This past
year’s legislative sessions in the Missouri and Illinois General
Assemblies produced mixed results for the region.
The RCGA annually develops a comprehensive legislative program for
Missouri, Illinois and federal issues. The government affairs initiatives
of the RCGA are member oriented and volunteer driven. The Public
Policy Council is the volunteer leadership group whose mission is
to review, analyze and make recommendations to the RCGA board of
directors on governmental and public policy issues that affect the
economic development and quality of life of the region.
This year’s legislative sessions in the Missouri and Illinois General
Assemblies produced mixed results for the region. While some of
the region’s priorities were not successful, there were still a
number of significant victories.
Missouri
1. Transportation Bonds will Infuse Critically-Needed Infrastructure
Investments
Recognizing that the state’s highway system is in need of significant
new investments, the General Assembly passed legislation authorizing
the State to issue up to $2.25 billion in bonds over the next four
years will begin to address the issue. The RCGA lobbied for and
drafted one amendment to the legislation (HB 1742, Rep. Koller)
that charges the Department of Transportation to begin drafting
a total transportation plan in the next year. While improving our
state’s highway system is vital to our overall economic health,
so is investing in other modes that contribute to Missouri’s and
the St. Louis region’s ability to be a national center of commerce.
Modes such as transit, rail, aviation, water ports and freight are
all major assets that Missouri–particularly the St. Louis region–has,
but all too often are neglected.
2. Small Businesses will Benefit from Change in Research and Development
Tax Credit Law
A modification this year in the State’s Research and Development
Tax Credit will allow small businesses to take advantage of this
incentive. The change will make this credit transferable – allowing
a taxpayer who cannot utilize the credit to “transfer” the credit
to another taxpayer. Many small companies, particularly in the early
stages, do not generate enough revenue to have a tax liability,
and therefore do not benefit from a tax credit. Under this new law
(SB 894, Sen. Quick), the small company can now benefit with
the transferability clause. One small company that could realize
a benefit from this change is Integrated Protein Technologies (IPT).
IPT is a subsidiary of Monsanto Company that is engaged in cutting
edge pharmaceutical research, with the potential of adding 200 highly
paid jobs to the region. Monsanto is planning to spin this company
off in the near future where it will be a stand-alone company. A
number of states – including Virginia and North Carolina – actively
recruited this life sciences company. With this new law, IPT will
be staying in St. Louis further enhancing our research strengths
and expertise in the region.
3. Economic Development Incentives Remain High Priority in 2001
State tax credits for small, emerging companies around the State,
particularly in economically distressed areas are vital for Missouri
and the St. Louis region’s ability to compete for these companies
because many of them are technology oriented and have high-growth
potential. HB 1566 & 1810 (Rep. Bray and Gibbons)
would have authorized $6 million per year for Capital Tax Credits
and $3 million for the Seed Capital Tax Credit. Both programs have
been extremely valuable in enabling these small companies to leverage
private investment through these tax credits. Over the past few
years, more than 100 companies have used the tax credits—which demonstrates
a high level of entrepreneurial activity in St. Louis and around
the State. On the last day of the session, this legislation was
killed by an unrelated amendment allowing for a State tax deduction
for parochial school tuition.
4. Downtown St. Louis Revitalization Continuing Focus in 2001
One major initiative of the RCGA is the revitalization of the region’s
center city. The St. Louis downtown area recently completed a blueprint
of how to rejuvenate the business and residential core of the region.
The plan is called Downtown NOW! Legislation (SB 827 – Sen. Scott
and HB 1915 – Rep. May) was introduced this year that would
have established a Downtown Revitalization district that would have
had the authority to raise revenues through local sales taxes to
make the improvements. The tax increase would be subject to voter
approval and nine trustees (six from St. Louis County and three
from St. Louis City) would have governed it. A recorded vote never
took place in either the Senate or House on this legislation.
5. Employers Successfully Fight Additional Mandates
Two major pieces of legislation this year that would have placed
additional mandates and costs on the state’s employers were successfully
defeated this year. An amendment to SB 678 (Sen. Wiggins)
would have mandated state jury trials in all discrimination lawsuits,
resulting in large potential costs to employers. Additionally, HB
1569 (Rep. Bray) would have mandated an “equal pay” process
on all Missouri employers. Under this proposal, a system would be
designed to determine jobs of equal skill level and assign an appropriate
pay scale for jobs at that level. This would potentially wreak havoc
on traditionally market-driven mechanisms for determining wages.
6. Statewide Coalition Emerges on Tobacco Settlement
One major issue this year for the Missouri General Assembly was
what the State should do with its $6.7 billion portion of the National
Tobacco Settlement. The RCGA recognized the unique opportunity this
presented and vigorously advocated for a portion of the proceeds
to be invested in Life and Health Sciences research, as many other
states have done. To that end, the RCGA worked with a statewide
coalition that developed a consensus blueprint on how the money
ought to be invested. The final product would have invested the
proceeds in health care, health sciences research, anti-smoking
programs and early childhood education. The RCGA and its coalition
partners supported HJR 61 (Rep. Van Zandt) and SB 549
(Sen. Quick), which would have allowed the people to vote on
the spending plan and set up a separate trust fund to capture the
tobacco payments, respectively. During the final days, the RCGA
worked toward an agreement on the legislation. In the end, partisan
politics prevailed and the session ended with no action on this
important issue.
Other issues…
7. Funding for Bi-State
During House debate on SB 881 (Sen. Wiggins), Rep. Ron Auer
attached an amendment that removes the two-year sunset clause on
the 1/2 cent transportation sales tax in St. Louis City and County.
This action will allow Bi-State Development Agency to receive more
competitive bond rates when seeking long-term debt.
8. Community Comeback Act
A section in HB 1238 (Rep. Hoppe) authorizes the proceeds
of the St. Louis County Use-Tax— if approved by the voters—to be
invested in the older portions of St. Louis County for the purposes
of redevelopment, infrastructure improvements or other economic
development purposes.
9. Research Consortium
Also contained in HB 1238 is language that allows for the
establishment of research consortia in the urban areas for the purposes
of receiving health research grants, including tobacco-related research.
Illinois
1. Sales Tax on Motor Fuel Reduced to Make Costs Competitive
Legislation, SB 1310 (sponsored by Sen. Frank Watson – Dave
Luechtefeld and Rep. Tom Holbrook - Ron Stephens), was passed to
temporarily suspend the state’s share of the gasoline sales tax
revenues for six months. Gasoline sales tax revenues go directly
into the state’s General Fund, so a tax suspension would not
impact road construction. The state’s share of the sales tax
is five percent of the purchase price (the other 1.25 percent goes
to local governments). The Metro-East area legislators deserve much
of the credit for actively supporting and pushing this legislation
throughout the year. Sen. Frank Watson, who has led the charge
on this issue for many years, hosting meetings building coalitions,
and strengthening positions within the Senate, the Governor’s Office,
and the rest of the General Assembly.
2. Quick Take Authority for SWIDA Extended to Provide for Economic
Development
Quick-take authority for the Southwestern Illinois Development Authority
(SWIDA) was to have expired on August 30, 2000. Legislation was
passed and signed into law, SB 1266 (sponsored by Sen. Frank Watson
- Evelyn Bowles - James Clayborne - Dave Luechtefeld and Rep. Tom
Holbrook, Steve Davis, and Ron Stephens), which grants a two-year
extension of the quick take authority. This authority allows for
SWIDA to further economic development and is a necessary tool to
help develop important projects in Madison and St. Clair counties.
Sen. Clayborne, Sen. Watson and Rep. Holbrook
worked both sides of the isle lining up bi-partisan support for
this extension.
3. Quick Take Authority for MetroLink Expansion
SB 1680 (sponsored by Sen. Bill Peterson and Rep. Chuck Hartke)
has passed extending the period of time to January 16, 2001, within
which quick-take powers may be exercised by the Bi-State Development
Agency concerning the Metro Link Light Rail System. This authority
allows for Bi-State to complete the next two phases of Metro-Link
from Southwestern Illinois College to MidAmerica Airport in St.
Clair County. Rep. Jay Hoffman was instrumental in amending
this extension into the omnibus quick take/conveyance of property
legislation.
4. Clean Construction Debris Legislation Will Cut Cost of Redevelopment
Legislation passed, HB 3457 (sponsored by Rep. Brent Hassert and
Sen. Dave Sullivan), which changes the definition of “clean construction
or demolition debris” in relation to what is not considered waste.
The legislation provides that material from certain “clean construction
or demolition debris” projects (on site) may be used (on site) to
form an above ground mound. Re-development projects, such as the
St. Louis Stockyards in East St. Louis, which require demolition,
will be able to utilize this new program.
5. Historic Residences Helps Older Communities Redevelop
Historic Residence legislation passed and was signed into law. The
legislation, HB 3428 (sponsored by Rep. Bob Biggins – Tom Holbrook
and Sen. Steve Rauschenberger), provides that “fair cash value”
represents the value of the property prior to the commencement of
rehabilitation without consideration of any reduction reflecting
value during the rehabilitation work. This legislation allows for
the revival of distressed and older communities who wish to revive
designated historic districts.
6. Housing Legislation Passed to Encourage Low Occupancy Rate
ow income housing legislation passed, SB 1883 (sponsored by Sen.
Bill Peterson and Rep. Mike Smith – Tom Holbrook), which provides
that when assessing a Section 515 low-income housing project based
on actual or probable net, the local assessment officer must use
a vacancy rate of not more than 5%. A housing project that is running
at a low vacancy rate, or showing a high profit margin, would be
benefited with a sort of 5% vacancy rate exemption. The housing
project could have no vacancies but their value would be assessed
as if it had 5% of its rooms vacant. Rep. Tom Holbrook was
one of the main sponsors of this piece of legislation, which is
geared toward housing projects in urban and rural areas of the state.
7. Emergency Telephone Systems Administrative Rules Adopted
Legislation was passed (sponsored by Sen. Frank Watson and Rep.
Bill Black) which provides that businesses shall connect their emergency
telephone system to the public switched network in such a manner
that calls to 9-1-1 results in automatic number and location identification.
Included in the legislation was an exemption for those facilities
that have 9-1-1 capabilities and emergency response teams located
on their work-sites, such as Solutia, Premcorp (formerly Clark Oil),
and Wood River Refinery. The RCGA worked with the Illinois Commerce
Commission (ICC) and other business organizations in developing
regulatory rules to implement these exemptions. The Joint Committee
on Administrative Rules (JCAR) adopted our recommended language.
Special thanks to Sen. Frank Watson and Rep. Tom Ryder
who helped negotiate our position with ICC staff and JCAR committee
members.
The St. Louis RCGA had several successes at the federal level as
well. A small delegation of RCGA volunteers and staff – led by Board
Chairman John Bachmann – spent two days in Washington DC
in June advocating for a number of initiatives and appropriations
for the region. The delegation met one-on-one with members of our
regional congressional delegation. Among our successes;
American Community Renewal Act – This legislation provides
for tax breaks and other incentives for private investment in economically
distressed areas. The RCGA worked closely with congressman Jim Talent
on this legislation. Revitalizing the region’s core city is instrumental
to reviving the entire region. The specific provisions of this legislation
includes elimination of capital gains taxes, brownfields remediation
tax incentives and a tax credit for rehabilitating commercial property.
The RCGA believes the city of St. Louis can capitalize on this legislation
to maximize and maintain our redevelopment efforts in the region’s
center city.
Permanent Normal Trade Relations with China (PNTR) – This
legislation eliminates the annual authorization of normal trade
status with China and will expand our region’s businesses’ global
economic opportunities.
Melvin Price Support Center Conversion – This legislation
conveys all the property at the Charles Melvin Price Support Center
to the Port District via the U.S. Department of Transportation MARAD
Port Conveyance Program for redevelopment purposes. The redevelopment
plan could mean the creation of 1,000 new jobs as well as continuing
some of the military activities.
Key Appropriations:
$2.5 million to Downtown NOW! for revitalization efforts of the
Old Post Office district.
$2 million for the renovation of the McDonnell Planetarium.
$2 million to Jefferson County for water and sewer improvements.
$3 million
to the City of St. Louis to eliminate sewer overflows.
$1 million
to the Illinois EPA for the “Illinois Rivers 2020” restoration
program.
$100,000 to
the city of Benton for downtown revitalization.
$300,000 to
Southern Illinois University at Carbondale for development of
a university research park.
$2 million
for the Lewis & Clark Historic traveling exhibition.
Forward Metro St. Louis will be a dynamic coalition
of the region’s business leadership, which will—through a rigorous
and inclusive process—set a bold, focused regional public policy
agenda and build consensus for that agenda by reaching out to
the community seeking regional partners and collaborators—both
civic and public sectors.
The members of Forward Metro St. Louis will be pro-active
on the issues on which there is regional consensus. Furthermore,
there will be a strong effort to mobilize broad-based support
and energy within the civic and public sector communities for
these issues. This will involve the members—and their civic partners—vigorously
lobbying the public officials at the local, state and federal
levels. By engaging in this pro-active public policy advocacy,
Forward Metro St. Louis will also seek to create greater accountability
among the public officials.
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