The act allows certain individuals to receive low interest loans through the linked deposit loan program. Loans are available for individuals starting new businesses that will remain 51% locally owned in counties that meet the following requirements:

• The county has a median population of 12,500 or less; and

• The median income of residents in the county are equal to or less than the state median income; or

• The unemployment rate in the county is equal to or greater than the state’s unemployment rate.

This act requires the joint committee on tax policy to conduct a study of the feasibility of creating a program to allow municipalities within the state to engage in tax increment finance-like projects with optional tax abatement in any area of such municipality regardless of the existence of blight. The committee must report its findings to the General Assembly no later than December 31, 2007.

The act enables a taxpayer making less than $30,000 per year who modifies their home to be accessible to a disabled person who resides with the taxpayer to claim a credit against their income tax for one hundred percent of the costs of modification, up to $2,500. For taxpayers making between $30,000 and $60,000, a credit will be allowed in the amount equal to fifty percent of the costs of modification, up to $2,500. All tax credits will be refundable, up to $2,500 per year. The credits are not transferrable. The credit has a statewide maximum of $100,000 per year. If ten million dollars in tax credits are not approved, for programs authorized under the rebuilding communities tax credit program, then up to the first one hundred thousand dollars in tax credits shall be used for the home modification tax Credit created by this amendment.

If any portion of the modification was claimed as a deduction on the taxpayer's federal income tax, then the amount of the tax credit shall be reduced by an amount sufficient to offset such deduction.

The credit applies to tax years beginning January 1, 2008, and expires December 31, 2013.

Under current law, the biodiesel producer monthly incentive payment is calculated based on the estimated number of gallons of biodiesel produced from agricultural products originating in Missouri. This section removes the in-state origination criteria and allows the incentive payment to be calculated based on the amount of biodiesel produced from agricultural products originating in any state.

The eligibility criteria is modified for a qualified biodiesel producer, which requires such producers to have registered with the Department of Agriculture by September 1, 2007, begun construction of the facility before November 1, 2007, and begun production of biodiesel before March 1, 2009. The section adds a payback requirement if the biodiesel producer sells the biodiesel production facility within certain timeframes of receiving the last incentive payment.

This section is similar to SS/SCS/SB 571 (2007).

The act establishes the Regional Economic Development District Law. The act 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.

The act 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%. The act creates the Regional Economic Development District Sales Tax Fund for the deposit of all revenue levied from the district's sales tax. The revenue from the district's sales tax is prohibited from being included in calculations of moneys available to other special taxing districts which 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.

The act requires the board to make a report available to the public at least annually on the use of its funds. The board is allowed to adopt incremental tax financing for the purposes of the district, however this cannot be used for any retail projects. The act specifies the manner in which ad valorem taxes and payments in lieu of taxes will be divided among affected taxing districts. The district is allowed to collect fifty percent of the economic activity tax revenue received from sales within the district for twenty-five years. The act specifies the requirements of a regional economic development plan and 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. The district is allowed to issue bonds to pay for the costs associated with the regional economic development projects.

The act establishes the Missouri Rice Certification Act, which prohibits the production, transporting, or handling of certain rice varieties except as provided in rules promulgated by the Department of Agriculture.

The Rice Advisory Council is created, made up of ten members with representation described. The Council shall: identify and review rice varieties with characteristics of commercial impact; review terms and conditions of rice identity preservation programs; and make recommendations to the director of the Department of Agriculture.

The Department shall promulgate rules to implement the provisions of this section. The Department shall have the power to: prevent the contamination of rice that has not been identified as having characteristics of commercial impact; require certain notifications for producers, transporters, and receivers of rice with characteristics of commercial impact; enforce restrictions on rice with characteristics of commercial impact; and investigate alleged violations, issue written notices of violation, and impose penalties for violation. The Department may establish and collect fees for testing rice as it deems necessary.

The Department shall regularly report to the Rice Advisory Council with regard to rice varieties with the potential to have characteristics of commercial impact. Within 60 days of the receipt by the Department of any recommendation made by the Rice Advisory Council with regard to rice varieties that have unreasonable adverse impact on the environment or public health, the Department shall hold a public hearing. Within 30 days of any such hearing, the Department shall issue a detailed response to the Council's recommendation.

The penalty for violation shall be at least ten thousand dollars but not more than one hundred thousand dollars per day per violation. The provisions of this section become effective one hundred eighty days from the August 28, 2007.

Information related to the Missouri Rice Certification Act shall not be subject to open record requirements.

This section is similar to SS/SCS/SB 387 (2007).

JASON ZAMKUS