SECOND REGULAR SESSION

HOUSE BILL NO. 1865

96TH GENERAL ASSEMBLY


 

 

INTRODUCED BY REPRESENTATIVES BARNES (Sponsor) AND SOLON (Co-sponsor).

6084H.02I                                                                                                                                                  D. ADAM CRUMBLISS, Chief Clerk


 

AN ACT

To amend chapters 67 and 620, RSMo, by adding thereto five new sections relating solely to due diligence given in consideration of economic development incentives.




Be it enacted by the General Assembly of the state of Missouri, as follows:


            Section A. Chapters 67 and 620, RSMo, are amended by adding thereto five new sections, to be known as sections 67.095, 620.007, 620.008, 620.009, and 620.019, to read as follows:

            67.095. 1. A political subdivision shall hold a public hearing on the issuance of any of the political subdivision's bonds that have a pledge of future appropriations securing the bond's debt service before issuing any such bond. Notice of the public hearing shall be published once each week for two consecutive weeks in a newspaper of general circulation located in the political subdivision and qualified to publish legal notices under section 493.050. If there is no such newspaper located in the political subdivision, the notice of public hearing shall be published in a newspaper of general circulation located in the county where the political subdivision is located and qualified under section 493.050. If there is no such newspaper in the county, the notice of public hearing shall be published in a newspaper of general circulation located in an adjoining county and qualified under section 493.080. The last insertion of the notice shall not be less than ten days before the date stated for the public hearing.

            2. Such notice provided pursuant to this section shall inform the public that:

            (1) Issuance of the bond may result in adverse consequences for the political subdivision, including a reduction in the political subdivision’s credit rating or an increase in the cost of future borrowing by the political subdivision; and

            (2) That a successful bond may have a positive impact on the community.

            3. Any political subdivision holding a public hearing as provided in subsection 1 of this section shall allow public testimony and such hearing shall be held at a regularly scheduled meeting of the governing body of the political subdivision.

            4. This section shall not apply to refinancing of current indebtedness.

            620.007. The department of economic development shall require applicants for economic development assistance to provide third-party verification of financial information when such information is submitted to the department. For the purposes of this section, third-party verification shall mean a statement from any financial institution that has no financial interest in the economic development incentives the applicant is seeking.

            620.008. The department of economic development shall require key officers of any start-up company applying for economic development assistance. The department may require additional fees to pay for such checks. In complying with this section, the department shall promulgate rules defining “key officers” and “start-up company”.

            620.009. 1. The department of economic development shall share either by electronic copy of the original source or as close as a reproduction as possible all information it has about a company seeking state and local economic development incentives with all local governments, local not-for-profit economic development organizations, and economic development officials competing for the company's business.

            2. Local governments, local not-for-profit economic development organizations, and economic development officials working with a company seeking state or local economic development incentives shall also share with the department of economic development all negative information received about a company.

            3. In complying with the provisions of this section, all adverse information received about a company seeking state or local economic development incentives shall be subject to the provisions of section 620.014.

            4. In working with local governments, local not-for-profit economic development organizations, and economic development official on projects, the department of economic development shall designate one or more persons as the local contact for each project. The designated contacts shall be the persons through which all information required in this section shall be provided. Such persons shall be required to sign a non-disclosure agreement agreeing not to divulge information, including company name, acquired about an applicant for economic development incentives to the general public.

            620.019. The department of economic development shall develop a five-star system to apprise local governments of the department's opinion on proposals for economic development incentives that combine local and state resources.