SECONDREGULARSESSION
HOUSEBILLNO.2435
101STGENERALASSEMBLY
INTRODUCEDBYREPRESENTATIVESMITH(155).
4924H.01I DANARADEMANMILLER,ChiefClerk
ANACT
Torepealsection620.2020,RSMo,andtoenactinlieuthereofonenewsectionrelatingtothe
Missouriworksprogram.
BeitenactedbytheGeneralAssemblyofthestateofMissouri,asfollows:
SectionA.Section620.2020,RSMo,isrepealedandonenewsectionenactedinlieu
2thereof,tobeknownassection620.2020,toreadasfollows:
620.2020.1.Thedepartmentshallrespondtoawrittenrequest,byoronbehalfofa
2qualifiedcompanyorqualifiedmilitaryproject,foraproposedbenefitawardunderthe
3provisionsofthisprogramwithinfivebusinessdaysofreceiptofsuchrequest.The
4departmentshallrespondtoawrittenrequest,byoronbehalfofaqualifiedmanufacturing
5company,foraproposedbenefitawardundertheprovisionsofthisprogramwithinfifteen
6businessdaysofreceiptofsuchrequest.Suchresponseshallcontaineitheraproposalof
7benefitsforthequalifiedcompanyorqualifiedmilitaryproject,orawrittenresponserefusing
8toprovidesuchaproposalandstatingthereasonsforsuchrefusal.Aqualifiedcompanyor
9qualifiedmilitaryprojectthatintendstoseekbenefitsundertheprogramshallsubmittothe
10departmentanoticeofintent.Thedepartmentshallrespondwithinthirtydaystoanoticeof
11intentwithanapprovalorarejection,providedthatthedepartmentmaywithholdapprovalor
12provideacontingentapprovaluntilitissatisfiedthatproperdocumentationofeligibilityhas
13beenprovided.Thedepartmentshallcertifyorrejectthequalifyingcompany'splanoutlined
14intheirnoticeofintentassatisfyinggoodfaitheffortsmadetoemploy,ataminimum,
15commensuratewiththepercentageofminoritypopulationsinthestateofMissouri,as
16reportedinthepreviousdecennialcensus,thefollowing:racialminorities,contractorswho
17areracialminorities,andcontractorsthat,inturn,employataminimumracialminorities
EXPLANATION—Matterenclosedinbold-facedbrackets[thus] intheabovebillisnotenactedandis
intendedtobeomittedfromthelaw.Matterinbold-facetypeintheabovebillisproposedlanguage. 18commensuratewiththepercentageofminoritypopulationsinthestateofMissouri,as
19reportedinthepreviousdecennialcensus.Failuretorespondonbehalfofthedepartment
20shallresultinthenoticeofintentbeingdeemedapproved.Aqualifiedcompanyreceiving
21approvalforprogrambenefitsmayreceiveadditionalbenefitsforsubsequentnewjobsatthe
22samefacilityafterthefullinitialprojectperiodiftheapplicableminimumjobrequirements
23aremet.Thereshallbenolimitonthenumberofprojectperiodsaqualifiedcompanymay
24participateintheprogram,andaqualifiedcompanymayelecttofileanoticeofintentto
25beginanewprojectperiodconcurrentwithanexistingprojectperiodiftheapplicable
26minimumjobrequirementsareachieved,thequalifiedcompanyprovidesthedepartmentwith
27therequiredannualreporting,andthequalifiedcompanyisincompliancewiththisprogram
28andanyotherstateprogramsinwhichthequalifiedcompanyiscurrentlyorhaspreviously
29participated.However,thequalifiedcompanyshallnotreceiveanyfurtherprogrambenefits
30undertheoriginalapprovalforanynewjobscreatedafterthedateofthenewnoticeofintent,
31andanyjobscreatedbeforethenewnoticeofintentshallnotbeincludedasnewjobsfor
32purposesofthebenefitcalculationforthenewapproval.Whenaqualifiedcompanyhasfiled
33andreceivedapprovalofanoticeofintentandsubsequentlyfilesanothernoticeofintent,the
34departmentshallapplythedefinitionofprojectfacilityundersubdivision(24)ofsection
35620.2005tothenewnoticeofintentaswellasallpreviouslyapprovednoticesofintentand
36shalldeterminetheapplicationofthedefinitionsofnewjob,newpayroll,projectfacilitybase
37employment,andprojectfacilitybasepayrollaccordingly.
38 2.Notwithstandinganyprovisionoflawtothecontrary,thebenefitsavailabletothe
39qualifiedcompanyunderanyotherstateprogramsforwhichthecompanyiseligibleand
40whichutilizewithholdingtaxfromtheneworretainedjobsofthecompanyshallfirstbe
41creditedtotheotherstateprogrambeforethewithholdingretentionlevelapplicableunderthis
42programwillbegintoaccrue.Ifanyqualifiedcompanyalsoparticipatesinajobtraining
43programutilizingwithholdingtax,thecompanyshallretainnowithholdingtaxunderthis
44program,butthedepartmentshallissuearefundabletaxcreditforthefullamountofbenefit
45allowedunderthisprogram.Thecalendaryearannualmaximumamountoftaxcreditswhich
46maybeissuedtoaqualifyingcompanythatalsoparticipatesinajobtrainingprogramshallbe
47increasedbyanamountequivalenttothewithholdingtaxretainedbythatcompanyundera
48jobstrainingprogram.
49 3.Aqualifiedcompanyorqualifiedmilitaryprojectreceivingbenefitsunderthis
50programshallprovideanannualreportofthenumberofjobs,alongwithminorityjobs
51createdorretained,andsuchotherinformationasmayberequiredbythedepartmentto
52documentthebasisforprogrambenefitsavailablenolaterthanninetydayspriortotheendof
53thequalifiedcompany'sorindustrialdevelopmentauthority'staxyearimmediatelyfollowing
54thetaxyearforwhichthebenefitsprovidedundertheprogramareattributed.Insuchannual
HB2435 2 55report,iftheaveragewageisbelowtheapplicablepercentageofthecountyaveragewage,the
56qualifiedcompanyorqualifiedmilitaryprojecthasnotmaintainedtheemployeeinsuranceas
57required,ifthedepartmentafterareviewdeterminesthequalifyingcompanyfailstosatisfy
58otheraspectsoftheirnoticeofintent,includingfailuretomakegoodfaitheffortstoemploy,
59ataminimum,commensuratewiththepercentageofminoritypopulationsinthestateof
60Missouri,asreportedinthepreviousdecennialcensus,thefollowing:racialminorities,
61contractorswhoareracialminorities,andcontractorsthat,inturn,employataminimum
62racialminoritiescommensuratewiththepercentageofminoritypopulationsinthestateof
63Missouri,asreportedinthepreviousdecennialcensus,orifthenumberofjobsisbelowthe
64numberrequired,thequalifiedcompanyorqualifiedmilitaryprojectshallnotreceivetax
65creditsorretainthewithholdingtaxforthebalanceoftheprojectperiod.Ifastatewidestate
66ofemergencyexistsformorethansixteenmonthsandduringaqualifiedcompany’sor
67industrialdevelopmentauthority’staxyearandifthenumberofjobsreportedisbelow
68thenumberrequiredforsuchyear,thequalifiedcompanyorqualifiedmilitaryproject
69shallnotbeprohibitedfromreceivingtaxcreditsorretainingthewithholdingtax,or
70bothifapplicable,forthebalanceoftheprojectperiodsolelyonthebasisofthenumber
71ofjobsifallotherprogramrequirementsaremet.Failuretotimelyfiletheannualreport
72requiredunderthissectionshallresultintheforfeitureoftaxcreditsattributabletotheyear
73forwhichthereportingwasrequiredandarecaptureofwithholdingtaxesretainedbythe
74qualifiedcompanyorqualifiedmilitaryprojectduringsuchyear.
75 4.Thedepartmentmaywithholdtheapprovalofanybenefitsunderthisprogramuntil
76itissatisfiedthatproperdocumentationhasbeenprovided,andshallreducethebenefitsto
77reflectanyreductioninfull-timeemployeesorpayroll.Uponapprovalbythedepartment,the
78qualifiedcompanymaybegintheretentionofthewithholdingtaxeswhenitreachesthe
79requirednumberofjobsandtheaveragewagemeetsorexceedstheapplicablepercentageof
80countyaveragewage.Taxcredits,ifany,maybeissueduponsatisfactionbythedepartment
81thatthequalifiedcompanyhasexceededtheapplicablepercentageofcountyaveragewage
82andtherequirednumberofjobs;providedthat,taxcreditsawardedundersubsection7of
83section620.2010maybeissuedfollowingthequalifiedcompany'sacceptanceofthe
84department'sproposalandpursuanttotherequirementssetforthinthewrittenagreement
85betweenthedepartmentandthequalifiedcompanyundersubsection4ofsection620.2010.
86 5.Anyqualifiedcompanyorqualifiedmilitaryprojectapprovedforbenefitsunder
87thisprogramshallprovidetothedepartment,uponrequest,anyandallinformationand
88recordsreasonablyrequiredtomonitorcompliancewithprogramrequirements.This
89programshallbeconsideredabusinessrecruitmenttaxcreditundersubdivision(4)of
90subsection2ofsection135.800,andanyqualifiedcompanyorqualifiedmilitaryproject
HB2435 3 91approvedforbenefitsunderthisprogramshallbesubjecttotheprovisionsofsections
92135.800to135.830.
93 6.Anytaxpayerwhoisawardedbenefitsunderthisprogramwhoknowinglyhires
94individualswhoarenotallowedtoworklegallyintheUnitedStatesshallimmediatelyforfeit
95suchbenefitsandshallrepaythestateanamountequaltoanystatetaxcreditsalready
96redeemedandanywithholdingtaxesalreadyretained.
97 7.(1)Themaximumamountoftaxcreditsthatmaybeauthorizedunderthisprogram
98foranyfiscalyearshallbelimitedasfollows,lesstheamountofanytaxcreditspreviously
99obligatedforthatfiscalyearunderanyofthetaxcreditprogramsreferencedinsubsection14
100ofthissection:
101 (a)ForthefiscalyearbeginningonJuly1,2013,butendingonorbeforeJune30,
1022014,nomorethanonehundredsixmilliondollarsintaxcreditsmaybeauthorized;
103 (b)ForthefiscalyearbeginningonJuly1,2014,butendingonorbeforeJune30,
1042015,nomorethanonehundredelevenmilliondollarsintaxcreditsmaybeauthorized;
105 (c)ForfiscalyearsbeginningonorafterJuly1,2015,butendingonorbeforeJune
10630,2020,nomorethanonehundredsixteenmilliondollarsintaxcreditsmaybeauthorized
107foreachfiscalyear;and
108 (d)ForallfiscalyearsbeginningonorafterJuly1,2020,nomorethanonehundred
109sixmilliondollarsintaxcreditsmaybeauthorizedforeachfiscalyear.Theprovisionsofthis
110paragraphshallnotapplytotaxcreditsissuedtoqualifiedcompaniesunderanoticeofintent
111filedpriortoJuly1,2020.
112 (2)ForallfiscalyearsbeginningonorafterJuly1,2020,inadditiontotheamountof
113taxcreditsthatmaybeauthorizedunderparagraph(d)ofsubdivision(1)ofthissubsection,
114anadditionaltenmilliondollarsintaxcreditsmaybeauthorizedforeachfiscalyearforthe
115purposeofthecompletionofinfrastructureprojectsdirectlyconnectedwiththecreationor
116retentionofjobsundertheprovisionsofsections620.2000to620.2020andanadditionalten
117milliondollarsintaxcreditsmaybeauthorizedforeachfiscalyearforaqualified
118manufacturingcompanybasedonamanufacturingcapitalinvestmentassetforthinsection
119620.2010.
120 8.ForallfiscalyearsbeginningonorafterJuly1,2020,themaximumtotalamount
121ofwithholdingtaxthatmaybeauthorizedforretentionforthecreationofnewjobsunderthe
122provisionsofsections620.2000to620.2020byqualifiedcompanieswithaprojectfacility
123baseemploymentofatleastfiftyshallnotexceedseventy-fivemilliondollarsforeachfiscal
124year.Theprovisionsofthissubsectionshallnotapplytowithholdingtaxauthorizedfor
125retentionforthecreationofnewjobsbyqualifiedcompanieswithaprojectfacilitybase
126employmentoflessthanfifty.
HB2435 4 127 9.Fortaxcreditsforthecreationofnewjobsundersection620.2010,thedepartment
128shallallocatetheannualtaxcreditsbasedonthedateoftheapproval,reservingsuchtax
129creditsbasedonthedepartment'sbestestimateofnewjobsandnewpayrolloftheproject,
130andanyotherapplicablefactorsindeterminingtheamountofbenefitsavailabletothe
131qualifiedcompanyorqualifiedmilitaryprojectunderthisprogram;providedthat,the
132departmentmayreserveuptotwenty-oneandone-halfpercentofthemaximumannual
133amountoftaxcreditsthatmaybeauthorizedundersubsection7ofthissectionforaward
134undersubsection7ofsection620.2010.However,theannualissuanceoftaxcreditsshallbe
135subjecttoannualverificationofactualpayrollbythedepartmentor,forqualifiedmilitary
136projects,annualverificationofaveragesalaryforthejobsdirectlycreatedbythequalified
137militaryproject.Anyauthorizationoftaxcreditsshallexpireif,withintwoyearsfromthe
138dateofcommencementofoperations,orapprovalifapplicable,thequalifiedcompanyhas
139failedtomeettheapplicableminimumjobrequirements.Thequalifiedcompanymayretain
140authorizedamountsfromthewithholdingtaxundertheprojectoncetheapplicableminimum
141jobrequirementshavebeenmetforthedurationoftheprojectperiod.Nobenefitsshallbe
142providedunderthisprogramuntilthequalifiedcompanyorqualifiedmilitaryprojectmeets
143theapplicableminimumnewjobrequirementsor,forbenefitsawardedundersubsection7of
144section620.2010,untilthequalifiedcompanyhassatisfiedtherequirementssetforthinthe
145writtenagreementbetweenthedepartmentandthequalifiedcompanyundersubsection4of
146section620.2010.Intheeventthequalifiedcompanyorqualifiedmilitaryprojectdoesnot
147meettheapplicableminimumnewjobrequirements,thequalifiedcompanyorqualified
148militaryprojectmaysubmitanewnoticeofintentorthedepartmentmayprovideanew
149approvalforanewprojectofthequalifiedcompanyorqualifiedmilitaryprojectattheproject
150facilityorotherfacilities.
151 10.Taxcreditsprovidedunderthisprogrammaybeclaimedagainsttaxesotherwise
152imposedbychapters143and148,andmaynotbecarriedforward,butshallbeclaimed
153withinoneyearofthecloseofthetaxableyearforwhichtheywereissued.Taxcredits
154providedunderthisprogrammaybetransferred,sold,orassignedbyfilinganotarized
155endorsementthereofwiththedepartmentthatnamesthetransferee,theamountoftaxcredit
156transferred,andthevaluereceivedforthecredit,aswellasanyotherinformationreasonably
157requestedbythedepartment.Foraqualifiedcompanywithflow-throughtaxtreatmenttoits
158members,partners,orshareholders,thetaxcreditshallbeallowedtomembers,partners,or
159shareholdersinproportiontotheirshareofownershiponthelastdayofthequalified
160company'staxperiod.
161 11.Priortotheissuanceoftaxcreditsorthequalifiedcompanybeginningtoretain
162withholdingtaxes,thedepartmentshallverifythroughthedepartmentofrevenueandany
163otherapplicablestatedepartmentthatthetaxcreditapplicantdoesnotoweanydelinquent
HB2435 5 164income,sales,orusetaxorinterestorpenaltiesonsuchtaxes,oranydelinquentfeesor
165assessmentsleviedbyanystatedepartmentandthroughthedepartmentofcommerceand
166insurancethattheapplicantdoesnotoweanydelinquentinsurancetaxesorotherfees.Such
167delinquencyshallnotaffecttheapproval,exceptthatanytaxcreditsissuedshallbefirst
168appliedtothedelinquencyandanyamountissuedshallbereducedbytheapplicant'stax
169delinquency.Ifthedepartmentofrevenue,thedepartmentofcommerceandinsurance,orany
170otherstatedepartmentconcludesthatataxpayerisdelinquentafterJunefifteenthbutbefore
171Julyfirstofanyyearandtheapplicationoftaxcreditstosuchdelinquencycausesatax
172deficiencyonbehalfofthetaxpayertoarise,thenthetaxpayershallbegrantedthirtydaysto
173satisfythedeficiencyinwhichinterest,penalties,andadditionstotaxshallbetolled.After
174applyingallavailablecreditstowardataxdelinquency,theadministeringagencyshallnotify
175theappropriatedepartmentandthatdepartmentshallupdatetheamountofoutstanding
176delinquenttaxowedbytheapplicant.Ifanycreditsremainaftersatisfyingallinsurance,
177income,sales,andusetaxdelinquencies,theremainingcreditsshallbeissuedtothe
178applicant,subjecttotherestrictionsofotherprovisionsoflaw.
179 12.Thedirectorofrevenueshallissuearefundtothequalifiedcompanytotheextent
180thattheamountoftaxcreditsallowedunderthisprogramexceedstheamountofthequalified
181company'staxliabilityunderchapter143or148.
182 13.Anemployeeofaqualifiedcompanyshallreceivefullcreditfortheamountoftax
183withheldasprovidedinsection143.211.
184 14.Notwithstandinganyprovisionoflawtothecontrary,beginningAugust28,2013,
185nonewbenefitsshallbeauthorizedforanyprojectthathadnotreceivedfromthedepartment
186aproposalorapprovalforsuchbenefitspriortoAugust28,2013,underthedevelopmenttax
187creditprogramcreatedundersections32.100to32.125,therebuildingcommunitiestaxcredit
188programcreatedundersection135.535,theenhancedenterprisezonetaxcreditprogram
189createdundersections135.950to135.973,andtheMissouriqualityjobsprogramcreated
190undersections620.1875to620.1890.Theprovisionsofthissubsectionshallnotbe
191construedtolimitorimpairtheabilityofanyadministeringagencytoauthorizeorissue
192benefitsforanyprojectthathadreceivedanapprovaloraproposalfromthedepartmentunder
193anyoftheprogramsreferencedinthissubsectionpriortoAugust28,2013,ortheabilityof
194anytaxpayertoredeemanysuchtaxcreditsortoretainanywithholdingtaxunderan
195approvalissuedpriortothatdate.Theprovisionsofthissubsectionshallnotbeconstruedto
196limitorinanywayimpairtheabilityofanygoverningauthoritytoprovideanylocal
197abatementordesignateanewzoneundertheenhancedenterprisezoneprogramcreatedby
198sections135.950to135.963.Notwithstandinganyprovisionoflawtothecontrary,no
199qualifiedcompanythatisawardedbenefitsunderthisprogramshall:
HB2435 6 200 (1)Simultaneouslyreceivebenefitsundertheprogramsreferencedinthissubsection
201atthesamecapitalinvestment;or
202 (2)Receivebenefitsundertheprovisionsofsection620.1910forthesamejobs.
203 15.Ifanyprovisionofsections620.2000to620.2020orapplicationthereoftoany
204personorcircumstanceisheldinvalid,theinvalidityshallnotaffectotherprovisionsor
205applicationofthesesectionswhichcanbegiveneffectwithouttheinvalidprovisionsor
206application,andtothisend,theprovisionsofsections620.2000to620.2020arehereby
207declaredseverable.
208 16.BynolaterthanJanuary1,2014,andthefirstdayofeachcalendarquarter
209thereafter,thedepartmentshallpresentaquarterlyreporttothegeneralassemblydetailingthe
210benefitsauthorizedunderthisprogramduringtheimmediatelyprecedingcalendarquarterto
211theextentsuchinformationmaybedisclosedunderstateandfederallaw.Thereportshall
212include,ataminimum:
213 (1)Alistofallapprovedanddisapprovedapplicantsforeachtaxcredit;
214 (2)Alistoftheaggregateamountofneworretainedjobsthataredirectlyattributable
215tothetaxcreditsauthorized;
216 (3)Astatementoftheaggregateamountofnewcapitalinvestmentdirectly
217attributabletothetaxcreditsauthorized;
218 (4)Documentationoftheestimatednetstatefiscalbenefitforeachauthorizedproject
219and,totheextentavailable,theactualbenefitrealizeduponcompletionofsuchprojector
220activity;and
221 (5)Thedepartment'sresponsetimeforeachrequestforaproposedbenefitaward
222underthisprogram.
223 17.Thedepartmentmayadoptsuchrules,statementsofpolicy,procedures,forms,
224andguidelinesasmaybenecessarytocarryouttheprovisionsofsections620.2000to
225620.2020.Anyruleorportionofarule,asthattermisdefinedinsection536.010,thatis
226createdundertheauthoritydelegatedinthissectionshallbecomeeffectiveonlyifitcomplies
227withandissubjecttoalloftheprovisionsofchapter536and,ifapplicable,section536.028.
228Thissectionandchapter536arenonseverableandifanyofthepowersvestedwiththe
229generalassemblypursuanttochapter536toreview,todelaytheeffectivedate,orto
230disapproveandannularulearesubsequentlyheldunconstitutional,thenthegrantof
231rulemakingauthorityandanyruleproposedoradoptedafterAugust28,2013,shallbeinvalid
232andvoid.
233 18.Undersection23.253oftheMissourisunsetact:
234 (1)Theprovisionsoftheprogramauthorizedundersections620.2000to620.2020
235shallbereauthorizedasofAugust28,2018,andshallexpireonAugust28,2030;and
HB2435 7 236 (2)Ifsuchprogramisreauthorized,theprogramauthorizedunderthissectionshall
237automaticallysunsettwelveyearsaftertheeffectivedateofthereauthorizationofsections
238620.2000to620.2020;and
239 (3)Sections620.2000to620.2020shallterminateonSeptemberfirstofthecalendar
240yearimmediatelyfollowingthecalendaryearinwhichtheprogramauthorizedundersections
241620.2000to620.2020issunset.
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HB2435 8