SECOND REGULAR SESSION
95TH GENERAL ASSEMBLY
INTRODUCED BY REPRESENTATIVES FLOOK (Sponsor), JONES (89), DUSENBERG, KRAUS, GRISAMORE, POLLOCK, DEEKEN, KOMO, PRATT, McGHEE, ZERR, STORCH, KRATKY, DAY, LAIR, CORCORAN, FISHER (125), BRANDOM, ALLEN, BURLISON, WILSON (119), GRILL, DIECKHAUS, SCHIEFFER, MUNZLINGER AND BROWN (50) (Co-sponsors).
4363L.01I D. ADAM CRUMBLISS, Chief Clerk
AN ACT
To amend chapter 620, RSMo, by adding thereto one new section relating to job growth.
Be it enacted by the General Assembly of the state of Missouri, as follows:
Section A. Chapter 620, RSMo, is amended by adding thereto one new section, to be known as section 620.1894, to read as follows:
620.1894. 1. As used in this section, the following terms mean:
(1) "Base year", unless otherwise specified, is the year before the year in which the governing body first holds a public hearing under subsection 6 of this section to consider establishing the MO-JFF district;
(2) "Financing costs", include but are not limited to all necessary and incidental expenses related to the issuance of obligations, including reasonable reserves related thereto and interest payments on obligations issued under this section, and reasonable interest on MO-JFF eligible project costs from the time such costs are incurred until such costs are reimbursed;
(3) "MO-JFF district" or "Missouri jobs for the future district", an area designated by a municipality under subsection 2 of this section;
(4) "MO-JFF plan" or "Missouri jobs for the future plan", the comprehensive plan of a municipality to carry out one or more MO-JFF projects within a MO-JFF district. A MO-JFF plan shall conform to the requirements under subsection 4 of this section;
(5) "MO-JFF project" or "Missouri jobs for the future project", a project within a MO-JFF district carried out in furtherance of a MO-JFF plan;
(6) "MO-JFF project area" or "Missouri jobs for the future project area", the geographic bounds of a MO-JFF project from which MO-JFF revenues will be collected, as described by a legal description that shall be included with the ordinance approving any MO-JFF project;
(7) "MO-JFF revenues":
(a) Half of the incremental increase in the general revenue portion of state sales tax revenues received under section 144.020, excluding sales taxes that are constitutionally dedicated, taxes deposited to the school district trust fund in accordance with section 144.701, sales and use taxes on motor vehicles, trailers, boats, and outboard motors, and future sales taxes earmarked by law. The incremental increase in the general revenue portion of state sales tax revenues for a facility that existed within the proposed MO-JFF district before the district was established shall be the amount that current state sales tax revenue exceeds the state sales tax revenue for such facility in the base year, and the incremental increase in the general revenue portion of state sales tax revenues for a business that relocates to the MO-JFF district after the district is established shall be the amount that current state sales tax revenue exceeds the state sales tax revenue for such business in the year before its relocation to the district; and
(b) The state income tax withheld on behalf of new employees by the employers under section 143.221 at the businesses located within the MO-JFF district. The state income tax withholding allowed by this section shall be the amount of state income tax withheld by the employers within the MO-JFF district for new employees who fill new jobs created in the MO-JFF district as compared to the base year;
(8) "MO-JFF total project costs", the total amount of expenditures, as estimated in the MO-JFF plan, necessary to complete all MO-JFF projects within a MO-JFF district, which shall include all development-related costs within the MO-JFF district that will be financed with MO-JFF revenues or any other public or private funds;
(9) "Municipality", a city, village, or incorporated town, or any county of this state, or any two or more of such entities acting together;
(10) "Municipal funding", funding or the pledge of funding from municipalities and entities affiliated with municipalities, such as economic development corporations, during or after the base year, which may include financial contributions or contributions of real property, infrastructure improvements, or any other in-kind contribution valued for purposes of this subdivision at fair market value, for implementation of the MO-JFF plan, including any infrastructure or other improvements outside the MO-JFF district that benefit such district, which shall constitute at least ten percent of the amount of MO-JFF eligible project costs (excluding any financing costs) estimated to be financed with MO-JFF revenues;
(11) "Obligations", bonds, loans, debentures, notes, special certificates, or other evidences of indebtedness issued by a municipality or development authority created under subsection 3 of this section to carry out a MO-JFF project or to refund outstanding obligations.
2. Subject to the requirements in subsections 3 to 8 of this section, the governing body of a municipality may establish a MO-JFF district in which MO-JFF projects may be implemented according to a MO-JFF plan, by passing one or more ordinances establishing such MO-JFF district and adopting such MO-JFF projects and plan. The governing body shall not adopt a MO-JFF project before adopting a MO-JFF plan and shall not adopt a MO-JFF plan before establishing a MO-JFF district.
3. A municipality may:
(1) Make and enter into all contracts necessary or incidental to the implementation and furtherance of its MO-JFF plan or projects;
(2) Under a MO-JFF plan, subject to any constitutional limitations, acquire by purchase, donation, lease or, as part of a MO-JFF project, own, convey, lease, mortgage, or dispose of land and other property, real or personal, or rights or interests therein, and grant or acquire licenses, easements, and options with respect thereto, all in the manner and at such price the municipality determines is reasonably necessary to achieve the objectives of the MO-JFF plan. No conveyance, lease, mortgage, disposition of land or other property acquired by the municipality or agreement relating to the development of the property shall be made except upon the adoption of an ordinance by the governing body of the municipality;
(3) Within a MO-JFF district, clear any land by demolition or removal of existing buildings and structures;
(4) Within a MO-JFF district, renovate, rehabilitate, or construct any structure or building;
(5) Install, repair, construct, reconstruct, or relocate streets, utilities, and site improvements essential to the preparation of the MO-JFF district for use in accordance with a MO-JFF plan;
(6) Within a MO-JFF district, fix, charge, and collect fees, rents, and other charges for the use of any building or property owned or leased by it or any part thereof or facility therein;
(7) Accept grants, guarantees, and donations of property, labor, or other things of value from a public or private source for use within a MO-JFF district;
(8) Acquire and construct public and private facilities within a MO-JFF district;
(9) Incur MO-JFF eligible project costs and other MO-JFF project costs and issue obligations under subsection 20 of this section;
(10) Charge as MO-JFF eligible project costs the reasonable costs incurred by its clerk or other official in administering MO-JFF projects;
(11) Establish by ordinance a development authority, consisting of such persons as the governing body shall determine, which shall not transact any business or exercise any powers until or unless the governing body shall approve by ordinance the exercise of such power, functions, and duties, but in no event shall such powers include the power of eminent domain. The governing body may grant to a development authority the power to issue obligations under subsection 20 of this section, alone or in conjunction with a municipality, according to terms and limitations set forth by ordinance. If a development authority already exists, a municipality may authorize such development authority to issue obligations under subsection 20 of this section and otherwise exercise any powers that a municipality may grant to a development authority under this section.
4. Each MO-JFF plan shall include, but need not be limited to:
(1) A description of how the plan will advance one or more targeted industry clusters, as defined by the department of economic development, within the MO-JFF district, and how the program will integrate business, education, science, and technology within the MO-JFF district;
(2) A description of the MO-JFF district, including the existing businesses within the district;
(3) The estimated MO-JFF total project costs, MO-JFF eligible project costs, and the timetable for the MO-JFF projects, including any project phasing;
(4) Land acquisition strategy;
(5) The anticipated sources, amounts, and timing of funds to pay the MO-JFF eligible project costs and other MO-JFF project costs, including any MO-JFF revenues as set forth in subdivision (7) of subsection 1, any municipal funding, and any other sources of funds, including the percentage of all MO-JFF eligible project costs and other MO-JFF project costs represented by each source of funds;
(6) The anticipated type and term of the obligations to be issued;
(7) The general land uses proposed in the MO-JFF district;
(8) Proof of a commitment by at least one Missouri-based higher education institution, including but not limited to universities, colleges, and community colleges, or any recognized Missouri-based institution whose primary focus is science or technology research, to have a significant physical presence in the MO-JFF district, and a description of the educational resources that will be provided by the higher education institution in the MO-JFF district, such as classrooms, curriculum, dedicated faculty, graduate students, and defined partnerships with targeted industry clusters, or a description of the defined partnerships with targeted industry clusters that will be initiated by any research institutions, and how they are intended to promote, advance, or grow targeted industry clusters in the state through the promotion or advancement of science or technology;
(9) The base year amount of state sales tax revenues and the base year number of full-time, part-time, or temporary employees within the MO-JFF district;
(10) The estimated number of new jobs to be created by any business in the MO-JFF district, listed by full-time, part-time, and temporary positions;
(11) The estimated average hourly wage to be paid to all current and new employees at the project site, listed by full-time, part-time, and temporary positions;
(12) The estimate of MO-JFF revenues following implementation of the MO-JFF projects;
(13) An affidavit that is signed by the developer or developers attesting that the MO-JFF plan would not be reasonably anticipated to be successful without the appropriation of MO-JFF revenues;
(14) The three-digit North American Industry Classification System codes characterizing the MO-JFF plan and projects;
(15) A list of other community and economic benefits to result from the project;
(16) A list of all development subsidies that any business benefitting from public expenditures in the MO-JFF district has previously received for the MO-JFF projects, and the name of any other granting body from which such subsidies are sought;
(17) A list of all other public investments made or to be made by this state or units of local government to support infrastructure or other needs generated by the MO-JFF projects;
(18) Documentation from a municipality describing the municipality's public investment that has been made or is anticipated to improve infrastructure outside the MO-JFF district as a result of or in support of development within the MO-JFF district;
(19) A statement as to whether the MO-JFF projects may reduce employment at any other site within the state resulting from automation, merger, acquisition, corporate restructuring, relocation, or other business activity; and
(20) A certification by the chief officer of the applicant as to the accuracy of the MO-JFF plan.
5. No MO-JFF plan shall be adopted by a municipality without findings that:
(1) The MO-JFF plan conforms to the comprehensive plan for the development of the municipality as a whole;
(2) The estimated dates of completion of each MO-JFF project and retirement of obligations incurred to finance each such MO-JFF project's costs shall not be more than twenty-five years after the adoption of the ordinance approving the relevant MO-JFF project, provided that no ordinance approving a MO-JFF project shall be adopted later than ten years from the adoption of the ordinance approving the MO-JFF plan under which such project is authorized. No MO-JFF district shall have the power to acquire any real property by eminent domain;
(3) A plan has been developed for relocation assistance for businesses and residences;
(4) The amount of MO-JFF eligible costs (excluding financing costs) estimated to be financed with MO-JFF revenues, as set forth in the MO-JFF plan, does not exceed fifty percent of the MO-JFF plan's estimated MO-JFF total project costs (excluding financing costs);
(5) Municipal funding has been pledged to one or more MO-JFF projects;
(6) There is a commitment and significant physical presence planned in the MO-JFF district by a Missouri-based higher education institution, including but not limited to universities, colleges, and community colleges, or any recognized Missouri-based institution whose primary focus is science or technology research, as part of the MO-JFF plan, for such higher education institution to provide educational resources such as classrooms, curriculum, dedicated faculty, graduate students, and defined partnerships with targeted industry clusters, or for such research institutions to initiate partnerships with targeted industry clusters, both of which must be intended to promote, advance, or grow targeted industry clusters in the state through the promotion or advancement of science or technology; and
(7) If the proposed MO-JFF district is not fully contiguous, the proposed district is sufficiently geographically cohesive to ensure that the district will function as a fully contiguous district. Separation of real property by any roadway, whether public or private, or any public right-of-way, shall not disrupt the contiguous nature of such real property for purposes of this section. Any otherwise noncontiguous real property shall be deemed contiguous with the other real property in the proposed district if the governing body determines that inclusion of the noncontiguous real property would further the municipality's goals in establishing the district, as set forth in the ordinance establishing the district under subsection 2 of this section.
6. Before a municipality's establishment of a MO-JFF district and adoption of a MO-JFF plan and one or more MO-JFF projects under subsection 2 of this section, the governing body shall hold a public hearing. The governing body shall hear all protests, objections, comments, and evidence at the public hearing. The hearing, for which notice is given under subsection 7 of this section, may be continued to a later date without further notice other than a motion to be entered upon the minutes fixing the time and place of the subsequent hearing. Hearings with regard to a MO-JFF district, plan, and project may be held simultaneously.
7. (1) Notice of the public hearing required by subsection 6 of this section shall be given by:
(a) Publication. Notice by publication shall be given by publication at least twice, the first publication to be not more than thirty days and the second publication to be not more than ten days before the hearing, in a newspaper of general circulation in the area of the proposed development;
(b) Mailing, as set forth in subdivisions (3) and (4) of this subsection.
(2) The notices issued under this section shall include the following:
(a) The time and place of the public hearing;
(b) The general boundaries of the proposed MO-JFF district or by street location, where possible;
(c) A statement that all interested persons shall be given an opportunity to be heard at the public hearing;
(d) A description of the proposed MO-JFF plan or MO-JFF project and a location and time where the entire plan or project proposal may be reviewed by any interested party; and
(e) Such other matters as the governing body may deem appropriate.
(3) Notice by mailing shall be given by depositing such notice in the United States mail by certified mail addressed to the person or persons in whose name the general taxes for the last preceding year were paid on each lot, block, tract, or parcel of land lying within the proposed MO-JFF district. Such notice shall be mailed not less than ten days before the date set for the public hearing. In the event taxes for the last preceding year were not paid, the notice shall also be sent to the persons last listed on the tax rolls within the preceding three years as the owners of such property.
(4) Notice by mailing shall also be given not less than forty-five days before the date set for the public hearing to the department of economic development, and in addition to the other requirements under subdivision (2) of this subsection, the notice shall include an invitation to submit comments to the municipality's governing body concerning the subject matter of the hearing before the date of the hearing.
8. After the public hearing and up until six months following the adoption of an ordinance establishing a MO-JFF district or approving a MO-JFF plan or project, changes may be made to the MO-JFF district, plan, or project, as applicable, without a further hearing, if such changes do not enlarge the exterior boundaries of the MO-JFF district and do not substantially affect the general land uses established in the MO-JFF plan or substantially change the nature of the MO-JFF project, provided that notice of such changes shall be given by mail to the department of economic development not less than ten days before the adoption of the changes by ordinance.
9. Following a municipality's approval of one or more MO-JFF projects under subsection 2 of this section, the amount of MO-JFF revenues generated from within the MO-JFF project area of any approved MO-JFF project shall be available for appropriation by the general assembly from the general revenue fund to the department of economic development for distribution to the treasurer or other designated financial officer of the municipality.
10. The treasurer or other designated financial officer of the municipality shall deposit MO-JFF revenues received from the department of economic development in a segregated fund known as a "MO-JFF Projects Financing Fund". The state treasurer shall be custodian of the Fund. In accordance with sections 30.170 and 30.180, RSMo, the state treasurer must approve or disapprove disbursement requests within thirty days of receiving such requests, and shall approve any disbursement request that is consistent with the applicable MO-JFF plan and project or projects. Upon appropriation, money in the fund shall be used solely for the administration of this section. Notwithstanding the provisions of section 33.080, any moneys remaining in the fund at the end of the biennium shall not revert to the credit of the general revenue fund. The state treasurer shall invest moneys in the fund in the same manner as other funds are invested. Any interest and moneys earned on such investments shall be credited to the fund.
11. No transfer under subsection 9 of this section from the general revenue fund to the department of economic development shall be made unless an appropriation is made from the general revenue fund for that purpose. No municipality shall commit any MO-JFF revenues before such an appropriation.
12. The initial appropriation of MO-JFF revenues authorized under subsection 9 of this section shall not be made or distributed by the department of economic development to a municipality until the director of the department of economic development or the director's designee has certified a MO-JFF plan and project or projects. After such certification, upon the initial and any subsequent appropriations, the department of economic development shall immediately distribute such appropriated amounts to the appropriate municipality. The director of economic development or the director's designee shall certify a MO-JFF plan and projects if they find that:
(1) There is a commitment and significant physical presence planned in the MO-JFF district by a Missouri-based higher education institution, including but not limited to universities, colleges, and community colleges, or any recognized Missouri-based institution whose primary focus is science or technology research, as part of the MO-JFF plan, for such higher education institution to provide educational resources such as classrooms, curriculum, dedicated faculty, graduate students, and defined partnerships with targeted industry clusters, or for such research institutions to initiate partnerships with targeted industry clusters, both of which must be intended to promote, advance, or grow targeted industry clusters in the state through the promotion or advancement of science or technology;
(2) The estimated dates of completion of each MO-JFF project and retirement of obligations incurred to finance each such MO-JFF project's costs shall not be more than twenty-five years after the adoption of the ordinance approving the relevant MO-JFF project, provided that no ordinance approving a MO-JFF project shall be adopted later than ten years from the adoption of the ordinance approving the MO-JFF plan under which such project is authorized. No MO-JFF district shall have the power to acquire any real property by eminent domain;
(3) The amount of MO-JFF eligible costs (excluding financing costs) estimated to be financed with MO-JFF revenues, as set forth in the MO-JFF plan, does not exceed fifty percent of the MO-JFF plan's estimated MO-JFF total project costs (excluding financing costs);
(4) Municipal funding has been pledged to one or more MO-JFF projects; and
(5) The MO-JFF plan and projects would result in a net benefit to the state, with particular emphasis on such factors as the short and long term potential for the creation of new twenty-first century jobs in the state, growth of state tax revenues, strengthening the state's reputation as a hub of one or more targeted industry clusters, advancement of the development of science and technology industries in the state, and the potential to leverage new federal funding for science and technology.
13. MO-JFF revenues deposited in the MO-JFF projects financing fund established by the municipality under subsection 10 of this section shall be used to pay for MO-JFF eligible project costs, to provide reimbursement for MO-JFF eligible project costs incurred either before or after the MO-JFF district is established under this section, and to make payments on obligations whose proceeds were used to pay MO-JFF eligible project costs. MO-JFF revenues generated in one MO-JFF project area may be used to pay for or reimburse MO-JFF eligible project costs in any part of the MO-JFF district, or outside the MO-JFF district for the benefit of such district, or make payments on obligations whose proceeds were used to pay for MO-JFF eligible project costs in any part of the district or outside the district for the benefit of the district, including, for example, where MO-JFF revenues collected from an approved MO-JFF project area is used to finance the purchase of land or cost of constructing infrastructure in an area of the MO-JFF district that is not part of an approved MO-JFF project area. MO-JFF eligible project costs shall include costs related to:
(1) Formation of a MO-JFF district, drafting a MO-JFF plan, and designing MO-JFF projects, including but not limited to reasonable fees of architects, engineers, attorneys, and consultants, and any other reasonably related costs;
(2) Acquisition of land within the boundaries of the MO-JFF district, including but not limited to associated surveyor costs, title related fees, legal fees, brokers' fees, feasibility studies, and other due diligence;
(3) Extension, expansion, and construction of all infrastructure serving the MO-JFF district, including, but not limited to, water services, storm and sanitary sewers, electrical services, roads, sidewalks, and any other utilities or infrastructure;
(4) Developing public buildings and parking, including site preparation, design, and building construction;
(5) Financing costs; and
(6) Any other costs related to attracting private investment and creating new jobs within the MO-JFF district.
14. Following the initial appropriation of MO-JFF revenues under subsection 9 of this section and continuing until termination of the MO-JFF district, the municipality shall annually submit a report to the department of economic development which shall provide an update of the MO-JFF projects' timetables, status of municipal funding, and other funding sources, including but not limited to, the number of jobs created, the annual payroll, and the public and private capital investment in the MO-JFF district.
15. This section shall not preclude or affect in any way the implementation or continuation of any other type of public incentives, including tax increment financing under sections 99.800 to 99.865, community improvement districts under sections 67.1401 to 67.1571, and transportation development districts under sections 238.200 to 238.280 for any real property within or without the MO-JFF district.
16. The development of any MO-JFF project, appropriations of MO-JFF revenues under this section for such MO-JFF project, and the retirement of obligations incurred to finance such MO-JFF project shall not continue more than twenty-five years after a municipality's adoption of such MO-JFF project by ordinance under subsection 2 of this section; provided that, no ordinance approving a MO-JFF project shall be adopted later than ten years from the adoption of the ordinance approving the MO-JFF plan under which such project is authorized. No MO-JFF district shall have the power to acquire any real property by eminent domain.
17. A MO-JFF project area from which MO-JFF revenues may be collected after such MO-JFF project receives all necessary municipal and state approvals under this section, including an appropriation by the general assembly, may include any real property located within the MO-JFF district, regardless of what improvements, if any, are planned for such real property as part of the MO-JFF project, as long as the inclusion of such real property is reasonably expected to contribute to the success of the MO-JFF plan.
18. To expand a MO-JFF district after the district has been established under subsection 2 of this section, the governing body of the municipality shall establish the expanded MO-JFF district under the requirements in this section for establishing a MO-JFF district and, to receive MO-JFF revenues associated with the expanded portion of the MO-JFF district, the provisions in this section applicable to securing an appropriation of MO-JFF revenues for a MO-JFF district shall apply. For purposes of this section, the expanded portion of the MO-JFF district shall be deemed to have been established, and the municipality's public hearing to consider such district expansion shall be deemed to have been held, at the same time as the original MO-JFF district was established and the associated public hearing was held, respectively.
19. MO-JFF eligible project costs may include, at the prerogative of a municipality or the state, the portion of salaries and expenses of the municipal government, the department of economic development, or the department of revenue reasonably allocable to each MO-JFF project approved for disbursements from the department of economic development for the ongoing administrative functions associated with such MO-JFF project. For municipalities, such amounts shall be recovered from MO-JFF revenues deposited in the MO-JFF projects financing fund. For the state, such amounts shall be recovered from MO-JFF revenues deposited with the department of economic development under this section.
20. (1) A municipality may issue obligations, as may any development authority created under subsection 3 of this section, secured by all or any part of the funds in and to be deposited in the MO-JFF projects financing fund created under subsection 10 of this section to provide for MO-JFF eligible project costs. Such obligations, when so issued, shall be retired in the manner provided in the ordinance authorizing the issuance of such obligations by the receipts of MO-JFF revenues, as and when appropriated and as deposited in the MO-JFF projects financing fund. In addition to funds in and to be deposited in the MO-JFF projects financing fund, a municipality or development authority may pledge a mortgage on part or all of the MO-JFF project area, or any other security or other interest, to secure its obligations.
(2) Obligations issued under this section may be issued in one or more series bearing interest at such rate or rates as the issuing body of the municipality shall determine by ordinance or resolution. Such obligations shall bear such date or dates, mature at such time or times not exceeding the twenty-five year limit under subsection 16 of this section, be in such denomination, carry such registration privileges, be executed in such manner, be payable in such medium of payment at such place or places, contain such covenants, terms and conditions, and be subject to redemption as such ordinance shall provide. Any such obligations issued may be sold at public or private sale at such price. No referendum approval of the electors shall be required as a condition to the issuance of obligations under this section.
(3) The ordinance authorizing the issuance of obligations may provide that the obligations shall contain a recital that they are issued under this section, which recital shall be conclusive evidence of their validity and of the regularity of their issuance.
(4) A municipality may also issue its obligations to refund, in whole or in part, obligations theretofore issued by such municipality under the authority of this section, whether at or before maturity; provided, however, that the last maturity of the refunding obligations shall not be expressed to mature later than the last maturity date of the obligations to be refunded.
(5) In the event a municipality issues obligations under home rule powers or other legislative authority, the proceeds of which are pledged to pay for MO-JFF eligible project costs, the municipality may, if it has followed the procedures in conformance with this section, retire such obligations from funds in the MO-JFF projects financing fund in amounts and in such manner as if such obligations had been issued under the provisions of this section.
(6) The obligations shall not constitute indebtedness within the meaning of any constitutional, statutory, or charter debt limitation or restriction.
21. Ten years after the execution of this section, the department of economic development shall conduct a comprehensive review of the implementation and performance of this section in achieving this section's goals and objectives, which shall include in part an analysis of the number of twenty-first century jobs created, the payroll for such jobs, capital investment attracted, and overall economic growth generated.
•