FIRSTREGULARSESSION
HOUSECOMMITTEESUBSTITUTEFOR
HOUSEBILLNO.959
102NDGENERALASSEMBLY
2071H.02C DANARADEMANMILLER,ChiefClerk
ANACT
Toamendchapter620,RSMo,byaddingtheretosevennewsectionsrelatingtoruralaccessto
capitalincentives.
BeitenactedbytheGeneralAssemblyofthestateofMissouri,asfollows:
SectionA.Chapter620,RSMo,isamendedbyaddingtheretosevennewsections,to
2beknownassections620.3500,620.3505,620.3510,620.3515,620.3520,620.3525,and
3620.3530,toreadasfollows:
620.3500.Sections620.3500to620.3530shallbeknownandmaybecitedasthe
2"MissouriRuralAccesstoCapitalAct".
620.3505.Asusedinsections620.3500to620.3530,thefollowingtermsshall
2mean:
3 (1)"Affiliate",anentitythatdirectly,orindirectlythroughoneormore
4intermediaries,controls,iscontrolledby,orisundercommoncontrolwithanother
5entity.Anentityiscontrolledbyanotherentityifthecontrollingentityholds,directlyor
6indirectly,themajorityvotingorownershipinterestinthecontrolledentityorhas
7controloverday-to-dayoperationsofthecontrolledentitybycontractorbylaw;
8 (2)"Affiliatecapital",capitalraisedbytheruralinvestordirectlyorindirectly
9fromsources,includingleveragesource,directors,members,employees,officers,and
10affiliatesoftheruralinvestor,otherthantheamountinvestedbytheallocateeclaiming
11thetaxcreditsinexchangeforsuchallocationoftaxcredits;
12 (3)"Agribusiness",abusinessthatproducesorprovidesanygoodsorservices
13producedinthisstatenormallyusedbyfarmers,ranchers,orproducersandharvesters
14ofaquaticproductsintheirbusinessoperations,ortoimprovethewelfareorlivelihood
15ofsuchpersons,orisinvolvedintheprocessingandmarketingofagriculturalproducts,
EXPLANATION—Matterenclosedinbold-facedbrackets[thus] intheabovebillisnotenactedandis
intendedtobeomittedfromthelaw.Matterinbold-facetypeintheabovebillisproposedlanguage. 16farmsupplies,andinputsuppliers,orisengagedinagribusinessasdefinedbythe
17UnitedStatesDepartmentofAgriculture,orifnotengagedinsuchindustries,the
18departmentdeterminesthatsuchinvestmentwillbebeneficialtotheruralareaandthe
19economicgrowthofthestate;
20 (4)"Applicablepercentage",zeropercentfortheinitialcreditallowancedate
21andthesecondcreditallowancedateandfifteenpercentforthenextfourcredit
22allowancedates;
23 (5)"Baseemployment",thetotalnumberofqualifiedemployeesreceiving
24taxablewagesfromtheeligiblebusinessinthetaxyearprecedingthedateoftheinitial
25capitalinvestment;
26 (6)"Basepayroll",thetotalamountoftaxablewagespaidbytheeligible
27businesstoqualifiedemployeesinthetaxyearprecedingthedateoftheinitialcapital
28investment;
29 (7)"Baserevenue",thetotalnetrevenueearnedbytheeligiblebusinessinthe
30taxyearprecedingthedateoftheinitialcapitalinvestment;
31 (8)"Basetaxablesales",thetaxablesalesoftheeligiblebusinessinthetaxyear
32precedingthedateoftheinitialinvestment;
33 (9)"Capitalinvestment",anyequityinvestmentinaruralfundbyarural
34investorthat:
35 (a)Isacquiredaftertheeffectivedateofsections620.3500to620.3530atits
36originalissuancesolelyinexchangeforcash;
37 (b)Hasonehundredpercentofitscashpurchasepriceusedbytheruralfundto
38makequalifiedinvestmentsineligiblebusinesseslocatedinthisstatebythethirdcredit
39allowancedate;and
40 (c)Isdesignatedbytheruralfundasacapitalinvestmentundersections
41620.3500to620.3530andiscertifiedbythedepartmentundertheprovisionsofsection
42620.3510.Thisshallincludeanycapitalinvestmentthatdoesnotmeettheprovisionsof
43subdivision(1)ofsubsection1ofsection620.3510ifsuchinvestmentwasacapital
44investmentinthehandsofapriorholder;
45 (10)"Creditallowancedate",theanniversaryoftheinitialcreditallowance
46date;
47 (11)"Department",theMissouridepartmentofeconomicdevelopment;
48 (12)"Eligiblebusiness",abusinessdefinedasandsubjecttothefollowing:
49 (a)Abusinessthat,atthetimeoftheinitialqualifiedinvestmentinthebusiness:
50 a.Hasfewerthantwohundredfiftyemployees;
51 b.Hasitsprincipalbusinessoperationsinthisstate;and
HCSHB959 2 52 c.IsengagedinNorthAmericanIndustryClassificationSystem(NAICS)Sector
5311,21,22,31-33,48-49,62,or811orifnotengagedinsuchindustries,thedepartment
54determinesthatsuchinvestmentwillbebeneficialtotheruralareaandeconomic
55growthofthestate;and
56 (b)Anybusinessthatisclassifiedasaneligiblebusinessatthetimeoftheinitial
57investmentinsuchbusinessbyaruralfundshallremainclassifiedasaneligible
58businessandmayreceivefollow-oninvestmentsfromanyruralfund,andsuchfollow-
59oninvestmentsshallbequalifiedinvestmentseventhoughsuchbusinessmaynotmeet
60subparagrapha.ofparagraph(a)ofthissubdivisionatthetimeofsuchfollow-on
61investments;
62 (13)"Initialcreditallowancedate",thedateonwhichthedepartmentcertifiesa
63ruralfund'scapitalinvestment;
64 (14)"Leveragesource",third-partycapitalraisedasdebtfromadepository
65institution;
66 (15)"Maintainedjob",thenumberofqualifiedemployeesattheeligible
67businessatorbelowbaseemployment;
68 (16)"Maintainedpayroll",thetotaltaxablewagespaidbytheeligiblebusiness
69toqualifiedemployeesatorbelowbasepayroll;
70 (17)"Maintainedrevenue",thetotalrevenueearnedbytheeligiblebusinessat
71orbelowbaserevenue;
72 (18)"Maintainedtaxablesales",thetotaltaxablesalesoftheeligiblebusinessat
73orbelowbasetaxablesales;
74 (19)"Newjobs",thenumberofqualifiedemployeesattheeligiblebusinessless
75theeligiblebusiness'sbaseemployment;
76 (20)"Newpayroll",theamountoftaxablewagespaidtoqualifiedemployeesat
77theeligiblebusinesslesstheeligiblebusiness'sbasepayroll;
78 (21)"Newrevenue",thetotalrevenueearnedbytheeligiblebusinesslessthe
79eligiblebusiness'sbaserevenue;
80 (22)"Newtaxablesales",thetotaltaxablesalesoftheeligiblebusinesslessthe
81eligiblebusiness'sbasetaxablesales;
82 (23)"Principalbusinessoperations",thelocationwhereatleastsixtypercentof
83abusiness'semployeesworkorwhereemployeeswhoarepaidatleastsixtypercentof
84suchbusiness'spayrollwork.Abusinessthathasagreedtorelocateemployeesusingthe
85proceedsofaqualifiedinvestmenttoestablishitsprincipalbusinessoperationsinanew
86locationshallbedeemedtohaveitsprincipalbusinessoperationsinsuchnewlocationif
87itsatisfiedtherequirementsofthissubdivisionnolaterthanonehundredeightydays
88afterreceivingaqualifiedinvestment;
HCSHB959 3 89 (24)"Purchaseprice",theamountpaidtotheruralfundthatissuesacapital
90investment,whichshallnotexceedtheamountofcapitalinvestmentauthoritycertified
91undertheprovisionsofsection620.3510;
92 (25)"Qualifiedemployee",anemployeeofaneligiblebusinesswhoisscheduled
93toworkanaverageofatleastthirty-fivehoursperweekforatwelve-monthperiodor
94meetsthecustomarypracticesacceptedbythatindustryasfulltime;
95 (26)"Qualifiedinvestment",anyinvestmentinaneligiblebusinessoranyloan
96toaneligiblebusinesswithastatedmaturitydateofatleastoneyearafterthedateof
97issuance,excludingrevolvinglinesofcreditandseniorsecureddebtunlessthechief
98executiveorsimilarofficeroftheeligiblebusinesscertifiesthattheeligiblebusiness
99soughtandwasdeniedsimilarfinancingfromadepositoryinstitution,byaruralfund,
100providedthat,withrespecttoanyoneeligiblebusiness,themaximumamountof
101investmentsmadeinsuchbusinessbyoneormoreruralfunds,onacollectivebasiswith
102allofthebusiness'saffiliates,withtheproceedsofcapitalinvestmentsshallbethe
103greateroftwentypercentoftheruralfund'scapitalinvestmentauthorityorsixmillion
104fivehundredthousanddollars,exclusiveofinvestmentsmadewithrepaidorredeemed
105investmentsorinterestorprofitsrealizedthereon;
106 (27)"Ruralarea",anyareaofthisstatethatissetoutintheUnitedStates
107DepartmentofAgriculturecensusplacesmapaspublishedbytheUnitedStates
108DepartmentofAgriculturewithacensusplacepopulationoffewerthanfiftythousand
109inhabitants;
110 (28)"Ruralfund",anentitycertifiedbythedepartmentundertheprovisionsof
111section620.3510;
112 (29)"Ruralinvestor",anentitythatmakesacapitalinvestmentinaruralfund;
113 (30)"Seniorsecureddebt",anyloanthatissecuredbyafirstmortgageonreal
114estatewithaloan-to-valueratiooflessthaneightypercent;
115 (31)"Statesharingratio",theratioequaltothesumoftheactualandprojected
116directandindirectstateandlocaltaxbenefitsfollowingaruralfund'squalified
117investmentsineligiblebusinessesincluding,butnotlimitedto,thestateandlocaltax
118benefitsfromnewjobs,maintainedjobs,newpayroll,maintainedpayroll,newrevenue,
119maintainedrevenue,newtaxablesales,andmaintainedtaxablesales,whichdirectand
120indirectstateandlocaltaxbenefitsshallbedeterminedusinganationallyrecognized
121dynamiceconomicforecastingmodel,dividedbytheamountoftaxcreditsearnedbythe
122ruralinvestorofsuchruralfund.Theeconomicforecastingmodelusedatthebeginning
123oftheprogramshallbethesamemodelusedfortheremainderoftheprogramandshall
124projectstateandlocaltaxbenefitsforaminimumoftenyears;
HCSHB959 4 125 (32)"Statetaxliability",anyliabilityincurredbyanyentitysubjecttothestate
126incometaximposedunderchapter143,excludingwithholdingtaximposedunder
127sections143.191to143.265,oraninsurancecompanypayinganannualtaxonitsgross
128premiumreceipts,includingretaliatorytax,orotherfinancialinstitutionpayingtaxesto
129thestateoranypoliticalsubdivisionofthestateundertheprovisionsofchapter148,or
130anexpresscompanythatpaysanannualtaxonitsgrossreceiptsinthisstate;
131 (33)"Taxablesales",taxablesalesasreportedtotheMissouridepartmentof
132revenue,calculatedassetforthinsections144.010to144.525;
133 (34)"Thirdpartycapital",thedifferencebetweentheruralfund'scapital
134investmentandthesumoftheamountinvestedbytheallocateeclaimingthetaxcredits
135andtheaffiliatecapital.
620.3510.1.Aruralfundthatseekstohaveanequityinvestmentcertifiedasa
2capitalinvestmenteligibleforcreditsauthorizedundertheprovisionsofsections
3620.3500to620.3530shallapplytothedepartment.Thedepartmentshallbegin
4acceptingapplicationswithinninetydaysoftheeffectivedateofsections620.3500to
5620.3530.Theapplicationshallinclude:
6 (1)Theamountofcapitalinvestmentrequested;
7 (2)Acopyoftheapplicant'soranaffiliateoftheapplicant'slicenseasarural
8businessinvestmentcompanyunder7U.S.C.Section2009ccorasasmallbusiness
9investmentcompanyunder15U.S.C.Section681andacertificateexecutedbyan
10executiveofficeroftheapplicantattestingthatsuchlicenseremainsineffectandhasnot
11beenrevoked;
12 (3)Evidencethat,asofthedatetheapplicationissubmitted,theapplicantor
13affiliatesoftheapplicanthaveinvested:
14 (a)Atleastonehundredmilliondollarsinnonpubliccompanieslocatedin
15countieswithintheUnitedStateswithapopulationoffewerthanfiftythousand
16inhabitantsaccordingtothe2020decennialcensusoftheUnitedStates;and
17 (b)AtleastthirtymilliondollarsinnonpubliccompanieslocatedinMissouri;
18 (4)Abusinessplanthatincludesarevenueimpactassessmentprojectingstate
19andlocaltaxrevenuetobegeneratedbytheapplicant'sproposedqualifiedinvestments,
20preparedbyanationallyrecognized,third-party,independenteconomicforecasting
21firmusingthesamedynamiceconomicforecastingmodelusedtocalculatethestate
22sharingratiothatanalyzestheapplicant'sbusinessplaninyearlyincrementsoverthe
23tenyearsfollowingthedatetheapplicationissubmittedtothedepartment.Suchplan
24shallincludeanestimateofthenumberofnewjobsandmaintainedjobs,thenew
25payrollandmaintainedpayroll,thenewrevenueandmaintainedrevenue,andthenew
HCSHB959 5 26taxablesalesandmaintainedtaxablesalesinthisstateasaresultoftheapplicant's
27qualifiedinvestments;and
28 (5)Anonrefundableapplicationfeeoffivethousanddollarspayabletothe
29department.
30 2.Withinsixtydaysafterthereceiptofacompletedapplication,thedepartment
31shallgrantordenytheapplicationinfullorinpart.Thedepartmentshalldenythe
32applicationif:
33 (1)Theapplicantdoesnotsatisfyallofthecriteriaprovidedundersubsection1
34ofthissection;
35 (2)Therevenueimpactassessmentsubmittedwiththeapplicationdoesnot
36demonstratethattheapplicant'sbusinessplanwillresultinapositivefiscalimpacton
37thisstateoveraten-yearperiodthatexceedsthecumulativeamountoftaxcreditsthat
38wouldbeissuedtotheapplicantiftheapplicationwereapproved;or
39 (3)Thedepartmenthasalreadyapprovedthemaximumamountofcapital
40investmentauthorityundersection620.3515.
41 3.Ifthedepartmentdeniesanypartoftheapplication,itshallinformthe
42applicantofthegroundsforsuchdenial.Iftheapplicantprovidesanyadditional
43informationrequiredbythedepartmentorotherwisecompletesitsapplicationwithin
44fifteendaysofthenoticeofdenial,theapplicationshallbeconsideredcompleteasofthe
45originaldateofresubmission.Iftheapplicantfailstoprovidetheinformationorfailsto
46completeitsapplicationwithinthefifteen-dayperiod,theapplicationshallremain
47deniedandshallberesubmittedinfullwithanewsubmissiondateandanew
48applicationfee.
49 4.Uponapprovalofanapplication,thedepartmentshallcertifytheproposed
50equityinvestmentasacapitalinvestmenteligibleforcreditsundersections620.3500to
51620.3530,subjecttothelimitationscontainedinsection620.3515.Thedepartmentshall
52providewrittennoticeofthecertificationtotheapplicant,whichshallincludethe
53amountoftheapplicant'scapitalinvestmentauthority.Thedepartmentshallcertify
54capitalinvestmentsintheorderthattheapplicationsarereceivedbythedepartment.
55Applicationsreceivedonthesamedayshallbedeemedtohavebeenreceived
56simultaneously.Forapplicationsthatarecompleteandreceivedonthesameday,the
57departmentshallcertifyapplicationsinproportionatepercentagesbasedupontheratio
58oftheamountofcapitalinvestmentauthorityrequestedinanapplicationtothetotal
59amountofcapitalinvestmentauthorityrequestedinallapplications.
620.3515.1.Thedepartmentshallcertifycapitalinvestmentauthorityunderthe
2provisionsofsections620.3500to620.3530inamountsthatwouldauthorizenotmore
3thansixteenmilliondollarsinstatetaxcreditstobeclaimedagainststatetaxliabilityin
HCSHB959 6 4anycalendaryear,excludinganycreditamountscarriedforwardasprovidedunder
5subsection1ofsection620.3520.Withinninetydaysoftheapplicantreceivingnoticeof
6certification,theruralfundshallissuethecapitalinvestmentto,andreceivecashinthe
7amountofthecertifiedamountfrom,aruralinvestor.Atleasttenpercentoftherural
8investor'scapitalinvestmentshallbecomposedofaffiliatecapital.Theruralfundshall
9providethedepartmentwithevidenceofthereceiptofthecashinvestmentwithin
10ninety-fivedaysoftheapplicantreceivingnoticeofcertification.Suchevidenceshall
11includedetailsofthethird-partycapitalraised,includingfromanyleveragesource.
12 2.Iftheruralfunddoesnotreceivethecashinvestmentandissuethecapital
13investmentwithinsuchtimeperiodfollowingreceiptofthecertificationnotice,the
14certificationshalllapseandtheruralfundshallnotissuethecapitalinvestmentwithout
15reapplyingtothedepartmentforcertification.Lapsedcertificationsshallreverttothe
16departmentandshallbereissuedproratatoapplicantswhosecapitalinvestment
17allocationswerereducedduringtheimmediatelyprecedingapplicationcyclein
18accordancewiththeapplicationprocessprovidedundersubsection4ofsection
19620.3510.Anylapsedcertificationnotreissuedwithinthesamecalendaryearasthe
20lapsedcertificationwasissuedshallnotbereissued.
21 3.Aruralfund,beforemakingaqualifiedinvestment,mayrequestfromthe
22departmentawrittenopinionastowhetherthebusinessinwhichitproposestoinvestis
23aneligiblebusiness.Suchrequestshallbeonaformdevelopedbythedepartmenttobe
24completedbytheeligiblebusinessandtheruralfund.Ifthedepartmentfailstonotify
25theruralfundofitsdeterminationbythetwentiethbusinessdayfollowingitsreceiptof
26thecompletedformandallinformationnecessarytoformitsopinion,thebusinessin
27whichtheruralfundproposestoinvestshallbedeemedaneligiblebusiness.
620.3520.1.Uponmakingacapitalinvestmentinaruralfund,aruralinvestor
2shallhaveavestedrighttoearnataxcreditthatwillbeissuedbythedepartmentthat
3maybeusedagainstsuchentity'sstatetaxliabilitythatmaybeutilizedoneachcredit
4allowancedateofsuchcapitalinvestmentinanamountequaltotheapplicable
5percentageforsuchcreditallowancedatemultipliedbythepurchasepricepaidtothe
6ruralfundforthecapitalinvestment.Theamountofthecreditclaimedbyarural
7investorshallnotexceedtheamountofsuchentity'sstatetaxliabilityforthetaxyear
8forwhichthecreditisclaimed.Anyamountofcreditthataruralinvestorisprohibited
9fromclaiminginataxyearasaresultofthissectionmaybecarriedforwardforusein
10anyofthefivesubsequenttaxyearsandshallnotbecarriedbacktopriortaxyears.A
11ruralinvestorclaimingacreditundertheprovisionsofsections620.3500to620.3530
12shallnotincuranyadditionaltaxthatmayariseasaresultofclaimingsuchcredit.
HCSHB959 7 13 2.Nocreditclaimedundertheprovisionsofsections620.3500to620.3530shall
14berefundableorsellableontheopenmarket.Creditsearnedbyorallocatedtoa
15partnership,limitedliabilitycompany,orScorporationmaybeallocatedtothe
16partners,members,orshareholdersofsuchentityfortheirdirectuseinaccordance
17withtheprovisionsofanyagreementamongsuchpartners,members,orshareholders,
18andaruralfundshallnotifythedepartmentofthenamesoftheentitiesthatareeligible
19toutilizecreditspursuanttoanallocationofcreditsorachangeinallocationofcredits
20orduetoatransferofacapitalinvestmentuponsuchallocation,change,ortransfer.
21Suchallocationshallnotbeconsideredasaleforthepurposesofthissection.
22 3.Thedepartmentmayrecapturecreditsfromataxpayerthatclaimedacredit
23authorizedunderthissectionif:
24 (1)Theruralfunddoesnotinvestsixtypercentofitscapitalinvestment
25authorityinqualifiedinvestmentsinthisstatewithintwoyearsofthecreditallowance
26date,andonehundredpercentofitscapitalinvestmentauthorityinqualified
27investmentsinthisstatewithinthreeyearsofthecreditallowancedate,providedthat
28atleastseventypercentofsuchinitialqualifiedinvestmentsshallbemadeineligible
29businesseslocatedinruralareasoreligiblebusinessesthatarealsoagribusinesses.In
30noeventshallmorethanthirtypercentofsuchinitialqualifiedinvestmentsbemadein
31eligiblebusinesseslocatedoutsideofaruralarea;
32 (2)Theruralfundfailstomaintainqualifiedinvestmentsequaltoninetypercent
33ofitscapitalinvestmentauthorityfromthethirduntilthesixthcreditallowancedate,
34withseventypercentofsuchinvestmentsmaintainedineligiblebusinesseslocatedin
35ruralareasoreligiblebusinessesthatarealsoagribusinesses,providedthat,innoevent
36shallmorethanthirtypercentofsuchqualifiedinvestmentsbemadeineligible
37businesseslocatedoutsideofaruralarea.Foreachyeartheruralfundfailstomaintain
38suchinvestments,thedepartmentmayrecaptureanamountofsuchyear'sallowed
39creditsequaltothepercentagedifferencebetweenninetypercentofaruralfund's
40capitalinvestmentauthorityandtheactualamountofqualifiedinvestmentsmaintained
41forsuchyear.Forthepurposesofthissubdivision,aqualifiedinvestmentisconsidered
42maintainedevenifthequalifiedinvestmentwassoldorrepaidsolongastheruralfund
43reinvestsanamountequaltothecapitalreturnedorrecoveredbytheruralfundfrom
44theoriginalinvestment,exclusiveofanyprofitsrealized,inotherqualifiedinvestments
45inthisstatewithintwelvemonthsofthereceiptofsuchcapital.Amountsreceived
46periodicallybyaruralfundshallbetreatedascontinuallyinvestedinqualified
47investmentsiftheamountsarereinvestedinoneormorequalifiedinvestmentsbythe
48endofthefollowingcalendaryear.Aruralfundshallnotberequiredtoreinvestcapital
49returnedfromqualifiedinvestmentsafterthefifthcreditallowancedate,andsuch
HCSHB959 8 50qualifiedinvestmentsshallbeconsideredheldcontinuouslybytheruralfundthrough
51thesixthcreditallowancedate;
52 (3)Theruralfund,beforeexitingtheprograminaccordancewithsections
53620.3500to620.3530orpriortothirtydaysafterthesixthcreditallowancedate,
54whicheverisearlier,makesadistributionorpaymentthatresultsintheruralfund
55havinglessthanonehundredpercentofitscapitalinvestmentauthorityinvestedin
56qualifiedinvestmentsinthisstateorheldincashorothermarketablesecurities;or
57 (4)Theruralfundviolatestheprovisionsofsection620.3525,inwhichcasethe
58departmentmayrecaptureanamountequaltotheamountofaruralfund'scapital
59investmentauthorityfoundtobeinviolationofsuchprovisions.
60 4.Forthepurposesofmeetingandmaintainingtheobjectivesestablishedfor
61investmentinsubdivisions(1)and(2)ofsubsection3ofthissection,aruralfund's
62qualifiedinvestmentsshallbemultipliedbyafactorofoneandaquarterincounties
63withfewerthanthirtythousandinhabitantsinpopulationandmorethanthirteen
64thousandinhabitantsinpopulationandshallbemultipliedbyafactorofoneandone-
65halfincountieswithapopulationofthirteenthousandinhabitantsorfewer,according
66tothemostrecentdecennialcensus.
67 5.Norecaptureshalloccuruntiltheruralfundhasbeengivennoticeof
68noncomplianceandaffordedsixmonthsfromthedateofsuchnoticetocurethe
69noncompliance.
620.3525.Noeligiblebusinessthatreceivesaqualifiedinvestmentunderthe
2provisionsofsections620.3500to620.3530,oranyaffiliatesofsucheligiblebusinesses,
3shalldirectlyorindirectly:
4 (1)Ownorhavetherighttoacquireanownershipinterestinaruralfundor
5memberoraffiliateofaruralfundincluding,butnotlimitedto,aholderofacapital
6investmentissuedbytheruralfund;or
7 (2)Loantoorinvestinaruralfundormemberoraffiliateofaruralfund
8including,butnotlimitedto,aholderofacapitalinvestmentissuedbyaruralfund,
9wheretheproceedsofsuchloanorinvestmentaredirectlyorindirectlyusedtofundor
10refinancethepurchaseofacapitalinvestmentundersections620.3500to620.3530.
620.3530.1.Ruralfundsshallsubmitareporttothedepartmentwithinthefirst
2fifteenbusinessdaysafterthesecondandthirdcreditallowancedate.Thereport
3followingthesecondcreditallowancedateshallprovidedocumentationastothe
4investmentofsixtypercentofthepurchasepriceofsuchcapitalinvestmentinqualified
5investments.Thereportfollowingthethirdcreditallowancedateshallprovide
6documentationastotheinvestmentofonehundredpercentofthepurchasepriceof
7suchcapitalinvestmentinqualifiedequityinvestments.Forallsubsequentyears,rural
HCSHB959 9 8fundsshallsubmitanannualreporttothedepartmentwithinninetydaysofthe
9beginningofthecalendaryearduringthecomplianceperiod.Unlesspreviously
10reportedpursuanttothissubsection,suchreportsshallalsoinclude:
11 (1)Thenameandlocationofeacheligiblebusinessreceivingaqualified
12investment;
13 (2)Bankstatementsofsuchruralfundevidencingeachqualifiedinvestment;
14 (3)Acopyofthewrittenopinionofthedepartment,asprovidedinsubsection3
15ofsection620.3515,orevidencethatsuchbusinesswasaneligiblebusinessatthetimeof
16suchqualifiedinvestment,asapplicable;
17 (4)Thetotalnumberofnewjobs,maintainedjobs,newpayroll,maintained
18payroll,newrevenue,andmaintainedrevenuebyeacheligiblebusinessreceivinga
19qualifiedinvestmentfromaruralfund;
20 (5)Suchotherinformationasrequiredbythedepartment.
21 2.Theprogramauthorizedundersections620.3500to620.3530shallbe
22consideredabusinessrecruitmenttaxcreditundersubdivision(4)ofsubsection2of
23section135.800,andanyruralfundapprovedunderthisprogramshallbesubjecttothe
24provisionsofsections135.800to135.830.
25 3.Onorafterthesixthanniversaryofthecreditallowancedate,aruralfund
26mayapplytothedepartmenttoexittheprogramandnolongerbesubjecttoregulation
27undertheprovisionsofsections620.3500to620.3530.Suchrequestshallbeonaform
28developedbythedepartmenttobecompletedbytheruralfund.Thedepartmentshall
29respondtotheexitapplicationwithinthirtydaysofreceiptofthecompletedform.In
30evaluatingtheexitapplication,thefactthatnocreditshavebeenrecapturedandthat
31theruralfundhasnotreceivedanoticeofrecapturethathasnotbeencuredunder
32subsection4ofsection620.3520shallbesufficientevidencetoprovethattheruralfund
33iseligibleforexit.Thedepartmentshallnotunreasonablydeny,delay,orwithholdits
34determinationofanexitapplicationsubmittedunderthissubsection.Iftheexit
35applicationisdenied,thenoticeshallincludethereasonsforsuchdetermination.
36 4.Uponexitfromtheprograminaccordancewithsubsection3ofthissection,in
37theeventthestatesharingratioislessthanone-to-one,thestateshallreceiveashareof
38distributionsmadewithrespecttothecapitalinvestmentraisedbytheruralfundequal
39tooneminusthestatesharingratiomultipliedbytheamountoftaxcreditsearnedby
40theruralinvestorofsuchruralfund,providedtheruralfundmaymakedistributionsto
41makepaymentsontheleveragesourceinanamountnottoexceedprincipalandinterest
42owedontheleveragesource.Themaximumamountofdistributionsthestateshallbe
43entitledtoreceiveshallnotexceedanamountequaltotenpercentofthetaxcredits
HCSHB959 10 44earnedbysuchruralinvestorandthestateshallreceivenodistributionsifthestate
45sharingratioexceedsone-to-one.
46 5.Pursuanttosection23.253oftheMissourisunsetact:
47 (1)Theprovisionsofthenewprogramauthorizedundersections620.3500to
48620.3530shallautomaticallysunsetonAugust28,2029,unlessreauthorizedbyanactof
49thegeneralassembly;
50 (2)Ifsuchprogramisreauthorized,theprogramauthorizedundersections
51620.3500to620.3530shallautomaticallysunsetsixyearsaftertheeffectivedateofthe
52reauthorizationofsections620.3500to620.3530;
53 (3)Sections620.3500to620.3530shallterminateonSeptemberfirstofthe
54calendaryearimmediatelyfollowingthecalendaryearinwhichtheprogramauthorized
55undersections620.3500to620.3530issunset;and
56 (4)Nothinginthissubsectionshallprecludearuralfundthathasreceived
57certifiedcapitalinvestmentauthorityfromthedepartmentpriortotheexpirationof
58sections620.3500to620.3530fromissuingthecapitalinvestmentpursuanttothat
59authorityinaccordancewithsections620.3500to620.3530.
60 6.Thedepartmentmayadoptsuchrules,statementsofpolicy,procedures,
61forms,andguidelinesasmaybenecessarytocarryouttheprovisionsofsections
62620.3500to620.3530.Anyruleorportionofarule,asthattermisdefinedinsection
63536.010,thatiscreatedundertheauthoritydelegatedinthissectionshallbecome
64effectiveonlyifitcomplieswithandissubjecttoalloftheprovisionsofchapter536and,
65ifapplicable,section536.028.Thissectionandchapter536arenonseverableandifany
66ofthepowersvestedwiththegeneralassemblypursuanttochapter536toreview,to
67delaytheeffectivedate,ortodisapproveandannularulearesubsequentlyheld
68unconstitutional,thenthegrantofrulemakingauthorityandanyruleproposedor
69adoptedafterAugust28,2023,shallbeinvalidandvoid.
âś”
HCSHB959 11