Offered March 18, 1997.

Senate Substitute adopted, March 19, 1997.

Taken up for Perfection March 19, 1997. Bill declared Perfected and Ordered Printed, as amended.

TERRY L. SPIELER, Secretary.

S0804.05P

To repeal sections 135.208, 143.805, 148.064, 178.896, 620.1072 and 620.1078, RSMo 1994, and sections 135.100, 135.200, 135.225, 135.230, 135.247, 135.352, 135.460, 135.500, 135.503, 135.508, 135.516, 144.030, 178.895 and 447.710, RSMo Supp. 1996, relating to the department of economic development, and to enact in lieu thereof thirty-nine new sections relating to the same subject.

Be it enacted by the General Assembly of the State of Missouri, as follows:

          Section A. Sections 135.208, 143.805, 148.064, 178.896, 620.1072 and 620.1078, RSMo 1994, and sections 135.100, 135.200, 135.225, 135.230, 135.247, 135.352, 135.460, 135.500, 135.503, 135.508, 135.516, 144.030, 178.895 and 447.710, RSMo Supp. 1996, are repealed and thirty-nine new sections enacted in lieu thereof, to be known as sections 135.100, 135.200, 135.208, 135.225, 135.230, 135.247, 135.313, 135.352, 135.460, 135.500, 135.503, 135.508, 135.516, 144.030, 148.064, 178.895, 178.896, 447.710, 620.030, 620.1072, 620.1078, 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17 and 18 to read as follows:

     135.100. As used in sections 135.100 to 135.150 the following terms shall mean:

     (1) "Commencement of commercial operations" shall be deemed to occur during the first taxable year for which the new business facility is first available for use by the taxpayer, or first capable of being used by the taxpayer, in the revenue producing enterprise in which the taxpayer intends to use the new business facility;

     (2) "Existing business facility", any facility in this state which was employed by the taxpayer claiming the credit in the operation of a revenue producing enterprise immediately prior to an expansion, acquisition, addition, or replacement;

     (3) "Facility", any building used as a revenue producing enterprise located within the state, including the land on which the facility is located and all machinery, equipment and other real and depreciable tangible personal property acquired for use at and located at or within such facility and used in connection with the operation of such facility;

     (4) "New business facility", a facility which satisfies the following requirements:

     (a) Such facility is employed by the taxpayer in the operation of a revenue producing enterprise. Such facility shall not be considered a new business facility in the hands of the taxpayer if the taxpayer's only activity with respect to such facility is to lease it to another person or persons. If the taxpayer employs only a portion of such facility in the operation of a revenue producing enterprise, and leases another portion of such facility to another person or persons or does not otherwise use such other portions in the operation of a revenue producing enterprise, the portion employed by the taxpayer in the operation of a revenue producing enterprise shall be considered a new business facility, if the requirements of paragraphs (b), (c), (d) and (e) of this subdivision are satisfied;

     (b) Such facility is acquired by, or leased to, the taxpayer after December 31, 1983. A facility shall be deemed to have been acquired by, or leased to, the taxpayer after December 31, 1983, if the transfer of title to the taxpayer, the transfer of possession pursuant to a binding contract to transfer title to the taxpayer, or the commencement of the term of the lease to the taxpayer occurs after December 31, 1983, or, if the facility is constructed, erected or installed by or on behalf of the taxpayer, such construction, erection or installation is commenced after December 31, 1983;

     (c) If such facility was acquired by the taxpayer from another person or persons and such facility was employed immediately prior to the transfer of title to such facility to the taxpayer, or to the commencement of the term of the lease of such facility to the taxpayer, by any other person or persons in the operation of a revenue producing enterprise, the operation of the same or a substantially similar revenue producing enterprise is not continued by the taxpayer at such facility;

     (d) Such facility is not a replacement business facility, as defined in subdivision (10) of this section; and

     (e) The new business facility investment exceeds one hundred thousand dollars during the tax period in which the credits are claimed;

     (5) "New business facility employee", a person employed by the taxpayer in the operation of a new business facility during the taxable year for which the credit allowed by section 135.110 is claimed, except that truck drivers and rail and barge vehicle operators shall not constitute new business facility employees. A person shall be deemed to be so employed if such person performs duties in connection with the operation of the new business facility on:

     (a) A regular, full-time basis; or

     (b) A part-time basis, provided such person is customarily performing such duties an average of at least twenty hours per week; or

     (c) A seasonal basis, provided such person performs such duties for at least eighty percent of the season customary for the position in which such person is employed;

     (6) "New business facility income", the Missouri taxable income, as defined in chapter 143, RSMo, derived by the taxpayer from the operation of the new business facility. For the purpose of apportionment as prescribed in this subdivision, the term "Missouri taxable income" means, in the case of insurance companies, direct premiums as defined in chapter 148, RSMo. If a taxpayer has income derived from the operation of a new business facility as well as from other activities conducted within this state, the Missouri taxable income derived by the taxpayer from the operation of the new business facility shall be determined by multiplying the taxpayer's Missouri taxable income, computed in accordance with chapter 143, RSMo, or in the case of an insurance company, computed in accordance with chapter 148, RSMo, by a fraction, the numerator of which is the property factor, as defined in paragraph (a) of this subdivision, plus the payroll factor, as defined in paragraph (b) of this subdivision, and the denominator of which is two:

     (a) The property factor is a fraction, the numerator of which is the new business facility investment certified for the tax period, and the denominator of which is the average value of all the taxpayer's real and depreciable tangible personal property owned or rented and used in this state during the tax period. The average value of all such property shall be determined as provided in chapter 32, RSMo;

     (b) The payroll factor is a fraction, the numerator of which is the total amount paid during the tax period by the taxpayer for compensation to persons qualifying as new business facility employees, as determined by subsection 4 of section 135.110, at the new business facility, and the denominator of which is the total amount paid in this state during the tax period by the taxpayer for compensation. The compensation paid in this state shall be determined as provided in chapter 32, RSMo. For the purpose of this subdivision, "other activities conducted within this state" shall include activities previously conducted at the expanded, acquired or replaced facility at any time during the tax period immediately prior to the tax period in which commencement of commercial operations occurred;

     (7) "New business facility investment", the value of real and depreciable tangible personal property, acquired by the taxpayer as part of the new business facility, which is used by the taxpayer in the operation of the new business facility, during the taxable year for which the credit allowed by section 135.110 is claimed, except that trucks, truck-trailers, truck semitrailers, rail and barge vehicles and other rolling stock for hire, track, switches, barges, bridges, tunnels and rail yards and spurs shall not constitute new business facility investments. The total value of such property during such taxable year shall be:

     (a) Its original cost if owned by the taxpayer; or

     (b) Eight times the net annual rental rate, if leased by the taxpayer. The net annual rental rate shall be the annual rental rate paid by the taxpayer less any annual rental rate received by the taxpayer from subrentals. The new business facility investment shall be determined by dividing by twelve the sum of the total value of such property on the last business day of each calendar month of the taxable year. If the new business facility is in operation for less than an entire taxable year, the new business facility investment shall be determined by dividing the sum of the total value of such property on the last business day of each full calendar month during the portion of such taxable year during which the new business facility was in operation by the number of full calendar months during such period;

     (8) "Office", a regional, national or international headquarters, a telemarketing operation, [a computer operation,] an insurance company, a passenger transportation ticket/reservation system or a credit card billing and processing center. For the purposes of this subdivision, "headquarters" means the administrative management of at least four integrated facilities operated by the taxpayer or related taxpayer. An office, as defined in this subdivision, when established must create and maintain positions for a minimum number of twenty-five new business facility employees as defined in subdivision (5) of this section;

     (9) "Related taxpayer" shall mean:

     (a) A corporation, partnership, trust or association controlled by the taxpayer;

     (b) An individual, corporation, partnership, trust or association in control of the taxpayer; or

     (c) A corporation, partnership, trust or association controlled by an individual, corporation, partnership, trust or association in control of the taxpayer. For the purposes of sections 135.100 to 135.150, "control of a corporation" shall mean ownership, directly or indirectly, of stock possessing at least fifty percent of the total combined voting power of all classes of stock entitled to vote; "control of a partnership or association" shall mean ownership of at least fifty percent of the capital or profits interest in such partnership or association; and "control of a trust" shall mean ownership, directly or indirectly, of at least fifty percent of the beneficial interest in the principal or income of such trust; ownership shall be determined as provided in section 318 of the U.S. Internal Revenue Code;

     (10) "Replacement business facility", a facility otherwise described in subdivision (4) of this section, hereafter referred to in this subdivision as "new facility", which replaces another facility, hereafter referred to in this subdivision as "old facility", located within the state, which the taxpayer or a related taxpayer previously operated but discontinued operating on or before the close of the first taxable year in which the credit allowed by this section is claimed. A new facility shall be deemed to replace an old facility if the following conditions are met:

     (a) The old facility was operated by the taxpayer or a related taxpayer during the taxpayer's or related taxpayer's taxable period immediately preceding the taxable year in which commencement of commercial operations occurs at the new facility; and

     (b) The old facility was employed by the taxpayer or a related taxpayer in the operation of a revenue producing enterprise and the taxpayer continues the operation of the same or substantially similar revenue producing enterprise at the new facility. Notwithstanding the preceding provisions of this subdivision, a facility shall not be considered a replacement business facility if the taxpayer's new business facility investment, as computed in subsection 5 of section 135.110, in the new facility during the tax period in which the credits allowed in sections 135.110, 135.225 and 135.235 and the exemption allowed in section 135.220 are claimed exceed one million dollars or, if less, two hundred percent of the investment in the old facility by the taxpayer or related taxpayer, and if the total number of employees at the new facility exceeds the total number of employees at the old facility by at least two except that the total number of employees at the new facility exceeds the total number of employees at the old facility by at least twenty-five if an office as defined in subdivision (8) of this section is established by a revenue producing enterprise other than a revenue producing enterprise defined in paragraphs (a) to (g) and (i) to (l) of subdivision (11) of this section;

     (11) "Revenue producing enterprise" means:

     (a) Manufacturing activities classified as SICs 20 through 39;

     (b) Agricultural activities classified as SIC 025;

     (c) Rail transportation terminal activities classified as SIC 4013;

     (d) Motor freight transportation terminal activities classified as SIC 4231;

     (e) Public warehousing and storage activities classified as SICs 422 and 423 except SIC 4221, miniwarehouse warehousing and warehousing self-storage;

     (f) Water transportation terminal activities classified as SIC 4491;

     (g) Wholesale trade activities classified as SICs 50 and 51;

     (h) Insurance carriers activities classified as SICs 631, 632 and 633;

     (i) Research and development activities classified as SIC 873, except 8733;

     (j) Farm implement dealer activities classified as SIC 5999;

     (k) Interexchange telecommunications services as defined in subdivision (20) of section 386.020, RSMo, or training activities conducted by an interexchange telecommunications company as defined in subdivision (19) of section 386.020, RSMo;

     (l) Recycling activities classified as SIC 5093;

     (m) Office activities as defined in subdivision (8) of this section, notwithstanding SIC classification;

     (n) Mining activities classified as SICs 10 through 14;

     (o) Car race track activities classified as SIC 7948 provided, notwithstanding any law to the contrary, the new business facility investment as defined in subdivision (7) of this section, and as determined in subdivision (7) of this section or in subsection 5 of section 135.110, exceeds one hundred million dollars during each tax period the taxpayer claims the tax credits;

     (p) Computer programming, data processing and other computer related activities classified as SIC 737;

     (q) The administrative management of any of the foregoing activities; or

     [(p)] (r) Any combination of any of the foregoing activities;

     (12) "Same or substantially similar revenue producing enterprise", a revenue producing enterprise in which the nature of the products produced or sold, or activities conducted, are similar in character and use or are produced, sold, performed or conducted in the same or similar manner as in another revenue producing enterprise;

     (13) "SIC", the primary standard industrial classification as such classifications are defined in the 1987 edition of the Standard Industrial Classification Manual as prepared by the Executive Office of the President, Office of Management and Budget. For the purpose of this subdivision, "primary" means at least fifty percent of the activities so classified are performed at the new business facility during the taxpayer's tax period in which such tax credits are being claimed;

     (14) "Taxpayer", an individual proprietorship, corporation described in section 143.441 or 143.471, RSMo, and partnership or an insurance company subject to the tax imposed by chapter 148, RSMo, or in the case of an insurance company exempt from the thirty percent employee requirement of section 135.230, to any obligation imposed pursuant to section 375.916, RSMo.

     135.200. The following terms, whenever used in sections 135.200 to 135.256, mean:

     (1) "Department", the department of economic development;

     (2) "Director", the director of the department of economic development;

     (3) "Facility", any building used as a revenue producing enterprise located within an enterprise zone, including the land on which the facility is located and all machinery, equipment and other real and depreciable tangible personal property acquired for use at and located at or within such facility and used in connection with the operation of such facility;

     (4) "Governing authority", the body holding primary legislative authority over a county or incorporated municipality;

     (5) "New business facility" shall have the meaning defined in section 135.100, except that the term "lease" as used therein shall not include the leasing of property defined in paragraph (d) of subdivision (6) of this section;

     (6) "Revenue producing enterprise", means:

     (a) Manufacturing activities classified as SICs 20 through 39;

     (b) Agricultural activities classified as SIC 025;

     (c) Rail transportation terminal activities classified as SIC 4013;

     (d) Renting or leasing of residential property to low and moderate income persons as defined in federal law, 42 U.S.C. 5302(a)(20);

     (e) Motor freight transportation terminal activities classified as SIC 4231;

     (f) Public warehousing and storage activities classified as SICs 422 and 423 except SIC 4221, miniwarehouse warehousing and warehousing self-storage;

     (g) Water transportation terminal activities classified as SIC 4491;

     (h) Wholesale trade activities classified as SICs 50 and 51;

     (i) Insurance carriers activities classified as SICs 631, 632 and 633;

     (j) Research and development activities classified as SIC 873, except 8733;

     (k) Farm implement dealer activities classified as SIC 5999;

     (l) Employment agency activities classified as SIC 7361;

     (m) Computer programming, data processing and other computer related activities classified as SIC 737;

     (n) Health service activities classified as SICs 801, 802, 803, 804, 806, 807, 8092 and 8093;

     (o) Interexchange telecommunications as defined in subdivision (20) of section 386.020, RSMo, or training activities conducted by an interexchange telecommunications company as defined in subdivision (19) of section 386.020, RSMo;

     (p) Recycling activities classified as SIC 5093;

     (q) Banking activities classified as SICs 602 and 603;

     (r) Office activities as defined in subdivision (8) of section 135.100, notwithstanding SIC classification;

     (s) Mining activities classified as SICs 10 through 14;

     (t) Car race track activities classified as SIC 7948 provided, notwithstanding any law to the contrary, the new business facility investment as defined in subdivision (7) of this section, and as determined in subdivision (7) of this section or in subsection 5 of section 135.110, exceeds one hundred million dollars during each tax period the taxpayer claims the tax credits;

     (u) The administrative management of any of the foregoing activities; or

     [(u)] (v) Any combination of any of the foregoing activities;

     (7) "Satellite zone", a noncontiguous addition to an existing state designated enterprise zone;

     (8) "SIC", the primary standard industrial classification as such classifications are defined in the 1987 edition of the Standard Industrial Classification Manual as prepared by the Executive Office of the President, Office of Management and Budget. For the purpose of this subdivision, "primary" means at least fifty percent of the activities so classified are performed at the new business facility during the taxpayer's tax period in which such tax credits are being claimed.      135.208. 1. In addition to the number of enterprise zones authorized under the provisions of sections 135.206 and 135.210, the department of economic development shall designate one such zone in any county of the third class which is south of the Missouri River and which adjoins one county of the second class and also the state of Oklahoma. Such designation shall only be made if the area of the county which is to be included in the enterprise zone meets all the requirements of section 135.205.

     2. In addition to the number of enterprise zones authorized under the provisions of sections 135.206 and 135.210, the department of economic development shall designate one such zone in any county of the third class which borders the Missouri River and which adjoins a county of the second class with a population of at least one hundred thousand inhabitants and which contains a branch of the state university. Such designation shall only be made if the area of the county which is to be included in the enterprise zone meets all the requirements of section 135.205.

     3. In addition to the number of enterprise zones authorized under the provisions of sections 135.206, 135.210 and 135.256, the department of economic development shall designate one such zone in every county of the third class without a township form of government with a population of more than seven thousand eight hundred but less than ten thousand inhabitants located south of the Missouri River, which adjoins one third class county with a township form of government, and which adjoins no first or second class county. Such enterprise zone designation shall only be made if the area in the county which is to be included in the enterprise zone meets all the requirements of section 135.205.

     4. In addition to the number of enterprise zones authorized under the provisions of sections 135.206, 135.210 and 135.256, the department of economic development shall designate one such zone in the county seat of every county of the third class with a township form of government with a population of more than eighteen thousand but less than twenty-five thousand, and with an assessed valuation of between one hundred seventy million dollars and one hundred seventy-five million dollars as published in the 1996 proceedings of the Missouri state tax commission. Such enterprise zone designation shall only be made if the area in the county which is to be included in the enterprise zone meets all the requirements of section 135.205.

     135.225. 1. The credits otherwise provided by sections 135.100 to 135.150 shall be available to any taxpayer who shall establish and operate a new business facility located within an enterprise zone, except one designated pursuant to subsection 5 of section 135.230, on the same terms and conditions specified in those sections, except that:

     (1) The credit otherwise allowed for each new business facility employee employed within an enterprise zone shall be four hundred dollars;

     (2) An additional credit of four hundred dollars shall be granted for each twelve-month period that a new business facility employee is a resident of an enterprise zone;

     (3) An additional credit of four hundred dollars shall be granted for each twelve-month period that the person employed as a new business facility employee is a person who, at the time of such employment by the new business facility, met the criteria as set forth in section 135.240;

     (4) The credit otherwise allowed for new business facility investment shall be equal to the sum of ten percent of the first ten thousand dollars of such qualifying investment, plus five percent of the next ninety thousand dollars of such qualifying investment, plus two percent of all remaining qualifying investments within an enterprise zone;

     (5) In the case of a small corporation described in section 143.471, RSMo, or a partnership, the credits granted by this section shall be apportioned in proportion to the share of ownership of the taxpayer on the last day of the taxpayer's tax period for which such tax credits are being claimed, to the following:

     (a) The shareholders of a small corporation described in section 143.471, RSMo;

     (b) The partners in a partnership;

     (6) In the case of financial institutions described under the provisions of chapter 148, RSMo, the credits allowed in subdivisions (1), (2), (3) and (4) of this subsection and the credit allowed in section 135.235 may be used to offset the tax imposed by chapter 148, RSMo, and, in the case of an insurance company exempt from the thirty percent employee requirement of section 135.230, any obligations imposed pursuant to section 375.916, RSMo, subject to the same method of apportionment as prescribed for taxes imposed by chapter 143, RSMo, and as provided in subdivision (6) of section 135.100 and subsections 2 and 3 of section 135.110;

     (7) If a facility within an enterprise zone, which does not constitute a new business facility, is expanded or improved by the taxpayer within the enterprise zone, the expansion or improvement shall be considered a separate facility eligible for the credits allowed in this section and section 135.235, and the exemption allowed in section 135.220, if:

     (a) The new business facility investment in the expansion or improvement during the tax period in which such credits and the exemption are claimed exceeds one hundred thousand dollars or, if less than one hundred thousand dollars, is twenty-five percent of the investment in the original facility prior to expansion or improvement; and

     (b) The expansion or improvement otherwise constitutes a new business facility; and

     (c) The number of new business facility employees engaged or maintained in employment at the expanded or improved facility for the taxable year for which the credit is claimed equals or exceeds two and the total number of employees at the facility after expansion or improvement is at least two greater than the total number of employees before expansion or improvement. The taxpayer's investment in the expansion or improvement and in the original facility prior to expansion or improvement shall be determined in the manner provided in subdivision (7) of section 135.100;

     (8) For the purpose of sections 135.200 to 135.256, an office as defined in subdivision (8) of section 135.100, when established, must create and maintain at least two new business facility employees as defined in subdivision (5) of section 135.100;

     (9) In the case where a person employed by the new business facility is a resident of the enterprise zone for less than a twelve-month period, or in the case where a person employed as a new business facility employee is a person who, at the time of such employment by the new business facility, met the criteria as set forth in section 135.240, is employed for less than a twelve-month period, the credits allowed by subdivisions (2) and (3) of this subsection shall be determined by multiplying four hundred dollars by a fraction, the numerator of which is the number of calendar days during the taxpayer's tax year for which such credits are claimed, in which the person met the requirements prescribed in subdivision (2) or (3) of this subsection, and the denominator of which is three hundred and sixty-five, except that such credit shall not exceed four hundred dollars per employee in any one taxable year;

     (10) The deferment of tax credit authorized in section 135.120 shall not be available to taxpayers establishing a new business facility in an enterprise zone;

     (11) The allowance for additional ten-year periods to certain new business facilities as prescribed in subsection 1 of section 135.110 shall not be available to taxpayers expanding a new business facility in an enterprise zone, except that any taxpayer who has been eligible to earn enterprise zone tax benefits for ten tax periods, or until the expiration of the fifteen-year period as prescribed in subsection 1 of section 135.230, or for the maximum period otherwise allowed by law, may qualify for the tax credits allowed in section 135.110 if otherwise eligible, under the same terms and conditions prescribed in sections 135.100 to 135.150;

     (12) Taxpayers who establish a new business facility by operating a revenue producing enterprise as defined in paragraph (d) of subdivision (6) of section 135.200 shall not be required to create and maintain new business facility employees.

     2. The tax credits described in subdivisions (1), (2), (3) and (4) of subsection 1 of this section, the training credit allowed in section 135.235, and the income exemption allowed in section 135.220, shall be allowed to any taxpayer, under the same terms and conditions specified in such sections, who establishes a new business facility in an enterprise zone designated pursuant to subsection 5 of section 135.230, except that all such tax benefits shall be removed not later than seven years after the enterprise zone is designated as such.

     3. Notwithstanding any provision of law to the contrary, any taxpayer who establishes a new business facility in an enterprise zone, may elect to forfeit the tax credits otherwise allowed in section 135.235 and this section and the exemptions otherwise allowed in sections 135.215 and 135.220 and the refund otherwise allowed in section 135.245, and in lieu thereof, claim the tax credits allowed in section 135.110, under the same terms and conditions prescribed in sections 135.100 to 135.150. To perfect the election, the taxpayer shall attach written notification of such election to the taxpayer's initial application for claiming tax credits. The election shall be irreversible once perfected.

     135.230. 1. The exemption or credit established and allowed by section 135.220 and the credits allowed and established by subdivisions (1), (2), (3) and (4) of subsection 1 of section 135.225 shall be granted with respect to any new business facility located within an enterprise zone for a period not to exceed ten years following the date upon which the new business facility commences operation within the enterprise zone, provided that all such credits allowed in sections 135.225 and 135.235 and the exemption allowed in section 135.220 shall be removed not later than fifteen years after the enterprise zone is designated as such. No credits shall be allowed pursuant to subdivision (1), (2), (3) or (4) of subsection 1 of section 135.225 or section 135.235 and no exemption shall be allowed under section 135.220 unless the number of new business facility employees engaged or maintained in employment at the new business facility for the taxable year for which the credit is claimed equals or exceeds two or the new business facility is a revenue producing enterprise as defined in paragraph (d) of subdivision (6) of section 135.200. In order to qualify for either the exemption pursuant to section 135.220 or the credit pursuant to subdivision (4) of subsection 1 of section 135.225, or both, it shall be required that at least thirty percent of new business facility employees, as determined by subsection 4 of section 135.110, meet the criteria established in section 135.240 or are residents of an enterprise zone or some combination thereof, except taxpayers who establish a new business facility by operating a revenue producing enterprise as defined in paragraphs (a) and (d) of subdivision (6) of section 135.200 or any taxpayer that is an insurance company that established a new business facility satisfying the requirements of subdivision (8) of section 135.100 located within an enterprise zone after June 30, 1993, and before December 31, 1994, and that employs in excess of three hundred fifty new business facility employees at such facility each tax period for which the credits allowable pursuant to subdivisions (1) to (4) of subsection 1 of section 135.225 are claimed shall not be required to meet such requirement. [A new business facility described in paragraph (a) of subdivision (6) of section 135.200 shall be required to employ fifteen percent of such employees instead of the required thirty percent.] For the purpose of satisfying the thirty percent requirement, residents must have lived in the enterprise zone for a period of at least one full calendar month and must have been employed at the new business facility for at least one full calendar month, and persons qualifying because they meet the requirements of section 135.240 must have satisfied such requirement at the time they were employed by the new business facility and must have been employed at the new business facility for at least one full calendar month. [In addition, the taxpayer shall certify to the director that the taxpayer fulfills the requirements of this section each tax period such benefits are being claimed.] The director may temporarily reduce or waive this requirement for any business in an enterprise zone with ten or less full-time employees, and for businesses with eleven to twenty full-time employees this requirement may be temporarily reduced. No reduction or waiver may be granted for more than one tax period and shall not be renewable. The exemptions allowed in sections 135.215 and 135.220 and the credits allowed in sections 135.225 and 135.235 and the refund established and authorized in section 135.245 shall not be allowed to any "public utility", as such term is defined in section 386.020, RSMo.

     2. Notwithstanding the provisions of subsection 1 of this section, motor carriers, barge lines or railroads engaged in transporting property for hire or any interexchange telecommunications company that establish a new business facility shall be eligible to qualify for the exemptions allowed in sections 135.215 and 135.220, and the credits allowed in sections 135.225 and 135.235 and the refund established and authorized in section 135.245, except that trucks, truck-trailers, truck semitrailers, rail or barge vehicles or other rolling stock for hire, track, switches, bridges, barges, tunnels, rail yards and spurs shall not constitute new business facility investment nor shall truck drivers or rail or barge vehicle operators constitute new business facility employees.

     3. Notwithstanding any other provision of sections 135.200 to 135.256 to the contrary, motor carriers establishing a new business facility on or after January 1, 1993, but before January 1, 1995, may qualify for the tax credits available pursuant to sections 135.225 and 135.235 and the exemption provided in section 135.220, even if such new business facility has not satisfied the employee criteria, provided that such taxpayer employs an average of at least two hundred persons at such facility, exclusive of truck drivers and provided that such taxpayer maintains an average investment of at least ten million at such facility, exclusive of rolling stock, during the tax period for which such credits and exemption are being claimed.

     4. Any governing authority having jurisdiction of an area that has been designated an enterprise zone may petition the department to expand the boundaries of such existing enterprise zone. The director may approve such expansion if the director finds that:

     (1) The area to be expanded meets the requirements prescribed in section 135.207 or 135.210, whichever is applicable;

     (2) The area to be expanded is contiguous to the existing enterprise zone;

     (3) The number of expansions do not exceed three after August 28, 1994.

     5. Notwithstanding the fifteen-year limitation as prescribed in subsection 1 of this section, any governing authority having jurisdiction of an area that has been designated as an enterprise zone by the director, except one designated pursuant to this subsection, may file a petition, as prescribed by the director, for redesignation of such area for an additional period not to exceed seven years following the fifteenth anniversary of the enterprise zone's initial designation date; provided:

     (1) The petition is filed with the director within three years prior to the date the tax credits authorized in sections 135.225 and 135.235 and the exemption allowed in section 135.220 are required to be removed pursuant to subsection 1 of this section;

     (2) The governing authority identifies and conforms the boundaries of the area to be designated a new enterprise zone to the political boundaries established by the latest decennial census, unless otherwise approved by the director;

     (3) The area satisfies the requirements prescribed in subdivisions (3), (4) and (5) of section 135.205 according to the latest decennial census or other appropriate source as approved by the director;

     (4) The governing authority satisfies the requirements prescribed in sections 135.210, 135.215 and 135.255;

     (5) The director finds that the area is unlikely to support reasonable tax assessment or to experience reasonable economic growth without such designation; and

     (6) The director's recommendation that the area be designated as an enterprise zone, is approved by the joint committee on economic development policy and planning, as otherwise required in subsection 3 of section 135.210.

     6. Any taxpayer having established a new business facility in an enterprise zone except one designated pursuant to subsection 5 of this section, who did not earn the tax credits authorized in sections 135.225 and 135.235 and the exemption allowed in section 135.220 for the full ten-year period because of the fifteen-year limitation as prescribed in subsection 1 of section 135.230, shall be eligible to earn such benefits for ten tax years, less the number of tax years the benefits were claimed or could have been claimed prior to the expiration of the original fifteen-year period, except that such tax benefits shall not be earned for more than seven tax periods during the ensuing seven-year period, provided the taxpayer continues to operate the new business facility in an area that is designated an enterprise zone pursuant to subsection 5 of this section. Any taxpayer who establishes a new business facility subsequent to the commencement of the ensuing seven-year period, as authorized in subsection 5 of this section, may qualify for the tax credits authorized in sections 135.225 and 135.235, and the exemptions authorized in sections 135.215 and 135.220, under the same terms and conditions as prescribed in sections 135.100 to 135.256. The designation of any enterprise zone pursuant to subsection 5 of this section shall not be subject to the fifty enterprise zone limitation imposed in subsection 4 of section 135.210.

     135.247. 1. Notwithstanding the provisions of sections 135.205, 135.207, and 135.210 or any other provisions to the contrary, any area having been designated by the United States Department of Housing and Urban Development as a federal empowerment zone or by the United States Department of Agriculture as an enterprise community pursuant to the federal Omnibus Budget Reconciliation Act of 1993, title XIII, chapter I, subchapter c, shall immediately upon such federal designation become and remain a state enterprise zone until the expiration of such federal designation.

     2. The credits otherwise provided by sections 135.225 and 135.235, the exemption provided by section 135.220, and the refund provided by section 135.245 shall be available to any taxpayer who establishes and operates a new business facility located within a federal empowerment zone or enterprise community on the same terms and conditions specified in sections 135.100 to 135.256. The exemption provided in section 135.215 shall be available to any taxpayer who makes improvements to real property after the date the area is designated as a federal empowerment zone or enterprise community under the same terms and conditions specified in section 135.215.

     3. Notwithstanding any provision of law to the contrary, retail businesses, as defined by SICs 52 through 59, hotels and motels, as defined by SIC 7011, and recreational facilities as defined by SIC 7999, shall be eligible for all benefits provided pursuant to the provisions of sections 135.200 to 135.256, if:

     (1) In the case of retail business, such business is located within a state-designated enterprise zone located wholly or partially within a federal empowerment zone or enterprise community; or

     (2) Such business is located within a satellite enterprise zone, established pursuant to subdivision (1) or (3) of subsection 1 of section 135.207, whether or not such satellite zone is contained within a federal empowerment zone or enterprise community; or

     (3) In the case of hotels and motels, such business is located within an enterprise zone which is located within any county of the first classification with a population of at least five hundred thousand but less than seven hundred thousand inhabitants according to the last decennial census, or in an enterprise zone which is located within any city of the third classification which is partially located within a county of the first class with a population of one hundred fifty thousand or more which is adjacent to a county of the first classification with a population of at least five hundred thousand but less than seven hundred thousand according to the last decennial census[.]; or

     (4) In the case of a recreational facility, such business is located within an area designated a satellite enterprise zone pursuant to subdivision (1) of subsection 1 of section 135.207, by the director after January 1, 1991, and before January 2, 1992, in any city not within a county, and further provided the director approves the eligibility of such recreational facility to claim tax benefits otherwise allowed in sections 135.200 to 135.256. When making such determination, the director shall consider the number and quality of new jobs to be created, the amount of payroll and investment to be generated from the proposed project, the extent to which such tax concessions are needed to induce the development, whether the area is unlikely to support reasonable tax assessment or to experience reasonable economic growth without such designation and the overall economic benefits to be realized from the proposed project.

     4. For purposes of qualifying for benefits pursuant to this section, recreational facilities, as defined by SIC 7999, shall not include:

     (1) An excursion gambling boat licensed pursuant to sections 313.800 to 313.850, RSMo, and the docking facility associated with such licensed excursion gambling boat; or

     (2) An excursion gambling boat and docking facility as proposed on an application filed with the Missouri gaming commission.

     135.313. 1. Any person, firm or corporation who engages in the business of producing charcoal or charcoal products in the state of Missouri shall be eligible for a tax credit on income taxes otherwise due under chapter 143, RSMo, except sections 143.191 to 143.261, RSMo, as an incentive to implement safe and efficient environmental controls. The tax credit shall be fifty percent of the purchase price of the best available control technology equipment connected with the production of charcoal in the state of Missouri. The credit may be claimed for a period of five years and is to be a tax credit against the tax otherwise due.

     2. Any amount of credit which exceeds the tax due shall not be refunded but may be carried over to any subsequent taxable year, not to exceed four years.

     3. The charcoal producer may elect to assign to a third party the approved tax credit. Certification of assignment and other appropriate forms must be filed with the Missouri department of revenue.

     4. When applying for a tax credit, the charcoal producer specified in subsection 1 of this section shall make application for the credit to the division of environmental quality of the department of natural resources. The application shall identify the specific best available control technology equipment and the purchase price of such equipment. The director of the department of natural resources is authorized to require permits to construct prior to the installation of best available control technology equipment and other information which he or she deems appropriate.

     5. The director of the department of natural resources shall certify to the department of revenue that the best available control technology equipment meets the requirements to obtain a tax credit as specified in this section.

     135.352. 1. A taxpayer owning an interest in a qualified Missouri project shall be allowed a state tax credit, whether or not allowed a federal tax credit, to be termed the Missouri low-income housing tax credit, if the commission issues an eligibility statement for that project.

     2. For qualified Missouri projects placed in service after January 1, 1997, the Missouri low-income housing tax credit available to a project shall be [calculated by multiplying] such amount as the commission shall determine is necessary to ensure the feasibility of the project, up to an amount equal to the federal low-income housing tax credit for a qualified Missouri project, for a federal tax period, [by twenty percent] and such amount shall be subtracted from the amount of state tax otherwise due for the same tax period.

     3. The Missouri low-income housing tax credit shall be taken against the taxes and in the order specified [under] pursuant to section 32.115, RSMo. The credit authorized by this section shall not be refundable. Any amount of credit that exceeds the tax due for a taxpayer's taxable year may be carried back to any of the taxpayer's three prior taxable years or carried forward to any of the taxpayer's five subsequent taxable years.

     4. [Notwithstanding the provisions of subsection 2 of this section, for qualified Missouri projects that are located in counties identified by the state of Missouri as eligible for disaster relief as a result of the flood of 1993, or in counties immediately adjoining such counties, and for which federal low-income housing tax credits are allocated in the year of 1994, 1995 or 1996, or for such longer period as is required to implement the Missouri comprehensive housing affordability strategy developed pursuant to section 105 of the Cranston-Gonzalez National Affordable Housing Act for such counties, the Missouri low-income housing tax credit available to such project shall be calculated by multiplying an amount equal to the federal low-income housing tax credit for a qualified Missouri project, for a federal tax period, by forty percent.

     5.] All or any portion of Missouri tax credits issued in accordance with the provisions of sections 135.350 to 135.362 may be allocated to parties who are eligible under the provisions of subsection 1 of this section. Beginning January 1, 1995, for qualified projects which began on or after January 1, 1994, an owner of a qualified Missouri project shall certify to the director the amount of credit allocated to each taxpayer. The owner of the project shall provide to the director appropriate information so that the low-income housing tax credit can be properly allocated.

     [6.] 5. In the event that recapture of Missouri low-income housing tax credits is required pursuant to subsection 2 of section 135.355, any statement submitted to the director as provided in this section shall include the proportion of the state credit required to be recaptured, the identity of each taxpayer subject to the recapture and the amount of credit previously allocated to such taxpayer.

     [7.] 6. The director of the department may promulgate rules and regulations necessary to administer the provisions of this section. No rule or portion of a rule promulgated under the authority of this section shall become effective unless it has been promulgated pursuant to the provisions of section 536.024, RSMo.

     135.460. 1. Section 135.460 and sections 620.1100 and 620.1103, RSMo, shall be known and may be cited as the "Youth Opportunities and Violence Prevention Act".

     2. As used in this section, the term "taxpayer" shall include [individuals as defined in section 143.011, RSMo, and corporations as defined in section 143.441, RSMo] corporations as defined in section 143.441 or 143.471, RSMo, and individuals, individual proprietorships and partnerships.

     3. A taxpayer shall be allowed a tax credit against the tax otherwise due under [sections 143.011 to 143.996, RSMo,] chapter 143, RSMo, excluding withholding tax imposed by sections 143.191 to 143.265, RSMo, chapter 147, RSMo, chapter 148, RSMo, or chapter 153, RSMo, in an amount equal to thirty percent for property contributions and fifty percent for monetary contributions of the amount such taxpayer contributed to the programs described in subsection 5 of this section, not to exceed two hundred thousand dollars per taxable year, per taxpayer; except [that, the amount of the credit claimed pursuant to this section shall not exceed the amount of the taxpayer's liability in the tax year that the credit is claimed, and except] as otherwise provided in subdivision (5) of subsection 5 of this section. [The tax credit shall be applied in the order used in section 143.805, RSMo. The taxpayer shall maintain evidence of such contribution and a copy of such evidence shall be enclosed with the taxpayer's tax return in order to receive such credit] The department of economic development shall prescribe the method for claiming the tax credits allowed in this section.

     4. The tax credit allowed by this section shall be claimed by the taxpayer [at the time the taxpayer files a return and shall be applied against the income tax liability imposed by chapter 143, RSMo, after all other credits provided by law have been applied.] to offset the taxes that become due in the taxpayer's tax period in which the contribution was made. Any tax credit not used in such tax period may be carried over the next five succeeding tax periods.

     5. The tax credit allowed by this section may only be claimed for monetary or property contributions to public or private programs authorized to participate under this section by the department of economic development and may be claimed for the development, establishment, implementation, operation, and expansion of the following activities and programs:

     (1) An adopt-a-school program. Components of the adopt-a-school program shall include donations for school activities, seminars, and functions; school-business employment programs; and the donation of property and equipment of the corporation to the school;

     (2) Expansion of programs to encourage school dropouts to reenter and complete high school or to complete a graduate equivalency degree program;

     (3) Employment programs. Such programs shall initially, but not exclusively, target unemployed youth living in poverty and youth living in areas with a high incidence of crime;

     (4) New or existing youth clubs or associations;

     (5) Employment/internship/apprenticeship programs in business or trades for persons less than twenty years of age, in which case the tax credit claimed pursuant to this section shall be equal to one-half of the amount paid to the intern or apprentice in that tax year, except that such credit shall not exceed ten thousand dollars per person;

     (6) Mentor and role model programs;

     (7) Drug and alcohol abuse prevention training programs for youth;

     (8) Donation of property or equipment of the taxpayer to schools, including schools which primarily educate children who have been expelled from other schools, or donation of the same to municipalities, or not for profit corporations or other not for profit organizations which offer programs dedicated to youth violence prevention as authorized by the department;

     (9) Not for profit, private or public youth activity centers;

     (10) Nonviolent conflict resolution and mediation programs;

     (11) Youth outreach and counseling programs.

     6. Any program authorized in subsection 5 of this section shall, at least annually, submit a report to the department of economic development outlining the purpose and objectives of such program, the number of youth served, the specific activities provided under such program, the duration of such program and recorded youth attendance where applicable.

     7. The department of economic development shall, at least annually submit a report to the Missouri general assembly listing the organizations participating, services offered and the number of youth served as the result of the implementation of this section.

     8. The tax credit allowed by this section shall apply to all taxable years beginning after December 31, 1995.

     9. For the purposes of the credits described in this section, in the case of a corporation described in section 143.471, RSMo, partnership, limited liability company described in section 347.015, RSMo, cooperative, marketing enterprise, or partnership, in computing Missouri's tax in computing Missouri's tax liability, such credits shall be allowed to the following:

     (1) The shareholders of the corporation described in section 143.471, RSMo;

     (2) The partners of the partnership;

     (3) The members of the limited liability company; and

     (4) Individual members of the cooperative or marketing enterprise.

Such credits shall be apportioned to the entities described in subdivisions (1) and (2) of this subsection in proportion to their share of ownership on the last day of the taxpayer's tax period.

     135.500. 1. Sections 135.500 to 135.529 shall be known and may be cited as the "Missouri Certified Capital Company Law".

     2. As used in sections 135.500 to 135.529, the following terms mean:

     (1) "Affiliate of a certified company":

     (a) Any person, directly or indirectly owning, controlling or holding power to vote ten percent or more of the outstanding voting securities or other ownership interests of the Missouri certified capital company;

     (b) Any person ten percent or more of whose outstanding voting securities or other ownership interest are directly or indirectly owned, controlled or held with power to vote by the Missouri certified capital company;

     (c) Any person directly or indirectly controlling, controlled by, or under common control with the Missouri certified capital company;

     (d) A partnership in which the Missouri certified capital company is a general partner;

     (e) Any person who is an officer, director or agent of the Missouri certified capital company or an immediate family member of such officer, director or agent;

     (2) "Applicable percentage", one hundred percent;

     (3) "Capital in a qualified Missouri business", any debt, equity or hybrid security, of any nature and description whatsoever, including a debt instrument or security which has the characteristics of debt but which provides for conversion into equity or equity participation instruments such as options or warrants which are acquired by a Missouri certified capital company as a result of a transfer of cash to a business. Capital in a qualified Missouri business shall not include secured debt instruments;

     (4) "Certified capital", an investment of cash by an investor in a Missouri certified capital company;

     (5) "Certified capital company", any partnership, corporation, trust or limited liability company, whether organized on a profit or not for profit basis, that is located, headquartered and registered to conduct business in Missouri that has as its primary business activity, the investment of cash in qualified Missouri businesses, and which is certified by the department as meeting the criteria of sections 135.500 to 135.529;

     (6) "Department", the Missouri department of economic development;

     (7) "Director", the director of the department of economic development or a person acting under the supervision of the director;

     (8) "Investor", any insurance company that contributes cash;

     (9) "Liquidating distribution", payments to investors or to the certified capital company from earnings;

     (10) "Person", any natural person or entity, including a corporation, general or limited partnership, trust or limited liability company;

     (11) "Qualified distribution", any distribution or payment to equity holders of a certified capital company in connection with the following:

     (a) Reasonable costs and expenses of forming, syndicating, managing and operating the certified capital company;

     (b) Management fees for managing and operating the certified capital company; and

     (c) Any increase in federal or state taxes, penalties and interest, including those related to state and federal income taxes, of equity owners of a certified capital company which related to the ownership, management or operation of a certified capital company;

     (12) "Qualified investment", the investment of cash by a Missouri certified capital company in such a manner as to acquire capital in a qualified Missouri business;

     (13) "Qualified Missouri business", an independently owned and operated business, which is headquartered and located in Missouri and which is in need of venture capital and cannot obtain conventional financing. Such business shall have no more than two hundred employees, eighty percent of which are employed in Missouri. Such business shall be involved in commerce for the purpose of manufacturing, processing or assembling products, conducting research and development, or providing services in interstate commerce, but excluding retail, real estate, real estate development, insurance and professional services provided by accountants, lawyers or physicians. If such business has been in existence for three years or less, its gross sales during its most recent complete fiscal years shall not have exceeded four million dollars. If such business has been in existence for longer than three years, its gross sales during its most recent complete fiscal year shall not have exceeded three million dollars. Any business which is classified as a qualified Missouri business at the time of the first investment in such business by a Missouri certified capital company shall, for a period of seven years from the date of such first investment, remain classified as a qualified Missouri business and may receive follow-on investments from any Missouri certified capital company and such follow-on investments shall be qualified investments even though such business may not meet the other qualifications of this subsection at the time of such follow-on investments;

     (14) "State premium tax liability", any liability incurred by an insurance company under the provisions of [section 148.370] sections 148.320, 148.340, 148.370 or 148.376, RSMo, and any other related provisions, which may impose a tax upon the premium income of insurance companies after January 1, 1997.

     135.503. 1. Any investor that makes an investment of certified capital shall, in the year of investment, earn a vested credit against state premium tax liability equal to the applicable percentage of the investor's investment of certified capital. An investor shall be entitled to take up to ten percent of the vested credit in any taxable year of the investor. Any time after three years after August 28, 1996, the director, with the approval of the commissioner of administration, may reduce the applicable percentage on a prospective basis. Any such reduction in the applicable percentage by the director shall not have any effect on credits against state premium tax liability which have been claimed or will be claimed by any investor with respect to credits which have been earned and vested pursuant to an investment of certified capital prior to the effective date of any such change.

     2. An insurance company claiming a state premium tax credit earned through an investment in a certified capital company shall not be required to pay any additional retaliatory tax levied pursuant to section 375.916, RSMo, as a result of claiming that credit.

     [2.] 3. The credit against state premium tax liability which is described in subsection 1 of this section may not exceed the state premium tax liability of the investor for any taxable year. All such credits against state premium tax liability may be carried forward indefinitely until the credits are utilized. The maximum amount of certified capital in one or more certified capital companies for which earned and vested tax credits will be allowed in any year to any one investor (or its affiliates) will be limited to ten million dollars.

     [3.] 4. The aggregate amount of certified capital for which earned and vested credits against state premium tax liability are allowed for all persons pursuant to sections 135.500 to 135.529 shall not exceed the following amounts: for calendar year 1996, $0.00; for calendar year 1997, an amount which would entitle all Missouri certified capital company investors to take aggregate credits of five million dollars; and for any year [thereafter], an additional amount to be determined by the director but not to exceed aggregate credits of ten million dollars for any year with the approval of the commissioner of administration and reported to the general assembly as provided in subsection 2 of section 33.282, RSMo, provided that the amount so determined shall not impair the ability of an investor with earned and vested credits which have been allowed in previous years to take them, pursuant to subsection 1 of this section. During any calendar year in which the limitation described in this subsection will limit the amount of certified capital for which earned and vested credits against state premium tax liability are allowed, certified capital for which credits are allowed will be allocated in order of priority based upon the date of filing of information described in subdivision (1) of subsection 5 of section 135.516. Certified capital limited in any calendar year by the application of the provisions of this subsection shall be allowed and allocated in the immediately succeeding calendar year in the order of priority set forth in this subsection.

     [4.] 5. The department shall advise any Missouri certified capital company, in writing, within fifteen days after receiving the filing described in subdivision (1) of subsection 5 of section 135.516 whether the limitations of subsection [3] 4 of this section then in effect will be applicable with respect to the investments and credits described in such filing with the department.

     6. Any investor which is not subject to state premium tax liability may use the credit referred to in this section against the investor's franchise and other taxes as permitted in section 148.064, RSMo, payable by the investor commencing in the year following the year of investment and subject to all other restrictions and limitations contained in sections 135.500 to 135.529.

     135.508. The department may certify profit or not for profit entities which submit an application to be designated as a Missouri certified capital company. The department shall review the organizational documents for each applicant for certification and the business history of the applicant, determine that the Missouri certified capital company's cash, marketable securities and other liquid assets are at least five hundred thousand dollars, determine that the liquid asset base for certified companies is at least five hundred thousand dollars at all times during the company's participation in the program authorized by sections 135.500 to 135.529, and determine that the officers and the board of directors, partners, trustees or managers are thoroughly acquainted with the requirements of sections 135.500 to 135.529. No insurance company [licensed by or transacting business in Missouri shall], individually or with or through one or more affiliates, be a managing general partner of or control the direction of investments of [a] that Missouri certified capital company. Within seventy-five days of application, the department shall either issue the certification and notify the department of revenue and the director of the department of insurance of such certification or shall refuse the certification and communicate in detail to the applicant the grounds for the refusal, including the suggestions for the removal of those grounds. The department shall be responsible for the administration of the tax credits authorized by sections 135.500 to 135.529.

     135.516. 1. To continue to be certified, a Missouri certified capital company shall make qualified investments according to the following schedule:

     (1) Within two years after the date on which a Missouri certified capital company is designated as a Missouri certified capital company at least twenty-five percent of its certified capital shall be, or have been, placed in qualified investments;

     (2) Within three years after the date on which a Missouri certified capital company is designated as a Missouri certified capital company at least forty percent of its certified capital shall be, or have been, placed in qualified investments;

     (3) Within four years after the date on which a Missouri certified capital company is designated as a Missouri certified capital company, at least fifty percent of its total certified capital shall be, or have been, placed in qualified investments. A Missouri certified capital company may not make an investment in an affiliate of the certified capital company. For the purposes of this subsection, if a legal entity is not an affiliate before a certified capital company initially invests in the entity, it will not be an affiliate if a certified capital company provides additional investment in such entity subsequent to its initial investment;

     (4) A certified capital company, at least fifteen working days prior to making what it determines to be an initial qualified investment in a specific qualified Missouri business, shall certify to the department that the company in which it proposes to invest meets the definition of a qualified Missouri business pursuant to subdivision (14) of subsection 2 of section 135.500. The certified capital company shall state the amount of capital it intends to invest and the name of the business in which it intends to invest. The certified capital company shall also provide to the department an explanation of its determination that the business meets the definition of a qualified Missouri business. If the department determines that the business does not meet the definition of a qualified Missouri business, it shall, within the fifteen-working-day period prior to the making of the proposed investment, notify the certified capital company of its determination and an explanation thereof. If the department fails to notify the certified capital company with respect to the proposed investment within the fifteen-working-day period prior to the making of the proposed investment, the company in which the certified capital company proposes to invest shall be deemed to be a qualified Missouri business. If a certified capital company fails to notify the department prior to making an initial investment in a business, the department may subsequently determine that the business in which the certified capital company invested was not a qualified Missouri business even though the business, at the time of the investment, met the requirements of subdivision (14) of subsection 2 of section 135.500;

     (5) All certified capital which is not required to be placed in qualified investments or which has been placed in qualified investments and can be received by the company, may be held or invested in such manner as the Missouri certified capital company, in its discretion, deems appropriate. The proceeds of all certified capital which is received by a certified capital company after it was originally placed in qualified investments may be placed again in qualified investments and shall count toward any requirement in sections 135.500 to 135.529 with respect to placing certified capital in qualified investments.

     2. A certified capital company may make qualified distributions at any time. In order to make distributions, other than qualified distributions, a certified capital company must have placed an amount cumulatively equal to one hundred percent of its certified capital in qualified investments. Cumulative distributions to equity holders, other than qualified distributions, in excess of the certified capital company's original certified capital and any additional capital contributions to the certified capital company shall be subject to audit by a nationally recognized certified public accounting firm acceptable to the department, at the expense of the certified capital company. The audit shall determine whether aggregate cumulative distributions to all investors and equity holders, other than qualified distributions, when combined with all tax credits utilized by investors pursuant to sections 135.500 to 135.529, have resulted in an annual internal rate of return of fifteen percent computed on the sum of total original certified capital of the certified capital company and any additional capital contributions to the certified capital company. Twenty-five percent of distributions made, other than qualified distributions, in excess of the amount required to produce a fifteen percent annual internal rate of return, as determined by the audit, shall be payable by the certified capital company to the [development reserve fund of the] Missouri development finance board. Distributions or payments to debt holders of a certified capital company, however, may be made without restriction with respect to debt owed to them by a certified capital company. A debt holder that is also an investor or equity holder of a certified capital company may receive distributions or payments with respect to such debt without restriction.

     3. No qualified investment may be made at a cost to a Missouri certified capital company greater than fifteen percent of the total certified capital under management of the Missouri certified capital company at the time of investment.

     4. Documents and other materials submitted by Missouri certified capital companies or by businesses for purposes of the continuance of certification may be deemed "closed records" pursuant to the provisions of section 620.014, RSMo.

     5. Each Missouri certified capital company shall report the following to the department:

     (1) As soon as practicable after the receipt of certified capital, the name of each investor from which the certified capital was received, the amount of each investor's investment of certified capital and tax credits computed without regard to any limitations under subsection 3 of section 135.503, and the date on which the certified capital was received;

     (2) On a quarterly basis, the amount of the Missouri certified capital company's certified capital at the end of the quarter, whether or not the Missouri certified capital company has invested more than fifteen percent of the total certified capital under management in any one company, and all qualified investments that the Missouri certified capital company has made;

     (3) Each Missouri certified capital company shall provide annual audited financial statements to the department which include an opinion of an independent certified public accountant to the department within ninety days of the close of the fiscal year. The audit shall address the methods of operation and conduct of the business of the Missouri certified capital company to determine if the Missouri certified capital company is complying with the statutes and program rules and that the funds received by the Missouri certified capital company have been invested as required within the time limits provided by sections 135.500 to 135.529.

          [143.805. 1. Credits granted by other provisions of the statutes shall be applied against the tax imposed by this chapter in the following order:

          (1) Credit for income tax paid to another state authorized in section 143.081;

          (2) New business facility credit authorized in sections 135.100 to 135.160, RSMo;

          (3) Economic development credit authorized in subsection 6 of section 100.286, RSMo;

          (4) Missouri low-income housing tax credit authorized in subsection 2 of section 135.352, RSMo;

          (5) Employment of unemployed agriculture workers tax credit authorized in sections 135.275 to 135.287, RSMo;

          (6) Wood energy producer tax credit authorized in sections 135.300 to 135.311, RSMo;

          (7) Contributions to innovations centers and the corporation for science and technology tax credit authorized in sections 348.300 to 348.318, RSMo;

          (8) Neighborhood assistance credit authorized in sections 32.105 to 32.125, RSMo;

          (9) Special needs child adoption credit authorized in section 135.327, RSMo;

          (10) Enterprise zone credit authorized in sections 135.200 to 135.255, RSMo;

          (11) Senior citizens property tax credit authorized in sections 135.010 to 135.035, RSMo.

          2. The director of revenue may prescribe the priority of any other credit authorized by law.]

     144.030. 1. There is hereby specifically exempted from the provisions of sections 144.010 to 144.525 and from the computation of the tax levied, assessed or payable pursuant to sections 144.010 to 144.525 such retail sales as may be made in commerce between this state and any other state of the United States, or between this state and any foreign country, and any retail sale which the state of Missouri is prohibited from taxing pursuant to the Constitution or laws of the United States of America, and such retail sales of tangible personal property which the general assembly of the state of Missouri is prohibited from taxing or further taxing by the constitution of this state.

     2. There are also specifically exempted from the provisions of the local sales tax law as defined in section 32.085, RSMo, section 238.235, RSMo, and sections 144.010 to 144.525 and 144.600 to 144.745 and from the computation of the tax levied, assessed or payable pursuant to the local sales tax law as defined in section 32.085, RSMo, section 238.235, RSMo, and sections 144.010 to 144.525 and 144.600 to 144.745:

     (1) Motor fuel or special fuel subject to an excise tax of this state, unless all or part of such excise tax is refunded pursuant to section 142.584, RSMo; or upon the sale at retail of fuel to be consumed in manufacturing or creating gas, power, steam, electrical current or in furnishing water to be sold ultimately at retail; or feed for livestock or poultry which is to be used in the feeding of livestock or poultry to be sold ultimately in processed form or otherwise at retail; or grain to be converted into foodstuffs which are to be sold ultimately in processed form at retail; or seed, limestone or fertilizer which is to be used for seeding, liming or fertilizing crops which when harvested will be sold at retail or will be fed to livestock or poultry to be sold ultimately in processed form at retail; economic poisons registered pursuant to the provisions of the Missouri pesticide registration law (sections 281.220 to 281.310, RSMo) which are to be used in connection with the growth or production of crops, fruit trees or orchards applied before, during, or after planting, the crop of which when harvested will be sold at retail or will be converted into foodstuffs which are to be sold ultimately in processed form at retail;

     (2) Materials, manufactured goods, machinery and parts which when used in manufacturing, processing, compounding, mining, producing or fabricating become a component part or ingredient of the new personal property resulting from such manufacturing, processing, compounding, mining, producing or fabricating and which new personal property is intended to be sold ultimately for final use or consumption; and materials, including without limitation, gases and manufactured goods, including without limitation, slagging materials and firebrick, which are ultimately consumed in the manufacturing process by blending, reacting or interacting with or by becoming, in whole or in part, component parts or ingredients of steel products intended to be sold ultimately for final use or consumption;

     (3) Materials, replacement parts and equipment purchased for use directly upon, and for the repair and maintenance or manufacture of, motor vehicles, watercraft, railroad rolling stock or aircraft engaged as common carriers of persons or property;

     (4) Replacement machinery [and], equipment, and parts and the materials and supplies solely required for the installation or construction of such replacement machinery [and], equipment, [replacing and used for the same purposes or to produce a substantially similar product as the machinery and equipment, which is purchased for] and parts used in directly [for] manufacturing [or], fabricating or producing a product which is intended to be sold ultimately for final use or consumption; and machinery and equipment, and the materials and supplies required solely for the operation, installation or construction of such machinery and equipment, purchased and used to establish new, or to replace or expand existing, material recovery processing plants in this state. For the purposes of this subdivision, a "material recovery processing plant" means a facility which converts recovered materials into a new product, or a different form which is used in producing a new product, and shall include a facility or equipment which is used exclusively for the collection of recovered materials for delivery to a material recovery processing plant but shall not include motor vehicles used on highways. For purposes of this section, the terms "motor vehicle" and "highway" shall have the same meaning pursuant to section 301.010, RSMo;

     (5) Machinery [and], equipment, and parts and the materials and supplies solely required for the installation or construction of such machinery and equipment, purchased and used to establish new or to expand existing manufacturing, mining or fabricating plants in the state if such machinery and equipment is used directly in manufacturing, mining or fabricating a product which is intended to be sold ultimately for final use or consumption;

     (6) Tangible personal property which is used exclusively in the manufacturing, processing, modification or assembling of products sold to the United States government or to any agency of the United States government;

     (7) Animals or poultry used for breeding or feeding purposes;

     (8) Newsprint used in newspapers published for dissemination of news to the general public;

     (9) The rentals of films, records or any type of sound or picture transcriptions for public commercial display;

     (10) Pumping machinery and equipment used to propel products delivered by pipelines engaged as common carriers;

     (11) Railroad rolling stock for use in transporting persons or property in interstate commerce and motor vehicles licensed for a gross weight of twenty-four thousand pounds or more or trailers used by common carriers, as defined in section 390.020, RSMo, solely in the transportation of persons or property in interstate commerce;

     (12) Electrical energy used in the actual primary manufacture, processing, compounding, mining or producing of a product, or electrical energy used in the actual secondary processing or fabricating of the product, in facilities owned or leased by the taxpayer, if the total cost of electrical energy so used exceeds ten percent of the total cost of production, either primary or secondary, exclusive of the cost of electrical energy so used. For purposes of this subdivision, "processing" means any mode of treatment, act or series of acts performed upon materials to transform and reduce them to a different state or thing, including treatment necessary to maintain or preserve such processing by the producer at the production facility;

     (13) Anodes which are used or consumed in manufacturing, processing, compounding, mining, producing or fabricating and which have a useful life of less than one year;

     (14) Machinery, equipment, appliances and devices purchased or leased and used solely for the purpose of preventing, abating or monitoring air pollution, and materials and supplies solely required for the installation, construction or reconstruction of such machinery, equipment, appliances and devices, and so certified as such by the director of the department of natural resources, except that any action by the director pursuant to this subdivision may be appealed to the air conservation commission which may uphold or reverse such action;

     (15) Machinery, equipment, appliances and devices purchased or leased and used solely for the purpose of preventing, abating or monitoring water pollution, and materials and supplies solely required for the installation, construction or reconstruction of such machinery, equipment, appliances and devices, and so certified as such by the director of the department of natural resources, except that any action by the director pursuant to this subdivision may be appealed to the Missouri clean water commission which may uphold or reverse such action;

     (16) Tangible personal property purchased by a rural water district;

     (17) All amounts paid or charged for admission or participation or other fees paid by or other charges to individuals in or for any place of amusement, entertainment or recreation, games or athletic events, including museums, fairs, zoos and planetariums, owned or operated by a municipality or other political subdivision where all the proceeds derived therefrom benefit the municipality or other political subdivision and do not inure to any private person, firm, or corporation;

     (18) All sales of insulin and prosthetic or orthopedic devices as defined on January 1, 1980, by the federal medicare program pursuant to Title XVIII of the Social Security Act of 1965, including the items specified in section 1862(a)(12) of that act, and also specifically including hearing aids and hearing aid supplies and all sales of drugs which may be legally dispensed by a licensed pharmacist only upon a lawful prescription of a practitioner licensed to administer those items, including samples and materials used to manufacture samples which may be dispensed by a practitioner authorized to dispense such samples;

     (19) All sales made by or to religious and charitable organizations and institutions in their religious, charitable or educational functions and activities and all sales made by or to all elementary and secondary schools operated at public expense in their educational functions and activities;

     (20) All sales of aircraft to common carriers for storage or for use in interstate commerce and all sales made by or to not for profit civic, social, service or fraternal organizations, including fraternal organizations which have been declared tax exempt organizations pursuant to section 501(c)(8) or (10) of the 1986 Internal Revenue Code, as amended, solely in their civic or charitable functions and activities and all sales made to eleemosynary and penal institutions and industries of the state, and all sales made to any private not for profit institution of higher education not otherwise excluded pursuant to subdivision (19) of this subsection or any institution of higher education supported by public funds, and all sales made to a state relief agency in the exercise of relief functions and activities;

     (21) All ticket sales made by benevolent, scientific and educational associations which are formed to foster, encourage, and promote progress and improvement in the science of agriculture and in the raising and breeding of animals, and by nonprofit summer theater organizations if such organizations are exempt from federal tax pursuant to the provisions of the Internal Revenue Code and all admission charges and entry fees to the Missouri state fair or any fair conducted by a county agricultural and mechanical society organized and operated pursuant to sections 262.290 to 262.530, RSMo;

     (22) All sales made to any private not for profit elementary or secondary school, all sales of feed additives, medications or vaccines administered to livestock or poultry in the production of food or fiber, all sales of pesticides used in the production of crops, livestock or poultry for food or fiber, all sales of bedding used in the production of livestock or poultry for food or fiber, all sales of propane or natural gas, electricity or diesel fuel used exclusively for drying agricultural crops, and all sales of farm machinery, other than airplanes, motor vehicles and trailers. As used in this subdivision, the term "feed additives" means tangible personal property which, when mixed with feed for livestock or poultry, is to be used in the feeding of livestock or poultry. As used in this subdivision, the term "farm machinery" means new or used farm tractors and such other new or used farm machinery and equipment and repair or replacement parts thereon and one-half of each purchaser's purchase of diesel fuel therefor which is:

     (a) Used exclusively for agricultural purposes;

     (b) Used on land owned or leased for the purpose of producing farm products; and

     (c) Used directly in producing farm products to be sold ultimately in processed form or otherwise at retail or in producing farm products to be fed to livestock or poultry to be sold ultimately in processed form at retail;

     (23) Except as otherwise provided in section 144.032, all sales of metered water service, electricity, electrical current, natural, artificial or propane gas, wood, coal or home heating oil for domestic use and in any city not within a county, all sales of metered or unmetered water service for domestic use;

     (a) "Domestic use" means that portion of metered water service, electricity, electrical current, natural, artificial or propane gas, wood, coal or home heating oil, and in any city not within a county, metered or unmetered water service, which an individual occupant of a residential premises uses for nonbusiness, noncommercial or nonindustrial purposes. Utility service through a single or master meter for residential apartments or condominiums, including service for common areas and facilities and vacant units, shall be deemed to be for domestic use. Each seller shall establish and maintain a system whereby individual purchases are determined as exempt or nonexempt;

     (b) Regulated utility sellers shall determine whether individual purchases are exempt or nonexempt based upon the seller's utility service rate classifications as contained in tariffs on file with and approved by the Missouri public service commission. Sales and purchases made pursuant to the rate classification "residential" and sales to and purchases made by or on behalf of the occupants of residential apartments or condominiums through a single or master meter, including service for common areas and facilities and vacant units, shall be considered as sales made for domestic use and such sales shall be exempt from sales tax. Sellers shall charge sales tax upon the entire amount of purchases classified as nondomestic use. The seller's utility service rate classification and the provision of service thereunder shall be conclusive as to whether or not the utility must charge sales tax;

     (c) Each person making domestic use purchases of services or property and who uses any portion of the services or property so purchased for a nondomestic use shall, by the fifteenth day of the fourth month following the year of purchase, and without assessment, notice or demand, file a return and pay sales tax on that portion of nondomestic purchases. Each person making nondomestic purchases of services or property and who uses any portion of the services or property so purchased for domestic use, and each person making domestic purchases on behalf of occupants of residential apartments or condominiums through a single or master meter, including service for common areas and facilities and vacant units, under a nonresidential utility service rate classification may, between the first day of the first month and the fifteenth day of the fourth month following the year of purchase, apply for credit or refund to the director of revenue and the director shall give credit or make refund for taxes paid on the domestic use portion of the purchase. The person making such purchases on behalf of occupants of residential apartments or condominiums shall have standing to apply to the director of revenue for such credit or refund;

     (24) All sales of handicraft items made by the seller or the seller's spouse if the seller or the seller's spouse is at least sixty-five years of age, and if the total gross proceeds from such sales do not constitute a majority of the annual gross income of the seller;

     (25) Excise taxes, collected on sales at retail, imposed by sections 4041, 4061, 4071, 4081, 4091, 4161, 4181, 4251, 4261 and 4271 of Title 26, United States Code. The director of revenue shall promulgate rules pursuant to chapter 536, RSMo, to eliminate all state and local sales taxes on such excise taxes;

     (26) Sales of fuel consumed or used in the operation of ships, barges, or waterborne vessels which are used primarily in or for the transportation of property or cargo, or the conveyance of persons for hire, on navigable rivers bordering on or located in part in this state, if such fuel is delivered by the seller to the purchaser's barge, ship, or waterborne vessel while it is afloat upon such river;

     (27) All sales made to an interstate compact agency created pursuant to sections 70.370 to 70.440, RSMo, or sections 238.010 to 238.100, RSMo, in the exercise of the functions and activities of such agency as provided pursuant to the compact;

     (28) Computers, computer software and computer security systems purchased for use by architectural or engineering firms headquartered in this state. For the purposes of this subdivision, "headquartered in this state" means the office for the administrative management of at least four integrated facilities operated by the taxpayer is located in the state of Missouri;

     (29) All livestock sales when either the seller is engaged in the growing, producing or feeding of such livestock, or the seller is engaged in the business of buying and selling, bartering or leasing of such livestock;

     (30) All sales of barges which are to be used primarily in the transportation of property or cargo on interstate waterways.

     148.064. 1. Notwithstanding any law to the contrary, this section shall determine the ordering and limit reductions for certain taxes and tax credits which may be used as credits against various taxes paid or payable by banking institutions. Except as adjusted in subsections 2 and 3, such credits shall be applied in the following order until used against:

     (1) The tax on banks determined under subdivision (2) of subsection 2 of section 148.030;

     (2) The tax on banks determined under subdivision (1) of subsection 2 of section 148.030;

     (3) The state income tax in section 143.071, RSMo.

     2. The tax credits permitted against taxes payable pursuant to subdivision (2) of subsection 2 of section 148.030 shall be utilized first and include taxes referenced in subdivisions (2) and (3) of subsection 1 of this section, which shall be determined without reduction for any tax credits identified in subsection 5 of this section which are used to reduce such taxes. Where a banking institution subject to this section joins in the filing of a consolidated state income tax return under chapter 143, RSMo, the credit allowed under this section for state income taxes payable under chapter 143, RSMo, shall be determined based upon the consolidated state income tax liability of the group and allocated to a banking institution, without reduction for any tax credits identified in subsection 5 of this section which are used to reduce such consolidated taxes as provided in chapter 143, RSMo.

     3. The taxes referenced in subdivisions (2) and (3) of subsection 1 of this section may be reduced by the tax credits in subsection 5 of this section without regard to any adjustments in subsection 2 of this section.

     4. To the extent that certain tax credits which the taxpayer is entitled to claim are transferable, such transferability may include transfers among such taxpayers who are members of a single consolidated income tax return, and this subsection shall not impact other tax credit transferability.

     5. For the purpose of this section, the tax credits referred to in subsections 2 and 3 shall include tax credits available for economic development, low-income housing and neighborhood assistance which the taxpayer is entitled to claim for the year, including by way of example and not of limitation, tax credits pursuant to the following sections: section 32.115, RSMo, section 100.286, RSMo, and sections 135.110, 135.225, 135.352, [and] 135.403, and 135.500 to 135.529, RSMo.

     178.895. 1. To provide funds for the present payment of the costs of new jobs training programs, a community college district may borrow money and issue and sell certificates payable from a sufficient portion of the future receipts of payments authorized by the agreement including disbursements from the Missouri community college job training program to the special fund established by the district for each project. The total amount of outstanding certificates sold by all junior college districts shall not exceed twenty million dollars, unless an increased amount is authorized in writing by a majority of members of the Missouri job training joint legislative oversight committee. The certificates shall be marketed through financial institutions authorized to do business in Missouri. The receipts shall be pledged to the payment of principal of and interest on the certificates. Certificates may be sold at public sale or at private sale at par, premium, or discount of not less than ninety-five percent of the par value thereof, at the discretion of the board of trustees, and may bear interest at such rate or rates as the board of trustees shall determine, notwithstanding the provisions of section 108.170, RSMo, to the contrary. However, chapter 176, RSMo, does not apply to the issuance of these certificates. Certificates may be issued with respect to a single project or multiple projects and may contain terms or conditions as the board of trustees may provide by resolution authorizing the issuance of the certificates.

     2. Certificates issued to refund other certificates may be sold at public sale or at private sale as provided in this section with the proceeds from the sale to be used for the payment of the certificates being refunded. The refunding certificates may be exchanged in payment and discharge of the certificates being refunded, in installments at different times or an entire issue or series at one time. Refunding certificates may be sold or exchanged at any time on, before, or after the maturity of the outstanding certificates to be refunded. They may be issued for the purpose of refunding a like, greater, or lesser principal amount of certificates and may bear a higher, lower, or equivalent rate of interest than the certificates being renewed or refunded.

     3. Before certificates are issued, the board of trustees shall publish once a notice of its intention to issue the certificates, stating the amount, the purpose, and the project or projects for which the certificates are to be issued. A person may, within fifteen days after the publication of the notice, by action in the circuit court of a county in the district, appeal the decision of the board of trustees to issue the certificates. The action of the board of trustees in determining to issue the certificates is final and conclusive unless the circuit court finds that the board of trustees has exceeded its legal authority. An action shall not be brought which questions the legality of the certificates, the power of the board of trustees to issue the certificates, the effectiveness of any proceedings relating to the authorization of the project, or the authorization and issuance of the certificates from and after fifteen days from the publication of the notice of intention to issue.

     4. The board of trustees shall determine if revenues provided in the agreement are sufficient to secure the faithful performance of obligations in the agreement.

     5. Certificates issued under this section shall not be deemed to be an indebtedness of the state or the community college district or of any other political subdivision of the state and the principal and interest on such certificates shall be payable only from the sources provided in subdivision (1) of section 178.893 which are pledged in the agreement.

     6. The department of economic development shall coordinate the new jobs training program, and may promulgate rules that districts will use in developing projects with new and expanding industrial new jobs training proposals which shall include rules providing for the coordination of such proposals with the service delivery areas established in the state to administer federal funds pursuant to the federal Job Training Partnership Act. No rule or portion of a rule promulgated under the authority of sections 178.892 to 178.896 shall become effective unless it has been promulgated pursuant to the provisions of section 536.024, RSMo.

     7. No community college district may sell certificates as described in this section after July 1, [1998] 2008.

     178.896. 1. There is hereby established within the state treasury a special fund, to be known as the "Missouri Community College Job Training Program Fund", to be administered by the division of job development and training. The department of revenue shall credit to the community college job training program fund, as received, all new jobs credit from withholding remitted by employers pursuant to section 178.894. The fund shall also consist of any gifts, contributions, grants or bequests received from federal, private or other sources. The general assembly, however, shall not provide for any transfer of general revenue funds into the community college job training program fund. Moneys in the Missouri community college job training program fund shall be disbursed to the division of job development and training pursuant to regular appropriations by the general assembly. The division shall disburse such appropriated funds in a timely manner into the special funds established by community college districts for projects, which funds shall be used to pay program costs, including the principal of, premium, if any, and interest on certificates issued by the district to finance or refinance, in whole or in part, a project. Such disbursements by the division of job development and training shall be made to the special fund for each project in the same proportion as the new jobs credit from withholding remitted by the employer participating in such project bears to the total new jobs credit from withholding remitted by all employers participating in projects during the period for which the disbursement is made. Moneys for new jobs training programs established under the provisions of sections 178.892 to 178.896 shall be obtained from appropriations made by the general assembly from the Missouri community college job training program fund. All moneys remaining in the Missouri community college job training program fund at the end of any fiscal year shall not lapse to the general revenue fund, as provided in section 33.080, RSMo, but shall remain in the Missouri community college job training program fund.

     2. The department of revenue shall develop such forms as are necessary to demonstrate accurately each employer's new jobs credit from withholding paid into the Missouri community college job training program fund. The new jobs credit from withholding shall be accounted as separate from the normal withholding tax paid to the department of revenue by the employer. Reimbursements made by all employers to the Missouri community college job training program fund shall be no less than all allocations made by the division of job development and training to all community college districts for all projects. The employer shall remit the amount of the new job credit to the department of revenue in the same manner as provided in sections 143.191 to 143.265, RSMo.

     3. Sections 178.892 to 178.896 shall expire July 1, [2008] 2018.

     447.710. 1. There is hereby created in the state treasury a revolving fund to be known as the "Property Reuse Revolving Fund". The property reuse revolving fund is intended to provide ten million dollars annually in uncommitted funds for direct loans, loan guarantees and grants. The revolving fund shall consist of all moneys which may be appropriated to it by the general assembly [and also] any gifts, contributions, grants or bequests received from federal, private or other sources, and moneys from the repayment of any loans or loan guarantees. Notwithstanding the provisions of section 33.080, RSMo, no portion of the revolving fund shall be transferred to the general revenue fund at the end of any biennium.

     2. At least annually, the state treasurer shall certify the amount deposited in the fund to the departments of economic development, natural resources and revenue.

     3. Any portion of the property reuse revolving fund not immediately needed for the purposes authorized shall be invested by the state treasurer as provided by the constitution and laws of this state. All income from such investments shall be credited to the property reuse revolving fund.

     620.030. The department of economic development shall have the authority to contract directly with the Missouri technology corporation, as established in section 348.251, RSMo, innovation centers, as established in section 348.271, RSMo, small business development centers, as established in sections 620.1000 to 620.1007, centers for advanced technology, as established in section 348.272, RSMo, and other entities or organizations for the provision of technology application, technology commercialization and technology development services. Such contracting procedures shall not be subject to the provisions of chapter 34, RSMo.

     620.1072. 1. The "Microenterprise Revolving Loan Fund" is hereby created in the state treasury. The fund shall consist of all moneys appropriated to it by the general assembly, [and] all gifts, grants and bequests from federal, private or any other source, and all repayment of moneys from eligible lenders, for the purpose of assisting new or expanding microenterprises. Notwithstanding the provisions of section 33.080, RSMo, no portion of the fund shall be transferred to the general revenue fund at the end of any biennium.

     2. Diligent efforts to assure that at least thirty percent of the moneys in the fund shall be available to, and reserved for, female-owned microenterprises.

     620.1078. The department of economic development shall distribute moneys to eligible lenders from the microenterprise revolving loan fund within the limits of appropriations made by the general assembly. The eligible lenders shall charge the market rate of interest for loans made pursuant to sections 620.1069 to 620.1081. No loan shall be made pursuant to sections 620.1069 to 620.1081 for the refinancing of existing debt. Loans may only be made by eligible lenders in [one of the following two] any of the following categories:

     (1) Group-based loans shall be available to microenterprises in need of loans between five hundred dollars and seven thousand five hundred dollars, as follows:

     (a) A group-based loan program shall be approved by the eligible lending institution. A group shall consist of between five and seven eligible members who shall meet biweekly to make credit decisions, help one another in the solution of business problems, and receive loan repayments. The initial loan made by the group to the first eligible borrower shall not exceed two thousand five hundred dollars;

     (b) Persons interested in participating in the group-based loan program shall petition the eligible lender for its approval to be placed within a group. Any loan which is approved must begin to be repaid within two weeks and continue to be repaid biweekly. After four biweekly payments, the group may select one or two other members to receive initial loans which may be in excess of two thousand five hundred dollars. The process for granting group-based loans pursuant to this subdivision shall continue until each member of the group has been considered for an initial loan. All repayments of such loans shall be placed into a revolving loan fund established by the eligible lender. All such loans shall be subject to examination by the state auditor;

     (2) Institution-based loans shall be available to microenterprises directly from eligible lenders in amounts of between seven thousand five hundred dollars and fifteen thousand dollars. Such loans shall be made by eligible lenders who possess significant experience in providing business assistance. Repayment of such loans shall be placed in a revolving loan fund established by the eligible lender as provided in subdivision (1) of this section for group-based loans. Institution-based loan applications shall be reviewed by a credit committee which shall judge the merits of the proposed loan according to the local economy, the borrower's character, and the credit risk of the proposed loan. Institution-based loans shall be subject to examination by the state auditor the same as group-based loans;

     (3) Challenge loans shall be made available to eligible lenders. Such loans shall be made to groups which demonstrate new or innovative approaches to microenterprise development, as determined by the oversight committee established pursuant to section 620.1069. All such loans shall satisfy the requirements of section 620.1075. Loans shall be made available from a group to microenterprises in amounts of between five hundred dollars and seven thousand five hundred dollars. Repayment of such loans shall be placed in a revolving fund established by the lender similar to that as provided for in subdivision (1) of this section.

     Section 1. 1. Sections 1 to 18 are known and may be cited as the "Community Improvement District Act".

     2. The following words and terms, as used in sections 1 to 18, mean:

     (1) "Act", sections 1 to 18;

     (2) "Approval" or "Approve", for purposes of elections under sections 1 to 18, a simple majority of those qualified voters voting in the election;

     (3) "Assessed value", the value of real property as reflected on the rolls of the county in which the property is located as of the last completed assessment;

     (4) "Blighted area", an area which:

     (a) By reason of the predominance of defective or inadequate street layout, insanitary or unsafe conditions, deterioration of site improvements, improper subdivision or obsolete platting, or the existence of conditions which endanger life or property by fire and other causes, or any combination of such factors, retards the provision of housing accommodations or constitutes an economic or social liability or a menace to the public health, safety, morals, or welfare in its present condition and use; or

     (b) Has been declared blighted or found to be a blighted area pursuant to the Revised Statutes of Missouri, including but not limited to chapter 353, RSMo, the Real Property Tax Increment Allocation Redevelopment Act, sections 99.800 to 99.865, RSMo, or the Land Clearance for Redevelopment Authority Law, sections 99.300 to 99.715, RSMo;

     (5) "Board", if the district is a political subdivision the board of directors of the district, or if the district is a not-for-profit corporation the board of directors of such corporation;

     (6) "City", the municipality in which the district is located whether it be a city, town, or village;

     (7) "Director of revenue", the director of revenue of the state of Missouri;

     (8) "District", a community improvement district;

     (9) "Election Authority", the election authority having jurisdiction over the area in which the boundaries of the district are located pursuant to chapter 115, RSMo;

     (10) "Obligations", bonds, loans, debentures, notes, special certificates, or other evidences of indebtedness issued by a district to carry out any of its powers, duties or purposes or to refund outstanding obligations;

     (11) "Owner", for real property, the individual or individuals or entity or entities who own the fee of real property or their legally authorized representative; for business organizations and other entities, the owner shall be deemed to be the individual which is legally authorized to represent the entity in regard to the district;

     (12) "Per capita", shall mean that one head count shall be applied to each individual, entity or group of individuals and/or entities having fee ownership of real property within the district whether such individual, entity or group owns one or more parcels of real property in the district as joint tenants, tenants in common, tenants by the entirety or tenants in partnership;

     (13) "Petition", shall mean a petition to establish a district as it may be amended in accordance with the requirements of section 3;

     (14) "Qualified voters", for purposes of elections for approval of real property taxes, sales taxes or business license taxes, (a) registered voters; or (b) if no registered voters reside in the district, the owners of real property per capita located within the district per the county tax rolls for real property as of the thirtieth day prior to the date of the applicable election; and for purposes of the election of directors of the board, registered voters and owners of real property within the district per the county tax rolls for real property as of the thirtieth day prior to the date of the applicable election; and

     (15) "Registered voters", persons who reside within the district and who are qualified and register to vote pursuant to chapter 115, RSMo, pursuant to the records of the election authority as of the thirtieth day prior to the date of the applicable election.

     Section 2. 1. The governing body of any city may establish one or more districts within its boundaries in the manner provided in sections 1 to 18.

     2. The boundaries of the district must be contiguous.

     3. Each district shall be either a political subdivision of the state or a not-for-profit corporation organized pursuant to chapter 355, RSMo.

     4. If a proposed district is to be a not-for-profit corporation, such corporation must be organized and in good standing under the provisions of chapter 355, RSMo, at the time the petition for the proposed district is filed with the city clerk.

     5. The name of the district shall include "community improvement district" and if it is a not-for-profit corporation, it shall be the same as the name of the not-for-profit corporation.

     Section 3. 1. Upon receipt of a proper petition filed with its city clerk, the governing body of the city in which the proposed district is located shall hold a public hearing in accordance with section 4 and may adopt an ordinance to establish the proposed district.

     2. A petition is proper if, based on the tax rolls of the county clerk as of the time of filing the petition with the city clerk, it meets the following requirements:

     (1) It has been signed by owners collectively owning more than fifty percent by assessed value of real property within the boundaries of the proposed district;

     (2) It has been signed by more than fifty percent per capita of all owners of real property within the boundaries of the proposed district; and

     (3) It contains the following information:

     (a) The legal description of the proposed district, including a map illustrating the district boundaries;

     (b) The name of the proposed district;

     (c) A notice that the signatures of the signers may not be withdrawn later than seven days after the petition is filed with the city clerk;

     (d) A five year plan stating a description of the purposes of the proposed district, the services it will provide, the improvements it will make and an estimate of costs of these services and improvements to be incurred;

     (e) A statement as to whether the district will be a political subdivision or a not-for-profit corporation and if it is to be a not-for-profit corporation, the name of the not-for-profit corporation;

     (f) If the district is to be a political subdivision, a statement as to whether the district will be governed by a board elected by the district or whether the board will be appointed by the city, and, if the board is to be elected by the district, the names and terms of the initial board may be stated;

     (g) If the district is to be a political subdivision, the number of directors to serve on the board;

     (h) The total assessed value of all real property within the proposed district;

     (i) A statement as to whether the petitioners are seeking a determination that the proposed district, or any legally described portion thereof, is a blighted area;

     (j) The proposed length of time for the existence of the district;

     (k) The maximum rates of sales taxes, business license, and real property taxes that may be submitted to the qualified voters for approval;

     (l) The maximum rates of special assessments and respective methods of assessment that may be proposed by petition;

     (m) The limitations, if any, on the borrowing capacity of the district;

     (n) The limitations, if any, on the revenue generation of the district;

     (o) Other limitations, if any, on the powers of the district;

     (p) A request that the district be established; and

     (q) Any other items the petitioners deem appropriate; and

     (4) The signature block for each real property owner signing the petition must be in substantially the following form and contain the following information:

Name of owner:

Owner's telephone number and mailing address:

If signer is different from owner: ...........................................................

Name of signer:

State basis of legal authority to sign:

Signer's telephone number and mailing address: ..................................

If owner is an individual, state if owner is single or married:

..................................................................................................................

If owner is not an individual, state what type of entity:

..................................................................................................................

Map and parcel number and assessed value of each tract of real property within the proposed district owned:

... ................................................................................................................

By executing this Petition, the undersigned represents and warrants that he or she is legally authorized to execute this Petition on behalf of the property owner named immediately above.

..............................................                    ...............................

Signature                                    Date

STATE OF MISSOURI     )

                    ) ss.

COUNTY OF ....................)

     Before me personally appeared ............................., to me personally known to be the individual described in and who executed the foregoing instrument.

     WITNESS my hand and official seal this ............ day of ....................................

                                   .........................................

                                   Notary Public

My Commission Expires:

........................................

     3. Upon receipt of a petition, the city clerk shall, within a reasonable time not to exceed ninety days after receipt of the petition, review and determine whether the petition substantially complies with the requirements of subsection 2 of this section. In the event the city clerk receives a petition which does not meet the requirements of subsection 2 of this section, the city clerk shall, within a reasonable time, return the petition to the submitting party by hand delivery, first class mail, postage prepaid, or other efficient means of return and shall specify which requirements have not been met.

     4. After the close of the public hearing required under subsection 1 of this section, the city may adopt an ordinance approving the petition and establishing the district as set forth in the petition subject to the authorities and limitations contained in the petition and may determine, if requested in the petition, whether the district, or any legally described portion thereof, constitutes a blighted area.

     5. Amendments to a petition may be made which do not change the proposed boundaries of the proposed district if an amended petition meeting the requirements of subsection 2 is filed with the city clerk at the following times and the following requirements have been met:

     (1) At any time prior to the close of the public hearing required under subsection 1 of this section, and notice of the contents of the amended petition is given at the public hearing;

     (2) At any time after the public hearing and prior to the adoption of an ordinance establishing the proposed district, and notice of the amendments to the petition is given by publishing the notice in a newspaper of general circulation within the city and by sending the notice via registered certified United States mail with a return receipt attached to the address of record of each owner of record of real property within the boundaries of the proposed district. Such notice shall be published and mailed not less than ten days prior to the adoption of the ordinance establishing the district;

     (3) At any time after the adoption of any ordinance establishing the district a public hearing on the amended petition is held and notice of the public hearing is given in the manner provided in section 4 and the governing body of the city in which the district is located adopts an ordinance approving the amended petition after the public hearing is held.

     6. Upon the creation of a district, the city clerk shall report in writing the creation of such district to the Missouri department of economic development.

     Section 4. 1. Within a reasonable time, not to exceed 45 days, after the receipt of the verified petition from the city clerk, the governing body shall hold or cause to be held a public hearing on the establishment of the proposed district and shall give notice of the public hearing in the manner provided in subsection 3 of this section. All reasonable protests, objections and endorsements shall be heard at the public hearing.

     2. The public hearing may be continued to another date without further notice other than a motion to be entered on the minutes fixing the date, time and place of the continuance of the public hearing.

     3. Notice of the public hearing shall be given by publication and mailing. Notice by publication shall be given by publication in a newspaper of general circulation within the city once a week for two consecutive weeks prior to the week of the public hearing. Notice by mail shall be given not less than 15 days prior to the public hearing by sending the notice via registered or certified United States mail with a return receipt attached to the address of record of each owner of record of real property within the boundaries of the proposed district. The published and mailed notices shall include the following information:

     (1) The date, time and place of the public hearing;

     (2) A statement that a petition for the establishment of a district has been filed with the city clerk;

     (3) The boundaries of the proposed district by street location, or other readily identifiable means if no street location exists; and a map illustrating the proposed boundaries;

     (4) A statement that a copy of the petition is available for review at the office of the city clerk during regular business hours; and

     (5) A statement that all interested persons will be given an opportunity to be heard at the public hearing.

     Section 5. 1. Upon the written request of any real property owner within the district, the governing body of the city may hold a public hearing for the removal of real property from a district and such real property may be removed from such district by city ordinance provided that:

     (1) The board consents to the removal of such property;

     (2) The district can meet its obligations without the revenues generated by or on the real property proposed to be removed; and

     (3) The public hearing is conducted in the same manner as required by section 4 with notice of the hearing given in the same manner as required by section 4 and such notice shall include:

     (a) The date, time and place of the public hearing;

     (b) The name of the district;

     (c) The boundaries by street location, or other readily identifiable means if no street location exists of the real property proposed to be removed from the district, and a map illustrating the boundaries of the existing district and the real property proposed to be removed; and

     (d) A statement that all interested persons will be given an opportunity to be heard at the public hearing.

     2. With the consent of the board, real property may be added to the district by city ordinance upon receipt of a proper petition and after a public hearing is held by the governing body of the city on the addition of the real property in the manner provided in section 4. Notice of the public hearing shall be given by publication and mailed to the owners of real property within the boundaries of the district and the area proposed to be added in the manner provided in section 4. The notice shall include the following information:

     (1) The time, date and place of the public hearing;

     (2) The name of the proposed or established district;

     (3) The boundaries by street location, or other readily identifiable means if no street location exists, of the real property to be added to the district, and a map showing the boundaries of the existing district and the real property proposed to be added to the district;

     (4) A statement that a copy of the petition is available for review during regular business hours at the office of the city clerk; and

     (5) A statement that all interested persons shall be given an opportunity to be heard at the public hearing.

For the purposes of this section, a proper petition is one which meets the requirements of section 3, which requirements shall only apply as to the real property proposed to be added.

     3. A public hearing may be held to amend the petition and notice of such amendments given simultaneously with a public hearing to alter the district boundaries.

     Section 6. 1. If a district is a political subdivision, the election and qualification of members to the district's board of directors shall be in accordance with this section. If a district is a not-for-profit corporation, the election and qualification of members to its board of directors shall be in accordance with chapter 355, RSMo.

     2. The district shall be governed by a board consisting of at least five but not more than thirty directors. Each director shall, during his/her entire term, be:

     (1) At least eighteen years of age;

     (2) Either be:

     (a) An owner, as defined herein, of real property or of a business operating within the district; or

     (b) A registered voter residing within the district; and

     (3) Any other qualifications set forth in the petition establishing the district.

     3. If the district is a political subdivision, the board shall be elected or appointed, as provided in the petition.

     4. If the board is to be elected, the procedure for election shall be as follows:

     (1) The city clerk shall specify a date on which the election shall occur which date shall be a Tuesday and shall not be earlier than the tenth Tuesday, and shall not be later than the fifteen Tuesday, after the effective date of the ordinance adopted to establish the district.

     (2) The election shall be conducted in the same manner as provided for in section 18, provided that the published notice of the election shall contain the information required by section 18 for published notices, except that it shall state that the purpose of the election is for the election of directors, in lieu of the information related to taxes.

     (3) Candidates shall pay the sum of five dollars as a filing fee and shall file not later than the second Tuesday after the effective date of the ordinance establishing the district with the city clerk of the county in which the district is located a statement under oath that she/he possesses all of the qualifications set out in this section for a director. Thereafter, such candidate shall have his/her name placed on the ballot as a candidate for director.

     (4) The director or directors to be elected shall be elected at large. The person receiving the most votes shall be elected to the position having the longest term; the person receiving the second highest votes shall be elected to the position having the next longest term, and so forth. Of the initial directors, one-half shall serve for a two-year term, one-half shall serve for a four year term and if an odd number of directors are elected, the director receiving the least number of votes shall serve for a two-year term, until such director's successor is elected.

     (5) Successor directors shall be elected in the same manner as the initial directors. The date of the election of successor directors shall be specified by the city clerk which date shall be a Tuesday and shall not be later than the date of the expiration of the stated term of the expiring director. Each successor director shall serve a four-year term until such director's successor is elected. In the event of a vacancy on the board of directors, the remaining directors shall elect an interim director to fill the vacancy for the unexpired term.

     5. If the petition provides that the board is to be appointed by the city, such appointments shall be made by the chief elected officer of the city with the consent of the governing body of the city. Of the initial appointed directors, one-half of the directors shall be appointed to serve for a two-year term and the remaining one-half shall be appointed to serve for a four-year term until such director's successor is appointed; provided, however, if there is an odd number of directors, the last person appointed shall serve a two-year term. Successor directors shall be appointed in the same manner as the initial directors and shall serve for a term of four years.

     6. If the petition states the names of the initial directors, those directors shall serve for the terms specified in the petition and successor directors shall be determined either by the above listed election process or appointment process as provided in the petition.

     7. Any director may be removed for cause by a two-thirds affirmative vote of the directors of the board. Written notice of the proposed removal shall be given to all directors prior to action thereon.

     8. The board is authorized to act on behalf of the district, subject to approval of qualified voters as required herein; however all official acts of the board shall be by written resolution approved by the board.

     Section 7. 1. Each district shall have all the powers necessary to carry out and effectuate the purposes and provisions of sections 1 to 18 including, without limitation, the following powers:

     (1) To adopt, amend and repeal bylaws, not inconsistent with sections 1 to 18, necessary or convenient to carry out the provisions of sections 1 to 18;

     (2) To sue and be sued;

     (3) To make and enter into contracts and other instruments, with public and private entities, necessary or convenient to exercise its powers and carry out its duties under sections 1 to 18;

     (4) If the district is a political subdivision, to delegate any of its powers, duties or functions to other political subdivisions or public agencies;

     (5) To accept grants, guarantees, and donations of property, labor, services or other things of value from any public or private source;

     (6) To employ or contract for such managerial, engineering, legal, technical, clerical, accounting, or other assistance as it deems advisable;

     (7) To acquire by purchase, lease, gift, grant, bequest, devise, or otherwise, any real property within its boundaries, personal property, or any interest in such property;

     (8) To sell, lease, exchange, transfer, assign, mortgage, pledge, hypothecate or otherwise encumber or dispose of any real or personal property or any interest in such property;

     (9) To levy and collect special assessments as provided in sections 1 to 18;

     (10) If the district is a political subdivision, to levy real property taxes and impose sales taxes as provided in sections 1 to 18;

     (11) To fix, charge and collect fees, rents and other charges for use of any of its real or personal property or any interest in such property;

     (12) To borrow money from any public or private source and issue obligations and provide security for the repayment of the same as provided in sections 1 to 18;

     (13) To loan money as provided in sections 1 to 18;

     (14) To make expenditures, create reserve funds and use its revenues as necessary to carry out its powers or duties and the provisions and purposes of sections 1 to 18;

     (15) To enter into one or more agreements with the city for the purpose of abating any public nuisance within the boundaries of the district including, but not limited to, the stabilization, repair or maintenance or demolition and removal of buildings or structures, provided that the city has declared the existence of a public nuisance;

     (16) Within its boundaries, to provide assistance to or to construct, reconstruct, install, repair, maintain, and equip any of the following public improvements:

     (a) Pedestrian or shopping malls and plazas;

     (b) Parks, lawns, trees and any other landscape;

     (c) Convention centers, arenas, aquariums, aviaries, and meeting facilities;

     (d) Sidewalks, streets, alleys, bridges, ramps, tunnels, overpasses and underpasses, traffic signs and signals, utilities, drainage, water, storm and sewer systems and other site improvements;

     (e) Parking lots, garages or other facilities;

     (f) Lakes, dams and waterways;

     (g) Streetscape, lighting, benches or other seating furniture, trash receptacles, marquees, awnings, canopies, walls, and barriers;

     (h) Telephone and information booths, bus stop and other shelters, rest rooms, and kiosks;

     (i) Paintings, murals, display cases, sculptures, and fountains;

     (j) Music, news and child-care facilities; and

     (k) Any other useful, necessary or desired improvement;

     (17) To dedicate to the city, with the city's consent, streets, sidewalks, parks and other real property and improvements located within its boundaries for public use;

     (18) Within its boundaries and with the city's consent, to prohibit or restrict vehicular and pedestrian traffic and vendors on streets, alleys, malls, bridges, ramps, sidewalks and tunnels and to provide the means for access by emergency vehicles to or in such areas;

     (19) Within its boundaries, to operate or to contract for the provision of music, news, child-care or parking facilities, and buses, minibuses or other modes of transportation;

     (20) Within its boundaries, to lease space for sidewalk cafe tables and chairs;

     (21) Within its boundaries, to provide or contract for the provision of security personnel, equipment or facilities for the protection of property and persons;

     (22) Within its boundaries, to provide cleaning, maintenance and other services to public and private property;

     (23) To produce and promote any tourism, recreational or cultural activity or special event in the district by, but not limited to, advertising, decoration of any public place in the district, promotion of such activity and special events, and furnishing music in any public place except in any county or counties of the third classification individual districts may join by agreement to promote tourism;

     (24) To support business activity and economic development in the district, including but not limited to the promotion of business activity, development and retention, and the recruitment of developers and businesses;

     (25) To provide or support training programs for employees of businesses within the district;

     (26) To provide refuse collection and disposal services within the district;

     (27) To contract for or conduct economic, planning, marketing or other studies;

     (28) To carry out any other powers set forth in sections 1 to 18; and

     (29) To exercise such other implied powers necessary or convenient for the district to accomplish its purposes which are not inconsistent with its express powers.

     2. Each district which is located in a blighted area or which includes a blighted area shall have the following additional powers:

     (1) Within its blighted area, to contract with any private property owner to demolish and remove, renovate, reconstruct or rehabilitate any building or structure owned by such private property owner; and

     (2) To expend its revenues or loan its revenues pursuant to a contract entered into pursuant to this subsection 2 of this section, provided that the governing body of the city has determined that the action to be taken pursuant to such contract is reasonably anticipated to remediate the blighting conditions and will serve a public purpose.

     3. Each district shall annually reimburse the city for the reasonable and actual expenses incurred by the city to establish such district and review annual budgets and reports of such district required to be submitted to the city; provided that such annual reimbursement shall not exceed one and one-half percent of the revenues collected by the district in such year.

     4. Nothing in sections 1 to 18 shall be construed to delegate to any district any sovereign right of municipalities to promote order, safety, health, morals and general welfare of the public, except those such police powers, if any, expressly delegated pursuant to sections 1 to 18.

     5. The governing body of the city establishing the district shall not decrease the level of publicly funded services in the district existing prior to the creation of the district or transfer the financial burden of providing the services to the district unless the services at the same time are decreased throughout the city, nor shall the governing body discriminate in the provision of the publicly funded services between areas included in such the district and areas not so included.

     Section 8. 1. The fiscal year for the district shall be the same as the fiscal year of the city.

     2. No earlier than one hundred eighty days and no later than ninety days prior to the first day of each fiscal year, the board shall submit to the governing body of the city a proposed annual budget, setting forth expected expenditures, revenues, and rates of assessments and taxes, if any, for such fiscal year. The governing body may review and comment to the board on this proposed budget, but if such comments are given, the governing body of the city must provide such written comments to the board no later than sixty days prior to the first day of the relevant fiscal year; such comments shall not constitute requirements but shall only be recommendations.

     3. The board shall hold an annual meeting and adopt an annual budget no later than the thirty days prior to the first day of each fiscal year.

     4. Within one hundred twenty days after the end of each fiscal year, the district shall submit a report to the city clerk of the city and the Missouri department of economic development stating the services provided, revenues collected and expenditures made by the district during such fiscal year, and copies of written resolutions approved by the board during the fiscal year. The city clerk shall retain this report as part of the official records of the city and shall also cause this report to be spread upon the records of the governing body.

     Section 9. 1. Each ordinance establishing a district shall set forth the term for the existence of such district which term may be defined as a minimum, maximum, or definite number of years or as perpetual.

     2. Upon receipt by the city clerk of a proper petition and after notice and a public hearing, any district may be terminated by city ordinance prior to the expiration of its term if the district has no outstanding obligations.

     3. A petition for the termination of a district is proper if:

     (1) It names the district to be terminated;

     (2) It has been signed by owners of real property collectively owning more than fifty percent by assessed value of real property within the boundaries of the district;

     (3) Is has been signed by more than fifty percent per capita of owners of real property within the boundaries of the district;

     (4) It contains a plan for dissolution and distribution of the assets of the district; and

     (5) The signature block signed by each petitioner is in the form set forth in subdivision (4) of subsection 2 of section 3.

     4. The public hearing required by this section shall be held and notice of such public hearing shall be given in the manner set forth in section 4. The notice shall contain the following information:

     (1) The date, time and place of the public hearing;

     (2) A statement that a petition requesting the termination of (insert district name) district has been filed with the city clerk;

     (3) A statement that a copy of the petition is available at the office of the city clerk during regular business hours; and

     (4) A statement that all interested parties will be given an opportunity to be heard.

     5. Upon expiration or termination of a district, the assets of such district shall be distributed in accordance with the plan for dissolution as approved by ordinance of the city. Every effort should be made by the city for the assets of the district to be distributed in such a manner so as to benefit the real property which was formerly a part of the district.

     Section 10. 1. A district may, at any time, issue obligations for the purpose of carrying out any of its powers, duties or purposes. Such obligations shall be payable out of all, part, or any combination of the revenues of the district and may be further secured by all or any part of any property or any interest in any property by mortgage or any other security interest granted. Such obligations shall be authorized by resolution of the district, and if issued by the district, shall bear such date or dates, and shall mature at such time or times, but not more than twenty years from the date of issuance, as the resolution shall specify. Such obligations shall be in such denomination, bear interest at such rate or rates, be in such form, be payable in such place or places, be subject to redemption as such resolution may provide and be sold at either public or private sale at such prices as the district shall determine subject to the provisions of section 108.170, RSMo. The district may also issue such obligations to refund, in whole or in part, obligations previously issued by the district.

     2. No obligation issued by a district that is a political subdivision shall constitute an indebtedness within the meaning of any constitutional, statutory or charter debt limitation or restriction. No such obligation shall be a general obligation of the district, municipality, county, state of Missouri or any political subdivision thereof, and shall not be payable out of any funds or properties other than those specifically pledged as security therefor, unless such obligation is issued as an indebtedness of the district with the approval of the qualified voters as required by the constitution in which instance the obligation shall be a general obligation of the district only.

     3. Obligations issued under this section by a district which is a political subdivision, the interest thereon, and any proceeds from such obligations shall be exempt from taxation in the state of Missouri.

     4. The city, any land clearance for redevelopment authority, port authority, tax increment financing commission, industrial development authority or planned industrial expansion authority of the city may, pursuant to a cooperative agreement with a district, issue obligations and loan the proceeds of such obligations to the district for the purpose of carrying out the powers, duties or purposes of the district.

     Section 11. 1. A district may use any one or more of the assessments, taxes, or other funding methods specifically authorized under sections 1 to 18 to provide funds to accomplish any power, duty or purpose of the district.

     2. A district may establish different classes of real property within the district. The levy rate for real estate taxes and special assessments may vary for each class based on the level of benefit derived from services and/or improvements funded, provided or caused to be provided by the district; however, the levy of real estate tax shall be uniform within each class. Any sales tax imposed under sections 1 to 18 shall be imposed at a rate that shall be uniform throughout the district.

     3. Notwithstanding anything in sections 1 to 18 to the contrary, any district which is not a political subdivision shall have no power to levy any tax but shall have the power to levy special assessments in accordance with section 13.

     Section 12. 1. Any city in which any part of a district is located may, by ordinance, establish a community improvement district municipal fund in the city treasury.

     2. This fund may be used to:

     (1) Pay the costs of planning, administration, and any improvement authorized in sections 1 to 18;

     (2) Prepare preliminary plans, studies, and engineering reports to determine the feasibility of a public improvement or service; or

     (3) If ordered by the governing body of the city, pay the initial cost of the public improvement or service until obligations have been issued and sold.

     3. The fund is not required to be budgeted for expenditure during any year, but the amount of the fund must be stated in the city's annual budget. The amount of the fund must be based on an annual service plan that describes the public improvements and services for the fiscal year.

     4. A grant-in-aid or contribution made to the city for the planning and preparation of plans for public improvement or service authorized under sections 1 to 18 may be credited to the community improvement district municipal fund.

     5. Other political subdivisions may enter into cooperative agreements with the district to make payments in lieu of taxes.

     Section 13. 1. A district may levy by resolution one or more special assessments against real property within its boundaries, upon receipt of and in accordance with a petition signed by:

     (1) Owners of real property collectively owning more than fifty percent by assessed value of real property within the boundaries of the district; and

     (2) More than fifty percent per capita of the owners of all real property within the boundaries of the district.

     2. The special assessment petition shall be in substantially the following form:

The (insert name of district) Community Improvement District ("District") shall be authorized to levy special assessments against real property benefitted within the District for the purpose of providing revenue for (insert general description of specific service and/or project(s)) in the District, said special assessments to be levied against each tract, lot or parcel of real property listed below within the District which receives special benefit as a result of such service and/or project(s), the cost of which shall be allocated among this property by (insert method of allocation, e.g., per square foot of property, per square foot on each square foot of improvement, or by abutting foot of property abutting streets, roads, highways, parks, or other improvements, or any other reasonable method) in an amount not to exceed .......... dollars per (insert unit of measure). Such authorization to levy the special assessment shall expire on (insert date). The tracts of land located in the District which will receive special benefit from this service and/or project(s) are:

(list of properties by common addresses and legal descriptions)

     3. The method for allocating such special assessments set forth in the petition may be any reasonable method which results in imposing assessments upon real property benefitted in relation to the benefit conferred upon each respective tract, lot or parcel of real property and the cost to provide such benefit.

     4. By resolution of the board, the district may levy a special assessment rate lower than the rate ceiling set forth in the petition authorizing the special assessment and may increase that lowered special assessment rate to a level not exceeding the special assessment rate ceiling set forth in the petition without further approval of the real property owners; provided that a district imposing a special assessment pursuant to this section may not repeal or amend such special assessment or lower the rate of such special assessment if such repeal, amendment or lower rate will impair the district's ability to pay any liabilities that it has incurred, money that it has borrowed or obligations that it has issued.

     5. Each special assessment which is due and owing shall constitute a personal liability against the property owner and a perpetual lien against each tract, lot or parcel of property from which it is derived. Such lien may be foreclosed in the same manner as any other special assessment lien as provided in section 88.861, RSMo.

     6. A separate fund or account shall be created by the district for each special assessment levied and each fund or account shall be identifiable by a suitable title. The proceeds of such assessments shall be credited to such fund or account. Such fund or account shall be used solely to pay the costs incurred in undertaking the specified service and/or project(s).

     7. Upon completion of the specified service and/or project(s), the balance remaining in the fund or account established for such specified service and/or project(s) shall be returned or credited against the amount of the original assessment of each parcel of property pro rata based on the method of assessment of such special assessment.

     8. Any funds in a fund or account created under this section which are not needed for current expenditures may be invested by the board in accordance with applicable laws relating to the investment of funds of the city in which the district is located.

     9. The authority of the district to levy special assessments shall be independent of the limitations and authorities of the city in which it is located; specifically, the provisions of section 88.812, RSMo, shall not apply to any district.

     Section 14. 1. The district may levy by resolution a tax upon real property located within the boundaries of the district; provided however, no such resolution shall be final nor shall it take effect until the qualified voters approve, by mail-in ballot, the tax which the resolution seeks to impose. If a majority of the votes cast by the qualified voters voting on the proposed tax are in favor of the tax, then the resolution and any amendments thereto shall be in effect. If a majority of the votes cast by the qualified voters voting are opposed to the tax, then the resolution seeking to levy the tax shall be deemed to be null and void.

     2. The district may levy a real property tax rate lower than the tax rate ceiling approved by the qualified voters pursuant to subsection 1 of this section and may increase that lowered tax rate to a level not exceeding the tax rate ceiling without approval of the qualified voters.

     3. The ballot shall be substantially in the following form:

Shall the (insert name of district) Community Improvement District ("District") impose a real property tax upon (all real property/or specify classes of real property) within the District at a rate of not more than (insert amount) dollars per hundred dollars assessed valuation for a period of (insert number) years from the date on which such tax is first imposed for the purpose of providing revenue for (insert general description of the purpose) in the District?

      YES                     NO

If you are in favor of the question, place an "X" in the box opposite "YES". If you are opposed to the question, place an "X" in the box opposite "NO".

     4. No district levying a real property tax pursuant to this section may repeal or amend such real property tax or lower the tax rate of such tax if such repeal, amendment or lower rate will impair the district's ability to repay any liabilities which it has incurred, money which it has borrowed or obligations that it has issued to finance any improvements or services rendered within the district.

     Section 15. 1. The district may impose by resolution an additional tax on businesses and individuals doing business in the district; provided, however, no such resolution shall be final or shall it take effect until the qualified voters approve, by mail-in ballot, the tax which the resolution seeks to impose. If a majority of the votes cast by the qualified voters voting on the proposed tax are in favor of the tax, then the resolution and any amendments thereto shall be in effect. If a majority of the votes cast by the qualified voters voting are opposed to the tax, then the resolution seeking to levy the tax shall be deemed to be null and void.

     2. The district may levy a business license tax rate lower than the tax rate ceiling approved by the qualified voters pursuant to subsection 1 of this section and may increase that lowered tax rate to a level not exceeding the tax rate ceiling without approval of the qualified voters.

     3. The ballot shall be substantially in the following form:

Shall the (insert name of district) Community Improvement District impose a business license tax upon all individuals and businesses doing business within the community improvement district at a rate of not more than (insert rate) for a period of (insert number) years from the date on which such tax is first imposed for the purpose of providing revenue for (insert general description of the purpose)?

      YES                          NO

If you are in favor of the question, place an "X" in the box opposite "YES". If you are opposed to the question, place an "X" in the box opposite "NO".

     4. No district imposing a business license tax pursuant to this section may repeal or amend such business license tax or lower the rate of such tax unless such repeal, amendment or lower rate will not impair the district's ability to pay any liabilities which it has incurred, money which it has borrowed or obligations which it has issued to finance any improvements or services rendered for the district.

     Section 16. 1. The county collector of each county in which the district is located shall collect the real property taxes and special assessments made upon all real property within that county and district, in the same manner as other real property taxes are collected. If the special assessment is based on something other than the assessed value of real property, the district shall provide the information on which such special assessment is based for all applicable real property. In addition, the city treasurer of the city in which the district is located shall collect business license taxes imposed by the district in the same manner as other business license taxes, if any, are collected.

     2. Every county collector and city treasurer having collected or received district assessments or taxes shall, on or before the fifteenth day of each month and after deducting the cost of such collection but not to exceed one percent of the total amount collected, remit to the treasurer of that district the amount collected or received by him/her prior to the first day of such month. Upon receipt of such money, the district treasurer shall execute a receipt therefor, which he or she shall forward or deliver to the county collector or city treasurer which collected such money. The district treasurer shall deposit such sums into the district treasury, credited to the appropriate fund or account. The county collector or city treasurer, and district treasurer shall make final settlement of the district account and costs owing, not less than once each year, if necessary.

     3. As an alternative to the method of collection set forth in subsections 2 and 3 of this section, the district may elect to collect any such special assessments, real property taxes or business license taxes on its own behalf.

     Section 17. 1. Notwithstanding the provisions of chapter 115, an election for real estate tax or business license tax under sections 1 to 18 shall be conducted in accordance with the provisions of this section.

     2. After the board has passed a resolution for the levy of real property tax or for imposition of a or business license tax and a vote of the qualified voters is required, the board shall provide written notice of such resolution to the city clerk. The board shall be entitled to rescind such resolution provided that written notice of such recision is delivered to the city clerk prior to the time the city clerk mails the ballots to the qualified voters.

     3. Upon receipt of written notice of a district's resolution for the levy of a real property tax or for imposition of a business license tax the city clerk shall:

     (1) Specify a date upon which the election shall occur, which date shall be a Tuesday, and shall be not earlier than the tenth Tuesday, and not later than the fifteenth Tuesday, after the date of the board's passage of the resolution and shall not be on the same day as an election conducted under the provisions of chapter 115, RSMo;

     (2) Publish notice of the election in a newspaper of general circulation within the city two times. The first publication date shall be more than sixty days prior to the date of the election and the second publication date shall be not more than thirty days and not less than ten days prior to the date of the election. The published notice shall include, but not be limited to, the following information:

     (a) The name and general boundaries of the district;

     (b) The type of tax proposed, its rate, purpose and duration;

     (c) The date the ballots for the election shall be mailed to qualified voters;

     (d) The date of the election;

     (e) Qualified voters will consist of (a) such persons who reside within the district and who are registered voters pursuant to the records of the election authority as of the thirtieth day prior to the date of the election; or (b) if no such registered voters reside in the district, the owners of real property located within the district pursuant to the county tax rolls for real property as of the thirtieth day prior to the date of the election;

     (f) A statement that persons residing in the district must register to vote with the election authority on or before the thirtieth day prior to the date of the election in order to be a qualified voter for purposes of the election;

     (g) A statement that the ballot must be returned to the city clerk's office in person, or by depositing the ballot in the United States mail addressed to the city clerk's office and post-marked, no later than the date of the election; and

     (h) A statement that any qualified voter that did not receive a ballot in the mail or lost the ballot received in the mail may pick up a mail-in ballot at the city clerk's office, specifying the dates and time such ballot will be available and the location of the city clerk's office;

     (3) The city clerk shall mail to each qualified voter not more than fifteen days and not less than ten days prior to the date of the election together with a notice containing substantially the same information as the published notice and a return addressed envelope directed to the city clerk's office with a sworn affidavit on the reverse side of such envelope for the qualified voter's signature. For purposes of mailing ballots to real property owners only one ballot shall be mailed per capita at the address shown on the county tax rolls. Such affidavit shall be in substantially the following form:

FOR REGISTERED VOTERS:

     I hereby declare under penalties of perjury that I reside in the (insert name) Community Improvement District and I am a registered voter and qualified to vote in this election.

...................................................................................................................

Qualified Voter's Signature

.

Printed Name of Qualified Voter

FOR REAL PROPERTY OWNERS:

     I hereby declare under penalty of perjury that I am the owner of real property in the (insert name) Community Improvement District and qualified to vote in this election, or authorized to affix my signature on behalf of the owner (named below) of real property in the (insert name) Community Improvement District which is qualified to vote in this election.

................................

Signature

................................

Print Name of Real Property Owner

If Signer is Different from Owner:

Name of Signer: ........................................

State Basis of Legal Authority to Sign: .................................................

     All persons or entities having a fee ownership in the property must sign the ballot. Additional signature pages may be affixed to this ballot to accommodate all required signatures.

     4. Each qualified voter shall have one vote. Each voted ballot shall be signed with the authorized signature.

     5. Mail-in ballots shall be returned to the city clerk's office in person, or by depositing the ballot in the United States mail addressed to the city clerk's office and post-marked, no later than the date of the election. The city clerk shall transmit all voted ballots to a team of judges of not less than four, with an equal number from each of the two major political parties. The judges shall be selected by the city clerk from lists compiled by the election authority. Upon receipt of the voted ballots, the judges shall verify the authenticity of the ballots, canvass the votes, and certify the results. Certification by the election judges shall be final and shall be immediately transmitted to the city clerk. Any qualified voter who voted in such election may contest the result in the same manner as provided in chapter 115, RSMo.

     6. The results of the election shall be entered upon the records of the city clerk and a certified copy of the election results shall be filed with the county clerk of each county in which a portion of the proposed district lies, who shall cause the same to be entered upon the records of the county clerk.

     7. The district shall reimburse the city clerk for the costs it incurs to conduct an election under this section.

     Section 18. In addition to the number of enterprise zones authorized under the provisions of sections 135.206, 135.208, 135.210 and 135.256, the department of economic development shall designate one such zone in any city not within a county if such area which is to be included in the enterprise zone meets all the requirements of section 135.205.