99.1045. Disbursement of project costs, approval required by agriculture and small business development authority--application, contents--cap on disbursements--time limitations on disbursements--rulem - Missouri Statutes

Disbursement of project costs, approval required by agriculture andsmall business development authority--application, contents--cap ondisbursements--time limitations on disbursements--rulemakingauthority.

99.1045. 1. A municipality shall submit an application to theMissouri agricultural and small business development authority createdpursuant to section 348.020, RSMo, for approval of the disbursement of theproject costs of one or more development projects from the statesupplemental rural development fund. In no event shall any approvalauthorize a disbursement of one or more development projects from the statesupplemental rural development fund which exceeds the allowable amount ofother net new revenues derived from the development area. An applicationsubmitted to the Missouri agricultural and small business developmentauthority shall contain the following, in addition to the items set forthin section 99.1027:

(1) An estimate that one hundred percent of the payments in lieu oftaxes and economic activity taxes deposited to the special allocation fundmust and will be used to pay development project costs or obligationsissued to finance development project costs to achieve the objectives ofthe development plan. Contributions to the development project from anyprivate not-for-profit organization or local contributions from taxabatement or other sources may be substituted on a dollar-for-dollar basisfor the local match of one hundred percent of payments in lieu of taxes andeconomic activity taxes from the fund;

(2) Identification of the existing businesses located within thedevelopment project area and the development area;

(3) The aggregate baseline year amount of state sales tax revenuesand the aggregate baseline year amount of state income tax withheld onbehalf of existing employees, reported by existing businesses within thedevelopment project area. Provisions of section 32.057, RSMo,notwithstanding, municipalities will provide this information to thedepartment of revenue for verification. The department of revenue willverify the information provided by the municipalities within forty-fivedays of receiving a request for such verification from a municipality;

(4) An estimate of the state sales tax increment and state income taxincrement within the development project area after redevelopment;

(5) An affidavit that is signed by the developer or developersattesting that the provision of subdivision (2) of subsection 3 of section99.1027 has been met and specifying that the development area would not bereasonably anticipated to be developed without the appropriation of theother net new revenues;

(6) The amounts and types of other net new revenues sought by theapplicant to be disbursed from state supplemental rural development fundover the term of the development plan;

(7) The methodologies and underlying assumptions used in determiningthe estimate of the state sales tax increment and the state income taxincrement;

(8) Any other information reasonably requested by the Missouriagricultural and small business development authority.

2. The Missouri agricultural and small business development authorityshall make all reasonable efforts to process applications within sixty daysof receipt of the application.

3. The Missouri agricultural and small business development authorityshall make a determination regarding the application for a disbursementfrom the state supplemental rural development fund and shall forward suchdetermination to the director of the department of economic development.In no event shall the amount of disbursements from the state supplementalrural development fund approved for a project, in addition to any otherstate economic development funding or other state incentives, exceed theprojected state benefit of the development project, as determined by thedepartment of economic development through a cost-benefit analysis. Anypolitical subdivision located either wholly or partially within thedevelopment area shall be permitted to submit information to the departmentof economic development for consideration in its cost-benefit analysis.Upon approval of state supplemental rural development financing, acertificate of approval shall be issued by the department of economicdevelopment containing the terms and limitations of the disbursement.

4. At no time shall the annual amount of other net new revenuesapproved for disbursements from the state supplemental rural developmentfund exceed twelve million dollars.

5. Development projects receiving disbursements from the statesupplemental rural development fund shall be limited to receiving suchdisbursements for fifteen years, unless specific approval for a longer termis given by the director of the department of economic development, as setforth in the certificate of approval; except that, in no case shall theduration exceed twenty-five years. The approved term notwithstanding,state supplemental rural development financing shall terminate whendevelopment financing for a development project is terminated by amunicipality.

6. The municipality shall deposit payments received from the statesupplemental rural development fund in a separate segregated account forother net new revenues within the special allocation fund.

7. Development project costs may include, at the prerogative of thestate, the portion of salaries and expenses of the department of economicdevelopment, the Missouri agricultural and small business developmentauthority, and the department of revenue reasonably allocable to eachdevelopment project approved for disbursements from the state supplementalrural development fund for the ongoing administrative functions associatedwith such development project. Such amounts shall be recovered from othernet new revenues into the state supplemental rural development fund createdpursuant to section 99.1048.

8. A development project approved for state supplemental ruraldevelopment financing may not thereafter elect to receive tax incrementfinancing pursuant to the real property tax increment allocationredevelopment act, sections 99.800 to 99.865, and continue to receive statesupplemental rural development financing pursuant to sections 99.1000 to99.1060.

9. The Missouri agricultural and small business development authorityshall promulgate rules and regulations and publish forms to implement theprovisions of this section and section 99.1048.

10. Any rule or portion of a rule, as that term is defined in section536.010, RSMo, that is created under the authority delegated in thissection and section 99.1048 shall become effective only if it complies withand is subject to all of the provisions of chapter 536, RSMo, and, ifapplicable, section 536.028, RSMo. This section, section 99.1048, andchapter 536, RSMo, are nonseverable and if any of the powers vested withthe general assembly pursuant to chapter 536, RSMo, to review, to delay theeffective date, or to disapprove and annul a rule are subsequently heldunconstitutional, then the grant of rulemaking authority and any ruleproposed or adopted after August 28, 2003, shall be invalid and void.

(L. 2003 H.B. 289)