SS SB 578 -- PORT AUTHORITIES

SPONSOR:  Shields (Flook)

COMMITTEE ACTION:  Voted "do pass" by the Committee on Job
Creation and Economic Development by a vote of 11 to 0.

This substitute changes the laws regarding port authorities.  In
its main provisions, the substitute:

(1)  Authorizes every local and regional port authority, except
those located in Clay County, to:

(a)  Establish a port improvement district;

(b)  Carry out certain specified projects;

(c)  Levy, upon voter approval, a sales and use tax, a real
property tax, or both within the boundaries of the district for
the purpose of paying project costs.  Railroad property cannot be
taxed unless the property's owner agrees to the levy in writing.
The sales tax must be levied in increments of one-eighth of 1%
but cannot exceed 1%; and

(d)  Pledge all revenues generated by any district and any other
port authority revenue source to the repayment of outstanding
obligations;

(2)  Requires any matching grants awarded by the Highways and
Transportation Commission under the Port Capital Improvement
Program to be transportation related;

(3)  Authorizes a local and regional port authority that is a
political subdivision to issue revenue bonds to finance port
improvement projects;

(4)  Requires any expenditure that is more than $25,000 to be
competitively bid by the port authority;

(5)  Establishes the Port Improvement District Act which allows a
port authority to establish one or more port improvement
districts within its boundaries for the purpose of funding
qualified project costs associated with an approved port
authority improvement project;

(6)  Specifies the procedures for forming a district, the
notification process of public hearings, and the procedures for
terminating a district;

(7)  Requires the board of a port authority to submit an annual
report regarding the district's services provided and revenues
collected and expended during the fiscal year and specifies that
the report must be submitted to the municipal or county clerk and
the Department of Transportation within 120 days after the port
authority's fiscal year ends and to the State Auditor.

FISCAL NOTE:  No impact on state funds in FY 2011, FY 2012, and
FY 2013.

PROPONENTS:  Supporters say that the bill provides the necessary
authority to establish port authority districts, which are
similar to a transportation development or community improvement
districts.  These districts will not work for a port authority
because they do not address the very specific needs of a port,
which has historical and environmental issues because it tends to
be in the oldest part of a city.  This is a tax that the owners
within the port impose on themselves, and the resulting revenue
will be used to improve the area.

Testifying for the bill were Representative Komo for Senator
Shields; Missouri Chamber of Commerce and Industry; City of
Kansas City; and Vincent P. Gauthier, Port Authority of Kansas
City.

OPPONENTS:  There was no opposition voiced to the committee.

Missouri House of Representatives
95th General Assembly, 2nd Regular Session
Last Updated September 14, 2010 at 3:14 pm