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Missouri House Bill HB1885

Missouri 2022 Regular Session

Missouri House Bill HB1885 Compare Versions

Only one version of the bill is available at this time.
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11 SECONDREGULARSESSION
22 HOUSEBILLNO.1885
33 101STGENERALASSEMBLY
44 INTRODUCEDBYREPRESENTATIVEPOLLITT(52).
55 4365H.01I DANARADEMANMILLER,ChiefClerk
66 ANACT
77 Toamendchapter620,RSMo,byaddingtheretosevennewsectionsrelatingtorural
88 workforcedevelopmentincentives,withpenaltyprovisions.
99 BeitenactedbytheGeneralAssemblyofthestateofMissouri,asfollows:
1010 SectionA.Chapter620,RSMo,isamendedbyaddingtheretosevennewsections,to
1111 2beknownassections620.3500,620.3505,620.3510,620.3515,620.3520,620.3525,and
1212 3620.3530,toreadasfollows:
1313 620.3500.Sections620.3500to620.3530shallbeknownandmaybecitedasthe
1414 2"MissouriRuralWorkforceDevelopmentAct".
1515 620.3505.Asusedinsections620.3500to620.3530,thefollowingtermsshall
1616 2mean:
1717 3 (1)"Affiliate",anentitythatdirectly,orindirectlythroughoneormore
1818 4intermediaries,controls,iscontrolledby,orisundercommoncontrolwithanother
1919 5entity.Anentityiscontrolledbyanotherentityifthecontrollingentityholds,directlyor
2020 6indirectly,themajorityvotingorownershipinterestinthecontrolledentityorhas
2121 7controloverday-to-dayoperationsofthecontrolledentitybycontractorbylaw;
2222 8 (2)"Agribusiness",abusinessthatproducesorprovidesanygoodsorservices
2323 9producedinthisstateandthatarenormallyusedbyfarmers,ranchers,orproducers
2424 10andharvestersofaquaticproductsintheirbusinessoperations,ortoimprovethe
2525 11welfareorlivelihoodofsuchpersons,orisinvolvedintheprocessingandmarketingof
2626 12agriculturalproducts,farmsupplies,andinputsuppliers,orisengagedinagribusiness
2727 13asdefinedbytheUnitedStatesDepartmentofAgriculture,orisengagedin
2828 14manufacturing,healthcare,technology,transportation,orrelatedservices,orifnot
2929 EXPLANATION—Matterenclosedinbold-facedbrackets[thus] intheabovebillisnotenactedandis
3030 intendedtobeomittedfromthelaw.Matterinbold-facetypeintheabovebillisproposedlanguage. 15engagedinsuchindustries,thedepartmentdeterminesthatsuchinvestmentwillbe
3131 16beneficialtotheruralareaandtheeconomicgrowthofthestate;
3232 17 (3)"Applicablepercentage",zeropercentforthefirsttwocreditallowancedates
3333 18andfifteenpercentforthenextfourcreditallowancedates;
3434 19 (4)"Capitalinvestment",anyequityinvestmentinaruralfundbyarural
3535 20investorthat:
3636 21 (a)Isacquiredaftertheeffectivedateofsections620.3500to620.3530atits
3737 22originalissuancesolelyinexchangeforcash;
3838 23 (b)Hasonehundredpercentofitscashpurchasepriceusedbytheruralfundto
3939 24makequalifiedinvestmentsineligiblebusinesseslocatedinthisstatebythethird
4040 25anniversaryoftheinitialcreditallowancedate;and
4141 26 (c)Isdesignatedbytheruralfundasacapitalinvestmentundersections
4242 27620.3500to620.3530andiscertifiedbythedepartmentundertheprovisionsofsection
4343 28620.3510.Thisshallincludeanycapitalinvestmentthatdoesnotmeettheprovisionsof
4444 29subdivision(1)ofsubsection1ofsection620.3510ifsuchinvestmentwasacapital
4545 30investmentinthehandsofapriorholder;
4646 31 (5)"Creditallowancedate",thedateonwhichthedepartmentcertifiesarural
4747 32fund'scapitalinvestmentandeachofthefiveanniversarydatesofsuchdatethereafter;
4848 33 (6)"Department",theMissouridepartmentofeconomicdevelopment;
4949 34 (7)"Eligiblebusiness",abusinessthat,atthetimeoftheinitialqualified
5050 35investmentinthebusiness:
5151 36 (a)Hasfewerthantwohundredfiftyemployees;and
5252 37 (b)Hasitsprincipalbusinessoperationsinthisstate.
5353 38
5454 39Anybusinessthatisclassifiedasaneligiblebusinessatthetimeoftheinitialinvestment
5555 40insuchbusinessbyaruralfundshallremainclassifiedasaneligiblebusinessandmay
5656 41receivefollow-oninvestmentsfromanyruralfund,andsuchfollow-oninvestmentsshall
5757 42bequalifiedinvestmentseventhoughsuchbusinessmaynotmeetthedefinitionofan
5858 43eligiblebusinessatthetimeofsuchfollow-oninvestments;
5959 44 (8)"Principalbusinessoperations",thelocationwhereatleastsixtypercentofa
6060 45business'semployeesworkorwhereemployeeswhoarepaidatleastsixtypercentof
6161 46suchbusiness'spayrollwork.Abusinessthathasagreedtorelocateemployeesusingthe
6262 47proceedsofaqualifiedinvestmenttoestablishitsprincipalbusinessoperationsinanew
6363 48locationshallbedeemedtohaveitsprincipalbusinessoperationsinsuchnewlocationif
6464 49itsatisfiedtherequirementsofthissubdivisionnolaterthanonehundredeightydays
6565 50afterreceivingaqualifiedinvestment;
6666 HB1885 2 51 (9)"Purchaseprice",theamountpaidtotheruralfundthatissuesacapital
6767 52investment,whichshallnotexceedtheamountofcapitalinvestmentauthoritycertified
6868 53undertheprovisionsofsection620.3510;
6969 54 (10)"Qualifiedinvestment",anyinvestmentinaneligiblebusinessoranyloan
7070 55toaneligiblebusinesswithastatedmaturitydateofatleastoneyearafterthedateof
7171 56issuance,excludingrevolvinglinesofcreditandseniorsecureddebtunlessthechief
7272 57executiveorsimilarofficeroftheeligiblebusinesscertifiesthattheeligiblebusiness
7373 58soughtandwasdeniedsimilarfinancingfromadepositoryinstitution,byaruralfund;
7474 59providedthat,withrespecttoanyoneeligiblebusiness,themaximumamountof
7575 60investmentsmadeinsuchbusinessbyoneormoreruralfunds,onacollectivebasiswith
7676 61allofthebusiness'saffiliates,withtheproceedsofcapitalinvestmentsshallbethe
7777 62greateroftwentypercentoftheruralfund'scapitalinvestmentauthorityorsixmillion
7878 63fivehundredthousanddollars,exclusiveofinvestmentsmadewithrepaidorredeemed
7979 64investmentsorinterestorprofitsrealizedthereon;
8080 65 (11)"Ruralarea",anycountyofthisstatethathasapopulationoflessthan
8181 66ninetythousandinhabitantsaccordingtothe2010decennialcensusoftheUnitedStates;
8282 67 (12)"Ruralfund",anentitycertifiedbythedepartmentundertheprovisionsof
8383 68section620.3510;
8484 69 (13)"Ruralinvestor",anentitythatmakesacapitalinvestmentinaruralfund;
8585 70 (14)"Seniorsecureddebt",anyloanthatissecuredbyafirstmortgageonreal
8686 71estatewithaloan-to-valueratiooflessthaneightypercent;
8787 72 (15)"Statetaxliability",anyliabilityincurredbyanyentitysubjecttothestate
8888 73incometaximposedunderchapter143,excludingwithholdingtaximposedunder
8989 74sections143.191to143.265,oraninsurancecompanypayinganannualtaxonitsgross
9090 75premiumreceipts,includingretaliatorytax,orotherfinancialinstitutionpayingtaxesto
9191 76thestateoranypoliticalsubdivisionofthestateundertheprovisionsofchapter148,or
9292 77anexpresscompanythatpaysanannualtaxonitsgrossreceiptsinthisstate.
9393 620.3510.1.Aruralfundthatseekstohaveanequityinvestmentcertifiedasa
9494 2capitalinvestmenteligibleforcreditsauthorizedundertheprovisionsofsections
9595 3620.3500to620.3530shallapplytothedepartment.Thedepartmentshallbegin
9696 4acceptingapplicationswithinninetydaysoftheeffectivedateofsections620.3500to
9797 5620.3530.Theapplicationshallinclude:
9898 6 (1)Theamountofcapitalinvestmentrequested;
9999 7 (2)Acopyoftheapplicant'soranaffiliateoftheapplicant'slicenseasarural
100100 8businessinvestmentcompanyunder7U.S.C.Section2009ccorasasmallbusiness
101101 9investmentcompanyunder15U.S.C.Section681,andacertificateexecutedbyan
102102 HB1885 3 10executiveofficeroftheapplicantattestingthatsuchlicenseremainsineffectandhasnot
103103 11beenrevoked;
104104 12 (3)Evidencethat,asofthedatetheapplicationissubmitted,theapplicantor
105105 13affiliatesoftheapplicanthaveinvested:
106106 14 (a)Atleastonehundredmilliondollarsinnonpubliccompanieslocatedin
107107 15countieswithintheUnitedStateswithapopulationoflessthanfiftythousand
108108 16inhabitantsaccordingtothe2010decennialcensusofUnitedStates;and
109109 17 (b)AtleastthirtymilliondollarsinnonpubliccompanieslocatedinMissouri;
110110 18 (4)Abusinessplanthatincludesarevenueimpactassessmentprojectingstate
111111 19andlocaltaxrevenuetobegeneratedbytheapplicant'sproposedqualifiedinvestments,
112112 20preparedbyanationallyrecognized,third-party,independenteconomicforecasting
113113 21firmusingadynamiceconomicforecastingmodelthatanalyzestheapplicant'sbusiness
114114 22planoverthetenyearsfollowingthedatetheapplicationissubmittedtothe
115115 23department.Suchplanshallincludeanestimateofthenumberofjobscreatedandjobs
116116 24retainedinthisstateasaresultoftheapplicant'squalifiedinvestments;and
117117 25 (5)Anonrefundableapplicationfeeoffivethousanddollarspayabletothe
118118 26department.
119119 27 2.Withinthirtydaysafterthereceiptofacompletedapplication,the
120120 28departmentshallgrantordenytheapplicationinfullorinpart.Thedepartmentshall
121121 29denytheapplicationif:
122122 30 (1)Theapplicantdoesnotsatisfyallofthecriteriaprovidedundersubsection1
123123 31ofthissection;
124124 32 (2)Therevenueimpactassessmentsubmittedwiththeapplicationdoesnot
125125 33demonstratethattheapplicant'sbusinessplanwillresultinapositivefiscalimpacton
126126 34thisstateoveraten-yearperiodthatexceedsthecumulativeamountoftaxcreditsthat
127127 35wouldbeissuedtotheapplicantiftheapplicationwereapproved;or
128128 36 (3)Thedepartmenthasalreadyapprovedthemaximumamountofcapital
129129 37investmentauthorityundersection620.3515.
130130 38 3.Ifthedepartmentdeniesanypartoftheapplication,itshallinformthe
131131 39applicantofthegroundsforsuchdenial.Iftheapplicantprovidesanyadditional
132132 40informationrequiredbythedepartmentorotherwisecompletesitsapplicationwithin
133133 41fifteendaysofthenoticeofdenial,theapplicationshallbeconsideredcompleteasofthe
134134 42originaldateofsubmission.Iftheapplicantfailstoprovidetheinformationorfailsto
135135 43completeitsapplicationwithinthefifteen-dayperiod,theapplicationshallremain
136136 44deniedandshallberesubmittedinfullwithanewsubmissiondateandanew
137137 45applicationfee.
138138 HB1885 4 46 4.Uponapprovalofanapplication,thedepartmentshallcertifytheproposed
139139 47equityinvestmentasacapitalinvestmenteligibleforcreditsundersections620.3500to
140140 48620.3530,subjecttothelimitationscontainedinsection620.3515.Thedepartmentshall
141141 49providewrittennoticeofthecertificationtotheapplicant,whichshallincludethe
142142 50amountoftheapplicant'scapitalinvestmentauthority.Thedepartmentshallcertify
143143 51capitalinvestmentsintheorderthattheapplicationsarereceivedbythedepartment.
144144 52Applicationsreceivedonthesamedayshallbedeemedtohavebeenreceived
145145 53simultaneously.Forapplicationsthatarecompleteandreceivedonthesameday,the
146146 54departmentshallcertifyapplicationsinproportionatepercentagesbasedupontheratio
147147 55oftheamountofcapitalinvestmentauthorityrequestedinanapplicationtothetotal
148148 56amountofcapitalinvestmentauthorityrequestedinallapplications.
149149 620.3515.1.Thedepartmentshallcertifycapitalinvestmentauthorityunderthe
150150 2provisionsofsections620.3500to620.3530inamountsthatwouldauthorizenotmore
151151 3thantwenty-fivemilliondollarsinstatetaxcreditstobeclaimedagainststatetax
152152 4liabilityinanycalendaryear,excludinganycreditamountscarriedforwardasprovided
153153 5undersubsection1ofsection620.3520.Withinninetydaysoftheapplicantreceiving
154154 6noticeofcertification,theruralfundshallissuethecapitalinvestmentto,andreceive
155155 7cashintheamountofthecertifiedamountfrom,aruralinvestor.Atleasttenpercentof
156156 8theruralinvestor'scapitalinvestmentshallbecomposedofcapitalraisedbytherural
157157 9investordirectlyorindirectlyfromsources,includingdirectors,members,employees,
158158 10officers,andaffiliatesoftheruralinvestor,otherthantheamountinvestedbythe
159159 11allocateeclaimingthetaxcreditsinexchangeforsuchallocationoftaxcredits.The
160160 12ruralfundshallprovidethedepartmentwithevidenceofthereceiptofthecash
161161 13investmentwithinninety-fivedaysoftheapplicantreceivingnoticeofcertification.
162162 14 2.Iftheruralfunddoesnotreceivethecashinvestmentandissuethecapital
163163 15investmentwithinsuchtimeperiodfollowingreceiptofthecertificationnotice,the
164164 16certificationshalllapseandtheruralfundshallnotissuethecapitalinvestmentwithout
165165 17reapplyingtothedepartmentforcertification.Lapsedcertificationsshallreverttothe
166166 18departmentandshallbereissuedproratatoapplicantswhosecapitalinvestment
167167 19allocationswerereducedinaccordancewiththeapplicationprocessprovidedunder
168168 20subsection4ofsection620.3510.
169169 21 3.Aruralfund,beforemakingaqualifiedinvestment,mayrequestfromthe
170170 22departmentawrittenopinionastowhetherthebusinessinwhichitproposestoinvestis
171171 23aneligiblebusiness.Thedepartment,notlaterthanthefifteenthbusinessdayafterthe
172172 24dateofreceiptofsuchrequest,shallnotifytheruralfundofitsdetermination.Ifthe
173173 25departmentfailstonotifytheruralfundofitsdeterminationbythetwentiethbusiness
174174 HB1885 5 26day,thebusinessinwhichtheruralfundproposestoinvestshallbedeemedaneligible
175175 27business.
176176 620.3520.1.Uponmakingacapitalinvestmentinaruralfund,aruralinvestor
177177 2shallhaveavestedrighttoacreditagainstsuchentity'sstatetaxliabilitythatmaybe
178178 3utilizedoneachcreditallowancedateofsuchcapitalinvestmentinanamountequalto
179179 4theapplicablepercentageforsuchcreditallowancedatemultipliedbythepurchase
180180 5pricepaidtotheruralfundforthecapitalinvestment.Theamountofthecredit
181181 6claimedbyaruralinvestorshallnotexceedtheamountofsuchentity'sstatetaxliability
182182 7forthetaxyearforwhichthecreditisclaimed.Anyamountofcreditthatarural
183183 8investorisprohibitedfromclaiminginataxableyearasaresultofthissectionmaybe
184184 9carriedforwardforuseinanyofthefivesubsequenttaxableyears,andshallnotbe
185185 10carriedbacktopriortaxableyears.Itistheintentofsections620.3500to620.3530that
186186 11aruralinvestorclaimingacreditundertheprovisionsofsections620.3500to620.3530
187187 12isnotrequiredtopayanyadditionaltaxthatmayariseasaresultofclaimingsuch
188188 13credit.
189189 14 2.Nocreditclaimedundertheprovisionsofsections620.3500to620.3530shall
190190 15berefundableorsellableontheopenmarket.Creditsearnedbyorallocatedtoa
191191 16partnership,limitedliabilitycompany,orScorporationmaybeallocatedtothe
192192 17partners,members,orshareholdersofsuchentityfortheirdirectuseinaccordance
193193 18withtheprovisionsofanyagreementamongsuchpartners,members,orshareholders,
194194 19andaruralfundshallnotifythedepartmentofthenamesoftheentitiesthatareeligible
195195 20toutilizecreditspursuanttoanallocationofcreditsorachangeinallocationofcredits,
196196 21orduetoatransferofacapitalinvestmentuponsuchallocation,change,ortransfer.
197197 22Suchallocationshallnotbeconsideredasaleforthepurposesofthissection.
198198 23 3.Thedepartmentmayrecapturecreditsfromataxpayerthatclaimedacredit
199199 24authorizedunderthissectionif:
200200 25 (1)Theruralfunddoesnotinvestsixtypercentofitscapitalinvestment
201201 26authorityinqualifiedinvestmentsinthisstatewithintwoyearsofthecreditallowance
202202 27date,andonehundredpercentofitscapitalinvestmentauthorityinqualified
203203 28investmentsinthisstatewithinthreeyearsofthecreditallowancedate,providedthat
204204 29atleastseventypercentofsuchinitialqualifiedinvestmentsshallbemadeineligible
205205 30businesseslocatedinruralareasoreligiblebusinessesthatarealsoagribusinesses;
206206 31 (2)Theruralfundfailstomaintainqualifiedinvestmentsequaltoninetypercent
207207 32ofitscapitalinvestmentauthorityfromthethirdanniversaryuntilthesixthanniversary
208208 33ofthecreditallowancedate,withseventypercentofsuchinvestmentsmaintainedin
209209 34eligiblebusinesseslocatedinruralareasoreligiblebusinessesthatarealso
210210 35agribusinesses.Foreachyeartheruralfundfailstomaintainsuchinvestments,the
211211 HB1885 6 36departmentmayrecaptureanamountofsuchyear'sallowedcreditsequaltothe
212212 37percentagedifferencebetweenninetypercentofaruralfund'scapitalinvestment
213213 38authorityandtheactualamountofqualifiedinvestmentsmaintainedforsuchyear.For
214214 39thepurposesofthissubdivision,aqualifiedinvestmentisconsideredmaintainedevenif
215215 40thequalifiedinvestmentwassoldorrepaidsolongastheruralfundreinvestsan
216216 41amountequaltothecapitalreturnedorrecoveredbytheruralfundfromtheoriginal
217217 42investment,exclusiveofanyprofitsrealized,inotherqualifiedinvestmentsinthisstate
218218 43withintwelvemonthsofthereceiptofsuchcapital.Amountsreceivedperiodicallybya
219219 44ruralfundshallbetreatedascontinuallyinvestedinqualifiedinvestmentsifthe
220220 45amountsarereinvestedinoneormorequalifiedinvestmentsbytheendofthefollowing
221221 46calendaryear.Aruralfundshallnotberequiredtoreinvestcapitalreturnedfrom
222222 47qualifiedinvestmentsafterthefifthanniversaryofthecreditallowancedate,andsuch
223223 48qualifiedinvestmentsshallbeconsideredheldcontinuouslybytheruralfundthrough
224224 49thesixthanniversaryofthecreditallowancedate;
225225 50 (3)Theruralfund,beforeexitingtheprograminaccordancewithsections
226226 51620.3500to620.3530orpriortothirtydaysafterthesixthanniversaryofthecredit
227227 52allowancedate,whicheverisearlier,makesadistributionorpaymentthatresultsinthe
228228 53ruralfundhavinglessthanonehundredpercentofitscapitalinvestmentauthority
229229 54investedinqualifiedinvestmentsinthisstateorheldincashorothermarketable
230230 55securities;or
231231 56 (4)Theruralfundviolatestheprovisionsofsection620.3525,inwhichcasethe
232232 57departmentmayrecaptureanamountequaltotheamountofaruralfund'scapital
233233 58investmentauthorityfoundtobeinviolationofsuchprovisions.
234234 59
235235 60Forthepurposesofmeetingandmaintainingtheobjectivesestablishedforinvestment
236236 61insubdivisions(1)and(2)ofthissubsection,aruralfund'squalifiedinvestmentsshall
237237 62bemultipliedbyafactorofoneandaquarterincountieswithlessthanthirtythousand
238238 63inhabitantsinpopulationandmorethanthirteenthousandinhabitantsinpopulation
239239 64andshallbemultipliedbyafactorofoneandone-halfincountieswithapopulationof
240240 65thirteenthousandinhabitantsorless.
241241 66 4.Recapturedcreditsandtherelatedcapitalinvestmentauthorityshallrevertto
242242 67thedepartmentandshallbereissuedproratatoapplicantswhosecapitalinvestment
243243 68allocationswerereducedinaccordancewiththeapplicationprocessprovidedunder
244244 69subsection4ofsection620.3510.
245245 70 5.Norecaptureshalloccuruntiltheruralfundhasbeengivennoticeof
246246 71noncomplianceandaffordedsixmonthsfromthedateofsuchnoticetocurethe
247247 72noncompliance.
248248 HB1885 7 620.3525.Noeligiblebusinessthatreceivesaqualifiedinvestmentunderthe
249249 2provisionsofsections620.3500to620.3530,oranyaffiliatesofsucheligiblebusinesses,
250250 3shalldirectlyorindirectly:
251251 4 (1)Ownorhavetherighttoacquireanownershipinterestinaruralfundor
252252 5memberoraffiliateofaruralfundincluding,butnotlimitedto,aholderofacapital
253253 6investmentissuedbytheruralfund;or
254254 7 (2)Loantoorinvestinaruralfundormemberoraffiliateofaruralfund
255255 8including,butnotlimitedto,aholderofacapitalinvestmentissuedbyaruralfund,
256256 9wheretheproceedsofsuchloanorinvestmentaredirectlyorindirectlyusedtofundor
257257 10refinancethepurchaseofacapitalinvestmentundersections620.3500to620.3530.
258258 620.3530.1.Ruralfundsshallsubmitareporttothedepartmentwithinthefirst
259259 2fifteenbusinessdaysafterthesecondandthirdanniversariesoftheinitialcredit
260260 3allowancedate.Thereportfollowingthesecondanniversaryshallprovide
261261 4documentationastotheinvestmentofsixtypercentofthepurchasepriceofsuch
262262 5capitalinvestmentinqualifiedinvestments.Thereportfollowingthethirdanniversary
263263 6shallprovidedocumentationastotheinvestmentofonehundredpercentofthe
264264 7purchasepriceofsuchcapitalinvestmentinqualifiedinvestments.Unlesspreviously
265265 8reportedunderthissubsection,suchreportsshallalsoinclude:
266266 9 (1)Thenameandlocationofeacheligiblebusinessreceivingaqualified
267267 10investment;
268268 11 (2)Bankstatementsofsuchruralfundevidencingeachqualifiedinvestment;
269269 12 (3)Acopyofthewrittenopinionofthedepartment,asprovidedinsubsection3
270270 13ofsection620.3515,orevidencethatsuchbusinesswasaneligiblebusinessatthetimeof
271271 14suchqualifiedinvestment,asapplicable;
272272 15 (4)Thenumberofjobscreatedandjobsretainedresultingfromeachqualified
273273 16investment;
274274 17 (5)Theaverageannualsalaryofpositionsdescribedinsubdivision(4)ofthis
275275 18subsection;and
276276 19 (6)Suchotherinformationasrequiredbythedepartment.
277277 20 2.Forallsubsequentyears,ruralfundsshallsubmitanannualreporttothe
278278 21departmentwithinninetydaysofthebeginningofthecalendaryearduringthe
279279 22complianceperiod.Thereportshallinclude,butisnotlimitedto,thefollowing:
280280 23 (1)Thenumberofjobscreatedandjobsretainedasaresultofqualified
281281 24investments;
282282 25 (2)Theaverageannualsalaryofpositionsdescribedinsubdivision(1)ofthis
283283 26subsection;and
284284 27 (3)Suchotherinformationasrequiredbythedepartment.
285285 HB1885 8 28 3.Theprogramauthorizedundersections620.3500to620.3530shallbe
286286 29consideredabusinessrecruitmenttaxcreditundersubdivision(4)ofsubsection2of
287287 30section135.800,andanyruralfundapprovedunderthisprogramshallbesubjecttothe
288288 31provisionsofsections135.800to135.830.
289289 32 4.Onorafterthesixthanniversaryofthecreditallowancedate,aruralfund
290290 33mayapplytothedepartmenttoexittheprogramandnolongerbesubjecttoregulation
291291 34undertheprovisionsofsections620.3500to620.3530.Thedepartmentshallrespondto
292292 35theexitapplicationwithinfifteendaysofreceipt.Inevaluatingtheexitapplication,the
293293 36factthatnocreditshavebeenrecapturedandthattheruralfundhasnotreceiveda
294294 37noticeofrecapturethathasnotbeencuredundersubsection5ofsection620.3520shall
295295 38besufficientevidencetoprovethattheruralfundiseligibleforexit.Thedepartment
296296 39shallnotunreasonablydenyanexitapplicationsubmittedunderthissubsection.Ifthe
297297 40exitapplicationisdenied,thenoticeshallincludethereasonsforsuchdetermination.
298298 41 5.Atthetimearuralfundexitstheprogram,itshallbesubjecttothefollowing
299299 42penaltiesifprojectedjobcreationmetricsarenotachieved:
300300 43 (1)Ifsixtypercentorlessoftheprojectedjobsintheruralfund'sapproved
301301 44businessplanareachieved,theruralfundshallpaythestateapenaltypaymentofcash
302302 45inanamountequaltotenpercentofthetotaltaxcreditsdistributedtotheruralfund;
303303 46or
304304 47 (2)Ifmorethansixtypercentbutlessthaneightypercentoftheprojectedjobs
305305 48intheruralfund'sapprovedbusinessplanareachieved,theruralfundshallpaythe
306306 49stateapenaltypaymentofcashinanamountequaltofivepercentofthetotaltaxcredits
307307 50distributedtotheruralfund.
308308 51 6.Thedepartmentshallnotacceptanynewapplicationsfortaxcreditsunder
309309 52sections620.3500to620.3530afterDecember31,2032.
310310 53 7.Thedepartmentmayadoptsuchrules,statementsofpolicy,procedures,
311311 54forms,andguidelinesasmaybenecessarytocarryouttheprovisionsofsections
312312 55620.3500to620.3530.Anyruleorportionofarule,asthattermisdefinedinsection
313313 56536.010,thatiscreatedundertheauthoritydelegatedinthissectionshallbecome
314314 57effectiveonlyifitcomplieswithandissubjecttoalloftheprovisionsofchapter536and,
315315 58ifapplicable,section536.028.Thissectionandchapter536arenonseverable,andifany
316316 59ofthepowersvestedwiththegeneralassemblypursuanttochapter536toreview,to
317317 60delaytheeffectivedate,ortodisapproveandannularulearesubsequentlyheld
318318 61unconstitutional,thenthegrantofrulemakingauthorityandanyruleproposedor
319319 62adoptedafterAugust28,2022,shallbeinvalidandvoid.
320320 âś”
321321 HB1885 9