Bill Summary – FastDemocracy

SECOND REGULAR SESSION
                       HOUSE BILL NO. 3329
                              103RD GENERAL ASSEMBLY


                            INTRODUCED BY REPRESENTATIVE THOMPSON.

    6238H.01I                                                                    JOSEPH ENGLER, Chief Clerk


                                               AN ACT
    To repeal sections 99.1205, 100.260, 100.270, 100.293, 135.313, 135.500, 135.503, 135.505,
           135.508, 135.516, 135.517, 135.520, 135.523, 135.526, 135.529, 135.530, 135.535,
           135.545, 135.546, 135.679, 135.680, 135.682, 135.700, 135.710, 135.766, 135.800,
           135.950, 135.953, 135.957, 135.960, 135.963, 135.967, 135.968, 135.970, 135.973,
           135.1125, 137.123, 148.330, 148.350, 173.196, 190.465, 320.092, 320.093, 348.302,
           348.304, 348.306, 348.308, 348.310, 348.312, 348.316, 348.318, 620.635, 620.638,
           620.641, 620.644, 620.647, 620.650, 620.653, 620.1875, 620.1878, 620.1881,
           620.1884, 620.1887, 620.1890, 620.1910, 620.2010, 620.2020, and 620.2600,
           RSMo, and section 348.300 as enacted by senate bill no. 7, ninety-sixth general
           assembly, first extraordinary session, and section 348.300 as enacted by house bill no.
           1, ninety-fourth general assembly, first extraordinary session, and to enact in lieu
           thereof thirteen new sections relating to tax credits.


    Be it enacted by the General Assembly of the state of Missouri, as follows:

           Section A. Sections 99.1205, 100.260, 100.270, 100.293, 135.313, 135.500, 135.503,
 135.505, 135.508, 135.516, 135.517, 135.520, 135.523, 135.526, 135.529, 135.530, 135.535,
 135.545, 135.546, 135.679, 135.680, 135.682, 135.700, 135.710, 135.766, 135.800, 135.950,
 135.953, 135.957, 135.960, 135.963, 135.967, 135.968, 135.970, 135.973, 135.1125,
 137.123, 148.330, 148.350, 173.196, 190.465, 320.092, 320.093, 348.302, 348.304,
 348.306, 348.308, 348.310, 348.312, 348.316, 348.318, 620.635, 620.638, 620.641,
 620.644, 620.647, 620.650, 620.653, 620.1875, 620.1878, 620.1881, 620.1884, 620.1887,
 620.1890, 620.1910, 620.2010, 620.2020, and 620.2600, RSMo, and section 348.300 as
 enacted by senate bill no. 7, ninety-sixth general assembly, first extraordinary session, and

    EXPLANATION — Matter enclosed in bold-faced brackets [thus] in the above bill is not enacted and is
    intended to be omitted from the law. Matter in bold-face type in the above bill is proposed language.
HB 3329                                           2

 section 348.300 as enacted by house bill no. 1, ninety-fourth general assembly, first
 extraordinary session, are repealed and thirteen new sections enacted in lieu thereof, to be
 known as sections 100.260, 100.270, 100.293, 135.530, 135.800, 137.123, 148.330, 148.350,
 190.465, 320.092, 620.1910, 620.2010, and 620.2020, to read as follows:
             100.260. 1. There are hereby created four special funds, to be known as the
 "Industrial Development and Reserve Fund", the "Industrial Development Guarantee Fund",
 the "Export Finance Fund", and the "Jobs Now Fund", into which the following may be
 deposited as and when received and designated for deposit in one of such funds:
         (1) Any moneys appropriated by the general assembly for use by the board in
 carrying out the powers set forth in sections 100.250 to 100.297;
         (2) Any moneys made available through the issuance of revenue bonds under the
 provisions of sections 100.250 to [100.295] 100.297;
         (3) Any moneys received from grants or which are given, donated, or contributed to
 the fund from any source;
         (4) Any moneys received in repayment of loans or from application fees, reserve
 participation fees, guarantee fees and premium payments as provided for under sections
 100.250 to 100.297;
         (5) Any moneys received as interest on deposits or as income on approved
 investments of the fund;
         (6) Any moneys obtained from the issuance of revenue bonds or notes by the board;
         (7) Any moneys that were in the industrial development fund authorized by this
 section, the economic development reserve authorized by section 620.215, or the industrial
 revenue bond guarantee fund authorized by section 620.240, respectively, as of September 28,
 1985; and
         (8) Any moneys obtained from any other available source.
         2. The development and reserve fund, the guarantee fund, the jobs now fund, and the
 export finance fund shall be administered by the board as provided in sections 100.250 to
 100.297. Separate accounts may be created within the development and reserve fund and the
 guarantee fund for moneys specifically appropriated, donated or otherwise received for
 industrial development purposes. The board may also create such other separate accounts
 within any of such funds as deemed necessary or appropriate by the board to carry out the
 duties and purposes of sections 100.250 to 100.297. All such separate accounts may be
 administered by a corporate trustee on behalf of the board upon the terms and conditions
 established by the board.
         3. Moneys in the jobs now fund, the development and reserve fund, the guarantee
 fund, and the export finance fund shall be invested by the board in the manner prescribed by
HB 3329                                            3

 the board and any interest earned on invested moneys shall accrue to the benefit of the
 respective fund.
         4. None of the funds and accounts of the board shall be considered a state fund, and
 money deposited therein may not be appropriated therefrom, nor shall any money deposited
 therein be subject to the provisions of section 33.080.
         5. The commissioner of administration shall annually calculate the increased amount
 of revenue to the state treasury due to the provisions of sections 135.155[,] and 135.286[,
 135.546, and subsection 7 of section 620.1039,] as enacted or modified by this act and shall
 allocate up to twelve million dollars of such revenue to the jobs now fund.
             100.270. The board shall have the power to:
         (1) Sue and be sued in its official name;
         (2) Adopt and use an official seal;
         (3) Confer with agencies of the state and development agencies, and with
 representatives of business, industry, and labor for the purpose of promoting the economic
 development of this state;
         (4) Consider and review applications for loans to be made from the development and
 reserve fund or for loans, bonds or notes to be made by or secured by the development and
 reserve fund, the guarantee fund, the export finance fund or the infrastructure development
 fund or any other available money, under sections 100.250 to 100.297, and for grants or loans
 to be made by or secured by the jobs now fund;
         (5) Enter into agreements with development agencies, borrowers, participating
 lenders and others to implement any of the provisions of sections 100.250 to 100.297;
         (6) Direct disbursements from the development and reserve fund, the guarantee fund,
 the export finance fund, the infrastructure development fund, and the jobs now fund as
 provided in sections 100.250 to 100.297;
         (7) Administer the development and reserve fund, the guarantee fund, the export
 finance fund, the infrastructure development fund, and the jobs now fund and invest any
 portion of such funds not required for immediate disbursement in obligations of the United
 States, or any agency or instrumentality of the United States, in obligations of the state of
 Missouri and its political subdivisions, in certificates of deposit and time deposits or other
 obligations of banks and savings and loan associations or in such other obligations as may be
 prescribed by the board;
         (8) Apply for and accept gifts, grants, appropriations, loans or contributions to the
 development and reserve fund, the guarantee fund, the export finance fund, the infrastructure
 development fund, and the jobs now fund from any source, public or private, and enter into
 contracts or other transactions with any federal or state agency, any development agency,
 private organization, or any other source in furtherance of the purposes of sections 100.250 to
HB 3329                                             4

 100.297, and do any and all things necessary in order to avail itself of such aid and
 cooperation;
         (9) Issue, from time to time, its negotiable revenue bonds or notes in such principal
 amounts as, in its opinion, shall be necessary to provide sufficient funds for achieving its
 purposes;
         (10) Establish reserves to secure bonds, notes and loans issued or made by the board,
 development agencies or participating lenders;
         (11) Make, purchase, or participate in the making or purchase, of loans, bonds, or
 notes to finance the costs of projects;
         (12) Procure insurance, letters of credit, or other form of credit enhancement, to
 secure the payment of principal and interest on any loans, bonds or notes or other obligations
 of the board;
         (13) Purchase, receive, take by grant, gift, devise, bequest or otherwise, lease, or
 otherwise acquire, own, hold, improve, employ, use and otherwise deal in and with, real or
 personal property, or any interest therein, wherever situated;
         (14) Sell, convey, lease, exchange, transfer or otherwise dispose of, all or any of its
 property, or any interest therein, wherever situated;
         (15) Conduct hearings and other methods of examination, and authorize any of its
 members to do so, on any matter material for its information and necessary to the exercise of
 the duties of the board;
         (16) Employ and fix the compensation of an executive director and such other agents
 or employees as it considers necessary;
         (17) Adopt, alter, or repeal its own bylaws, rules, and regulations governing the
 manner in which its business may be transacted;
         (18) Assess or charge a fee for each application it receives for funding for a project or
 a jobs now project and assess or charge other fees as the board determines to be reasonable to
 carry out its purposes, including, but not limited to, fees or premiums for loans made from the
 development and reserve fund and the export finance fund and for loans, bonds or notes
 secured by the development and reserve fund, the guarantee fund, the export finance fund or
 the infrastructure development fund or the jobs now fund;
         (19) Make all expenditures which are incident and necessary to carry out its purposes
 and powers;
         (20) Take such action, enter into such agreements and exercise all other powers and
 functions necessary or appropriate to carry out the duties and purposes set forth in sections
 100.250 to 100.297;
         (21) Insure, coinsure, guarantee loans and make loans relating to qualified export
 transactions and adopt criteria, by means of rules and regulations, establishing which
 HB 3329                                             5

 exporters shall be eligible for the insurance, coinsurance, loan guarantees and loans which
 may be extended by the board;
         (22) Do all things necessary to ensure full participation by the state of Missouri in any
 federal program which may relate to the construction, repair, replacement or further
 development of the infrastructure of the state and its political subdivisions;
         (23) Receive funds from the federal government for deposit into the infrastructure
 development fund or the jobs now fund and authorize disbursements therefrom. The board
 may enter into agreements with agencies of the federal government and may, on behalf of the
 state of Missouri, do all things necessary to ensure full participation by the state of Missouri
 in any federal program which may relate to the repair, replacement or further development of
 the infrastructure of the state and its political subdivisions;
         (24) Set guidelines and priorities for loans, loan guarantees or grants from the
 infrastructure development fund. The board is the sole state agency authorized to set such
 guidelines and priorities with respect to the infrastructure development fund on behalf of the
 state or any of its political subdivisions, and loans, loan guarantees, or grants shall only be
 made upon approval of the board;
         (25) Make equity investments in or otherwise acquire ownership interests in: for-
 profit and not-for-profit federal- or state-authorized community development corporations;
 small business investment companies, including minority or specialized small business
 investment companies; and microloan corporations and similar lending institutions, when
 such investments are deemed to enhance the benefit of the public;
         (26) Make investments in Missouri certified capital companies, as defined [by] under
 this subdivision [(5) of subsection 2 of section 135.500], or other investment companies for
 investment in qualified Missouri businesses, as defined [by] under this subdivision [(14) of
 subsection 2 of section 135.500]. All investments made by the board for the eventual
 investment in qualified Missouri businesses shall be matched by an equivalent investment
 made by the certified capital company or other investment firm for investment into qualified
 Missouri businesses. All investments made into Missouri qualified businesses under the
 provisions of this subdivision shall be in the form of equity or unsecured debt financing. No
 investment shall be made by the board under the provisions of this subdivision without the
 approval of the director of the department of economic development. For the purposes of
 this subdivision the following terms mean:
         (a) "Certified capital company", any partnership, corporation, trust, or limited
 liability company, whether organized on a profit or not-for-profit basis, that is located,
 headquartered, and registered to conduct business in Missouri and has as its primary
 business activity the investment of cash in qualified Missouri businesses;
 HB 3329                                           6

         (b) "Qualified Missouri business", an independently owned and operated
 business that is headquartered and located in Missouri and is in need of venture capital
 and cannot obtain conventional financing. Such business shall have no more than two
 hundred employees, at least eighty percent of whom are employed in Missouri. Such
 business shall be involved in commerce for the purpose of manufacturing, processing or
 assembling products, conducting research and development, or providing services in
 interstate commerce, but excluding retail, real estate, real estate development,
 insurance, and professional services provided by accountants, lawyers, or physicians.
 At the time a certified capital company or qualified investing entity makes an initial
 investment in a business, such business shall be a small business concern that meets the
 requirements of the United States Small Business Administration's qualification size
 standards for its venture capital program, as defined in Section 13 CFR 121.301(c) of
 the Small Business Investment Act of 1958, as amended. Any business that is classified
 as a qualified Missouri business at the time of the first investment in such business by a
 Missouri certified capital company or qualified investing entity shall, for a period of
 seven years from the date of such first investment, remain classified as a qualified
 Missouri business and may receive follow-on investments from any Missouri certified
 capital company or qualified investing entity and such follow-on investments shall be
 qualified investments regardless of whether such business meets the other qualifications
 of this subsection at the time of such follow-on investments; and
         (27) Make loans and grants from the jobs now fund in accordance with the provisions
 of section 100.293.
              100.293. 1. This section[,] and section 100.277[, and sections 135.950 to 135.973]
 shall be known and may be cited as the "Jobs Now Act".
         2. There shall be created a "Jobs Now Recommendation Committee", comprised of
 representatives of the department of economic development, the department of agriculture,
 the department of natural resources, and the department of transportation. The committee
 shall establish application materials and procedures for development agencies to apply to the
 board for grants or low-interest or interest-free loans for the purpose of funding jobs now
 projects.
         3. Applications shall be submitted simultaneously to the committee and the board.
 The committee shall review the applications and prepare and submit analyses and
 recommendations to the board for a determination as to approval or denial of grants or
 loans from the jobs now fund.
         4. In reviewing applications, the board shall give preference to redevelopment
 projects that protect natural resources or rehabilitate existing dilapidated or inadequate
 infrastructure in areas defined under section 135.530.
HB 3329                                              7

          5. After reviewing applications and such other information as the board may require,
 the board may grant all or a part of a grant or loan request, provided the board determines:
          (1) The jobs now project:
          (a) Will not happen without the grant or loan from the board; or
          (b) Will have a significant local economic impact; or
          (c) Demonstrates high levels of job creation;
          (2) In the case of a low-interest or interest-free loan, the jobs now project will
 generate sufficient revenues or the borrower will otherwise have sufficient revenues available
 to enable the borrower to repay the loan to the jobs now fund, along with any interest to be
 charged; and
          (3) No loan or grant may exceed two million dollars.
              135.530. For the purposes of sections [100.010,] 100.710, 100.850, 135.110,
 [135.200, 135.258, 135.313,] 135.403, 135.405, [135.503,] 135.530, [135.545,] and 215.030,
 [348.300, 348.302, and 620.1400 to 620.1460,] "distressed community" means either a
 Missouri municipality within a metropolitan statistical area which has a median household
 income of under seventy percent of the median household income for the metropolitan
 statistical area, according to the United States Census Bureau's American Community Survey,
 based on the most recent of five-year period estimate data in which the final year of the
 estimate ends in either zero or five, or a United States census block group or contiguous group
 of block groups within a metropolitan statistical area which has a population of at least two
 thousand five hundred, and each block group having a median household income of under
 seventy percent of the median household income for the metropo