SECONDREGULARSESSION
HOUSEBILLNO.2170
102NDGENERALASSEMBLY
INTRODUCEDBYREPRESENTATIVEGREGORY.
4292H.01I DANARADEMANMILLER,ChiefClerk
ANACT
Toamendchapter620,RSMo,byaddingtheretosevennewsectionsrelatingtorural
economicdevelopment.
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".
620.3505.1.Asusedinsections620.3500to620.3530,thefollowingtermsshall
2mean:
3 (1)"Affiliate",anentitythatdirectly,orindirectlythroughoneormore
4intermediaries,controlsoriscontrolledbyorisundercommoncontrolwithanother
5entity.Anentityiscontrolledbyanotherentityifthecontrollingentityholds,directlyor
6indirectly,themajorityvotingorownershipinterestinthecontrolledentityorhas
7controloverday-to-dayoperationsofthecontrolledentitybycontractorbylaw;
8 (2)"Affiliatecapital",capitalraisedbyaruralinvestordirectlyorindirectly
9fromsources,includingleveragesources,directors,members,employees,officers,and
10affiliatesoftheruralinvestor,otherthantheamountinvestedbytheallocateeclaiming
11thetaxcreditsinexchangeforsuchallocationoftaxcredits;
12 (3)"Agribusiness",abusinessthatproducesorprovidesanygoodsorservices
13producedinthisstatethatarenormallyusedbyfarmers,ranchers,orproducersand
14harvestersofaquaticproductsintheirbusinessoperations,ortoimprovethewelfareor
EXPLANATION—Matterenclosedinbold-facedbrackets[thus] intheabovebillisnotenactedandis
intendedtobeomittedfromthelaw.Matterinbold-facetypeintheabovebillisproposedlanguage. 15livelihoodofsuchpersons;orisinvolvedintheprocessingandmarketingofagricultural
16products,farmsupplies,andinputsuppliers;orisengagedinagribusinessasdefinedby
17theUnitedStatesDepartmentofAgriculture;orifnotengagedinsuchindustries,the
18departmentdeterminesthatsuchinvestmentwillbebeneficialtotheruralareaandthe
19economicgrowthofthestate;
20 (4)"Applicablepercentage",zeropercentfortheinitialcreditallowancedate
21andthesecondcreditallowancedateandfifteenpercentforthenextfourcredit
22allowancedates;
23 (5)"Baseemployment",thetotalnumberofqualifiedemployeesreceiving
24taxablewagesfromaneligiblebusinessinthetaxyearprecedingthedateoftheinitial
25capitalinvestment;
26 (6)"Basepayroll",thetotalamountoftaxablewagespaidbyaneligible
27businesstoqualifiedemployeesinthetaxyearprecedingthedateoftheinitialcapital
28investment;
29 (7)"Baserevenue",thetotalnetrevenueearnedbyaneligiblebusinessinthe
30taxyearprecedingthedateoftheinitialcapitalinvestment;
31 (8)"Basetaxablesales",thetaxablesalesofaneligiblebusinessinthetaxyear
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",abusinessthat,atthetimeoftheinitialqualified
49investmentinthebusiness:
50 (a)Hasfewerthantwohundredfiftyemployees;
51 (b)Hasitsprincipalbusinessoperationsinthisstate;and
HB2170 2 52 (c)IsengagedinNorthAmericanIndustryClassificationSystem(NAICS)
53Sector11,21,22,31-33,48-49,62,or811,orifnotengagedinsuchindustries,the
54departmentdeterminesthatsuchinvestmentwillbebeneficialtotheruralareaand
55economicgrowthofthestate.
56
57Anybusinessthatisclassifiedasaneligiblebusinessatthetimeoftheinitialinvestment
58insuchbusinessbyaruralfundshallremainclassifiedasaneligiblebusinessandmay
59receivefollow-oninvestmentsfromanyruralfund,andsuchfollow-oninvestmentsshall
60bequalifiedinvestmentseventhoughsuchbusinessmaynotmeetparagraph(a)ofthis
61subdivisionatthetimeofsuchinvestments;
62 (13)"Full-timeemployee",anemployeeofaneligiblebusinesswhoisscheduled
63toworkanaverageofatleastthirty-fivehoursperweekforatwelve-monthperiod;
64 (14)"Initialcreditallowancedate",thedateonwhichthedepartmentcertifiesa
65ruralfund'scapitalinvestment;
66 (15)"Leveragesource",third-partycapitalraisedasdebtfromadepository
67institution;
68 (16)"Maintainedjob",thenumberofqualifiedemployeesataneligiblebusiness
69atorbelowbaseemployment;
70 (17)"Maintainedpayroll",thetotaltaxablewagespaidbyaneligiblebusinessto
71qualifiedemployeesatorbelowbasepayroll;
72 (18)"Maintainedrevenue",thetotalrevenueearnedbyaneligiblebusinessator
73belowbaserevenue;
74 (19)"Maintainedtaxablesales",thetotaltaxablesalesofaneligiblebusinessat
75orbelowbasetaxablesales;
76 (20)"Newjobs",thenumberofqualifiedemployeesataneligiblebusinessless
77theeligiblebusiness'sbaseemployment;
78 (21)"Newpayroll",theamountoftaxablewagespaidtoqualifiedemployeesat
79aneligiblebusinesslesstheeligiblebusiness'sbasepayroll;
80 (22)"Newrevenue",thetotalrevenueearnedbyaneligiblebusinesslessthe
81eligiblebusiness'sbaserevenue;
82 (23)"Newtaxablesales",thetotaltaxablesalesofaneligiblebusinesslessthe
83eligiblebusiness'sbasetaxablesales;
84 (24)"Principalbusinessoperations",thelocationwhereatleastsixtypercentof
85abusiness'semployeesworkorwhereemployeeswhoarepaidatleastsixtypercentof
86suchbusiness'spayrollwork.Abusinessthathasagreedtorelocateemployeesusingthe
87proceedsofaqualifiedinvestmenttoestablishitsprincipalbusinessoperationsinanew
88locationshallbedeemedtohaveitsprincipalbusinessoperationsinsuchnewlocationif
HB2170 3 89itsatisfiestherequirementsofthissubdivisionnolaterthanonehundredeightydays
90afterreceivingaqualifiedinvestment;
91 (25)"Purchaseprice",theamountpaidtoaruralfundthatissuesacapital
92investment,whichshallnotexceedtheamountofcapitalinvestmentauthoritycertified
93undertheprovisionsofsection620.3510;
94 (26)"Qualifiedemployee",anemployeeofaneligiblebusinesswhoisscheduled
95toworkanaverageofatleastthirty-fivehoursperweekforatwelve-monthperiodor
96meetsthecustomarypracticesacceptedbythatindustryasfulltime;
97 (27)"Qualifiedinvestment",anyinvestmentinaneligiblebusinessoranyloan
98toaneligiblebusinesswithastatedmaturitydateofatleastoneyearafterthedateof
99issuance,excludingrevolvinglinesofcreditandseniorsecureddebtunlessthechief
100executiveorsimilarofficeroftheeligiblebusinesscertifiesthattheeligiblebusiness
101soughtandwasdeniedsimilarfinancingfromadepositoryinstitution,byaruralfund;
102provided,howeverthatwithrespecttoanyoneeligiblebusiness,themaximumamount
103ofinvestmentsmadeinsuchbusinessbyoneormoreruralfunds,onacollectivebasis
104withallofthebusiness'saffiliates,withtheproceedsofcapitalinvestmentsshallbethe
105greateroftwentypercentoftheruralfund'scapitalinvestmentauthorityorsixmillion
106fivehundredthousanddollars,exclusiveofinvestmentsmadewithrepaidorredeemed
107investmentsorinterestorprofitsrealizedthereon;
108 (28)"Ruralarea",anyareaofthisstatethatissetoutintheUnitedStates
109DepartmentofAgriculturecensusplacesmapaspublishedbytheUnitedStates
110DepartmentofAgriculturewithacensusplacepopulationoffewerthanfiftythousand
111inhabitants;
112 (29)"Ruralfund",anentitycertifiedbythedepartmentundertheprovisionsof
113section620.3510;
114 (30)"Ruralinvestor",anentitythatmakesacapitalinvestmentinaruralfund;
115 (31)"Seniorsecureddebt",anyloanthatissecuredbyafirstmortgageonreal
116estatewithaloan-to-valueratiooflessthaneightypercent;
117 (32)"Statesharingratio",theratiodeterminedbytakingthesumoftheactual
118andprojecteddirectandindirectstateandlocaltaxrevenueprojectedoveraperiodof
119atleasttensubsequentyears,asshownonthemostrecentrevenueimpactassessment
120submittedbytheruralfundasrequiredinsubdivision(5)ofsubsection1ofsection
121620.3530,dividedbytheamountoftaxcreditequitycontributedbytheinvestorsofthe
122ruralinvestorinexchangeforthetaxcreditsauthorizedundersections620.3500to
123620.3530;
124 (33)"Statetaxliability",anyliabilityincurredbyanyentitysubjecttothestate
125incometaximposedunderchapter143,excludingwithholdingtaximposedunder
HB2170 4 126sections143.191to143.265,oraninsurancecompanypayinganannualtaxonitsgross
127premiumreceipts,includingretaliatorytax,orotherfinancialinstitutionpayingtaxesto
128thestateoranypoliticalsubdivisionofthestateundertheprovisionsofchapter148,or
129anexpresscompanythatpaysanannualtaxonitsgrossreceiptsinthisstate;
130 (34)"Taxablesales",taxablesalesasreportedtotheMissouridepartmentof
131revenue,calculatedassetforthinsections144.010to144.525;
132 (35)"Third-partycapital",thedifferencebetweentheruralfund'scapital
133investmentandthesumoftheamountinvestedbytheallocateeclaimingthetaxcredits
134andtheaffiliatecapital.
620.3510.1.Aruralfundthatseekstohaveanequityinvestmentcertifiedasa
2capitalinvestmenteligibleforcreditsauthorizedundertheprovisionsofsections
3620.3500to620.3530shallapplytothedepartment.Thedepartmentshallbegin
4acceptingapplicationswithinninetydaysoftheeffectivedateofsections620.3500to
5620.3530.Theapplicationshallinclude:
6 (1)Theamountofcapitalinvestmentrequested;
7 (2)Acopyoftheapplicant's,oranaffiliateoftheapplicant's,licenseasarural
8businessinvestmentcompanyunder7U.S.C.Section2009ccorasasmallbusiness
9investmentcompanyunder15U.S.C.Section681andacertificateexecutedbyan
10executiveofficeroftheapplicantattestingthatsuchlicenseremainsineffectandhasnot
11beenrevoked;
12 (3)Evidencethat,asofthedatetheapplicationissubmitted,theapplicantor
13affiliatesoftheapplicanthaveinvested:
14 (a)Atleastonehundredmilliondollarsinnonpubliccompanieslocatedin
15countieswithintheUnitedStateswithapopulationoffewerthanfiftythousand
16accordingtothe2020decennialcensusoftheUnitedStates;and
17 (b)AtleastthirtymilliondollarsinnonpubliccompanieslocatedinMissouri;
18 (4)Abusinessplanthatincludesarevenueimpactassessmentprojectingstate
19andlocaltaxrevenuetobegeneratedbytheapplicant'sproposedqualifiedinvestments,
20preparedbyanationallyrecognized,third-party,independenteconomicforecasting
21firmengagedbytheapplicant,usingadynamiceconomicforecastingmodelthat
22analyzestheapplicant'sbusinessplaninyearlyincrementsoverthetenyearsfollowing
23thedatetheapplicationissubmittedtothedepartment.Suchplanshallincludean
24estimateofthenewandmaintainedjobs,newandmaintainedpayroll,newand
25maintainedrevenue,andnewandmaintainedtaxablesalesinthisstateasaresultofthe
26applicant'squalifiedinvestments;and
27 (5)Anonrefundableapplicationfeeoffivethousanddollarspayabletothe
28department.
HB2170 5 29 2.Withinsixtydaysafterthereceiptofacompletedapplication,thedepartment
30shallapproveordenytheapplicationinfullorinpart.Thedepartmentshalldenythe
31applicationif:
32 (1)Theapplicantdoesnotsatisfyallofthecriteriaprovidedundersubsection1
33ofthissection;
34 (2)Therevenueimpactassessmentsubmittedwiththeapplicationdoesnot
35demonstratethattheapplicant'sbusinessplanwillresultinapositivefiscalimpacton
36thisstateoveraten-yearperiodthatexceedsthecumulativeamountoftaxcreditsthat
37wouldbeissuedtotheapplicantiftheapplicationwereapproved;or
38 (3)Thedepartmenthasalreadyapprovedthemaximumamountofcapital
39investmentauthorityundersection620.3515.
40 3.Ifthedepartmentdeniesanypartofanapplication,itshallinformthe
41applicantofthegroundsforsuchdenial.Iftheapplicantprovidesanyadditional
42informationrequiredbythedepartmentorotherwisecompletesitsapplicationwithin
43fifteendaysofthenoticeofdenial,theapplicationshallbeconsideredcompleteasofthe
44originaldateofresubmission.Iftheapplicantfailstoprovidetheinformationorfailsto
45completeitsapplicationwithinthefifteen-dayperiod,theapplicationshallremain
46deniedandshallberesubmittedinfullwithanewsubmissiondateandanew
47applicationfee.
48 4.Uponapprovalofanapplication,thedepartmentshallcertifytheproposed
49equityinvestmentasacapitalinvestmenteligibleforcreditsundersections620.3500to
50620.3530,subjecttothelimitationscontainedinsection620.3515.Thedepartmentshall
51providewrittennoticeofthecertificationtotheapplicant,whichshallincludethe
52amountoftheapplicant'scapitalinvestmentauthority.Thedepartmentshallcertify
53capitalinvestmentsintheorderthattheapplicationsarereceivedbythedepartment.
54Applicationsreceivedonthesamedayshallbedeemedtohavebeenreceived
55simultaneously.Forapplicationsthatarecompleteandreceivedonthesameday,the
56departmentshallcertifyapplicationsinproportionatepercentagesbasedupontheratio
57oftheamountofcapitalinvestmentauthorityrequestedinanapplicationtothetotal
58amountofcapitalinvestmentauthorityrequestedinallapplications.
620.3515.1.Thedepartmentshallcertifycapitalinvestmentauthorityunderthe
2provisionsofsections620.3500to620.3530inamountsthatwouldauthorizenotmore
3thansixteenmilliondollarsinstatetaxcreditstobeclaimedagainststatetaxliabilityin
4anycalendaryear,excludinganycreditamountscarriedforwardasprovidedunder
5subsection1ofsection620.3520.Withinninetydaysoftheapplicantreceivingnoticeof
6certificationtheruralfundshallissuethecapitalinvestmentto,andreceivecashinthe
7amountofthecertifiedamountfrom,aruralinvestor.Atleasttenpercentoftherural
HB2170 6 8investor'scapitalinvestmentshallbecomposedofaffiliatecapital.Theruralfundshall
9providethedepartmentwithevidenceofthereceiptofthecashinvestmentwithin
10ninety-fivedaysoftheapplicantreceivingnoticeofcertification.Suchevidenceshall
11includedetailsofthethird-partycapitalraised,includingfromanyleveragesource.
12 2.Ifaruralfunddoesnotreceivethecashinvestmentandissuethecapital
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
10anyofthefivesubsequenttaxyearsbutshallnotbecarriedbacktopriortaxyears.A
11ruralinvestorclaimingacreditundertheprovisionsofsections620.3500to620.3530
12shallnotincuranyadditionaltaxthatmayariseasaresultofclaimingsuchcredit.
13 2.Nocreditclaimedundertheprovisionsofsections620.3500to620.3530shall
14berefundableorsellableontheopenmarket.Creditsearnedbyorallocatedtoa
15partnership,limitedliabilitycompany,orS-corporationmaybeallocatedtothe
16partners,members,orshareholdersofsuchentityfortheirdirectuseinaccordance
17withtheprovisionsofanyagreementamongsuchpartners,members,orshareholders,
HB2170 7 18andaruralfundshallnotifythedepartmentofthenamesoftheentitiesthatareeligible
19toutilizecreditspursuanttoanallocationofcreditsorachangeinallocationofcredits,
20orduetoatransferofacapitalinvestmentuponsuchallocation,change,ortransfer.
21Suchallocationshallnotbeconsideredasaleforthepurposesofthissection.
22 3.Thedepartmentmayrecapturecreditsfromataxpayerthatclaimedacredit
23authorizedunderthissectionif:
24 (1)Aruralfunddoesnotinvestsixtypercentofitscapitalinvestmentauthority
25inqualifiedinvestmentsinthisstatewithintwoyearsofthecreditallowancedate,and
26onehundredpercentofitscapitalinvestmentauthorityinqualifiedinvestmentsinthis
27statewithinthreeyearsofthecreditallowancedate,providedthatatleastseventy
28percentofsuchinitialqualifiedinvestmentsshallbemadeineligiblebusinesseslocated
29inruralareasoreligiblebusinessesthatarealsoagribusinesses.Innoeventshallmore
30thanthirtypercentofsuchinitialqualifiedinvestmentsbemadeineligiblebusinesses
31locatedoutsideofaruralarea;
32 (2)Aruralfundfailstomaintainqualifiedinvestmentsequaltoninetypercent
33ofitscapitalinvestmentauthorityfromthethirduntilthesixthcreditallowancedate
34withseventypercentofsuchinvestmentsmaintainedineligiblebusinesseslocatedin
35ruralareasoreligiblebusinessesthatarealsoagribusinesses,providedthatinnoevent
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
50qualifiedinvestmentsshallbeconsideredheldcontinuouslybytheruralfundthrough
51thesixthcreditallowancedate;
52 (3)Aruralfund,beforeexitingtheprograminaccordancewithsections
53620.3500to620.3530orpriortothirtydaysafterthesixthcreditallowancedate,
54whicheverisearlier,makesadistributionorpaymentthatresultsintheruralfund
HB2170 8 55havinglessthanonehundredpercentofitscapitalinvestmentauthorityinvestedin
56qualifiedinvestmentsinthisstateorheldincashorothermarketablesecurities,
57providedaruralfundshallbepermittedtomakedistributionsinamountsnecessaryfor
58theprincipalandinterestpaymentsduetotheleveragesource;or
59 (4)Aruralfundviolatestheprovisionsofsection620.3525,inwhichcasethe
60departmentmayrecaptureanamountequaltotheamountoftheruralfund'scapital
61investmentauthorityfoundtobeinviolationofsuchprovisions.
62
63Forthepurposesofmeetingandmaintainingtheobjectivesestablishedforinvestment
64insubdivisions(1)and(2)ofthissubsection,aruralfund'squalifiedinvestmentsshall
65bemultipliedbyafactorofoneandone-quarterincountieswithfewerthanthirty
66thousandinpopulationandmorethanthirteenthousandinpopulationandshallbe
67multipliedbyafactorofoneandone-halfincountieswithapopulationofthirteen
68thousandorfeweraccordingtothemostrecentdecennialcensus.
69 4.Norecaptureshalloccuruntilaruralfundhasbeengivennoticeof
70noncomplianceandaffordedsixmonthsfromthedateofsuchnoticetocurethe
71noncompliance.
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
7suchcapitalinvestmentinqualifiedinvestments.Forallsubsequentyears,ruralfunds
8shallsubmitanannualreporttothedepartmentwithinninetydaysofthebeginningof
9thecalendaryearduringthecomplianceperiod.Unlesspreviouslyreportedpursuantto
10thissubsection,suchreportsshallalsoinclude:
HB2170 9 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)Arevenueimpactassessmentprojectingstateandlocaltaxrevenueactually
21generatedandprojectedtobegeneratedfromaruralfund'squalifiedinvestments,
22preparedbyanationallyrecognized,third-party,independentfirmengagedbytherural
23fund,usingadynamicforecastingmodelthatprojectsthedirectandindirectstateand
24localtaxrevenueforaperiodofnotlessthantenyears;and
25 (6)Suchotherinformationasrequiredbythedepartment.
26 2.Theprogramauthorizedundersections620.3500to620.3530shallbe
27consideredabusinessrecruitmenttaxcreditundersubdivision(4)ofsubsection2of
28section135.800,andanyruralfundapprovedunderthisprogramshallbesubjecttothe
29provisionsofsections135.800to135.830.
30 3.Onorafterthesixthanniversaryoftheinitialcreditallowancedate,arural
31fundmayapplytothedepartmenttoexittheprogramandnolongerbesubjectto
32regulationundertheprovisionsofsections620.3500to620.3530.Suchrequestshallbe
33onaformdevelopedbythedepartmenttobecompletedbytheruralfund.The
34departmentshallrespondtotheexitapplicationwithinthirtydaysofreceiptofthe
35completedform.Inthedepartment'sevaluationoftheexitapplication,thefactthatno
36creditshavebeenrecapturedandthattheruralfundhasnotreceivedanoticeof
37recapturethathasnotbeencuredundersubsection4ofsection620.3520shallbe
38sufficientevidencetoprovethattheruralfundiseligibleforexit.Thedepartmentshall
39notunreasonablydeny,delay,orwithholditsdeterminationofanexitapplication
40submittedunderthissubsection.Iftheexitapplicationisdenied,thenoticeshallinclude
41thereasonsforsuchdetermination.
42 4.Uponexitfromtheprograminaccordancewithsubsection3ofthissection,in
43theeventthestatesharingratioislessthanone,thestateshallreceiveashareof
44distributionsmadewithrespecttothecapitalinvestmentraisedbytheruralfundequal
45tooneminusthestatesharingratiomultipliedbytheamountoftaxcreditequity
46contributedbytheinvestorsoftheruralinvestorinexchangeforthetaxcredits
47authorizedundersections620.3500to620.3530,providedthattheruralfundmaymake
HB2170 10 48distributionstomakepaymentsontheleveragesourceinanamountnottoexceed
49principalandinterestowedontheleveragesource.Aruralfundshallbecredited
50againstanyamountsduetothestatepursuanttothissubsectionanamountequaltothe
51sumofanytaxcreditsrecapturedundersubsection3ofsection620.3520plusany
52unreturnedprincipalofaqualifiedinvestmentthattheruralfundreasonably
53determinesisnotlikelytoberepaid.
54 5.Pursuanttosection23.253oftheMissourisunsetact:
55 (1)Theprogramauthorizedundersections620.3500to620.3530shallexpireon
56August28,2029,unlessreauthorizedbythegeneralassembly;
57 (2)Sections620.3500to620.3530shallterminateonSeptemberfirstofthe
58calendaryearimmediatelyfollowingthecalendaryearinwhichtheprogramauthorized
59undersections620.3500to620.3530issunset;and
60 (3)Ifsuchprogramisreauthorized,theprogramauthorizedundersections
61620.3500to620.3530shallautomaticallysunsetsixyearsaftertheeffectivedateofthe
62reauthorizationofsections620.3500to620.3530;and
63 (4)Nothinginthissubsectionshallprecludearuralfundthathasreceived
64certifiedcapitalinvestmentauthorityfromthedepartmentpriortotheexpirationof
65sections620.3500to620.3530fromissuingthecapitalinvestmentpursuanttothat
66authorityinaccordancewithsections620.3500to620.3530.
67 6.Thedepartmentmayadoptsuchrules,statementsofpolicy,procedures,
68forms,andguidelinesasmaybenecessarytocarryouttheprovisionsofsections
69620.3500to620.3530.Anyruleorportionofarule,asthattermisdefinedinsection
70536.010,thatiscreatedundertheauthoritydelegatedinthissectionshallbecome
71effectiveonlyifitcomplieswithandissubjecttoalloftheprovisionsofchapter536and,
72ifapplicable,section536.028.Thissectionandchapter536arenonseverableandifany
73ofthepowersvestedwiththegeneralassemblypursuanttochapter536toreview,to
74delaytheeffectivedate,ortodisapproveandannularulearesubsequentlyheld
75unconstitutional,thenthegrantofrulemakingauthorityandanyruleproposedor
76adoptedafterAugust28,2024,shallbeinvalidandvoid.
âś”
HB2170 11