Tuesday, August 5, 2008

Eminent Domain Proposition Fails To Obtain Signatures

August 5, 2008 - The Office of Secretary of State reports the supporters of the two eminent domain initiative petitions detailed below failed to obtain enough valid signatures and they will not appear on the ballot in November.

From a press release issued by the Secretary of State's office:

"A Constitutional Amendment to Article I relating to eminent domain had an insufficient number of valid signatures in one of the six required Congressional Districts.

A Constitutional Amendment to Article VI relating to eminent domain had an insufficient number of valid signatures in one of the six required Congressional Districts."

Monday, July 21, 2008

DED Unveils Enhanced Enterprise Zone Map Tool

July 2008 - The Missouri Department of Economic Development has developed county maps that will aid in the designation of enhanced enterprise zones. These maps were the result of discussions between the MEDC and DED during the most recent legislative session, and we are very pleased with the outcome.

The county maps may be found on the Department's website by clicking here or the map at right.

The maps will streamline the cumbersome procedure previously required to establish an enhanced enterprise zone as much of the guesswork in developing an area that qualifies as an EEZ will be eliminated or reduced. Using the county maps, economic developers may see which census block groups would qualify, and which would not, allowing for a more accurate area designation. Of course, the final area must still be coordinated with DED, but the local economic developer now has a great tool for starting the discussion and looking at potentially eligible areas.


Kudos to all the folks at the Missouri Department of Economic Development that made this possible, and in particular to Sallie Hemenway, Ben Jones and John Mehner who originally helped develop the idea.

Friday, June 27, 2008

Eminent Domain Restrictions May Appear on Ballot in November 2008

Two pending initiative petitions may thwart the ability of local governments, utilities, and railroads to acquire property by eminent domain. In fact, zoning and property restrictions of all types could be affected by these constitutional amendments, if they are approved by voters.

The group behind these efforts, Missouri Citizens for Property Rights, bypassed the General Assembly by using a provision that allows citizens to place constitutional amendments on the ballot without approval of the legislature or Governor. The group appears to have successfully obtained enough signatures to place the issue on the ballot; however those signatures must be verified for validity and to be sure the required number of signatures has been obtained in each congressional district. Initiative petitions amending the constitution, like these measures, require the signature of 8% of legal voters in six of Missouri's nine congressional districts.

Following is more information regarding these proposals.

Click here for an analysis prepared by Tom Cunningham for the Missouri Municipal League.

The first proposal's official ballot title, the language that will be seen by voters when they decide the issue, is as follows:

"OFFICIAL BALLOT TITLE AS CERTIFIED BY
SECRETARY OF STATE

Shall the Missouri Constitution be amended to restrict the use of eminent domain by:

  • Allowing only government entities to use eminent domain;
  • Prohibiting its use for private purposes, with certain exceptions for utilities;
  • Requiring that any taking of property be necessary for a public use and that landowners receive just compensation;
  • Requiring that the intended public use be declared at the time of the taking and permitting the original owners to repurchase the property if it is not so used within five years or if the property is offered for sale within 20 years?

The total cost or savings to state or local governmental entities cannot be known. Some state governmental entities estimate no related costs, however, certain state governmental entities may have unknown or indirect costs that may exceed $100,000. Estimated costs to local governmental entities will vary, but could be significant."

The actual initiative petition language of "Proposition 1" as described in the document may be found here.

The second proposal's official ballot title, as certified by the Secretary of State, is as follows:

"OFFICIAL BALLOT TITLE AS CERTIFIED BY
SECRETARY OF STATE

Shall the Missouri Constitution be amended to change the power of the General Assembly and constitutionally chartered cities or counties to:

  • Prohibit the use of eminent domain to acquire and resell property found to be blighted, substandard or unsanitary for the purpose of clearance, redevelopment or rehabilitation; and
  • Allow them to require owners of property found to be a public nuisance to abate or clean up the nuisance and, if the property owner fails to do so in a reasonable time, allow the local government to pay for the abatement and impose a lien to recover the cost?

The total cost or savings to state or local governmental entities cannot be known. Some state governmental entities estimate no related costs, however, certain state governmental entities may have unknown or indirect costs. Estimated costs to local governmental entities will vary, but could be significant."

The actual initiative petition language of "Proposition 2" as described in the document may be found here.

Wednesday, June 11, 2008

Governor Blunt Signs Omnibus Economic Development Bill

June 11, 2008 - Gov. Matt Blunt today signed legislation that will benefit Missouri workers and employers by enhancing entrepreneurship and economic growth opportunities in Missouri. The governor signed the legislation at Quik 'n Tasty in Belton, highlighting the success of his Quality Jobs initiative.

The sponsor of the legislation, Rep. David Pearce (R-121, Warrensburg), is pictured above with MEDC Immediate Past President Lisa Franklin (also of Aquila), and Craig Arnold of the Cass County Corporation of Economic Development. The picture below shows Rep. Pearce with Tracy Brantner, Executive Director of the Johnson County Economic Development Corporation.

"As governor, I have worked to cultivate economic growth and make Missouri a state of opportunity by enacting pro-jobs, pro-growth initiatives. By changing our states business climate, we have encouraged Missouri entrepreneurs, small businesses, and large employers to create new jobs in our state for Missouri workers," Gov. Blunt said. "With the dedication of Missouri's working men and women, together we are letting businesses know that Missouri is open for business. Our changes are working and Missouri's families are benefiting from sustained economic growth at the state level."

"This bill expands and strengthens Governor Blunt's Quality Jobs Act and proves once again that Missouri is a state that does much more than just talk about job creation" Rep. David Pearce said. "The bipartisan effort to pass this bill gives Missouri employers the incentives to expand and create good paying, long term jobs. I applaud Governor Blunt for creating the Quality Jobs Act and for signing this bill."

MEDC thanks Governor Blunt and the Department of Economic Development for giving our economic developers across the state the tools the
y need to continue to make Missouri a competitor for quality jobs.

Monday, June 2, 2008

Governor Signed Mega Project Legislation

On May 22, Governor Blunt signed the mega project legislation. HB 2393 would provide the Department of Economic Development (DED) with tools they need to try to land an aircraft manufacturer deal for the Kansas City Airport area. Discussions are ongoing between DED and Canadian-based Bombardier regarding such a facility.

The mega projects legislation allows tax incentives to be issued to a company that must be repaid, the net effect of which is a low interest or no interest loan, if the company provides certain high levels of employment at high salaries and makes a certain infrastructure investment in the facility. The incentives would be repaid based on a repayment schedule finally determined by DED.

You may find additional details, including the actual text of the bill, here.

Friday, May 30, 2008

Economic Development Bill Details

Here are links to the economic development bills that were Truly Agreed to and Finally Passed by the Missouri Legislature. As of yesterday, both of these bills have now been signed by the House Speaker and President of the Senate and have been delivered to the Governor. The Governor has until July 14, 2008, to either sign or veto the bills. If the Governor does not veto the bills by that date, they will automatically become law.

These links provide summaries of the bills and links to the full text of the final language:

House Bill 2058, sponsored by Representative David Pearce

Senate Bill 718, sponsored by Senator Harry Kennedy

Monday, May 19, 2008

2008 Session Complete

For those of you wanting to know if a particular bill passed or the contents of a particular bill, I have provided a link at right to "House TAFP Bill Summaries 2008" that will give you a summary of the bills that were passed by the legislature.

I will be summarizing the key bills of interest at our Spring Conference June 4-6. Look forward to seeing you at the Spring Conference.

Friday, May 16, 2008

ECONOMIC DEVELOPMENT BILLS PASSED

Friday, May 16: Thanks to the strong leadership of Rep. David Pearce and Sen. Harry Kennedy, and the support of many others, we are pleased to announce BOTH omnibus economic development bills passed the legislature and are on their way to the Governor.

Combined with the previously passed mega projects legislation, the Missouri Economic Development Council had an extremely successful legislative session. Despite the fact this was an election year and expectations were initially very low, we were able to accomplish an increase in the Quality Jobs tax credit limit of $20 million from $40 million to $60 million, an increase in the Enhanced Enterprise Zones tax credit limit of $10 million from $14 million to $24 million, made permanent an increase in the Development Tax Credit at $6 million, and several other items.

We will sift through the language of the finally passed bills and issue a more thorough report in the very near future. Until then, please thank your legislators for their votes of support for HB 2058 and SB 718. I would also like to thank you for your participation in the legislative process as it was your phone calls, emails and personal contacts that helped us get this legislation passed.

Ray McCarty
MEDC Legislative Consultant

Monday, May 12, 2008

URGENT ACTION NEEDED!!!

PLEASE CALL YOUR SENATOR AND REPRESENTATIVE TODAY! Use the "Legislator Lookup" at right to find your legislators and call today.

We are in danger of the economic development bills not passing if you fail to make calls. This means our ability to use the Quality Jobs and Enhanced Enterprise Zone programs is in danger. Please make the call today and ask them to pass HB 2058 (Rep. David Pearce) or SB 718 (Sen. Harry Kennedy). It is crucial you make your call as soon as possible because the session adjourns on Friday.

Also, please call ALL of the following legislative leaders of the House and Senate:

Speaker of the House Rod Jetton 573-751-5912
President Pro Tem Mike Gibbons 573-751-2853
House Speaker Pro Tem Bryan Pratt 573-751-8636
Senate Majority Floor Leader Charlie Shields 573-751-9476
House Majority Floor Leader Steve Tilley 573-751-1488

The fate of the economic development bill firmly rests in our ability to make this bill a priority for the legislators and we need your help.

Thank you for all you do to advance economic development in your communities and in the state!

FINAL WEEK!

May 12, 2008 - The Missouri legislature begins its final week today and we have work to do.

The mega projects legislation has been passed and awaits approval by the Governor. He is expected to sign the bill. Here is a link to the final printed version of the bill.


Our focus turns to the Quality Jobs and Enhanced Enterprise Zone legislation that contains many of our economic development programs. Although one senator said the bill was caught in a standoff between the House and Senate, the House moved the Senate bill in the days following that declaration and both bills remain viable vehicles. SB 718 is ready for House floor debate and HB 2058 has a hearing again today in the Governmental Accountability and Fiscal Oversight Committee in the Senate. That committee is waiting on figures that show the fiscal impact of all the bills passed this session. Senators wanted that information before deciding what to do with our bill. I believe all involved know that the Quality Jobs and Enhanced Enterprise Zone legislation must pass, along with the other core issues (Grow Me Initiative, Development Tax Credits, etc.), but there were many other items added by another Senate committee to our bill. It is possible many of these items could be removed in a floor substitute for the bill, reducing the fiscal impact.

Developments on these bills will happen quickly and we may not have time to update the blog so please be patient. Contact your senators and representatives and let them know you need either SB 718 or HB 2058 to be sent to the Governor for his signature. You may find your Representative and Senator by using the lookup provided at the right.

Wednesday, May 7, 2008

Mega Projects Bill Passed by the Legislature

May 7, 2008 - Thanks to the strong leadership of Senate Majority Floor Leader Charlie Shields, House Speaker Designee Representative Ron Richard and Representative David Pearce, the Missouri House gave final approval to HB 2393, sending the mega projects legislation to Governor Blunt for signature.

The bill was fine tuned in the Senate to ensure benefit will accrue to Missouri before any benefit is given to mega projects. Legislators and the Department of Economic Development are currently working hard to attract a Bombardier facility to the Kansas City airport area and this bill is a key component of that plan.

The legislation was approved in a strong bipartisan effort and the MEDC thanks the legislators and the Department of Economic Development for their hard work on the bill. MEDC was pleased to support the concepts in the bill.

Friday, May 2, 2008

Mega Projects Legislation Passes Missouri Senate

May 1, 2008 - The Missouri Senate passed HB 2393, a bill that would provide tax benefits as jobs are created at a mega project. The terms of the legislation have changed since first introduced to satisfy the concerns of some that felt the taxpayers' interests were not adequately protected in the initial legislation. The bill is sponsored by Rep. Ron Richard, Speaker Designee for the 2009 session, and was handled in the Senate by Senate Majority Floor Leader Charlie Shields.

The new language may be found here. The bill must now be accepted by the Missouri House or sent to conference for further deliberations. We expect the Missouri House to take the measure up and pass it before the end of session.

The bill provides a framework to attract a major employer to Missouri, one that would provide more than 1,000 new jobs and invest more than $300 million in infrastructure in Missouri. The MEDC has supported establishing such a program and is pleased the Missouri Senate has advanced this bill.

Also on Thursday, the Senate Committee on Economic Development, Tourism and Local Government approved substitute language for HB 2058, one of the omnibus economic development bills. Senators added several items to the legislation, as expected. The final bill will likely be negotiated by a conference committee. HB 2058 is sponsored by Represenatative David Pearce and will be handled in the Senate by Senator Harry Kennedy.

And the House Special Committee on Job Creation and Economic Development again approved SB 718, this time without the mega projects language. The bill will now go to the Rules Committee and then to the full House for consideration. This bill is sponsored by Senator Kennedy and will be handled in the House by Representative Pearce.

Both HB 2058 and SB 718 would provide increases in the money available for Missouri Quality Jobs, Enhanced Enterprise Zones, Grow Me State Initiative, and other legislative priorities of the MEDC. We will keep you updated as we navigate the final two weeks of the legislative session.

Wednesday, April 30, 2008

Economic Development Bill Sent Back To Committee!

April 30, 2008 - In a shocking move, the House Rules Committee returned SB 718, the bill described below, to the House committee to remove the Bombardier mega projects language. Members of the committee, including House Majority Floor Leader Steve Tilley, indicated that every economic development bill should not have the Bombardier language on it and the committee agreed.

The bill will be returned to the House Special Committee on Job Creation and Economic Development for further action.

Monday, April 28, 2008

House Committee Approves Senate Economic Development Bill

The House Special Committee on Job Creation and Economic Development, chaired by Speaker Designee Representative Ron Richard, approved SB 718 with a few additions. The bill is sponsored by Senator Harry Kennedy.

The bill, which you may access by clicking here, would accomplish many of the economic development proposals this session. Click here for a detailed summary prepared by House Research Analyst Alice Hurley.

On that note, the author would like to thank the crack staff at House Research for their hard work this legislative session. I have the opportunity in my profession to interact with several of the House Research staff through work with various committees and they consistently provide excellent service to their committees, legislators and the public. They work long, hard hours with little thanks. The House Research division is led by Bill Tucker and his leadership shines through the work of his staff, including the ones I have the most contact with: Alice Hurley, Karla Strobel, and Roland Tackett. Thanks to all of you, and the rest of the House Research Staff, for another great session!

You may also access another summary, prepared by Senate Research Analyst Jason Zamkus, who also deserves thanks for a great job this session by clicking here.

Ray McCarty

Wednesday, April 23, 2008

MEDC Supports Bill to Protect Intellectual Property Rights

April 23, 2008 - The House Special Committee on Small Business today heard and passed HB 2555, a bill sponsored by Representative David Pearce that would establish an Entrepreneurial Development Council and fund. A companion bill was filed in the Senate by Senator Frank Barnitz.

The purpose of the legislation is to provide a mechanism for entrepreneurs of all sizes to join together to protect their intellectual property interests such as copyrights, patents and trademarks. Witnesses cited examples where small entrepreneurs were cheated out of the benefit of their inventions by larger interests with the financial ability to support lengthy litigation processes, resulting in small business failure and loss of good ideas born in Missouri to interests in other states and countries. In one case, even the Federal government had allegedly infringed on a patent on a defense article, according to one witness.

The bill would establish a council appointed by the Governor and establish a fund that could accept appropriations, gifts, and registration fees for entrepreneurs. Entrepreneurs wishing to avail themselves of the protection afforded by the Council would need to register and pay a registration fee. The fund would be used to help defend intellectual property of registered entrepreneurs and would be allowed to make low interest loans and grants to assist those registered with marketing and other start up costs.

The bill was supported by several witnesses including Ben Jones, President-elect of the MEDC and President of America's Heartland Economic Partnership, Ray McCarty representing Associated Industries of Missouri and the Missouri Economic Development Council, and several entrepreneurs and professors. There was no opposition expressed to the Committee and the bill was approved on a unanimous vote.

Tuesday, April 22, 2008

MEDC Supports Mega Projects Bill

April 18, 2008 - The Missouri Economic Development Council has joined other economic development organizations and business representatives in supporting SB 1234 and HB 2393. The legislation would create an incentive program to attract large scale economic development projects that create more than 1,000 new jobs and result in more than $300 million in infrastructure investment over 8 years.

The incentive is based on a percentage of new payroll actually paid to employees and is capped at a maximum of $40 million per year. In order to receive $40 million in tax credits, the employer must be adding new annual payroll of $50 million in the first three years, $66.7 million in the fourth and fifth years, $80 million in the sixth and seventh years, $133.3 million in the eighth and ninth years, and $160 million in the tenth and subsequent years. The tax credits issued under the bill must be repaid to the state based on a plan developed between the credit recipient and the Missouri Department of Economic Development.

MEDC has prepared a letter of support which may be accessed here.
CLICK HERE FOR A COPY OF THE TEXT OF THE MOST CURRENT VERSION OF THE BILL (4-22-08)

Monday, April 14, 2008

Rep. Pearce Leads House Passage of Economic Development Bill

Thanks to the strong leadership of Representative David Pearce (R-121, Warrensburg), the omnibus economic development bill, HB 2058, passed the Missouri House today on a strong bipartisan vote. The voice vote approving the bill was nearly unanimous.

The bill was amended by Rep. Pearce to remove the Missouri Quality Jobs funding limitation entirely, changed the administration of the Angel Investment Tax Credit to DED from the Missouri Technology Corporation and added a property tax provision from Rep. Tim Flook (R-34, Liberty) that lowers real property taxes on land around the KC airport that may potentially be used by a large new development. This was the only amendment to the bill and the amendment was also overwhelmingly approved on a roll-call vote by a vote of 122-18.

UPDATE 4-23-08: The House bill passed the House and was referred to the Senate Economic Development Committee. The Senate bill has passed the Senate, was referred to the House Special Committee on Job Creation and Economic Development and will have a hearing 4-24-08. The cap on Quality Jobs is $60 million in the Senate version.

Saturday, March 29, 2008

MEDC Supports Mega-Project Legislation

Missouri legislators are working to give state and local economic developers tools to help attract large employer projects to Missouri.

A bill sponsored in the House by Rep. Ron Richard and in the Senate by Senator Charlie Shields and Senator Luann Ridgeway, would provide tax credits to such projects, beginning July 1, 2010.
The bi-partisan legislation was supported by many economic development and employer groups in the state, including the Missouri Economic Development Council, and there was no opposition to the House or the Senate bills expressed in the hearings.

The bills define a "mega-project" as any manufacturing or assembling facility, approved by the Department of Economic Development (DED) for construction and operation within an enhanced enterprise zone, which satisfies the following:

  1. The new capital investment is projected to exceed $300 million over a period of eight years from the date of approval by the department;
  2. The number of new jobs is projected to exceed 1,000 over a period of eight years beginning on the date of approval by the department;
  3. The average wage of new jobs to be created shall exceed the county average wage;
  4. The taxpayer shall offer health insurance to all new jobs and pay at least 50% of such insurance premiums;
  5. An acceptable plan of repayment, to the state, of the tax credits provided for the mega-project has been provided by the taxpayer;
  6. The taxpayer's project is financially sound and the taxpayer has adequately demonstrated an ability to successfully undertake and complete the mega-project;
  7. The taxpayer's plan of repayment, to the state, of the amount of tax credits provided is reasonable and sound;
  8. The taxpayer's mega-project will create new jobs that were not jobs previously performed by employees of the taxpayer or a related taxpayer in Missouri;
  9. Awarding the credit will result in an overall positive net fiscal impact to the state;
  10. Local taxing entities are providing a significant level of incentives for the mega-project relative to the projected new local tax revenues created by the mega-project;
  11. There is at least one other state or foreign country that the taxpayer verifies is being considered for the project, and receiving mega-project tax credits is a major factor in the taxpayer's decision to go forward with the project and not receiving the credit will result in the applicant not creating new jobs in Missouri;
  12. The mega-project will be located in an enhanced enterprise zone which constitutes an economic or social liability and a detriment to the public health, safety, morals, or welfare in its present condition and use;
  13. The completion of the mega-project will serve an essential public municipal purpose by creating a substantial number of new jobs for citizens, increasing their purchasing power, improving their living conditions, and relieving the demand for unemployment and welfare assistance thereby promoting the economic development of the enhanced enterprise zone, the municipality, and the state; and
  14. The creation of new jobs will assist the state in providing the services needed to protect the health, safety, and social and economic well-being of the citizens of the state.
If approved by DED, the employer in the mega project would be allowed up to $40 million in income tax credits. The total amount of credits that may be issued annually is also $40 million. The maximum percentage of actual new payroll of the mega-project employer that may be approved is:
  • 80% for the first three years that tax credits will be issued for the mega-project;
  • 60% for the next two subsequent years;
  • 50% for the next two subsequent years;
  • 30% for the next two subsequent years; and
  • 25% for all subsequent years.
Upon approval of an application by the department, tax credits shall be issued annually for a period not to exceed 22 years from the commencement of commercial operations of the mega-project. This 22-year period may extend beyond the expiration of the enhanced enterprise zone. The certificates of tax credit may be transferred, sold, or assigned but may not be carried forward past the year of issuance. Tax credits authorized by this section may not be pledged or used to secure any bonds or other indebtedness issued by the state or any political subdivision of the state. Once such tax credits have been issued, nothing shall prohibit the owner of the tax credits from pledging the tax credits to any lender or other third-party.

The mega-project employer must provide an annual report to the DED showing the number of new jobs located at the mega-project, the new annual payroll of such new jobs, and such other information as may be required by the department to document the basis for benefits.

This precedent-setting legislation was the result of some very hard work by the DED and Kansas City area economic development professionals as they continue to work on a deal to attract a large aircraft manufacturer from Canada to the Kansas City area. Our thanks to these economic development professionals for developing a creative tool that will provide a template for future mega-project attraction in Missouri.

Monday, March 17, 2008

Telecommunications and Economic Development

The Legislature is on Spring Break this week, meaning we have a little break while we try to work out the details of the economic development bill.

Those of you attending the MEDC conference should have received a DVD produced and distributed by the Missouri Telecommunications Industry Association (MTIA). If you missed it for some reason, here is a link to the video online.

The video emphasizes the connection between telecommunication infrastructure and our core mission of economic development. In fact, the video points out that telecommunications infrastructure and access to the internet is just as important as adequate utilities, streets, sewer, and other infrastructure as businesses decide where to locate and create jobs.

Check out the video and distribute it to those that need to see that telecommunications is important to all our communities if we want to attract and retain quality employers in the state.

Wednesday, March 12, 2008

Missouri Right To Life Letter May Endanger Economic Development Bill

March 12, 2008 - A letter circulated by Missouri Right to Life (MRL) in opposition to one part of the economic development bill threatens to endanger the swift passage of the bill. Click here for a copy of the letter. If you are in favor of an increase in the Quality Jobs and Enhanced Enterprise Zone caps and are supportive of the other provisions of the bill, including the Angel Investment Tax Credit, you need to let your legislators know as soon as possible.

The MRL letter mentions various provisions of the Angel Investment Tax Credit that is part of the Grow Me State Initiative and included in HB 2058. The MRL letter states they oppose the bill because the Missouri Technology Corporation is in charge of the tax credit and they imply the tax credit may be used for Somatic Cell Nuclear Transfer cloning. Nothing in the bill promotes or references cloning. Though misguided, this strategy has been effective in derailing legislation totally unrelated to cloning. We do not want this to happen to the economic development bill.

The Missouri Right to Life's recent legislative scorecard has been the topic of public discussion in the Senate this session. The scorecard showed many legislators that are noted as pro-choice on the NARAL website as voting more in favor of pro-life legislation than other legislators that are considered by NARAL to be pro-life.

Monday, March 10, 2008

House Takes Up Economic Development Bill - Briefly

March 10, 2008 - The Missouri House today took up the House omnibus economic development bill, HB 2058, sponsored by Rep. David Pearce (R-121, Warrensburg). After explaining the bill, Rep. Pearce laid the bill over. It will be taken up another day, probably soon.

Check back here often for updates and please let your representatives know how you feel about HB 2058 that boosts the Quality Jobs program limit by $20 million, increases the Enhanced Enterprise Zone program limit by $10 million, increases the Development Tax Credit from $4 million to $6 million, extends the Quality Jobs retention program to 2013, and various other changes (see earlier posts below for more information).

The Senate bill is awaiting referral to a House committee.

Thursday, February 21, 2008

SENATE PASSES ECONOMIC DEVELOPMENT BILL!

February 21, 2008 - The Missouri Senate today gave final approval to SB 718, an omnibus economic development package sponsored by Senator Harry Kennedy (D-1, St. Louis, pictured at left). The bill will now be sent to the Missouri House for further deliberations.

Senator Kennedy shepherded the legislation through the Missouri Senate and obtained passage after just a few days of debate. The bill is still a very conservative, but effective, package of incentive increases for proven programs that should have a very positive impact on Missouri's ability to compete in the increasingly challenging economic times that may lie ahead.

The Missouri Quality Jobs program would be increased by $20 million and the Enhanced Enterprize Zone increased by $10 million under the Senate plan. A House committee debated and approved similar legislation in Committee earlier this week.

The MEDC thanks Senator Kennedy for his strong leadership in helping create and preserve true quality jobs in Missouri.

Wednesday, February 20, 2008

House Committee Approves Economic Development Package













February 20, 2008 - The House Special Committee on Job Creation and Economic Development, chaired by Speaker-elect Rep. Ron Richard (R-129, Joplin, pictured at left), today heard testimony and approved an economic development package.

The bill, sponsored by Rep. David Pearce (R-121, Warrensburg, pictured above right), increases the Quality Jobs program cap by $20 million, increases the Enhanced Enterprise Zone program cap by $10 million, and makes various other changes as noted below. The Committee heard testimony from many MEDC members in support of the legislation, many of whom had traveled great distances to express their support for the bill.

We thank the Chairman and Rep. Pearce for their leadership in passing the legislation. The bill will now be reviewed by the House Rules Committee and then submitted for consideration by the full Missouri House of Representatives.

A similar bill, sponsored by Sen. Harry Kennedy (D-1, St. Louis), received first round approval in the Senate earlier this week and today was approved by the Senate Governmental Accountability and Fiscal Oversight Committee chaired by Sen. Jack Goodman (R-29, Mt. Vernon). The bill will now receive a final vote in the Senate before moving to the House.

Monday, February 18, 2008

Senate Gives First Round Approval to Economic Development Bill!

February 18, 2008 - The Missouri Senate today gave first round approval to SB 718, an omnibus economic development package sponsored by Senator Harry Kennedy, (D-1, St. Louis). The bill was perfected with only three additional amendments (see articles below for additional details on previous amendments).

Today, Senate Amendment 4, an amendment that would have required a percentage of innovation center money to be spent in rural areas was withdrawn by its sponsor, Sen. Kevin Engler (R-3, Farmington). The Senate adopted Senate Amendment 5, offered by Sen. Tom Dempsey (R-23, St. Charles), that requires additional information from businesses residing in incubation centers. The Senate also adopted an amendment providing for the recovery of tax credits from companies that purposefully and directly hire illegal aliens (SSA1 Shields to SA6 Green). And an amendment allowing new power technology companies (solar, wind, etc.) to be treated as "technology" projects for the purposes of the Missouri Quality Jobs Act was adopted (SA 7 Lager).

The bill was then "perfected." The bill will require one final Senate vote before it travels to the House for further deliberation. Our compliments to Sen. Kennedy and Senate leadership for successfully making this bill one of the first bills passed in the Senate this session.

The House economic development bill, HB 2058 sponsored by Rep. David Pearce (R-121, Warrensburg) will be heard on Wednesday, February 20, at 8:00 a.m. in House Hearing Room 7.

Thursday, February 14, 2008

Economic Development Bills Moving

February 14, 2008 - The Senate yesterday again took up SB 718, the omnibus economic development package sponsored by Sen. Harry Kennedy (D-1, St. Louis).

An amendment was pending on the bill that would have created letter ruling authority for the Department of Economic Development regarding the New Markets Tax Credit program. In action yesterday, that amendment was withdrawn and replaced with a new amendment that was adopted that accomplishes the same thing but alleviates concerns expressed by some senators regarding the confidentiality of such rulings. An amendment to that amendment that would have allowed such rulings to be revoked by the DED failed.

A push to remove the increase in the Small Business Incubator Tax Credit was withdrawn after several senators that had threatened to delay the bill withdrew their objections. An amendment was proposed to allocate at least 25% of the Incubator Tax Credit to rural areas as defined in the Quality Jobs Act. That amendment is pending as the bill was tabled for debate in the near future.

In the House, HB 2058, sponsored by Rep. David Pearce (R-121, Warrensburg), was referred to the House Special Committee on Job Creation and Economic Development and a hearing is expected next Wednesday, February 20, 2008.

Tuesday, February 12, 2008

Senate Economic Development Bill Debated

February 12, 2008 - The Missouri Senate today took up, but did not pass, SB 718, an economic development bill sponsored by Senator Harry Kennedy (D-1, St. Louis).

Debate focused on an amendment to the bill offered by Senator Scott Rupp (R-2, St. Charles) that would establish a letter ruling procedure for the New Markets Tax Credit program. Letter rulings would be issued by the Department of Economic Development based on particular facts submitted by the applicant. The ruling would determine whether a particular investor and investment would qualify for tax credits under the New Markets Tax Credit program. Currently, the Department of Revenue uses a similar process to rule on tax matters, but current law does not allow this process for economic development matters.

The bill was laid on the Informal Calendar so it may be further debated in future Senate sessions, possibly as early as Wednesday, February 13, 2008. The bill would increase the Quality Jobs program cap from $40 million to $60 million per year and the Enhanced Enterprise Zones program cap would increase from $14 million to $24 million. The bill would also extend the job retention tax credit portion of Quality Jobs to 2013. The job retention part of that program expired August 30, 2007.


If you are in favor of this bill, you should contact your Senator and let him/her know you support the bill.

Saturday, February 9, 2008

Rep. Pearce Files MEDC Priority Economic Development Bill

February 7, 2008 - Rep. David Pearce (R-121, Warrensburg) has filed the first of two expected omnibus economic development bills in the Missouri House.

He was joined by 87 co-sponsors of both parties in filing HB 2058, making a truly bipartisan effort. The Chairman of the House Special Committee on Job Creation and Economic Development, Rep. Ron Richard (R-129, Joplin), and every member of that committee were included among the co-sponsors of the bill.

The bill contains the following provisions:

  1. Increase in the Neighborhood Assistance Program tax credit from $4 million to $6 million;
  2. Increase in Enhanced Enterprise Zone tax credits from $14 million to $24 million;
  3. Codification of existing sales tax treatment of sales of certain items by defense contractors to foreign governments;
  4. "Grow Me State" angel investment tax credit of 30-40% of first $500,000 invested in a qualifying Missouri business, with a limit of $50,000 per investor per business and $100,000 per investor per year and an annual cap of $5 million for the entire program;
  5. Increase in the annual cap on tax credits authorized for Small Business Incubators program from $500,000 to $2 million;
  6. Increase in cap on Quality Jobs program from $40 million to $60 million;
  7. Extension of the retention credit in Quality Jobs to August 30, 2013.

The bill is expected to be referred to committee next week and heard very soon. We will keep you posted of the progress of this legislation.

The bill is the first of two anticipated omnibus economic development bills that are underway. Another bill by Rep. Tim Flook (R-34, Liberty) is being prepared now. We are working closely with sponsors of both of these pieces of legislation.

Friday, February 1, 2008

Senator Harry Kennedy Files Economic Development Bill in Senate

Senator Harry Kennedy (D-1) has obtained approval from the Senate Committee on Economic Development, Tourism and Local Government of his proposal to extend the Quality Jobs retention program to August 30, 2013. That credit expired August 30, 2007.

The Committee Substitute also contains provisions that would increase the annual cap on the Enhanced Enterprise Zone program from $14 million to $24 million and increase the annual cap on the Quality Jobs program from $40 million to $60 million.
Senator Kennedy's bill is the first broad economic development bill passed by the committee this session.

MEDC thanks Senator Kennedy for his leadership in carrying this legislation and we look forward to working with him as the bill progresses through the legislature.

Senator Kennedy's bill is SB 718.

We are also continuing to work with House leaders as we assemble the economic development packages for this session.

Wednesday, January 16, 2008

MEDCode...I Mean "Missouri Voluntary Developer Agreement Law" Filed in House

January 16, 2008 - Representative David Pearce (R-121, Warrensburg) today filed HB 1660 - MEDC priority legislation that will codify the ability of taxing districts to enter into voluntary developer agreements for economic development projects.

Formerly dubbed the "Missouri Economic Development Code", the bill was the subject of a mandated review by the Joint Committee on Tax Policy which had earlier given its approval for further exploration of the concept. Actually, the bill allows local taxing districts to continue to enter into voluntary agreements with developers to dedicate a portion of new tax proceeds from new developments to help finance the infrastructure necessary to support those developments. The bill only allows the proceeds to be used for publicly owned infrastructure improvements, the amount of tax money dedicated for use is decided upon by each local taxing entity, no taxing entity can be forced to participate, and the bill does not supercede other TIF reform that was recently passed by the General Assembly.

The bill was originally filed two years ago to ensure TIF reform did not accidentally prevent local governments from voluntarily entering into such agreements with developers. The language was stripped from a bill last session and replaced with language requiring a study of the proposal by the Joint Committee on Tax Policy.

The Voluntary Developer Agreement Law is the top legislative priority of the MEDC for the 2008 Legislative Session. If you have any questions regarding the bill, please send them to ray@raymccarty.com.

Thursday, January 3, 2008

2008 Bills of Interest Now Available

January 3, 2008 - The 2008 Legislative Session will begin January 9, 2008. Lawmakers are already able to file bills and we have been reviewing them as they are filed.

As we did last year, you will find the updated list of bills we are tracking by clicking on the link at the upper right side of this screen entitled, "MEDC Bills of Interest". We will update the list frequently as new bills are added and as new actions occur to the bills on the list.

We expect a large number of bills to be filed as the session opens, including several MEDC legislative priorities, so stay tuned!