HCS HB 741 -- ECONOMIC DEVELOPMENT ACTIVITIES (Pearce)

COMMITTEE OF ORIGIN:  Special Committee on Job Creation and
Economic Development

This substitute establishes the Missouri Economic Development
Code and the Regional Economic Development District Law.

MISSOURI ECONOMIC DEVELOPMENT CODE

The Missouri Economic Development Code is established; and if
provisions of the 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.

REGIONAL ECONOMIC DEVELOPMENT DISTRICT LAW

The Regional Economic Development District Law is established.
The substitute:

(1)  Allows two or more governing bodies to establish a regional
economic development district to plan programs encouraging
economic development within the district.  The governing bodies
must enact identical ordinances or mutually agree to the
district's establishment.  The ordinances or mutual agreements
must specify the qualifications, terms, membership, and powers of
the district's board;

(2)  Allows the district to impose, upon voter approval, a sales
tax within the district to be used for economic development
purposes.  The sales tax rate can be 0.125%, 0.25%, 0.375%, or
0.5%;

(3)  Creates the Regional Economic Development District Sales Tax
Fund for the deposit of all revenue levied from the district's
sales tax;

(4)  Prohibits the revenue from the district's sales tax from
being included in calculations of moneys available to other
special taxing districts that may also be a part of the regional
economic development district.  Other special taxing districts
include tax increment financing districts, neighborhood
improvement districts, and community improvement districts.
Revenue from the regional economic development district's sales
tax can only be used for its purposes and cannot be diverted to
any other special taxing district unless approved by the
district's board;

(5)  Requires the board to make a report available to the public
at least annually on the use of its funds;

(6)  Allows the board to adopt incremental tax financing for the
purposes of the district; however, this cannot be used for any
retail projects;

(7)  Specifies the manner in which ad valorem taxes and payments
in lieu of taxes will be divided among affected taxing districts;

(8)  Allows the district to collect 50% of the economic activity
tax revenue received from sales within the district for 25 years;

(9)  Specifies the requirements of a regional economic
development plan;

(10)  Requires that certain findings be made by the board before
adopting a regional economic development plan, including a
determination that the development area has not been subject to
growth and development through private investment and that this
cannot be reasonably expected to occur without the implementation
of regional economic development projects and the adoption of
incremental tax financing; and

(11)  Allows the district to issue bonds to pay for the costs
associated with the regional economic development projects.

FISCAL NOTE:  Estimated Income on General Revenue Fund of $0 or
Unknown in FY 2008, FY 2009, and FY 2010.  No impact on Other
State Funds in FY 2008, FY 2009, and FY 2010.

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