HCS HB 1606 -- LOCAL USE TAX:  COMMUNITY COMEBACK ACT

SPONSOR:  Bray

COMMITTEE ACTION:  Voted "do pass" by the Committee on Ways and
Means by a vote of 16 to 0.

This substitute establishes the Community Comeback Act.  In its
main provisions, the substitute:

(1)  Authorizes the establishment of a community comeback trust
for St. Louis County, whose primary duties include the
prevention of neighborhood decline, demolition of abandoned
buildings, cleaning of polluted sites, and the promotion of
neighborhood reinvestment;

(2)  Provides that the county executive is to appoint the 7
members of the community trust board from a list of nominees
supplied by any member of the St. Louis County Council and the
chief elected officer of any municipality wholly within St.
Louis County.  The criteria for and terms of board membership
are outlined;

(3)  Gives exclusive control of the expenditure of moneys
collected to the credit of the trust, subject to annual
appropriation by the county council, to the trust board and
limits the administrative costs of the trust to no more than 5%
of the trust's annual budget;

(4)  Requires the county government to provide trust staff;

(5)  Authorizes the trust to issue and refund bonds, notes, or
other obligations for any proposal and to receive and liquidate
property; the trust is not, however, authorized to use the power
of eminent domain.  Bonds issued by the trust are exempt from
state income taxes;

(6)  Requires the trust board to notify all municipalities
within St. Louis County and the county council of the
requirement to conduct a planning process and adopt a community
comeback plan;

(7)  Requires the board to hold public hearings and to solicit
input from the county and municipalities regarding the
development of the community comeback plan.  The board and the
county council are to annually revise and adopt a plan;

(8)  Requires each plan to include a housing stock and market
analysis of the impediments to attracting home buyers.  In
addition, each plan is to address the factors related to the
occurrence of assessed values below the county average, median
household incomes below the county median, unemployment rates
above the county average, building vacancies, and lack of home
value growth;

(9)  Requires each plan to outline the specific strategies to
address the specific problems encountered in various regions and
neighborhoods in the county;

(10)  Requires the board to produce an annual report outlining
what has been accomplished in relation to the goals outlined in
the community comeback plan;

(11)  Requires the board to commission an annual financial audit
and an independent management audit every 5 years;

(12)  Requires the board to establish an 11-member advisory
committee, with members appointed by the county executive.  The
qualifications and length of terms of committee members are
outlined.  The advisory committee is charged with advising the
board, board staff, or petitioners who include the governing
body of any municipality or St. Louis County, any land clearance
for redevelopment authority in St. Louis County, or any not-for-
profit organization;

(13)  Authorizes the board to begin accepting petitions for
funding from the trust one month after the community comeback
plan is adopted.  The criteria which must be addressed in a
petition are outlined and include addressing how the
reinvestment needs of a neighborhood will be met by reducing or
removing impediments to home buyers; providing physical
infrastructure to promote job growth; or reducing or removing
threats to public health, safety, morals, or welfare;

(14)  Authorizes the board to award funding to a petitioner if
the petitioner's proposal involves an eligible project with
eligible expenses and is well planned, realistic, creative,
resourceful, cost-effective, and benefits the local community;

(15)  Requires the board to establish a Select Neighborhood
Action Program (SNAP), which provides neighborhood improvement
grants requiring a 10% cash or in-kind match from applicants.
SNAP grants may only be made for projects capable of being
completed within 12 months, which do not duplicate existing
programs, do not require ongoing funding or services, and do not
conflict with the community comeback plan;

(16)  Outlines the categories for eligible SNAP grants,
including neighborhood beautification projects, neighborhood
organization or capacity projects, neighborhood-school
partnership projects, capital purchase projects which include
the acquisition of equipment or property, and neighborhood local
infrastructure improvements;

(17)  Allocates a minimum of 5% of trust funds, not to exceed
$500,000, for SNAP grants;

(18)  Authorizes one-half of the county use tax (if imposition
of the use tax is approved by voters as required in current law)
to be used for funding the community comeback trust;

(19)  Changes the ballot language for submitting the use tax for
voter approval, so that a description of the purposes for which
the use tax will be used is included on the ballot;

(20)  Authorizes the use tax to be described as the equivalent
of a sales tax on purchases made from out-of-state sellers by
in-state buyers and on certain intrabusiness taxable
transactions; and

(21)  Adds St. Louis County to the definition of "city" for the
purpose of qualifying for Chapter 353 urban redevelopment
assistance.

The substitute contains an emergency clause.

FISCAL NOTE:  Income to General Revenue Fund of $0 to $60,000 in
FY 2001, $0 to $61,200 in FY 2002, and $0 to $62,500 in FY 2003.

PROPONENTS:  Supporters say that this substitute will allow St.
Louis County to coordinate development opportunities within the
county by implementing plans that package land and incentives
within a short time frame for developers and industry and
provide incentives for homeowners to redevelop depressed areas
of the county.

Testifying for the bill were Representatives Bray and Foley; St.
Louis County; St. Louis County Municipal League;  St. Louis
County Economic Development Council; and St. Louis Regional
Commerce and Growth Association.

OPPONENTS:  There was no opposition voiced to the committee.

Bill Tucker, Assistant Director of Research

HB 1606 -- Community Comeback Act

Co-Sponsors:  Bray, Foley

This bill establishes the Community Comeback Act.  In its main
provisions, the bill:

(1)  Authorizes the establishment of a community comeback trust
for St. Louis County, whose primary duties include the
prevention of neighborhood decline, demolition of abandoned
buildings, cleaning of polluted sites, and the promotion of
neighborhood reinvestment;

(2)  Provides that the county executive is to appoint the 7
members of the community trust board from a list of nominees
supplied by any member of the St. Louis County Council and the
chief elected officer of any municipality wholly within St.
Louis County.  The criteria for and terms of board membership
are outlined;

(3)  Gives exclusive control of the expenditures of money
collected to the credit of the trust, subject to annual
appropriation by the county council, to the trust board, and
limits administrative costs of the trust to no more than 5% of
the trust's annual budget;

(4)  Requires the county government to provide trust staff;

(5)  Authorizes the trust to issue and refund bonds, notes, or
other obligations for any proposal, and to receive and liquidate
property; the trust is not, however, authorized to use the power
of eminent domain.  Bonds issued by the trust are exempt from
state income taxes;

(6)  Requires the trust board to notify all municipalities
within St. Louis County and the county council of the
requirement to conduct a planning process and adopt a community
comeback plan;

(7)  Requires the board to hold public hearings and to solicit
input from the county and municipalities regarding the
development of the community comeback plan.  The board and the
county council are to annually revise and adopt a plan;

(8)  Requires each plan to include a housing stock and market
analysis of the impediments to attracting home buyers.  In
addition, each plan is to address the factors related to the
occurrence of assessed values below the county average, median
household incomes below the county median, unemployment rates
above the county average, building vacancies, and lack of home
value growth;

(9)  Requires each plan to outline the specific strategies to
address the specific problems encountered in various regions and
neighborhoods in the county;

(10)  Requires the board to produce an annual report outlining
what has been accomplished in relation to the goals outlined in
the community comeback plan;

(11)  Requires the board to commission an annual financial audit
and an independent management audit every 5 years;

(12)  Requires the board to establish an 11-member advisory
committee, with members appointed by the county executive.  The
qualifications and length of terms of committee members are
outlined.  The advisory committee is charged with advising the
board, board staff, or petitioners who include the governing
body of any municipality or St. Louis County, any land clearance
for redevelopment authority in St. Louis County, or any not-for--
profit organization;

(13)  Authorizes the board to begin accepting petitions for
funding from the trust one month after the community comeback
plan is adopted.  The criteria which must be addressed in a
petition are outlined and include addressing how the
reinvestment needs of a neighborhood will be met by reducing or
removing impediments to home buyers; providing physical
infrastructure to promote job growth; or reducing or removing
threats to public health, safety, morals, or welfare;

(14)  Authorizes the board to award funding to a petitioner if
the petitioner's proposal involves an eligible project with
eligible expenses, and is well planned, realistic, creative,
resourceful, cost-effective, and benefits the local community;

(15)  Requires the board to establish a Select Neighborhood
Action Program (SNAP), which provides neighborhood improvement
grants requiring a 10% cash or in-kind match from SNAP
applicants.  SNAP grants may only be made for projects capable
of being completed within 12 months, which do not duplicate
existing programs, do not require ongoing funding or services,
and do not conflict with the community comeback plan;

(16)  Outlines the categories for eligible SNAP grants,
including neighborhood beautification projects, neighborhood
organization or capacity projects, neighborhood-school
partnership projects, capital purchase projects which include
the acquisition of equipment or property, and neighborhood local
infrastructure improvements;

(17)  Allocates a minimum of 5% of trust funds, not to exceed
$500,000, for SNAP grants;

(18)  Authorizes one-half of the county use tax (if imposition
of the use tax is approved by voters as required in current law)
to be used for funding the community comeback trust;

(19)  Changes the ballot language for submitting the use tax for
voter approval, so that a description of the purposes for which
the use tax will be used is included on the ballot;

(20)  Authorizes the use tax to be described as the equivalent
of a sales tax on purchases made from out-of-state sellers by
in-state buyers and on certain intrabusiness taxable
transactions; and

(21)  Adds St. Louis County to the definition of "city" for the
purpose of qualifying for Chapter 353 urban redevelopment
assistance.

The bill has an emergency clause.