SCS/HS/HCS/HB 1237 - This act does the following:

SECTIONS 32.105 and 32.127. Earned credits under the Neighborhood Assistance Act may be transferred for an amount between 75% and 100% of par value.

SECTION 67.641. The limit on annual appropriations to convention and sports complex funds is raised from $2 million to $3 million, with no moneys being transferred to any convention and sports complex fund after June 30, 1997 which did not receive construction, maintenance or operation moneys prior to July 1, 1997.

SECTION 67.1000. Allows the cities of Trenton, Bethany, Chillicothe, Cameron, Moberly, Washington, Maryville, Rockport and Warrensburg if approved by voters, to impose a room tax of at least 2% but not more than 5% on transient guests of hotels or motels.

SECTION 71.012. Allows Perry County and the city of Warrensburg to annex areas along a road or highway up to two miles from their existing boundaries.

SECTION 94.875. Currently, the cities of Sikeston and Miner may only use moneys in their respective tourism tax trust funds solely for tourism marketing and promotional purposes. This act would allow the city of Miner to use these moneys for the purpose of constructing, maintaining or operating convention and tourism facilities with at least 25% of the money being used for tourism marketing and promotional purposes.

SECTION 100.296. Removes the restriction in the Missouri Development Finance Board Act which requires disclosure of campaign contributions by officers of business entities attempting to receive financial assistance before any such assistance is granted.

SECTION 108.510. Requires at least $50 million to be annually allocated for private activity bonds beginning in 1996 and continuing until 2006. Such funds shall be directed to a mortgage credit certificate program for all counties, excepting St. Louis City, St. Louis County, St. Charles County, and Jackson County, and shall be operated by a Missouri corporation.

SECTIONS 135.100, 135.110, 135.225, 135.230, 135.245, 135.247, 135.326, 135.350. (1) Allows eligible insurance companies which are certified to receive the new or expanded business facility tax credit, the tax credit for adopting a special needs child, the low-income housing tax credit, and small business investment tax credits to use these tax credits to offset any insurance retaliatory tax obligations which are owed.

(2) Increases the extension for eligible taxpayers whose business is located in an enterprise zone from 5 years to 7 years and taxpayers who did not receive credits for the full 10 years because of the 15-year limit may continue to earn these tax benefits.

(3) Exempts insurance companies which establish a new business facility meeting the definition of "office" or "headquarters", which located within an enterprise zone between 6/30/93 and 12/31/94, and which employ more than 350 employees from the requirement that 30% of the staff employed at the new business facility are difficult to employ, are eligible for public assistance, or live in the enterprise zone.

(4) Allows historic hotels and motels to qualify for enterprise zone tax benefits.

(5) Allows retail businesses located in a satellite enterprise zone in Kansas City or St. Louis to qualify for enterprise zone tax benefits, whether or not the satellite zone is located within a federal empowerment zone.

SECTION 135.207. (1) Increases the number of satellite enterprise zones for St. Louis and Kansas City from a total of 3 to a total of 6, 3 for each city.

(2) Increases the maximum population limit of an area for purposes of qualifying as an enterprise zone from 39,000 to 59,000, and exempts an existing satellite zone in the St. Louis area from these population limits;

(3) Removes the January 1, 1990, cutoff date for making application for enterprise zone designation.

SECTIONS 135.400, 135.401, 135.403, 135.405. (1) Defines "Community Development Corporation" (CDC), and establishes a new fund, the "Community Development Fund" for use by CDC's in stimulating economic development in neighborhoods or communities.

(2) Increases the total of aggregate investments eligible for tax credits in any one Missouri small business from $500,000 to $1 million, and increases the allowable investment by a single taxpayer from $50,000 to $100,000.

SECTION 144.030. Allows all replacement machinery and equipment to be exempt from sales tax. Currently replacement machinery and equipment which is used for the same purpose as the machinery and equipment being replaced is exempt from sales tax only if being replaced due to a design or product change. Facilities and equipment which are used exclusively for the collection of recovered materials for delivery to a material recovery processing plant are to be exempt from sales tax. Currently such facilities and equipment are not exempt if used solely for this purpose.

SECTION 172.274. Leaseholds in property located in the University of Missouri Research Park entered into after August 28, 1996 shall not be exempt from local property taxes. Leaseholds in property used for recreational purposes shall be subject to local property taxes.

SECTION 274.030. Allows five owners or operators of a family farm or a family farm corporation to form a livestock production cooperative.

SECTIONS 274.220 and 274.230. Allows cooperative marketing associations to use any form of entity when conducting its business operations. Currently, associations may only use, be a member of, or have an interest in, a corporation or corporations without capital stock.

SECTION 274.310. Requires the Department of Agriculture to provide assistance to agricultural producers regarding cooperative marketing, cooperative processing, the development of regional and niche markets.

SECTION 447.708. Allows the enterprise zone and business facility tax credits currently authorized for eligible abandoned property renovation projects to offset income taxes. These projects may qualify for state tax credits for a minimum of 4 tax periods and a maximum of 10 tax years, and local incentives may be provided for no more than 15 years.

SECTION 620.014. Allows the amount and recipient of any tax credits to be deemed a "closed record".

SECTION 620.158. Extends the sunset date for the Missouri Rural Economic Development Council from June 30, 2000, to June 30, 2010.

SECTION 620.1039. Limits the tax credits for qualified research expenses to 200% of the average research expenses incurred during the three preceding taxable years, and authorizes the Director of Economic Development, rather than the Director of Revenue, to prescribe how the tax credits may be claimed.

SECTIONS 700.009, 700.010, 700.012, 700.100, 700.450. Creates the "Manufactured Housing Commission" within the Department of Economic Development. Transfers the Public Service Commission's duties with respect to manufactured housing to the Missouri Housing Commission. The Public Service Commission shall retain regulatory authority over recreational vehicles primarily designed to provide temporary living quarters.

SECTION 1. Authorizes counties and municipalities, excepting Jackson County, St. Louis City and St. Louis County, to impose a sales tax on retail sales, to be used only for local economic development. Any such tax must be approved by voters. Maximum tax rates based on population are outlined.

SECTIONS 2-6. Establishes a 9 member film commission to advise the Department of Economic Development on the promotion of the film production and facilities in Missouri. In addition, the Office of the Missouri Film Commission is established and shall be located in Jefferson City. This office replaces any existing state agency organized to promote film production, and is required to closely coordinate its efforts with any local film office. Subject to appropriations, up to 3 satellite offices are to be established in various locations in the state.

SECTION 7. Requires the Department of Economic Development to promulgate rules for coordinating the job training resources administered by the department, so as to provide assistance to businesses which have received state tax credits or related benefits for the creation of new jobs. Methods to be used for creating opportunities for economically disadvantaged citizens for employment in the new jobs created shall be included in the rules.

SECTIONS 8-23. These sections shall be known as the "Missouri Business Use Incentives for Large-Scale Development Act".

This act provides parameters and authorizes the Department of Economic Development ("Department") and the Missouri Development Finance Board ("Board") to attract eligible industries that must invest at least $200M in an economic development project and create at least 100 new jobs.

State-owned post secondary technical colleges may receive appropriations from the Missouri Job Development Fund. Section 620.482, RSMo, currently authorizes the Department to provide such assistance only to community college business and technology centers.

SECTION 9. Defines 14 relevant terms including economic development project, eligible industry, incremental income tax withholding and program costs. This act expands the definition of "eligible industry" as contained in SB 712 to include certain ethanol plants which are 81% or more owned by producers of agricultural products.

SECTION 10. Gives the Board the power and authority to effectuate this legislation, including the ability to negotiate and sign financing agreements and otherwise support economic development within the state. The Board may issue bonds to finance the economic development projects, but said bonds shall not constitute an indebtedness or liability of the state and are not guaranteed by the state.

SECTION 11. Requires the Department and the Board to establish application procedures and standards.

SECTION 12. Allows the Board to enter into a financing agreement with any eligible industry.

SECTION 13. Delineates the substance of such financing agreement.

SECTION 14. Enacts guidelines for the Board to follow when entering into an agreement for a credit.

SECTION 15. Lists factors the Board must consider when determining if a credit should be awarded.

SECTION 16. Specifies that the amount of the credit, set by the Board, may not exceed the incremental income tax withholding.

SECTION 17. Provides for items which must be included in an agreement between the Board and an eligible industry.

SECTION 18. Provides procedure when the industry fails to comply with the credit agreement.

SECTION 19. Requires an annual evaluation of the program.

SECTION 20. The agreement between the board and eligible industry shall require program costs to be met by receipt of incremental increase tax withholding.

SECTION 21. The Board must establish a separate fund for each project.

SECTION 22. The Board may borrow money and issue certificates marketed through financial institutions authorized to do business in Missouri to provide funds for the present payment of the costs of economic development projects.

SECTION 23. The "Missouri Large-Scale Development Fund" is established in the State Treasury and shall be administered by the Department. All incremental tax withholdings remitted by employers shall be transferred to the fund by the Department of Revenue. General revenue funds shall not be transferred to the fund.

SECTION 24. Allows emergency service districts which provide service to the redevelopment area to be eligible to be reimbursed from the special allocation fund for direct costs to the extent the district can demonstrate that the increased revenues from such projects are insufficient to fund such direct costs. Such reimbursement shall be between 25 and 100% of the district's tax increment.

SECTIONS 25 and 26. Section 25 grants taxpayers a tax credit for 50% of the amount donated to domestic violence shelters. Section 26 grants a tax credit for 50% of the amount donated to maternity homes. In order to receive either credit, at least $100 must be donated and the maximum credit is $50,000. The credit may only be used up to the amount of the taxpayer's tax liability, but may be carried forward for four years. The aggregate maximum amount of the credits allowed in a fiscal year is $4 million, $2 million under each section.

Section 700.012 shall become effective July 1, 1997. Sections with tax implications shall become effective January 1, 1997 (See Section C of the act.).
TOM CRAWFORD

SA 1 - DNR AUTHORIZED TO ACQUIRE THE RICE-TREMONTI HOME.