Thursday, August 30, 2007

ECONOMIC DEVELOPMENT BILL FINALLY PASSED

Thanks to the strong leadership of Rep. Ron Richard and Sen. John Griesheimer, the economic development bill passed the House and is on its way to Governor Matt Blunt's desk.

An emergency clause was added to the bill for the Missouri Quality Jobs cap increase and the New Markets Tax Credit program, meaning those changes will be effective upon the Governor's signature. The remaining parts of the bill will be effective the end of November.

In the final bill, the Quality Jobs program will receive a $28 million boost in annual cap space, the Enhanced Enterprise Zone program will receive a $7 million boost in cap space, the New Jobs Training program will be extended for 10 more years, and several new tax credit programs will be enacted benefiting redevelopment in St. Louis City and beef producers.

Click here for the final version of the bill. The Senate made the following amendments to this language (these changes have been made in the text of the final version of the bill):

SA1 - Griesheimer – Adds an emergency clause for the Missouri Quality Jobs and New Markets Tax Credit programs.


SA1 to SA4
– Griesheimer and
SA4 – Bray – The bill stated persons delinquent in the payment of taxes to DOR or the Dept. of Insurance were not eligible for Quality Jobs benefits. This amendment extends that same provision to other delinquent state fees due other agencies.


SA 9 – Green – Developers in the Land Assemblage Tax Credit program must pay prevailing wage.


SA 13 – Shoemyer – Land Assemblage Tax Credit will be subject to the Tax Credit Accountability Act, meaning it must be reviewed after four years and a report issued to the Joint Committee on Tax Policy. This does not affect the sunset date in 2013.


SA 14
– Shoemyer – Clarifies only “reasonable” demolition and maintenance charges will be allowed as reimbursable expenses under the Land Assemblage Tax Credit.


SA 19 – Griesheimer – Removes Franklin County from provision requiring a TIF to be approved by a countywide TIF commission.


Thanks to all MEDC members for the phone calls, emails and personal contacts to ensure passage of the bill. YOU MADE THE DIFFERENCE!

Ray McCarty
MEDC Legislative Consultant
ray@raymccarty.com

SENATE APPROVES ECONOMIC DEVELOPMENT BILL

August 29 - The Missouri Senate today approved the economic development bill, HB 1, sponsored by Representative Ron Richard and handled in the Senate by Senator John Griesheimer.

The Senate debated for more than 10 hours on the bill and added six amendments, none of which appear to be problematic. The bill must now be approved by the House. The House plans to take the bill up at 10:00 a.m. Thursday.

This was an extraordinary outcome and is the direct result of emails and phone calls from MEDC members.

If approved by the House on Thursday, the bill will be sent to the Governor for signature.

Monday, August 27, 2007

Senator Griesheimer Takes Lead on Economic Develoment Bill in Senate

August 27 - Senator John Griesheimer, Chairman of the Senate Economic Development, Tourism and Local Government Committee, held a hearing today on House Bill 1, sponsored by Rep. Ron Richard.

The bill was approved by the Senate committee with only minor changes and will now be sent to the full Senate for further deliberations. The bill will likely be taken up for passage on Wednesday, August 29.


Thursday, August 23, 2007

House Passes Economic Development Bill - Next Stop: Missouri Senate

August 23 - The Missouri House today gave first round approval to the economic development bill, HB 1. You may find a copy of the bill here.

Although there were many amendments offered, only one amendment was found to be in order and passed by the House, a technical correction in the title of the bill. The emergency clause was NOT adopted in the House. The new caps for Quality Jobs, Enhanced Enterprise Zones and all other provisions of the bill will become effective ninety days after the end of the special legislative session.

Rep. Ron Richard handled the bill expertly to pass the bill in a bipartisan fashion. The bill now moves to the Senate for consideration next week.

Monday, August 20, 2007

Representative Ron Richard Files Economic Development Bill

August 20, 2007 - Representative Ron Richard (R-129, Joplin, pictured at right), Chairman of the Special Committee on Job Creation and Economic Development, today filed House Bill 1, an omnibus economic development bill. The bill contains many of the provisions that were included in House Bill 327, but does not contain the issues to which the Governor objected.

The bill contains the elements listed in the articles below, including the Missouri Quality Jobs and Enhanced Enterprise Zone program increases, extension of the New Jobs Training program, New Markets tax credits, and other programs important to economic developers across the state.

The bill has been set for hearing before the Special Committee on Job Creation and Economic Development for noon on August 21, followed by a hearing in the House Rules Committee, chaired by Rep. Shannon Cooper. The Rules Committee determines whether the floor debate on the bill should be limited to a certain amount of time or unlimited. If approved by both committees, the bill will likely be taken up for debate by the full House on Thursday, August 23. The Senate is expected to take up the bill next week.

If you value the Quality Jobs and Enhanced Enterprise Zone programs, please use the "Legislator Lookup" link at right to find your state senator and state representative and send them a note or give them a call letting them know you need the economic development bill to pass during the Special Session.

The Special Session will likely conclude within two weeks.

Thursday, August 16, 2007

Details of Governor Blunt's Special Session Call

August 16 - Governor Matt Blunt today issued the official call for special session with details of the bill he would like the legislature to pass during the session. For the details, click here.

Friday, August 10, 2007

Back To Work!!! Governor Calls Special Session

Governor Matt Blunt today called lawmakers back into special session beginning August 20, 2007. On the agenda for the special session are economic development incentives and transportation improvements.

Increases in the annual tax credit limits for Quality Jobs (from $12 million to $40 million) and Enhanced Enterprise Zones (from $7 million to $14 million), extension of the New Jobs Training program, New Markets Tax Credits, TIF prohibitions in the East-West Gateway Council of Governments area, beef tax credits, film tax credits, transfer of the Missouri Training and Employment Council to the Workforce Investment Board and several other items are on the agenda. Also included will be a provision allowing most tax credits to be transferable and allowing charitable organizations to qualify for tax incentive programs.

A Land Assemblage Tax Credit, allowing developers in certain disadvantaged areas to receive a tax credit for half of their acquisition costs and all of the interest incurred in the assembly of large tracts of property for development is also to be included in the bill. The Land Assemblage Tax Credit was the subject of a threatened filibuster by several senators during the regular session and it is unclear whether the inclusion of this credit will again cause problems with the economic development package.

It is our hope that whether this tax credit is included in the final bill or not, legislators are able to approve the Quality Jobs, Enhanced Enterprise Zones and New Jobs Training program changes.

The Quality Jobs program was first suggested by the MEDC after the group funded a report showing best practices in economic development and similar programs showed success in other states. MEDC successfully passed the Quality Jobs act with the support of Governor Matt Blunt in 2005 and the program has been wildly successful in encouraging the creation of more than 12,500 new jobs with an average wage of over $46,000 and health insurance benefits. Click here for a report by the Taxpayers Research Institute of Missouri showing the success of the program.

MEDC will work very hard to ensure the Quality Jobs and Enhanced Enterprise Zone programs are extended and will work with our partners on other items in the bill.