SECOND REGULAR SESSION
95TH GENERAL ASSEMBLY
INTRODUCED BY REPRESENTATIVES NOLTE (Sponsor), NANCE, GRISAMORE, POLLOCK, NASHEED, FUNDERBURK, WILSON (119), WRIGHT, SCHAD, ALLEN, STORCH, FLOOK, SMITH (150), KRAUS, McGHEE, KOMO, KINGERY, SILVEY, HOBBS, BRUNS, ERVIN, TALBOY, GRILL, DIEHL, SUTHERLAND, FRANZ, NIEVES, ZERR, MOLENDORP, CARTER, RUCKER, KELLY, JONES (63), BROWN (50), SPRENG, CORCORAN, KOENIG, JONES (89), ROORDA AND PRATT (Co-sponsors).
4083L.01I D. ADAM CRUMBLISS, Chief Clerk
AN ACT
To amend chapter 620, RSMo, by adding thereto one new section relating to job growth.
Be it enacted by the General Assembly of the state of Missouri, as follows:
Section A. Chapter 620, RSMo, is amended by adding thereto one new section, to be known as section 620.1910, to read as follows:
620.1910. 1. This section shall be known and may be cited as the "Manufacturing Jobs Act".
2. As used in this section, the following terms mean:
(1) "Approval", a document submitted by the department to the qualified manufacturing facility or qualified supplier that states the benefits that may be provided under this section;
(2) "Department", the department of economic development;
(3) "Employee" or "employees", a person or persons employed by a qualified manufacturing facility or qualified supplier;
(4) "Notice of intent", a form developed by the department, completed by the qualified manufacturing facility or qualified supplier and submitted to the department which states the qualified manufacturing facility's or qualified supplier's intent to hire new jobs or retain current jobs and request benefits under this section;
(5) "Qualified manufacturing facility", a business that:
(a) Manufactures goods in Missouri;
(b) Derives more than ten percent of total sales revenues of the facility from goods produced at the facility which are exported outside the United States or sold to the federal government for export outside the United States or that derives more than twenty percent of all total sales revenues of the facility from goods produced at the facility which are exported outside the state of Missouri;
(c) Makes an additional capital investment of at least fifty thousand dollars per full-time employee equivalent retained at the facility;
(d) Manufactures a new product that has not been manufactured in Missouri by the company that owns the facility at any time prior to the date of the notice of intent; and
(e) Continues to manufacture such goods meeting paragraphs (a) to (d) of this subdivision for a period of at least five years from the date of the notice of intent;
(6) "Qualified supplier", a company that:
(a) Derives more than ten percent of the total annual revenues of the company from sales to a qualified manufacturing facility;
(b) Adds five or more new jobs as defined in section 620.1878;
(c) Pays wages for such new jobs that are equal to or exceed county average wage as defined in section 620.1878; and
(d) Provides health insurance to employees and pays at least fifty percent of the premiums of such insurance;
(7) "Taxpayer", any individual or entity subject to the tax imposed in chapter 143, excluding withholding tax imposed by sections 143.191 to 143.265, or the tax imposed in chapter 147, 148, or 153;
(8) "Withholding tax", the state tax imposed by sections 143.191 to 143.265.
3. The department shall respond within thirty days to a qualified manufacturing facility or a qualified supplier who provides a notice of intent to receive benefits under this section with either an approval or a rejection of the notice of intent. Failure to respond on behalf of the department shall result in the notice of intent being deemed an approval for the purposes of this section. A qualified manufacturing facility or qualified supplier who is provided an approval shall be allowed a benefit as provided in this section.
4. A qualified manufacturing facility may, upon approval of a notice of intent by the department, retain fifty percent of the withholding tax from retained jobs for a period of ten years. The method of determining the amount to be withheld shall be prescribed by regulations of the department. Such qualified manufacturing facility shall be eligible for participation in the Missouri quality jobs program in sections 620.1875 to 620.1890, provided the facility meets all qualifications for that program, for all new jobs created at the qualified manufacturing facility.
5. A qualified supplier may, upon approval of a notice of intent by the department, retain all withholding tax from new jobs as defined in section 620.1878 for a period of three years from the date of approval of the notice of intent or a qualified supplier may retain all withholding tax from new jobs as defined in section 620.1878 for a period of five years if the supplier pays wages for the new jobs equal to or greater than one hundred twenty percent of county average wage as defined in section 620.1878.
6. Notwithstanding any provision of law to the contrary, any qualified manufacturing facility that is awarded benefits under this section shall not simultaneously receive tax credits or exemptions under sections 135.100 to 135.150, sections 135.200 to 135.286, section 135.535, or sections 135.900 to 135.906. The benefits available to the qualified manufacturing facility under any other state programs for which the qualified manufacturing facility is eligible and which utilize withholding tax from the new jobs of the qualified manufacturing facility shall first be credited to the other state program before the withholding retention level applicable under this section will begin to accrue. These other state programs include, but are not limited to, the new jobs training program under sections 178.892 to 178.896, the job retention program under sections 178.760 to 178.764, the real property tax increment allocation redevelopment act, sections 99.800 to 99.865, or the Missouri downtown and rural economic stimulus act under sections 99.915 to 99.980. If any qualified manufacturing facility also participates in the new jobs training program in sections 178.892 to 178.896, such qualified manufacturing facility shall not retain any withholding tax that has already been allocated for use in the new jobs training program. Any taxpayer who is awarded benefits under this program who knowingly hires individuals who are not allowed to work legally in the United States shall immediately forfeit such benefits and shall repay the state an amount equal to any withholding taxes already retained.
7. The department may promulgate rules to implement the provisions of this section. Any rule or portion of a rule, as that term is defined in section 536.010, that is created under the authority delegated in this section shall become effective only if it complies with and is subject to all of the provisions of chapter 536 and, if applicable, section 536.028. This section and chapter 536 are nonseverable and if any of the powers vested with the general assembly under chapter 536 to review, to delay the effective date, or to disapprove and annul a rule are subsequently held unconstitutional, then the grant of rulemaking authority and any rule proposed or adopted after August 28, 2010, shall be invalid and void.
8. If a qualified manufacturing facility or qualified supplier fails to comply with all provisions of this section, the department shall issue a final decision to that effect and such facility or supplier shall repay all benefits previously obtained from the state with interest of five percent per annum from the date the benefit was originally received by such facility or supplier. A final decision of the department under this subsection shall be subject to review by the administrative hearing commission under the provisions of chapter 621 and may be further appealed as provided by law.
9. Prior to March first each year, the department shall provide a report to the general assembly including the names of participating qualified manufacturing facilities or qualified suppliers, location of such facilities or suppliers, the annual amount of benefits provided, the estimated net state fiscal impact (direct and indirect new state taxes derived), and the number of new jobs created or jobs retained.
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