing a county shall be appointed by the county governing body, except in charter counties where the commissioners shall be appointed by the county executive with approval of the governing body. Commissioners representing a municipality shall be appointed by the mayor with the approval of the governing body; provided, however, employees of the municipality or county shall be ineligible for appointment to the commission under this section. Commissioners representing other taxing districts shall be appointed by the taxing districts, but failure of one or more taxing districts to appoint a commissioner shall not prevent the commission from exercising its powers and authorities granted under the Missouri economic development code. Successor commissioners and all vacancies shall be filled in the same manner.
99.1108. 1. The powers of the commission created under section 99.1104 shall be exercised by its board of commissioners. A majority of the commissioners shall constitute a quorum of such board for the purpose of conducting business and exercising the powers of the commission and for all other purposes. Action may be taken by the board upon a vote of a majority of the commissioners present in person or by teleconference, unless in any case the bylaws of the commission shall require a larger number. Meetings of the board of the commission shall be held in compliance with the provisions of chapter 610, RSMo.
2. The commissioners shall annually elect a chair and vice chair from among the commissioners. The commission may employ an executive director, technical experts, and such other officers, agents, and employees, permanent and temporary, as it may require and shall determine their qualifications, duties, and compensation. For such legal services as it may require, a commission may call upon the chief law officer of the municipality or county or may employ its own counsel and legal staff.
3. A commissioner shall receive no compensation for his or her services, but may receive the necessary expenses, including traveling expenses, incurred in the discharge of his or her duties. Each commissioner shall hold office until a successor has been appointed.
4. For inefficiency or neglect of duty or misconduct in office, a commissioner may be removed by a majority vote of the commission.
99.1110. 1. In any suit, action, or proceeding involving the validity or enforcement of or relating to any contract of a commission entered into under the Missouri economic development code, such commission shall be conclusively deemed to have become established and authorized to transact business and exercise its powers under the Missouri economic development code upon proof of the adoption of the appropriate ordinance or order prescribed in section 99.1104. Each such ordinance or order shall be deemed sufficient if it authorizes the exercise of powers under the Missouri economic development code by the commission and sets forth the findings of the municipality or county as required in subdivision (2) of section 99.1104.
2. A copy of such ordinance or order duly certified by the clerk of the municipality or county shall be admissible in evidence in any suit, action, or proceeding.
3. No lawsuit to set aside the creation of a commission, the approval of a development plan, development project, development area or development project area, or to otherwise question the validity of the proceedings related thereto, shall be brought after the expiration of ninety days from the effective date of the ordinance, order, or resolution in question.
99.1112. 1. The commission created under section 99.1104 shall constitute a public body corporate and politic, exercising public and essential governmental functions.
2. A municipality or county or a commission created under section 99.1104 shall have all the powers necessary or convenient to carry out and effectuate the purposes and provisions of the Missouri economic development code, including the following powers in addition to others granted under the Missouri economic development code:
(1) To prepare or cause to be prepared and approved development plans and development projects to be considered at public hearings in accordance with the Missouri economic development code and to undertake and carry out development plans and development projects which have been adopted by ordinance, order or act of the commission;
(2) To arrange or contract for the furnishing or repair, by any person or agency, public or private, of services, privileges, streets, roads, utilities, or other facilities for or in connection with any development project;
(3) Within a development area, to acquire by purchase, lease, gift, grant, bequest, devise, obtain options upon, or otherwise acquire any real or personal property or any interest therein, necessary or incidental to a development project, all in the manner and at such price as the municipality, county or commission determines is reasonably necessary to achieve the objectives of a development plan;
(4) Within a development area, subject to provisions of section 99.1114 with regard to the disposition of real property, to sell, lease, exchange, transfer, assign, subdivide, retain for its own use, mortgage, pledge, hypothecate, or otherwise encumber or dispose of any real or personal property or any interest therein, all in the manner and at such price and subject to any covenants, restrictions, and conditions as the municipality, county or commission determines is reasonably necessary to achieve the objectives of a development plan; to make any such covenants, restrictions, or conditions as covenants running with the land, and to provide appropriate remedies for any breach of any such covenants, restrictions, or conditions, including the right of the municipality, county or commission to terminate such contracts and any interest in the property created thereto;
(5) Within a development area, to clear any area by demolition or removal of existing buildings and structures;
(6) To install, repair, construct, reconstruct, or relocate streets, utilities, and site improvements as necessary or desirable for the preparation of a development area for use in accordance with a development plan;
(7) Within a development area, to fix, charge, and collect fees, rents, and other charges for the use of any real or personal property, or any portion thereof, in which the municipality, county or commission has any interest;
(8) To accept grants, guarantees, and donations of property, labor, or other things of value from any public or private source for purposes of implementing a development plan;
(9) In accordance with section 99.1114, to select one or more developers to implement a development plan, or one or more development projects, or any portion thereof;
(10) To charge as a development project cost the reasonable costs incurred by the municipality, county, or commission in evaluating, administering, or implementing the development plan or any development project;
(11) To borrow money and issue obligations in accordance with the Missouri economic development code and provide security for any such loans or obligations;
(12) To insure or provide for the insurance of any real or personal property or operations of the municipality, county, or commission against any risks or hazards, including the power to pay premiums on any such insurance; and to enter into any contracts necessary to effectuate the purposes of the Missouri economic development code;
(13) Within a development area, to renovate, rehabilitate, own, operate, construct, repair, or improve any public improvements, buildings, parking garages, fixtures, structures, and other public facilities;
(14) To invest any funds held in reserves or sinking funds, or any funds not required for immediate disbursement, in property or securities in which savings banks may legally invest funds subject to their control; to redeem obligations at the redemption price established therein or to purchase obligations at less than redemption price, all obligations so redeemed or purchased to be canceled;
(15) To borrow money and to apply for and accept advances, loans, grants, contributions, and any other form of financial assistance from the federal government, the state, county, municipality, or other public body or from any sources, public or private, for the purposes of implementing a development plan, to give such security as may be required and to enter into and carry out contracts in connection therewith. A municipality, county, or commission, notwithstanding the provisions of any other law, may include in any contract for financial assistance with the federal government for a project such conditions imposed under federal law as the municipality, county, or commission may deem reasonable and appropriate and which are not inconsistent with the purposes of the Missouri economic development code;
(16) To incur development project costs and make such expenditures as may be necessary to carry out the purposes of the Missouri economic development code and to make expenditures from funds obtained from the federal government without regard to any other laws pertaining to the making and approval of appropriations and expenditures;
(17) To loan the proceeds of obligations issued under the Missouri economic development code for the purpose of providing for the purchase, construction, extension, or improvement of public infrastructure related to a development project by a developer under a development contract approved by the municipality, county, or commission in accordance with subdivision (2) of section 99.1114;
(18) To declare any funds, or any portion thereof, in the special allocation fund to be excess funds, so long as such excess funds have not been pledged to the payment of outstanding obligations or outstanding development project costs, and are not necessary for the payment of development project costs incurred or anticipated to be incurred. Any such funds deemed to be excess shall be disbursed in the manner of surplus funds as provided in section 99.1128;
(19) To pledge or otherwise expend funds deposited to the special allocation fund, or any portion thereof, for the payment or reimbursement of development project costs incurred by the commission, the municipality, the county, a developer selected by the municipality, county or commission, or any other entity with the consent of the municipality, county or commission; to pledge or otherwise expend funds deposited to the special allocation fund, or any portion thereof, or to mortgage or otherwise encumber its property, or any portion thereof, for the payment of obligations issued to finance development project costs; provided, however, any such pledge or expenditure of economic activity taxes shall be subject to annual appropriation by the municipality or county; and
(20) To exercise all powers or parts or combinations of powers necessary, convenient, or appropriate to undertake and carry out development plans and any development projects and all the powers granted under the Missouri economic development code.
3. If any member of the governing body of the municipality or county, commissioner, or employee or consultant of the municipality, county or commission, involved in the planning and preparation of a development project, owns or controls an interest, direct or indirect, in any property included in a development project area, the individual shall disclose the same in writing to the clerk of the municipality or county, and shall also so disclose the dates, terms, and conditions of any disposition of any such interest which disclosures shall be acknowledged by the governing body of the municipality or county and entered upon the minutes books of the governing body of the municipality or county. If an individual holds such an interest, then that individual shall refrain from any further official involvement in regard to a development project and from voting on any matter pertaining to such development project or communicating with other commissioners or the municipality or county concerning any matter pertaining to such development project. No such member, commissioner, employee, or consultant shall acquire any interest, direct or indirect, in any property in a development project area or proposed development project area, after either such individual obtains knowledge of a development project, or first public notice of such development project, or development project area under subsection 2 of section 99.1122, whichever first occurs; provided that, at any time after one year from the adoption of an ordinance designating a development project area, any such member, commissioner, employee or consultant may acquire an interest in real estate located in a development project area so long as any such person discloses such acquisition and refrains from voting on any matter related to the development project area in which the property acquired by such person is located.
4. A commission created under section 99.1104 shall have the following powers in addition to others granted under the Missouri economic development code:
(1) To sue and to be sued; to have a seal and to alter the same at the commission's pleasure; to have perpetual succession; to make and execute contracts and other instruments necessary or convenient to the exercise of the powers of the commission; and to make and from time to time amend and repeal bylaws, rules, and regulations, not inconsistent with the Missouri economic development code, to carry out the provisions of the Missouri economic development code;
(2) To delegate to a municipality, county or other public body any of the powers or functions of the commission with respect to the planning or undertaking of a development
project, and any such municipality, county, or public body is hereby authorized to carry out or perform such powers or functions for the commission;
(3) To receive and exercise powers delegated by any authority, agency, or agent of a municipality or county created under this chapter or chapter 353, RSMo, excluding powers of eminent domain.
99.1114. Real property which is acquired by a municipality, county or commission in a development project area shall be disposed of as follows:
(1) Within a development project area, the municipality, county, or commission may sell, lease, exchange, or otherwise transfer real property, including land, improvements, and fixtures, or any interest therein, to any developer selected for a development project, or any portion thereof, in accordance with the development plan, subject to such covenants, conditions, and restrictions as may be deemed to be in the public interest or to carry out the purposes of the Missouri economic development code. Such real property shall be sold, leased, or transferred at its fair market value for uses in accordance with the development plan; provided that such fair market value may be less than the cost of such property to the municipality, county, or commission. In determining the fair market value of real property for uses in accordance with a development plan, the municipality, county or commission shall take into account and give consideration to the uses and purposes required by the development plan; the restrictions upon, and the covenants, conditions, and obligations assumed by the developer of such property; the objectives of the development plan; and such other matters as the municipality, county or commission shall specify as being appropriate. In fixing rental and sale prices, a municipality, county, or commission shall give consideration to appraisals of the property for such uses made by experts employed by the municipality, county, or commission;
(2) The municipality, county, or commission shall, by public notice published in a newspaper having a general circulation in a development area, prior to selecting one or more developers for any development project, or any portion thereof, invite proposals from, and make available all pertinent information to, private developers or any persons interested in undertaking the development of such development project, or any portion thereof. Such notice shall be published at least once each week during the two weeks preceding the selection of a developer, shall identify the area of the development project or development projects, or any portion thereof, for which one or more developers are to be selected, and shall state that such further information as it is available may be obtained at the office of the municipality, county, or commission. The municipality, county, or commission shall consider all proposals and the financial and legal ability of the prospective developers to carry out their proposals. The municipality, county, or commission may negotiate and enter into one or more contracts with any developer selected for the development of any such area for the development of such area by such developer in accordance with a development plan or for the sale or lease of any real property to any such developer in any such area for the purpose of developing such property in accordance with the development plan. The municipality, county, or commission may enter into any such contract as it deems to be in the public interest and in furtherance of the purposes of the Missouri economic development code; provided that the municipality, county, or commission has, not less than ten days prior thereto, notified the governing body in writing of its intention to enter into such contract. Thereafter, the municipality, county, or commission may execute such contract in accordance with the provisions of this section and deliver deeds, leases, and other instruments and take all steps necessary to effectuate such contract. In its discretion, the municipality, county, or commission may, in accordance with the provisions of this section, dispose of any real property in an area selected for a development project, or any portion thereof, to private developers for development under such reasonable competitive bidding procedures as it shall prescribe, subject to the provisions of this section;
(3) In carrying out a development project, the commission may:
(a) Convey to the municipality or county such real property as, in accordance with the development plan, is to be dedicated as public right-of-way for streets, sidewalks, alleys, or other public ways, this power being additional to and not limiting any and all other powers of conveyance of property to municipalities expressed, generally or otherwise, in the Missouri economic development code;
(b) Grant servitudes, easements, and rights-of-way for utilities, sewers, streets, and other similar facilities, in accordance with the development plan; and
(c) Convey to the municipality or county or other appropriate public body such real property as, in accordance with the development plan, is to be used for parks, schools, public buildings, facilities, or other public purposes;
(4) The municipality, county, or commission may operate and maintain real property in the development area pending the disposition or development of the property in accordance with a development plan, without regard to the provisions of subdivisions (1) and (2) of this section, for such uses and purposes as may be deemed desirable even though not in conformity with the development plan.
99.1116. 1. A development plan shall set forth in writing a general description of the program to be undertaken to accomplish the development projects and related objectives and shall include, but need not be limited to:
(1) The name, street and mailing address, and phone number of the mayor or chief executive officer of the municipality or county;
(2) The street address or other description of the location of the development site;
(3) The estimated development project costs;
(4) The anticipated sources of funds to pay such development project costs;
(5) Evidence of the commitments to finance such development project costs;
(6) The anticipated type and term of the sources of funds to pay such development project costs;
(7) The anticipated type and terms of the obligations to be issued;
(8) The most recent equalized assessed valuation of the property within the development project area;
(9) An estimate as to the equalized assessed valuation after the development project area is developed in accordance with a development plan;
(10) The general land uses to apply in the development area;
(11) A list of community and economic benefits that are expected to result from the project;
(12) A list of all development subsidies that any business benefiting from public expenditures in the development area has previously received for the project, and the name of any other granting body from which such subsidies are sought;
(13) A list of all other public investments made or to be made by this state or units of local government to support infrastructure or other needs generated by the project for which the funding under the Missouri economic development code is being sought;
(14) A certification by the chief officer of the applicant as to the accuracy of the development plan.
2. The development plan may be adopted by a municipality or county in reliance on findings that a reasonable person would believe:
(1) The development area has not been subject to growth and development through investment by private enterprise and would not reasonably be anticipated to be developed without the implementation of one or more development projects and the adoption of development financing;
(2) The estimated dates of the completion of such development project and retirement of obligations incurred to finance development project costs which shall not be more than twenty-five years from the adoption of the ordinance or order approving any development project, provided that no ordinance approving a development project shall be adopted later than ten years from the adoption of the ordinance approving the development plan; and
(3) The development plan contains a cost-benefit analysis showing the economic impact of the development plan on the municipality, county, and school districts that are at least partially within the boundaries of the development area, and that such cost-benefit analysis complies with the requirements of this subdivision. The analysis shall show the impact on every affected political subdivision if the development projects are not built, and if the development projects are built under the development plan under consideration assuming the projects are completed in the manner described in the development plan.
99.1118. In the event a municipality or county desires to designate a development area located in whole or in part outside the incorporated boundaries of the municipality or county and within the boundaries of another municipality or county, such municipality or county shall first obtain the permission of the governing body of such other municipality or county.
99.1120. 1. Except as provided in subsection 4 of this section, a municipality or county which has created a commission under section 99.1104 may:
(1) Approve by ordinance or order the exercise by the commission of the powers, functions, and duties of the commission under the Missouri economic development code; and
(2) After adopting an ordinance or order in accordance with subdivision (1) of this subsection and after receipt of recommendations from the commission in accordance with subsection 3 of this section, by ordinance or order, designate development areas, adopt the development plans and development projects, designate a development project area for each development project adopted, and adopt development financing for each such development project area. No development plan shall be adopted until the development area is designated. No development project shall be adopted until the development plan is adopted and the development project area for each development project shall be designated at the time of adopting the development project.
2. A municipality or county may authorize a commission created under section 99.1104 to exercise all powers and perform all functions of a transportation development district under sections 238.200 to 238.275, RSMo, within a development area.
3. The municipality, county, or commission shall hold public hearings and provide notice under section 99.1122. Within ten days following the completion of any such public hearing, the commission shall vote on and shall make recommendation to the governing body of the municipality or county with regard to any development plan, development projects, designation of a development area or amendments thereto which were proposed at such public hearing.
4. The provisions of the Missouri economic development code shall not be used for any residential development project without the consent of the school boards of all school districts in which such residential development project is wholly or partially located, if all or part of the taxes that would be due to such school districts would be committed by the school district to finance such residential development project.
5. The powers of eminent domain shall not be used by any municipality, county, or commission to acquire any property for use in any project under the Missouri economic development code.
99.1122. 1. Prior to the adoption of the ordinance or order designating a development area, adopting a development plan, or approving a development project, the municipality, county, or commission shall fix a time and place for a public hearing and notify each taxing district located wholly or partially within the boundaries of the proposed development area or development project area affected. Such notice shall comply with the provisions of subsection 2 of this section. At the public hearing, any interested person or affected taxing district may file with the municipality, county or commission written objections to, or comments on, and may be heard orally in respect to, any issues regarding the plan or issues embodied in the notice. The municipality, county, or commission shall hear and consider all protests, objections, comments, and other evidence presented at the hearing. The hearing may be continued to another date without further notice other than a motion to be entered upon the minutes fixing the time and place of the subsequent hearing. Prior to the conclusion of the hearing, changes may be made in the development plan, development project, development area or development project area, provided that written notice of such changes is available at the public hearing. After the public hearing, but prior to the adoption of an ordinance or order designating a development area, adopting a development plan or approving a development project, changes may be made to any such proposed development plan, development project, development area, or development project area without a further hearing, if such changes do not enlarge the exterior boundaries of the development area or development project area, and do not substantially affect the general land uses established in a development plan or development project, provided that notice of such changes shall be given by mail to each affected taxing district and by publication in a newspaper of general circulation in the development area or development project area, as applicable, not less than ten days prior to the adoption of the changes by ordinance or order. After the adoption of an ordinance or order designating the development area adopting a development plan, approving a development project, or designating a development project area, no ordinance shall be adopted altering the exterior boundaries of the development area or a development project area or substantially affecting the general land uses established under the development plan or the general nature of a development project without holding a public hearing in accordance with this section. One public hearing may be held for the simultaneous consideration of a development area, development plan, development project, or development project area.
2. Notice of the public hearing required by this section shall be given by publication and mailing. Notice by publication shall be given by publication at least twice, the first publication to be not more than thirty days and the second publication to be not more than ten days prior to the hearing, in a newspaper of general circulation in the proposed development area or development project area, as applicable. Notice by mailing shall be given by depositing such notice in the United States mail by certified mail addressed to the person or persons in whose name the general taxes for the last preceding year were paid or were to have been paid on each lot, block, tract, or parcel of land lying within the proposed development area or development project area, as applicable. Such notice shall be mailed not less than ten working days prior to the date set for the public hearing. In the event taxes for the last preceding year were not paid, the notice shall also be sent to the persons last listed on the tax rolls within the preceding three years as the owners of such property.
3. The notices issued under this section shall include the following:
(1) The time and place of the public hearing;
(2) The general boundaries of the proposed development area or development project area, as applicable, by street location, where possible;
(3) A statement that all interested persons shall be given an opportunity to be heard at the public hearing;
(4) A description of the development plan and the proposed development projects and a location and time where the entire development plan or development projects proposed may be reviewed by any interested party;
(5) A statement that development financing involving the dedication of tax revenues by one or more taxing districts is being sought for the project and an estimate of the amount of local development financing that will be requested, if applicable; and
(6) Such other matters as the municipality, county, or commission may deem appropriate.
4. Not less than forty-five days prior to the date set for the public hearing, the municipality, county, or commission shall give notice by mail as provided in subsection 2 of this section to all taxing districts with jurisdiction over taxable property in the development area or development project area, as applicable, and in addition to the other requirements under subsection 3 of this section, the notice shall include an invitation to each taxing district to submit comments to the municipality, county or commission concerning the subject matter of the hearing prior to the date of the hearing.
99.1124. 1. For the purpose of financing development project costs, obligations may be issued by the municipality or county, or, at the request of the municipality or county, by the commission or any other political subdivision or public entity authorized to issue bonds to pay or reimburse development project costs. Such obligations, when so issued, shall be retired in the manner provided in the ordinance, order or resolution authorizing the issuance of such obligations.
2. Obligations issued under the Missouri economic development code may be issued in one or more series bearing interest at such rate or rates as the issuing entity shall determine by ordinance, order or resolution. Such obligations shall bear such date or dates, be in such denomination, carry such registration privileges, be executed in such manner, be payable in such medium of payment at such place or places, contain such covenants, terms, and conditions, and be subject to redemption as such ordinance, order or resolution shall provide. Obligations issued under the Missouri economic development code shall be sold at public or private sale at such price as shall be determined by the issuing entity and shall state that obligations issued under the Missouri economic development code are special obligations payable solely from the funds specifically pledged. No referendum approval of the electors shall be required as a condition to the issuance of obligations under the Missouri economic development code.
3. In the event the obligations contain a recital that they are issued under the Missouri economic development code, such recital shall be conclusive evidence of their validity and of the regularity of their issuance.
4. Neither the municipality, county, commission, or any other entity issuing such obligations, or the members, commissioners, directors, or the officers of any such entities nor any person executing any obligation shall be personally liable for such obligation by reason of the issuance thereof. The obligations issued under the Missouri economic development code shall not be a general obligation of the municipality, county, or any political subdivision thereof, nor in any event shall such obligation be payable out of any funds or properties other than those specifically pledged as security for such obligations. The obligations shall not constitute indebtedness within the meaning of any constitutional, statutory, or charter debt limitation or restriction.
5. Obligations issued under the Missouri economic development code may be issued to refund, in whole or in part, obligations theretofore issued by such entity under the authority of the Missouri economic development code, whether at or prior to maturity; provided, however, the last maturity of the refunding obligations shall not be expressed to mature later than the last maturity date of the obligations to be refunded.
6. In the event a municipality, county, or commission issues obligations under home rule powers or other legislative authority, the proceeds of which are pledged to pay for development project costs, the municipality, county, or commission may retire such obligations from funds in the special allocation fund in amounts and in such manner as if such obligations had been issued under the provisions of the Missouri economic development code.
99.1126. 1. A municipality or county, after designating a development area, adopting a development plan, and adopting any development project in conformance with the procedures of the Missouri economic development code, may adopt development financing for the development project area selected for any such development project by passing an ordinance or order. Upon the adoption of the first of any such ordinances, the municipality or county shall establish, or shall direct the commission to establish, a special allocation fund for the development area.
2. Immediately upon the adoption of a resolution, ordinance, or order adopting development financing for a development project area under subsection 1 of this section, the county assessor shall determine the total equalized assessed value of all taxable real property within such development project area by adding together the most recently ascertained equalized assessed value of each taxable lot, block, tract, or parcel of real property within such development project area as of the date of the adoption of such resolution, ordinance, or order and shall provide to the clerk of the municipality or county written certification of such amount as the total initial equalized assessed value of the taxable real property within such development project area.
3. For purposes of this section, "levies upon taxable real property in such development area by taxing districts" shall not include the blind pension fund tax levied under the authority of section 38(b), article III, of the Missouri Constitution, the merchants' and manufacturers' inventory replacement tax levied under the authority of subsection 2 of section 6, article X of the Missouri Constitution, the desegregation sales tax, or the conservation taxes. In each of the twenty-five calendar years following the adoption of an ordinance adopting development financing for a development project area under subsection 1 of this section unless and until development financing for such development project area is terminated by ordinance or order of the municipality or county, the ad valorem taxes arising from the levies upon taxable real property in such development project area by taxing districts may, by agreement as provided in this section, be divided as follows:
(1) That portion of taxes, penalties, and interest levied upon each taxable lot, block, tract, or parcel of real property in such development project area which is attributable to the initial equalized assessed value of each such taxable lot, block, tract, or parcel of real property in such development project area as certified by the county assessor in accordance with subsection 2 of this section shall be allocated to and, when collected, shall be paid by the collecting authority to the respective affected taxing districts in the manner required by law in the absence of the adoption of development financing;
(2) Taxes attributable to the increase in the current equalized assessed valuation of each taxable lot, block, tract, or parcel of real property in the development project area and any applicable penalty and interest over and above the initial equalized assessed value of each such taxable lot, block, tract, or parcel of real property in such development project area as certified by the county assessor in accordance with subsection 2 of this section may, by agreement as provided in this section, be allocated to and, when collected, shall be paid to the collecting officer of the municipality or county who shall deposit such payment in the special allocation fund. No part of the current equalized assessed valuation of each taxable lot, block, tract, or parcel of property in any such development project area attributable to any increase above the initial equalized assessed value of each such taxable lot, block, tract, or parcel of real property in such development project area as certified by the county assessor in accordance with subsection 2 of this section shall be used in calculating the general state school aid formula provided for in section 163.031, RSMo, until development financing for such development project area expires or is terminated in accordance with the Missouri economic development code.
4. In each of the twenty-five calendar years following the adoption of an ordinance, order, or resolution adopting development financing for a development project area under subsection 1 of this section unless and until development financing for such development project area is terminated in accordance with the Missouri economic development code, a percentage of the economic activity taxes from such development project area may, by agreement as provided in this section be allocated to, and paid by the collecting officer of any such economic activity tax to the treasurer or other designated financial officer of the municipality or county, who shall deposit such funds in the special allocation fund.
5. No tax revenue shall be used for development financing as provided in this section unless and until the taxing district levying the tax has approved the use of such revenue for development financing and has set forth such approval in a written agreement with the municipality, county, or commission. The municipality, county, or commission may establish such agreements with any taxing districts for the repayment of obligations issued under the provisions of the Missouri economic development code. Such agreements shall set forth the percentages of economic activity taxes and the amount or percentages of other tax payments that will be pledged by the taxing district for the payment or repayment of any obligations or expenses authorized to be paid under the provisions of the Missouri economic development code. Such agreements shall remain in effect until the obligations or expenses to which such economic activity taxes or tax payments have been pledged have been paid in full or retired. The use of such tax revenue shall not be considered relief from taxation under the provisions of Article X, Section 7 of the Missouri constitution, nor shall any tax be abated or any tax relief provided as a result of the use of development financing under the Missouri economic development code.
99.1128. 1. When all development project costs and all obligations issued to finance development project costs have been paid in full, the municipality or county shall adopt an ordinance terminating development financing for all development project areas. Immediately upon the adoption of such ordinance, all revenues then remaining in the special allocation fund shall be deemed to be surplus funds. Surplus tax payments shall be paid to the county collector who shall immediately thereafter pay such funds to the taxing districts in the development area selected in the same manner and proportion as provided in the agreement established under section 99.1126. Surplus economic activity taxes shall be paid to the taxing districts in the development area in proportion to the then current levy rates of such taxing districts that are attributable to economic activity taxes. Any other funds remaining in the special allocation fund following the adoption of an ordinance terminating development financing in accordance with this section shall be distributed as provided in the agreement established under section 99.1126.
2. Upon the payment of all development project costs, retirement of obligations, and the distribution of any surplus funds under this section, the municipality or county shall adopt an ordinance or order dissolving the special allocation fund and terminating the designation of the development area as a development area.
3. Nothing in the Missouri economic development code shall be construed as relieving property in such areas from paying a uniform rate of taxes, as required by section 3, article X of the Missouri Constitution.
99.1130. 1. An annual statement showing all funds received and expended in that year, the status of the development area, the development plan, the development projects in the development plan, the amount of outstanding obligations, and any additional information that the municipality or county deems necessary shall be published in a newspaper of general circulation in the municipality or county.
2. Five years after the establishment of the development area and the development plan and every five years thereafter the governing body of the municipality, county, or commission shall hold a public hearing regarding the development area and the development plan and the development projects adopted under the Missouri economic development code. The purpose of the hearing shall be to determine if the development area, development plan, and the included development projects are making satisfactory progress under the proposed time schedule contained within the approved development plan for completion of such development projects. Notice of such public hearing shall be given in a newspaper of general circulation in the area served by the municipality, county, or commission once each week for four weeks immediately prior to the hearing.
100.255. As used in sections 100.250 to 100.297, the following terms mean:
(1) "Board", the Missouri development finance board created by section 100.265;
(2) "Borrower", any person, partnership, public or private corporation, association, development agency or any other entity eligible for funding under sections 100.250 to 100.297;
(3) "Development agency", any of the following:
(a) A port authority established pursuant to chapter 68, RSMo;
(b) The bi-state development agencies established pursuant to sections 70.370 to [70.440] 70.441, RSMo, and sections 238.010 to 238.100, RSMo;
(c) A land clearance for redevelopment authority established pursuant to sections 99.300 to 99.660, RSMo;
(d) A county, city, incorporated town or village or other political subdivision or public body of this state;
(e) A planned industrial expansion authority established pursuant to sections 100.300 to 100.620;
(f) An industrial development corporation established pursuant to sections 349.010 to 349.105, RSMo;
(g) A real property tax increment financing commission established pursuant to sections 99.800 to 99.865, RSMo;
(h) Any other governmental, quasi-governmental or quasi-public corporation or entity created by state law or by resolution adopted by the governing body of a development agency otherwise described in paragraphs (a) through (g) of this subdivision;
(4) "Development and reserve fund", the industrial development and reserve fund established pursuant to section 100.260;
(5) "Export finance fund", the Missouri export finance fund established pursuant to section 100.260;
(6) "Export trade activities" includes, but is not limited to, consulting, international market research, advertising, marketing, insurance, product research and design, legal assistance, transportation, including trade documentation and freight forwarding, communication, and processing of foreign orders to and for exporters and foreign purchases and warehousing, when undertaken to export or facilitate the export of goods or services produced or assembled in this state;
(7) "Guarantee fund", the industrial development guarantee fund established by section 100.260;
(8) "Infrastructure development fund", the infrastructure development fund established under section 100.263;
(9) "Infrastructure facilities", the highways, streets, bridges, water supply and distribution systems, mass transportation facilities and equipment, telecommunication facilities, jails and prisons, sewers and sewage treatment facilities, wastewater treatment facilities, airports, railroads, reservoirs, dams and waterways in this state, acquisition of blighted real estate and the improvements thereon, demolition of existing structures and preparation of sites in anticipation of development, public facilities, and any other improvements provided by any form of government or development agency;
(10) "Jobs now fund", the jobs now fund established under section 100.260;
(11) "Jobs now projects", the purchase, construction, extension, and improvement of real estate, plants, buildings, structures, or facilities, whether or not now in existence, used or to be used primarily as infrastructure facilities or public facilities. When any entity provides a certified design or operation plan which is demonstrably less than the usual and customary average industry determination of cost for installation, construction, purchasing, extension, and improvement of real estate, manufacturing facilities, buildings, structures or facilities, including public facilities, then the entity or company providing such service may receive payment in an amount equal to the usual and customary fee for such project plus additional compensation equal to two times the percentage by which the cost of such aforementioned criteria of such facility is less than the usual and customary average industrial determination of cost for installation, construction, materials, extension and improvement of real estate, manufacturing facilities, buildings, structures, or facilities, including public facilities. Such entity shall also pay to such company providing such aforementioned service compensation equal to twenty-five percent of the amount of any annual operational costs which are lower than the customary average industry determination of cost for operation for such facility, procedure, or service for a period of time equal to one-fourth the design lifetime of such entity or five years whichever is less;
(12) "Participating lender", a lender authorized by the board to participate with the board in the making of a loan or to make loans the repayment of which is secured by the development and reserve fund;
(13) "Project", the purchase, construction, extension, and improvement of real estate, plants, buildings, structures or facilities, whether or not now in existence, used or to be used primarily as a factory, assembly plant, manufacturing plant, fabricating plant, distribution center, warehouse building, office building, port terminal or facility, transportation and transfer facility, industrial plant, processing plant, commercial or agricultural facility, nursing or retirement facility or combination thereof, recreational facility, cultural facility, public facilities, job training or other vocational training facility, infrastructure facility, video-audio telecommunication conferencing facility, office building, facility for the prevention, reduction, disposal or control of pollution, sewage or solid waste, facility for conducting export trade activities, or research and development building in connection with any of the facilities defined as a project in this subdivision. The term "project" shall also include any improvements, including, but not limited to, road or rail construction, alteration or relocation, and construction of facilities to provide utility service for any of the facilities defined as a project under this subdivision, along with any fixtures, equipment, and machinery, and any demolition and relocation expenses used in connection with any such projects and any capital used to promote and facilitate such facilities and notes payable from anticipated revenue issued by any development agency;
(14) "Public facility", any facility or improvements available for use by the general public including facilities for which user or other fees are charged on a nondiscriminatory basis;
(15) "Taxpayer", any individual, corporation, partnership, limited liability company, trust, or association which files a return with the Internal Revenue Service or the department of revenue.
100.275. 1. The board may at any time issue revenue bonds for the purpose of paying any part of the cost of any project or projects, or part thereof, and for the purpose of refunding any of its bonds or the bonds of any development agency. Every issue of its bonds shall be payable out of the revenues of the board which may be pledged for such payment, without preference or priority of the first bonds issued, subject to any agreement with the holders of any other bonds or pledging any specified revenues. The bonds shall be authorized by resolution of the board, shall bear such date or dates, and shall mature at such time or times, but not in excess of [thirty] forty years, as the resolution of the board shall specify. The bonds shall be in such denominations, bear interest at such rates, be in such form, either coupon or registered, be issued in such manner, be payable in such place or places and be subject to redemption as such resolution may provide. The bonds of the board may be sold at public or private sale, as the board may specify, at such price or prices as the board shall determine, but at not less than ninety-five percent of the principal amount thereof, and at such interest rate as the board shall determine, notwithstanding the provisions of section 108.170, RSMo.
2. The board may issue notes payable from the proceeds of bonds to be issued in the future or from such other sources as the board may specify as in the case of bonds. Such notes shall mature in not more than five years and shall be sold at public or private sale, as the board may specify, at not less than ninety-five percent of the principal amount thereof and at such interest rate as the board shall determine, notwithstanding the provisions of section 108.170, RSMo. The other details with respect to such notes shall be determined by the board as in the case of bonds.
3. The state shall not be liable on any notes or bonds of the board. Such notes or bonds shall not be a debt of the state and shall contain on the faces thereof a statement to such effect.
4. No member of the board nor any person authorized to execute notes or bonds of the board shall be liable personally on such notes or bonds or shall be subject to any personal liability or accountability by reason of the issuance thereof.
5. The notes and bonds of the board are securities in which all public bodies and political subdivisions of this state; all insurance companies and associations and all other persons carrying on an insurance business; all banks, trust companies, saving associations, savings and loan associations, credit unions, and investment companies; all administrators, guardians, executors, trustees, and other fiduciaries; and all other persons who now or may hereafter be authorized to invest in notes and bonds or other obligations of this state may properly and legally invest funds, including capital, in their control or belonging to them.
6. The board shall not be required to pay any taxes or any assessments whatsoever to this state, any political subdivision of this state, or any other governmental agency of this state. The notes and bonds of the board, and the income therefrom, shall, at all times, be exempt from any taxes and any assessments, except for estate taxes, gift taxes, and taxes on transfers.
7. Nothing contained in sections 100.250 to 100.297 shall be deemed to constitute a use of state funds or credit in violation of the provisions of article III, sections 37, 38(a) and 39, of the Missouri Constitution.
8. The board shall have the power to contract with any development agency to perform any governmental service, activity or undertaking which the contracting development agency is authorized by law to perform or to issue any bonds or notes which the contracting development agency is authorized by law to issue. Any such contract shall be authorized by the governing body of the development agency and by the board and shall state the purpose of the contract and the powers and duties of the parties thereunder. Any bonds or notes issued by the board on behalf of a development agency shall be entitled to the same security as if such bonds or notes were issued directly by the development agency. In addition to any other security for such bonds or notes, the board may secure such bonds, notes or other indebtedness in the manner described in section 100.297.
9. Any proceedings involving the validity or enforceability of any security for any bond or note issued by the board, including any proceedings relating to any security provided by any development agency in connection with any loan, lease, or financing agreement executed by the board, shall be conclusively deemed to have been completed by the development agency in accordance with the laws under which such proceedings were authorized notwithstanding any technical or other defects or omissions in such proceedings, and such proceedings shall not be subject to legal challenge on and after the date the board issues bonds or notes on behalf of such development agency unless such challenge is brought within ninety days following the completion of the proceedings of the development agency or such shorter period as may be prescribed in any law authorizing such proceedings. Notwithstanding any provision of law to the contrary, the security for any bond or note issued by the board may include a pledge of payments in lieu of taxes or a pledge or appropriation of economic activity tax revenues generated within a redevelopment area designated by any development agency under the provisions of sections 99.800 to 99.865, RSMo, whether or not the infrastructure facilities to be financed with the proceeds of bonds or notes issued by the board are located within the boundaries of said redevelopment area generating such taxes or revenues.
100.281. 1. A request for a loan from the development and reserve fund, the infrastructure development fund or the export finance fund to fund export trade activities or to carry out a project shall be in the form of an application for the project to the board, which application shall be in such form as the board may specify. After reviewing the application and such other information as the board may require, the board may grant all or a part of the loan request, provided the board determines that:
(1) The project will be a benefit to the economy or infrastructure of the state; and
(2) The project will generate sufficient revenues or the borrower will otherwise have sufficient revenues available to enable the borrower to repay the loan to the development and reserve fund, the infrastructure development fund or the export finance fund, along with any interest to be charged[; and
(3) In the case of an infrastructure facility project, the loan will not exceed ten million dollars].
2. Notwithstanding any other provision of law to the contrary, all development agencies, as defined in section 100.255, shall have the power to borrow funds from the board for any project, to contract with the board, and to furnish a security interest in any of their revenues or properties to the board to secure a loan from the board and to issue notes in evidence thereof upon such terms as such development agencies shall determine.
3. When the board issues bonds to provide loans for more than one infrastructure project, the board shall make a reasonable effort to sell the bonds to a purchaser that represents a group consisting of more than one underwriter.
100.286. 1. Within the discretion of the board, the development and reserve fund, the infrastructure development fund or the export finance fund may be pledged to secure the payment of any bonds or notes issued by the board, or to secure the payment of any loan made by the board or a participating lender which loan:
(1) Is requested to finance any project or export trade activity;
(2) Is requested by a borrower who is demonstrated to be financially responsible;
(3) Can reasonably be expected to provide a benefit to the economy of this state;
(4) Is otherwise secured by a mortgage or deed of trust on real or personal property or other security satisfactory to the board; provided that loans to finance export trade activities may be secured by export accounts receivable or inventories of exportable goods satisfactory to the board;
(5) Does not exceed five million dollars;
(6) Does not have a term longer than five years if such loan is made to finance export trade activities; and
(7) Is, when used to finance export trade activities, made to small or medium size businesses or agricultural businesses, as may be defined by the board.
2. The board shall prescribe standards for the evaluation of the financial condition, business history, and qualifications of each borrower and the terms and conditions of loans which may be secured, and may require each application to include a financial report and evaluation by an independent certified public accounting firm, in addition to such examination and evaluation as may be conducted by any participating lender.
3. Each application for a loan secured by the development and reserve fund, the infrastructure development fund or the export finance fund shall be reviewed in the first instance by any participating lender to whom the application was submitted. If satisfied that the standards prescribed by the board are met and that the loan is otherwise eligible to be secured by the development and reserve fund, the infrastructure development fund or the export finance fund, the participating lender shall certify the same and forward the application for final approval to the board.
4. The securing of any loans by the development and reserve fund, the infrastructure development fund or the export finance fund shall be conditioned upon approval of the application by the board, and receipt of an annual reserve participation fee, as prescribed by the board, submitted by or on behalf of the borrower.
5. The securing of any loan by the export finance fund for export trade activities shall be conditioned upon the board's compliance with any applicable treaties and international agreements, such as the general agreement on tariffs and trade and the subsidies code, to which the United States is then a party.
6. Any taxpayer shall be entitled to a tax credit against any tax otherwise due under the provisions of chapter 143, RSMo, excluding withholding tax imposed by sections 143.191 to 143.261, RSMo, chapter 147, RSMo, or chapter 148, RSMo, in the amount of fifty percent of any amount contributed in money or property by the taxpayer to the development and reserve fund, the infrastructure development fund or the export finance fund during the taxpayer's tax year, provided, however, the total tax credits awarded in any calendar year beginning after January 1, 1994, shall not be the greater of [ten] twenty million dollars or five percent of the average growth in general revenue receipts in the preceding three fiscal years. This limit may be exceeded only upon joint agreement by the commissioner of administration, the director of the department of economic development, and the director of the department of revenue that such action is essential to ensure retention or attraction of investment in Missouri. If the board receives, as a contribution, real property, the contributor at such contributor's own expense shall have two independent appraisals conducted by appraisers certified by the Master Appraisal Institute. Both appraisals shall be submitted to the board, and the tax credit certified by the board to the contributor shall be based upon the value of the lower of the two appraisals. The board shall not certify the tax credit until the property is deeded to the board. Such credit shall not apply to reserve participation fees paid by borrowers under sections 100.250 to 100.297. The portion of earned tax credits which exceeds the taxpayer's tax liability may be carried forward for up to five years.
7. Notwithstanding any provision of law to the contrary, any taxpayer may sell, assign, exchange, convey or otherwise transfer tax credits allowed in subsection 6 of this section under the terms and conditions prescribed in subdivisions (1) and (2) of this subsection. Such taxpayer, hereinafter the assignor for the purpose of this subsection, may sell, assign, exchange or otherwise transfer earned tax credits:
(1) For no less than seventy-five percent of the par value of such credits; and
(2) In an amount not to exceed one hundred percent of annual earned credits.
The taxpayer acquiring earned credits, hereinafter the assignee for the purpose of this subsection, may use the acquired credits to offset up to one hundred percent of the tax liabilities otherwise imposed by chapter 143, RSMo, excluding withholding tax imposed by sections 143.191 to 143.261, RSMo, chapter 147, RSMo, or chapter 148, RSMo. Unused credits in the hands of the assignee may be carried forward for up to five years, provided all such credits shall be claimed within ten years following the tax years in which the contribution was made. The assignor shall enter into a written agreement with the assignee establishing the terms and conditions of the agreement and shall perfect such transfer by notifying the board in writing within thirty calendar days following the effective day of the transfer and shall provide any information as may be required by the board to administer and carry out the provisions of this section. Notwithstanding any other provision of law to the contrary, the amount received by the assignor of such tax credit shall be taxable as income of the assignor, and the excess of the par value of such credit over the amount paid by the assignee for such credit shall be taxable as income of the assignee.
100.297. 1. The board may authorize a tax credit, as described in this section, to the owner of any revenue bonds or notes issued by the board pursuant to the provisions of sections 100.250 to 100.297, for infrastructure facilities as defined in subdivision (9) of section 100.255, if, prior to the issuance of such bonds or notes, the board determines that:
(1) The availability of such tax credit is a material inducement to the undertaking of the project in the state of Missouri and to the sale of the bonds or notes;
(2) The loan with respect to the project is adequately secured by a first deed of trust or mortgage or comparable lien, or other security satisfactory to the board.
2. Upon making the determinations specified in subsection 1 of this section, the board may declare that each owner of an issue of revenue bonds or notes shall be entitled, in lieu of any other deduction with respect to such bonds or notes, to a tax credit against any tax otherwise due by such owner pursuant to the provisions of chapter 143, RSMo, excluding withholding tax imposed by sections 143.191 to 143.261, RSMo, chapter 147, RSMo, or chapter 148, RSMo, in the amount of one hundred percent of the unpaid principal of and unpaid interest on such bonds or notes held by such owner in the taxable year of such owner following the calendar year of the default of the loan by the borrower with respect to the project. The occurrence of a default shall be governed by documents authorizing the issuance of the bonds. The tax credit allowed pursuant to this section shall be available to the original owners of the bonds or notes or any subsequent owner or owners thereof. Once an owner is entitled to a claim, any such tax credits shall be transferable as provided in subsection 7 of section 100.286. Notwithstanding any provision of Missouri law to the contrary, any portion of the tax credit to which any owner of a revenue bond or note is entitled pursuant to this section which exceeds the total income tax liability of such owner of a revenue bond or note shall be carried forward and allowed as a credit against any future taxes imposed on such owner within the next ten years pursuant to the provisions of chapter 143, RSMo, excluding withholding tax imposed by sections 143.191 to 143.261, RSMo, chapter 147, RSMo, or chapter 148, RSMo. The eligibility of the owner of any revenue bond or note issued pursuant to the provisions of sections 100.250 to 100.297 for the tax credit provided by this section shall be expressly stated on the face of each such bond or note. The tax credit allowed pursuant to this section shall also be available to any financial institution or guarantor which executes any credit facility as security for bonds issued pursuant to this section to the same extent as if such financial institution or guarantor was an owner of the bonds or notes, provided however, in such case the tax credits provided by this section shall be available immediately following any default of the loan by the borrower with respect to the project. In addition to reimbursing the financial institution or guarantor for claims relating to unpaid principal and interest, such claim may include payment of any unpaid fees imposed by such financial institution or guarantor for use of the credit facility.
3. The aggregate principal amount of revenue bonds or notes outstanding at any time with respect to which the tax credit provided in this section shall be available shall not exceed [fifty] seventy-five million dollars.
100.760. After receipt of an application, the board may, with the approval of the department, enter into an agreement with an eligible industry for a credit pursuant to sections 100.700 to 100.850 if the board determines that all of the following conditions exist:
(1) The applicant's project will create new jobs that were not jobs previously performed by employees of the applicant in Missouri;
(2) The applicant's project is economically sound and will benefit the people of Missouri by increasing opportunities for employment and strengthening the economy of Missouri;
(3) Significant local incentives with respect to the project or eligible industry have been committed, which incentives may consist of:
(a) Cash or in-kind incentives derived from any nonstate source, including incentives provided by the affected political subdivisions, private industry and/or local chambers of commerce or similar such organizations; and/or
(b) Relief from local taxes, in either case as acceptable to the board;
(4) Receiving the credit is a major factor in the applicant's decision to go forward with the project and not receiving the credit will result in the applicant not creating new jobs in Missouri;
(5) Awarding the credit will result in an overall positive fiscal impact to the state[;
(6) There is at least one other state that the applicant verifies is being considered for the project; and
(7) A significant disparity is identified, using best available data in the projected costs for the applicant's project compared to the costs in the competing state, including the impact of the competing state's incentive programs. The competing state's incentive program shall include state, local, private and federal funds].
135.400. As used in sections 135.400 to 135.430, the following terms mean:
(1) "Certificate", a tax credit certificate issued by the department of economic development in accordance with sections 135.400 to 135.430;
(2) ["Community bank", either a bank community development corporation or development bank, which are financial organizations which receive investments from commercial financial institutions regulated by the federal reserve, the office of the comptroller of the currency, the office of thrift supervision, or the Missouri division of finance. Community banks, in addition to their other privileges, shall be allowed to make loans to businesses or equity investments in businesses or in real estate provided that such transactions have associated public benefits;
(3) "Community development corporation", a not-for-profit corporation whose board of directors is composed of businesses, civic and community leaders, and whose primary purpose is to encourage and promote the industrial, economic, entrepreneurial, commercial, and civic development or redevelopment of a community or area, including the provision of housing and community development projects that benefit low-income individuals and communities;
(4)] "Department", the Missouri department of economic development;
[(5)] (3) "Director", the director of the department of economic development, or a person acting under the supervision of the director;
[(6)] (4) "Investment", a transaction in which a Missouri small business [or a community bank] receives a monetary benefit from an investor pursuant to the provisions of sections 135.403 to 135.414;
[(7)] (5) "Investor", an individual, partnership, financial institution, trust or corporation meeting the eligibility requirements of sections 135.403 to 135.414. In the case of partnerships and nontaxable trusts, the individual partners or beneficiaries shall be treated as the investors;
(6) "Missouri innovation center", an innovation center created under 348.271, RSMo;
[(8)] (7) "Missouri small business", an independently owned and operated business as defined in Title 15 U.S.C. Section 632(a) and as described by Title 13 CFR Part 121, which is headquartered in Missouri and which employs at least eighty percent of its employees in Missouri, except that no such small business shall employ more than one hundred employees. Such businesses must be involved in interstate or intrastate commerce for the purpose of manufacturing, processing or assembling products, conducting research and development, or providing services in interstate commerce, but excluding retail, real estate, insurance or professional services[. For the purpose of qualifying for the tax credit pursuant to sections 135.400 to 135.430, "Missouri small business" shall include cooperative marketing associations organized pursuant to chapter 274, RSMo, which are engaged in the business of producing and marketing fuels derived from agriculture commodities, without regard for whether a cooperative marketing association has more than one hundred employees. Cooperative marketing associations organized pursuant to chapter 274, RSMo, shall not be required to comply with the requirements of section 135.414];
[(9)] (8) "Primary employment", work which pays at least the [minimum] county average wage and which is not seasonal or part-time;
[(10)] (9) "Principal owners", one or more persons who own an aggregate of fifty percent or more of the Missouri small business and who are involved in the operation of the business as a full-time professional activity;
[(11)] (10) "Project", any commercial or industrial business or other economic development activity undertaken in a target area, designed to reduce conditions of blight, unemployment or widespread reliance on public assistance which creates permanent primary employment opportunities;
(11) "Rural area", a county with a population of less than seventy-five thousand inhabitants or that does not contain an individual city with a population greater than fifty thousand inhabitants according to the most recent federal consensus;
(12) "Small business development center", a center as referenced in 620.1003, RSMo;
[(12)] (13) "State tax liability", any liability incurred by a taxpayer pursuant to the provisions of chapter 143, RSMo, chapter 147, RSMo, chapter 148, RSMo, section 375.916, RSMo, and chapter 153, RSMo, exclusive of the provisions relating to the withholding of tax as provided for in sections 143.191 to 143.265, RSMo, and related provisions;
[(13) "Target area", a group of blocks or a self-defined neighborhood where the rate of poverty in the area is greater than twice the national poverty rate and as defined by the department of social services in conjunction with the department of economic development. Areas of the state satisfying the criteria of this subdivision may be designated as a "target area" following appropriate findings made and certified by the departments of economic development and social services. In making such findings, the departments of economic development and social services may use any commonly recognized records and statistical indices published or made available by any agency or instrumentality of the federal or state government. No area of the state shall be a target area until so certified by the department of social services and the revitalization plan submitted pursuant to section 208.335, RSMo, has received approval.]
(14) "Small business tax credit review committee", a committee consisting of two representatives from the department of economic development, two representatives from the Missouri small business development centers, and one representative from a Missouri innovation center. This committee shall review all applications for the Missouri small business investment tax credit and make recommendations to the department of economic development on the authorization of such tax credits.
135.403. 1. Any investor who makes a qualified investment up to one hundred thousand dollars in a Missouri small business [shall be entitled to receive] may be issued a tax credit equal to [forty] thirty percent of the amount of the investment [or, in the case of a qualified investment in a Missouri small business in a distressed community as defined by section 135.530, a credit equal to sixty percent of the amount of the investment, and any investor who makes a qualified investment in a community bank or a community development corporation shall be entitled to receive a tax credit equal to fifty percent of the amount of the investment if the investment is made in a community bank or community development corporation for direct investment. The total amount of tax credits available for qualified investments in Missouri small businesses shall not exceed thirteen million dollars and at least four million dollars of the amount authorized by this section and certified by the department of economic development shall be for investment in Missouri small businesses in distressed communities. Authorization for all or any part of this four-million-dollar amount shall in no way restrict the eligibility of Missouri small businesses in distressed communities, as defined in section 135.530, for the remaining amounts authorized within this section. No more than twenty percent of the tax credits available each year for investments in community banks or community development corporations for direct investment shall be certified for any one project, as defined in section 135.400]. If the investment is in small businesses located in a distressed community as defined in section 135.530 or in a rural area, the investor may be issued tax credits equal to forty percent of the amount of the investment. Effective August 28, 2006, ten million dollars of tax credits each fiscal year shall be available for qualified investments in Missouri small businesses. The tax credit shall be evidenced by a tax credit certificate in accordance with the provisions of sections 135.400 to 135.430 and may be used to satisfy the state tax liability of the owner of the certificate that becomes due in the tax year in which the qualified investment is made, or in any of the ten tax years thereafter. [When the qualified small business is in a distressed community, as defined in section 135.530, the tax credit may also be used to satisfy the state tax liability of the owner of the certificate that was due during each of the previous three years in addition to the year in which the investment is made and any of the ten years thereafter.] No investor may receive a tax credit pursuant to sections 135.400 to 135.430 unless that person presents a tax credit certificate to the department of revenue for payment of such state tax liability. The department of revenue shall grant tax credits in the same order as established by subsection 1 of section 32.115, RSMo. Subject to the provisions of sections 135.400 to 135.430, certificates of tax credit issued in accordance with these sections may be transferred, sold or assigned by notarized endorsement thereof which names the transferee.
2. [Five hundred thousand dollars in tax credits shall be available annually from the total amount of tax credits authorized by section 32.110, RSMo, and subdivision (4) of subsection 2 of section 32.115, RSMo, as a result of investments in community banks or community development corporations. Aggregate investments eligible for tax credits in any one Missouri small business shall not be more than one million dollars. Aggregate investments eligible for tax credits in any one Missouri small business shall not be less than five thousand dollars as of the date of issuance of the first tax credit certificate for investment in that business.] All applications for the Missouri small business investment tax credit shall be submitted to the department of economic development. The small business tax credit review committee shall review and qualify all applications for the small business investment tax credit. The department of economic development shall not issue any certificates without the approval of the committee.
3. [This section and section 620.1039, RSMo, shall become effective January 1, 2001.] If the investor is an individual, partnership, trust, or corporation meeting the eligibility requirements of sections 135.403 to 135.414, a tax credit shall be issued if approved. In the case of partnerships and nontaxable trusts, the individual partners or beneficiaries shall be treated as the investors. If the investor is a financial institution that has made a loan not to exceed one million dollars to the qualified Missouri small business, the tax credit shall be held as a guarantee on the loan and shall only be issued and redeemed by the financial institution if the small business defaults on the loan within the first five years of the loan.
135.440. As used in sections 135.440 to 135.448, the following words and terms mean:
(1) "Business firm", person, firm, a partner in a firm, corporation or a shareholder in an S corporation doing business in the state of Missouri and subject to the state income tax imposed by the provisions of chapter 143, RSMo, or a corporation subject to the annual corporation franchise tax imposed by the provisions of chapter 147, RSMo, or an insurance company paying an annual tax on its gross premium receipts in this state, or other financial institution paying taxes to the state of Missouri or any political subdivision of this state under the provisions of chapter 148, RSMo;
(2) "Community development", new construction or rehabilitation of buildings or properties and community services that have a measurable impact on the local or state economy;
(3) "Economic development", the acquisition, renovation, improvement, or the furnishing or equipping of existing buildings and real estate when such acquisition, renovation, improvement, or the furnishing or equipping of such buildings and real estate will result in the creation or retention of jobs within the state;
(4) "Education", includes programs which encourage Missouri residents who are high school dropouts to either reenter and graduate from high school or earn a graduate equivalency degree, and scholarship assistance in the areas of math and science to residents of the state of Missouri attending schools located in the state;
(5) "Incubator", a program in which small units of space may be leased by a tenant and in which management maintains or provides access to business development services for use by tenants or a program without infrastructure in which participants avail themselves of business development services to assist in the growth of their start-up small businesses;
(6) "In-kind contribution", a donation of nonmonetary property or services;
(7) "Job training", any type of instruction to an individual who resides in the state of Missouri that enables the individual to acquire vocational skills so that the individual can become employable or be able to seek a higher grade of employment;
(8) "Local government", any Missouri county, city, town, or village;
(9) "Local sponsor" or "sponsor", an organization which enters into a written agreement with the department of economic development to establish, operate, and administer a small business incubator program or to provide funding to an organization which operates such a program;
(10) "Not-for-profit organization", a corporation incorporated in the state of Missouri under the provisions of chapter 355, RSMo, or any organization that has obtained an exemption from the payment of federal income taxes as provided in section 501(c)(3) of the Internal Revenue Code of 1986, as amended;
(11) "Participant", a sole proprietorship, business partnership or corporation operating a business for profit through which the owner avails himself or herself of business development services in an incubator program;
(12) "Physical revitalization", furnishing financial assistance, labor, material, or technical advice to aid in the physical improvement or rehabilitation of any part or all of a neighborhood area;
(13) "Program participant", any local government, not-for-profit organization, or school approved by the director of the department of economic development to participate in the community assistance program;
(14) "Quality job", an employed position in which the employee works an average of at least thirty-five hours per week for an employer that offers health insurance and at a wage that meets or exceeds the county average wage;
(15) "Rural community project", a project located in any community where such community is a city, town, or village which has fifteen thousand or fewer inhabitants as of the last decennial census and is located in a county which is either located in:
(a) An area that is not part of a standard metropolitan statistical area; or
(b) A standard metropolitan statistical area but such county has only one city, town, or village which has more than fifteen thousand inhabitants;
(16) "S corporation", a corporation described in section 1361(a)(1) of the Internal Revenue Code of 1986, as amended, and not subject to the taxes imposed by section 143.071, RSMo, by reason of section 143.471, RSMo;
(17) "School", any public elementary or high school, as those terms are defined in section 160.011, RSMo, located within the state of Missouri, and any institution of postsecondary education, including universities, colleges, vocational and technical schools, located within the state of Missouri;
(18) "Taxpayer", corporations, as defined in section 143.441, RSMo, individuals, sole proprietorships, partnerships, and S corporations;
(19) "Tenant", a sole proprietorship, business partnership, or corporation operating a business for profit and leasing or otherwise occupying space in an incubator;
(20) "Youth development", projects serving youths ages twenty-one and under, including but not limited to, high school degree completion, employment, and youth activity centers.
135.442. 1. This section shall be known and may be cited as the "Community Assistance Program".
2. The tax credits allowed under the community assistance program shall be in an amount equal to:
(1) Thirty percent of the contribution for in-kind contributions;
(2) Fifty percent of the contribution for monetary contributions; or
(3) Seventy percent of the contribution for monetary contributions to a rural community project.
3. Program participants shall administer projects including but not limited to the areas of community development, education, physical revitalization, job training, and youth development.
4. The department of economic development shall give priority to program participants whose projects benefit a community or region with a demonstrated need for public investment in its infrastructure which may include, but not be limited to, local information on:
(1) Median household income;
(2) Unemployment or stresses resulting from rapid employment growth;
(3) Other labor demographics;
(4) Educational attainment or education expansion opportunities;
(5) Population loss or rapid population growth;
(6) Underemployment;
(7) Depletion of natural resources;
(8) Job loss or company closure, or company expansion or attraction;
(9) Tax or fee revenue circumstances; or
(10) Other statistics that adequately portray the circumstances of the community or region.
135.444. 1. This section shall be known as the "Small Business Incubators Act".
2. There is hereby established under the direction of the department of economic development a loan, loan guarantee, and grant program for the establishment, operation, and administration of small business incubators, to be known as the "Small Business Incubator Program". A local sponsor may submit an application to the department of economic development to obtain a loan, loan guarantee, or grant to establish an incubator. Each application shall:
(1) Demonstrate that a program exists that can be transformed into an incubator at a specified cost;
(2) Demonstrate the ability to directly provide or arrange for the provision of business development services for tenants and participants of the incubator. These services shall include, but need not be limited to, financial consulting assistance, management and marketing assistance, business education, and physical services;
(3) Demonstrate a potential for sustained use of the incubator program by eligible tenants and participants through a market study or other means;
(4) Demonstrate the ability to manage and operate the incubator program;
(5) Include such other information as the department of economic development may require through its guidelines.
3. The department of economic development shall review and accept applications based on the following criteria:
(1) Ability of the local sponsor to carry out the provisions of this section;
(2) Economic impact of the incubator on the community;
(3) Conformance with areawide and local economic development plans, if such exist;
(4) Location of the incubator, in order to encourage geographic distribution of incubators across the state.
4. Loans, loan guarantees, and grants shall be administered in the following manner:
(1) Loans awarded or guaranteed and grants awarded shall be used only for the acquisition and leasing of land and existing buildings, the rehabilitation of buildings or other facilities, construction of new facilities, the purchase of equipment and furnishings which are necessary for the creation and operation of the incubator, and business development services including, but not limited to, business management advising and business education;
(2) Loans, loan guarantees, and grants shall not exceed fifty percent of total eligible project costs;
(3) Payment of interest and principal on loans may be deferred at the discretion of the department of economic development.
5. A local sponsor, or the organization receiving assistance through the local sponsor, shall have the following responsibilities and duties in establishing and operating an incubator with assistance from the small business incubator program:
(1) Secure title on a facility for the program or a lease of a facility for the program;
(2) Manage the physical development of the incubator program, including the provision of common conference or meeting space;
(3) Furnish and equip the program to provide business services to the tenants and participants;
(4) Market the program and secure eligible tenants and participants;
(5) Provide financial consulting, marketing, and management assistance services or arrange for the provision of these services for tenants and participants of the incubator, including assistance in accessing private financial markets;
(6) Set rental and service fees;
(7) Encourage the sharing of ideas between tenants and participants and otherwise aid the tenants and participants in an innovative manner while they are within the incubator;
(8) Establish policies and criteria for the acceptance of tenants and participants into the incubator and for the termination of occupancy of tenants so as to maximize the opportunity to succeed for the greatest number of tenants, consistent with those specified in this section.
6. The department of economic development:
(1) May adopt such rules, statements of policy, procedures, forms and guidelines as may be necessary for the implementation of this section;
(2) May make loans, loan guarantees, and grants to local sponsors for incubators;
(3) Shall ensure that local sponsors receiving loans, loan guarantees or grants meet the conditions of this section;
(4) Shall receive and evaluate annual reports from local sponsors. Such annual reports shall include, but need not be limited to, a financial statement for the incubator, evidence that all tenants and participants in the program are eligible under the terms of this section, and a list of companies in the incubator.
7. The department of economic development is also hereby authorized to review any previous loans made under this program and, where appropriate in the department's judgment, convert such loans to grant status.
8. On or before January first of each year, the department of economic development shall provide a report to the governor, the chief clerk of the house of representatives, and the secretary of the senate which shall include, but need not be limited to:
(1) The number of applications for incubators submitted to the department;
(2) The number of applications for incubators approved by the department;
(3) The number of incubators created through the small business incubator program;
(4) The number of tenants and participants engaged in each incubator;
(5) The number of jobs provided by each incubator and tenants and participant of each incubator;
(6) The occupancy rate of each incubator;
(7) The number of firms still operating in the state after leaving incubators and the number of jobs they have provided.
9. There is hereby established in the state treasury a special fund to be known as the "Missouri Small Business Incubators Fund", which shall consist of all moneys which may be appropriated to it by the general assembly, and also any gifts, contributions, grants, or bequests received from federal, private, or other sources. Moneys for loans, loan guarantees, and grants under the small business incubator program may be obtained from appropriations made by the general assembly from the Missouri small business incubators fund. Any moneys remaining in the Missouri small business incubators fund at the end of any fiscal year shall not lapse to the general revenue fund, as provided in section 33.080, RSMo, but shall remain in the Missouri small business incubators fund.
10. A taxpayer shall be entitled to a tax credit under this section in an amount equal to fifty percent of any amount contributed by the taxpayer to the Missouri small business incubators fund during the taxpayer's tax year or any contribution by the taxpayer to a local sponsor after the local sponsor's application has been accepted and approved by the department of economic development.
135.446. 1. This section may be cited as the "Development Tax Credit Program".
2. Any business firm may apply to the department of economic development to conduct economic development projects. The department of economic development shall approve applications on an individual case-by-case basis, giving priority to manufacturing, processing or assembly, corporate headquarters, services in interstate commerce, and warehouse or distribution business projects proposing wages above the average for the area and which provide health benefits. Credits approved for an economic development project shall be limited to the least of ten thousand dollars per quality job created or retained, fifty percent of the purchase price of new capital improvements or equipment, five hundred thousand dollars per project, or the least amount needed to cause the project to occur. Credits approved for all economic development projects authorized under this section shall not exceed six million dollars in any one fiscal year.
135.448. 1. A taxpayer shall be allowed a tax credit against the tax otherwise due under chapter 143, RSMo, excluding withholding tax imposed by sections 143.191 to 143.265, RSMo, chapter 147, or 148, RSMo, for contributions under sections 135.442 to 135.446.
2. The tax credits allowed by sections 135.442 to 135.446 shall be claimed by the taxpayer to offset the taxes that become due in the taxpayer's tax period in which the contribution was made. Any tax credit not used in such tax period may be carried over the next five succeeding tax periods.
3. Notwithstanding any provision of law to the contrary, any taxpayer, for the purpose of this subsection referred to as assignor, may assign, sell, or transfer, in whole or in part, the tax credits issued under sections 135.442 to 135.446 to any other taxpayer, for the purpose of this subsection referred to as assignee, for no less than seventy-five percent of the par value of such credits and in an amount not to exceed one hundred percent of annual earned credits. To perfect the transfer, the assignor shall provide written notice to the department of economic development of the assignor's intent to transfer the tax credits to the assignee, the date the transfer is effective, the assignee's name, address, and the assignee's tax period, and the amount of tax credits to be transferred.
4. The department of economic development may adopt such rules, statements of policy, procedures, forms, and guidelines as may be necessary to carry out the provisions of sections 135.442 to 135.446. Any rule or portion of a rule, as that term is defined in section 536.010, RSMo, that is created under the authority delegated in this section shall become effective only if it complies with and is subject to all of the provisions of chapter 536, RSMo, and, if applicable, section 536.028, RSMo. This section and chapter 536, RSMo, are nonseverable and if any of the powers vested with the general assembly under chapter 536, RSMo, to review, to delay the effective date, or to disapprove and annul a rule are subsequently held unconstitutional, then the grant of rulemaking authority and any rule proposed or adopted after August 28, 2006, shall be invalid and void.
5. The total amount of tax credits granted under the community assistance program and the small business incubator program shall not exceed twenty-six million dollars for state fiscal year 2008 and any subsequent fiscal years. Of that amount, up to six million dollars shall be allocated to youth development and up to eight million dollars shall be allocated to rural community projects.
6. In the event that a program participant, in the case of a community assistance program project, a local sponsor, in the case of a small business incubator program project, or a business firm, in the case of development tax credit program project, fails to complete a project authorized under sections 135.440 to 135.446, or otherwise fails to abide by the conditions of participation in such three programs as set forth by statute, rule, or agreement, the department of economic development may terminate participation in the program, require refund of donations, and require repayment to the state of Missouri in an amount equivalent to the amount of tax credits for project donations that have already been redeemed.
135.449. For all tax years beginning on or after January 1, 2007, no tax credits shall be approved, awarded, or issued to any person or entity claiming any tax credit under section 135.460, sections 208.750 to 208.775, RSMo, and section 620.495, RSMo. If an organization has been allocated credits for contribution-based credits prior to January 1, 2007, the organization may issue such credits prior to January 1, 2011, for qualified contributions.
135.566. 1. As used in this section, the following terms mean:
(1) "Disabled employee", any person who is determined to be disabled by the Social Security Administration or the Department of Veterans' Affairs, or any person who is determined to be disabled by the division of vocational rehabilitation and is participating in the division's job placement program;
(2) "Tax credit", a credit against the tax otherwise due under chapter 143, RSMo, excluding withholding tax imposed by sections 143.191 to 143.265, RSMo, or otherwise due under chapter 147, 148, or 153, RSMo;
(3) "Taxpayer", any entity subject to the tax imposed in chapter 143, RSMo, excluding withholding tax imposed by sections 143.191 to 143.265, RSMo, or the tax imposed in chapter 147, 148, or 153, RSMo, except "taxpayer" shall not include a resident or nonresident individual subject to the tax imposed in chapter 143, RSMo.
2. For all taxable years beginning on or after January 1, 2006, a taxpayer shall be allowed a tax credit for each disabled employee hired by the taxpayer. The tax credit shall be claimed in the following amounts:
(1) For disabled employees who work an average of at least ten hours per week in the taxable year, seven hundred fifty dollars per disabled employee;
(2) For disabled employees who work an average of at least twenty hours per week in the taxable year, one thousand dollars per disabled employee;
(3) For disabled employees who work an average of at least forty hours per week in the taxable year, two thousand dollars per disabled employee.
3. The amount of the tax credit claimed shall not exceed the amount of the taxpayer's state tax liability for the tax year for which the credit is claimed. No amount of credit that the taxpayer is prohibited by this section from claiming in a tax year shall be refundable, nor shall any tax credit granted under this section shall be transferable.
4. The department of revenue shall promulgate rules to implement the provisions of this section. Any rule or portion of a rule, as that term is defined in section 536.010, RSMo, that is created under the authority delegated in this section shall become effective only if it complies with and is subject to all of the provisions of chapter 536, RSMo, and, if applicable, section 536.028, RSMo. This section and chapter 536, RSMo, are nonseverable and if any of the powers vested with the general assembly pursuant to chapter 536, RSMo, to review, to delay the effective date, or to disapprove and annul a rule are subsequently held unconstitutional, then the grant of rulemaking authority and any rule proposed or adopted after August 28, 2006, shall be invalid and void.
5. No company shall receive a tax credit under this section for any new employee who has previously been an employee of the company during the twelve months prior to applying for such tax credit.
6. Under section 23.253, RSMo, of the Missouri Sunset Act:
(1) The provisions of the new program authorized under this section shall automatically sunset six years after the effective date of this section unless reauthorized by an act of the general assembly; and
(2) If such program is reauthorized, the program authorized under this section shall automatically sunset twelve years after the effective date of the reauthorization of this section; and
(3) This section shall terminate on September first of the calendar year immediately following the calendar year in which the program authorized under this section is sunset.
135.662. 1. As used in this section, the following terms mean:
(1) "Adjusted purchase price", the product of:
(a) The amount paid to the issuer of a qualified equity investment for such qualified equity investment; and
(b) The following fraction:
a. The numerator shall be the dollar amount of qualified low-income community investments held by the issuer of the qualified equity investments in this state, determined as of the immediately preceding credit allowance date; and
b. The denominator shall be the total dollar amount of qualified low-income community investments made by the issuer, determined as of the immediately preceding credit allowance date;
(2) "Applicable percentage", five percent for each credit allowance date;
(3) "Credit allowance date", with respect to any qualified equity investment:
(a) The date on which such investment is initially made; and
(b) Each of the six anniversary dates of such dates thereafter;
(4) "Qualified equity investment", the definition given in Section 45D of the Internal Revenue Code of 1986, as amended;
(5) "Tax credit", a credit against the tax otherwise due under chapter 143, RSMo, excluding withholding tax imposed in sections 143.191 to 143.265, RSMo, or otherwise due under section 375.916, RSMo, or chapter 147, 148, or 153, RSMo;
(6) "Taxpayer", any individual or entity subject to the tax imposed in chapter 143, RSMo, excluding withholding tax imposed in sections 143.191 to 143.265, RSMo, or the tax imposed in section 375.916, RSMo, or chapter 147, 148, or 153, RSMo.
2. For all taxable years beginning on or after January 1, 2007, a taxpayer shall be allowed a tax credit for qualified equity investments held on a credit allowance date of such qualified equity investment during the taxable year for which the tax credit is claimed. The tax credit amount shall be equal to the applicable percentage of the adjusted purchase price paid to the issuer of such qualified equity investment for such investment on such credit allowance date. The amount of the tax credit claimed shall not exceed the amount of the taxpayer's state tax liability for the tax year for which the tax credit is claimed. No tax credit claimed under this section shall be refundable or transferable. Any amount of tax credit that the taxpayer is prohibited by this section from claiming in a taxable year may be carried forward to any of the taxpayer's subsequent taxable years. The amount of tax credits that may be claimed by all taxpayers claiming the tax credit authorized in this section in each taxable year shall not exceed three million dollars. No taxpayer claiming a tax credit under this section shall be allowed a tax credit for any amount of qualified equity investments held by the taxpayer in excess of five million dollars.
3. The issuer of the qualified equity investment shall certify to the department of revenue the anticipated dollar amount of such investments to be made in the first twelve-month period following the initial credit allowance date. If on the second credit allowance date, the actual dollar amount of such investments is lower than the amount estimated, the department of revenue shall recapture the difference from the taxpayer claiming a credit under this section. If any amount of the federal tax credit available with respect to a qualified equity investment that is eligible for a tax credit under this section is recaptured under Section 45D of the Internal Revenue Code of 1986, as amended, the department of revenue may recapture a portion of the tax credit allowed under this section with respect to such qualified equity investment under this section. The percentage of the tax credit allowed under this section that the department of revenue may recapture shall be equal to the percentage of the total federal tax credit earned with respect to such qualified equity investment that is recaptured under Section 45D of the Internal Revenue Code of 1986, as amended.
4. The department of revenue shall promulgate rules to implement the provisions of this section. Any rule or portion of a rule, as that term is defined in section 536.010, RSMo, that is created under the authority delegated in this section shall become effective only if it complies with and is subject to all of the provisions of chapter 536, RSMo, and, if applicable, section 536.028, RSMo. This section and chapter 536, RSMo, are nonseverable and if any of the powers vested with the general assembly pursuant to chapter 536, RSMo, to review, to delay the effective date, or to disapprove and annul a rule are subsequently held unconstitutional, then the grant of rulemaking authority and any rule proposed or adopted after August 28, 2006, shall be invalid and void.
5. (1) Under section 23.253, RSMo, of the Missouri Sunset Act:
(a) The provisions of the new program authorized under this section shall automatically sunset six years after the effective date of this section unless reauthorized by an act of the general assembly; and
(b) If such program is reauthorized, the program authorized under this section shall automatically sunset twelve years after the effective date of the reauthorization of this section; and
(c) This section shall terminate on September first of the calendar year immediately following the calendar year in which the program authorized under this section is sunset;
(2) However nothing in this subsection shall preclude a taxpayer who makes a qualified equity investment prior to sunset of this section under the provision of the Missouri Sunset Act, Section 23.253, RSMo, from claiming tax credits relating to such qualified equity investment for each credit allowance date.
135.700. For all tax years beginning on or after January 1, 1999, a grape grower or wine producer shall be allowed a tax credit against the state tax liability incurred pursuant to chapter 143, RSMo, exclusive of the provisions relating to the withholding of tax as provided in sections 143.191 to 143.265, RSMo, in an amount equal to twenty-five percent of the purchase price of all new equipment and materials used directly in the growing of grapes or the production of wine in the state. [Each] Activities qualifying the grower or producer for the tax credit under this section shall be preapproved by the Missouri agriculture and small business development authority based on established priority criteria. Once approved, the grower or producer shall apply to the [department of economic development] Missouri agriculture and small business development authority and specify the total amount of such new equipment and materials purchased during the calendar year. The [department of economic development] Missouri agriculture and small business development authority shall certify to the department of revenue the amount of such tax credit to which a grape grower or wine producer is entitled pursuant to this section. The provisions of this section notwithstanding, a grower or producer may only apply for and receive the credit authorized by this section for five tax periods. Tax credits authorized by this section may be transferred, sold, or assigned by filing a notarized endorsement thereof with the Missouri agriculture and small business development authority that names the transferee, the amount of tax credit transferred, and the value received for the credit, as well as any other information reasonably requested by the Missouri agriculture and small business development authority. Tax credits issued under this section shall not exceed five hundred thousand dollars per calendar year.
135.800. 1. The provisions of sections 135.800 to 135.830 shall be known and may be cited as the "Tax Credit Accountability Act of 2004".
2. As used in sections 135.800 to 135.830, the following terms mean:
(1) "Administering agency", the state agency or department charged with administering a particular tax credit program, as set forth by the program's enacting statute; where no department or agency is set forth, the department of revenue;
(2) "Agricultural tax credits", the agricultural product utilization contributor tax credit created pursuant to section 348.430, RSMo, the new generation cooperative incentive tax credit created pursuant to section 348.432, RSMo, and the wine and grape production tax credit created pursuant to section 135.700;
(3) "All tax credit programs", the tax credit programs included in the definitions of agricultural tax credits, business recruitment tax credits, community development tax credits, domestic and social tax credits, entrepreneurial tax credits, environmental tax credits, housing tax credits, redevelopment tax credits, and training and educational tax credits;
(4) "Business recruitment tax credits", the business facility tax credit created pursuant to sections 135.110 to 135.150 and section 135.258, the enterprise zone tax benefits created pursuant to sections 135.200 to 135.270, the business use incentives for large-scale development programs created pursuant to sections 100.700 to 100.850, RSMo, the development tax credits created pursuant to [sections 32.100 to 32.125, RSMo] section 135.446, the rebuilding communities tax credit created pursuant to section 135.535, and the film production tax credit created pursuant to section 135.750;
(5) "Community development tax credits", [the neighborhood assistance tax credit created pursuant to sections 32.100 to 32.125, RSMo, the family development account tax credit created pursuant to sections 208.750 to 208.775, RSMo] the community tax credit created under section 135.442, the dry fire hydrant tax credit created pursuant to section 320.093, RSMo, and the transportation development tax credit created pursuant to section 135.545;
(6) "Domestic and social tax credits", [the youth opportunities tax credit created pursuant to section 135.460 and sections 620.1100 to 620.1103, RSMo,] the shelter for victims of domestic violence created pursuant to section 135.550, the senior citizen or disabled person property tax credit created pursuant to sections 135.010 to 135.035, the special needs adoption tax credit created pursuant to sections 135.325 to 135.339, the maternity home tax credit created pursuant to section 135.600, and the shared care tax credit created pursuant to section 660.055, RSMo;
(7) "Entrepreneurial tax credits", the capital tax credit created pursuant to sections 135.400 to 135.429, the certified capital company tax credit created pursuant to sections 135.500 to 135.529, the seed capital tax credit created pursuant to sections 348.300 to 348.318, RSMo, the new enterprise creation tax credit created pursuant to sections 620.635 to 620.653, RSMo, the research tax credit created pursuant to section 620.1039, RSMo, the small business incubator tax credit created pursuant to section [620.495, RSMo, the guarantee fee tax credit created pursuant to section 135.766] 135.444, and the new generation cooperative tax credit created pursuant to sections 32.105 to 32.125, RSMo;
(8) "Environmental tax credits", the charcoal producer tax credit created pursuant to section 135.313, the wood energy tax credit created pursuant to sections 135.300 to 135.311, and the manufacturing and recycling flexible cellulose casing tax credit created pursuant to section 260.285, RSMo;
(9) "Housing tax credits", the neighborhood preservation tax credit created pursuant to sections 135.475 to 135.487, the low-income housing tax credit created pursuant to sections 135.350 to 135.363, and the affordable housing tax credit created pursuant to sections 32.105 to 32.125, RSMo;
(10) "Recipient", the individual or entity who is the original applicant for and who receives proceeds from a tax credit program directly from the administering agency, the person or entity responsible for the reporting requirements established in section 135.805;
(11) "Redevelopment tax credits", the historic preservation tax credit created pursuant to sections 253.545 to 253.561, RSMo, the brownfield redevelopment program tax credit created pursuant to sections 447.700 to 447.718, RSMo, the community development corporations tax credit created pursuant to sections 135.400 to 135.430, the infrastructure tax credit created pursuant to subsection 6 of section 100.286, RSMo, the bond guarantee tax credit created pursuant to section 100.297, RSMo, and the disabled access tax credit created pursuant to section 135.490;
(12) "Training and educational tax credits", the community college new jobs tax credit created pursuant to sections 178.892 to 178.896, RSMo, the skills development account tax credit created pursuant to sections 620.1400 to 620.1460, RSMo, the mature worker tax credit created pursuant to section 620.1560, RSMo, and the sponsorship and mentoring tax credit created pursuant to section 135.348.
135.903. 1. To qualify as a rural empowerment zone, an area shall meet all the following criteria:
(1) The area is one of pervasive poverty, unemployment, and general distress;
(2) At least sixty-five percent of the population has earned income below eighty percent of the median income of all residents within the state according to the last decennial census or other appropriate source as approved by the director;
(3) The population of the area is at least four hundred but not more than three thousand five hundred at the time of designation as a rural empowerment zone;
(4) The level of unemployment of persons, according to the most recent data available from the division of employment security or from the United States Bureau of Census and approved by the director, within the area exceeds one and one-half times the average rate of unemployment for the state of Missouri over the previous twelve months, or the percentage of area residents employed on a full-time basis is less than fifty percent of the statewide percentage of residents employed on a full-time basis;
(5) The area is situated more than ten miles from any existing rural empowerment zone;
(6) The area is situated in a county of the third classification without a township form of government and with more than eight thousand nine hundred twenty-five but less than nine thousand twenty-five inhabitants, a county of the third classification without a township form of government and with more than ten thousand three hundred but fewer than ten thousand four hundred inhabitants or a county of the third classification without a township form of government and with more than nine thousand six hundred fifty but fewer than nine thousand seven hundred fifty inhabitants; and
(7) The area is not situated in an existing enterprise zone.
2. The governing body of any county in which an area may be designated a rural empowerment zone shall submit to the department an application showing that the area complies with the requirements of subsection 1 of this section. The department shall declare the area a rural empowerment zone if upon investigation the department finds that the area meets the requirements of subsection 1 of this section. If the area is found not to meet the requirements, the governing body shall have the opportunity to submit another application for designation as a rural empowerment zone and the department shall designate the area a rural empowerment zone if upon investigation the department finds that the area meets the requirements of subsection 1 of this section.
3. There shall be no more than two rural empowerment zones as created under sections 135.900 to 135.906 in existence at any time.
135.950. The following terms, whenever used in sections 135.950 to 135.970 mean:
(1) "Blighted area", an area which, by reason of the predominance of defective or inadequate street layout, unsanitary or unsafe conditions, deterioration of site improvements, improper subdivision or obsolete platting, or the existence of conditions which endanger life or property by fire and other causes, or any combination of such factors, retards the provision of housing accommodations or constitutes an economic or social liability or a menace to the public health, safety, morals, or welfare in its present condition and use;
(2) "Board", an enhanced enterprise zone board established pursuant to section 135.957;
(3) "Commencement of commercial operations" shall be deemed to occur during the first taxable year for which the new business facility is first put into use by the taxpayer in the enhanced business enterprise in which the taxpayer intends to use the new business facility;
(4) "Department", the department of economic development;
(5) "Director", the director of the department of economic development;
(6) "Employee", [a person employed by the enhanced business enterprise on:
(a) A regular, full-time basis;
(b) A part-time basis, provided such person is customarily performing such duties an average of at least twenty hours per week; or
(c) A seasonal basis, provided such person performs such duties for at least eighty percent of the season customary for the position in which such person is employed] a person that is scheduled to work an average of at least thirty-five hours per week for a twelve-month period;
(7) "Enhanced business enterprise", an industry or one of a cluster of industries that is either:
(a) Identified by the department as critical to the state's economic security and growth; or
(b) Will have an impact on industry cluster development, as identified by the governing authority in its application for designation of an enhanced enterprise zone and approved by the department; but excluding gambling establishments (NAICS industry group 7132), retail trade (NAICS sectors 44 and 45) and food and drinking places (NAICS subsector 722). Service industries may be eligible only if a majority of its annual revenues will be derived from services provided out of the state;
(8) "Existing business facility", any facility in this state which was employed by the taxpayer claiming the credit in the operation of an enhanced business enterprise immediately prior to an expansion, acquisition, addition, or replacement;
(9) "Facility", any building used as an enhanced business enterprise located within an enhanced enterprise zone, including the land on which the facility is located and all machinery, equipment, and other real and depreciable tangible personal property acquired for use at and located at or within such facility and used in connection with the operation of such facility;
(10) "Facility base employment", the greater of the number of full-time employees located at the facility on the date of the notice of intent, or for the twelve-month period prior to the date of the notice of intent, the average number of employees located at the facility or in the event the project facility has not been in operation for a full twelve-month period, the average number of employees for the number of months the facility has been in operation prior to the date of the notice of intent;
(11) "Facility base payroll", the total amount of taxable wages paid by the enhanced business enterprise to employees of the enhanced business enterprise located at the facility in the twelve months prior to the notice of intent, not including the payroll of owners of the enhanced business enterprise unless the enhanced business enterprise is participating in an employee stock ownership plan. For the purposes of calculating the benefits under this program, the amount of base payroll shall increase each year based on the Consumer Price Index, or other comparable measure, as determined by the department;
(12) "Governing authority", the body holding primary legislative authority over a county or incorporated municipality;
[(11)] (13) "NAICS", the 1997 edition of the North American Industry Classification System as prepared by the Executive Office of the President, Office of Management and Budget. Any NAICS sector, subsector, industry group or industry identified in this section shall include its corresponding classification in subsequent federal industry classification systems;
[(12)] (14) "New business facility", a facility that satisfies the following requirements:
(a) Such facility is employed by the taxpayer in the operation of an enhanced business enterprise. Such facility shall not be considered a new business facility in the hands of the taxpayer if the taxpayer's only activity with respect to such facility is to lease it to another person or persons. If the taxpayer employs only a portion of such facility in the operation of an enhanced business enterprise, and leases another portion of such facility to another person or persons or does not otherwise use such other portions in the operation of an enhanced business enterprise, the portion employed by the taxpayer in the operation of an enhanced business enterprise shall be considered a new business facility, if the requirements of paragraphs (b), (c), and (d) of this subdivision are satisfied;
(b) Such facility is acquired by, or leased to, the taxpayer after December 31, 2004. A facility shall be deemed to have been acquired by, or leased to, the taxpayer after December 31, 2004, if the transfer of title to the taxpayer, the transfer of possession pursuant to a binding contract to transfer title to the taxpayer, or the commencement of the term of the lease to the taxpayer occurs after December 31, 2004;
(c) If such facility was acquired by the taxpayer from another taxpayer and such facility was employed immediately prior to the acquisition by another taxpayer in the operation of an enhanced business enterprise, the operation of the same or a substantially similar enhanced business enterprise is not continued by the taxpayer at such facility; and
(d) Such facility is not a replacement business facility, as defined in subdivision [(16)] (22) of this section;
[(13)] (15) "New business facility employee", an employee of the taxpayer in the operation of a new business facility during the taxable year for which the credit allowed by section 135.967 is claimed, except that truck drivers and rail and barge vehicle operators and other operators of rolling stock for hire shall not constitute new business facility employees;
[(14)] (16) "New business facility investment", the value of real and depreciable tangible personal property, acquired by the taxpayer as part of the new business facility, which is used by the taxpayer in the operation of the new business facility, during the taxable year for which the credit allowed by 135.967 is claimed, except that trucks, truck-trailers, truck semitrailers, rail vehicles, barge vehicles, aircraft and other rolling stock for hire, track, switches, barges, bridges, tunnels, and rail yards and spurs shall not constitute new business facility investments. The total value of such property during such taxable year shall be:
(a) Its original cost if owned by the taxpayer; or
(b) Eight times the net annual rental rate, if leased by the taxpayer. The net annual rental rate shall be the annual rental rate paid by the taxpayer less any annual rental rate received by the taxpayer from subrentals. The new business facility investment shall be determined by dividing by twelve the sum of the total value of such property on the last business day of each calendar month of the taxable year. If the new business facility is in operation for less than an entire taxable year, the new business facility investment shall be determined by dividing the sum of the total value of such property on the last business day of each full calendar month during the portion of such taxable year during which the new business facility was in operation by the number of full calendar months during such period;
(17) "New job", the number of employees located at the facility that exceeds the facility base employment less any decrease in the number of employees at related facilities below the related facility base employment. No job that was created prior to the date of the notice of intent shall be deemed a new job;
(18) "Notice of intent", a form developed by the department, completed by the enhanced business enterprise, and submitted to the department which states the enhanced business enterprise's intent to hire new jobs and request benefits under this program;
(19) "Related facility", a facility operated by the enhanced business enterprise or a related company located in this state that is directly related to the operations of the project facility;
(20) "Related facility base employment", the greater of:
(a) The number of employees located at all related facilities on the date of the notice of intent; or
(b) For the twelve-month period prior to the date of the notice of intent, the average number of employees located at all related facilities of the enhanced business enterprise or a related company located in this state;
(21) "Related taxpayer":
(a) A corporation, partnership, trust, or association controlled by the taxpayer;
(b) An individual, corporation, partnership, trust, or association in control of the taxpayer; or
(c) A corporation, partnership, trust or association controlled by an individual, corporation, partnership, trust or association in control of the taxpayer. "Control of a corporation" shall mean ownership, directly or indirectly, of stock possessing at least fifty percent of the total combined voting power of all classes of stock entitled to vote, "control of a partnership or association" shall mean ownership of at least fifty percent of the capital or profits interest in such partnership or association, and "control of a trust" shall mean ownership, directly or indirectly, of at least fifty percent of the beneficial interest in the principal or income of such trust; ownership shall be determined as provided in Section 318 of the Internal Revenue Code of 1986, as amended;
[(16)] (22) "Replacement business facility", a facility otherwise described in subdivision (12) of this section, hereafter referred to in this subdivision as "new facility", which replaces another facility, hereafter referred to in this subdivision as "old facility", located within the state, which the taxpayer or a related taxpayer previously operated but discontinued operating on or before the close of the first taxable year for which the credit allowed by this section is claimed. A new facility shall be deemed to replace an old facility if the following conditions are met:
(a) The old facility was operated by the taxpayer or a related taxpayer during the taxpayer's or related taxpayer's taxable period immediately preceding the taxable year in which commencement of commercial operations occurs at the new facility; and
(b) The old facility was employed by the taxpayer or a related taxpayer in the operation of an enhanced business enterprise and the taxpayer continues the operation of the same or substantially similar enhanced business enterprise at the new facility.
Notwithstanding the preceding provisions of this subdivision, a facility shall not be considered a replacement business facility if the taxpayer's new business facility investment, as computed in subdivision (14) of this section, in the new facility during the tax period for which the credits allowed in section 135.967 are claimed exceed one million dollars and if the total number of employees at the new facility exceeds the total number of employees at the old facility by at least two;
[(17)] (23) "Same or substantially similar enhanced business enterprise", an enhanced business enterprise in which the nature of the products produced or sold, or activities conducted, are similar in character and use or are produced, sold, performed, or conducted in the same or similar manner as in another enhanced business enterprise.
135.967. 1. A taxpayer who establishes a new business facility may, upon approval by the department, be allowed a credit, each tax year for up to ten tax years, in an amount determined as set forth in this section, against the tax imposed by chapter 143, RSMo, excluding withholding tax imposed by sections 143.191 to 143.265, RSMo. No taxpayer shall receive multiple ten-year periods for subsequent expansions at the same facility.
2. Notwithstanding any provision of law to the contrary, any taxpayer who establishes a new business facility in an enhanced enterprise zone and is awarded state tax credits under this section may not also receive tax credits under sections 135.100 to 135.150, sections 135.200 to 135.268, or section 135.535.
3. No credit shall be issued pursuant to this section unless:
(1) The number of new business facility employees engaged or maintained in employment at the new business facility for the taxable year for which the credit is claimed equals or exceeds two; and
(2) The new business facility investment for the taxable year for which the credit is claimed equals or exceeds one hundred thousand dollars.
4. The annual amount of credits allowed for an approved enhanced business enterprise shall be the lesser of:
(1) The annual amount authorized by the department for the enhanced business enterprise, which shall be limited to the projected state economic benefit, as determined by the department; or
(2) The sum calculated based upon the following:
(a) A credit of four hundred dollars for each new business facility employee employed within an enhanced enterprise zone;
(b) An additional credit of four hundred dollars for each new business facility employee who is a resident of an enhanced enterprise zone;
(c) An additional credit of four hundred dollars for each new business facility employee who is paid by the enhanced business enterprise a wage that exceeds the average wage paid within the county in which the facility is located, as determined by the department; and
(d) A credit equal to two percent of new business facility investment within an enhanced enterprise zone.
5. Prior to January 1, 2007, in no event shall the department authorize more than four million dollars annually to be issued for all enhanced business enterprises. After December 31, 2006, in no event shall the department authorize more than seven million dollars annually to be issued for all enhanced business enterprises.
6. If a facility, which does not constitute a new business facility, is expanded by the taxpayer, the expansion shall be considered eligible for the credit allowed by this section if:
(1) The taxpayer's new business facility investment in the expansion during the tax period in which the credits allowed in this section are claimed exceeds one hundred thousand dollars and if the number of new business facility employees engaged or maintained in employment at the expansion facility for the taxable year for which credit is claimed equals or exceeds two, and the total number of employees at the facility after the expansion is at least two greater than the total number of employees before the expansion; and
(2) The taxpayer's investment in the expansion and in the original facility prior to expansion shall be determined in the manner provided in subdivision (12) of section 135.950.
7. The number of new business facility employees during any taxable year shall be determined by dividing by twelve the sum of the number of individuals employed on the last business day of each month of such taxable year. If the new business facility is in operation for less than the entire taxable year, the number of new business facility employees shall be determined by dividing the sum of the number of individuals employed on the last business day of each full calendar month during the portion of such taxable year during which the new business facility was in operation by the number of full calendar months during such period. For the purpose of computing the credit allowed by this section in the case of a facility which qualifies as a new business facility under subsection 6 of this section, and in the case of a new business facility which satisfies the requirements of paragraph (c) of subdivision (12) of section 135.950, or subdivision [(16)] (22) of section 135.950, the number of new business facility employees at such facility shall be reduced by the average number of individuals employed, computed as provided in this subsection, at the facility during the taxable year immediately preceding the taxable year in which such expansion, acquisition, or replacement occurred and shall further be reduced by the number of individuals employed by the taxpayer or related taxpayer that was subsequently transferred to the new business facility from another Missouri facility and for which credits authorized in this section are not being earned, whether such credits are earned because of an expansion, acquisition, relocation, or the establishment of a new facility.
8. In the case where a new business facility employee who is a resident of an enhanced enterprise zone for less than a twelve-month period is employed for less than a twelve-month period, the credits allowed by paragraph (b) of subdivision (2) of subsection 4 of this section shall be determined by multiplying four hundred dollars by a fraction, the numerator of which is the number of calendar days during the taxpayer's tax year for which such credits are claimed, in which the employee was a resident of an enhanced enterprise zone, and the denominator of which is three hundred sixty-five.
9. For the purpose of computing the credit allowed by this section in the case of a facility which qualifies as a new business facility pursuant to subsection 6 of this section, and in the case of a new business facility which satisfies the requirements of paragraph (c) of subdivision (12) of section 135.950 or subdivision [(16)] (22) of section 135.950, the amount of the taxpayer's new business facility investment in such facility shall be reduced by the average amount, computed as provided in subdivision (12) of section 135.950 for new business facility investment, of the investment of the taxpayer, or related taxpayer immediately preceding such expansion or replacement or at the time of acquisition. Furthermore, the amount of the taxpayer's new business facility investment shall also be reduced by the amount of investment employed by the taxpayer or related taxpayer which was subsequently transferred to the new business facility from another Missouri facility and for which credits authorized in this section are not being earned, whether such credits are earned because of an expansion, acquisition, relocation, or the establishment of a new facility.
10. For a taxpayer with flow-through tax treatment to its members, partners, or shareholders, the credit shall be allowed to members, partners, or shareholders in proportion to their share of ownership on the last day of the taxpayer's tax period.
11. Credits may not be carried forward but shall be claimed for the taxable year during which commencement of commercial operations occurs at such new business facility, and for each of the nine succeeding taxable years for which the credit is issued.
12. Certificates of tax credit authorized by this section may be transferred, sold, or assigned by filing a notarized endorsement thereof with the department that names the transferee, the amount of tax credit transferred, and the value received for the credit, as well as any other information reasonably requested by the department. The sale price cannot be less than seventy-five percent of the par value of such credits.
13. The director of revenue shall issue a refund to the taxpayer to the extent that the amount of credits allowed in this section exceeds the amount of the taxpayer's income tax.
14. Prior to the issuance of any tax credits, the department shall verify through the department of revenue that the tax credit applicant does not owe any delinquent income, sales, or use taxes, or interest or penalties on such taxes, and through the department of insurance that the applicant does not owe any delinquent insurance taxes. Such delinquency shall not affect the authorization of the application for such tax credits, except that the amount of credits issued shall be reduced by the applicant's tax delinquency. If the department of revenue or the department of insurance concludes that a taxpayer is delinquent after June fifteenth but before July first of any year, and the application of tax credits to such delinquency causes a tax deficiency on behalf of the taxpayer to arise, then the taxpayer shall be granted thirty days to satisfy the deficiency in which interest, penalties, and additions to tax shall be tolled. After applying all available credits towards a tax delinquency, the administering agency shall notify the appropriate department, and that department shall update the amount of outstanding delinquent tax owed by the applicant. If any credits remain after satisfying all insurance, income, sales, and use tax delinquencies, the remaining credits shall be issued to the applicant, subject to the restrictions of other provisions of the law.
135.1170. 1. There is hereby established in the department of elementary and secondary education a "Youth Jobs Pilot Program" to begin job training and provide job experience for inner-city youth.
2. As used in this section, the following terms mean:
(1) "Qualified high school student", a student hired for summer employment who is currently enrolled for junior or senior year in high school, or home school under section 167.042, RSMo, who met the minimum attendance requirements of section 167.031, RSMo, and earned at least a 2.0 grade point average or equivalent in the school year immediately preceding such summer employment, and who is eligible for the free or reduced lunch program;
(2) "State tax liability", in the case of a business taxpayer, any liability incurred by such taxpayer under the provisions of chapters 143, 147, 148, and 153, RSMo, exclusive of the provisions relating to the withholding of tax as provided for in sections 143.191 to 143.265, RSMo, and related provisions, and in the case of an individual taxpayer, any liability incurred by such taxpayer under the provisions of chapter 143, RSMo;
(3) "Taxpayer", a person, firm, a partner in a firm, corporation or a shareholder in an S corporation doing business in the state of Missouri and subject to the state income tax imposed by the provisions of chapter 143, RSMo, or a corporation subject to the annual corporation franchise tax imposed by the provisions of chapter 147, RSMo, or an insurance company paying an annual tax on its gross premium receipts in this state, or other financial institution paying taxes to the state of Missouri or any political subdivision of this state under the provisions of chapter 148, RSMo, or an express company which pays an annual tax on its gross receipts in this state under chapter 153, RSMo, or an individual subject to the state income tax imposed by the provisions of chapter 143, RSMo.
3. For all tax years beginning on or after January 1, 2007, a taxpayer located in any county with a charter form of government and with more than six hundred thousand but fewer than seven hundred thousand inhabitants, any county with a charter form of government and with more than one million inhabitants, or any city not within a county shall be allowed to claim a tax credit against the taxpayer's state tax liability in an amount equal to thirty-five percent of the amount such taxpayer paid to a qualified high school student in wages for summer employment.
4. The amount of the tax credit claimed shall not exceed the amount of the taxpayer's state tax liability for the taxable year that the credit is claimed, and such taxpayer shall not be allowed to claim a tax credit in excess of ten thousand dollars per taxable year. However, any tax credit that cannot be claimed in the taxable year the contribution was made may be carried over to the next four succeeding taxable years until the full credit has been claimed.
5. Except for any excess credit which is carried over under subsection 3 of this section, a taxpayer shall not be allowed to claim a tax credit unless the total amount the taxpayer paid to a qualified high school student was at least one hundred dollars.
6. No corporation with more than one thousand employees shall claim the credit allowed under this section for more than twenty-five qualified high school students.
7. The department of elementary and secondary education shall establish a procedure by which a taxpayer can determine if a student is a qualified high school student, and by which such taxpayer can then claim a tax credit. The cumulative amount of tax credits which may be claimed by all the taxpayers under this program in any one fiscal year shall not exceed one hundred thousand dollars. The department shall also establish a procedure for tracking students for which employers receive tax credits under this section.
8. The departments of revenue and of elementary and secondary education may promulgate rules to implement the provisions of this section. Any rule or portion of a rule, as that term is defined in section 536.010, RSMo, that is created under the authority delegated in this section shall become effective only if it complies with and is subject to all of the provisions of chapter 536, RSMo, and, if applicable, section 536.028, RSMo. This section and chapter 536, RSMo, are nonseverable and if any of the powers vested with the general assembly pursuant to chapter 536, RSMo, to review, to delay the effective date, or to disapprove and annul a rule are subsequently held unconstitutional, then the grant of rulemaking authority and any rule proposed or adopted after August 28, 2006, shall be invalid and void.
9. Under section 23.253, RSMo, of the Missouri Sunset Act:
(1) The provisions of the new program authorized under this section shall automatically sunset three years after the effective date of this section unless reauthorized by an act of the general assembly; and
(2) If such program is reauthorized, the program authorized under this section shall automatically sunset twelve years after the effective date of the reauthorization of this section; and
(3) This section shall terminate on September first of the calendar year immediately following the calendar year in which the program authorized under this section is sunset.
144.054. 1. As used in this section, the following terms mean:
(1) "Processing", any mode of treatment, act, or series of acts performed upon materials to transform or reduce them to a different state or thing, including treatment necessary to maintain or preserve such processing by the producer at the production facility;
(2) "Utilities", electrical energy and gas, whether natural, artificial, or propane, and water.
2. Notwithstanding any provision of law to the contrary, in addition to all other exemptions granted under this chapter, there is hereby specifically exempted from the provisions of sections 144.010 to 144.525 and 144.600 to 144.761, and section 238.235, RSMo, and the local sales tax law as defined in section 32.085, RSMo, and from the computation of the tax levied, assessed, or payable under sections 144.010 to 144.525 and 144.600 to 144.761, and section 238.235, RSMo, and the local sales tax law as defined in section 32.085, RSMo, motor vehicles licensed for a gross weight of twenty-four thousand pounds or more or trailers used by common carriers, as defined in section 390.020, RSMo, in the transportation of persons or property, utilities consumed in the manufacturing, processing, compounding, mining, or producing of pesticides, pet food, feed for livestock or poultry, and any product defined under the North American Industry Classification System (NAICS) code of 322121, or purchased for use or consumption directly or exclusively in the research and development of agricultural biotechnology products and prescription pharmaceuticals for consumption by humans or animals, and tangible personal property purchased for use or consumption directly in the research and development of agricultural biotechnology products.
160.053. 1. If a school district maintains a kindergarten program, a child is eligible for admission to kindergarten and to the summer school session immediately preceding kindergarten, if offered, if the child reaches the age of five before the first day of August of the school year beginning in that calendar year or if the child has successfully completed an accredited prekindergarten or kindergarten program in another state. A child is eligible for admission to first grade if the child reaches the age of six before the first day of August of the school year beginning in that calendar year.
2. Any kindergarten or grade one pupil beginning the school term and any pupil beginning summer school prior to a kindergarten school term in a metropolitan school district or an urban school district containing the greater part of the population of a city which has more than three hundred thousand inhabitants pursuant to section 160.054 or 160.055 and subsequently transferring to another school district in this state in which the child's birth date would preclude such child's eligibility for entrance shall be deemed eligible for attendance and shall not be required to meet the minimum age requirements. The receiving school district shall receive state aid for the child, notwithstanding the provisions of section 160.051.
3. Any child who completes the kindergarten year shall not be required to meet the age requirements of a district for entrance into grade one.
4. The provisions of this section relating to kindergarten instruction and state aid therefor, shall not apply during any particular school year to those districts which do not provide kindergarten classes that year.
168.021. 1. Certificates of license to teach in the public schools of the state shall be granted as follows:
(1) By the state board, under rules and regulations prescribed by it,
(a) Upon the basis of college credit;
(b) Upon the basis of examination;
(2) By the state board, under rules and regulations prescribed by the state board with advice from the advisory council established by section 168.015 to any individual who presents to the state board a valid doctoral degree from an accredited institution of higher education accredited by a regional accrediting association such as North Central Association. Such certificate shall be limited to the major area of postgraduate study of the holder, shall be issued only after successful completion of the examination required for graduation pursuant to rules adopted by the state board of education, and shall be restricted to those certificates established pursuant to subdivision (1) of subsection 3 of this section; or
(3) By the state board, which shall issue the professional certificate classification in both the general and specialized areas most closely aligned with the current areas of certification approved by the state board, commensurate with the years of teaching experience of the applicant, and based upon the following criteria:
(a) Recommendation of a state-approved baccalaureate-level teacher preparation program;
(b) Successful attainment of the Missouri qualifying score on the exit assessment for teachers or administrators designated by the state board of education. Applicants who have not successfully achieved a qualifying score on the designated examinations will be issued a two-year nonrenewable provisional certificate; and
(c) Upon completion of a background check and possession of a valid teaching certificate in the state from which the applicant's teacher preparation program was completed.
2. All valid teaching certificates issued pursuant to law or state board policies and regulations prior to September 1, 1988, shall be exempt from the professional development requirements of this section and shall continue in effect until they expire, are revoked or suspended, as provided by law. When such certificates are required to be renewed, the state board or its designee shall grant to each holder of such a certificate the certificate most nearly equivalent to the one so held. Anyone who holds, as of August 28, 2003, a valid PC-I, PC-II, or continuous professional certificate shall, upon expiration of his or her current certificate, be issued the appropriate level of certificate based upon the classification system established pursuant to subsection 3 of this section.
3. Certificates of license to teach in the public schools of the state shall be based upon minimum requirements prescribed by the state board of education. The state board shall provide for the following levels of professional certification: an initial professional certificate and a career continuous professional certificate.
(1) The initial professional certificate shall be issued upon completion of requirements established by the state board of education and shall be valid based upon verification of actual teaching within a specified time period established by the state board of education. The state board shall require holders of the four-year initial professional certificate to:
(a) Participate in a mentoring program approved and provided by the district for a minimum of two years;
(b) Complete thirty contact hours of professional development, which may include hours spent in class in an appropriate college curriculum; and
(c) Participate in a beginning teacher assistance program;
(2) (a) The career continuous professional certificate shall be issued upon verification of completion of four years of teaching under the initial professional certificate and upon verification of the completion of the requirements articulated in paragraphs (a), (b), and (c) of subdivision (1) of this subsection.
(b) The career continuous professional certificate shall be continuous based upon verification of actual employment in an educational position as provided for in state board guidelines and completion of fifteen contact hours of professional development per year which may include hours spent in class in an appropriate college curriculum. Should the possessor of a valid career continuous professional certificate fail, in any given year, to meet the fifteen-hour professional development requirement, the possessor may, within two years, make up the missing hours. In order to make up for missing hours, the possessor shall first complete the fifteen-hour requirement for the current year and then may count hours in excess of the current year requirement as make-up hours. Should the possessor fail to make up the missing hours within two years, the certificate shall become inactive. In order to reactivate the certificate, the possessor shall complete twenty-four contact hours of professional development which may include hours spent in the classroom in an appropriate college curriculum within the six months prior to or after reactivating his or her certificate. The requirements of this paragraph shall be monitored and verified by the local school district which employs the holder of the career continuous professional certificate.
(c) A holder of a career continuous professional certificate shall be exempt from the professional development contact hour requirements of paragraph (b) of this subdivision if such teacher has a local professional development plan in place within such teacher's school district and meets two of the three following criteria:
a. Has ten years of teaching experience as defined by the state board of education;
b. Possesses a master's degree; or
c. Obtains a rigorous national certification as approved by the state board of education.
4. Policies and procedures shall be established by which a teacher who was not retained due to a reduction in force may retain the current level of certification. There shall also be established policies and procedures allowing a teacher who has not been employed in an educational position for three years or more to reactivate his or her last level of certification by completing twenty-four contact hours of professional development which may include hours spent in the classroom in an appropriate college curriculum within the six months prior to or after reactivating his or her certificate.
5. The state board shall, upon an appropriate background check, issue a professional certificate classification in the areas most closely aligned with an applicant's current areas of certification, commensurate with the years of teaching experience of the applicant, to any person who is hired to teach in a public school in this state and who possesses a valid teaching certificate from another state, provided that the certificate holder shall annually complete the state board's requirements for such level of certification, and shall establish policies by which residents of states other than the state of Missouri may be assessed a fee for a certificate license to teach in the public schools of Missouri. Such fee shall be in an amount sufficient to recover any or all costs associated with the issuing of a certificate of license to teach. The board shall additionally promulgate a rule to permit the issuance of a provisional certificate of license permitting the holder to assume classroom duties pending the completion of a background check conducted pursuant to section 168.133 when the applicant is the spouse of a member of the United States armed forces stationed in Missouri who has relocated from another state within one year from the date of application for Missouri certificate of license, who otherwise qualifies under the provisions of this subsection, if a background check was required for the issuance of the teaching certificate from another state.
6. The state board may assess to holders of an initial professional certificate a fee, to be deposited into the excellence in education revolving fund established pursuant to section 160.268, RSMo, for the issuance of the career continuous professional certificate. However, such fee shall not exceed the combined costs of issuance and any criminal background check required as a condition of issuance.
7. Any member of the public school retirement system of Missouri who entered covered employment with ten or more years of educational experience in another state or states and held a certificate issued by another state and subsequently worked in a school district covered by the public school retirement system of Missouri for ten or more years who later became certificated in Missouri shall have that certificate dated back to his or her original date of employment in a Missouri public school.
290.140. 1. Whenever any employee of any corporation doing business in this state and which employs seven or more employees[, who shall have been in the service of said corporation for a period of at least ninety days, shall be discharged or voluntarily quit the service of such corporation and who thereafter within a reasonable period of time, but not later than one year following the date the employee was discharged or voluntarily quit, requests in writing by certified mail to the superintendent, manager or registered agent of said corporation, with specific reference to the statute, it shall be the duty of the superintendent or manager of said corporation to issue to such employee, within forty-five days after the receipt of such request, a letter, duly signed by such superintendent or manager, setting forth the nature and character of service rendered by such employee to such corporation and the duration thereof, and truly stating for what cause, if any, such employee was discharged or voluntarily quit such service.] the employer or employer's designated agent who discloses job-related information about a former or current employee to a prospective employer of the former or current employee shall be presumed to be acting in good faith and shall be immune from civil liability for the disclosure or its consequences. For purposes of this section, the presumption of good faith shall be rebuttable and immunity shall be lost upon a showing, by a preponderance of the evidence, that the information disclosed by the former employer or the employer's designated agent was:
(1) Knowingly false;
(2) Disclosed with reckless disregard for the truth;
(3) Deliberately misleading;
(4) Rendered with malicious purpose toward the former or current employee; or
(5) Disclosed in violation of a nondisclosure agreement or applicable law.
2. Any corporation which violates the provisions of subsection 1 of this section shall be liable for compensatory but not punitive damages [but in the event that the evidence establishes that the employer did not issue the requested letter, said employer may be liable for nominal and punitive damages; but no award of punitive damages under this section shall be based upon the content of any such letter].
3. As used in this section, "job-related information" means a person's education, training, experience, qualifications, conduct, and job performance to be used for the purpose of evaluating the person for employment.
290.152. 1. As used in this section, the following terms shall mean:
(1) "Employer", any individual, organization, partnership, political subdivision, corporation or other legal entity which has or had in the entity's employ one or more individuals performing services for the entity within this state;
(2) "Prospective employer", any employer, as defined in this subsection, to which an individual has made application for employment, either oral or written, or forwarded a resume or other correspondence expressing an interest in employment.
2. An employer may:
(1) Respond in writing to a written request concerning a current or former employee from an entity or person which the employer reasonably believes to be a prospective employer of such employee, an agent of a prospective employer, or a law enforcement agency; and
(2) Disclose the nature and character of service rendered by such employee to such employer and the duration thereof; and
(3) Truly state for what cause, if any, such employee was discharged or voluntarily quit such service.
The provisions of this section shall apply regardless of whether the employee becomes employed by the prospective employer prior to receipt of the former employer's written response. The information provided pursuant to this section shall be consistent with the content of any service letter provided pursuant to section 290.140 for the same employee.
3. The employer shall send a copy of any letter provided pursuant to subsection 2 of this section to the current employee or former employee at the employee's last known address. The current or former employee may request from the employer a copy of the letter provided pursuant to subsection 2 of this section for up to one year following the date of such letter.
4. For purposes of this section, an employer shall be immune from civil liability for any response made pursuant to this section or for any consequences of such response, unless such response [was false and made with knowledge that it was false or with reckless disregard for whether such response was true or false] is in violation of section 290.140.
5. Any employer who violates the provisions of subsection 2 of this section shall be liable for compensatory damages but not punitive damages.
6. Any letter issued pursuant to this section shall not be admitted as evidence in an unemployment compensation claim.
348.251. 1. As used in sections 348.251 to 348.266, the following terms mean:
(1) "Alliance", the Missouri discovery alliance authorized under this section;
(2) "Technology application", the introduction and adaptation of refined management practices in fields such as scheduling, inventory management, marketing, product development, and training in order to improve the quality, productivity and profitability of an existing firm. Technology application shall be considered a component of business modernization;
(3) "Technology business recruitment", to assist the department of economic development with the recruitment, relocation, and expansion of technology businesses to locate in this state;
[(2)] (4) "Technology commercialization", the process of moving investment-grade technology from a business, university or laboratory into the marketplace for application;
[(3)] (5) "Technology development", strategically focused research directed at developing investment-grade technologies which are important for market competitiveness.
2. [The governor may, on behalf of the state and in accordance with chapter 355, RSMo, establish a private not-for-profit corporation named the "Missouri Technology Corporation", to carry out the provisions of sections 348.251 to 348.266. As used in sections 348.251 to 348.266 the word "corporation" means the Missouri technology corporation authorized by this section. Before certification by the governor, the corporation shall conduct a public hearing for the purpose of giving all interested parties an opportunity to review and comment upon the articles of incorporation, bylaws and method of operation of the corporation. Notice of the hearing shall be given at least fourteen days prior to the hearing.] There is hereby created within the department of economic development the "Missouri Discovery Alliance" which shall constitute a body corporate and politic. The Missouri discovery alliance shall carry out the provisions of sections 348.251 to 348.266.
348.253. 1. The Missouri [technology corporation] discovery alliance may contract with not-for-profit organizations to carry out the provisions of sections 348.251 to 348.275. By entering into such contracts, the [corporation] alliance shall attempt to achieve the following objectives:
(1) [The establishment of a research alliance which shall advance technology development, as defined in subdivision (3) of section 348.251. The corporation, in this capacity, shall have the authority to contract directly with centers for advanced technology, as established by section 348.272, and other not-for-profit entities. In proceeding with this objective, the corporation and centers for advanced technology shall utilize the results of targeted industry studies commissioned by the department of economic development] The enhancement of technology application;
(2) Technology commercialization[, as defined in subdivision (2) of section 348.251];
(3) [The establishment of a finance corporation to assist in the implementation of section 348.261] The enhancement of technology development; and
(4) The enhancement of technology [application, as defined in subdivision (1) of section 348.251] business recruitment.
2. Any contract signed between the [corporation] alliance and any not-for-profit organization, including innovation centers as defined in section 348.271, shall require that the not-for-profit organization must provide at least one-hundred-percent match for any funding received from the [corporation] alliance through the technology investment fund, as established in section 348.264.
348.256. The articles of incorporation and bylaws of the Missouri [technology corporation] discovery alliance shall provide that:
(1) The purposes of the [corporation] alliance are to contribute to the strengthening of the economy of the state through the development of science and technology, to promote the modernization of Missouri businesses by supporting the transfer of science, technology and quality improvement methods to the workplace, and to enhance the productivity and modernization of Missouri businesses by providing leadership in the establishment of methods of technology application, technology commercialization [and], technology development, and technology business recruitment;
(2) The board of directors of the [corporation] alliance is composed of [fifteen] thirteen persons. The governor shall [annually] appoint [one of its members, who must be from the private sector, as chairman] at will one member as chairperson to be confirmed by the senate. The board shall consist of the following members:
(a) The director of the department of economic development, or the director's designee;
(b) The president of the University of Missouri system, or the president's designee[;
(c) A member of the state senate, appointed by the president pro tem of the senate;
(d) A member of the house of representatives, appointed by the speaker of the house;
(e) Eleven members appointed by the governor, two of which shall be from the public sector and nine members from the private sector who shall include, but shall not be limited to, individuals who represent technology-based businesses and industrial interests;
(f) Each of the directors of the corporation who is appointed by the governor shall serve for a term of four years and until a successor is duly appointed; except that, of the directors serving on the corporation as of August 28, 1995, three directors shall be designated by the governor to serve a term of four years, three directors shall be designated to serve a term of three years, three directors shall be designated to serve a term of two years, and two directors shall be designated to serve a term of one year. Each director shall continue to serve until a successor is duly appointed by the governor].
The governor shall appoint ten members to the board, and the members shall be confirmed by the senate. At least three of such members shall be from research institutions, universities, or colleges in this state, and at least four of such members shall be from technology-based businesses in this state. Each of the directors of the alliance who is appointed by the governor shall serve for a term of four years and shall continue to serve until a successor is duly appointed, except that of all the directors serving on the alliance as of August 28, 2006, four directors shall be designated to serve a term of three years, and four directors shall be designated to serve a term of two years. Each director shall continue to serve until a successor is duly appointed by the governor;
(3) The [corporation] alliance may receive money from any source, may borrow money, may enter into contracts, and may expend money for any activities appropriate to its purpose;
(4) The [corporation] alliance may appoint staff and do all other things necessary or incidental to carrying out the functions listed in section 348.261;
(5) Any changes in the articles of incorporation or bylaws must be approved by the governor;
(6) The [corporation] alliance shall submit an annual report to the governor and to the Missouri general assembly. The report shall be due on the first day of November for each year and shall include detailed information on the structure, operation and financial status of the [corporation. The corporation shall conduct an annual public hearing to receive comments from interested parties regarding the report, and notice of the hearing shall be given at least fourteen days prior to the hearing] alliance; and
(7) The [corporation] alliance is subject to an annual audit by the state auditor and that the [corporation] alliance shall bear the full cost of the audit.
348.261. The corporation, after being certified by the governor as provided by section 348.251, may:
(1) Establish a statewide business modernization network to assist Missouri businesses in identifying ways to enhance productivity and market competitiveness;
(2) Identify scientific and technological problems and opportunities related to the economy of Missouri and formulate proposals to overcome those problems or realize those opportunities;
(3) Identify specific areas where scientific research and technological investigation will contribute to the improvement of productivity of Missouri manufacturers and farmers;
(4) Determine specific areas in which financial investment in scientific and technological research and development from private businesses located in Missouri could be enhanced or increased if state resources were made available to assist in financing activities;
(5) Assist in establishing cooperative associations of universities in Missouri and of private enterprises for the purpose of coordinating research and development programs that will, consistent with the primary educational function of the universities, aid in the creation of new jobs in Missouri;
(6) Assist in financing the establishment and continued development of technology-intensive businesses in Missouri;
(7) Advise universities of the research needs of Missouri business and improve the exchange of scientific and technological information for the mutual benefit of universities and private business;
(8) Coordinate programs established by universities to provide Missouri businesses with scientific and technological information;
(9) Establish programs in scientific education which will support the accelerated development of technology-intensive businesses in Missouri;
(10) Provide financial assistance through contracts, grants and loans to programs of scientific and technological research and development;
(11) Determine how public universities can increase income derived from the sale or licensure of products or processes having commercial value that are developed as a result of university sponsored research programs;
(12) Contract with innovation centers, as established in section 348.271, small business development corporations, as established in sections 620.1000 to 620.1007, RSMo, centers for advanced technology, as established in section 348.272, and other entities or organizations for the provision of technology application, technology commercialization and technology development services. Such contracting procedures shall not be subject to the provisions of chapter 34, RSMo; [and]
(13) Make direct seed capital or venture capital investments in Missouri business investment funds or businesses which demonstrate the promise of growth and job creation. Investments from the corporation may be in the form of debt or equity in the respective businesses; and
(14) Assess or charge a fee for each application it receives for funding for a project and assess or charge other fees as the alliance determines to be reasonable and necessary to carry out its purposes, including fees on the issuance of tax credits.
348.262. In order to assist the [corporation] alliance in achieving the objectives identified in section 348.261, the department of economic development may contract with the [corporation] alliance for activities consistent with the [corporation's] alliance's purpose, as specified in section 348.256. When contracting with the [corporation] alliance under the provisions of this section, the department of economic development may directly enter into agreements with the [corporation] alliance and shall not be bound by the provisions of chapter 34, RSMo.
348.263. [1.] The Missouri [business modernization and technology corporation] discovery alliance shall replace the Missouri technology corporation [for science and technology]. All moneys, property or any other assets remaining with the Missouri technology corporation [for science and technology] after all obligations are satisfied on August 28, [1993] 2006, shall be transferred to the Missouri [business modernization and technology corporation] discovery alliance. All powers, duties and functions performed by the Missouri technology corporation [of science and technology] on August 28, [1993] 2006, shall be transferred to the Missouri [business modernization and technology corporation] discovery alliance.
[2. The Missouri technology corporation shall replace the Missouri business modernization and technology corporation. All moneys, property or any other assets remaining with the Missouri business modernization and technology corporation after all obligations are satisfied on August 28, 1994, shall be transferred to the Missouri technology corporation. All powers, duties and functions performed by the Missouri business modernization and technology corporation on August 28, 1994, shall be transferred to the Missouri technology corporation.]
348.264. 1. There is hereby established in the state treasury a special fund to be known as the "Missouri [Technology Investment] Discovery Fund", which shall consist of all moneys which may be appropriated to it by the general assembly, and also any gifts, contributions, grants or bequests received from federal, private or other sources. Such moneys shall include but not be limited to federal funds which may be received from the National Institute for Science and Technology, the Small Business Administration and the Department of Defense through its Technology Reinvestment Program. Money in the Missouri [technology investment program] discovery fund shall be used to carry out the provisions of sections 348.251 to 348.275. Moneys for [business modernization programs,] technology application programs, technology commercialization programs [and], technology development programs, and technology business recruitment programs established pursuant to the provisions of sections 348.251 to 348.275 shall be available from appropriations made by the general assembly from the Missouri [technology investment] discovery fund. Any moneys remaining in the Missouri [technology investment] discovery fund at the end of any fiscal year shall not lapse to the general revenue fund, as provided in section 33.080, RSMo, but shall remain in the Missouri [technology investment] discovery fund.
2. Notwithstanding the provisions of sections 173.500 to 173.565, RSMo, the Missouri [technology investment] discovery fund shall be utilized to fund projects which would previously have been funded through the [higher education applied projects] Missouri technology investment fund.
348.266. 1. Debts incurred by the Missouri [technology corporation] discovery alliance established pursuant to the authority of sections 348.251 to 348.275 do not represent or constitute a debt of this state within the meaning of the provisions of the constitution or statutes of this state.
2. The Missouri [technology corporation] discovery alliance established pursuant to sections 348.251 to 348.275 shall be subject to all provisions of chapter 355, RSMo, which do not conflict with the provisions of sections 348.251 to 348.275.
348.271. 1. In order to foster the growth of Missouri's economy and to stimulate the creation of new jobs in technology-based industry for the state's work force, the [Missouri technology corporation] department of economic development, on behalf of the Missouri discovery alliance, in accordance with the provisions of this section and within the limits of appropriations therefor is authorized to contract with Missouri not-for-profit corporations for the operation of innovation centers within the state. The primary emphasis of some, if not of all innovation centers, shall be in the areas of technology commercialization, finance and business modernization. Innovation centers operated under the provisions of this section shall provide assistance to individuals and business organizations during the early stages of the development of new technology-based business ventures. Such assistance may include the provision of facilities, equipment, administrative and managerial support, planning assistance, and such other services and programs that enhance the development of such ventures and such assistance may be provided for fees or other consideration.
2. The innovation centers operated under this section shall counsel and assist the new technology-based business ventures in finding a suitable site in the state of Missouri for location of the business upon its graduation from the innovation program. Each innovation center shall annually submit a report of its activities to the department of economic development and the Missouri [technology corporation which] discovery alliance no later than the first of October of each year. The mission and goals of the innovation center program shall be outlined annually by the Missouri discovery alliance and shall include, but not be limited to, the number of businesses having a technology commercialized into a viable product or service, the number of new jobs created by the business client of the center, the success rate of the businesses graduating from the [center] incubator, the progress and locations of businesses which have graduated from the [center the types of businesses which have graduated from the center, and the number of jobs created by the businesses involved in the center.] incubator, the number and types of businesses assisted by the center, and the location of businesses assisted by the center. The report shall also include an operational plan to detail the coordination between the innovation centers and the small business development centers if one exists in the same city or region in order to maximize the services to small businesses and entrepreneurs. The report shall be approved by the department of economic development and the Missouri discovery alliance.
3. The innovation center shall be required to provide at least one hundred percent match for any funding received from the discovery fund established in section 348.264.
4. If the innovation center annual report or operational plans do not meet the requirements of the department of economic development and the Missouri discovery alliance, the department of economic development may withhold allocated center funds in an amount equal to seventy-five percent of the state allocated center funding until such report is made accurate and complete per the approval of the department of economic development and the Missouri discovery alliance.
5. Beginning July 1, 2008, no existing innovation center shall receive funding through the Missouri discovery fund, as established in section 348.264, for more than five additional years. No innovation center established after July 1, 2008, shall receive funding through the discovery fund, as established in section 348.264, for more than five years.
348.273. As used in sections 348.273 and 348.274, the following terms shall mean:
(1) "Collaborative research project", a research project conducted by a public research institution or private not-for-profit research institution on behalf of and funded by a private company;
(2) "Distressed community", as defined in section 135.530, RSMo;
(3) "Qualifying company", an independently owned and operated business which is headquartered and located in this state and which is in need of venture capital and cannot obtain conventional financing. Such business shall have no more than two hundred employees, eighty percent of which are employed in this state. Such business shall be involved in commerce for the purpose of manufacturing, processing, or assembling products, conducting research and development, or providing services in interstate commerce but excluding retail, real estate, real estate development, insurance, and professional services provided by accountants, lawyers, or physicians. At the time approval is sought, such business shall be a small business concern that meets the requirements of the United States Small Business Administration's qualification size standards for its venture capital program, as defined in the Small Business Investment Act of 1958, as amended, and rules promulgated in 13 CFR 121.301(c), as amended;
(4) "Rural area", any city, town, or village with fewer than fifteen thousand inhabitants and located in any county that is not part of a standard metropolitan statistical area as defined by the United States Department of Commerce or its successor agency. However, any such city, town, or village located in any county so defined as a standard metropolitan statistical area may be designated a rural area by the office of rural development if:
(a) A substantial number of persons in such county derive their income from agriculture;
(b) The county has only one city within the county having a population of more than fifteen thousand and is classified as a standard metropolitan statistical area; and
(c) All other cities, towns, and villages in that county have a population of less than fifteen thousand;
(5) "Taxpayer", any person, partnership, corporation, trust, or limited liability company;
(6) "Technology commercialization infrastructure project", the construction of or improvements to an incubator, accelerator, or instrument center;
(7) "Venture capital", risk capital provided to a qualified Missouri company for research, development, operating capital, commercialization activities, or marketing thereof in exchange for some level of ownership and control of the business.
348.274. 1. The Missouri discovery alliance may authorize up to ten million dollars in tax credits per fiscal year. The tax credits may be allotted to one or more of the categories listed in this section.
2. If a qualifying company is approved by the Missouri discovery alliance, the investors who contribute the first five hundred thousand dollars in venture capital to the qualifying company may be issued a tax credit for thirty percent of such investment in the year the investment is made. However, if the company invested in is located in a rural area or a distressed community, the taxpayer may be issued a tax credit for forty percent of such investment. A qualifying company that relocates its headquarters out of Missouri, ceases to employ eighty percent of its employees in Missouri, alters the principal nature of its operations, or divests itself of key assets shall upon demand by the Missouri discovery alliance pay the state of Missouri an amount equal to the amount of credits issued to its contributors.
3. If a qualifying company is approved by the Missouri discovery alliance, the alliance may reserve tax credits for investors who contributed the initial five million dollars in venture capital to the company. The credit shall be thirty percent of the amount invested, unless the company is located in a rural or distressed company, in which case the credit shall be forty percent. No credits shall be reserved with respect to investors who received a credit under subsection 2 of this section. The reserved credits shall be issued only for net loss of investment within five years of investing in the qualified company. No credits shall be issued if the company has within the five years relocated its headquarters out of Missouri, ceased to employ eighty percent of its employees in Missouri, altered the principal nature of its operations, or divested itself of key assets.
4. If a technology commercialization infrastructure project is approved by the Missouri discovery alliance, a taxpayer may be issued a tax credit in the amount of fifty percent of any amount contributed to the project.
5. If a collaborative research project is approved by the Missouri discovery alliance, a business firm may receive a tax credit of up to fifty percent of expenditures for industrial research conducted at a public research institution or private not-for-profit research institution.
6. The credit may be used against the tax otherwise due under chapter 143, RSMo, not including sections 143.191 to 143.265, RSMo. The tax credit may be used in the tax year issued or any of the next three consecutive tax years.
7. Any tax credits issued under this section may be sold, assigned, exchanged, or otherwise transferred.
348.275. 1. The department of economic development may draft and promulgate rules and regulations consistent with the provisions of sections 348.251 to [348.272] 348.274 as are necessary or useful to carry out the provisions of those sections.
2. No rule or portion of a rule promulgated under the authority of sections 348.251 to [348.272] 348.274 shall become effective until it has been approved by the joint committee on administrative rules in accordance with the procedures provided in this section, and the delegation of the legislative authority to enact law by the adoption of such rules is dependent upon the power of the joint committee on administrative rules to review and suspend rules pending ratification by the senate and the house of representatives as provided in this section.
3. Upon filing any proposed rule with the secretary of state, the department shall concurrently submit such proposed rule to the committee, which may hold hearings upon any proposed rule or portion thereof at any time.
4. A final order of rulemaking shall not be filed with the secretary of state until thirty days after such final order of rulemaking has been received by the committee. The committee may hold one or more hearings upon such final order of rulemaking during the thirty-day period. If the committee does not disapprove such order of rulemaking within the thirty-day period, the department may file such order of rulemaking with the secretary of state and the order of rulemaking shall be deemed approved.
5. The committee may, by majority vote of the members, suspend the order of rulemaking or portion thereof by action taken prior to the filing of the final order of rulemaking only for one or more of the following grounds:
(1) An absence of statutory authority for the proposed rule;
(2) An emergency relating to public health, safety or welfare;
(3) The proposed rule is in conflict with state law;
(4) A substantial change in circumstance since enactment of the law upon which the proposed rule is based.
6. If the committee disapproves any rule or portion thereof, the department shall not file such disapproved portion of any rule with the secretary of state and the secretary of state shall not publish in the Missouri Register any final order of rulemaking containing the disapproved portion.
7. If the committee disapproves any rule or portion thereof, the committee shall report its findings to the senate and the house of representatives. No rule or portion thereof disapproved by the committee shall take effect so long as the senate and the house of representatives ratify the act of the joint committee by resolution adopted in each house within thirty legislative days after such rule or portion thereof has been disapproved by the joint committee.
8. Upon adoption of a rule as provided in this section, any such rule or portion thereof may be suspended or revoked by the general assembly either by bill or, pursuant to section 8, article IV of the Constitution of Missouri, by concurrent resolution upon recommendation of the joint committee on administrative rules. The committee shall be authorized to hold hearings and make recommendations pursuant to the provisions of section 536.037, RSMo. The secretary of state shall publish in the Missouri Register, as soon as practicable, notice of the suspension or revocation.
447.708. 1. For eligible projects, the director of the department of economic development, with notice to the directors of the departments of natural resources and revenue, and subject to the other provisions of sections 447.700 to 447.718, may not create a new enterprise zone but may decide that a prospective operator of a facility being remedied and renovated pursuant to sections 447.700 to 447.718 may receive the tax credits and exemptions pursuant to sections 135.100 to 135.150, RSMo, and sections 135.200 to 135.257, RSMo. The tax credits allowed pursuant to this subsection shall be used to offset the tax imposed by chapter 143, RSMo, excluding withholding tax imposed by sections 143.191 to 143.265, RSMo, or the tax otherwise imposed by chapter 147, RSMo, or the tax otherwise imposed by chapter 148, RSMo. For purposes of this subsection:
(1) For receipt of the ad valorem tax abatement pursuant to section 135.215, RSMo, the eligible project must create at least ten new jobs or retain businesses which supply at least twenty-five existing jobs. The city, or county if the eligible project is not located in a city, must provide ad valorem tax abatement of at least fifty percent for a period not less than ten years and not more than twenty-five years;
(2) For receipt of the income tax exemption pursuant to section 135.220, RSMo, and tax credit for new or expanded business facilities pursuant to sections 135.100 to 135.150, and 135.225, RSMo, the eligible project must create at least ten new jobs or retain businesses which supply at least twenty-five existing jobs, or combination thereof. For purposes of sections 447.700 to 447.718, the tax credits described in section 135.225, RSMo, are modified as follows: the tax credit shall be four hundred dollars per employee per year, an additional four hundred dollars per year for each employee exceeding the minimum employment thresholds of ten and twenty-five jobs for new and existing businesses, respectively, an additional four hundred dollars per year for each person who is "a person difficult to employ" as defined by section 135.240, RSMo, and investment tax credits at the same amounts and levels as provided in subdivision (4) of subsection 1 of section 135.225, RSMo;
(3) For eligibility to receive the income tax refund pursuant to section 135.245, RSMo, the eligible project must create at least ten new jobs or retain businesses which supply at least twenty-five existing jobs, or combination thereof, and otherwise comply with the provisions of section 135.245, RSMo, for application and use of the refund and the eligibility requirements of this section;
(4) The eligible project operates in compliance with applicable environmental laws and regulations, including permitting and registration requirements, of this state as well as the federal and local requirements;
(5) The eligible project operator shall file such reports as may be required by the director of economic development or the director's designee;
(6) The taxpayer may claim the state tax credits authorized by this subsection and the state income exemption for a period not in excess of ten consecutive tax years. For the purpose of this section, "taxpayer" means an individual proprietorship, partnership or corporation described in section 143.441 or 143.471, RSMo, who operates an eligible project. The director shall determine the number of years the taxpayer may claim the state tax credits and the state income exemption based on the projected net state economic benefits attributed to the eligible project;
(7) For the purpose of meeting the new job requirement prescribed in subdivisions (1), (2) and (3) of this subsection, it shall be required that at least ten new jobs be created and maintained during the taxpayer's tax period for which the credits are earned, in the case of an eligible project that does not replace a similar facility in Missouri. "New job" means a person who was not previously employed by the taxpayer or related taxpayer within the twelve-month period immediately preceding the time the person was employed by that taxpayer to work at, or in connection with, the eligible project on a full-time basis. "Full-time basis" means the employee works an average of at least thirty-five hours per week during the taxpayer's tax period for which the tax credits are earned. For the purposes of this section, "related taxpayer" has the same meaning as defined in subdivision (9) of section 135.100, RSMo;
(8) For the purpose of meeting the existing job retention requirement, if the eligible project replaces a similar facility that closed elsewhere in Missouri prior to the end of the taxpayer's tax period in which the tax credits are earned, it shall be required that at least twenty-five existing jobs be retained at, and in connection with the eligible project, on a full-time basis during the taxpayer's tax period for which the credits are earned. "Retained job" means a person who was previously employed by the taxpayer or related taxpayer, at a facility similar to the eligible project that closed elsewhere in Missouri prior to the end of the taxpayer's tax period in which the tax credits are earned, within the tax period immediately preceding the time the person was employed by the taxpayer to work at, or in connection with, the eligible project on a full-time basis. "Full-time basis" means the employee works an average of at least thirty-five hours per week during the taxpayer's tax period for which the tax credits are earned;
(9) In the case where an eligible project replaces a similar facility that closed elsewhere in Missouri prior to the end of the taxpayer's tax period in which the tax credits are earned, the owner and operator of the eligible project shall provide the director with a written statement explaining the reason for discontinuing operations at the closed facility. The statement shall include a comparison of the activities performed at the closed facility prior to the date the facility ceased operating, to the activities performed at the eligible project, and a detailed account describing the need and rationale for relocating to the eligible project. If the director finds the relocation to the eligible project significantly impaired the economic stability of the area in which the closed facility was located, and that such move was detrimental to the overall economic development efforts of the state, the director may deny the taxpayer's request to claim tax benefits;
(10) Notwithstanding any provision of law to the contrary, for the purpose of this section, the number of new jobs created and maintained, the number of existing jobs retained, and the value of new qualified investment used at the eligible project during any tax year shall be determined by dividing by twelve, in the case of jobs, the sum of the number of individuals employed at the eligible project, or in the case of new qualified investment, the value of new qualified investment used at the eligible project, on the last business day of each full calendar month of the tax year. If the eligible project is in operation for less than the entire tax year, the number of new jobs created and maintained, the number of existing jobs retained, and the value of new qualified investment created at the eligible project during any tax year shall be determined by dividing the sum of the number of individuals employed at the eligible project, or in the case of new qualified investment, the value of new qualified investment used at the eligible project, on the last business day of each full calendar month during the portion of the tax year during which the eligible project was in operation, by the number of full calendar months during such period;
(11) For the purpose of this section, "new qualified investment" means new business facility investment as defined and as determined in subdivision (7) of section 135.100, RSMo, which is used at and in connection with the eligible project. "New qualified investment" shall not include small tools, supplies and inventory. "Small tools" means tools that are portable and can be hand held.
2. The determination of the director of economic development pursuant to subsection 1 of this section, shall not affect requirements for the prospective purchaser to obtain the approval of the granting of real property tax abatement by the municipal or county government where the eligible project is located.
3. (1) The director of the department of economic development, with the approval of the director of the department of natural resources, may, in addition to the tax credits allowed in subsection 1 of this section, grant a remediation tax credit to the applicant for up to one hundred percent of the costs of materials, supplies, equipment, labor, professional engineering, consulting and architectural fees, permitting fees and expenses, demolition, asbestos abatement, and direct utility charges for performing the voluntary remediation activities for the preexisting hazardous substance contamination and releases, including, but not limited to, the costs of performing operation and maintenance of the remediation equipment at the property beyond the year in which the systems and equipment are built and installed at the eligible project and the costs of performing the voluntary remediation activities over a period not in excess of four tax years following the taxpayer's tax year in which the system and equipment were first put into use at the eligible project, provided the remediation activities are the subject of a plan submitted to, and approved by, the director of natural resources pursuant to sections 260.565 to 260.575, RSMo. The tax credit may also include up to one hundred percent of the costs of demolition that are not directly part of the remediation activities, provided that the demolition is either on the property where the voluntary remediation activities are occurring or an adjacent property, the demolition is necessary to accomplish the planned use of the facility where the remediation activities are occurring, and the demolition is part of a redevelopment plan approved by the municipal or county government and the department of economic development.
(2) [The director of the department of economic development, with the approval of the director of the department of natural resources, may, in addition to the tax credits otherwise allowed in this section, grant a demolition tax credit to the applicant for up to one hundred percent of the costs of demolition that are not part of the voluntary remediation activities, provided that the demolition is either on the property where the voluntary remediation activities are occurring or on any adjacent property, and that the demolition is part of a redevelopment plan approved by the municipal or county government and the department of economic development.
(3)] The amount of remediation [and demolition] tax credits issued shall be limited to the least amount necessary to cause the project to occur, as determined by the director of the department of economic development.
[(4)] (3) The director may, with the approval of the director of natural resources, extend the tax credits allowed for performing voluntary remediation maintenance activities, in increments of three-year periods, not to exceed five consecutive three-year periods. The tax credits allowed in this subsection shall be used to offset the tax imposed by chapter 143, RSMo, excluding withholding tax imposed by sections 143.191 to 143.265, RSMo, or the tax otherwise imposed by chapter 147, RSMo, or the tax otherwise imposed by chapter 148, RSMo. The remediation [and demolition] tax credit may be taken in the same tax year in which the tax credits are received or may be taken over a period not to exceed twenty years.
[(5)] (4) The project facility shall be projected to create at least ten new jobs or at least twenty-five retained jobs, or a combination thereof, as determined by the department of economic development, to be eligible for tax credits pursuant to this section.
[(6)] (5) No more than seventy-five percent of earned remediation tax credits may be issued when the remediation costs were paid, and the remaining percentage may be issued when the department of natural resources issues a "Letter of Completion" letter or covenant not to sue following completion of the voluntary remediation activities. It shall not include any costs associated with ongoing operational environmental compliance of the facility or remediation costs arising out of spills, leaks, or other releases arising out of the ongoing business operations of the facility.
4. In the exercise of the sound discretion of the director of the department of economic development or the director's designee, the tax credits and exemptions described in this section may be terminated, suspended or revoked, if the eligible project fails to continue to meet the conditions set forth in this section. In making such a determination, the director shall consider the severity of the condition violation, actions taken to correct the violation, the frequency of any condition violations and whether the actions exhibit a pattern of conduct by the eligible facility owner and operator. The director shall also consider changes in general economic conditions and the recommendation of the director of the department of natural resources, or his or her designee, concerning the severity, scope, nature, frequency and extent of any violations of the environmental compliance conditions. The taxpayer or person claiming the tax credits or exemptions may appeal the decision regarding termination, suspension or revocation of any tax credit or exemption in accordance with the procedures outlined in subsections 4 to 6 of section 135.250, RSMo. The director of the department of economic development shall notify the directors of the departments of natural resources and revenue of the termination, suspension or revocation of any tax credits as determined in this section or pursuant to the provisions of section 447.716.
5. Notwithstanding any provision of law to the contrary, no taxpayer shall earn the tax credits, exemptions or refund otherwise allowed in subdivisions (2), (3) and (4) of subsection 1 of this section and the tax credits otherwise allowed in section 135.110, RSMo, or the tax credits, exemptions and refund otherwise allowed in sections 135.215, 135.220, 135.225 and 135.245, RSMo, respectively, for the same facility for the same tax period.
6. The total amount of the tax credits allowed in subsection 1 of this section may not exceed the greater of:
(1) That portion of the taxpayer's income attributed to the eligible project; or
(2) One hundred percent of the total business' income tax if the eligible facility does not replace a similar facility that closed elsewhere in Missouri prior to the end of the taxpayer's tax period in which the tax credits are earned, and further provided the taxpayer does not operate any other facilities besides the eligible project in Missouri; fifty percent of the total business' income tax if the eligible facility replaces a similar facility that closed elsewhere in Missouri prior to the end of the taxpayer's tax period in which the credits are earned, and further provided the taxpayer does not operate any other facilities besides the eligible project in Missouri; or twenty-five percent of the total business income if the taxpayer operates, in addition to the eligible facility, any other facilities in Missouri. In no case shall a taxpayer operating more than one eligible project in Missouri be allowed to offset more than twenty-five percent of the taxpayer's business income in any tax period. That portion of the taxpayer's income attributed to the eligible project as referenced in subdivision (1) of this subsection, for which the credits allowed in sections 135.110 and 135.225, RSMo, and subsection 3 of this section, may apply, shall be determined in the same manner as prescribed in subdivision (6) of section 135.100, RSMo. That portion of the taxpayer's franchise tax attributed to the eligible project for which the remediation tax credit may offset, shall be determined in the same manner as prescribed in paragraph (a) of subdivision (6) of section 135.100, RSMo.
7. Taxpayers claiming the state tax benefits allowed in subdivisions (2) and (3) of subsection 1 of this section shall be required to file all applicable tax credit applications, forms and schedules prescribed by the director during the taxpayer's tax period immediately after the tax period in which the eligible project was first put into use. Otherwise, the taxpayer's right to claim such state tax benefits shall be forfeited. Unused business facility and enterprise zone tax credits shall not be carried forward but shall be initially claimed for the tax period during which the eligible project was first capable of being used, and during any applicable subsequent tax periods.
8. Taxpayers claiming the remediation tax credit allowed in subsection 3 of this section shall be required to file all applicable tax credit applications, forms and schedules prescribed by the director during the taxpayer's tax period immediately after the tax period in which the eligible project was first put into use, or during the taxpayer's tax period immediately after the tax period in which the voluntary remediation activities were performed.
9. The recipient of remediation tax credits, for the purpose of this subsection referred to as assignor, may assign, sell or transfer, in whole or in part, the remediation tax credit allowed in subsection 3 of this section, to any other person, for the purpose of this subsection referred to as assignee. To perfect the transfer, the assignor shall provide written notice to the director of the assignor's intent to transfer the tax credits to the assignee, the date the transfer is effective, the assignee's name, address and the assignee's tax period and the amount of tax credits to be transferred. The number of tax periods during which the assignee may subsequently claim the tax credits shall not exceed twenty tax periods, less the number of tax periods the assignor previously claimed the credits before the transfer occurred.
10. In the case where an operator and assignor of an eligible project has been certified to claim state tax benefits allowed in subdivisions (2) and (3) of subsection 1 of this section, and sells or otherwise transfers title of the eligible project to another taxpayer or assignee who continues the same or substantially similar operations at the eligible project, the director shall allow the assignee to claim the credits for a period of time to be determined by the director; except that, the total number of tax periods the tax credits may be earned by the assignor and the assignee shall not exceed ten. To perfect the transfer, the assignor shall provide written notice to the director of the assignor's intent to transfer the tax credits to the assignee, the date the transfer is effective, the assignee's name, address, and the assignee's tax period, and the amount of tax credits to be transferred.
11. For the purpose of the state tax benefits described in this section, in the case of a corporation described in section 143.471, RSMo, or partnership, in computing Missouri's tax liability, such state benefits shall be allowed to the following:
(1) The shareholders of the corporation described in section 143.471, RSMo;
(2) The partners of the partnership.
The credit provided in this subsection shall be apportioned to the entities described in subdivisions (1) and (2) of this subsection in proportion to their share of ownership on the last day of the taxpayer's tax period.
620.030. The department of economic development shall have the authority to contract directly with the Missouri [technology corporation] discovery alliance, as established in section 348.251, RSMo, innovation centers, as established in section 348.271, RSMo, small business development centers, as established in sections 620.1000 to 620.1007, [centers for advanced technology, as established in section 348.272, RSMo,] and other entities or organizations for the provision of technology application, technology commercialization and technology development services. Such contracting procedures shall not be subject to the provisions of chapter 34, RSMo.
620.500. 1. There is created within the department of economic development a "Small Business Assistance Office" which shall establish [regional business assistance offices which shall be] one-stop guidance centers for entrepreneurs[. Such business assistance offices may be located in each geographic region of the state, subject to appropriation of funding by the general assembly. Where possible, each business assistance office shall be located] and small businesses in conjunction with [a] the small business development [center, a regional planning commission as defined in chapter 251, RSMo, or other existing agency or organization performing economic development functions] centers.
2. The small business assistance [office's regional offices] office shall:
(1) Provide a focal point and assist and counsel small businesses in their dealings with federal, state and local governments, including but not limited to providing ready access to information regarding government requirements which affect small business;
(2) [Analyze current legislation and regulation as it affects small business within its region for the purpose of determining methods of elimination or simplification of unnecessary regulatory requirements;
(3)] Assist small businesses [within its region] and entrepreneurs in obtaining available technical and financial assistance;
[(4)] (3) Initiate and encourage small business education programs, including programs in cooperation with various public and private educational institutions;
[(5)] (4) Foster participation of small businesses and entrepreneurs in the procurement activities of the state by providing a guide for businesses on the purchasing procedures and practices of state agencies, assisting the state agencies in developing a comprehensive list of small businesses capable of providing materials, supplies, equipment or contractual services to the state, and advising state agencies with respect to methods for simplifying procurement forms and procedures and other methods for increasing small business participation;
[(6) Receive complaints and recommendations concerning policies and activities of federal, state and local governmental agencies which affect small businesses, and develop, in cooperation with the agency involved, proposals for changes in policies or activities to alleviate any unnecessary adverse effects to small business within its region or throughout the state;
(7)] (5) Establish and operate a separate and distinct "business permit system", which shall provide comprehensive information on the federal, state and local requirements necessary to begin a small business and make this information available to the public;
[(8) Make recommendations regarding business paperwork requirements and simplification of forms and language and report to the director of the division of community and economic development on the cost effectiveness of the business permit system;
(9)] (6) Work with local business leaders and government officials and help them formulate and implement sound economic development decisions for their communities;
[(10)] (7) Provide assistance to entrepreneurs in the licensing and permitting process, including the necessary applications and paperwork.
620.503. 1. The department of economic development may enter into [contracts] a contract with any [institutions] institution of higher education within the state for the purpose of providing ready access to all state forms, regulations, requirements and other information necessary to conduct business in the state. [Each such] The office shall be known as [a] "The Small Business Assistance Office" and shall coordinate services [with a regional business assistance office] established pursuant to section 620.500.
2. [Each] The small business assistance office [may] shall provide research, development or training programs for [new or alternative] small businesses[, industries, or high technology businesses] within the state. [Each] The small business assistance office may also provide needs assessment relating to small businesses[, industries or high technology businesses] and entrepreneurs. [Each] The office may also provide feasibility studies relating to potential markets and employment opportunities.
3. [Each party] The institution of higher education entering into a contract with the department of economic development to provide or administer a small business assistance office shall, prior to the issuance of such a contract, submit to the department of economic development a detailed [description of] work plan that includes quantifiable performance appraisal measures and goals pertaining to the proposed efforts and results in marketing services provided by the small business assistance office. The department of economic development shall review [such material] and approve the work plan. When a contract to establish [a] the small business assistance office is renewed, renegotiated, or otherwise reissued, a contractor's actual efforts and results pertaining to the performance appraisal measures and goals shall be a criterion in the rewarding or renewal of a contract to establish or administer [a] the small business assistance office.
620.517. 1. This section shall be known and may be cited as the "Missouri Workforce Investment Act of 2006".
2. There is hereby established the "Missouri Workforce Investment Board", hereinafter referred to as the "state board".
3. The state board shall perform functions and activities so designated under the federal Workforce Investment Act of 1998, as amended, as well as under any successor federal law replacing the Workforce Investment Act of 1998, as amended.
4. The governor shall establish membership requirements of the state board based on federal law through executive order.
620.1003. The Missouri small business development centers in cooperation with appropriate department programs shall provide managerial and technical assistance to the small businesses. The centers shall also:
(1) Furnish one-to-one business counseling, management training, and other related services, with special emphasis on the development of management training programs using the resources of the business community, including the development of management training opportunities in existing business, and with emphasis in all cases of sufficient scope and duration to develop entrepreneurial and managerial self-sufficiency on the part of the individuals served;
(2) Assist in technology transfer, research and coupling from existing sources to small businesses[, and provide technological] by providing technical assistance to small businesses;
(3) Maintain current information concerning federal, state and local regulations that affect small businesses and counsel small businesses on methods of compliance;
(4) Maintain a working relationship and open communications with the governor, the general assembly, and the department to address the various needs of the small business community, and develop working relationships with federal departments and agencies, state departments and agencies, Missouri innovation centers, the financial and investment communities, legal associations, local and regional private consultants, and local and regional small business groups and associations, or any other entity to the extent possible in order to help address the various needs of the small business community;
(5) Provide and maintain a comprehensive library that contains current information and statistical data needed by small businesses;
(6) Build and maintain a network which allows small businesses to identify experts who can further assist their business with highly technical or specialized needs;
(7) Provide services, to the extent possible, at locations which are easily accessible to the individuals and small businesses of this state. Basic counseling services shall be provided free of charge, and other services may be provided on a cost-reimbursement basis;
(8) Continue to upgrade and modify their services, as needed, in order to meet the changing and evolving needs of the small business community;
(9) Be authorized to enter into agreements with the department to provide services under the provisions of sections 620.500 to 620.506; and
(10) Be authorized to provide any service authorized under the federal Small Business Development Centers Act.
620.1007. The director shall annually prepare and submit to the department, the governor and to the general assembly a report on the activities and financial expenditures of the Missouri small business development centers program for the year. The report shall also include an operational plan to detail the coordination between the small business development centers and the Missouri innovation centers. The report shall be approved by the department of economic development.
620.1878. For the purposes of sections 620.1875 to 620.1890, the following terms shall mean:
(1) "Approval", a document submitted by the department to the qualified company that states the benefits that may be provided by this program;
(2) "Average wage", the new payroll divided by the number of new jobs;
[(2)] (3) "Commencement of operations", the starting date for the qualified company's first new employee, which must be no later than twelve months from the date of the [proposal] approval;
[(3)] (4) "County average wage", the average wages in each county as determined by the department for the most recently completed full calendar year. However, if the computed county average wage is above the statewide average wage, the statewide average wage shall be deemed the county average wage for such county for the purpose of determining eligibility. The actual county average wage, and not the statewide average, shall be used for the purposes of determining if a company qualifies for a wage bonus for meeting one hundred twenty percent or one hundred forty percent of the county average wage. The department shall publish the county average wage for each county at least annually. Notwithstanding this subdivision to the contrary, for any qualified company that in conjunction with their project is relocating employees from a Missouri county with a higher county average wage, the company shall obtain the endorsement of the governing body of the community from which jobs are being relocated, or the county average wage for their project shall be the county average wage for the county from which employees are being relocated;
[(4)] (5) "Department", the Missouri department of economic development;
[(5)] (6) "Director", the director of the department of economic development;
[(6)] (7) "Employee", a person employed by a qualified company;
[(7) "Full-time equivalent employees", employees of the qualified company converted to reflect an equivalent of the number of full-time, year-round employees. The method for converting part-time and seasonal employees into an equivalent number of full-time, year-round employees shall be published in a rule promulgated by the department as authorized in section 620.1884;]
(8) "Full-time[, year-round] employee", an employee of the qualified company that [works] is scheduled to work an average of at least thirty-five hours per week for a twelve-month period, and one for which the qualified company offers health insurance and pays at least fifty percent of such insurance premiums;
(9) "High-impact project", a qualified company that, within two years from commencement of operations, creates one hundred or more new jobs;
(10) "Local incentives", the present value of the dollar amount of direct benefit received by a qualified company for a project facility from one or more local political subdivisions, but shall not include loans or other funds provided to the qualified company that must be repaid by the qualified company to the political subdivision;
(11) "NAICS", the 1997 edition of the North American Industry Classification System as prepared by the Executive Office of the President, Office of Management and Budget. Any NAICS sector, subsector, industry group or industry identified in this section shall include its corresponding classification in subsequent federal industry classification systems;
(12) "New direct local revenue", the present value of the dollar amount of direct net new tax revenues of the local political subdivisions likely to be produced by the project over a ten-year period as calculated by the department and net new utility revenues, provided the local incentives include a discount or other direct incentives from utilities owned or operated by the political subdivision;
(13) "New investment", the purchase or leasing of new tangible assets to be placed in operation at the project facility, which will be directly related to the new jobs;
(14) "New job", the number of full-time, year-round employees located at the project facility that exceeds the project facility base employment less any decrease in the number of full-time equivalent employees at related facilities below the related facility base employment. No job that was created prior to the date of the notice of intent shall be deemed a new job;
(15) "New payroll", [the amount of wages paid by a qualified company to employees in new jobs] the amount of taxable wages of full-time employees, excluding owners, located at the project facility that exceeds the project facility base payroll. If full-time employment at related facilities is below the related facility base employment, any decrease in payroll for full-time employees at the related facilities below the related facility base payroll shall also be subtracted to determine new payroll;
(16) "Notice of intent", a form developed by the department, completed by the qualified company and submitted to the department which states the qualified company's intent to hire new jobs and request benefits under this program;
(17) "Percent of local incentives", the amount of local incentives divided by the amount of new direct local revenue;
(18) "Program", the Missouri quality jobs program provided in sections 620.1875 to 620.1890;
(19) "Project facility", the building used by a qualified company at which the new jobs and new investment will be located. A project facility may include separate buildings that are located within one mile of each other such that their purpose and operations are interrelated;
(20) "Project facility base employment", the greater of the number of full-time employees located at the project facility on the date of the notice of intent or for the twelve-month period prior to the date of the [proposal] notice of intent, the average number of full-time [equivalent] employees located at the project facility. In the event the project facility has not been in operation for a full twelve-month period, [project facility base employment is] the average number of full-time [equivalent] employees for the number of months the project facility has been in operation prior to the date of the [proposal] notice of intent;
(21) "Project facility base payroll", the total amount of taxable wages paid by the qualified company to full-time employees of the qualified company located at the project facility in the twelve months prior to the notice of intent, not including the payroll of owners of the qualified company unless the qualified company is participating in an employee stock ownership plan. For the purposes of calculating the benefits under this program, the amount of base payroll shall increase each year based on the Consumer Price Index, or other comparable measure, as determined by the department;
(22) "Project period", the time period that the benefits are provided to a qualified company;
[(22) "Proposal", a document submitted by the department to the qualified company that states the benefits that may be provided by this program. The effective date of such proposal cannot be prior to the commencement of operations. The proposal shall not offer benefits regarding any jobs created prior to its effective date unless the proposal is for a job retention project;]
(23) "Qualified company", a firm, partnership, joint venture, association, private or public corporation whether organized for profit or not, or headquarters of such entity registered to do business in Missouri that is the owner or operator of a project facility, offers health insurance to all full-time employees of all facilities located in this state, and pays at least fifty percent of such insurance premiums. For the purposes of sections 620.1875 to 620.1890, the term "qualified company" shall not include:
(a) Gambling establishments (NAICS industry group 7132);
(b) Retail trade establishments (NAICS sectors 44 and 45);
(c) Food and drinking places (NAICS subsector 722);
(d) Utilities [regulated by the Missouri public service commission] services including but not limited to electric, gas, water, sewer, cable, and telephone;
(e) Any company that is delinquent in the payment of any nonprotested taxes or any other amounts due the state or federal government or any other political subdivision of this state; [or]
(f) Any company that has filed for or has publicly announced its intention to file for bankruptcy protection;
(g) Educational services (NAIC sector 61);
(h) Religious organizations (NAIC industry group 8131); or
(i) Public administration (NAIC sector 92);
(24) "Related company" means:
(a) A corporation, partnership, trust, or association controlled by the qualified company;
(b) An individual, corporation, partnership, trust, or association in control of the qualified company; or
(c) Corporations, partnerships, trusts or associations controlled by an individual, corporation, partnership, trust or association in control of the qualified company. As used in this subdivision, ["]control of a corporation["] shall mean ownership, directly or indirectly, of stock possessing at least fifty percent of the total combined voting power of all classes of stock entitled to vote, ["]control of a partnership or association["] shall mean ownership of at least fifty percent of the capital or profits interest in such partnership or association, ["]control of a trust["] shall mean ownership, directly or indirectly, of at least fifty percent of the beneficial interest in the principal or income of such trust, and ownership shall be determined as provided in Section 318 of the Internal Revenue Code of 1986, as amended;
(25) "Related facility", a facility operated by the qualified company or a related company located in this state that is directly related to the operations of the project facility;
(26) "Related facility base employment", the greater of the number of full-time employees located at all related facilities on the date of the notice of intent or for the twelve-month period prior to the date of the [proposal] notice of intent, the average number of full-time [equivalent] employees located at all related facilities of the qualified company or a related company located in this state;
(27) "Related facility base payroll", the total amount of taxable wages paid by the qualified company to full-time employees of the qualified company located at a related facility in the twelve months prior to the filing of the notice of intent, not including the payroll of owners of the qualified company unless the qualified company is participating in an employee stock ownership plan. For the purposes of calculating the benefits under this program, the amount of related facility base payroll shall increase each year based on the consumer price index, or other comparable measure, as determined by the department;
(28) "Rural area", a county in Missouri with a population less than seventy-five thousand or that does not contain an individual city with a population greater than fifty thousand according to the most recent federal decennial census;
[(28)] (29) "Small and expanding business project", a qualified company that within two years of the date of the [proposal] approval creates a minimum of twenty new jobs if the project facility is located in a rural area or a minimum of forty new jobs if the project facility is not located in a rural area and creates fewer than one hundred new jobs regardless of the location of the project facility;
[(29)] (30) "Tax credits", tax credits issued by the department to offset the state income taxes imposed by chapter 143 and 148, RSMo, or which may be sold or refunded as provided for in this program;
[(30)] (31) "Technology business project", a qualified company that within two years of the date of the [proposal] approval creates a minimum of ten new jobs [with at least seventy-five percent of the new jobs directly involved] in the operations of a technology company as determined by a regulation promulgated by the department under the provisions of section 620.1884 and classified by NAICS codes;
[(31)] (32) "Withholding tax", the state tax imposed by sections 143.191 to 143.265, RSMo. For purposes of this program, the withholding tax shall be computed using a schedule, as determined by the department based on average wages.
620.1881. 1. The department of economic development shall respond within thirty days to a company who provides a notice of intent with either [a proposal] an approval or a rejection of the notice of intent. Failure to respond on behalf of the department of economic development shall result in the notice of intent being deemed [a proposal] an approval for the purposes of this section. A qualified company who is provided [a proposal] an approval for a project shall be allowed a benefit as provided in this program in the amount and duration provided in this section. A qualified company may receive additional periods for subsequent new jobs at the same facility after the full initial period if the minimum thresholds are met as set forth in sections 620.1875 to 620.1890. There is no limit on the number of periods a qualified company may participate in the program, as long as the minimum thresholds are achieved and the qualified company provides the department with the required reporting and is in proper compliance for this program or other state programs. A qualified company may elect to file a notice of intent to start a new project period concurrent with an existing project period if the minimum thresholds are achieved and the qualified company provides the department with the required reporting and is in proper compliance for this program and other state programs; however, the qualified company may not receive any further benefit under the original [proposal] approval for jobs created after the date of the new notice of intent, and any jobs created before the new notice of intent may not be included as new jobs for the purpose of benefit calculation in relation to the new [proposal] approval.
2. Notwithstanding any provision of law to the contrary, any qualified company that is awarded benefits under this program may not [also] simultaneously receive tax credits or exemptions under sections 135.100 to 135.150, sections 135.200 to 135.286, section 135.535, or sections 135.900 to 135.906, RSMo[, for the same new jobs at the project facility]. The benefits available to the company under any other state programs for which the company is eligible and which utilize withholding tax from the new jobs of the company must first be credited to the other state program before the withholding retention level applicable under the Missouri quality jobs act will begin to accrue. These other state programs include, but are not limited to, the new jobs training program under sections 178.892 to 178.896, RSMo, the job retention program under sections 178.760 to 178.764, RSMo, the real property tax increment allocation redevelopment act, sections 99.800 to 99.865, RSMo, or the Missouri downtown and rural economic stimulus act under sections 99.915 to 99.980, RSMo. If any qualified company also participates in the new jobs training program in sections 178.892 to 178.896, RSMo, the company shall retain no withholding tax, but the department shall issue a refundable tax credit for the full amount of benefit allowed under this subdivision.
3. The types of projects and the amount of benefits to be provided are:
(1) Small and expanding business projects: in exchange for the consideration provided by the new tax revenues and other economic stimulus that will be generated by the new jobs created by the program, a qualified company may retain an amount equal to the withholding tax from the new jobs that would otherwise be withheld and remitted by the qualified company under the provisions of sections 143.191 to 143.265, RSMo, for a period of three years from the date the required number of new jobs were created if the average wage of the new payroll equals or exceeds the county average wage or for a period of five years from the date the required number of new jobs were created if the average wage of the new payroll equals or exceeds one hundred twenty percent of the county average wage;
(2) Technology business projects: in exchange for the consideration provided by the new tax revenues and other economic stimulus that will be generated by the new jobs created by the program, a qualified company may retain an amount equal to a maximum of five percent of new payroll for a period of five years from the date the required number of jobs were created from the withholding tax of the new jobs that would otherwise be withheld and remitted by the qualified company under the provisions of sections 143.191 to 143.265, RSMo, if the average wage of the new payroll equals or exceeds the county average wage. An additional one-half percent of new payroll may be added to the five percent maximum if the average wage of the new payroll in any year exceeds one hundred twenty percent of the county average wage in the county in which the project facility is located, plus an additional one-half percent of new payroll may be added if the average wage of the new payroll in any year exceeds one hundred forty percent of the average wage in the county in which the project facility is located. The department shall issue a refundable tax credit for any difference between the amount of benefit allowed under this subdivision and the amount of withholding tax retained by the company, in the event the withholding tax is not sufficient to provide the entire amount of benefit due to the qualified company under this subdivision. The calendar year annual maximum amount of tax credits that may be issued to any qualified company for a project or combination of projects is five hundred thousand dollars;
(3) High impact projects: in exchange for the consideration provided by the new tax revenues and other economic stimulus that will be generated by the new jobs created by the program, a qualified company may retain an amount from the withholding tax of the new jobs that would otherwise be withheld and remitted by the qualified company under the provisions of sections 143.191 to 143.265, RSMo, equal to three percent of new payroll for a period of five years from the date the required number of jobs were created if the average wage of the new payroll equals or exceeds the county average wage of the county in which the project facility is located. The percentage of payroll allowed under this subdivision shall be three and one-half percent of new payroll if the average wage of the new payroll in any year exceeds one hundred twenty percent of the county average wage in the county in which the project facility is located. The percentage of payroll allowed under this subdivision shall be four percent of new payroll if the average wage of the new payroll in any year exceeds one hundred forty percent of the county average wage in the county in which the project facility is located. An additional one percent of new payroll may be added to these percentages if local incentives equal between ten percent and twenty-four percent of the new direct local revenue; an additional two percent of new payroll is added to these percentages if the local incentives equal between twenty-five percent and forty-nine percent of the new direct local revenue; or an additional three percent of payroll is added to these percentages if the local incentives equal fifty percent or more of the new direct local revenue. The department shall issue a refundable tax credit for any difference between the amount of benefit allowed under this subdivision and the amount of withholding tax retained by the company, in the event the withholding tax is not sufficient to provide the entire amount of benefit due to the qualified company under this subdivision. The calendar year annual maximum amount of tax credits that may be issued to any qualified company for a project or combination of projects is seven hundred fifty thousand dollars. The calendar year annual maximum amount of tax credit that may be issued to any qualified company for a project or combination of projects may be increased up to one million dollars if the number of new jobs will exceed five hundred and if such action is proposed by the department and approved by the quality jobs advisory task force established in section 620.1887; provided, however, until such time as the initial at-large members of the quality jobs advisory task force are appointed, this determination shall be made by the director of the department of economic development. In considering such a request, the task force shall rely on economic modeling and other information supplied by the department when requesting the increased limit on behalf of the project;
(4) Job retention projects: a qualified company may receive a tax credit for the retention of jobs in this state, provided the qualified company and the project meets all of the following conditions:
(a) For each of the twenty-four months preceding the year in which application for the program is made the qualified company must have maintained at least one thousand full-time[, year-round] employees at the employer's site in the state at which the jobs are based, and the average wage of such employees must meet or exceed the county average wage;
(b) The qualified company retained at the project facility the level of full-time[, year-round] employees that existed in the taxable year immediately preceding the year in which application for the program is made;
(c) The qualified company is considered to have a significant statewide effect on the economy, and has been determined to represent a substantial risk of relocation from the state by the quality jobs advisory task force established in section 620.1887; provided, however, until such time as the initial at-large members of the quality jobs advisory task force are appointed, this determination shall be made by the director of the department of economic development;
(d) The qualified company in the project facility will cause to be invested a minimum of seventy million dollars in new investment prior to the end of two years or will cause to be invested a minimum of thirty million dollars in new investment prior to the end of two years and maintain an annual payroll of at least seventy million dollars during each of the years for which a credit is claimed; and
(e) The local taxing entities shall provide local incentives of at least fifty percent of the new direct local revenues created by the project over a ten-year period.
The quality jobs advisory task force may recommend to the department of economic development that appropriate penalties be applied to the company for violating the agreement. The amount of the job retention credit granted may be equal to up to fifty percent of the amount of withholding tax generated by the full-time[, year-round] jobs at the project facility for a period of five years. The calendar year annual maximum amount of tax credit that may be issued to any qualified company for a job retention project or combination of job retention projects shall be seven hundred fifty thousand dollars per year, but the maximum amount may be increased up to one million dollars if such action is proposed by the department and approved by the quality jobs advisory task force established in section 620.1887; provided, however, until such time as the initial at-large members of the quality jobs advisory task force are appointed, this determination shall be made by the director of the department of economic development. In considering such a request, the task force shall rely on economic modeling and other information supplied by the department when requesting the increased limit on behalf of the job retention project. In no event shall the total amount of all tax credits issued for the entire job retention program under this subdivision exceed three million dollars annually. Notwithstanding the above, no tax credits shall be issued for job retention projects approved by the department after August 30, 2007.
4. The qualified company shall provide an annual report of the number of jobs and such other information as may be required by the department to document the basis for the benefits of this program. The department may withhold the approval of any benefits until it is satisfied that proper documentation has been provided, and shall reduce the benefits to reflect any reduction in full-time[, year-round] employees or new payroll. Upon approval by the department, the qualified company may begin the retention of the withholding taxes when it reaches the minimum number of new jobs and the average wage exceeds the county average wage. Tax credits, if any, may be issued upon satisfaction by the department that the qualified company has exceeded the county average wage and the minimum number of new jobs. In such annual report, if the average wage is below the county average wage, the qualified company has not maintained the employee insurance as required, or if the number of new jobs is below the minimum, the qualified company shall not receive tax credits or retain the withholding tax for the balance of the benefit period. In the case of a qualified company that initially filed a notice of intent and received an approval from the department for high impact benefits, and the minimum number of new jobs in an annual report is below the minimum for high impact projects, the company shall not receive tax credits for the balance of the benefit period, but may continue to retain the withholding taxes if it otherwise meets the requirements of a small and expanding business under this program.
5. The maximum calendar year annual tax credits issued for the entire program shall not exceed [twelve] twenty-four million dollars. [Notwithstanding any provision of law to the contrary, the maximum annual tax credits authorized under section 135.535, RSMo, are hereby reduced from ten million dollars to eight million dollars, with the balance of two million dollars transferred to this program.] There shall be no limit on the amount of withholding taxes that may be retained by approved companies under this program.
6. The department shall allocate the annual tax credits based on the date of the [proposal] approval, reserving such tax credits based on the department's best estimate of new jobs and new payroll of the project, and the other factors in the determination of benefits of this program. However, the annual issuance of tax credits is subject to the annual verification of the actual new payroll. The allocation of tax credits for the period assigned to a project shall expire if, within two years from the date of commencement of operations, or [proposal] approval if applicable, the minimum thresholds have not been achieved. The qualified company may retain authorized amounts from the withholding tax under this section once the minimum new jobs thresholds are met for the duration of the project period. No benefits shall be provided under this program until the qualified company meets the minimum new jobs thresholds. In the event the qualified company does not meet the minimum new job threshold, the qualified company may submit a new notice of intent or the department may provide a new [proposal] approval for a new project of the qualified company at the project facility or other facilities.
7. For a qualified company with flow-through tax treatment to its members, partners, or shareholders, the tax credit shall be allowed to members, partners, or shareholders in proportion to their share of ownership on the last day of the qualified company's tax period.
8. Tax credits may be claimed against taxes otherwise imposed by chapters 143 and 148, RSMo, and may not be carried forward but shall be claimed within one year of the close of the taxable year for which they were issued.
9. Tax credits authorized by this section may be transferred, sold, or assigned by filing a notarized endorsement thereof with the department that names the transferee, the amount of tax credit transferred, and the value received for the credit, as well as any other information reasonably requested by the department.
10. Prior to the issuance of any tax credits, the department shall verify through the department of revenue that the tax credit applicant does not owe any delinquent income, sales, or use taxes, or interest or penalties on such taxes, and through the department of insurance that the applicant does not owe any delinquent insurance taxes. Such delinquency shall not affect the authorization of the application for such tax credits, except that the amount of credits issued shall be reduced by the applicant's tax delinquency. If the department of revenue or the department of insurance concludes that a taxpayer is delinquent after June fifteenth but before July first of any year, and the application of tax credits to such delinquency causes a tax deficiency on behalf of the taxpayer to arise, then the taxpayer shall be granted thirty days to satisfy the deficiency in which interest, penalties, and additions to tax shall be tolled. After applying all available credits towards a tax delinquency, the administering agency shall notify the appropriate department, and that department shall update the amount of outstanding delinquent tax owed by the applicant. If any credits remain after satisfying all insurance, income, sales, and use tax delinquencies, the remaining credits shall be issued to the applicant, subject to the restrictions of other provisions of the law.
11. The director of revenue shall issue a refund to the qualified company to the extent that the amount of credits allowed in this section exceeds the amount of the qualified company's income tax.
[11.] 12. An employee of a qualified company will receive full credit for the amount of tax withheld as provided in section 143.221, RSMo.
[12.] 13. If any provision of sections 620.1875 to 620.1890 or application thereof to any person or circumstance is held invalid, the invalidity shall not affect other provisions or application of these sections which can be given effect without the invalid provisions or application, and to this end, the provisions of sections 620.1875 to 620.1890 are hereby declared severable.
620.1892. 1. This section shall be known and may be cited as the "Small Business and Entrepreneurial Growth Act".
2. Unless otherwise modified in this section, the definitions provided in section 620.1878 shall apply to this section. For purposes of this section, the following terms shall mean:
(1) "Department", the department of economic development;
(2) "Eligible small business project", a project approved by the department of economic development through which a small business employer meets all of the following qualifications:
(a) The small business employer's total payroll increases by at least twenty percent due to the addition of new jobs or a business with less than five employees adds employees so that the total number of employees is five or greater;
(b) The number of jobs added through the project by the small business employer does not exceed the minimum number of jobs required to be eligible for benefits under any program of the Missouri quality job act;
(c) Wages for the new jobs created through the project by the small business employer are at least eighty-five percent of the average county wage as determined by the department of economic development; and
(d) The project is not eligible for any benefits under the Missouri quality jobs act;
(3) "Small business employer", a firm, partnership, joint venture, association, or a private or public corporation, whether organized for profit or not, provided that the term shall not include:
(a) Gambling establishments (NAICS industry group 7132);
(b) Any company that is delinquent in the payment of any nonprotested taxes or any other amounts due to the state or federal government or any other political subdivision of this state; or
(c) Any company that has filed for or has publicly announced its intention to file for bankruptcy protection.
3. For all taxable years beginning on or after January 1, 2007, a small business employer shall be allowed to receive benefits for an eligible small business project as follows:
(1) Retention of all tax withheld under sections 143.191 to 143.265, RSMo, from the newly created jobs for a period of one year; or
(2) If the employer also provides health insurance and pays more than fifty percent of the premiums for all employees, the tax withheld under sections 143.191 to 143.265, RSMo, from newly created jobs may be retained for a period of two years.
4. The department may promulgate rules to implement the provisions of this section. Any rule or portion of a rule, as that term is defined in section 536.010, RSMo, that is created under the authority delegated in this section shall become effective only if it complies with and is subject to all of the provisions of chapter 536, RSMo, and, if applicable, section 536.028, RSMo. This section and chapter 536, RSMo, are nonseverable and if any of the powers vested with the general assembly under chapter 536, RSMo, to review, to delay the effective date, or to disapprove and annul a rule are subsequently held unconstitutional, then the grant of rulemaking authority and any rule proposed or adopted after August 28, 2006, shall be invalid and void.
620.1900. 1. The department of economic development may charge a fee to the recipient of any tax credits issued by the department, in an amount up to two and one-half percent of the amount of tax credits issued. The fee shall be paid by the recipient upon the issuance of the tax credits. However, no fee shall be charged for the tax credits issued under section [135.460] 135.442, RSMo, [or section 208.770, RSMo,] or under sections 32.100 to 32.125, RSMo[, if issued for community services, crime prevention, education, job training, or physical revitalization].
2. All fees received by the department of economic development under this section shall be deposited solely to the credit of the economic development advancement fund, created under subsection 3 of this section.
3. There is hereby created in the state treasury the "Economic Development Advancement Fund", which shall consist of money collected under this section. The state treasurer shall be custodian of the fund and shall approve disbursements from the fund in accordance with sections 30.170 and 30.180, RSMo. Upon appropriation, money in the fund shall be used solely for the administration of this section. Notwithstanding the provisions of section 33.080, RSMo, to the contrary, any moneys remaining in the fund at the end of the biennium shall not revert to the credit of the general revenue fund. The state treasurer shall invest moneys in the fund in the same manner as other funds are invested. Any interest and moneys earned on such investments shall be credited to the fund.
4. Such fund shall consist of any fees charged under subsection 1 of this section, any gifts, contributions, grants, or bequests received from federal, private, or other sources, fees or administrative charges from private activity bond allocations, moneys transferred or paid to the department in return for goods or services provided by the department, and any appropriations to the fund.
5. At least fifty percent of the fees and other moneys deposited in the fund shall be appropriated for marketing, technical assistance, and training, contracts for specialized economic development services, and new initiatives and pilot programming to address economic trends. The remainder may be appropriated toward the costs of staffing and operating expenses for the program activities of the department of economic development, and for accountability functions.
Section 1. For purposes of determining eligibility for exemption from sales and use taxes of utilities as prescribed in section 144.030, RSMo, there shall be a rebuttable presumption that the raw materials used in the primary manufacture of automobiles contain at least twenty-five percent recovered materials.
Section 2. 1. Any small business which receives a federal Small Business Innovative Research, Small Business Technology Transfer, or Broad Agency Announcement grant may be issued a tax credit equal to fifty percent of the grant amount. The total amount of tax credits available shall not exceed two million dollars. Tax credits issued in accordance with this section may be transferred, sold, or assigned by notarized endorsement thereof which names the transferee. In addition, tax credits issued in accordance with this section shall be refundable.
2. All applications for the tax credit authorized in subsection 1 of this section shall be submitted to the department of economic development. The small business tax credit review committee shall review and qualify all applications. The department of economic development shall not issue any certificates without approval of the committee.
[32.110. Any business firm which engages in the activities of providing physical revitalization, economic development, job training or education for individuals, community services, or crime prevention in the state of Missouri shall receive a tax credit as provided in section 32.115 if the director of the department of economic development annually approves the proposal of the business firm; except that, no proposal shall be approved which does not have the endorsement of the agency of local government within the area in which the business firm is engaging in such activities which has adopted an overall community or neighborhood development plan that the proposal is consistent with such plan. The proposal shall set forth the program to be conducted, the neighborhood area to be served, why the program is needed, the estimated amount to be contributed to the program and the plans for implementing the program. If, in the opinion of the director of the department of economic development, a business firm's contribution can more consistently with the purposes of sections 32.100 to 32.125 be made through contributions to a neighborhood organization as defined in subdivision (13) of section 32.105, tax credits may be allowed as provided in section 32.115. The director of the department of economic development is hereby authorized to promulgate rules and regulations for establishing criteria for evaluating such proposals by business firms for approval or disapproval and for establishing priorities for approval or disapproval of such proposals by business firms with the assistance and approval of the director of the department of revenue. The total amount of tax credit granted for programs approved pursuant to sections 32.100 to 32.125 shall not exceed fourteen million dollars in fiscal year 1999 and twenty-six million dollars in fiscal year 2000, and any subsequent fiscal year, except as otherwise provided for proposals approved pursuant to section 32.111, 32.112 or 32.117. All tax credits authorized pursuant to the provisions of sections 32.100 to 32.125 may be used as a state match to secure additional federal funding.]
[32.117. 1. Any business firm which engages in the activity of providing a homeless assistance project for low-income persons in the state of Missouri shall receive a tax credit as provided in section 32.115, if the division of community development within the department of economic development annually approves the proposal of the business firm. The proposal shall only be approved if the project is located in a city with a population of four hundred thousand or more inhabitants which is located in more than one county and which serves a mix of rural and urban counties.
2. For purposes of this section "low-income persons" shall mean families or persons with incomes of fifty percent or less of median income adjusted for family size as allowed by the Department of Housing and Urban Development (HUD) under section 8.
3. The purpose of a homeless assistance project shall be to serve low-income families or persons who are experiencing economic crisis caused by one or more of the following:
(1) Loss of employment;
(2) Medical disability or emergency;
(3) Loss or delay of some form of public assistance benefits;
(4) Natural disaster;
(5) Substantial change in household composition;
(6) Victimization by criminal activity;
(7) Illegal action by a landlord;
(8) Displacement by government or private action; or
(9) Some other condition which constitutes a hardship.
4. The amount of the tax credit shall not exceed fifty-five percent of the value of the proposal benefits, which shall include one or more of the following types of benefits to low-income persons in order to be eligible:
(1) Payment of rent or mortgage for not more than three months during any twelve-month period;
(2) Payment to a landlord of a rent deposit or a security deposit for not more than two months during any twelve-month period;
(3) Case management services which shall include support services such as child care, education resource assistance, job resource assistance, counseling, and resource and referral;
(4) Outreach services to low-income persons to prevent homelessness;
(5) Transitional housing facilities with support services.
5. The homeless assistance program shall give priority to the following types of low-income families or individuals:
(1) Families with minor children who are in imminent danger of removal from the family because of a lack of suitable housing accommodation;
(2) Single parent household;
(3) Other households with children;
(4) Households with a disabled household member or a household member who is at least sixty-five years of age;
(5) All other households.
6. The organization implementing a homeless assistance program pursuant to this section shall make annual reports identifying the goal of the program, the number of recipients served, the type of services rendered, and moneys expended to provide the program. The program report shall be submitted to the governor, speaker of the house of representatives and the president pro tem of the senate. These reports shall also be available to the general public upon request.
7. For each of the fiscal years beginning on July 1, 1991, and July 1, 1992, one million dollars in tax credits may be allowed to be used for the homeless assistance pilot project, pursuant to this section.]
[32.120. The decision of the director of the department of economic development to approve or disapprove a proposal pursuant to section 32.110 shall be in writing, and if he approves the proposal, he shall state the maximum credit allowable to the business firm. A copy of the decision of the director of the department of economic development shall be transmitted to the director of revenue and to the governor.]
[84.240. The board of police commissioners shall establish the Bertillon system of identification of criminals and others by means of anthropometric indications, and they are further required to employ such additional assistance as may be necessary to properly conduct and manage this department.]
[135.460. 1. Section 135.460 and sections 620.1100 and 620.1103, RSMo, shall be known and may be cited as the "Youth Opportunities and Violence Prevention Act".
2. As used in this section, the term "taxpayer" shall include corporations as defined in section 143.441 or 143.471, RSMo, and individuals, individual proprietorships and partnerships.
3. A taxpayer shall be allowed a tax credit against the tax otherwise due pursuant to chapter 143, RSMo, excluding withholding tax imposed by sections 143.191 to 143.265, RSMo, chapter 147, RSMo, chapter 148, RSMo, or chapter 153, RSMo, in an amount equal to thirty percent for property contributions and fifty percent for monetary contributions of the amount such taxpayer contributed to the programs described in subsection 5 of this section, not to exceed two hundred thousand dollars per taxable year, per taxpayer; except as otherwise provided in subdivision (5) of subsection 5 of this section. The department of economic development shall prescribe the method for claiming the tax credits allowed in this section. No rule or portion of a rule promulgated under the authority of this section shall become effective unless it has been promulgated pursuant to the provisions of chapter 536, RSMo. All rulemaking authority delegated prior to June 27, 1997, is of no force and effect and repealed; however, nothing in this section shall be interpreted to repeal or affect the validity of any rule filed or adopted prior to June 27, 1997, if such rule complied with the provisions of chapter 536, RSMo. The provisions of this section and chapter 536, RSMo, are nonseverable and if any of the powers vested with the general assembly pursuant to chapter 536, RSMo, including the ability to review, to delay the effective date, or to disapprove and annul a rule or portion of a rule, are subsequently held unconstitutional, then the purported grant of rulemaking authority and any rule so proposed and contained in the order of rulemaking shall be invalid and void.
4. The tax credits allowed by this section shall be claimed by the taxpayer to offset the taxes that become due in the taxpayer's tax period in which the contribution was made. Any tax credit not used in such tax period may be carried over the next five succeeding tax periods.
5. The tax credit allowed by this section may only be claimed for monetary or property contributions to public or private programs authorized to participate pursuant to this section by the department of economic development and may be claimed for the development, establishment, implementation, operation, and expansion of the following activities and programs:
(1) An adopt-a-school program. Components of the adopt-a-school program shall include donations for school activities, seminars, and functions; school-business employment programs; and the donation of property and equipment of the corporation to the school;
(2) Expansion of programs to encourage school dropouts to reenter and complete high school or to complete a graduate equivalency degree program;
(3) Employment programs. Such programs shall initially, but not exclusively, target unemployed youth living in poverty and youth living in areas with a high incidence of crime;
(4) New or existing youth clubs or associations;
(5) Employment/internship/apprenticeship programs in business or trades for persons less than twenty years of age, in which case the tax credit claimed pursuant to this section shall be equal to one-half of the amount paid to the intern or apprentice in that tax year, except that such credit shall not exceed ten thousand dollars per person;
(6) Mentor and role model programs;
(7) Drug and alcohol abuse prevention training programs for youth;
(8) Donation of property or equipment of the taxpayer to schools, including schools which primarily educate children who have been expelled from other schools, or donation of the same to municipalities, or not-for-profit corporations or other not-for-profit organizations which offer programs dedicated to youth violence prevention as authorized by the department;
(9) Not-for-profit, private or public youth activity centers;
(10) Nonviolent conflict resolution and mediation programs;
(11) Youth outreach and counseling programs.
6. Any program authorized in subsection 5 of this section shall, at least annually, submit a report to the department of economic development outlining the purpose and objectives of such program, the number of youth served, the specific activities provided pursuant to such program, the duration of such program and recorded youth attendance where applicable.
7. The department of economic development shall, at least annually submit a report to the Missouri general assembly listing the organizations participating, services offered and the number of youth served as the result of the implementation of this section.
8. The tax credit allowed by this section shall apply to all taxable years beginning after December 31, 1995.
9. For the purposes of the credits described in this section, in the case of a corporation described in section 143.471, RSMo, partnership, limited liability company described in section 347.015, RSMo, cooperative, marketing enterprise, or partnership, in computing Missouri's tax liability, such credits shall be allowed to the following:
(1) The shareholders of the corporation described in section 143.471, RSMo;
(2) The partners of the partnership;
(3) The members of the limited liability company; and
(4) Individual members of the cooperative or marketing enterprise.
Such credits shall be apportioned to the entities described in subdivisions (1) and (2) of this subsection in proportion to their share of ownership on the last day of the taxpayer's tax period.]
[135.766. An eligible small business, as defined in Section 44 of the Internal Revenue Code, shall be allowed a credit against the tax otherwise due pursuant to chapter 143, RSMo, not including sections 143.191 to 143.265, RSMo, in an amount equal to any amount paid by the eligible small business to the United States Small Business Administration as a guaranty fee pursuant to obtaining Small Business Administration guaranteed financing and to programs administered by the United States Department of Agriculture for rural development or farm service agencies.]
[208.750. 1. Sections 208.750 to 208.775 shall be known and may be cited as the "Family Development Account Program".
2. For purposes of sections 208.750 to 208.775, the following terms mean:
(1) "Account holder", a person who is the owner of a family development account;
(2) "Community-based organization", any religious or charitable association formed pursuant to chapter 352, RSMo, that is approved by the director of the department of economic development to implement the family development account program;
(3) "Department", the department of economic development;
(4) "Director", the director of the department of economic development;
(5) "Family development account", a financial instrument established pursuant to section 208.760;
(6) "Family development account reserve fund", the fund created by an approved community-based organization for the purposes of funding the costs incurred in the administration of the program and for providing matching funds for moneys in family development accounts;
(7) "Federal poverty level", the most recent poverty income guidelines published in the calendar year by the United States Department of Health and Human Services;
(8) "Financial institution", any bank, trust company, savings bank, credit union or savings and loan association as defined in chapter 362, 369 or 370, RSMo, and with an office in Missouri which is approved by the director for participation in the program;
(9) "Program", the Missouri family development account program established in sections 208.750 to 208.775;
(10) "Program contributor", a person or entity who makes a contribution to a family development account reserve fund and is not the account holder.]
[208.755. 1. There is hereby established within the department of economic development a program to be known as the "Family Development Account Program". The program shall provide eligible families and individuals with an opportunity to establish special savings accounts for moneys which may be used by such families and individuals for education, home ownership or small business capitalization.
2. The department shall solicit proposals from community-based organizations seeking to administer the accounts on a not-for-profit basis. Community-based organization proposals shall include:
(1) A requirement that the individual account holder or the family of an account holder match the contributions of a community-based organization member by contributing cash;
(2) A process for including account holders in decision making regarding the investment of funds in the accounts;
(3) Specifications of the population or populations targeted for priority participation in the program;
(4) A requirement that the individual account holder or the family of an account holder attend economic literacy seminars;
(5) A process for including economic literacy seminars in the family development account program; and
(6) A process for regular evaluation and review of family development accounts to ensure program compliance by account holders.
3. In reviewing the proposals of community-based organizations, the department shall consider the following factors:
(1) The not-for-profit status of such organization;
(2) The fiscal accountability of the community-based organization;
(3) The ability of the community-based organization to provide or raise moneys for matching contributions;
(4) The ability of the community-based organization to establish and administer a reserve fund account which shall receive all contributions from program contributors; and
(5) The significance and quality of proposed auxiliary services, including economic literacy seminars, and their relationship to the goals of the family development account program.
4. No more than twenty percent of all funds in the reserve fund account may be used for administrative costs of the program in each of the first two years of the program, and no more than fifteen percent of such funds may be used for administrative costs for any subsequent year. Funds deposited by account holders shall not be used for administrative costs.
5. The department shall promulgate rules and regulations to implement and administer the provisions of sections 208.750 to 208.775. No rule or portion of a rule promulgated pursuant to the authority of sections 208.750 to 208.775 shall become effective unless it has been promulgated pursuant to the provisions of chapter 536, RSMo.]
[208.760. 1. A family or individual whose household income is less than or equal to two hundred percent of the federal poverty level may open a family development account for the purpose of accumulating and withdrawing moneys for specified expenditures. The account holder may withdraw moneys from the account on the approval of the community-based organization, without penalty, for any of the following expenditures:
(1) Educational costs for any family member at an accredited institution of higher education;
(2) Job training costs for any family member eighteen years of age or older, at an accredited or licensed training program;
(3) Purchase of a primary residence;
(4) Major repairs or improvements to a primary residence; or
(5) Start-up capitalization of a small business for any family member eighteen years of age or older.
2. Financial institutions approved by the department shall be permitted to establish family development accounts pursuant to sections 208.750 to 208.775. The financial institution shall certify to the department, on forms prescribed by the department and accompanied by any documentation required by the department, that such accounts have been established pursuant to the provisions of sections 208.750 to 208.775 and that deposits have been made on behalf of the account holder.
3. A financial institution establishing a family development account shall:
(1) Keep the account in the name of the account holder;
(2) Permit deposits to be made in the account by the following, subject to the indicated conditions:
(a) The account holder; or
(b) A community-based organization on behalf of the account holder. Such a deposit may include moneys to match the account holder's deposits, up to a three-to-one match rate;
(3) Require the account to earn at least the market rate of interest; and
(4) Permit the account holder to withdraw moneys from the account for any of the purposes listed in subsection 1 of this section.
4. The total of all deposits by the account holder into a family development account in a calendar year shall not exceed two thousand dollars. The total balance in a family development account shall not exceed fifty thousand dollars.]
[208.765. 1. Account holders who withdraw moneys from a family development account not in accordance with subsection 1 of section 208.760 shall forfeit all matching moneys in the account.
2. All moneys forfeited by an account holder pursuant to subsection 1 of this section shall be returned to the family development account reserve fund of the community-based organization.
3. In the event of an account holder's death, the account may be transferred to the ownership of a contingent beneficiary. An account holder shall name contingent beneficiaries at the time the account is established and may change such beneficiaries at any time. If the named beneficiary is deceased or otherwise cannot accept the transfer, the moneys shall be transferred to the family development account reserve fund of the community-based organization.]
[208.770. 1. Moneys deposited in or withdrawn pursuant to subsection 1 of section 208.760 from a family development account by an account holder are exempted from taxation pursuant to chapter 143, RSMo, excluding withholding tax imposed by sections 143.191 to 143.265, RSMo, and chapter 147, 148 or 153, RSMo, provided, however, that any money withdrawn for an unapproved use should be subject to tax as required by law.
2. Interest earned by a family development account is exempted from taxation pursuant to chapter 143, RSMo.
3. Any funds in a family development account, including accrued interest, shall be disregarded when determining eligibility to receive, or the amount of, any public assistance or benefits.
4. A program contributor shall be allowed a credit against the tax imposed by chapter 143, RSMo, excluding withholding tax imposed by sections 143.191 to 143.265, RSMo, and chapter 147, 148 or 153, RSMo, pursuant to sections 208.750 to 208.775. Contributions up to fifty thousand dollars per program contributor are eligible for the tax credit which shall not exceed fifty percent of the contribution amount.
5. The department of economic development shall verify all tax credit claims by contributors. The administrator of the community-based organization, with the cooperation of the participating financial institutions, shall submit the names of contributors and the total amount each contributor contributes to a family development account reserve fund for the calendar year. The director shall determine the date by which such information shall be submitted to the department by the local administrator. The department shall submit verification of qualified tax credits pursuant to sections 208.750 to 208.775 to the department of revenue.
6. The total tax credits authorized pursuant to sections 208.750 to 208.775 shall not exceed four million dollars in any fiscal year.]
[208.775. Subject to appropriations and to the provisions of chapter 34, RSMo, the department shall annually award up to one hundred thousand dollars for an independent evaluation of the program. Based on this program evaluation, the department shall provide a comprehensive report on the program to the speaker of the house and the president pro tem of the senate by March first of each year, beginning in 2000.]
[348.272. 1. In order to encourage greater collaboration between private industry and the universities of this state in the development and application of new technologies, the director of the department of economic development is authorized to designate centers for advanced technology. Each center so designated shall conduct research in specific technological areas identified by the Missouri business modernization and technology corporation as having significant potential for economic growth in Missouri, or in which the application of new technologies could significantly enhance the productivity and stability of Missouri businesses. Such designations shall be made in accordance with the standards and criteria set forth in subsection 3 of this section. Centers so designated shall be eligible for support from the department of economic development in the manner provided for in subsection 4 of this section, and for such additional support as may otherwise be provided by law.
2. As used in this section, the following terms shall mean:
(1) "Applicant", a university or university-affiliated research institute, or a consortium of such institutions, which requests designation as a center in accordance with such requirements as are established by the corporation for this purpose;
(2) "Center for advanced technology" or "center", a university or university-affiliated research institute, or a consortium of such institutions, designated by the foundation, which conducts a continuing program of basic and applied research, development, and technology transfer in one or more technological areas, in collaboration with and through the support of private business and industry;
(3) "Corporation", the Missouri business modernization and technology corporation;
(4) "University", any institution of postsecondary education, including public and private universities, colleges, junior colleges, vocational and technical schools, and other postsecondary institutions.
3. The corporation shall:
(1) Identify technological areas for which centers should be designated, including, but not limited to, technological areas that are related to industries with significant potential for economic growth and development in Missouri and technological areas that are related to the enhancement of productivity in various industries located in Missouri;
(2) Establish criteria that applicants must satisfy for designation as a center, including, but not limited to, the following:
(a) An established record of research, development and instruction in the area or areas of technology involved;
(b) The capacity to conduct research and development activities in collaboration with business and industry;
(c) The capacity to secure substantial private and other governmental funding for the proposed center;
(d) The ability and willingness to cooperate with other institutions in this state in conducting research and development activities, and in disseminating research results; and to work with technical and community colleges in this state to enhance the quality of technical education in the area or areas of technology involved;
(e) The ability and willingness to cooperate with the corporation, the department of economic development, and other economic development agencies in promoting the growth and development in Missouri of industries based upon or benefiting from the area or areas of technology involved;
(3) Establish such requirements as it deems appropriate for the format, content and filing of applications for designation as centers for advanced technology;
(4) Establish such procedures as it deems appropriate for the evaluation of applications for designation as centers for advanced technology, including the establishment of peer review panels composed of nationally recognized experts in the technological areas and industries to which the application is related.
4. From such funds as may be appropriated for this purpose by the general assembly, the department of economic development may provide financial support, through contracts or other means, to designated centers for advanced technology in order to enhance and accelerate the development of such centers. Funds received pursuant to this subsection may be used for the purchase of equipment and fixtures, employment of faculty and support staff, provision of graduate fellowships, and other purposes approved by the department of economic development, but may not be used for capital construction.
5. From such funds as may be appropriated for this purpose by the general assembly, the department of economic development may provide grants to any one university or university-affiliated research institution for purposes of planning and program development aimed at enabling such university or university-affiliated research institution to qualify for designation as a center. Such grants shall be awarded on a competitive basis, and shall be available only to those applicants which, in the judgment of the corporation and department of economic development, may reasonably be expected to be designated as centers.]
[620.495. 1. This section shall be known as the "Small Business Incubators Act".
2. As used in this section, unless the context clearly indicates otherwise, the following words and phrases shall mean:
(1) "Department", the department of economic development;
(2) "Incubator", a program in which small units of space may be leased by a tenant and in which management maintains or provides access to business development services for use by tenants or a program without infrastructure in which participants avail themselves of business development services to assist in the growth of their start-up small businesses;
(3) "Local sponsor" or "sponsor", an organization which enters into a written agreement with the department to establish, operate and administer a small business incubator program or to provide funding to an organization which operates such a program;
(4) "Participant", a sole proprietorship, business partnership or corporation operating a business for profit through which the owner avails himself or herself of business development services in an incubator program;
(5) "Tenant", a sole proprietorship, business partnership or corporation operating a business for profit and leasing or otherwise occupying space in an incubator.
3. There is hereby established under the direction of the department a loan, loan guarantee and grant program for the establishment, operation and administration of small business incubators, to be known as the "Small Business Incubator Program". A local sponsor may submit an application to the department to obtain a loan, loan guarantee or grant to establish an incubator. Each application shall:
(1) Demonstrate that a program exists that can be transformed into an incubator at a specified cost;
(2) Demonstrate the ability to directly provide or arrange for the provision of business development services for tenants and participants of the incubator. These services shall include, but need not be limited to, financial consulting assistance, management and marketing assistance, business education, and physical services;
(3) Demonstrate a potential for sustained use of the incubator program by eligible tenants and participants, through a market study or other means;
(4) Demonstrate the ability to manage and operate the incubator program;
(5) Include such other information as the department may require through its guidelines.
4. The department shall review and accept applications based on the following criteria:
(1) Ability of the local sponsor to carry out the provisions of this section;
(2) Economic impact of the incubator on the community;
(3) Conformance with areawide and local economic development plans, if such exist;
(4) Location of the incubator, in order to encourage geographic distribution of incubators across the state.
5. Loans, loan guarantees and grants shall be administered in the following manner:
(1) Loans awarded or guaranteed and grants awarded shall be used only for the acquisition and leasing of land and existing buildings, the rehabilitation of buildings or other facilities, construction of new facilities, the purchase of equipment and furnishings which are necessary for the creation and operation of the incubator, and business development services including, but not limited to, business management advising and business education;
(2) Loans, loan guarantees and grants may not exceed fifty percent of total eligible project costs;
(3) Payment of interest and principal on loans may be deferred at the discretion of the department.
6. A local sponsor, or the organization receiving assistance through the local sponsor, shall have the following responsibilities and duties in establishing and operating an incubator with assistance from the small business incubator program:
(1) Secure title on a facility for the program or a lease of a facility for the program;
(2) Manage the physical development of the incubator program, including the provision of common conference or meeting space;
(3) Furnish and equip the program to provide business services to the tenants and participants;
(4) Market the program and secure eligible tenants and participants;
(5) Provide financial consulting, marketing and management assistance services or arrange for the provision of these services for tenants and participants of the incubator, including assistance in accessing private financial markets;
(6) Set rental and service fees;
(7) Encourage the sharing of ideas between tenants and participants and otherwise aid the tenants and participants in an innovative manner while they are within the incubator;
(8) Establish policies and criteria for the acceptance of tenants and participants into the incubator and for the termination of occupancy of tenants so as to maximize the opportunity to succeed for the greatest number of tenants, consistent with those specified in this section.
7. The department:
(1) May adopt such rules, statements of policy, procedures, forms and guidelines as may be necessary for the implementation of this section;
(2) May make loans, loan guarantees and grants to local sponsors for incubators;
(3) Shall ensure that local sponsors receiving loans, loan guarantees or grants meet the conditions of this section;
(4) Shall receive and evaluate annual reports from local sponsors. Such annual reports shall include, but need not be limited to, a financial statement for the incubator, evidence that all tenants and participants in the program are eligible under the terms of this section, and a list of companies in the incubator.
8. The department of economic development is also hereby authorized to review any previous loans made under this program and, where appropriate in the department's judgment, convert such loans to grant status.
9. On or before January first of each year, the department shall provide a report to the governor, the chief clerk of the house of representatives and the secretary of the senate which shall include, but need not be limited to:
(1) The number of applications for incubators submitted to the department;
(2) The number of applications for incubators approved by the department;
(3) The number of incubators created through the small business incubator program;
(4) The number of tenants and participants engaged in each incubator;
(5) The number of jobs provided by each incubator and tenants and participant of each incubator;
(6) The occupancy rate of each incubator;
(7) The number of firms still operating in the state after leaving incubators and the number of jobs they have provided.
10. There is hereby established in the state treasury a special fund to be known as the "Missouri Small Business Incubators Fund", which shall consist of all moneys which may be appropriated to it by the general assembly, and also any gifts, contributions, grants or bequests received from federal, private or other sources. Moneys for loans, loan guarantees and grants under the small business incubator program may be obtained from appropriations made by the general assembly from the Missouri small business incubators fund. Any moneys remaining in the Missouri small business incubators fund at the end of any fiscal year shall not lapse to the general revenue fund, as provided in section 33.080, RSMo, but shall remain in the Missouri small business incubators fund.
11. For any taxable year beginning after December 31, 1989, a taxpayer shall be entitled to a tax credit against any tax otherwise due under the provisions of chapter 143, RSMo, or chapter 147, RSMo, or chapter 148, RSMo, excluding withholding tax imposed by sections 143.191 to 143.265, RSMo, in the amount of fifty percent of any amount contributed by the taxpayer to the Missouri small business incubators fund during the taxpayer's tax year or any contribution by the taxpayer to a local sponsor after the local sponsor's application has been accepted and approved by the department. The tax credit allowed by this subsection shall be claimed by the taxpayer at the time he files his return and shall be applied against the income tax liability imposed by chapter 143, RSMo, or chapter 147, RSMo, or chapter 148, RSMo, after all other credits provided by law have been applied. That portion of earned tax credits which exceeds the taxpayer's tax liability may be carried forward for up to five years. The aggregate of all tax credits authorized under this section shall not exceed five hundred thousand dollars in any taxable year.
12. Notwithstanding any provision of Missouri law to the contrary, any taxpayer may sell, assign, exchange, convey or otherwise transfer tax credits allowed in subsection 11 of this section under the terms and conditions prescribed in subdivisions (1) and (2) of this subsection. Such taxpayer, hereinafter the assignor for the purpose of this subsection, may sell, assign, exchange or otherwise transfer earned tax credits:
(1) For no less than seventy-five percent of the par value of such credits; and
(2) In an amount not to exceed one hundred percent of annual earned credits.
The taxpayer acquiring earned credits, hereinafter the assignee for the purpose of this subsection, may use the acquired credits to offset up to one hundred percent of the tax liabilities otherwise imposed by chapter 143, RSMo, or chapter 147, RSMo, or chapter 148, RSMo, excluding withholding tax imposed by sections 143.191 to 143.265, RSMo. Unused credits in the hands of the assignee may be carried forward for up to five years. The assignor shall enter into a written agreement with the assignee establishing the terms and conditions of the agreement and shall perfect such transfer by notifying the department of economic development in writing within thirty calendar days following the effective day of the transfer and shall provide any information as may be required by the department of economic development to administer and carry out the provisions of this section. The director of the department of economic development shall prescribe the method for submitting applications for claiming the tax credit allowed under subsection 11 of this section and shall, if the application is approved, certify to the director of revenue that the taxpayer claiming the credit has satisfied all the requirements specified in this section and is eligible to claim the credit.]
[620.521. Sections 620.521 to 620.530 shall be known and may be cited as the "Missouri Training and Employment Council Act".]
[620.523. 1. There is hereby established the "Missouri Training and Employment Council".
2. The Missouri training and employment council shall study and make recommendations regarding the improvement of the state's job training service delivery network. Such recommendations will consider improved federal and state resource use and expanded coordination of state job training and employment activities with other related activities. Using the results of interdepartmental collaboration at early stages of policy formation, the council shall propose a statewide training and employment policy and a periodically updated plan of services for achieving Missouri's objective of full employment. The council shall serve as a forum for public and private sector representation to encourage cooperative uses of training and employment funding, facilities and staff resources for a more comprehensive and coordinated statewide system.
3. The Missouri training and employment council shall consist of thirty members appointed by the governor with the advice and consent of the senate. The governor shall designate one nongovernmental member to be chairman. The council shall be composed as follows:
(1) Thirty percent of the membership shall be representatives of business, industry and agriculture, including individuals who are representatives of business, industry, and agriculture on private industry councils, job service employer committees or local education advisory committees within the state;
(2) Thirty percent of the membership shall be:
(a) Members of the general assembly and state agencies and organizations. One representative each from the department of economic development, the department of elementary and secondary education, the department of labor and industrial relations and the department of social services shall be appointed;
(b) Representatives of the units or consortia of units of general local government which shall be nominated by the chief elected officials of the units or consortia of units of local government and the representatives of local educational agencies who shall be nominated by local educational agencies. One community college president or chancellor, one representative of the state council on vocational education and one director of an area vocational school shall be appointed to the council. To the extent feasible, such appointees shall have knowledge of or experience with economic development, job training, education or related areas;
(3) Thirty percent of the membership shall be representatives of organized labor and representatives of community-based organizations in the state;
(4) Ten percent of the membership shall be representatives of the general public.
The composition and the roles and responsibilities of the Missouri training and employment council membership may be amended to comply with any succeeding federal or state legislative or regulatory requirements governing training and employment programs, except that the procedure for such change shall be outlined in state rules and regulations and adopted in the bylaws of the council.
4. Each member of the council shall serve for a term of four years and until a successor is duly appointed; except that, of the members first appointed, six members shall serve for a term of four years, eight members shall serve for a term of three years, eight members shall serve for a term of two years and eight members shall serve for a term of one year. Each member shall continue to serve until a successor is duly appointed. The council shall meet at least four times each year at the call of the chairman.
5. The members of the council shall receive no compensation, but shall be reimbursed for all necessary expenses actually incurred in the performance of their official duties.]
[620.527. 1. The Missouri training and employment council shall:
(1) Review studies of occupational trends, employment supply and demand, industry growth, job training program participation, labor force literacy and early warning signals that industries are beginning to decline or are in danger of closing;
(2) Report to the governor and to the general assembly regarding statewide training and employment policies which have been developed in concert with interagency assistance from the department of economic development, the department of elementary and secondary education, the department of labor and industrial relations, the department of social services and other agencies delivering training and employment services;
(3) Prepare and submit to appropriate state and local agencies a statewide plan for full-employment services including such activities as labor exchange, job training or retraining, job development, job placement services and labor force literacy;
(4) Work through various state agencies delivering training and employment services to review interagency coordination and program effectiveness;
(5) Review and report to the governor innovative proposals for training and employment programs; and
(6) Encourage the participation of government, business and industry, and unions or other labor organizations, for providing assistance to dislocated workers, in communities where plant closures occur.
2. The roles, responsibilities and duties of the Missouri job training coordinating council established by Missouri executive order 88-8 are hereby assigned to the Missouri training and employment council. The Missouri training and employment council shall perform all council functions required by the federal Job Training Partnership Act, as amended, as well as the expanded requirements defined by sections 620.521 to 620.530.]
[620.528. No later than September 1, 1992, the Missouri training and employment council shall submit to the governor and to the general assembly a proposed statewide training and employment policy. This policy shall address public and private participation toward achieving Missouri's objective of full employment. The policy shall also address methods to improve federal and state resource use in the providing of job training services and coordination of training and employment activities with other related activities.]
[620.529. 1. The Missouri training and employment council shall prepare and recommend a statewide training and employment plan for consideration by appropriate state and local agencies by 1993. The plan shall be reviewed annually and updated periodically and shall propose implementation timetables, measurable objectives and specific courses of action. The plan shall describe possible cooperative uses of training and employment funding, facilities and staff resources whenever feasible and shall focus on the development of a more coordinated training and employment delivery system.
2. The plan shall include provisions to accomplish the following objectives by the administering agencies:
(1) Provide a streamlined intake and assessment process for persons seeking training and employment assistance;
(2) Target appropriate skill areas for training so that persons are trained for positions expected to exist in the labor market;
(3) Allow workers with obsolete or inadequate skills to have their skills upgraded while retaining employment;
(4) Retrain workers displaced by high technology industry and plant closings to reenter the Missouri workforce;
(5) Involve business and industry in the planning, operation and evaluation of training programs;
(6) Encourage and assist local educational agencies, vocational technical schools and post-secondary institutions to coordinate their curricula and course selections with the changing needs of business and industry;
(7) Develop programs to improve the use of apprenticeship as a method of instruction in Missouri.
3. The objectives listed in subsection 2 of this section shall be the foundation for interagency efforts to coordinate services and offer programs which maximize resources to meet Missouri's workforce needs while recognizing various agency roles and responsibilities.]
[620.530. 1. The division of job development and training shall provide professional, technical and clerical staff support and resources to the Missouri training and employment council; administer training programs authorized under the federal Job Training Partnership Act; administer programs authorized under sections 620.470 to 620.481; and administer such other federal or state job development and training programs as are assigned to the division.
2. The division shall promulgate rules and regulations necessary to carry out its responsibility to the Missouri training and employment council and to develop the plans and policies adopted by the council. No rule or portion of a rule promulgated under the authority of sections 620.470 to 620.570 shall become effective unless it has been promulgated pursuant to the provisions of section 536.024, RSMo.]
[620.537. 1. The department of economic development shall commission a new targeted industries study to identify those general areas of the Missouri economy where growth and increased employment is likely to occur in the next decade, and to ascertain necessary, associated work force skills and requirements. The completed study shall be distributed to all Missouri state agencies which provide job training services in order to promote collaboration in the development of employment projections and in the delivery of training services, and to any local economic development agency requesting a copy of such study.
2. The Missouri training and employment council, in conjunction with the state's private industry councils, the state's community colleges, the state's area vocational technical schools, community action agencies, as defined in section 660.370, RSMo, the department of economic development, the department of elementary and secondary education, the department of labor and industrial relations, the department of social services, and the Missouri state council on vocational education shall initiate a study regarding the value of a clustered or regional focus on job training, including the establishment of customized, technical training centers and utilization of portable equipment. Emphasis will be placed on the determination of broad occupational training needs.]
[620.1100. 1. The "Youth Opportunities and Violence Prevention Program" is hereby established in the division of community and economic development of the department of economic development to broaden and strengthen opportunities for positive development and participation in community life for youth, and to discourage such persons from engaging in criminal and violent behavior. For the purposes of section 135.460, RSMo, this section and section 620.1103, the term "advisory committee" shall mean an advisory committee to the division of community and economic development established pursuant to this section composed of ten members of the public. The ten members of the advisory committee shall include members of the private sector with expertise in youth programs, and at least one person under the age of twenty-one. Such members shall be appointed for two-year terms by the director of the department of economic development.
2. The "Youth Opportunities and Violence Prevention Fund" is hereby established in the state treasury and shall be administered by the department of economic development. The department may accept for deposit into the fund any grants, bequests, gifts, devises, contributions, appropriations, federal funds, and any other funds from whatever source derived. Moneys in the fund shall be used solely for purposes provided in section 135.460, RSMo, this section and section 620.1103. Any unexpended balance in the fund at the end of a fiscal year shall be exempt from the provisions of section 33.080, RSMo, relating to the transfer of unexpended balances to the general revenue fund.
3. The department of economic development in conjunction with the advisory committee shall establish program criteria and evaluation methods for tax credits claimed pursuant to section 135.460, RSMo. Such criteria and evaluation methods shall measure program effectiveness and outcomes, and shall give priority to local, neighborhood, community-based programs. The department shall monitor and evaluate all programs funded pursuant to section 135.460, RSMo, this section and section 620.1103. Such programs shall provide a priority for applications from areas of the state which have statistically higher incidence of crime, violence and poverty and such programs shall be funded before the programs which have applied from areas which do not exhibit crime, violence, and poverty to the same degree. The committee shall focus and support specific programs designed to generate self-esteem and a positive self-reliance in youth and which abate youth violence.
4. The department shall develop and operate a database which lists all participating and related programs. The database shall include indexes and cross references and shall be accessible by the public by computer-modem connection. The division of data processing and telecommunications of the office of administration and the department of economic development shall cooperate with the advisory committee in the development and operation of the program.]
[620.1103. 1. Notwithstanding any provision of law to the contrary, the department may in its discretion assign moneys from the youth opportunities and violence prevention fund to any entity designated by the department, for programs designated in section 135.460, RSMo, section 620.1100 and this section, including, but not limited to, schools, state agencies, political subdivisions and agencies thereof, not-for-profit corporations or not-for-profit organizations, the Missouri youth conservation corps, community action agencies, caring community programs, or any other entity or program such as any early childhood program, including, but not limited to, the parents as teachers program or similar programs; provided that, such assignment of funds does not exceed fifteen percent of the total value of the fund, and provided further that no more than ten percent of such funds assigned shall be used for administrative purposes.
2. Any entity receiving funds pursuant to the youth opportunities and violence prevention act shall sign an agreement to utilize such funds for the programs designated in section 135.460, RSMo, section 620.1100 and this section. The state auditor may conduct an audit to monitor the utilization of funds assigned by the department. If an entity uses funds for purposes other than for the programs designated in section 135.460, RSMo, section 620.1100 and this section, the department shall require the entity to repay such funds to the department.]
•