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FEBRUARY 19, 2009
Missouri Economic Development Bill Passes House; Senate Modifies Provisions
On February 5th, the Missouri House of Representatives, by a vote of 151-5, passed House Bill 191 which expands several economic development programs that are high priorities on the RCGA's 2009 Missouri Legislative Agenda. The House legislation eliminates the $60 million tax credit cap on the Missouri Quality Jobs Program, the State's most successful program to attract companies and aid in the expansion of current Missouri companies. The bill, sponsored by Rep. Tim Flook (R-Liberty), also expands the amount of Missouri Quality Jobs tax credits that can be used to retain companies in the State. A $5 million Angel Tax Credit, one of the components of the RCGA's "Grow Me State" initiative, is also contained in House Bill 191. In addition, the bill would raise the state New Markets Tax Credit program from $12 to $27.5 million and would double the Small Business Incubator Tax Credit program to $1 million. The Research and Development Tax Credit would be revived and expanded to $10 million for use by agricultural biotechnology, pharmaceutical and aerospace companies.
On February 11th, the Senate Economic Development Committee passed substitutes for House Bill 191 and its companion bill Senate Bill 45 , sponsored by Rep. David Pearce (R-Warrensburg) which also addresses top RCGA legislative priorities. The two key differences between House Bill 191 and Senate Bill 45 are that the Senate would place a cap of $120 millon on the Missouri Quality Jobs Program, and would it would reduce the level of the Missouri Historic Preservation Tax Credit, by lowering the tax credit from 25% to 20% of eligible rehabilitation expenses. The Historic Preservation Tax Credit has stimulated $5 billion in investment in downtown St. Louis and made Missouri the top-ranked state in the use of the federal historic tax credit. The RCGA has joined with other historic preservation advocates to work with Senate leadership to try to preserve the value of the historic tax credit program.
The Senate brought up Senate Bill 45 on Tuesday, February 17th for initial discussion, and it was placed back on the Senate calendar to await further action.
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| "Grow Me State" Initiative Heard By House Economic Development Committee
The top RCGA priority for the Missouri legislative session, the "Grow Me State" Initiative, was heard by the House Job Creation and Economic Development Committee on February 3rd. The legislation contained in House Bill 189, sponsored by Rep. Tim Flook (R-Liberty) and co-sponsored by 18 legislators from across the State, seeks to close the capital formation gap facing Missouri and attract fast-growing advanced technology companies. Missouri is currently at a competitive disadvantage to neighboring states in attracting these entrepreneurial firms (see below chart), because it lacks the program portfolios of other state.
Per Capita Committments to Capital Formation Programs |
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Jay DeLong, RCGA Vice President of New Ventures and Capital Formation, and Michael Nichols, Vice President of Research and Economic Development for the University of Missouri System, explained the bill at the Committee's hearing. The "Grow Me State" Initiative would establish a seed capital technology business finance program and a proof of concept technology business finance program. The $10 million Seed Capital Revolving Fund would allow the State to co-invest in seed and early stage advanced technology businesses in Missouri to achieve their next level of growth. The funds could be used for IP development, prototype creation and business operations. The $1.25 million Proof of Concept forgivable loan program would award small advanced technology companies up to $75,000 to help commercialize their products and research. A company would repay the Missouri Technology Corporation double the amount of the loan upon successfully bringing their product to the marketplace. The bill would also establish a $5 million Angel Tax Credit program. Angel investors in advanced technology start-up companies would be eligible to receive a 30% tax credit for investing in a qualified small business.
Testifying in favor of the bill were representatives from the Missouri Chamber of Commerce, Associated Industries of Missouri and the Greater Kansas City Chamber of Commerce. The RCGA and the coalition of business organizations continue to meet with House Leadership to keep the "Grow Me State" initiative moving through the House. More information on the Grow Me State Initiative can be found by downloading this booklet.
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Focus on Illinois: Senator Frank Watson Leaves Strong Legacy For Economic Development in Southwestern Illinois
Illinois State Senator Frank Watson (R-Greenville), a true champion for economic development in Southwestern Illinois, retired on February 16th. Senator Watson was awarded the RCGA's Lewis and Clark Statesman Award several times to honor his leadership for this region, and he was an active presence at the RCGA's Illinois Public Affairs Committee meetings. The owner of Watson's Drug Store in Greenville, he was a strong voice for business from the day he entered the House of Representatives in 1979. He was elected to the Senate in 1982 and became Senate Minority Leader in 2003.
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| Illinois Senator Frank Watson received the 2008 RCGA Lewis and Clark Statesman Award for his leadership for the economic development of Southwestern Illinois. |
Senator Watson authored and passed the legislation to create the Illinois EDGE program in 1999 to attract and retain businesses to Illinois. This tax credit program led Site Selection magazine to name Illinois the top state for economic development in 2001 and 2002. Senator Watson led the charge on medical malpractice reform to keep access to high-quality health care in downstate Illinois. The Bright State and College Illinois savings programs to aid in the funding of higher education exist because of his legislative efforts. He also established a School Construction Grant Program that built new schools across the region. He strongly supported the Illinois coal industry, passing legislation to assist coal operations and to encourage coal to energy plants.
The RCGA salutes Senator Watson for his dedication to Southwestern Illinois and wishes he and his wife Susan all the best after a busy and productive Senate career.
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| Bank of America Sponsors First RCGA Legislative Breakfast in Jefferson City
More than 35 Missouri legislators came to breakfast with RCGA members on February 11th in Jefferson City. The breakfast, sponsored Bank of America and hosted by RCGA Board Member Eric Cowan, Marilyn Bush and Pat Holden, allowed legislators and RCGA members to talk informally about the week's issues at the Capitol. The RCGA hosts breakfasts every other week in Jefferson City during February, March, and April.
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Pat Holden, Bank Of America's Senior Vice President - State and Local Lobbyist and Senate Assistant Minority Leader Rita Days greet each other at the RCGA Legislative Breakfast.
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| Rep. Mike Leara, Eric Cowan, Bank of America's Principal - Public Finance, and Rep. James Morris discuss the week's legislative issues. |
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| Rep. Scott Dieckhaus, Rep. Dwight Scharnhorst and Rep. Pat Yaeger enjoy getting together at the RCGA Legislative Breakfast. |
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The RCGAdvocate is published periodically to inform RCGA members and government officials about important public policy matters at the state, federal and local levels. It seeks to provide timely, in-depth coverage on regional issues, and, at times, to call RCGA members to action. We welcome your comments and suggestions.
Richard C.D. Fleming ~ President & CEO ~ (314) 444-1100 ~ dfleming@stlrcga.org
Chip Casteel ~ Senior V.P. of Public Policy ~ (314) 444-1107 ~ ccasteel@stlrcga.org
Susan Stauder ~ V.P. of Infrastructure & Public Policy ~ (314) 444-1155 ~ sstauder@stlrcga.org
Eric Schneider ~ Senior Director of Public Policy Research ~ (314) 444-1148 ~ eschneider@stlrcga.org
Kevin Riggs ~ Director of Illinois Government Affairs ~ (314) 444-1108 ~ kriggs@stlrcga.org
Christine Snively ~ Project Manager ~ (314) 444-1144 ~ csnively@stlrcga.org
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