HCS HB 741 -- MISSOURI ECONOMIC DEVELOPMENT CODE

SPONSOR:  Richard (Pearce)

COMMITTEE ACTION:  Voted "do pass" by the Special Committee on
Job Creation and Economic Development by a vote of 11 to 0.

This substitute establishes the Missouri Economic Development
Code and specifies that if provisions of this code are
inconsistent with the provisions of any other law, the code will
be controlling.

Each municipality or county may create a Missouri economic
development code job creation commission, but it will only be
able to conduct business if approved by the governing body by an
order or ordinance.  In order to be approved, the governing body
must make certain findings which are specified in the substitute.
Each commission will be governed by a board of commissioners.

The code cannot be used for any residential development project
if the taxes that would normally go to the school district would
be used to finance the project.  In this case, the school boards
of all school districts located in the area of the project must
consent to the project.

The code is prohibited from being used in conjunction with any
other redevelopment program authorized under Chapter 99, RSMo.
These programs include tax increment financing and the Missouri
Downtown Economic Stimulus Act.

The substitute specifies:

(1)  The commission's membership and powers;

(2)  The items which must be included in a development plan and
the findings which must be made for a municipality or county to
adopt the plan.  The findings must include a cost-benefit
analysis of the economic impact the development plan will have on
the municipality, county, and school districts that are within
the development area.  The initial development or redevelopment
of a gambling establishment is prohibited.  The development
project must be completed and all debts retired within 25 years;

(3)  The requirements for public hearings related to the project;

(4)  The manner in which obligations may be issued and retired;
and

(5)  The manner in which payments in lieu of taxes and economic
activity taxes will be allocated while development financing is
undertaken.

FISCAL NOTE:  No impact on state funds in FY 2008, FY 2009, and
FY 2010.

PROPONENTS:  Supporters say that the bill is extremely important
to rural areas of the state because it will allow them to develop
greenfield space.  Traditional tax increment financing can only
be used to redevelop a blighted area; but rural areas, in
particular, need a tool for initial land development.  Any
community in the state can use the code.  No one is required to
use the code, it is entirely voluntary.  It can only be used for
public infrastructure projects and not for any residential
project unless agreed upon by all of the affected school
districts.

Testifying for the bill were Representative Pearce; Missouri
Economic Development Council; Jefferson City Area Chamber of
Commerce; Johnson County Economic Development Corporation; Roy
Hunter, Marshall-Saline Economic Development Corporation; John
Bode, Carthage Chamber of Commerce; and Rob O'Brian, Joplin Area
Chamber of Commerce.

OPPONENTS:  There was no opposition voiced to the committee.

Missouri House of Representatives
94th General Assembly, 1st Regular Session
Last Updated July 25, 2007 at 11:20 am