Missouri Economic Development Council (MEDC) Legislative Update

Economic Development Bill Passes in Final Hours of 2009 Session

2009-05-16T10:37:00.002-05:00

JEFFERSON CITY - "Against All Odds" would be a perfect theme song playing in the heads of economic development professionals in the wee hours of Friday morning as the Senate seemed no closer to passing an economic development bill than in February when the bill was originally passed by the House and sent to the Senate.

But disappointment turned to surprise as the Senate, in a rare move, gathered all members of both parties for a caucus meeting before the regular session on the last day of the session. Senators emerged from the caucus meeting with an apparent agreement, went immediately to the floor, adopted the agreed upon amendments, and passed House Bill 191!

The bill did not contain all economic development proposals that had been proposed and adopted by the House. Nor did it contain the caps, limitations, or appropriations language that many in the economic development community feared would stifle the usefulness of our economic development portfolio. The Blue Springs public private partnership was not included, nor were several issues that were critical to expansion projects that had been planned by some private companies. But for a session that looked like it would end without any economic development legislation passing at all, the bill is viewed by many as at least a tempered victory.

The actual language has not yet been posted on the House website, but I have a copy and will try to scan it if it is not available Monday morning. HERE IS A SUMMARY OF THE ITEMS THAT WERE CONTAINED IN THE FINAL VERSION OF THE BILL. Please note the final version of the actual language will be titled "Truly Agreed and Finally Passed" and it is different than the "Senate Committee Substitute" that is currently available.

Associated Industries of Missouri, an MEDC member, was proud to have supported all the economic development proposals this year and we are happy we were able to redeem at least the projects that were included in the final version.

Ray McCarty
President
Associated Industries of Missouri

Eminent Domain Proposition Fails To Obtain Signatures

2008-08-05T22:46:00.002-05:00

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."

DED Unveils Enhanced Enterprise Zone Map Tool

2008-07-21T10:39:00.005-05:00

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.

Eminent Domain Restrictions May Appear on Ballot in November 2008

2008-06-27T15:10:00.005-05:00

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.

Governor Blunt Signs Omnibus Economic Development Bill

2008-06-11T16:56:00.008-05:00

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 they need to continue to make Missouri a competitor for quality jobs.

Governor Signed Mega Project Legislation

2008-06-02T10:11:00.002-05:00

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.

Economic Development Bill Details

2008-05-30T07:02:00.003-05:00

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

2008 Session Complete

2008-05-19T17:43:00.003-05:00

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.

ECONOMIC DEVELOPMENT BILLS PASSED

2008-05-16T17:53:00.002-05:00

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

URGENT ACTION NEEDED!!!

2008-05-12T19:57:00.003-05:00

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!

2008-05-12T07:59:00.004-05:00

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.

Mega Projects Bill Passed by the Legislature

2008-05-07T10:35:00.012-05:00

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.

Here is a link to the final printed version of the bill.

Mega Projects Legislation Passes Missouri Senate

2008-05-02T16:58:00.004-05:00

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.

Economic Development Bill Sent Back To Committee!

2008-04-30T11:26:00.003-05:00

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.

House Committee Approves Senate Economic Development Bill

2008-04-28T19:04:00.005-05:00

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

MEDC Supports Bill to Protect Intellectual Property Rights

2008-04-23T10:16:00.004-05:00

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.

MEDC Supports Mega Projects Bill

2008-04-22T18:53:00.002-05:00

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)

Rep. Pearce Leads House Passage of Economic Development Bill

2008-04-14T17:19:00.004-05:00

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.

MEDC Supports Mega-Project Legislation

2008-03-29T22:56:00.012-06:00

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:

The new capital investment is projected to exceed $300 million over a period of eight years from the date of approval by the department;
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;
The average wage of new jobs to be created shall exceed the county average wage;
The taxpayer shall offer health insurance to all new jobs and pay at least 50% of such insurance premiums;
An acceptable plan of repayment, to the state, of the tax credits provided for the mega-project has been provided by the taxpayer;
The taxpayer's project is financially sound and the taxpayer has adequately demonstrated an ability to successfully undertake and complete the mega-project;
The taxpayer's plan of repayment, to the state, of the amount of tax credits provided is reasonable and sound;
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;
Awarding the credit will result in an overall positive net fiscal impact to the state;
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;
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;
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;
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
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.

Telecommunications and Economic Development

2008-03-17T17:14:00.002-06:00

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.

Missouri Right To Life Letter May Endanger Economic Development Bill

2008-03-12T16:03:00.005-06:00

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.

House Takes Up Economic Development Bill - Briefly

2008-03-10T17:53:00.003-06:00

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.

SENATE PASSES ECONOMIC DEVELOPMENT BILL!

2008-02-21T17:29:00.003-06:00

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.

House Committee Approves Economic Development Package

2008-02-20T16:38:00.003-06:00

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.

Senate Gives First Round Approval to Economic Development Bill!

2008-02-18T20:00:00.004-06:00

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.

Economic Development Bills Moving

2008-02-14T18:50:00.003-06:00

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.

Senate Economic Development Bill Debated

2008-02-12T19:16:00.001-06:00

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.

Rep. Pearce Files MEDC Priority Economic Development Bill

2008-02-09T11:24:00.001-06:00

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:

Increase in the Neighborhood Assistance Program tax credit from $4 million to $6 million;
Increase in Enhanced Enterprise Zone tax credits from $14 million to $24 million;
Codification of existing sales tax treatment of sales of certain items by defense contractors to foreign governments;
"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;
Increase in the annual cap on tax credits authorized for Small Business Incubators program from $500,000 to $2 million;
Increase in cap on Quality Jobs program from $40 million to $60 million;
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.

Senator Harry Kennedy Files Economic Development Bill in Senate

2008-02-01T16:03:00.002-06:00

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.

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

2008-01-16T23:45:00.001-06:00

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.

2008 Bills of Interest Now Available

2008-01-03T08:14:00.000-06:00

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!

Committee Approves MEDC Priority for Further Discussion

2007-12-06T14:49:00.000-06:00

December 5, 2007 - The Joint Committee on Tax Policy has completed their review of the feasibility of one of MEDC's priority legislative proposals.

Senator Brad Lager (R-12, Maryville) made the motion for the committee to approve further discussion and review of the proposal by the Missouri General Assembly, which was approved by a voice vote of the committee. Two committee members made suggestions for improvements to the legislation which will be made:

The name will change from the Missouri Economic Development Code to the Missouri Voluntary Developer Agreement Law to more accurately reflect the purpose of the law; and,
A section stating the new law would override other statutes will be removed.

The 2008 Legislative Session begins January 9.

MEDC 2008 Legislative Priorities

2007-11-29T08:49:00.000-06:00

CLICK HERE FOR PRINTABLE PDF VERSION

1. Missouri Voluntary Developer Agreement Law – Codifying the existing practice of taxing districts voluntarily applying a portion of new tax revenues resulting from a project to help provide infrastructure in support of the project;

2. Small Business & Entrepreneurial Growth Act – Providing a mechanism allowing small employers that are adding employees to retain withholding tax on new employees, partially offsetting the increased costs imposed by government when employees are added (workers’ compensation, unemployment insurance, etc.) ;

3. Regional Economic Development Districts – Cleanup of language (blight, etc.)

4. Economic Development Organization Tax Credit - Allowing a tax credit for donations made to state and regional economic development organizations;

5. Investment-based Incentives – Providing tax incentives for significant infrastructure investments made by private companies to enhance retention of jobs in state and to recognize that such improvements are beneficial even though jobs are not necessarily created;

6. School District Bonding Capacity - Support effort by school districts to include properties which have received tax abatement under Chapter 100 in their assessed valuation when determining school district bonding capacity.

7. Retention Incentives – Explore retention incentives, provided objective may be established to determine whether a company’s threat to leave is sincere;

8. Innovation and Entrepreneurial Activity – Work with DED and Innovation Centers on research and development;

9. Funding for Training & Development in Rural Areas – Explore revolving loan fund or other means for funding training and development;

10. Angel Investing and Venture Capital – Explore ways to encourage angel investing and venture capital investment in Missouri, particularly when the ideas have been developed in Missouri and are at risk of being commercialized elsewhere;

11. Transportation Funding – Monitor transportation funding enhancement (tax increase) proposals in legislature and through initiative petition process;

12. SBDC Funding – MEDC considers SBDC funding a priority and will assist the SBDC with securing state funding through the appropriations process;

13. RPC Funding – MEDC supports regional planning commission funding in the appropriations process;

14. Job Training Funding – MEDC supports restoring and enhancing job training moneys that have been reduced in the appropriations process;

15. Quality Jobs Enhancement – Definition of “county average wage” prevents some counties that have high unemployment rates from using the program because average wage of those that are employed is relatively high. Explore solutions over the next several legislative sessions for presentation in future sessions to this and other issues that need to be addressed with the Quality Jobs Program;

16. Port Authority Funding – MEDC supports port authority funding;

17. Rural Empowerment Zones – Expand the application of rural empowerment zones which allow income tax abatement for new businesses locating in such zones as designated by DED;

18. Flood Plain TIF – Revisit tax increment financing prohibition in flood plains in light of amended definition of flood plains under consideration by U.S. Corps of Engineers;

19. Post-secondary Education Incentives – Develop incentives to encourage employees to seek and attain post-secondary education, possibly through incentives for employers that give time off to employees to pursue education opportunities or incentives to encourage recruitment and retention of qualified and talented employees;

Rep. David Pearce and MEDC Legislative Consultant Testify on MEDCode

2007-09-14T08:51:00.000-05:00

The Joint Committee on Tax Policy heard testimony from Representative David Pearce and MEDC Legislative Consultant Ray McCarty on Thursday regarding the Missouri Economic Development Code.

The MEDCode is a legislative priority of the MEDC for the upcoming session. The program would allow economic developers to continue arranging voluntary agreements between local taxing districts and site developers to use a portion of new tax revenues derived from new developments for public infrastructure necessary to support such development projects.

Rep. Pearce presented the concept to the committee and explained that he has carried the bill for the last two years and, although it has met with no resistance from any group and there seems to be little controversy about it, the bill has not passed due to confusion with Tax Increment Financing (TIF) programs. TIF programs have been closely scrutinized in recent years and TIF reform could have ended all similar arrangements, including those that are completely voluntary.

McCarty echoed Rep. Pearce's comments and explained the difference between involuntary contributions under TIF plans and voluntary contributions under the MEDCode. Click here for Missourinet coverage of the hearing, including sound clips.

The Joint Committee on Tax Policy must report its findings on the feasibility of the MEDCode by December 31, 2007.

Governor Blunt Signs Economic Development Bill - Quality Jobs Boost Effective Today!

2007-09-04T09:39:00.002-05:00

September 4 - Governor Matt Blunt today signed House Bill 1, sponsored by Representative Ron Richard and Senator John Griesheimer, as MEDC Legislative Consultant Ray McCarty (center) watches. The bill was one of the products of a special session called by Governor Blunt to address job creation and the repair of Missouri's bridges.

The bill contains many economic development provisions, including an increase in the Missouri Quality Jobs annual tax credit limit (from $12 million to $40 million) and a New Markets Tax Credit, both of which are effective today.

The remainder of the bill, including an increase in the Enhanced Enterprise Zone tax credit cap from $7 million to $14 million, will be effective December 3, 2007. A new Land Assemblage Tax Credit is also authorized in the bill, as well as a tax credit for cattle farm operations, ticket scalping provisions, and several other items. The bill also extends the New Jobs Training Tax Credit program expiration by 10 years.

The MEDC worked hard with the staff of the Missouri Department of Economic Development, the Governor's office, Representative Richard and Senator Griesheimer to pass this bill and appreciates Governor Blunt's continuing commitment to the creation of good paying jobs with benefits and for enhancing our economic developers' ability to attract and retain companies that provide such jobs. Since its birth in 2005, the Quality Jobs program has produced more than 12,500 jobs with average annual salaries of $46,856, according to a report by the Taxpayers Research Institute of Missouri (visit www.motaxpayers.com and click on "REPORTS" for a copy of the report). Total annual wages of jobs created with the program are anticipated to exceed $630 million by 2012, according to the report.

ECONOMIC DEVELOPMENT BILL FINALLY PASSED

2007-08-30T12:25:00.000-05:00

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

2007-08-30T00:37:00.000-05:00

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.

Senator Griesheimer Takes Lead on Economic Develoment Bill in Senate

2007-08-27T16:35:00.001-05:00

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.

House Passes Economic Development Bill - Next Stop: Missouri Senate

2007-08-23T16:30:00.000-05:00

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.

Representative Ron Richard Files Economic Development Bill

2007-08-20T14:02:00.001-05:00

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.

Details of Governor Blunt's Special Session Call

2007-08-16T16:49:00.000-05:00

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.

Back To Work!!! Governor Calls Special Session

2007-08-10T10:19:00.001-05:00

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.

2007 Legislation Affecting MEDC (FINAL)

2007-07-24T11:47:00.000-05:00

HCS HB 184 – CHILDREN’S SERVICES PROTECTION ACT (Signed by Governor July 5, 2007)

Prevents sales taxes levied for Children Services Protection from being diverted to TIF projects after August 28, 2007.

SS HB 205 – TOURISM (Signed June 26, 2007)

Authorizes local transient guest taxes for Pemiscot County, the City of Sullivan, and part of the Sullivan C-II School District in Franklin County.

Allows additional cities and counties to form theater, cultural arts and entertainment districts that are currently allowed only in St. Charles County.

Extends the Division of Tourism Supplemental Revenue Fund expiration date to June 30, 2015.

SS SCS HCS HB 327 – ECONOMIC DEVELOPMENT (Vetoed by Governor July 6, 2007)

TIF provisions:

Any municipality in St. Louis County, St. Charles County, or Jefferson County to establish a county TIF commission similar to St. Louis County’s current TIF commission to approve TIF projects in those areas;

Prohibits any new TIF projects in “greenfields” in St. Louis City or County, or in St. Charles, Jefferson or Franklin counties;

Prohibits any new TIF in a 100-year flood plain (including the "flood plain" as currently designated by FEMA or as amended in the future by FEMA).

Hunting Heritage Protection Act;

Land Assemblage Tax Credit – allows a developer to receive a tax credit equal to 50% of the acquisition costs and 100% of the interest on financing used to assemble large tracts of land of at least 75 acres in certain areas. The credit is capped at $12 million per year with a cumulative cap of $100 million;

Small Business Investment Tax Credit revisions;

Disabled person home modification tax credit;

Civil War Site Preservation Tax Credit;

Maternity Homes Tax Credit cap increase from $2 million to $3 million;

Qualified Beef Tax Credit with an annual cap of $10 million and cumulative cap of $30 million;

Equity Investment Tax Credit of up to $15 million annually;

Film Production Tax Credit changes and increasing the annual cap from $1.5 to $10.5 million;

Enhanced Enterprise Zone annual cap raised from $7 million to $25 million and other technical changes to the program;

Missouri Homestead Preservation Act changes in exemption limit;

Tax incentives for alternative fuel sellers and consumers;

Motor fuel tax exemptions for public transit and school buses;

Sales tax exemptions for common carriers used in intrastate commerce;

Rebuttable presumption that auto manufacturers meet the 25% recycled raw material requirement of the Electrical Energy Direct Pay exemption, eliminating current requirements that require them to prove entitlement to such exemption every year (all current auto manufacturers already qualify for the exemption) ;

Sales tax exemption for agricultural biotechnology and plant genomics utility and other purchases and for utilities used in pharmaceutical research and development;

State and local sales tax exemption for all manufacturing inputs;

Sales tax exemption for aviation jet fuel used for transoceanic flights;

Eliminates “nexus” for out-of-state companies (including Internet retailers) that own or control a distribution or data processing center in Missouri, allowing such companies to avoid sales and use tax collection requirements and ensuring there is no income tax liability or franchise tax liability for such out-of-state companies. Currently, such out-of-state companies would be required to collect and remit sales or use taxes on sales made to Missouri customers;

Vocational School Districts are authorized for several counties;

New Jobs Training Program expiration is extended for an additional 10 years;

Family Development Account program changes;

Transportation Development District changes;

Establishes a Regional Railroad Authority in all Missouri cities and counties;

Workforce Investment Board is established and the Missouri Training and Employment Council is eliminated;

Quality Jobs Program changes and increases in tax credit annual cap from $12 million to $30 million;

Small Business and Entrepreneurial Growth Act allowing small businesses to retain withholding tax if they are adding a certain number of jobs, do not otherwise qualify for Quality Jobs, and pay at least 85% of the county average wage; and,

Decriminalization of ticket scalping.

SS HCS HB 741 – REGIONAL ECONOMIC DEVELOPMENT DISTRICTS (Signed by Governor June 26, 2007)

TIF provisions:

Any municipality in St. Louis County, St. Charles County or Jefferson County to establish a county TIF commission similar to St. Louis County’s current TIF commission and requires municipalities in these counties and Franklin County to receive approval from the county TIF commission for TIF projects after January 1, 2008;

Requires 2/3 majority vote of a city’s governing body to overturn a TIF commission’s disapproval of a TIF project beginning January 1, 2008;

Requires the Joint Committee on Tax Policy to study the Missouri Economic Development Code as proposed by the MEDC that would allow voluntary participation by local taxing districts in an incremental financing plan, and to have the results of that study reported to the General Assembly by December 31, 2007 (provisions authorizing the Missouri Economic Development Code were removed from the bill);

Allows locally owned small businesses in some rural communities to participate in the linked deposit program;

Disabled person home modification tax credit;

Makes changes to the Missouri Qualified Biodiesel Producer Incentive Fund program to allow the use of non-Missouri feedstock and other changes;

Allows local governments to establish Regional Economic Development Districts and to finance projects in such districts with locally imposed sales taxes or TIF and requires reports to be made available to the public annually on the use of district funds;

Establishes the Rice Certification Committee to control the production, transportation and receipt of rice products in Missouri and to encourage the development of new types of Missouri rice.

SCS HCS HB 795 – LOCAL ECONOMIC DEVELOPMENT (Signed by Governor June 30, 2007)

Allows some cities and counties to impose transient guest taxes;

Allows additional cities and counties to form theater, cultural arts and entertainment districts that are currently allowed only in St. Charles County.

CCS HCS SS SCS SB 22 – LOCAL GOVERNMENT (Signed by Governor July 13, 2007)

Changes statute authorizing creation of Neighborhood Improvement Districts;

Authorizes transient guest taxes in certain cities and counties and allows cities with a population of less than 7,500 to transfer 40% of tourism tax revenues to their general revenue fund ;

Provides for an audit of tax collection and expenditures for tourism purposes in political subdivisions that do not currently have such audit procedures;

Allows merger of certain Community Improvement Districts and makes other changes to the law authorizing such districts;

Allows additional cities and counties to form theater, cultural arts and entertainment districts that are currently allowed only in St. Charles County;

Revises the “Kansas and Missouri Regional Investment District Compact” to become the “Missouri Regional Investment District Compact” if Kansas has not enacted their part of the compact by August 28, 2007;

Allows the City of Joplin to enact a local sales tax for the benefit of nonprofit museums and nonprofit organizations that operate or promote historic sites;

Authorizes TIF in flood plains in the City of St. Charles in certain circumstances;

Requires all affected taxing entities in Boone County to receive notice and PILOTs in industrial development project plans approved after May 15, 2005;

Provides a sales tax exemption for contractors fulfilling contracts with MoDOT;

Changes provisions regarding Transportation Development Districts;

CCS HCS SB 30 – TAX PROVISIONS (Signed by Governor June 13, 2007)

Prevents sales taxes levied for Children Services Protection from being diverted to TIF projects after August 28, 2007;

Authorizes additional transient guest taxes in certain counties and cities;

Sales tax exemptions for common carriers used in intrastate commerce;

Sales tax exemption for agricultural biotechnology and plant genomics utility and other purchases and for utilities used in pharmaceutical research and development;

State sales tax exemption for all manufacturing inputs;

Sales tax exemption for sales and leases made by cities and counties under a Chapter 100 arrangement, provided such exemption is approved by the Department of Economic Development;

Family Development Account program changes;

CCS HCS SB 81 – LOCAL ECONOMIC DEVELOPMENT (Signed June 30, 2007)

Allows some cities and counties to impose transient guest taxes;

Allows additional cities and counties to form theater, cultural arts and entertainment districts that are currently allowed only in St. Charles County.

SS SCS SB 225 – HUNTING HERITAGE and TIF IN FLOOD PLAINS (Signed by Governor July 3, 2007)

Establishes a protected area in 100 year flood plains of the Missouri and Mississippi rivers, protecting hunting in such areas with some exceptions;

Prohibits new TIF projects in 100 year flood plains of the Missouri and Mississippi rivers except:

Projects that improve flood or drainage protection; and

Renewable fuel production facility projects as long as no other new development results from the project;

Flood plain is area designated as such by FEMA and any change in the flood plain as determined by FEMA.

CCS SB 233 – LOCAL TAXES (Signed June 30, 2007)

Prevents sales taxes levied for Children Services Protection from being diverted to TIF projects after August 28, 2007

Authorizes the City of Gladstone to impose a local transient guest tax;

Requires disbursement of excess funds in industrial development projects in Boone County to all affected taxing entities.

CCS HCS SB 376 – TOURISM SUPPLEMENTAL REVENUE (Signed by Governor May 3, 2007)

Extends the expiration date on the Division of Tourism Supplemental Revenue Fund to June 30, 2015

SS#6 SCS SB 389 – HIGHER EDUCATION (Signed by Governor May 23, 2007)

Establishes the Lewis and Clark Discovery Initiative, authorizing the transfer of assets from the Missouri Higher Education Loan Authority (MOHELA) to the Lewis and Clark Discovery Fund for:

Construction of capital projects at public colleges and universities;

The Missouri Technology Corporation to assist in the commercialization of technologies developed at these institutions;

Additional scholarship programs;

Allows public colleges and universities to increase tuition up to the annual change in the Consumer Price Index and provides that institutions that raise tuition above this limit must remit 5% of its state appropriation to the General Revenue Fund with certain exceptions, subject to final decision by the Coordinating Board of Higher Education.

For more detailed information on these bills, including their current status, please consult the actual text of the bills. You may access the text of the bills at: http://house.mo.gov/jointsearch/

Governor Blunt Vetoes Economic Development Bill

2007-07-10T12:22:00.000-05:00

For those of you that have not already heard, please be advised Governor Blunt vetoed HB 327 on Friday afternoon, July 6, 2007.

Reasons for the veto as listed in the Governor’s veto letter were:

The definition of “employee” was changed in the Quality Jobs Act to create an absurd result had the new definition become law;
The Governor objected to the Small Business and Entrepreneurial Growth Act because incentives would be provided for jobs with no health insurance requirement and that paid less than county average wage;
The nexus provisions allowing distribution centers to be located in the state by affiliated companies outside the state without creating nexus was deemed “...bad public policy. The resulting effect could put businesses already operating in Missouri at a competitive disadvantage”, according to the Governor’s veto letter;
The regional railroad authority would have given eminent domain and taxing authority to unelected officials;
The fuel tax exemption for trans-oceanic flights would reduce money that supports regional airports, although such flights do not presently exist; and,
The local sales tax exemption for manufacturing inputs would conflict with SB 30. The letter says local government officials had expressed concern about the conflict between the two provisions because the manufacturing inputs would have been exempted from local sales taxes under HB 327 but would not have been exempted under SB 30.

The Governor said in a press release he would consider a special session if legislators were willing to move a bill with just a few of the economic development provisions, including Quality Jobs, Enterprise Zones and New Markets Tax Credits.

The MEDC is committed to working with the Governor and legislative leaders to pass our Quality Jobs and Enhanced Enterprise Zone legislation. We will need to wait and see if legislative leaders and the Governor can agree on terms for a special session.

Missouri Ranks High in Recruitment and Retention Rankings by "Expansion Management"

2007-07-02T11:03:00.000-05:00

Missouri is the 13th best state for recruitment and attraction, according to the May/June 2007 edition of "Expansion Management" magazine. The ranking is based on data from the National Policy Research Council Proprietary Database, 2007.

Missouri was also represented in the top 20 of all cities and counties ranked in the article. St. Joseph ranked #1 in small metropolitan areas for recruitment and attraction successes, and Buchanan County was listed as the #1 small county for recruitment and attraction.

Springfield ranked 12th in the mid-size metropolitan area category. Greg Williams, Senior Vice President of Economic Development for the Springfield Area Chamber of Commerce commented on the rankings. "We're pleased to be recognized on a list with so many outstanding places across the country," he said. "Many of the cities on this list are those we consider 'peer cities' and to be mentioned in the company of Tuscon, Albuquerque and Des Moines is gratifying. Springfield is a great place and no longer a best-kept secret to business and professional organizations seeking a new location."

Kansas City ranked 12th in the large metropolitan area class and St. Louis County was 18th in the large county listing. Jackson County was 18th in the mid-size county category.

To see each listing, click on the links below:

Top 15 States for Recruitment & Attraction
Top 20 Large Metros for Recruitment & Attraction
Top 20 Large Counties for Recruitment & Attraction
Top 20 Midsize Metros for Recruitment & Attraction
Top 20 Midsize Counties for Recruitment & Attraction
Top 20 Small Metros for Recruitment & Attraction
Top 20 Small Counties for Recruitment & Attraction

Congratulations to the listed locations and keep up the good work!

Governor Matt Blunt Signs MEDC Regional Economic Development Bill

2007-06-27T00:48:00.001-05:00

Warrensburg - June 26, 2007 - Governor Matt Blunt signed the MEDC Regional Economic Development District legislation into law before an attentive crowd of Girls State participants at the University of Central Missouri this evening. MEDC President Lisa Franklin holds a signed copy of HB 741 while Rep. David Pearce, Public Policy Committee Chair Randy Allen, President-elect Ben Jones, and Rep. Darrell Pollock pause for a photo with the Governor following the ceremony (above).

The legislation was originally sponsored by Rep. Pollock and was added to a broader economic development bill sponsored by Rep. Pearce (right). The new law will allow local governments to pursue a regional approach to economic development projects. Prior to passage of the new law, local governments had the ability to work together on regional plans, but had no statutory authority to fund joint projects. Rep. Pearce recognized the MEDC's work in bringing the legislation forward. He also explained the original bill contained the Missouri Economic Development Code, but through the legislative process, the legislature decided to further study that issue for possible action in the next legislative session.

Governor Blunt reiterated his commitment to job creation in comments to the Girls State crowd and commended the participants on their leadership.

The Missouri Economic Development Council thanks Governor Blunt, Rep. Pollock, Rep. Pearce, and the other members of the House and Senate for their support of MEDC's economic development legislation.

Quality Jobs Act Producing Results

2007-06-21T09:04:00.000-05:00

I just read an opinion editorial entitled,"Economic development bill a formula for failure" by Joe Haslag, Michael Podgursky and Steve Bernstetter published in the Springfield News Leader. I was appalled that these educated people could appear so uneducated on the great benefit the State of Missouri has enjoyed from the proper use of economic development legislation.

While I agree with the general premise of the article that the best way to approach economic development is through true tax reform through the elimination or lowering of rates, the pathway to achieve that goal is not to reduce tax credits and incentives that are working. To put all tax credits and incentives in a box and declare all of them are failures is simply to be misinformed.

The Quality Jobs Act was passed after the Missouri Economic Development Council (MEDC) authorized a study of best practices in economic development at the state level. This study showed that similar programs in other states had been successful and could be successful in Missouri. The MEDC carefully drafted the plan, along with the experts at the Department of Economic Development, so only companies creating true quality jobs that paid greater than county average wage and that provided employees health insurance would be rewarded under the program. Further, the Quality Jobs Act only pays a dividend to the job creator if they actually create the job. In contrast to other incentive programs that require a benefit first and hope for a job to be created later, the Quality Jobs Act requires a job to be created before any benefits are awarded to the employer. This novel concept enjoyed great support from Governor Matt Blunt and the legislature. In fact, Representative Ron Richard from Joplin, Chairman of the House Job Creation and Economic Development Committee, sponsored the bill and, using his ability to drive bipartisan consensus, he was able to solicit the support of nearly all members of the Missouri House - Democrats and Republicans alike. Rep. Richard is correct when he says there are no Democrat jobs or Republican jobs – good paying jobs are good paying jobs, period. Liberal groups, usually at odds with business friendly legislation, were equally supportive because of the health insurance requirement. Business groups like the MEDC and Associated Industries of Missouri supported the concept because of the great potential to attract and retain good paying jobs.

And the results have been better than any of us could have imagined in 2005. According to a report issued earlier this year by the Taxpayers Research Institute of Missouri based on actual data from the Missouri Department of Economic Development, the first 104 Quality Jobs projects have stimulated Missouri employers to create 12,500 jobs with an average annual wage of $46,856. Estimated annual wages from jobs created under the program are anticipated to exceed $630 million by 2012 from these first 104 projects alone.

Concerned about the return to the state? The Quality Jobs program has returned $3.18 in new tax dollars for every state tax dollar invested in the program! And that does not account for any additional economic benefits that could be measured using respected economic modeling software - those are strictly tax dollars yielded from a great incentive program that actually works as intended.

I agree with the authors of the article that many of our tax credit and incentive programs should be reviewed for effectiveness and those that cannot prove results should be changed or eliminated to provide the most benefit from each tax dollar invested. In fact, when we originally passed the Quality Jobs Act, we did exactly that, taking money away from a program that had never used the full amount of allocated tax credits and using that otherwise wasted resource to fund this new innovative program. The state should look harder at available tax incentives and their benefits, both economic and social, and those that cannot be justified should be eliminated. But looking at the failure of some of these programs and somehow concluding that all tax incentive programs are ineffective is simply incorrect.

In addition, the health insurance requirement rewards companies that provide health insurance for employees, reducing the number of uninsured families that must be supported by the state's health care plan (Medicaid or its successor). By providing true quality jobs with health benefits, workers are able to afford quality health insurance for themselves and their families, reducing the amount that must be poured into government health care by all other taxpayers.

One final thought: those that decry the use of tax incentives should also realize that Missouri economic development professionals are in a daily competition with incentives available in other states and low wage rates in other countries. Any elimination of incentives that are producing results in Missouri without a corresponding elimination of incentives in other states will cause Missouri economic development professionals to lose this daily competition. Jobs will flow to other states while Missouri's economy lags if we use such a shortsighted approach to economic development. Rather, the responsible use of incentives to attract and retain quality jobs in Missouri should be reviewed and enhanced where appropriate so we may continue to win this competition. Remember, 12,500 jobs were created with the Quality Jobs program alone. That's 12,500 men and women that are employed in Missouri, making good wages for their families, enjoying the benefits of health insurance, paying taxes, supporting our schools with property taxes on houses they can now afford, and generally supporting our local economies all over the state. Missouri should continue to welcome job creation by Missouri employers and programs such as the Quality Jobs program that make such job creation possible.

The Quality Jobs program is the best economic development program Missouri has seen in a long time, perhaps ever. The "pay as you go" method of rewarding job creation that is embodied in the program should serve as a model for other tax incentives. We should support all efforts to enhance and expand the Quality Jobs program and continue to enjoy greater tax revenues from the jobs created through the use of the program.

Ray McCarty

MEDC Legislative Consultant

Governor Matt Blunt Signs MEDC Chapter 100 Sales Tax Exemption Into Law

2007-06-14T23:35:00.001-05:00

Warrenton, MO - Governor Matt Blunt signed SB 30 into law on Wednesday, June 13. The bill contains an exemption from state and local sales taxes for sales and leases made by cities through Chapter 100 arrangements. This measure was a MEDC legislative priority.

Also included in the bill is a state sales tax exemption for machinery, equipment, utilities, and chemicals used in manufacturing, mining, producing or processing products in Missouri. This exemption, also supported by the MEDC, will help Missouri compete with states such as Kansas that have liberal manufacturing exemptions for high quality, good paying manufacturing jobs.

You may find the full text of the bill here and a link to the bill page with summary information here. The MEDC exemptions are on pages 30-31, section 144.054 of the bill. The law will be effective August 28, 2007.

Governor Attends Ribbon Cutting for Quality Job Recipient

2007-06-08T14:56:00.000-05:00

June 8, 2007 - Governor Matt Blunt today issued a press release regarding a ribbon-cutting ceremony for Express Scripts' new headquarters on the campus of the University of Missouri - St. Louis. The release credits the Quality Jobs Act for the new facility. The Quality Jobs Act was first suggested by the Missouri Economic Development Council and heavily supported by Governor Blunt and his administration.

We look forward to more success stories from the Quality Jobs program that will result from raising the tax credit limits on the program.

For the full press release, please click here .

2007 MEDC Legislative Wrap Up

2007-06-01T15:29:00.000-05:00

June 1, 2007 - The slide show I presented to the MEDC Spring Conference today has been posted on this blog. Please click on the link at right entitled, "2007 MEDC Legislative Wrap Up Presentation" if you would like to view the document.

2007 Final Legislation Affecting MEDC

2007-05-30T16:49:00.000-05:00

Note: Unless otherwise indicated, the Governor has not yet signed or vetoed this legislation. The Governor has until July 14 to sign or veto legislation, and if not vetoed by that date, these bills would automatically become law.

HCS HB 184 – CHILDREN’S SERVICES PROTECTION ACT

Prevents sales taxes levied for Children Services Protection from being diverted to TIF projects after August 28, 2007.

SS HB 205 – TOURISM

Authorizes local transient guest taxes for Pemiscot County, the City of Sullivan, and part of the Sullivan C-II School District in Franklin County.

Allows additional cities and counties to form theater, cultural arts and entertainment districts that are currently allowed only in St. Charles County.

Extends the Division of Tourism Supplemental Revenue Fund expiration date to June 30, 2015.

SS SCS HCS HB 327 – ECONOMIC DEVELOPMENT

TIF provisions:

Any municipality in St. Louis County, St. Charles County, or Jefferson County to establish a county TIF commission similar to St. Louis County’s current TIF commission to approve TIF projects in those areas;

Prohibits any new TIF projects in “greenfields” in St. Louis City or County, or in St. Charles, Jefferson or Franklin counties;

Prohibits any new TIF in a 100-year flood plain (including the "flood plain" as currently designated by FEMA or as amended in the future by FEMA).

Hunting Heritage Protection Act;

Land Assemblage Tax Credit – allows a developer to receive a tax credit equal to 50% of the acquisition costs and 100% of the interest on financing used to assemble large tracts of land of at least 75 acres in certain areas. The credit is capped at $12 million per year with a cumulative cap of $100 million;

Small Business Investment Tax Credit revisions;

Disabled person home modification tax credit;

Civil War Site Preservation Tax Credit;

Maternity Homes Tax Credit cap increase from $2 million to $3 million;

Qualified Beef Tax Credit with an annual cap of $10 million and cumulative cap of $30 million;

Equity Investment Tax Credit of up to $15 million annually;

Film Production Tax Credit changes and increasing the annual cap from $1.5 to $10.5 million;

Enhanced Enterprise Zone annual cap raised from $7 million to $25 million and other technical changes to the program;

Missouri Homestead Preservation Act changes in exemption limit;

Tax incentives for alternative fuel sellers and consumers;

Motor fuel tax exemptions for public transit and school buses;

Sales tax exemptions for common carriers used in intrastate commerce;

Rebuttable presumption that auto manufacturers meet the 25% recycled raw material requirement of the Electrical Energy Direct Pay exemption, eliminating current requirements that require them to prove entitlement to such exemption every year (all current auto manufacturers already qualify for the exemption) ;

Sales tax exemption for agricultural biotechnology and plant genomics utility and other purchases and for utilities used in pharmaceutical research and development;

State and local sales tax exemption for all manufacturing inputs;

Sales tax exemption for aviation jet fuel used for transoceanic flights;

Eliminates “nexus” for out-of-state companies (including Internet retailers) that own or control a distribution or data processing center in Missouri, allowing such companies to avoid sales and use tax collection requirements and ensuring there is no income tax liability or franchise tax liability for such out-of-state companies. Currently, such out-of-state companies would be required to collect and remit sales or use taxes on sales made to Missouri customers;

Vocational School Districts are authorized for several counties;

New Jobs Training Program expiration is extended for an additional 10 years;

Family Development Account program changes;

Transportation Development District changes;

Establishes a Regional Railroad Authority in all Missouri cities and counties;

Workforce Investment Board is established and the Missouri Training and Employment Council is eliminated;

Quality Jobs Program changes and increases in tax credit annual cap from $12 million to $30 million;

Small Business and Entrepreneurial Growth Act allowing small businesses to retain withholding tax if they are adding a certain number of jobs, do not otherwise qualify for Quality Jobs, and pay at least 85% of the county average wage; and,

Decriminalization of ticket scalping.

SS HCS HB 741 – REGIONAL ECONOMIC DEVELOPMENT DISTRICTS

TIF provisions:

Any municipality in St. Louis County, St. Charles County or Jefferson County to establish a county TIF commission similar to St. Louis County’s current TIF commission and requires municipalities in these counties and Franklin County to receive approval from the county TIF commission for TIF projects after January 1, 2008;

Requires 2/3 majority vote of a city’s governing body to overturn a TIF commission’s disapproval of a TIF project beginning January 1, 2008;

Requires the Joint Committee on Tax Policy to study the Missouri Economic Development Code as proposed by the MEDC that would allow voluntary participation by local taxing districts in an incremental financing plan, and to have the results of that study reported to the General Assembly by December 31, 2007 (provisions authorizing the Missouri Economic Development Code were removed from the bill);

Allows locally owned small businesses in some rural communities to participate in the linked deposit program;

Disabled person home modification tax credit;

Makes changes to the Missouri Qualified Biodiesel Producer Incentive Fund program to allow the use of non-Missouri feedstock and other changes;

Allows local governments to establish Regional Economic Development Districts and to finance projects in such districts with locally imposed sales taxes or TIF and requires reports to be made available to the public annually on the use of district funds;

Establishes the Rice Certification Committee to control the production, transportation and receipt of rice products in Missouri and to encourage the development of new types of Missouri rice.

SCS HCS HB 795 – LOCAL ECONOMIC DEVELOPMENT

Allows some cities and counties to impose transient guest taxes;

Allows additional cities and counties to form theater, cultural arts and entertainment districts that are currently allowed only in St. Charles County.

CCS HCS SS SCS SB 22 – LOCAL GOVERNMENT

Changes statute authorizing creation of Neighborhood Improvement Districts;

Authorizes transient guest taxes in certain cities and counties and allows cities with a population of less than 7,500 to transfer 40% of tourism tax revenues to their general revenue fund ;

Provides for an audit of tax collection and expenditures for tourism purposes in political subdivisions that do not currently have such audit procedures;

Allows merger of certain Community Improvement Districts and makes other changes to the law authorizing such districts;

Allows additional cities and counties to form theater, cultural arts and entertainment districts that are currently allowed only in St. Charles County;

Revises the “Kansas and Missouri Regional Investment District Compact” to become the “Missouri Regional Investment District Compact” if Kansas has not enacted their part of the compact by August 28, 2007;

Allows the City of Joplin to enact a local sales tax for the benefit of nonprofit museums and nonprofit organizations that operate or promote historic sites;

Authorizes TIF in flood plains in the City of St. Charles in certain circumstances;

Requires all affected taxing entities in Boone County to receive notice and PILOTs in industrial development project plans approved after May 15, 2005;

Provides a sales tax exemption for contractors fulfilling contracts with MoDOT;

Changes provisions regarding Transportation Development Districts;

CCS HCS SB 30 – TAX PROVISIONS

Prevents sales taxes levied for Children Services Protection from being diverted to TIF projects after August 28, 2007;

Authorizes additional transient guest taxes in certain counties and cities;

Sales tax exemptions for common carriers used in intrastate commerce;

Sales tax exemption for agricultural biotechnology and plant genomics utility and other purchases and for utilities used in pharmaceutical research and development;

State sales tax exemption for all manufacturing inputs;

Sales tax exemption for sales and leases made by cities and counties under a Chapter 100 arrangement, provided such exemption is approved by the Department of Economic Development;

Family Development Account program changes;

CCS HCS SB 81 – LOCAL ECONOMIC DEVELOPMENT

Allows some cities and counties to impose transient guest taxes;

Allows additional cities and counties to form theater, cultural arts and entertainment districts that are currently allowed only in St. Charles County.

SS SCS SB 225 – HUNTING HERITAGE and TIF IN FLOOD PLAINS

Establishes a protected area in 100 year flood plains of the Missouri and Mississippi rivers, protecting hunting in such areas with some exceptions;

Prohibits new TIF projects in 100 year flood plains of the Missouri and Mississippi rivers except:

Projects that improve flood or drainage protection; and

Renewable fuel production facility projects as long as no other new development results from the project;

Flood plain is area designated as such by FEMA and any change in the flood plain as determined by FEMA.

CCS SB 233 – LOCAL TAXES

Prevents sales taxes levied for Children Services Protection from being diverted to TIF projects after August 28, 2007

Authorizes the City of Gladstone to impose a local transient guest tax;

Requires disbursement of excess funds in industrial development projects in Boone County to all affected taxing entities.

CCS HCS SB 376 – TOURISM SUPPLEMENTAL REVENUE (Signed 5/3/07)

Extends the expiration date on the Division of Tourism Supplemental Revenue Fund to June 30, 2015

SS#6 SCS SB 389 – HIGHER EDUCATION (Signed 5/23/07)

Establishes the Lewis and Clark Discovery Initiative, authorizing the transfer of assets from the Missouri Higher Education Loan Authority (MOHELA) to the Lewis and Clark Discovery Fund for:

Construction of capital projects at public colleges and universities;

The Missouri Technology Corporation to assist in the commercialization of technologies developed at these institutions;

Additional scholarship programs;

Allows public colleges and universities to increase tuition up to the annual change in the Consumer Price Index and provides that institutions that raise tuition above this limit must remit 5% of its state appropriation to the General Revenue Fund with certain exceptions, subject to final decision by the Coordinating Board of Higher Education.

For more detailed information on these bills, including their current status, please consult the actual text of the bills. You may access the text of the bills at: http://house.mo.gov/jointsearch/

House Summaries of Finally Passed Bills Now Available

2007-05-23T13:39:00.000-05:00

May 23, 2007 - The Missouri House has published the "Summaries of Truly Agreed To and Finally Passed Bills" for the recently completed 2007 regular legislative session.

This annual publication by the professional staff of House Research has long been respected as an excellent tool for finding information on the legislation that passed during the session. You may even find legislation of interest that you may have previously overlooked. While no summary is perfect 100% of the time, these summaries are carefully assembled and usually very reliable.

To access this valuable publication, click here.

Chapter 100 Sales Tax Exemption

2007-05-22T14:50:00.000-05:00

May 22, 2007 - You may access a copy of SB 30, containing the Chapter 100 sales tax exemption for cities, by clicking here. You will find the exemption on page 31, lines 38-42. The bill also contains the manufacturing inputs sales tax exemption supported by MEDC on pages 30-31.

The exemption would be provided on a case-by-case basis as approved by DED. The bill will be presented to Governor Blunt for signature and, if signed, it would be effective August 28, 2007.

Regional Economic Development District Bill Survives

2007-05-18T16:18:00.001-05:00

May 18, 2007 - After the smoke cleared from last night's late night legislative sessions, we found the tax increment financing provisions added by Sen. Tim Green were not ornerous after all. In fact, they only added an effective date to language already passed in HB 327 that is currently awaiting the Governor's decision to sign or veto.

The regional economic development district portion of our MEDCode bill, HB 741, survived the Senate revisions and was taken up and passed today by the Missouri House. We applaud the efforts of Rep. David Pearce and Rep. Darrell Pollock, who championed this bill. We remain disappointed that the MEDCode was not approved this year, but, as Rep. Pearce stated on the House floor when passing the bill, we will try this legislation again next year.

The legislative session ends at 6:00 p.m. today.

MEDCode and Regional ED Bill Gutted By Senate...

2007-05-18T02:49:00.000-05:00

May 17, 2007 - Our Senate handler of the MEDCode and Regional Economic Development District bill, Senator Chris Koster, was finally recognized to take up our bill in the Senate shortly before midnight, the night before the end of the 2007 session. The debate concluded around 2:10 a.m. on the last day of session.

In the continuing effort to retaliate for the way the House passed HB 327, senators drastically amended the bill. Senator Chuck Gross removed the entire original MEDCode language from the bill and replaced it with language authorizing the Joint Committee on Tax Policy to study whether or not to allow voluntary tax increment financing programs. Senator Tim Green used the bill to add some tax increment financing language. Senator Brad Lager removed the regional economic development tax credit language (originally championed by Rep. Steve Hobbs). The Senate also added a Rice Advisory Council, biodiesel producer incentive changes, and a linked deposit program for small, locally owned businesses. This complete “oil change” of the bill is simply ridiculous, but not rare this session.

The original MEDCode bill has been completely removed from the bill. The regional economic development district language is still pretty much intact.

We thank our sponsors for their hard work on the bill. We will try again next year to allow economic developers specific authority to continue establishing voluntary developer agreements as we do today.

Legislature Finally Passes Manufacturing Inputs and Chapter 100 Sales Tax Exemptions!

2007-05-16T21:10:00.000-05:00

May 16, 2007 - The Missouri legislature today gave final passage today to SB 30, a bill that contains our Chapter 100 sales tax exemption and a state sales tax exemption for manufacturing inputs. The bill will now go to Governor Blunt for signature.

The Chapter 100 sales tax exemption will exempt from state and local sales taxes all sales and leases made by cities under Chapter 100 arrangements, provided DED approves such exemption on a case-by-case basis.

The manufacturing inputs sales tax exemption helps us be competitive with other states when competing for manufacturing operations. This exemption is limited to the state sales tax only, so local sales taxes will continue to apply. But the exemption covers nearly all manufacturing inputs, including machinery, equipment, electricity, gas and other energy sources and chemicals used or consumed in manufacturing, mining, processing, compounding or producing of any product.

We wish to thank Rep. Shannon Cooper who championed these issues all the way through the legislative process, Senator Gary Nodler who worked hard to successfully pass the bill in the Missouri Senate, Senator Jason Crowell who worked extremely hard with me on the manufacturing inputs exemption for the last two years, and Rep. Bryan Stevenson that advanced and handled the bill in the Missouri House. These four legislators helped us greatly and we appreciate their support and efforts on our behalf. We also thank the other legislators that put our need to pass this legislation and to remain competitive ahead of their personal and political concerns and allowed us to get the bill through the legislature.

Missouri Economic Development Omnibus Bill Passed by Legislature

2007-05-11T16:35:00.000-05:00

May 11, 2007 - Yesterday, the Missouri House, led by House Job Creation and Economic Development Chairman Rep. Ron Richard, voted to accept ALL Senate amendments and finally pass the omnibus economic development bill. The bill contains an increase in the tax credit limits for the Missouri Quality Jobs program (from $12 million to $30 million) and Enhanced Enterprise Zone program (from $7 million to $25 million), a ten-year extension of the New Jobs Training program, and many, many, many more provisions. The bill is 163 pages plus 53 pages of amendments - altogether 216 pages!

Although there are some problems with language that was included in the bill, the bill will be presented to Governor Blunt for signature, following the ceremonial signing of the bill by the Speaker of the House and the Senate President Pro Tem.

We applaud the efforts of Rep. Richard, Sen. John Griesheimer, and leadership of the House and Senate in passing this bill. You may download the final bill by clicking on the following link:

LINKS TO THE FINAL BILL:
Truly Agreed and Finally Passed HB 327

Motion Made on Quality Jobs and Enhanced Enterprise Zones

2007-05-10T00:24:00.000-05:00

May 9, 2007 - Senator John Griesheimer made a motion that was approved by the full Senate, to send HB 327, the Quality Jobs and Enhanced Enterprise Zone bill, back to conference. This demonstrates some progress on the legislation that had been stalled since last week.

Even though the motion is essentially the same motion that was rejected by the House last week, the House will again have an opportunity to accept the invitation to further meet and discuss the bill. We will continue to work with the House and Senate conferees to try to work out differences so the bill may be passed by the House and Senate before the 2007 Legislative Session ends on May 18.

SB 30 Includes Chapter 100 Sales Tax Exemption

2007-05-08T15:28:00.000-05:00

May 8, 2007 - After much discussion and negotiation with legislative leaders and the administration, we developed compromise language that allows the Department of Economic Development to approve an exemption from sales tax for Chapter 100 projects.

A MEDC legislative priority, the original proposal would have exempted all sales and leases by the municipality to a business under a Chapter 100 arrangement from sales tax. The compromise language allows the same exemption, but only if approved by DED. This language accomplishes the MEDC's goal and preserves accountability that was sought by the administration.

The Conference Committee for SB 30, led by Senator Gary Nodler and Rep. Bryan Stevenson, approved the substitute bill today. The bill must now be approved by the full Senate and then the full House.

Major Economic Development Bill Needs Your Help

2007-05-08T10:32:00.000-05:00

May 8, 2007 - PLEASE contact your legislators and let them know you support HB 327, the Quality Jobs and Enhanced Enterprise Zone bill. We need to let them know the importance of this legislation to your local communities. If you do not know your legislator, you may use the "Legislator Lookup" function at right.

Your contact with your local legislator could be the contact that makes the difference in breaking the log jam on this bill. Thank you for your help!

Quality Jobs Bill Update

2007-05-02T17:48:00.000-05:00

(May 2, 2007) The Quality Jobs bill, HB 327, was passed by the Missouri House, but the conference committee substitute did not fare so well in the Senate.

Sen. John Griesheimer made a motion to adopt the substitute, but that motion was debated at great length, primarily from Sen. Brad Lager, over some of the provisions in the bill, particularly a provision allowing a tax credit for the assembly of large tracts of land for redevelopment in the City of St. Louis. Sen. Griesheimer eventually withdrew his motion and made a motion to send the bill back to the House with a request to grant the Senate further conference.

The House, led by Rep. Ron Richard, refused to grant further conference. House Speaker Rod Jetton echoed the motion by Rep. Richard to send the bill back to the Senate to take up and pass the substitute. That motion was approved overwhelmingly.

If the Senate refuses to take up and pass the substitute, the bill will die. We hope all parties can resolve their differences and pass the increased tax credit limits for the Quality Jobs and Enhanced Enterprise Zone programs, as well as the manufacturing inputs exemption, and other valuable parts of the bill. The Legislature will adjourn May 18.

Your Support Needed on HB 327!

2007-05-01T17:38:00.000-05:00

(May 1, 2007) Please call and email your senator and representative and let them know the importance of the Quality Jobs and Enhanced Enterprise Zone bill, HB 327. The most recent version of the bill would boost the tax credit limits to $50 million for Quality Jobs and $25 million for the Enhanced Enterprise Zones. You need to express your support for the bill if it is to survive with these higher tax credit limits.

If you do not know your legislator's contact information, please click the "Legislator Lookup" link at right.

All MEDC Priorities Still Alive with 3 Weeks To Go!

2007-04-27T14:56:00.000-05:00

(April 27, 2007) With three weeks to go in the 2007 legislative session, lawmakers continue to make economic development legislation a priority. The MEDC's proposal to allow regional economic development districts and to allow voluntary financing arrangements for initial development of property have cleared the House and are awaiting debate in the Senate. House Bill 741, sponsored by Rep. David Pearce and Rep. Darrell Pollock and handled in the Senate by Senator Chris Koster, provides local economic developers with these important tools. We will be meeting to finalize strategy for the bill early next week.

House Bill 327, the omnibus economic development bill, will have a conference committee meeting next week. We have been working closely with the bill sponsor, Rep. Ron Richard, and the bill's Senate handler, Senator John Griesheimer, on details of various parts of the bill. The Senate version of the bill contained several undesirable provisions, including a change in the "nexus" standard proposed by one business group that would allow out-of-state companies to unfairly compete with Missouri businesses without incurring tax liability in the state. Objections from other business groups and state officials have led to the removal of this unfair provision from the final deliberations. The final legislation will be determined by the conference committee and must be approved by both the House and Senate. As presently drafted, the annual cap on the Quality Jobs program would increase from $12 million to $30 million and the annual tax credit limit on the Enhanced Enterprise Zone program would increase from $7 million to $25 million. Our small business development legislation originally sponsored by Rep. Doug Ervin is also contained in HB 327. And a provision that would allow Missouri to better compete for manufacturing jobs by exempting from sales tax all utilities and other inputs used in manufacturing is also included. A similar exemption exists in Kansas and several other states. That exemption may also be found in SB 30 (sponsored by Senator Gary Nodler and handled in the House by Rep. Bryan Stevenson) and HB 131 (sponsored by Rep. Shannon Cooper and handled in the Senate by Senator Jason Crowell).

MEDC's exemption for local governments that are participating in Chapter 100 arrangements was included in a committee substitute for SB 582 by Rep. Mike Sutherland. The bill was approved by the House committee and will now be sent to the House floor for further debate. The bill is sponsored by Sen. Wes Shoemyer.

The MEDC thanks the sponsors and handlers of these pieces of legislation for their hard work and for making economic development a true priority of the 2007 legislative session.

Chapter 100 and Manufacturing Inputs Sales Tax Exemptions Advance

2007-04-20T18:23:00.000-05:00

(April 20, 2007) The Missouri House debated and approved Senate Bill 30, a bill that now contains MEDC's priority legislation that would exempt cities from sales tax liability for leases and sales made under Chapter 100 arrangements and the exemption of manufacturing inputs we have discussed extensively in other articles on this blog. SB 30 will now return to the Senate and will then be sent to a conference committee to strike a compromise. After a compromise has been reached, the Senate and the House must approve the compromise bill. But for now, this is a victory and the issue is alive with four more weeks of the legislative session to go. Sen. Gary Nodler is the sponsor of the bill in the Senate and Rep. Bryan Stevenson is handling the bill in the House.

MEDC continues to work with Rep. Ron Richard, Sen. John Griesheimer, the Missouri Department of Economic Development, and others on the compromise language for House Bill 327. The bill is now the omnibus economic development bill containing Quality Jobs, Enhanced Enterprise Zones, and the manufacturing utility sales and use tax exemption.

Also this week, the Senate Committee on Ways and Means heard House Bill 131, containing the manufacturing inputs sales tax exemption and the Chapter 100 sales tax exemption. That bill is sponsored by Rep. Shannon Cooper and will be handled in the Senate by Sen. Jason Crowell. The bill is also in good position for passage this session.

Please contact your legislators and let them know you support SB 30, HB 327 and HB 131! If you need to find your legislator, please use the "Legislator Lookup" link at the upper right hand corner of this page.

MEDCode and Regional Economic Development District Bill Moves Forward

2007-04-18T22:03:00.000-05:00

(April 18, 2007) The Senate Committee on Economic Development, Tourism and Local Government today held a hearing and approved HB 741. The bill contains both the Missouri Economic Development Code and the Regional Economic Development District authorization.

There were no amendments and the bill was approved on a unanimous vote. Thanks to Randy Allen, President of Jefferson City Chamber of Commerce and MEDC Public Policy Chairman, for appearing in person at the hearing and to those writing letters of support: Shellby Hendee, Development Director, City of Cameron and Kathy Morgan, Economic Development Director, City of Albany.

The bill will now be considered by the full Senate. The MEDC thanks sponsors Rep. David Pearce, Rep. Darrell Pollock, and Senate handler Sen. Chris Koster, for their support of this legislation.

In other action, the Senate Ways and Means Committee today heard testimony on HB 131 which contains a sales tax exemption for manufacturing inputs and a sales tax exemption for cities leasing or selling property acquired through Chapter 100 projects. The Committee took no action on the bill at today's hearing. HB 131, sponsored by Rep. Shannon Cooper will be handled in the Senate by Senator Jason Crowell.

Quality Jobs and Enhanced Enterprise Zone Bill Continues to Advance

2007-04-16T18:10:00.000-05:00

(April 16, 2007) A key committee in the Missouri Senate today gave its approval to allow HB 327 to advance. The Missouri Senate followed suit and approved the final motion on the bill. As anticipated, the House refused to concur in the Senate position and asked the Senate for a conference on the legislation, which was granted. The contents of the bill will now be determined by a conference committee made up of five Senators and five Representatives. Once they have reached consensus, the compromise bill must be approved again by both the House and the Senate. The Senate conferees are: Senators Griesheimer, Koster, Crowell, Callahan, and Kennedy. The House conferees have yet to be appointed (probably sometime tomorrow).

This is the first of our priority bills to reach this stage in the process this year and we are very thankful to Rep. Ron Richard and Sen. John Griesheimer and leadership in the House and Senate for continuing to make this legislation a priority.

For more information on the bill, click here.

Senate Committee to Hear MEDC Priority Legislation

2007-04-16T17:00:00.000-05:00

The Senate Economic Development, Tourism and Local Government Committee will hear MEDC's priority legislation HB 741, containing both the Missouri Economic Development Code and the Regional Economic Development District legislation on Wednesday, April 18, at 1:30 p.m. in the Senate Lounge (3^rd floor, West side of the Capitol). We want to be respectful of the committee’s time and ask MEDC members to send written testimony to me to give to the committee on behalf of your organization. This will put your organization on record in support of the bill without having to make the trip to Jefferson City. The committee likes written testimony because it helps shorten the hearings. You should send written testimony to me at RayTheTaxman@earthlink.net by Tuesday, April 17, at 5:00 p.m. Please address the written testimony to:

Sen. John Griesheimer
Chairman of the Senate Economic Development, Tourism and Local Government Committee
State Capitol Building, Room 227
Jefferson City, MO 65101

The key points to hit in any testimony is that the MEDCode is a development tool that is similar to tax increment financing except that it is completely voluntary and flexible for all taxing districts. Taxing districts that want to participate may contribute any portion of any tax or none at all. It simply formalizes a process we already use to provide public infrastructure for projects. For the regional economic development districts, the bill allows us to form regional districts for regional economic development purposes and projects and allows the districts to impose a local sales tax or use other local financing to support the district’s projects. The regional economic development districts would receive NO state tax support – it is entirely a local tool.

MEDC wishes to thank Rep. David Pearce and Rep. Darrell Pollock for sponsoring the legislation and Senator Chris Koster for handling the bill in the Senate.

Senate Gives Initial Approval to Quality Jobs and Enhanced Enterprise Zone Legislation

2007-04-13T16:06:00.000-05:00

(April 13, 2007) On Wednesday evening, after considering 30 amendments, the Missouri Senate passed the Missouri Quality Jobs and Enhanced Enterprise Zone legislation. Nearly all of the 30 amendments were adopted and included such things as alternative fuels tax incentives, tax credits for home renovation to provide accessibility to disabled persons -- even a provision allowing hunting in flood plains. While many of the amendments will not survive the final conference negotiations, there is no shortage of good ideas in the bill. Ultimately, negotiators will determine the content of the final bill.

The bill includes a Land Assemblage Tax Credit for redevelopment of urban areas and increases the Quality Jobs tax credit limit to $30 million. The Enhanced Enterprise Zone tax credit limit would be increased to $25 million. The bill also contains a provision that would exempt all manufacturing inputs from sales and use taxes, making Missouri competitive with states like Kansas that already offer such an exemption. A report was just released on the impact of the manufacturing inputs sales tax exemption which you may view by visiting www.motaxpayers.com and selecting the "Reports" tab on the left side of the screen. You will also find a report showing the state receives $3.18 in taxes for each tax dollar invested in the Missouri Quality Jobs program at the same location.

The Senate Governmental Accountability and Fiscal Oversight Committee must review and approve the bill before it faces a final vote in the Senate. If approved, the bill will be returned to the House where it is expected the bill will be sent to "conference" for further negotiations. Rep. Ron Richard and Sen. John Griesheimer are leading the charge on this bill in each of their respective chambers and the Missouri Economic Development Council thanks them for their hard work in carrying this important legislation.

House Gives Final Approval to More MEDC Priorities

2007-04-05T15:04:00.000-05:00

(April 5, 2007) The Missouri House today gave final approval to HB 741, sponsored by Rep. David Pearce, and HB 131, sponsored by Rep. Shannon Cooper. Both measures will now move to the Senate for further consideration.

HB 741 contains the Missouri Economic Development Code and MEDC's Regional Economic Development District legislation. The Regional Economic Development District legislation was originally sponsored by Rep. Darrell Pollock, who added the provisions to HB 741 during debate on the bill last night. HB 131 contains the sales tax exemption for cities participating in Chapter 100 projects and the exemption of manufacturing inputs from sales and use taxes. The Chapter 100 and manufacturing inputs provisions were also included in a House committee substitute for SB 30 by Rep. Bryan Stevenson, Chairman of the House Tax Reform Committee.

Sen. John Griesheimer and Rep. Ron Richard continue to negotiate and prepare for Senate debate of HB 327, the Missouri Quality Jobs and Enhanced Enterprise Zone legislation, which could be debated as early as next week. Click here for the Senate Committee Substitute language.

The Missouri Economic Development Council thanks all those involved in moving our legislative agenda forward and encourages our members to communicate your support for these bills to your Senator and Representative. If you need contact information for your elected official, you may click on "Legislator Lookup" at right.

ALL MEDC PRIORITY LEGISLATION HAS RECEIVED INITIAL APPROVAL IN THE MISSOURI HOUSE!!!

2007-04-04T23:05:00.000-05:00

(Wednesday, April 4, 2007) Thanks to the commitment of leadership in the House, all of the Missouri Economic Development Council’s legislative priority issues have received initial approval in the Missouri House! This is an extraordinary accomplishment given the number of priority issues and the complexity of some of our issues. The MEDC thanks the sponsors of each of the bills and leadership for devoting considerable floor time to our economic development legislation so far this session. Leading the charge in the House: Rep. Ron Richard, Rep. David Pearce, Rep. Darrell Pollock, Rep. Larry Wilson, Rep. Doug Ervin, Rep. Shannon Cooper, Rep. Bryan Stevenson, Rep. Steve Hobbs, and the leadership of the House (Speaker of the House Rod Jetton, Speaker Pro Tem Carl Bearden, and Majority Floor Leader Tom Dempsey).

Our highest priority bills contain increases in the tax credit limits for the Missouri Quality Jobs and Enhanced Enterprise Zone programs and an extension of the New Jobs Training Program. The Senate version of the legislation also contains a land assemblage tax credit. The House bill passed the House with a complete removal of the tax credit limits. The Senate committee changed the tax credit limits to $30 million for Quality Jobs and $25 million for Enhanced Enterprise Zones. The Senate Committee Substitute for HCS HB 327, sponsored by Rep. Ron Richard, has been approved by the Senate committee and the bill is on the Senate calendar. The Senate committee’s 134 page version of the bill includes several additional issues: disabled tax credit for home modification, new markets tax credits, film production tax credits, a vocational school taxing district for southeast Missouri, and transferability of all tax credits. The Senate version of the bill, SB 282, sponsored by Sen. John Griesheimer, is on the Senate Informal Perfection Calendar, and chances for passage dwindle with each passing day. The Senate version boosts the tax credit limits to $50 million for Quality Jobs and $25 million for Enhanced Enterprise Zones. Please contact your Senators and let them know one of these bills MUST pass to keep these most valuable programs alive. You may also let them know that a recent study by the Taxpayers Research Institute of Missouri shows the program creates a positive impact on state tax revenues because each state dollar invested produces an average of $3.18 in additional state tax revenue. For a copy of the report and a breakdown of projects in each county, you may visit www.motaxpayers.com and click on the “Reports” tab. The report was presented to the Senate Committee on Economic Development, Tourism and Local Government and has also been distributed to all senators.

Two more priority issues, the Missouri Economic Development Code, HB 741, sponsored by Rep. David Pearce and the Missouri Regional Economic Development District bill, HB 688, sponsored by Rep. Darrell Pollock, were combined during House floor debate. The bill received initial House approval on April 4, 2007.

The Missouri Regional Economic Development Districts bill was also heard in the House committee and was approved as part of a committee substitute for HB 624, sponsored by Rep. Larry Wilson. This bill has also been cleared for debate by the full House.

Another top legislative priority is our sales tax exemption for cities involved in Chapter 100 projects. HB 130, sponsored by Rep. Shannon Cooper, has been approved by the House Ways and Means Committee. We added this language to HB 131, also sponsored by Rep. Shannon Cooper, and it has now received initial House approval and awaits a final House vote (see more below).

The Small Business Growth Act, HCS HB 365, 804 & 805 received initial House approval this week. The bill, sponsored by Rep. Doug Ervin, contains MEDC’s Quality Jobs Lite legislation allowing smaller employers to reap benefits similar to the Quality Jobs program when adding new employees. The committee substitute also contains two other tax credits designed to stimulate investments in small businesses: the Small Business Investment Tax Credit and Missouri Technology Corporation Tax Credit. The bill now faces one additional vote and then it will be sent to the Senate for further debate.

As we noted in earlier posts, HB 131, sponsored by Rep. Shannon Cooper, would allow economic developers to promote Missouri as a “manufacturing-friendly” state by eliminating the sales tax on all manufacturing inputs. All utilities, chemicals, materials, machinery and equipment used in manufacturing and research and development would be exempted by the bill. The bill carries a relatively small price tag because most of these items are already exempted, but the bill eliminates the uncertainty faced by manufacturers due differences in interpretation of the current law by tax collectors and taxpayers. The bill would put Missouri on equal footing with other states, such as Kansas, that already exempt all manufacturing inputs from sales tax. The bill has now received initial approval in the House and should receive a final vote this week. A similar bill, SB 585, sponsored by Sen. Jason Crowell, was heard in the Senate committee this week. The manufacturing inputs exemption has also been added to HB 327 (Quality Jobs and Enhanced Enterprise Zones), SB 706, and HB 1089 (a bill dealing with nexus) and is likely to be added to many more bills as the session progresses.

Following is a brief synopsis of the status of MEDC supported or tracked legislation. You may find more information on these issues in earlier posts below and also in the “Blog Archive”, or you may click the link for each bill.

ADDITIONAL BILLS OF INTEREST 2007 SESSION
Bill Number(s)	Description	Status
HB 74	Allows Rural Empowerment Zones in counties with 16,000 or fewer inhabitants	PASSED HOUSE – REFERRED TO SENATE COMMITTEE
HB 360	Provides additional film production tax credits	HOUSE PERFECTION CALENDAR
HB 448	Tax credit for state sales tax paid on Missouri manufactured automobile purchased in Missouri	HOUSE INITIALLY APPROVED
HB 768	Sales tax exemption for contractors performing contracts with MoDOT	HOUSE PERFECTION CALENDAR
HB 995	Tax credits for donations to regional economic development organizations	CLEARED FOR FULL HOUSE DEBATE
HB 1000	Eliminates the Corporation Income Tax for the first five years of a new manufacturer’s existence in Missouri	PASSED HOUSE COMMITTEE – REFERRED TO RULES COMMITTEE
SB 20	Tax increment financing law revision	SENATE PERFECTION CALENDAR
SB 199	Sales tax exemption for contractors performing contracts with MoDOT	PASSED SENATE - AWAITING COMMITTEE REFERRAL IN HOUSE
SB 376	Extends the sunset date for the Division of Tourism Supplemental Revenue Fund	PASSED SENATE – PASSED HOUSE COMMITTEE – REFERRED TO RULES COMMITTEE
SB 389	Includes the Lewis & Clark Discovery Initiative (financed through the sale of MOHELA assets)	SENATE INFORMAL PERFECTION CALENDAR
SB 400	Provides additional film production tax credits	SENATE INFORMAL PERFECTION CALENDAR
SJR 22	Constitutional amendment to allow tax relief for economic development purposes	REFERRED TO SENATE COMMITTEE

You may also find additional bills of interest by clicking here. For more information on this or other economic development legislation, please contact Ray McCarty, MEDC Legislative Consultant, at raythetaxman@earthlink.net.

Chapter 100 Sales Tax Exemption Receives Initial House Approval

2007-03-26T23:36:00.000-06:00

(March 26, 2007) Rep. Shannon Cooper (R-120, Clinton, pictured at left) today added MEDC's priority legislation exempting cities from sales tax liability in Chapter 100 lease and sale arrangements to a larger sales tax exemption bill (HB 131).

In December 2005, the Missouri Department of Revenue issued an opinion letter to the Department of Economic Development stating that leases and sales made by cities under Chapter 100 programs were subject to Missouri sales taxes. City governments and economic development professionals had believed such activities were consistent with the local governments' mission and that such transactions would be exempted under the constitution and Missouri statutes. As a result, cities did not collect sales taxes on these transactions. As news of the opinion letter circulated, our members found it more difficult to attract employers because of the sales tax liability and cities feared tax liability on projects already underway.

To resolve these questions, MEDC approached Rep. Cooper with legislation that would exempt sales and leases made by cities under Chapter 100 arrangements from sales tax, resulting in the amendment that was adopted today.

Rep. Cooper's actions have furthered MEDC's goal of passing the legislation this session and we sincerely thank him for his leadership and for his efforts on behalf of the MEDC.

To access more information about the bill, click here. The bill faces one more vote in the Missouri House before it may be sent to the Senate for further deliberation.

2007 Legislative Session Status Update

2007-03-19T00:12:00.000-06:00

(March 16, 2007) The Legislature has adjourned for Spring Break, giving us a chance to assess the success of our legislative priorities so far in the 2007 Legislative Session, and the Missouri Economic Development Council is pleased with the progress! MEDC salutes all sponsors of our legislation and all Representatives and Senators that have supported our legislation this year. This is a brief synopsis of the status of legislation. You may find more information on these issues in earlier posts below and also in the “Blog Archive”, or you may click the link for each bill.

Our highest priority bills contain increases in the tax credit limits for the Missouri Quality Jobs and Enhanced Enterprise Zone programs and an extension of the New Jobs Training Program. The senate version of the legislation also contains a land assemblage tax credit. The House version of the bill removes the tax credit limits altogether. HCS HB 327, sponsored by Rep. Ron Richard, has already passed the House and has received a hearing in Senate committee. The committee is expected to take action on the bill soon after legislators return from break. The Senate version of the bill, SB 282, sponsored by Sen. John Griesheimer, is on the Senate Informal Perfection Calendar, meaning it could be debated at any time. The Senate version boosts the tax credit limits to $50 million for Quality Jobs and $25 million. Please contact your Senators and let them know one of these bills must pass to keep these most valuable programs alive. You may also let them know that a recent study by the Taxpayers Research Institute of Missouri shows the program creates a positive impact on state tax revenues because each state dollar invested produces an average of $3.18 in additional state tax revenue. For a copy of the report and a breakdown of projects in each county, you may visit www.motaxpayers.com and click on the “Reports” tab. The report was presented to the Senate Committee on Economic Development, Tourism and Local Government last week and has also been distributed to all senators.

Another high priority bill is the Missouri Economic Development Code, HB 741, sponsored by Rep. David Pearce. The bill was heard and approved by the House committee and has been referred to the House Rules Committee, a necessary step before full House debate. If approved by the Rules Committee, the bill would be eligible for debate on its own, or it may be combined with another economic development related bill.

Rounding out our top legislative priorities is our sales tax exemption for cities involved in Chapter 100 projects. HB 130, sponsored by Rep. Shannon Cooper, has been approved by the House Ways and Means Committee, and will likely be combined with several other tax issues in a larger tax bill following the legislative break.

The Missouri Regional Economic Development Districts bill, HB 688, sponsored by Rep. Darrell Pollock, was heard in the House committee and was approved as part of a committee substitute for HB 624, sponsored by Rep. Larry Wilson. The bill has also been referred to the House Rules Committee.

The Small Business Growth Act, HCS HB 365, 804 & 805 remains on the House Perfection calendar and contains MEDC’s Quality Jobs Lite legislation allowing smaller employers to reap benefits similar to the Quality Jobs program when adding new employees. The committee substitute also contains two other tax credits designed to stimulate investments in small businesses: the Small Business Investment Tax Credit and Missouri Technology Corporation Tax Credit. The bill may be debated by the full House after they return from the break.

As we noted in earlier posts, HB 131, sponsored by Rep. Shannon Cooper, would allow economic developers to promote Missouri as a “manufacturing-friendly” state by eliminating the sales tax on all manufacturing inputs. All utilities, chemicals, materials, machinery and equipment used in manufacturing and research and development would be exempted by the bill. The bill carries a relatively small price tag because most of these items are already exempted, but the bill eliminates the uncertainty faced by manufacturers due differences in interpretation of the current law by tax collectors and taxpayers. The bill would put Missouri on equal footing with other states, such as Kansas, that already exempt all manufacturing inputs from sales tax. The bill is scheduled for debate by the House soon after they return from break. A similar bill, SB 585, sponsored by Sen. Jason Crowell, has been referred to committee in the Senate.

Other bills of interest and their current status:

ADDITIONAL BILLS OF INTEREST 2007 SESSION
Bill Number(s)	Description	Status
HB 74	Allows Rural Empowerment Zones in counties with 16,000 or fewer inhabitants	PASSED HOUSE - AWAITING COMMITTEE REFERRAL IN SENATE
HB 360	Provides additional film production tax credits	HOUSE PERFECTION CALENDAR
HB 448	Tax credit for state sales tax paid on Missouri manufactured automobile purchased in Missouri	HOUSE PERFECTION CALENDAR
HB 768	Sales tax exemption for contractors performing contracts with MoDOT	HOUSE PERFECTION CALENDAR
HB 995	Tax credits for donations to regional economic development organizations	REFERRED TO HOUSE COMMITTEE
HB 1000	Eliminates the Corporation Income Tax for the first five years of a new manufacturer’s existence in Missouri	HOUSE COMMITTEE HEARING COMPLETED
SB 20	Tax increment financing law revision	SENATE PERFECTION CALENDAR
SB 199	Sales tax exemption for contractors performing contracts with MoDOT	PASSED SENATE - AWAITING COMMITTEE REFERRAL IN HOUSE
SB 376	Extends the sunset date for the Division of Tourism Supplemental Revenue Fund	PASSED SENATE – REFERRED TO HOUSE COMMITTEE
SB 389	Includes the Lewis & Clark Discovery Initiative (financed through the sale of MOHELA assets)	SENATE INFORMAL PERFECTION CALENDAR
SB 400	Provides additional film production tax credits	SENATE PERFECTION CALENDAR
SJR 22	Constitutional amendment to allow tax relief for economic development purposes	REFERRED TO SENATE COMMITTEE

Final Week Before Break Could Be Busy One for MEDC Priorities

2007-03-11T00:11:00.000-06:00

The legislative Spring Break begins upon adjournment of the Senate and House Thursday, March 15, and ends when the House and Senate reconvene on Monday, March 26. As usual, the week before the break promises to be a busy one again this year, particularly for economic development legislation. This is also a good time to evaluate the progress of our priority legislation.

The Senate version of our Missouri Quality Jobs and Enhanced Enterprise Zone bill has been laid over for now, but the Senate Committee on Economic Development, Tourism and Local Government will hold a hearing on the House version of the bill on Wednesday, March 14, at 2:00 p.m. in the Senate Lounge. Because this committee has already heard the Senate bill, it is not necessary for many people to attend the hearing, but it is imperative that you contact your senators now and let them know you support both the House and Senate versions of the bill: HB 327 and SB 282. These bills also contain the extension of the New Jobs Training program and the Senate version also contains a land assemblage tax credit.

NOTE: If you need to find your Senator, please use the "Legislator Lookup" link at the right.

As we reported earlier this week, the Missouri Economic Development Code legislation, HB 741, was approved by the House Special Committee on Job Creation and Economic Development. The bill will now be referred to the House Rules Committee and then will be eligible for floor debate by the full House.

Our Chapter 100 sales tax exemption that would exempt cities from sales tax liability when doing a Chapter 100 project, HB 130, has been approved by the House Ways and Means Committee. It will likely become part of a larger tax bill.

The MEDC’s Regional Economic Development Districts bill, HB 688, was heard in the House Special Committee on Rural Community Development on February 28 and may be approved by the committee as early as its next meeting on Tuesday, March 13. The Committee Chairman has requested, and we have provided, an amendment to the legislation to allow cities and counties to impose any sales taxes for the benefit of the districts rather than allowing the districts to impose the tax themselves. There was some concern raised in committee that a larger community could “bully” a smaller community into a sales tax, even if voters in that community opposed such a tax. The amendment relieves this problem by allowing each city or county that is part of the regional district to levy its own sales tax, if it desires, for the benefit of the district. This will provide more flexibility for funding the district, allowing a mix of sales tax and other local government funding. These districts would not use any state funding.

The Small Business Growth Act, HCS HB 365, 804 & 805, is on the House Calendar and is ready for full House debate. The bill contains the Quality Jobs Lite legislation that is a MEDC priority that allows small employers to retain withholding taxes if they are adding jobs at 85% of county average wage and provides additional benefits if the small employer offers health insurance to employees. The bill also contains a Small Business Investment Tax Credit and a Missouri Technology Corporation Tax Credit to stimulate investment in small businesses.

Also of interest to many MEDC members is the exemption of utilities, chemicals, machinery and equipment used in manufacturing from sales tax that is contained in HB 131. This exemption would make Missouri competitive with other states like Kansas that provide such an exemption for manufacturing operations. If you are interested in learning more about this or other tax-related legislation you may want to click here and follow the “News” link on the left side of the page.

Missouri Economic Development Code Bill Clears Committee

2007-03-07T17:11:00.000-06:00

The House Special Committee on Job Creation and Economic Development heard and approved HB 741 on March 7, 2007. Sponsor Rep. David Pearce led the testimony and we thank Committee Chairman Rep. Ron Richard for his continued support of MEDC legislative priorities.

A special thanks to the following who invested their time and effort to appear in support of this legislation: John Bode, President of the Carthage Chamber of Commerce; Roy Hunter, Director of Marshall-Saline Development Corporation and Vice-Chair of the Public Policy Council of the MEDC; and Randy Allen, President of the Jefferson City Area Chamber of Commerce and Chairman of the Public Policy Council of the MEDC. We are extremely grateful for their contribution and for making this MEDC legislation a priority.

See more details on the bill in the article below. The bill will now be referred to the House Rules Committee.

Missouri Economic Development Code Hearing Scheduled

2007-03-05T13:25:00.000-06:00

NOTICE TO ALL MEDC MEMBERS:

Our MEDCode bill, HB 741, will be heard on Wednesday morning, March 7, at 8:00 a.m. in the House Special Committee on Job Creation and Economic Development in House Hearing Room 7 in the basement of the Capitol. We are extremely grateful to our sponsor, Rep. David Pearce (R-121, Warrensburg, pictured at left) for filing this bill on our behalf.

This bill allows local economic developers to continue establishing voluntary agreements between taxing districts and developers to use a portion of the new tax revenue generated by a project to help finance the public infrastructure necessary for the project. Under the bill, all amounts donated to the project are voluntary - a taxing district may donate all, a portion of, or none of the new tax revenue to the project; the projects must be for public projects (streets, sidewalks, public infrastructure, etc.); and no eminent domain may be used for the project.

If you would like to attend the hearing and testify, please contact Ray McCarty at raythetaxman@earthlink.net.

Missouri Quality Jobs Results by County Now Available

2007-03-01T14:34:00.000-06:00

The Taxpayers Research Institute of Missouri has added an appendix that shows the Missouri Quality Jobs program results, sorted by county. Now you can see projects within your county and the return on investment for each project. To access the appendix and the full report, just visit www.motaxpayers.com and click on "Reports" on the left side of the page.

Taxpayers Research Institute Issues Report on Missouri Quality Jobs

2007-02-22T16:27:00.000-06:00

The Taxpayers Research Institute of Missouri has issued a report showing the impact of the Missouri Quality Jobs Act. You may access the full report at www.motaxpayers.com - just click on the "Report" tab and then click on the cover of the report.

The report shows the program, originally championed by the Missouri Economic Development Council, has produced fantastic results: 12,500 jobs with an average annual wage of $46,856, returning $3.18 to the state for every dollar of tax money invested.

The MEDC thanks the sponsor of the legislation, Rep. Ron Richards, for his leadership in passing the bill in the House today (see full article below).

Missouri House Gives Final Approval to Quality Jobs and Enhanced Enterprise Zone Bill

2007-02-22T11:40:00.000-06:00

(February 22) The Missouri House today gave final approval to House Bill 327, sponsored by Rep. Ron Richard (see detailed article below). The bill received widespread bipartisan support and was approved by a vote of 157-0. The bill will now move to the Missouri Senate for further consideration.

Missouri House Approves Quality Jobs and Enhanced Enterprise Zone Bill

2007-02-21T12:39:00.000-06:00

(February 21) Following the lead of the bill's sponsor, Rep. Ron Richard (R-129, Joplin, pictured at left), the Missouri House gave initial approval today to the Missouri Quality Jobs and Enhanced Enterprise Zone legislation - a key part of the MEDC's legislative package for the 2007 legislative session. The bill was approved by a unanimous voice vote. Tax credit limits for both programs are removed in the House version of the bill.

Rep. Richard, who also serves as Chairman of the House Special Committee on Economic Development, said elimination of the tax credit limit was necessary for both programs. "Eliminating the limits on tax credits allows our state and local economic development professionals all over the state to work in a frictionless environment to attract and retain qauality jobs in Missouri", said Richard. "Our economic development professionals work hard to bring good paying jobs to this state and the legislature needs to give them the tools they need."

The Quality Jobs program has created more than 12,500 jobs with above average wages and health benefits in its first 19 months of operation. A study detailing more results of the Missouri Quality Jobs program is expected to be released later this week.

"This program has been an overwhelming success," said Richard, "and I am pleased that my colleagues put aside political differences to pass this quality jobs legislation." The MEDC thanks Rep. Richard, the entire committee and the leadership of the Missouri House for making this bill a priority.

Committees Approve Senate Quality Jobs and House Small Business Development Bills

2007-02-19T10:18:00.000-06:00

It was another extremely busy week for our economic development efforts and we are grateful for the attention that the House and Senate committees have shown to the MEDC's legislative agenda.

The Senate Committee on Economic Development, Tourism and Local Government on Wednesday approved the Senate version of the Missouri Quality Jobs and Enhanced Enterprise Zone reauthorization bill. The Senate Committee Substitute for SB 282 , offered by chairman Sen. John Griesheimer (R-26, Washington), provides a $75 million tax credit cap for Quality Jobs, $25 million for Enhanced Enterprise Zones, $12 million annually for a land assemblage tax credit, and extends the expiration date for the New Jobs Training program. The bill was amended in committee to eliminate the exclusion of telephone and cable companies as eligible companies for the Missouri Quality Jobs program and to allow the land assemblage tax credit for smaller areas as well as urban areas. The bill received a unanimous vote from the Senate committee.

The Committee also passed SB 20, a bill that revises tax increment financing procedures. Committee members, including Sen. Jason Crowell, noted that TIF is a tool that can be used well and Chairman Griesheimer agreed. The bill was passed by the committee on a unanimous 10-0 vote.

The Senate committee also heard a bill that would extend the expiration date of the Division of Tourism Supplemental Revenue Fund for five additional years to 2015. That fund receives a portion of the state sales taxes collected from businesses in certain SIC codes that benefit from tourism advertising and uses the money to help fund the Division of Tourism and to help in the promotion of tourism in Missouri. MEDC supported the bill.

Also on Wednesday, the House Committee on Small Business, chaired by Rep. Doug Ervin (R-35, Kearney, pictured at right), heard testimony on Rep. Ervin's HB 365, the Small Business and Entrepreneurial Growth Act, a MEDC priority bill that helps fill the gap for smaller businesses that are adding too few jobs to qualify for the Quality Jobs program. The bill helps small business owners overcome a portion of the additional governmental obligations that are incurred when the business adds employees by allowing the company to retain the withholding tax on new jobs, if they pay at least 85% of county average wage. The business may retain the withholding tax for two years if health insurance is provided for the new employees. The bill was combined with two other bills that were also heard at the hearing: HB 804 (small business investment tax credit) and HB 805 (tax credits for venture capital provided through the Missouri Technology Corporation). MEDC supported all three bills and the committee voted to pass the bills to the full House for debate.

On Tuesday, the House Rural Community Development Committee heard HB 74, sponsored by committee chairman Rep. Larry Wilson (R-119, Flemington, picutred at left) that would provide additional Rural Empowerment Zones in Missouri. The MEDC supported the bill which, if passed, would provide additional tax benefits to help stimulate economic development and job creation in poorer counties with high unemployment and low income. The bill was approved by the Committee and now will be considered by the full Missouri House of Representatives.

Committee Approves Quality Jobs and Enhanced Enterprise Zone Bills

2007-02-11T14:45:00.000-06:00

On Wednesday, February 7, 2007, the House Special Committee on Job Creation and Economic Development heard testimony on and approved two bills that are high priority bills for the MEDC: increases in the tax credit limits for the Missouri Qualify Jobs and Enhanced Enterprise Zone programs. In fact, in a show of bipartisan unity, the House committee unanimously passed the reauthorizing bills without a limit on the amount of tax credits that may be issued.

HB 327, sponsored by the chairman of the committee, Rep. Ron Richard (R-129 Joplin, pictured at right) originally would have increased the tax credit limits in the Missouri Quality Jobs Act by $12 million to $24 million. The Department of Economic Development supported this increase in tax credit limit. However, the chairman and many witnesses testifying for the program (including the MEDC) recommended elimination of the tax credit limits. Witnesses testified that the tax credit caps create uncertainty regarding the availability of the program when local economic developers are putting together deals to attract new employers into the state. Following the leadership of Chairman Richard, the committee passed the legislation and removed the tax credit limits. Rep. Richard said the committee's goal is to make this program as frictionless as possible for our economic developers so they may continue to use the program to create quality jobs in Missouri.

Originally passed as a direct result of the efforts of the MEDC and the Department of Economic Development in 2005, the Missouri Quality Jobs Act has created more than 12,000 jobs paying at least county average wage with health insurance benefits since its inception, exhausting the current tax credit cap of $12 million.

The Enhanced Enterprise Zone bill, HB 328, was combined into HB 327, meaning the bill will now include both the Missouri Quality Jobs provisions and the Enhanced Enterprise Zone (EEZ) provisions. The EEZ tax credit limit was also eliminated by the House committee. Click here to view the new bill, including these two provisions and an extension of the new jobs training program.

More than 20 witnesses from companies, agencies and associations testified in support of the two bills at the hearing, furnishing the committee examples of projects that had been attracted using the program. Many also discussed the negative impact the current tax credit limit had on their ability to attract deals because of the uncertainty that exists regarding the availability of tax credits under the program. Thanks to all who made the special effort to attend the hearing in support!

Testifying in support of the bill at the House committee hearing were representatives of the following (listed in order of appearance at the hearing): Missouri Department of Economic Development, Missouri Economic Development Council, Taxpayers Research Institute of Missouri, Associated Industries of Missouri, St. Louis Regional Chamber and Growth Association, Kansas City Economic Development Council, Cape Girardeau Area Chamber of Commerce, America's Heartland Economic Partnership (Lebanon), Joplin Area Chamber of Commerce, St. Louis Development Corporation, Missouri Chamber of Commerce and Industry, Duck Creek Technologies (Bolivar), Marshall-Saline Development Corporation, Jefferson City Area Chamber of Commerce, Economic Development Sedalia-Pettis County, Montgomery City Growth, City of Joplin, EaglePicher Technologies, St. Louis Community College, Missouri Community College Association, Johnson County Economic Development Corporation, Missouri Association for Community Action, Monsanto, Greater Kansas City Chamber of Commerce, Metropolitan Community College (Kansas City), Springfield Area Chamber of Commerce, Northeast Missouri Economic Development.

The Senate Commitee on Economic Development, Tourism and Local Government also held a hearing the same day on similar bills sponsored by Sen. John Griesheimer (R-26, Washington). A committee substitute was presented to the committee that included a land assemblage tax credit, supported by Lt. Governor Peter Kinder and others. Because the bills were heard as part of a docket of many bills at the hearing, those testifying were asked to keep comments brief. The land assemblage tax credit would authorize a tax credit to help offset the costs of assembling large tracts of land for development exceeding 75 acres. The Senate committee took no action on the bills at the hearing.

Missouri Economic Development Code Bill Filed in House

2007-02-05T16:16:00.000-06:00

(Feb. 5, 2007) Rep. David Pearce (R-121, Warrensburg) filed the Missouri Economic Development Code bill today. HB 741 is co-sponsored by Rep. Ron Richard, chairman of the House Special Committee on Job Creation and Economic Development.

The MEDCode will allow taxing districts to allocate a portion of their future tax revenues that would result from a project to help finance the project, similar to tax increment financing, but with some important differences. First, all amounts allocated to a project are strictly voluntary. The projects must be public projects (including infrastructure such as streets or publicly owned buildings). Because the program is strictly voluntary, there is no need for a "blight" designation and the program may be used for initial development as well as redevelopment. Also because the program is voluntary, we have addressed objections of school districts to other programs. School districts have objected to having their tax revenue involuntarily redirected without their approval under some existing programs, particularly when the project is a residential project. In a residential project, the school district's workload increases with the number of additional students resulting from the development but the school district receives no additional property tax revenue from such projects. Under the MEDCode, school districts could allocate part or all of their future tax revenue from a project, or nothing at all.

The opportunity the MEDCode will provide for economic developers around the state is obvious. In fact, many local economic developers are already using a similar arrangement and this bill will ensure those developments may continue.

We applaud Rep. Pearce's leadership in filing this important legislation and look forward to working with him for its passage in the coming months.

Busy Week for Economic Development (week ending February 2, 2007)

2007-02-04T01:15:00.000-06:00

The House Special Committee on Job Creation and Economic Development held an organizational meeting on Wednesday. Chairman Ron Richard invited Greg Steinhoff, Director of the Department of Economic Development, to share the department's legislative agenda and recent efforts to best utilize the resources of the department to promote Missouri as a great place to do business.

Steinhoff explained the department is now focused on improving the business climate and improving Missouri's ability to compete for business from outside the state, while preserving Missouri jobs, improving Missouri communities through projects like Governor Blunt's Dream Initiative, using the Hawthorn Foundation to enhance recruitment and retention efforts, and efforts to promote entrepreneurship. The director also cited the construction projects that will be funded through the sale of MOHELA assets as a great opportunity to provide an environment for the growth and start up of new companies.

Director Steinhoff asked for the committee's support of the department's legislative package and noted the support and assistance of the Missouri Economic Development Council and other partners in developing legislation the committee will consider beginning next week.

Chairman Richard then invited me to testify regarding MEDC's legislative proposals. I explained the history of the Missouri Quality Jobs legislation for the new committee members and how we had drafted the legislation in cooperation with the Department of Economic Development following the Taimerica study. I explained the Taimerica study had noted the success of similar programs in other states and how we had carefully adapted the program for use in Missouri. Since MEDC and the DED teamed up to pass this legislation in 2005, more than 18,000 jobs have been created or will be created under new projects using the program - a monumental success by any standard. We reiterated our support for the Quality Jobs and Enhanced Enterprise Zone legislation that will be heard in the committee next week (see article below for location and time) and our support for eliminating all caps on these programs.

In other action this week, the Senate Economic Development, Tourism and Local Government Committee heard Chairman John Griesheimer's (R-26, Washington) tax increment financing legislation, SB 20. The bill would restrict the use of tax increment financing in previously undeveloped areas in St. Louis, St. Charles, Jefferson and Franklin Counties and the City of St. Louis. Senator Griesheimer explained the bill was the same bill that passed the Senate last session with the addition of a blight study. He said it was his opinion that if a bill did not pass to restrict tax increment financing in a reasonable manner, an initiative petition may be used to eliminate the use of tax increment financing altogether. He urged the members of the audience to work together to find consensus this year. During debate, Sen. Chris Koster (R-31, Harrisonville) expressed his intent to propose a constitutional change to allow tax increment financing for economic development purposes without a finding of blight. Supporters of Senator Griesheimer's bill included the Kansas City Economic Development Council and the Missouri Economic Development Financing Association. There was no opposition expressed to the committee, although the Missouri School Boards Association testified they would like to see some changes in the bill. The St. Louis County Municipal League testified they would like to see all areas of the state treated equally as the TIF law is changed.

HB 103, a similar bill filed by Rep. Chuck Portwood (R-92, St. Charles) was referred to committee in the House.

The Senate committee also heard SB 89 from Sen. Matt Bartle (R-8), a bill that would exclude headquarters of gaming establishments from eligibility for the Quality Jobs program. Speaking in support of the bill was the Missouri Baptist Convention, Missouri Family Network and Casino Watch. The Missouri Gaming Association and the Missouri Chamber of Commerce opposed the legislation.

In other action, our bill that would exempt sales and leases of property by local governments under Chapter 100 arrangements, HB 130, was referred to the House Ways and Means Committee on Thursday. The bill is sponsored by Rep. Shannon Cooper (R-120, Clinton). The Missouri Department of Revenue recently opined that such arrangements should be subject to sales and use taxes, necessitating the legislation.

I was also privileged to address a group of city and county officials attending St. Charles County Day at the Capitol, sponsored by the municipalities of St. Charles County. I presented a primer on MEDC's 2007 legislative recommendations and answered questions from the group regarding economic development issues.

Regional Economic Development District Bill Filed

2007-02-04T00:51:00.000-06:00

Rep. Darrell Pollock (R-146, Lebanon) has filed MEDC's Regional Economic Development District bill that will allow economic development professionals and city and county leaders to use a broader, regional approach to economic development projects that benefit an entire region. The bill is HB 688.

The legislation will allow smaller communities to band together to achieve more than they can achieve on their own. If successful, this legislation will allow city and county governments to cooperate in forming districts, similar to transportation development districts, for economic development purposes. Like transportation development districts, the entire region would benefit from projects undertaken by the districts and financing would be provided by taxes generated within the district. An example of a practical use for this approach is a regional airport or convention center that may attract industry to an entire region.

The MEDC has included this legislation in our legislative package for 2007 and we are excited Rep. Pollock has decided to champion this legislation for us. Rep. Pollock was instrumental in sponsoring and passing the local economic development sales tax in 2005.

ALERT!!! First Hearings Scheduled on Quality Jobs and Enhanced Enterprise Zones

2007-01-30T18:08:00.000-06:00

Rep. Ron Richard, Chairman of the House Special Committee on Job Creation and Economic Development, has confirmed the first hearing of our legislation to enhance the Missouri Quality Jobs and Enhanced Enterprise Zones programs will be held February 7, 2007, at 8:00 a.m., in Hearing Room 7 in the basement of the Capitol. You may find more information on the House bills by clicking these links: HB 327 (Quality Jobs) and HB 328 (Enhanced Enterprise Zones).

Sen. John Griesheimer, Chairman of the Senate Economic Development, Tourism and Local Government Committee will also hold the first hearings on the companion bills in the Senate at 2:00 p.m. that afternoon in the Senate Lounge on the third floor of the Capitol. The Senate bills are SB 282 (Quality Jobs) and SB 283 (Enhanced Enterprise Zones).

Since you will be at the Capitol anyway, you could use the time between the two hearings to talk to your local legislator about the importance of these two bills to economic development in your area.

If you cannot make it to the hearing yourself, please consider sending someone else that may be able to provide testimony on the benefits of the Quality Jobs and Enhanced Enterprise Zones in your area. If you cannot attend but have examples or other valuable testimony, please send them to me here by this Friday, February 2.

Please put the hearing on your calendar. I look forward to seeing you there.

Committees Begin Work on Issues

2007-01-26T13:22:00.000-06:00

Committees have been appointed and a few committee hearings were held this week, including a Wednesday hearing of the Senate Economic Development, Tourism and Local Government Committee, chaired by Senator John Griesheimer (R-26). The committee heard seven bills, including four "consent" bills.

The "consent" designation was originally used to pass legislation necessary to transfer property from the state to local governments and has been expanded over the years to include bills that are generally non-controversial, have no cost and no revenue gain for the state or local governments. "Consent bills" enjoy special treatment with a special calendar and the number of consent bills that may be passed by a committee is not limited as it is with other bills.

The committee considered one such consent bill, SB 81 (Sen. Griesheimer) that would allow the City of Sullivan to impose a tourism room tax in the city and in the nearby Meramec Caverns area. There was no opposition voiced to the proposal and no action was taken on the proposal.

HB 327, a bill sponsored by Rep. Ron Richard (R-129) to increase the tax credit cap on the Missouri Quality Jobs program and HB 328 (also sponsored by Rep. Richard) regarding Enhanced Enterprise Zones have been referred to the House Special Committee on Job Creation and Economic Development, which is chaired by Rep. Richard. These two bills are priorities for the MEDC and we are pleased they are both poised for early consideration by the committee. HB 448, a bill sponsored by Rep. Michael Spreng (D-76) that exempts all motor vehicles assembled and sold in Missouri from sales and use tax has also been referred to the committee. The committee plans to meet next Wednesday, January 31, at 8:00 a.m for an organizational meeting. No legislation has been posted for consideration at this hearing.

An organizational meeting of the House Special Committee on Small Business has also been posted for Wednesday, January 31, also at 8:00 a.m. The committee plans to hear presentations from service providers for small businesses and entrepreneurs.

Also on Wednesday, the Senate Committee on Economic Development Tourism and Local Government plans to meet at 2:00 to consider SB 89 by Senator Matt Bartle (R-8) a bill that would disqualify gaming establishments from the Quality Jobs program and SB 20 by Senator Griesheimer relating to tax increment financing.

NOTE: Additional hearings may be posted or hearing times and places adjusted up to 24 hours before the hearing, so if you plan to travel to Jefferson City to attend a hearing, you may want to check the full hearing schedules before you leave and be sure the bill you are interested in is still on the list for consideration. You may access the hearing lists through the links at the right-top of this page. Also, you may obtain additional information on each of the bills in this article by clicking on the link for each bill.

Governor Matt Blunt's Plan for Tax Reform and Economic Development in 2007

2007-01-26T00:41:00.000-06:00

Governor Matt Blunt delivered the State of the State speech Wednesday night. The speech was carried live and by delayed broadcast by a number of stations across Missouri. If you missed the speech, you may view the video or read the text.

Regarding economic development, the Governor announced support for increasing the Missouri Quality Jobs program cap from $12 million to $24 million and an additional $4 million in increased cap for the Missouri Agricultural and Small Business Development Authority Tax Credits. He also lent his support to Speaker Rod Jetton's plan to eliminate state income taxes on social security, recommended raising the filing threshold for corporation franchise taxes from $1 million to $15 million only if the employer offered employees health insurance and paid at least 50% of the premiums, and recommended making amounts paid for long term disability insurance fully deductible.

Governor Blunt also announced measures designed to raise about $30 million in tax revenue by overturning recent sales tax decisions by the courts that taxpayers have won in recent years, including the Southwestern Bell court case that allowed telecommunications to be treated like other manufacturers for sales tax purposes and the DST case that allowed full sales tax exemption for items purchased and used at least partially for an exempt purpose. Governor Blunt also recommended a change in the treatment of rentals for sales tax purposes, but details of that proposal were not readily available.

Regarding tax reform and economic development, here is an outline of the plan:

$132.7 million tax relief (detailed below)

Minus $30 million tax increase resulting from:

overturning the Southwestern Bell decision,
allowing prorating of sales tax exemptions, and
one other change regarding leases that is not fully explained in the budget summary

Equals $102.7 million net tax reduction.

The tax relief is further detailed as follows:

$100 million to exempt social security benefits from income tax
$ 12 million to increase the cap of the Missouri Quality Jobs program
$ 4 million to increase the cap on Missouri Agricultural and Small Business Development Authority Tax Credits
$ 2.7 million to increase the long-term care insurance deduction from 50% to 100%
$14 million to increase the Corporation Franchise Tax filing threshold from $1 million to $15 million if the employer provides health insurance to employees and pays at least 50% of the premiums as provided in the Quality Jobs program.

Senate "Works" Late, House Adopts Rules

2007-01-22T12:51:00.000-06:00

Last week, the Missouri Senate was brought to a standstill over a matter that is usually routine: approval of gubernatorial appointments.

The governor submits appointees to the Missouri Senate for confirmation and those appointments are referred to a special committee that considers the appointments and returns those that are approved to the full Senate for a final vote. If the appointment survives committee review, approval on the Senate floor is usually somewhat ceremonial.

Senator Matt Bartle (R-8) filibustered the appointment of Warren Erdman to the University of Missouri Board of Curators because of Erdman's support of embryonic stem cell research, which Senator Bartle opposes. The filibuster began on Thursday afternoon and lasted more than 12 hours. In the end, the appointment was confirmed by the Senate early Friday morning.

The Senate committees have been appointed and begin their meetings this week. You may follow the link at the right to the Missouri Senate website for more information on scheduled hearings.

In the Missouri House, a lengthy debate over House rules finally resulted in approval of new rules that give the Speaker of the House more latitude in appointments of minority party members to committees and reduces the number of committee members. While Republican members of committees have been appointed, Democrat members have yet to be appointed. Hearings will begin after the committees have been fully appointed.

Senate and House Committee Chairs Appointed

2007-01-15T00:27:00.000-06:00

Committee chairs were appointed during the second week of the 2007 Legislative Session, and committee members were also named in the Missouri Senate. Selection of House members for appointment to the various committees is not expected to be completed for another week or so.

In the House...
Rep. Ron Richard was re-appointed Chairman of the House Committee on Job Creation and Economic Development, the committee likely to consider most economic development legislation MEDC will be promoting or tracking this session. In addition, Rep. Richard will sponsor or co-sponsor many pieces of MEDC priority legislation for 2007.

Rep. Doug Ervin was again appointed Chairman of the House Committee on Small Business and will sponsor our Small Business and Entrepreneurial Growth Act and other bills important to small and growing businesses.

Rep. Vicki Schneider was appointed Chairperson of the House Committee on Local Government, a committee that considered the TIF reform bills last session and will likely consider any such bills during the 2007 session, along with other bills dealing primarily with local government issues.

Listen to the press announcement or print the full list of committee chairs from House Communications:
House Committees Audio
All House Committee Chair Appointments

And in the Senate...
Senator John Griesheimer will again serve as Chairman of the Senate Economic Development, Tourism and Local Government Committee. In addition to considering nearly all economic development issues, Senator Griesheimer's committee will likely handle any TIF reform legislation.

The Senate Small Business, Insurance and Industrial Relations Committee will again be chaired by Senator John Loudon.

For more information, follow this link:
All Senate Committee Appointments

Missouri Senate and Missouri House Called to Order

2007-01-14T23:24:00.000-06:00

The opening days of the Missouri's 2007 Legislative Session were filled with tradition, ceremony and speeches. Families and friends gathered to watch the legislators as they were sworn into office, and many new legislators were busy readying their offices. No real action on legislation will occur for the first couple of weeks as legislators spend time adopting rules and appointing committees. If you would like to listen to or read the opening day speeches by the leaders of the House and Senate, please click the links below.

House Speaker Rod Jetton's Opening Day Address:
Audio
Text

Senate President Pro Tem Michael Gibbons' Opening Day Address:
Video
Audio
Text

2007 Legislative Session Begins Tomorrow

2007-01-02T15:14:00.000-06:00

The holiday season is over and the legislative season is ready to begin.

MEDC has decided to pursue several legislative priorities, including updates to the Missouri Quality Jobs and Enhanced Enterprise Zone programs. MEDC was the main architect of the Missouri Quality Jobs program that has created thousands of jobs since it was signed into law by Governor Matt Blunt just two years ago. We are now ready to increase funding and make the program even more attractive to site developers and employers looking for a great place to do business.

We will also pursue new initiatives like the Small Business and Entrepreneurial Development Act, designed to help independent businesses grow in Missouri, and the Missouri Economic Development Code that will provide developers with the tools they need to provide infrastructure for new developments in previously undeveloped areas.

We will post updates on the progress of our legislative priorities on this blog, so subscribe or check back often!

Missouri Economic Development Council (MEDC) Legislative Update

Economic Development Bill Passes in Final Hours of 2009 Session

Eminent Domain Proposition Fails To Obtain Signatures

DED Unveils Enhanced Enterprise Zone Map Tool

Eminent Domain Restrictions May Appear on Ballot in November 2008

"OFFICIAL BALLOT TITLE AS CERTIFIED BY SECRETARY OF STATE

"OFFICIAL BALLOT TITLE AS CERTIFIED BY SECRETARY OF STATE

Governor Blunt Signs Omnibus Economic Development Bill

Governor Signed Mega Project Legislation

Economic Development Bill Details

2008 Session Complete

ECONOMIC DEVELOPMENT BILLS PASSED

URGENT ACTION NEEDED!!!

FINAL WEEK!

Mega Projects Bill Passed by the Legislature

Mega Projects Legislation Passes Missouri Senate

Economic Development Bill Sent Back To Committee!

House Committee Approves Senate Economic Development Bill

MEDC Supports Bill to Protect Intellectual Property Rights

MEDC Supports Mega Projects Bill

Rep. Pearce Leads House Passage of Economic Development Bill

MEDC Supports Mega-Project Legislation

Telecommunications and Economic Development

Missouri Right To Life Letter May Endanger Economic Development Bill

House Takes Up Economic Development Bill - Briefly

SENATE PASSES ECONOMIC DEVELOPMENT BILL!

House Committee Approves Economic Development Package

Senate Gives First Round Approval to Economic Development Bill!

Economic Development Bills Moving

Senate Economic Development Bill Debated

Rep. Pearce Files MEDC Priority Economic Development Bill

Senator Harry Kennedy Files Economic Development Bill in Senate

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

2008 Bills of Interest Now Available

Committee Approves MEDC Priority for Further Discussion

MEDC 2008 Legislative Priorities

Rep. David Pearce and MEDC Legislative Consultant Testify on MEDCode

Governor Blunt Signs Economic Development Bill - Quality Jobs Boost Effective Today!

ECONOMIC DEVELOPMENT BILL FINALLY PASSED

SENATE APPROVES ECONOMIC DEVELOPMENT BILL

Senator Griesheimer Takes Lead on Economic Develoment Bill in Senate

House Passes Economic Development Bill - Next Stop: Missouri Senate

Representative Ron Richard Files Economic Development Bill

Details of Governor Blunt's Special Session Call

Back To Work!!! Governor Calls Special Session

2007 Legislation Affecting MEDC (FINAL)

Governor Blunt Vetoes Economic Development Bill

Missouri Ranks High in Recruitment and Retention Rankings by "Expansion Management"

Governor Matt Blunt Signs MEDC Regional Economic Development Bill

Quality Jobs Act Producing Results

Governor Matt Blunt Signs MEDC Chapter 100 Sales Tax Exemption Into Law

Governor Attends Ribbon Cutting for Quality Job Recipient

2007 MEDC Legislative Wrap Up

2007 Final Legislation Affecting MEDC

House Summaries of Finally Passed Bills Now Available

Chapter 100 Sales Tax Exemption

Regional Economic Development District Bill Survives

MEDCode and Regional ED Bill Gutted By Senate...

Legislature Finally Passes Manufacturing Inputs and Chapter 100 Sales Tax Exemptions!

Missouri Economic Development Omnibus Bill Passed by Legislature

Motion Made on Quality Jobs and Enhanced Enterprise Zones

SB 30 Includes Chapter 100 Sales Tax Exemption

Major Economic Development Bill Needs Your Help

Quality Jobs Bill Update

Your Support Needed on HB 327!

All MEDC Priorities Still Alive with 3 Weeks To Go!

Chapter 100 and Manufacturing Inputs Sales Tax Exemptions Advance

MEDCode and Regional Economic Development District Bill Moves Forward

Quality Jobs and Enhanced Enterprise Zone Bill Continues to Advance

Senate Committee to Hear MEDC Priority Legislation

Senate Gives Initial Approval to Quality Jobs and Enhanced Enterprise Zone Legislation

House Gives Final Approval to More MEDC Priorities

ALL MEDC PRIORITY LEGISLATION HAS RECEIVED INITIAL APPROVAL IN THE MISSOURI HOUSE!!!

Chapter 100 Sales Tax Exemption Receives Initial House Approval

2007 Legislative Session Status Update

Final Week Before Break Could Be Busy One for MEDC Priorities

Missouri Economic Development Code Bill Clears Committee

Missouri Economic Development Code Hearing Scheduled

Missouri Quality Jobs Results by County Now Available

Taxpayers Research Institute Issues Report on Missouri Quality Jobs

"OFFICIAL BALLOT TITLE AS CERTIFIED BY
SECRETARY OF STATE

"OFFICIAL BALLOT TITLE AS CERTIFIED BY
SECRETARY OF STATE