HB701 - ECONOMIC DEVELOPMENT - Rizzo, Henry C.
HB701 REVISES TAX CREDITS AND PROGRAMS DESIGNED TO STIMULATE ECONOMIC DEVELOPMENT.
Sponsor: Rizzo, Henry C. (40) Effective Date:00/00/0000
CoSponsor: LR Number:1731-15
Last Action: 07/13/1999 - Approved by Governor (G)
07/13/1999 - Delivered to Secretary of State
CCS SS SCS HS HCS HB 701
Next Hearing:Hearing not scheduled
Calendar:Bill currently not on calendar
ACTIONS HEARINGS CALENDAR
BILL SUMMARIES BILL TEXT FISCAL NOTES
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Available Bill Summaries for HB701 Copyright(c)
* Truly Agreed * Senate Committee Substitute * Perfected * Committee * Introduced

Available Bill Text for HB701
* Truly Agreed * Senate Committee Substitute * Perfected * Committee * Introduced *

Available Fiscal Notes for HB701
* Conference Committee * Senate Substitute * Senate Committee Substitute * House Substitute * House Committee Substitute * Introduced *

BILL SUMMARIES

TRULY AGREED

CCS SS SCS HS HCS HB 701 -- ECONOMIC DEVELOPMENT

This bill makes changes to various economic development programs
and laws.  In its main provisions, the bill:

(1)  Allows certain airports and terminal services to qualify
for enterprise zone and new and expanded business facility (BFC)
tax credits;

(2)  Specifies that the right to receive exemptions and credits
through the enterprise zone and BFC tax credit programs is to be
vested in the taxpayer, with vested rights in the BFC program
carried back to 1990, and vested rights in the enterprise zone
programs carried back to 1996;

(3)  Increases the maximum population limit for enterprise zone
or satellite enterprise zone designation from 59,000 to 72,000
residents;

(4)  Adds an enterprise zone for Randolph County; an area in
both St. Genevieve and Jefferson counties; and the cities of
Ava, Portageville, and Lamar;

(5)  Adds a satellite enterprise zone for Independence;

(6)  Allows existing businesses which hire new employees, if
located in a distressed community and if certain employment and
industry-type criteria are met, to qualify for the distressed
community tax credits;

(7)  Clarifies that tax credits for film projects apply to
"projects" and limits each firm to one qualified project per
year;

(8)  Authorizes reciprocal interstate recognition of tax credits;

(9)  Authorizes an income tax credit for dry fire hydrant
purchase, or the provision of water storage for dry hydrants.
The total amount of tax credits is limited to $500,000 per
fiscal year, and the program expires August 28, 2003;

(10)  Extends the sunset date from June 30, 2000, to June 30,
2010, for Rural Communities Economic Assistance Program grants;

(11)  Extends the sunset date from July 1, 1999, to July 1,
2010, for the Joint Committee on Economic Development Policy and
Planning;

(12)  Authorizes Wellston to receive grants through the Business
Extension Service Team Fund (BEST) and caps the fund's
administrative costs at 10%;

(13)  Effective January 1, 2000, requires the board, department
or authority issuing tax credits under the major tax credit
programs of the Department of Economic Development to report by
November of each year on credits issued, credits claimed, and
credits unclaimed.  The report will go to the President Pro Tem,
the Speaker, the Office of Administration, and the Joint
Committee on Economic Development;

(14)  Provides for a 5-year period of ineligibility for state
economic incentives for employers who employ illegal aliens;
such employers are guilty of a class A misdemeanor;

(15)  Transfers the responsibility for a cost-benefit analysis
on the tax credit and loan programs operated by the Department
of Economic Development from the Office of Administration to the
State Auditor; the analysis is to be published and distributed
every 2 years, beginning January 1, 2001; and

(16)  Allows decisions regarding state administered or
subsidized tax credits, tax abatement or loan programs to be
appealed to the Administrative Hearing Commission.


PERFECTED

HS HCS HB 701 -- ENTERPRISE ZONES (Rizzo)

Current law outlines several criteria an area must meet in order
to be designated as a state enterprise zone or as a satellite
enterprise zone.  One of these criteria defines the minimum and
maximum resident population limits that a geographical area must
meet.  This substitute increases the maximum population limit
for enterprise zone or satellite enterprise zone designation
from 59,000 residents to 72,000 residents.  The substitute also
(1) adds an enterprise zone for Randolph County, for Callaway
County, for Barton County, and for the city of Ava; (2)
authorizes a satellite enterprise zone for the city of
Independence, and allows retail businesses within this satellite
zone to receive benefits; (3)  specifies that the right to
receive exemptions and credits through the Enterprise Zone
Program and the New or Expanded Business Facility program are to
be vested in the taxpayer; and (4)  provides that
representations made by the Department of Economic Development
regarding these incentives are binding on the state to the
extent that these representations are consistent with the
statutory provisions related to qualifying for the incentives.

FISCAL NOTE:  Estimated Net Cost to General Revenue Fund of
$1,459,930 in FY 2000, $1,459,657 in FY 2001, and $1,460,983 in
FY 2002.


COMMITTEE

HCS HB 701 -- ENTERPRISE ZONES

SPONSOR:  Rizzo

COMMITTEE ACTION:  Voted "do pass" by the Committee on Commerce
by a vote of 26 to 0.

Current law outlines several criteria an area must meet in order
to be designated as a state enterprise zone or as a satellite
enterprise zone.  One of these criteria defines the minimum and
maximum resident population limits that a geographical area must
meet.  This substitute increases the maximum population limit
for enterprise zone or satellite enterprise zone designation
from 59,000 residents to 72,000 residents.  The substitute also:

(1)  Adds an enterprise zone for Randolph County;

(2)  Specifies that the right to receive exemptions and credits
through the enterprise zone program are to be vested in the
taxpayer; and

(3)  Provides that representations made by the Department of
Economic Development regarding these incentives are binding on
the state to the extent that these representations are
consistent with the statutory provisions related to qualifying
for the incentives.

FISCAL NOTE:  Estimated Net Cost to General Revenue Fund of
$352,000 in FY 2000, FY 2001, and FY 2002.

PROPONENTS:  Supporters say that the bill allows the enterprise
zone program to keep pace with the state's population growth,
and help ensure that taxpayers retain confidence that the
incentives promised through the program will be forthcoming.

Testifying for the bill were Representative Rizzo; Harley
Davidson; and City of Kansas City Enterprise Zone Program.

OPPONENTS:  There was no opposition voiced to the committee.

Debra Cheshier, Senior Legislative Analyst


INTRODUCED

HB 701 -- Enterprise Zones

Sponsor:  Rizzo

Current law outlines several criteria an area must meet in order
to be designated as a state enterprise zone or as a satellite
enterprise zone.  One of these criteria defines the minimum and
maximum resident population limits that a geographical area must
meet.  This bill increases the maximum population limit for
enterprise zone or satellite enterprise zone designation from
59,000 residents to 72,000 residents.


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