SB 466
Adopts the Prosperity States Compact
LR Number:
Last Action:
3/29/2017 - Hearing Conducted S Government Reform Committee
Journal Page:
Calendar Position:
Effective Date:
August 28, 2017

Current Bill Summary

SB 466 - This act adopts the Prosperity States Compact, an interstate agreement for the creation of political subdivisions ("districts") which are exempt from state and federal laws not otherwise made continually applicable by the Prosperity States Compact or by federal supremacy. The Compact also places certain limits to districts' authority to govern and raise public funds, in addition to those limitations that are ordinarily placed on political subdivisions, including a ban on the taxation of district residents.

Districts are municipal corporations with the power to form contracts and be party to lawsuits. Districts are led by a board of seven administrators who serve four year terms. A process is created for the board to create and administer district bylaws, ordinances, policies, and procedures. All of the board's meetings and records are open.

The authority of the district government is limited to certain law enforcement activities, the furnishing of transportation, utility, and transmission infrastructure, the operation of a municipal court, the borrowing of money in accordance with other limitations placed upon borrowing by this act, the power to accept certain gifts of real and personal property, and other incidental activities that are necessary for government as determined by the board. The district government is prohibited from exercising any government function of taxation, eminent domain, civil property forfeiture unless the forfeiture is based in a criminal violation and the forfeiting party has been convicted of that violation, establishing or enforcing any monopoly or cartel, accepting certain gifts, delegating all or any portion of its authority in any manner other than which it is permitted to do so by the act, or permitting any other unit of government to exercise authority within the district, except as permitted to do so by the act.

The law enforcement authorities of the State of Missouri and the United States are given certain authority to enforce laws and pursue suspects within the district.

A mechanism for setting and collecting fees for public services used by residents of districts is created.

The usage of eminent domain within the districts by outside persons, government units, agencies, or political subdivisions is restricted.

Within six months of the formation of a district, the board will hold one or more public hearings to decide whether, how, and when to promulgate and enforce regulations. The purpose of these regulations is restricted to those which safeguard public health and safety as this purpose is defined in the act. A mechanism is created for enacting and promulgating such regulations. Each regulation must be accompanied by a regulatory impact statement describing the reasons why such regulation is necessary and describing the desired effect of the regulation. A process for assessing and reviewing these statements is created. Every such regulation shall automatically expire five years after the date of its adoption unless extended by means described in the act.

Subject to certain exceptions, every state law that extends to, applies to, penalizes, prosecutes, taxes, regulates, or can otherwise be based on any condition, state of affairs, person, entity, service, property, action or omission located, committed, or occurring in a district is deemed repealed and held for naught within the boundaries of a district. Also subject to certain exceptions, every federal law that is capable of being be preempted, superceded, repealed, or held for naught is also so repealed within the districts.

A process to establish, expand, and withdraw from districts is created. A method of calculating the value of land for the purpose of expanding districts is created and prescribed. Processes are also established by which member districts are to respond to adverse federal legal actions, and by which property within districts are to be encumbered by liens created by the act. A process is also established by which county governments may opt out of having their territories included in created or expanded districts.

The formation and expansion of districts shall be subject to the review process used by the federal government when examining direct foreign investment in the United States for the purpose of national security.

The Prosperity States Compact Commission is established when at least two members are contractually bound to this compact. This Commission has various powers and duties relating to the administration and coordination of compact members' activities. The compact regulates the selection, service, and dismissal of commissioners.

The compact contains a severability clause.