FIRSTREGULARSESSION
HOUSEBILLNO.681
102NDGENERALASSEMBLY
INTRODUCEDBYREPRESENTATIVEWILSON.
1603H.01I DANARADEMANMILLER,ChiefClerk
ANACT
Torepealsection620.2005,RSMo,andtoenactinlieuthereofonenewsectionrelatingtothe
Missouriworksprogram.
BeitenactedbytheGeneralAssemblyofthestateofMissouri,asfollows:
SectionA.Section620.2005,RSMo,isrepealedandonenewsectionenactedinlieu
2thereof,tobeknownassection620.2005,toreadasfollows:
620.2005.1.Asusedinsections620.2000to620.2020,thefollowingtermsmean:
2 (1)"Averagewage",thenewpayrolldividedbythenumberofnewjobs,orthe
3payrolloftheretainedjobsdividedbythenumberofretainedjobs;
4 (2)"Commencementofoperations",thestartingdateforthequalifiedcompany'sfirst
5newemployee,whichshallbenolaterthantwelvemonthsfromthedateoftheapproval;
6 (3)"Contractor",aperson,employer,orbusinessentitythatentersintoanagreement
7toperformanyserviceorworkortoprovideacertainproductinexchangeforvaluable
8consideration.Thisdefinitionshallincludebutnotbelimitedtoageneralcontractor,
9subcontractor,independentcontractor,contractemployee,projectmanager,orarecruitingor
10staffingentity;
11 (4)"Countyaveragewage",theaveragewagesineachcountyasdeterminedbythe
12departmentforthemostrecentlycompletedfullcalendaryear.However,ifthecomputed
13countyaveragewageisabovethestatewideaveragewage,thestatewideaveragewageshall
14bedeemedthecountyaveragewageforsuchcountyforthepurposeofdeterminingeligibility.
15Thedepartmentshallpublishthecountyaveragewageforeachcountyatleastannually.
16Notwithstandingtheprovisionsofthissubdivisiontothecontrary,foranyqualifiedcompany
17thatinconjunctionwiththeirprojectisrelocatingemployeesfromaMissouricountywitha
EXPLANATION—Matterenclosedinbold-facedbrackets[thus] intheabovebillisnotenactedandis
intendedtobeomittedfromthelaw.Matterinbold-facetypeintheabovebillisproposedlanguage. 18highercountyaveragewage,thecompanyshallobtaintheendorsementofthegoverningbody
19ofthecommunityfromwhichjobsarebeingrelocatedorthecountyaveragewagefortheir
20projectshallbethecountyaveragewageforthecountyfromwhichtheemployeesarebeing
21relocated;
22 (5)"Department",theMissouridepartmentofeconomicdevelopment;
23 (6)"Director",thedirectorofthedepartmentofeconomicdevelopment;
24 (7)"Employee",apersonemployedbyaqualifiedcompany,excluding:
25 (a)Ownersofthequalifiedcompanyunlessthequalifiedcompanyisparticipatingin
26anemployeestockownershipplan;or
27 (b)Ownersofanoncontrollinginterestinstockofaqualifiedcompanythatis
28publiclytraded;
29 (8)"ExistingMissouribusiness",aqualifiedcompanythat,fortheten-yearperiod
30precedingsubmissionofanoticeofintenttothedepartment,hadaphysicallocationin
31Missouriandfull-timeemployeeswhoroutinelyperformedjobdutieswithinMissouri;
32 (9)"Full-timeemployee",anemployeeofthequalifiedcompanythatisscheduledto
33workanaverageofatleastthirty-fivehoursperweekforatwelve-monthperiod,andonefor
34whichthequalifiedcompanyoffershealthinsuranceandpaysatleastfiftypercentofsuch
35insurancepremiums.Anemployeethatspendslessthanfiftypercentoftheemployee'swork
36timeatthefacilityshallbeconsideredtobelocatedatafacilityiftheemployeereceiveshis
37orherdirectionsandcontrolfromthatfacility,isonthefacility'spayroll,onehundredpercent
38oftheemployee'sincomefromsuchemploymentisMissouriincome,andtheemployeeis
39paidatorabovetheapplicablepercentageofthecountyaveragewage;
40 (10)"Industrialdevelopmentauthority",anindustrialdevelopmentauthority
41organizedunderchapter349thathasenteredintoaformalwrittenmemorandumof
42understandingwithanentityoftheUnitedStatesDepartmentofDefenseregardinga
43qualifiedmilitaryproject;
44 (11)"Infrastructureprojects",highways,roads,streets,bridges,sewers,trafficcontrol
45systemsanddevices,waterdistributionandsupplysystems,curbing,sidewalks,stormwater
46anddrainagesystems,broadbandinternetinfrastructure,andanyothersimilarpublic
47improvements,butinnocaseshallinfrastructureprojectsincludeprivatestructures;
48 (12)"Localincentives",thepresentvalueofthedollaramountofdirectbenefit
49receivedbyaqualifiedcompanyforaprojectfacilityfromoneormorelocalpolitical
50subdivisions,butthistermshallnotincludeloansorotherfundsprovidedtothequalified
51companythatshallberepaidbythequalifiedcompanytothepoliticalsubdivision;
52 (13)"Manufacturingcapitalinvestment",expendituresmadebyaqualified
53manufacturingcompanytoretoolorreconfigureamanufacturingprojectfacilitydirectly
HB681 2 54relatedtothemanufacturingofanewproductortheexpansionormodificationofthe
55manufactureofanexistingproduct;
56 (14)"Memorandumofunderstanding",anagreementexecutedbyanindustrial
57developmentauthorityandanentityoftheUnitedStatesDepartmentofDefense,acopyof
58whichisprovidedtothedepartmentofeconomicdevelopment,thatstates,butisnotlimited
59to:
60 (a)Arequirementforthemilitarytoprovidethetotalnumberofexistingjobs,jobs
61directlycreatedbyaqualifiedmilitaryproject,andaveragesalariesofsuchjobstothe
62industrialdevelopmentauthorityandthedepartmentofeconomicdevelopmentannuallyfor
63thetermofthebenefit;
64 (b)Arequirementforthemilitarytoprovideanaccountingoftheexpendituresof
65capitalinvestmentmadebythemilitarydirectlyrelatedtothequalifiedmilitaryprojecttothe
66industrialdevelopmentauthorityandthedepartmentofeconomicdevelopmentannuallyfor
67thetermofthebenefit;
68 (c)Theprocessbywhichtheindustrialdevelopmentauthorityshallmonetizethetax
69creditsannuallyandanytransactioncostoradministrativefeechargedbytheindustrial
70developmentauthoritytothemilitaryonanannualbasis;
71 (d)Arequirementfortheindustrialdevelopmentauthoritytoprovideprooftothe
72departmentofeconomicdevelopmentofthepaymentmadetothequalifiedmilitaryproject
73annually,includingtheamountofsuchpayment;
74 (e)Thescheduleofthemaximumamountoftaxcreditswhichmaybeauthorizedin
75eachyearfortheprojectandthespecifiedtermofthebenefit,asprovidedbythedepartment
76ofeconomicdevelopment;and
77 (f)Arequirementthattheannualbenefitpaidshallbethelesserof:
78 a.Themaximumamountoftaxcreditsauthorized;or
79 b.Theactualcalculatedbenefitderivedfromthenumberofnewjobsandaverage
80salaries;
81 (15)"NAICS"or"NAICSindustryclassification",theclassificationprovidedbythe
82mostrecenteditionoftheNorthAmericanIndustryClassificationSystemaspreparedbythe
83ExecutiveOfficeofthePresident,OfficeofManagementandBudget;
84 (16)"Newcapitalinvestment",shallincludecostsincurredbythequalifiedcompany
85attheprojectfacilityafteracceptancebythequalifiedcompanyoftheproposalforbenefits
86fromthedepartmentortheapprovalnoticeofintent,whicheveroccursfirst,forrealor
87personalproperty,andmayincludethevalueoffinanceorcapitalleasesforrealorpersonal
88propertyforthetermofsuchleaseattheprojectfacilityexecutedafteracceptancebythe
89qualifiedcompanyoftheproposalforbenefitsfromthedepartmentortheapprovalofthe
90noticeofintent;
HB681 3 91 (17)"Newdirectlocalrevenue",thepresentvalueofthedollaramountofdirectnet
92newtaxrevenuesofthelocalpoliticalsubdivisionslikelytobeproducedbytheprojectovera
93ten-yearperiodascalculatedbythedepartment,excludinglocalearningstax,andnetnew
94utilityrevenues,providedthelocalincentivesincludeadiscountorotherdirectincentives
95fromutilitiesownedoroperatedbythepoliticalsubdivision;
96 (18)"Newjob",thenumberoffull-timeemployeeslocatedattheprojectfacilitythat
97exceedstheprojectfacilitybaseemploymentlessanydecreaseinthenumberoffull-time
98employeesatrelatedfacilitiesbelowtherelatedfacilitybaseemployment.Nojobthatwas
99createdpriortothedateofthenoticeofintentshallbedeemedanewjob;
100 (19)"Newpayroll",theamountofwagespaidforallnewjobs,locatedattheproject
101facilityduringthequalifiedcompany'staxyearthatexceedstheprojectfacilitybasepayroll;
102 (20)"Newproduct",anewmodelorlineofamanufacturedgoodthathasnotbeen
103manufacturedinMissouribyaqualifiedmanufacturingcompanyatanytimepriortothedate
104ofthenoticeofintent,oranexistingbrand,model,orlineofamanufacturedgoodthatis
105redesigned;
106 (21)"Noticeofintent",aformdevelopedbythedepartmentandavailableonline,
107completedbythequalifiedcompany,andsubmittedtothedepartmentstatingthequalified
108company'sintenttorequestbenefitsunderthisprogram.Thenoticeofintentshallbe
109accompaniedwithadetailedplanbythequalifyingcompanytomakegoodfaitheffortsto
110employ,ataminimum,commensuratewiththepercentageofminoritypopulationsinthestate
111ofMissouri,asreportedinthepreviousdecennialcensus,thefollowing:racialminorities,
112contractorswhoareracialminorities,andcontractorsthat,inturn,employataminimum
113racialminoritiescommensuratewiththepercentageofminoritypopulationsinthestateof
114Missouri,asreportedinthepreviousdecennialcensus.Ataminimum,suchplanshall
115includemonitoringtheeffectivenessofoutreachandrecruitmentstrategiesinattracting
116diverseapplicantsandlinkingwithdifferentoradditionalreferralsourcesintheeventthat
117recruitmenteffortsfailtoproduceadiversepipelineofapplicants;
118 (22)"Percentoflocalincentives",theamountoflocalincentivesdividedbythe
119amountofnewdirectlocalrevenue;
120 (23)"Program",theMissouriworksprogramestablishedinsections620.2000to
121620.2020;
122 (24)"Projectfacility",thebuildingorbuildingsusedbyaqualifiedcompanyatwhich
123neworretainedjobsandanynewcapitalinvestmentareorwillbelocatedorbyaqualified
124manufacturingcompanyatwhichamanufacturingcapitalinvestmentisorwillbelocated.A
125projectfacilitymayincludeseparatebuildingslocatedwithinsixtymilesofeachothersuch
126thattheirpurposeandoperationsareinterrelated;providedthatwherethebuildingsmaking
127uptheprojectfacilityarenotlocatedwithinthesamecounty,theaveragewageofthenew
HB681 4 128payrollshallexceedtheapplicablepercentageofthehighestcountyaveragewageamongthe
129countiesinwhichthebuildingsarelocated.Uponapprovalbythedepartment,asubsequent
130projectfacilitymaybedesignatedifthequalifiedcompanydemonstratesaneedtorelocateto
131thesubsequentprojectfacilityatanytimeduringtheprojectperiod.Forqualifiedmilitary
132projects,theterm"projectfacility"meansthemilitarybaseorinstallationatwhichsuch
133qualifiedmilitaryprojectisorshallbelocated;
134 (25)"Projectfacilitybaseemployment",thegreaterofthenumberoffull-time
135employeeslocatedattheprojectfacilityonthedateofthenoticeofintentor,forthetwelve-
136monthperiodpriortothedateofthenoticeofintent,theaveragenumberoffull-time
137employeeslocatedattheprojectfacility.Intheeventtheprojectfacilityhasnotbeenin
138operationforafulltwelve-monthperiod,theaveragenumberoffull-timeemployeesforthe
139numberofmonthstheprojectfacilityhasbeeninoperationpriortothedateofthenoticeof
140intent;
141 (26)"Projectfacilitybasepayroll",theannualizedpayrollfortheprojectfacilitybase
142employmentorthetotalamountoftaxablewagespaidbythequalifiedcompanytofull-time
143employeesofthequalifiedcompanylocatedattheprojectfacilityinthetwelvemonthsprior
144tothenoticeofintent.Forpurposesofcalculatingthebenefitsunderthisprogram,the
145amountofbasepayrollshallincreaseeachyearbasedonanappropriatemeasure,as
146determinedbythedepartment;
147 (27)"Projectperiod",thetimeperiodwithinwhichbenefitsareawardedtoaqualified
148companyorwithinwhichthequalifiedcompanyisobligatedtoperformunderanagreement
149withthedepartment,whicheverisgreater;
150 (28)"Projectednetfiscalbenefit",thetotalfiscalbenefittothestatelessanystate
151benefitsofferedtothequalifiedcompany,asdeterminedbythedepartment;
152 (29)"Qualifiedcompany",afirm,partnership,jointventure,association,privateor
153publiccorporationwhetherorganizedforprofitornot,orheadquartersofsuchentity
154registeredtodobusinessinMissourithatistheowneroroperatorofaprojectfacility,
155certifiesthatitoffershealthinsurancetoallfull-timeemployeesofallfacilitieslocatedinthis
156state,andcertifiesthatitpaysatleastfiftypercentofsuchinsurancepremiums.Forthe
157purposesofsections620.2000to620.2020,theterm"qualifiedcompany"shallnotinclude:
158 (a)Gamblingestablishments(NAICSindustrygroup7132);
159 (b)Storefrontconsumer-basedretailtradeestablishments(underNAICSsectors44
160and45),exceptwithrespecttoanycompanyheadquarteredinthisstatewithamajorityofits
161full-timeemployeesengagedinoperationsnotwithintheNAICScodesspecifiedinthis
162subdivisionandexceptforanysuchestablishmentslocatedinacountyofthesecond,third,or
163fourthclassification;
164 (c)Foodanddrinkingplaces(NAICSsubsector722);
HB681 5 165 (d)Publicutilities(NAICS221includingwaterandsewerservices);
166 (e)Anycompanythatisdelinquentinthepaymentofanynonprotestedtaxesorany
167otheramountsduethestateorfederalgovernmentoranyotherpoliticalsubdivisionofthis
168state;
169 (f)Anycompanyrequestingbenefitsforretainedjobsthathasfiledfororhas
170publiclyannounceditsintentiontofileforbankruptcyprotection.However,acompanythat
171hasfiledfororhaspubliclyannounceditsintentiontofileforbankruptcymaybeaqualified
172companyprovidedthatsuchcompany:
173 a.Certifiestothedepartmentthatitplanstoreorganizeandnottoliquidate;and
174 b.Afteritsbankruptcypetitionhasbeenfiled,itproducesproof,inaformandat
175timessatisfactorytothedepartment,thatitisnotdelinquentinfilinganytaxreturnsor
176makinganypaymentduetothestateofMissouri,includingbutnotlimitedtoalltax
177paymentsdueafterthefilingofthebankruptcypetitionandunderthetermsoftheplanof
178reorganization.Anytaxpayerwhoisawardedbenefitsunderthissubsectionandwhofilesfor
179bankruptcyunderChapter7oftheUnitedStatesBankruptcyCode,Title11U.S.C.,shall
180immediatelynotifythedepartmentandshallforfeitsuchbenefitsandshallrepaythestatean
181amountequaltoanystatetaxcreditsalreadyredeemedandanywithholdingtaxesalready
182retained;
183 (g)Educationalservices(NAICSsector61);
184 (h)Religiousorganizations(NAICSindustrygroup8131);
185 (i)Publicadministration(NAICSsector92);
186 (j)Ethanoldistillationorproduction;
187 (k)Biodieselproduction;or
188 (l)Healthcareandsocialservices(NAICSsector62).
189
190Notwithstandinganyprovisionofthissectiontothecontrary,theheadquarters,administrative
191offices,orresearchanddevelopmentfacilitiesofanotherwiseexcludedbusinessmayqualify
192forbenefitsiftheofficesorfacilitiesserveamultistateterritory.Intheeventanational,state,
193orregionalheadquartersoperationisnotthepredominantactivityofaprojectfacility,thejobs
194andinvestmentofsuchoperationshallbeconsideredeligibleforbenefitsunderthissectionif
195theotherrequirementsaresatisfied;
196 (30)"Qualifiedmanufacturingcompany",acompanythat:
197 (a)Isaqualifiedcompanythatmanufacturesmotorvehicles(NAICSgroup3361);
198 (b)ManufacturesgoodsatafacilityinMissouri;
199 (c)Manufacturesanewproductorhascommencedmakingamanufacturingcapital
200investmenttotheprojectfacilitynecessaryforthemanufacturingofsuchnewproduct,or
201modifiesorexpandsthemanufactureofanexistingproductorhascommencedmakinga
HB681 6 202manufacturingcapitalinvestmentfortheprojectfacilitynecessaryforthemodificationor
203expansionofthemanufactureofsuchexistingproduct;and
204 (d)Continuestomeettherequirementsofparagraphs(a)to(c)ofthissubdivisionfor
205theprojectperiod;
206 (31)"Qualifiedmilitaryproject",theexpansionorimprovementofamilitarybaseor
207installationwithinthisstatethatcauses:
208 (a)Anincreaseoftenormorepart-timeorfull-timemilitaryorciviliansupport
209personnel:
210 a.Whoseaveragesalariesequalorexceedninetypercentofthecountyaveragewage;
211and
212 b.Whoareofferedhealthinsurance,withanentityoftheUnitedStatesDepartment
213ofDefensepayingatleastfiftypercentofsuchinsurancepremiums;and
214 (b)Investmentinrealorpersonalpropertyatthebaseorinstallationexpresslyforthe
215purposesofservinganeworexpandedmilitaryactivityorunit.
216
217Forthepurposesofthissubdivision,part-timemilitaryorciviliansupportpersonnelshallbe
218convertedtofull-timenewjobsby,inhiredateorder,countingonefull-timenewjobfor
219everythirty-fiveaveragedhoursworkedperweekbypart-timemilitaryorciviliansupport
220personnelinjobsdirectlycreatedbythequalifiedmilitaryproject.Foreachsuchfull-time
221newjob,thesumofthewagesofthepart-timemilitaryorciviliansupportpersonnel
222combinedandconvertedtoformthenewjobshallbethewagefortheonefull-timenewjob.
223Eachpart-timemilitaryorciviliansupportpersonnelwhosejobiscombinedandconverted
224forsuchafull-timenewjobshallbeofferedhealthinsuranceasdescribedinsubparagraphb
225ofparagraph(a)ofthissubdivision;
226 (32)"Relatedcompany",shallmean:
227 (a)Acorporation,partnership,trust,orassociationcontrolledbythequalified
228company;
229 (b)Anindividual,corporation,partnership,trust,orassociationincontrolofthe
230qualifiedcompany;or
231 (c)Corporations,partnerships,trustsorassociationscontrolledbyanindividual,
232corporation,partnership,trust,orassociationincontrolofthequalifiedcompany.Asusedin
233thisparagraph,"controlofaqualifiedcompany"shallmean:
234 a.Ownership,directlyorindirectly,ofstockpossessingatleastfiftypercentofthe
235totalcombinedvotingpowerofallclassesofstockentitledtovoteinthecaseofaqualified
236companythatisacorporation;
237 b.Ownershipofatleastfiftypercentofthecapitalorprofitinterestinsuchqualified
238companyifitisapartnershiporassociation;
HB681 7 239 c.Ownership,directlyorindirectly,ofatleastfiftypercentofthebeneficialinterest
240intheprincipalorincomeofsuchqualifiedcompanyifitisatrust,andownershipshallbe
241determinedasprovidedinSection318oftheInternalRevenueCodeof1986,asamended;
242 (33)"Relatedfacility",afacilityoperatedbythequalifiedcompanyorarelated
243companylocatedinthisstatethatisdirectlyrelatedtotheoperationsoftheprojectfacilityor
244inwhichoperationssubstantiallysimilartotheoperationsoftheprojectfacilityare
245performed;
246 (34)"Relatedfacilitybaseemployment",thegreaterofthenumberoffull-time
247employeeslocatedatallrelatedfacilitiesonthedateofthenoticeofintentor,forthetwelve-
248monthperiodpriortothedateofthenoticeofintent,theaveragenumberoffull-time
249employeeslocatedatallrelatedfacilitiesofthequalifiedcompanyorarelatedcompany
250locatedinthisstate;
251 (35)"Relatedfacilitybasepayroll",theannualizedpayrolloftherelatedfacilitybase
252payrollorthetotalamountoftaxablewagespaidbythequalifiedcompanytofull-time
253employeesofthequalifiedcompanylocatedatarelatedfacilityinthetwelvemonthspriorto
254thefilingofthenoticeofintent.Forpurposesofcalculatingthebenefitsunderthisprogram,
255theamountofrelatedfacilitybasepayrollshallincreaseeachyearbasedonanappropriate
256measure,asdeterminedbythedepartment;
257 (36)"Ruralarea",acountyinMissouriwithapopulationlessthanseventy-five
258thousandorthatdoesnotcontainanindividualcitywithapopulationgreaterthanfifty
259thousandaccordingtothemostrecentfederaldecennialcensus;
260 (37)"Taxcredits",taxcreditsissuedbythedepartmenttooffsetthestatetaxes
261imposedbychapters143and148,orwhichmaybesoldorrefundedasprovidedforinthis
262program;
263 (38)"Withholdingtax",thestatetaximposedbysections143.191to143.265.For
264purposesofthisprogram,thewithholdingtaxshallbecomputedusingascheduleas
265determinedbythedepartmentbasedonaveragewages.
266 2.Thissectionissubjecttotheprovisionsofsection196.1127.
âś”
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