Read 1st time February 7, 2000, and 1000 copies ordered printed.
ANNE C. WALKER, Chief Clerk
AN ACT
To repeal sections 447.700 and 447.706, RSMo Supp. 1999, relating to remediation of environmentally contaminated real property by political subdivisions, and to enact in lieu thereof two new sections relating to the same subject.
Section A. Sections 447.700 and 447.706, RSMo Supp. 1999, are repealed and two new sections enacted in lieu thereof, to be known as sections 447.700 and 447.706, to read as follows:
447.700. As used in sections 447.700 to 447.718, the following terms mean:
(1) "Abandoned property", real property previously used for, or which has the potential to be used for, commercial or industrial purposes which reverted to the ownership of the state, a county, or municipal government, or an agency thereof, through donation, purchase, tax delinquency, foreclosure, default or settlement, including conveyance by deed in lieu of foreclosure; or a privately owned property endorsed by the city, or county if the property is not in a city, for inclusion in the program which will be transferred to a person other than the potentially responsible party as defined in chapter 260, RSMo, and has been vacant for a period of not less than three years from the time an application is made to the department of economic development;
(2) "Allowable cost", all or part of the costs of project facilities, including the costs of acquiring the property, relocating any remaining occupants, constructing, reconstructing, rehabilitating, renovating, enlarging, improving, equipping or furnishing project facilities, demolition, site clearance and preparation, phase I site assessments, as that term is defined in section 260.565, RSMo, which are conducted by a municipal or county government, supplementing and relocating public capital improvements or utility facilities, designs, plans, specifications, surveys, studies and estimates of costs, expenses necessary or incident to determining the feasibility or practicability of assisting an eligible project or providing project facilities, architectural, engineering and legal service fees and expenses, the costs of conducting any other activities as part of a voluntary remediation and such other expenses as may be necessary or incidental to the establishment or development of an eligible project and reimbursement of moneys advanced or applied by any governmental agency or other person for allowable costs;
(3) "Applicant", the person that submits an application for consideration of a project or location or real property for financial, tax credit or other assistance pursuant to sections 447.700 to 447.718; an applicant may not be any party who intentionally or negligently caused the release or potential release of hazardous substances at the eligible project as that term is defined pursuant to chapter 260, RSMo;
(4) "Eligible project", abandoned or underutilized property to be acquired, established, expanded, remodeled, rehabilitated or modernized for industry, commerce, distribution or research, or any combination thereof, the operation of which, alone or in conjunction with other facilities, will create new jobs or preserve existing jobs and employment opportunities, attract new businesses to the state, prevent existing businesses from leaving the state and improve the economic welfare of the people of the state. The term "eligible project", without limitation, includes voluntary remediation conducted pursuant to sections 260.565 to 260.575, RSMo. To be an "eligible project" pursuant to sections 447.700 to 447.718, the obligations of the prospective applicant and the governmental agency shall be defined in a written agreement signed by both parties. The facility, when completed, shall be operated in compliance with applicable federal, state and local environmental statutes, regulations and ordinances. An "eligible project" shall be determined by consideration of the entire project. The definition or identification of an "eligible project" shall not be segmented into parts to separate commercial and industrial uses from residential uses;
(5) "Financial assistance", direct loans, loan guarantees, and grants pursuant to sections 447.702 to 447.706; and tax credits, inducements and abatements pursuant to section 447.708;
(6) "Governmental action", any action by a state, county or municipal agency relating to the establishment, development or operation of an eligible project and project facilities that the governmental agency has authority to take or provide for the purpose under law, charter or ordinance, including but not limited to, actions relating to contracts and agreements, zoning, building, permits, acquisition and disposition of property, public capital improvements, phase I site assessments, as that term is defined in section 260.565, RSMo, which are conducted by a municipal or county government, utility and transportation service, taxation, employee recruitment and training, and liaison and coordination with and among governmental agencies;
(7) "Governmental agency", the state, county and municipality and any department, division, commission, agency, institution or authority, including a municipal corporation, township, and any agency thereof and any other political subdivision or public corporation; the United States or any agency thereof; any agency, commission or authority established pursuant to an interstate compact or agreement and any combination of the above;
(8) "Person", any individual, firm, partnership, association, limited liability company, corporation or governmental agency, and any combination thereof;
(9) "Project facilities", buildings, structures and other improvements and equipment and other property or fixtures, excluding small tools, supplies and inventory, and public capital improvements;
(10) "Public capital improvements", capital improvements or facilities owned by a governmental agency and which such agency has authority to acquire, pay the costs of, maintain, relocate or operate, or to contract with other persons to have the same done, including but not limited to, highways, roads, streets, electrical, gas, water and sewer facilities, railroad and other transportation facilities, and air and water pollution control and solid waste disposal facilities;
(11) "Underutilized", real property of which less than thirty-five percent of the commercially usable space of the property and improvements thereon, are used for their most commercially profitable and economically productive use; or property that was used by the state of Missouri as a correctional center for a period of at least one hundred years and which requires environmental remediation before redevelopment can occur, if approval from the general assembly has been given for any improvements to, or remediation, lease or sale of, said property;
(12) "Voluntary remediation", an action to remediate hazardous substances and hazardous waste pursuant to sections 260.565 to 260.575, RSMo.
447.706. 1. The director of economic development, with the approval of the director of the department of natural resources, subject to other applicable provisions of sections 447.700 to 447.718, may issue a grant to a governmental agency for the purpose of paying the allowable costs of public capital improvements needed to cause an eligible project if:
(1) The project otherwise qualifies as an eligible project and is economically sound;
(2) The project proposed is a cooperative venture between a municipal or county government and a prospective private purchaser of the facility; except that, a municipal or county government shall not be required to identify a prospective private purchaser if the grant issued pursuant to this subsection is given for the sole purpose of assisting a municipal or county government in conducting a phase I site assessment, as that term is defined in section 260.565, RSMo. The general assembly shall, subject to appropriations, appropriate two million dollars annually to the property reuse fund, to be used solely for grants from the property reuse fund to municipal or county governments for phase I site assessments;
(3) The prospective purchaser, in the case of projects other than phase I site assessments by a municipal or county government, which do not require purchasers to be identified, is unable to finance the entire cost of the project through ordinary financial channels upon comparable terms and, further, a lender is unwilling to make the loan even with a loan guarantee pursuant to section 447.704. When completed, the eligible project is projected to create not less than ten new jobs, or shall retain a business which supplies not less than twenty-five existing jobs, or a combination thereof, providing not less than an average of thirty-five hours of employment per week per job. Such projection shall be made by the department of economic development; and
(4) The amount to be issued in a grant shall not exceed one million dollars.
2. The determinations of the director of economic development pursuant to subsection 1 of this section shall be conclusive for purposes of the validity of a grant agreement signed by the director.
3. Grants from the property reuse fund pursuant to this section shall be such as the director of economic development determines to be appropriate and in furtherance of the purpose for which the grants are made. The moneys used in making such grants shall be disbursed from the property reuse fund upon written order of the director of economic development. The director shall give special consideration in setting the required job creation ratios and project locations for project grants that are for voluntary remediation actions.
4. The director of economic development shall issue such grants to a governmental agency to administer and direct the expenditure of the funds for public capital improvements. Such grant money shall not be used to hire or pay additional employees of the recipient governmental agency.
5. The director of economic development may fix service charges for the making of a property reuse grant. Such
charges shall be payable at such times and place and in such amounts and manner as may be prescribed by the
director.
Missouri House of
Representatives