Economic Development Bill Sent Back To Committee!

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

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

House Committee Approves Senate Economic Development Bill

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

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

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

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

Ray McCarty

MEDC Supports Bill to Protect Intellectual Property Rights

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

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

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

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

MEDC Supports Mega Projects Bill

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

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

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

Rep. Pearce Leads House Passage of Economic Development Bill

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

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

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