SECONDREGULARSESSION
HOUSEBILLNO.1685
101STGENERALASSEMBLY
INTRODUCEDBYREPRESENTATIVEBLACK(137).
3921H.01I DANARADEMANMILLER,ChiefClerk
ANACT
Toamendchapter620,RSMo,byaddingtheretoonenewsectionrelatingtoworkforce
development.
BeitenactedbytheGeneralAssemblyofthestateofMissouri,asfollows:
SectionA.Chapter620,RSMo,isamendedbyaddingtheretoonenewsection,tobe
2knownassection620.2250,toreadasfollows:
620.2250.1.Thissectionshallbeknownandmaybecitedasthe"Targeted
2IndustrialManufacturingEnhancementZonesAct".
3 2.Asusedinthissection,thefollowingtermsmean:
4 (1)"Countyaveragewage",theaveragewageineachcountyasdeterminedby
5thedepartmentforthemostrecentlycompletedfullcalendaryear.However,ifthe
6computedcountyaveragewageisabovethestatewideaveragewage,thestatewide
7averagewageshallbedeemedthecountyaveragewageforsuchcountyforthepurpose
8ofdeterminingeligibility;
9 (2)"Department",theMissouridepartmentofeconomicdevelopment;
10 (3)"Newjob",thenumberoffull-timeemployeeslocatedattheprojectfacility
11thatexceedstheprojectfacilitybaseemploymentlessanydecreaseinthenumberof
12full-timeemployeesatrelatedfacilitiesbelowtherelatedfacilitybaseemployment.No
13jobthatwascreatedpriortothedateofthecompletionofanagreementunder
14subsection6ofthissectionandnojobthatisrelocatedfromanotherlocationwithinthis
15stateshallbedeemedanewjob.Anemployeewhospendslessthanfiftypercentofthe
16employee'sworktimeatthefacilityisstillconsideredtobelocatedatafacilityifthe
17employeereceivessuchemployee'sdirectionsandcontrolfromthatfacility,isonthe
EXPLANATION—Matterenclosedinbold-facedbrackets[thus] intheabovebillisnotenactedandis
intendedtobeomittedfromthelaw.Matterinbold-facetypeintheabovebillisproposedlanguage. 18facility'spayroll,onehundredpercentoftheemployee'sincomefromsuchemployment
19isMissouriincome,andtheemployeeispaidatorabovethecountyaveragewage;
20 (4)"Politicalsubdivision",atown,village,city,orcountylocatedinthisstate;
21 (5)"Relatedfacility",afacilityoperatedbyacompanyorarelatedcompany
22priortotheestablishmentoftheTIMEzoneinquestionandthatisdirectlyrelatedto
23theoperationsofthefacilitywithinthenewTIMEzone;
24 (6)"TIMEzone",anareaidentifiedthroughanordinanceorresolutionpassed
25undersubsection4ofthissectionthatisbeingdevelopedorredevelopedforanypurpose
26solongasanyinfrastructureorbuildingbuiltorimprovedisinthedevelopmentarea;
27 (7)"Zoneboard",thegoverningbodyofaTIMEzone.
28 3.Thegoverningbodiesofatleasttwocontiguousoroverlappingpolitical
29subdivisionsinthisstatemayestablishoneormoreTIMEzones,whichshallbepolitical
30subdivisionsofthestate,forthepurposesofcompletinginfrastructureprojectsto
31promotetheeconomicdevelopmentoftheregion.Suchzonesshallincludeonlythearea
32withinthegoverningbodies'jurisdiction,ownership,orcontrolandmayincludeany
33sucharea.ThegoverningbodiesshalldeterminetheboundariesforeachTIMEzone,
34andmorethanoneTIMEzonemayexistwithinthegoverningbodies'jurisdictionor
35underthegoverningbodies'ownershiporcontrolandmaybeexpandedorcontracted
36byresolutionofthezoneboard.
37 4.(1)ToestablishaTIMEzone,thegoverningbodiesofatleasttwopolitical
38subdivisionsshalleachproposeanordinanceorresolutioncreatingsuchzone.Such
39ordinanceorresolutionshallsetforththenamesofthepoliticalsubdivisionsthatwill
40formtheTIMEzone,thegeneralnatureoftheproposedimprovements,theestimated
41costofsuchimprovements,theboundariesoftheproposedTIMEzone,andthe
42estimatednumberofnewjobstobecreatedintheTIMEzone.Priortoapprovingsuch
43ordinanceorresolution,eachgoverningbodyshallholdapublichearingtoconsiderthe
44creationoftheTIMEzoneandtheproposedimprovementstherein.Thegoverning
45bodiesshallhearandpassuponallobjectionstotheTIMEzoneandtheproposed
46improvements,ifany,andmayamendtheproposedimprovementsandtheplansand
47specificationstherefor.
48 (2)Afterthepassageoradoptionoftheordinanceorresolutioncreatingthe
49TIMEZone,governanceoftheTIMEzoneshallbebythezoneboard,whichshall
50consistofsevenmembersselectedfromthepoliticalsubdivisionscreatingtheTIME
51zone.Membersofazoneboardshallreceivenosalaryorothercompensationfortheir
52servicesasmembersbutshallreceivetheirnecessarytravelingandotherexpenses
53incurredwhileactuallyengagedinthedischargeofofficialduties.Thezoneboardmay
HB1685 2 54expandorcontractsuchTIMEzonethroughanordinanceorresolutionfollowinga
55publichearingconductedtoconsidersuchexpansionorcontraction.
56 5.TheboundariesoftheproposedTIMEzoneshallbedescribedbymetesand
57bounds,streets,orothersufficientlyspecificdescription.
58 6.(1)Priortoretaininganystatewithholdingtaxundersubsection9ofthis
59section,azoneboardshallenterintoanagreementwiththedepartment.Such
60agreementshallinclude,butshallnotbelimitedto:
61 (a)Theestimatednumberofnewjobstobecreated;
62 (b)Theestimatedaveragewageofnewjobstobecreated;
63 (c)Theestimatednetfiscalimpactofthenewjobs;
64 (d)Theestimatedcostsoftheproposedimprovements;
65 (e)Theestimatedamountofwithholdingtaxtoberetainedundersubsection9of
66thissectionovertheperiodoftheagreement;and
67 (f)Acopyoftheordinanceestablishingtheboardandalistofitsmembers.
68 (2)Thedepartmentshallnotapproveanagreementwithazoneboardunlessthe
69zoneboardcommitstocreatingthefollowingnumberofnewjobs:
70 (a)ForaTIMEzonewithfewerthanfivethousandinhabitantsasdeterminedby
71themostrecentdecennialcensus,aminimumoffivenewjobswithanaveragewagethat
72equalsorexceedsninetypercentofthecountyaveragewage;
73 (b)ForaTIMEzonewithatleastfivethousandinhabitantsbutfewerthanfifty
74thousandinhabitantsasdeterminedbythemostrecentdecennialcensus,aminimumof
75tennewjobswithanaveragewagethatequalsorexceedsninetypercentofthecounty
76averagewage;
77 (c)ForaTIMEzonewithatleastfiftythousandinhabitantsbutfewerthanone
78hundredfiftythousandinhabitantsasdeterminedbythemostrecentdecennialcensus,a
79minimumoffifteennewjobswithanaveragewagethatequalsorexceedsninetypercent
80ofthecountyaveragewage;and
81 (d)ForaTIMEzonewithatleastonehundredfiftythousandinhabitantsas
82determinedbythemostrecentdecennialcensus,aminimumoftwenty-fivenewjobs
83withanaveragewagethatequalsorexceedsninetypercentofthecountyaveragewage.
84 7.(1)Thetermoftheagreemententeredintoundersubsection6ofthissection
85shallnotexceedtenyears.Azoneboardmayapplytothedepartmentforapprovalto
86renewanyagreement.Suchapplicationshallbemadeonformsprovidedbythe
87department.Indeterminingwhethertoapprovetherenewalofanagreement,the
88departmentshallconsider:
89 (a)Thenumberofnewjobscreatedandtheaveragewageandnetfiscalimpact
90ofsuchjobs;
HB1685 3 91 (b)TheoutstandingimprovementstobemadewithintheTIMEzoneandthe
92fundingnecessarytocompletesuchimprovements;and
93 (c)Anyotherfactorthedepartmentrequires.
94 (2)Thedepartmentmayapprovetherenewalofanagreementforaperiodnot
95toexceedtenyears.Ifazoneboardhasnotmetthenewjobrequirementsunder
96subdivision(2)ofsubsection6ofthissectionbytheendoftheagreement,the
97departmentshallrecapturefromsuchzoneboardtheamountofwithholdingtax
98retainedbythezoneboardunderthissectionandthedepartmentshallnotapprovethe
99renewalofanagreementwithsuchzoneboard.
100 (3)Azoneboardshallnotretainanywithholdingtaxunderthissectioninexcess
101ofthecostsofimprovementscompletedbythezoneboard.
102 8.Ifaqualifiedcompanyisretainingwithholdingtaxundersections620.2000to
103620.2020fornewjobs,assuchtermsaredefinedinsection620.2005,thatalsoqualify
104fortheretentionofwithholdingtaxunderthissection,thedepartmentshallnot
105authorizeanagreementunderthissectionthatresultsinmorethanfiftypercentofthe
106withholdingtaxforsuchnewjobsbeingretainedunderthissectionandsections
107620.2000to620.2020.
108 9.Uponthecompletionofanagreementundersubsection6ofthissection,
109twenty-fivepercentofthestatetaxwithholdingsimposedundersections143.191to
110143.265onnewjobswithinaTIMEzoneafterdevelopmentorredevelopmenthas
111commencedshallnotberemittedtothegeneralrevenuefundofthestateofMissouri.
112SuchmoneysshallbedepositedintotheTIMEzonefundestablishedundersubsection
11310ofthissectionforthepurposeofcontinuingtoexpand,develop,andredevelopTIME
114zonesidentifiedbythezoneboard,andmaybeusedformanagerial,engineering,legal,
115research,promotion,planning,andanyotherexpenses.
116 10.Thereisherebycreatedinthestatetreasurythe"TIMEZoneFund",which
117shallconsistofmoneyscollectedunderthissection.Thestatetreasurershallbe
118custodianofthefundandmayapprovedisbursementsfromthefundinaccordancewith
119sections30.170and30.180tothezoneboardsoftheTIMEzonesfromwhichthefunds
120werecollected,lesstheprorataportionappropriatedbythegeneralassemblytobeused
121solelyfortheadministrationofthissection,whichshallnotexceedtenpercentofthe
122totalamountcollectedwithintheTIMEzonesofazoneboard.Notwithstandingthe
123provisionsofsection33.080tothecontrary,anymoneysremaininginthefundatthe
124endofthebienniumshallnotreverttothecreditofthegeneralrevenuefund.Thestate
125treasurershallinvestmoneysinthefundinthesamemannerasotherfundsare
126invested.Anyinterestandmoneysearnedonsuchinvestmentsshallbecreditedtothe
127fund.
HB1685 4 128 11.Thezoneboardshallapproveprojectsconsistentwiththeprovisionsofthis
129sectionthatbeginconstructionanddisburseanymoneyscollectedunderthissection.
130Thezoneboardshallsubmitanannualbudgetforthefundstothedepartment
131explaininghowandwhensuchmoneyswillbespent.
132 12.AzoneboardshallsubmitanannualreportonorbeforeDecemberthirty-
133firstofeachyeartothedepartmentandthegeneralassembly.Suchreportshallinclude,
134butshallnotbelimitedto:
135 (1)ThelocationsoftheestablishedTIMEzonesgovernedbythezoneboard;
136 (2)ThenumberofnewjobscreatedwithintheTIMEzonesgovernedbythe
137zoneboard;
138 (3)TheaveragewageofthenewjobscreatedwithintheTIMEzonesgoverned
139bythezoneboard;
140 (4)TheimprovementsutilizingTIMEzonefunding;
141 (5)TheamountofTIMEzonefundingutilizedforeachimprovementandthe
142totalamountofTIMEzonefundsexpended;and
143 (6)Theamountofwithholdingtaxretainedundersubsection9ofthissection
144fromnewjobscreatedwithintheTIMEzonesgovernedbythezoneboard.
145 13.NopoliticalsubdivisionshallestablishaTIMEzonewithboundariesthat
146overlaptheboundariesofanadvancedindustrialmanufacturingzoneestablishedunder
147section68.075.
148 14.ThetotalamountofwithholdingtaxesretainedbyallTIMEzonesunderthe
149provisionsofthissectionshallnotexceedfivemilliondollarsperfiscalyear.
150 15.Thedepartmentmaypromulgaterulestoimplementtheprovisionsofthis
151section.Anyruleorportionofarule,asthattermisdefinedinsection536.010,thatis
152createdundertheauthoritydelegatedinthissectionshallbecomeeffectiveonlyifit
153complieswithandissubjecttoalloftheprovisionsofchapter536and,ifapplicable,
154section536.028.Thissectionandchapter536arenonseverable,andifanyofthepowers
155vestedwiththegeneralassemblypursuanttochapter536toreview,todelaythe
156effectivedate,ortodisapproveandannularulearesubsequentlyheldunconstitutional,
157thenthegrantofrulemakingauthorityandanyruleproposedoradoptedafterAugust
15828,2022,shallbeinvalidandvoid.
159 16.Notwithstandingtheprovisionsofsection23.253tothecontrary,noTIME
160zoneshallbeestablishedafterAugust28,2025.AnyTIMEzonecreatedpriortosuch
161dateshallcontinuetoexistandbecoterminouswiththeretirementofanydebts
162incurredforimprovementsmadewithintheTIMEzone.Nodebtsshallbeincurredor
163reauthorizedusingTIMEzonerevenueafterAugust28,2025.
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