SCS/SB 620 - This act implements various economic development concerning targeted industries, enterprise zones and job training programs at community colleges. The major provisions of the act are as follows:

Essential and targeted industries (Sections 100.710, 100.840, 100.850, RSMo): The above sections within the Missouri Business Use Incentives for Large-Scale Development Act (BUILD) are modified to allow for retention projects in "essential industries".

The act adds to the purview of "eligible industries" those that meet the following requirements:

- Must be a "targeted industry", i.e. one that is critical to state's economic security and growth as determined by the Department of Economic Development (DED) and affirmed by the Joint Committee on Economic Development Policy & Planning;

- Must be located in a city meeting certain population parameters in a county meeting certain parameters (Hazelwood is only city that currently qualifies);

- Must have had at least 2,000 jobs at the project site for each of the five preceding years;

- Must retain the number of jobs (actual number of jobs not the 2,000 minimum) for the duration of the BUILD certificates (10 15 years); and

- Must invest at least $500 million (new investment) in the project.

The act also eliminates the cumulative cap and replaces it with an annual tax credit cap of $11 million.

Regarding the Enterprise Zone Program: (new Sections 135.276, 135.277, 135.279, 135.281, 135.283, RSMo):

This part of the act contains new provisions that build on existing enterprise zone law concerning retention projects. The act follows the pattern of existing enterprise zones except as follows:

- Must be an "essential industry" to be eligible to apply for the retention program:

- Must be a "targeted industry" one that is critical to state's economic security and growth as determined by DED and affirmed by the Joint Committee on Economic Development Policy & Planning;

-Enterprise zone must include all or part of a city meeting certain population parameters in a county meeting certain parameters (Hazelwood is only city that currently qualifies)

- Must have had at least 2,000 jobs at the project site for the five preceding years;

- Must retain the jobs for 10 years (actual number of jobs not the 2,000 minimum);

- Must invest at least $500 million (new investment) in the project over 2 year period within first 5 years of project;

- DED must consider soundness of project;

- Local incentives must be provided;

- Wages must exceed average wage of county;

- The incentive must be needed to make a project remain in MO; and

- Company must be considering another state for the project.

The act offers a refund mechanism:

- Eligible to apply if tax credits exceed taxable income for facility by $1 million;

- No more than 2 million refund in any year;

- Cannot receive refund for more than five consecutive years;

- If tax credits exceed taxable income by more than $2 million, those credits can be carried forward for refund purposes.

Community College New Jobs Training Program (Section 178.892, RSMo) - Modified to allow for retention projects in "essential industries":

- Must be a "targeted industry" one that is critical to state's economic security and growth as determined by DED and affirmed by the Joint Committee on Economic Development Policy & Planning;

- Must be located in a city meeting certain population parameters in a county meeting certain parameters (Hazelwood is only city that currently qualifies);

- Must have had at least 2,000 jobs at the project site for the five preceding years;

- Must retain the jobs (actual number of jobs not the 2,000 minimum) for the duration of the CCNJT certificates (8 years);

- Wages must exceed average wage of county.

The act changes the calculation of the tax increment for super-tif financing for businesses which relocate their national headquarters from out-of-state to allow for a use of the portion of the full new state revenues generated rather than only the incremental increase in new state revenues generated over the revenues generated in the base year.

The act will terminate January 1, 2006 if a project has not been approved by DED by December 31, 2005. If a project has been so approved, act will terminate on January 1, 2020.

The act has an emergency clause. JEFF CRAVER