Bill Text: MO HB1495 | 2014 | Regular Session | Amended

Missouri House Bill 1495 (Prior Session Legislation)

Bill Title: Requires Missouri Technology Corporations to distribute money to specified early stage business development corporations for grants to newly formed businesses that have the potential for sales or development of new technologies

Spectrum: Partisan Bill (Republican 2-0)

Status: (Engrossed - Dead) 2014-05-15 - House Message (H) [HB1495 Detail]

Download: Missouri-2014-HB1495-Amended.html

5283S.10F

SENATE SUBSTITUTE

FOR

SENATE COMMITTEE SUBSTITUTE

FOR

HOUSE BILL NO. 1495

AN ACT

To amend chapter 620, RSMo, by adding thereto one new section relating to early stage business development corporations.

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 620.2700, to read as follows:

620.2700. 1. Beginning in fiscal year 2015, for four consecutive fiscal years, the state shall be authorized to pay, subject to appropriation each of those four years, the sum of nine million dollars per year to the Missouri technology corporation (MTC) for payments pursuant to this section to Early Stage Business Development Corporations (ESBDCs) in six regions of the state in the following amounts:

(1) Two million dollars for each fiscal year for each of the following metropolitan statistical areas (MSAs), with the funds being split between ESBDCs operating in the MSA:

(a) The largest MSA in the state;

(b) The second largest MSA in the state;

(d) A MSA containing a home rule city with more than one hundred eight thousand but fewer than one hundred sixteen thousand inhabitants; and

(2) Five hundred thousand dollars for each fiscal year for each of two ESBDCs with their operating headquarters in either rural areas of Missouri or in MSAs other than one of the four MSAs set forth in subdivision (1) of this subsection, provided that, under this subsection, no more than one ESBDC is designated in a county or MSA.

2. An ESBDC is a Missouri not-for-profit corporation designated by the Missouri Technology Corporation (MTC) as a recipient of funds under this section which provides grants to early stage businesses selected from an application process with substantial operations in Missouri or which will begin operating in Missouri upon receipt of the grant and have potential regional, national, or international sales, or potential development of new technologies. To be eligible for designation under this section, the Missouri not-for-profit corporation shall have a program providing financial assistance or business services to early stage for-profit companies without taking an equity interest in the for-profit companies. Grants shall not be in the form of loans, except in the case of ESBDCs designated under subdivision (2) of subsection 1 of this section; ESBDCs so designated may provide loans or grants. Grants provided by an ESBDC to for-profit early stage companies shall not exceed two hundred thousand dollars per company. For ESBDCs designated under subdivision (2) of subsection 1 of this section, loans may not exceed two hundred thousand dollars per company. ESBDCs designated by the MTC under subdivision (2) of subsection 1 of this section may, in addition to the other purposes authorized herein, provide grants to early stage companies for marketing agricultural products, conducting agricultural research, and providing services to improve crop or livestock production.

3. (1) In order to be eligible for designation by the MTC under this section, a Missouri not-for-profit corporation described in subdivision (1) of subsection 1 of this section shall have received in donations at least the sum of five hundred thousand dollars at any time prior to designation from sources other than the state, MTC, or public funds, such donations to provide grants to early stage businesses with substantial operations in Missouri or which will begin operating in Missouri upon receipt of the grant and have potential regional, national, or international sales, or potential development of new technologies. In the event a Missouri not-for-profit corporation described in this subdivision has received five hundred thousand dollars in such donations prior to designation, the MTC shall be authorized to pay to that Missouri not-for-profit corporation, subject to appropriation, five hundred thousand dollars per year pursuant to this section. If a Missouri not-for-profit corporation described in this subdivision has received more than five hundred thousand dollars in such donations prior to designation, the MTC shall be authorized to pay, subject to appropriation, an amount equal to the qualifying donations received, up to two million dollars per year to that Missouri not-for-profit corporation pursuant to this section.

(2) In order to be eligible for designation by the MTC under this section, a Missouri not-for-profit corporation described in subdivision (2) of subsection 1 of this section shall have received in donations at least the sum of one hundred fifty thousand dollars from sources other than the state, MTC, or public funds at any time prior to designation, such donations to provide grants or loans to early stage businesses.

4. (1) In order to continue to be designated by the MTC, an ESBDC described in subdivision (1) of subsection 1 of this section shall receive donations from sources other than the state, MTC, or public funds an amount of at least five hundred thousand dollars every four years after designation. Qualifying donations received in excess of the annual amount such ESBDC was previously eligible to receive under this section shall increase the annual amount such ESBDC is eligible to receive, up to two million dollars per fiscal year. If an ESBDC receives donations in an amount less than the annual amount such ESBDC was previously eligible to receive under this section, such ESBDC shall become eligible to receive an annual amount not more than the amount of eligible donations received in the previous four years.

(2) In order to continue to be designated by the MTC, an ESBDC described in subdivision (2) of subsection 1 of this section shall receive donations from sources other than the state, MTC, or public funds an amount of at least seventy-five thousand dollars every four years after designation.

5. A not-for-profit corporation seeking to be designated or to continue to be designated may include funds received by partners of a coalition, provided such funds are designated by the partners of the coalition to be expended for grants to early stage businesses.

6. The amount of money appropriated to a MSA described in subdivision (1) of subsection 1 of this section shall be split between designated ESBDCs in the MSA in proportion to the amount each ESBDC is eligible to receive.

7. If, in any year, an ESBDC is not designated in one of the six regions described in subsection 1 of this section, the amount that would have been paid to such region shall be split evenly among the regions with a designated ESBDC. In the event that less than nine million dollars is appropriated under this section in any one year, then the funds appropriated shall be distributed as follows:

(1) Each MSA described in subdivision (1) of subsection 1 of this section receiving two-ninths of the amount appropriated; and

(2) Each ESBDC described in subdivision (2) of subsection 1 of this section receiving one-eighteenth of the amount appropriated.

8. Each Missouri not-for-profit corporation seeking to be designated by the MTC under this section as an ESBDC shall apply for such designation by no later than December thirty-first of the fiscal year for which funds are sought. The MTC shall make a decision regarding whether to approve such application for designation within sixty days of the date of application and may extend the time for designation a maximum of an additional thirty days. Designation by the MTC under this section of an ESBDC shall be for a period of two consecutive years of funding, except that the MTC may rescind a designation after the first year if in its discretion it finds that an ESBDC is misusing funds or not following the provisions of this section. The MTC may, at its discretion, approve an application for a provisional designation as an ESBDC for a period of six months. No provisionally designated ESBDC shall receive funds authorized by this section prior to its full designation.

9. Missouri not-for-profit corporations meeting the requirements of this section, including those previously designated under this section by the MTC, may apply for designation for an additional two-year period following the first two-year period. The same standards for designation and requirements for ESBDCs and timing of applications and MTC designations set forth in this section shall apply to the second two-year period.

10. The MTC shall evaluate the following criteria in determining whether to designate a Missouri not-for-profit corporation under this section:

(1) Potential growth of jobs in Missouri;

(2) Development of Missouri early stage businesses which can lead to regional, national, or international sales;

(3) Total of donations received from sources other than the state, MTC, or public funds;

(4) Level of business support services provided by the community in which the applicant operates; and

(5) History, if any, of success of companies funded by the not-for-profit in building revenue and attracting capital.

11. If funds are appropriated by the state under this section, such funds shall be segregated by the MTC and paid solely under this section and for no other purpose.

12. No more than ten percent of funds provided under this section to an ESBDC may be used for administrative expenses or operations. Funds provided under this section may not be used by ESBDCs for building a long-term endowment.

13. Companies that have received a grant under this section shall repay such amount if the company moves its headquarters out of this state or moves a substantial number of jobs created in this state to a location outside of this state within one year of receiving funds under this section.

14. State funds under this section shall not be expended, paid, or granted to or on behalf of an existing or proposed activity that involves abortion services, as that term is defined in section 196.1127. Any business that engages in an activity that involves abortion services, as that term is defined in section 196.1127, shall not be eligible for funds under this section. This section shall be subject to the provisions of section 38(d) of article III of the Missouri Constitution.

15. The provisions of section 23.253 notwithstanding:

(1) The provisions of the new programs authorized under this section shall automatically sunset four years after the effective date of this act unless reauthorized by an act of the general assembly;

(2) If such program is reauthorized, the program authorized under this section shall automatically sunset eight 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 programs authorized under this section sunset.