HB0384 Thomason, Larry

P R E F I L E D

HB 384 -- Economic Development Projects

This bill provides financial assistance for certain economic development projects in order to promote the creation of manufacturing jobs. In its main provisions, it:

(1) Authorizes the Missouri Development Finance Board to finance economic development projects for eligible companies; "eligible companies" are corporations involved in manufacturing, with at least $500 million invested in a project which creates at least 2,000 new jobs;

(2) Authorizes the board to work with the Department of Economic Development in developing procedures for determining which eligible companies will be approved for assistance; the most significant factors for making the determination are the credit-- worthiness of the company, the number of new jobs created, and the likelihood of the project's success; the Board is prohibited from approving any project which replaces existing manufacturing facilities;

(3) Defines "economic development project" as acquisition or ownership of real estate by the Board or the approved company for manufacturing purposes, including the acquisition, construction, installation, equipping and rehabilitation of manufacturing facilities, and which may involve improvements, excavation, removal of structures and obstructions, utility installation, and provision of storm water and drainage systems;

(4) Allows approved companies to require, as a condition of employment, a Job Development Assessment Fee from each full-time employee of the project who earns at least $12 per hour in wages, or at least $15 per hour in wages and benefits. Up to 5% of employees' gross wages may be withheld and automatically deducted from paychecks, for the purpose of retiring bonds which fund the project;

(5) Authorizes a 100% credit against state income taxes for any employee assessed the Job Development Assessment Fee; if the tax credit exceeds the tax liability, the employee will receive a refund;

(6) Authorizes the Board to enter into financing agreements with approved companies, which may include loaning bond proceeds; acquiring, conveying, or financing any real or personal property; permitting the use of the Job Development Assessment Fee; and paying approved costs of a project from any available funds;

(7) Stipulates that any approved company requesting that bonds be issued in its name must meet certain terms, including the requirement that annual obligations of the company equal the annual debt service for that year on the bonds issued. In addition, the total Job Development Assessment Fees may not exceed the company's annual obligation, with certain exceptions; and

(8) Provides for administrative and legal recourse should the approved company default on any of the obligations contained in the financing agreement with the Board.