SECOND REGULAR SESSION
HOUSE COMMITTEE SUBSTITUTE FOR
HOUSE BILL NO. 1675
95TH GENERAL ASSEMBLY
4083L.03P D. ADAM CRUMBLISS, Chief Clerk
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) "NAICS", the 1997 edition of the North American Industry Classification System as prepared by the Executive Office of the President, Office of Management and Budget;
(5) "New job", the number of full-time employees located at the project facility that exceeds the project facility base employment less any decrease in the number of full-time employees at related facilities below the related facility base employment. No job that was created prior to the date of the notice of intent shall be deemed a new job. An employee that spends less than fifty percent of the employee's work time at the facility is still considered to be located at a facility if the employee receives his or her directions and control from that facility, is on the facility's payroll, one hundred percent of the employee's income from such employment is Missouri income, and the employee is paid at or above the industry average wage for Missouri as determined by the department using NAICS industry classifications;
(6) "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;
(7) "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;
(8) "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;
(c) Pays wages for such new jobs that are equal to or exceed industry average wage for Missouri as determined by the department using NAICS industry classifications; and
(d) Provides health insurance to employees and pays at least fifty percent of the premiums of such insurance;
(9) “Retained job”, the number of full-time employees located at the project facility that existed in the taxable year immediately preceding the year in which application for the program is made;
(10) “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;
(11) “ 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 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 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 industry average wage for Missouri as determined by the department using NAICS industry classifications.
6. The total aggregate amount of retained withholding tax authorized under this section shall not exceed thirty-five million dollars per year.
7. 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. Subsection 5 of section 285.530 shall not apply to taxpayers awarded benefits under this program.
8. 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.
9. Under section 23.253, of the Missouri sunset act:
(1) The provisions of the new program authorized under this section shall automatically sunset six years after the effective date of this section unless reauthorized by an act of the general assembly; and
(2) If such program is reauthorized, the program authorized under this section shall automatically sunset twelve years after the effective date of the reauthorization of this section; and
(3) This section shall terminate on September first of the calendar year immediately following the calendar year in which the program authorized under this section is sunset.
10. 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.
11. 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.