SS#3/HCS/HB 268 - This act establishes provisions relating to the promotion of business development. RIGHT-TO-START ACT By no later than June 30, 2025, and annually thereafter, this act requires the Commissioner of Administration to file a report with the General Assembly that includes information on contracts awarded to businesses that have been in operation for less than three years, as described in the act. This act also requires the Commissioner of Administration, in conjunction with the Office of Entrepreneurship, which is established by the act, to file a report with the General Assembly making recommendations on improving access and resources for new Missouri businesses that have been in operation for less than three years, including minority-owned, women-owned, and veteran-owned businesses. (Section 34.195) This provision is identical to a provision in HCS/SS/SCS/SBs 3 & 69 (2023) and SB 593 (2023), and is substantially similar to a provision in HB 237 (2023), HCS/SS/SB 807 (2022), SS/HCS/HB 2587 (2022), and HCS/HB 1590 (2022). CHILD CARE CONTRIBUTION TAX CREDIT This act establishes the "Child Care Contribution Tax Credit Act". For all tax years beginning on or after January 1, 2024, this act authorizes a tax credit in an amount up to 75% of the taxpayer's contribution to a child care provider. A child care provider shall issue the taxpayer a contribution verification within sixty days of receiving a contribution, and shall remit such verification to the Department of Economic Development. A failure to issue a contribution verification to a taxpayer shall entitle the taxpayer to a refund of the donation. Donations made under the act shall be used directly by a child care provider to promote child care for children 12 years of age and younger, shall not be made to a child care provider in which the taxpayer has a direct financial interest, and shall not be made in exchange for care of a child or children of the taxpayer. A child care provider that uses a contribution for an ineligible purpose shall repay to the Department the value of the tax credit used for such ineligible purpose. Tax credits authorized by the act shall not be refundable or transferable, but may be carried back one tax year or forward for up to five tax years. Notwithstanding this provision, taxpayers that are exempt for federal tax purposes shall be eligible for a refund of any tax credits received under this act, as described in the act. The maximum amount of tax credits that shall be authorized in a calendar year shall not exceed $20 million. If the maximum amount of tax credits is authorized in a calendar year, the maximum amount of tax credits that may be authorized in subsequent years shall be increased by 15%, provided that all such increases in the allowable amount of tax credits shall be reserved for contributions made to child care providers located in a child care desert, as such term is defined in the act. This provision shall sunset on December 31, 2029, unless reauthorized by the General Assembly. (Section 135.1310) This provision is identical to a provision in HCS/SS/SB 143 (2023), SCS/SB 184 (2023), HCS/HB 350 (2023), SCS/HCS/HB 668 (2023), and HCS/HB 870 (2023), and is substantially similar to a provision in SB 509 (2023). EMPLOYER PROVIDED CHILD CARE ASSISTANCE TAX CREDIT This act establishes the "Employer Provided Child Care Assistance Tax Credit Act". For all tax years beginning on or after January 1, 2023, this act authorizes a tax credit in an amount equal to 30% of qualified child care expenditures, as defined in the act, paid or incurred by an employer providing child care for its employees. The amount of the tax credit authorized under this act shall not exceed $200,000 per taxpayer per tax year. A facility shall not be considered a child care facility for the purposes of the act unless enrollment in the facility is open to employees of the taxpayer, and at least 30% of the enrollees of the facility are dependents of employees of the taxpayer if the facility is the principal business of the taxpayer. Tax credits authorized by the act shall not be refundable or transferable, but may be carried back one tax year or forward for up to five tax years. Notwithstanding this provision, taxpayers that are exempt for federal tax purposes shall be eligible for a refund of any tax credits received under this act, as described in the act. The maximum amount of tax credits that shall be authorized in a calendar year shall not exceed $20 million. If the maximum amount of tax credits is authorized in a calendar year, the maximum amount of tax credits that may be authorized in subsequent years shall be increased by 15%, provided that all such increases in the allowable amount of tax credits shall be reserved for qualified child care expenditures for child care facilities located in a child care desert, as such term is defined in the act. Tax credits authorized by this act shall be subject to recapture, as described in the act. This provision shall sunset on December 31, 2029, unless reauthorized by the General Assembly. (Section 135.1325) This provision is identical to a provision in HCS/SS/SB 143 (2023), SCS/SB 184 (2023), HCS/HB 350 (2023), SCS/HCS/HB 668 (2023), and HCS/HB 870 (2023), and is substantially similar to a provision in SB 509 (2023). CHILD CARE PROVIDERS TAX CREDIT This act establishes the "Child Care Providers Tax Credit Act". For all tax years beginning on or after January 1, 2024, this act authorizes child care providers with three or more employees to claim a tax credit in an amount equal to the child care provider's eligible employer withholding tax, as defined in the act, and may also claim a tax credit in an amount up to 30% of the child care provider's capital expenditures, as defined in the act, provided that such capital expenditures are not less than $1,000. The amount of the tax credit authorized under this act shall not exceed $200,000 per child care provider per tax year. A child care provider shall submit to the Department of Elementary and Secondary Education an application for the tax credit on a form to be provided by the Department. The child care provider shall provide proof of any capital expenditures for which the provider is claiming a tax credit. Tax credits authorized by the act shall not be refundable or transferable, but may be carried back one tax year or forward for up to five tax years. Notwithstanding this provision, taxpayers that are exempt for federal tax purposes shall be eligible for a refund of any tax credits received under this act, as described in the act. The maximum amount of tax credits that shall be authorized in a calendar year shall not exceed $20 million. If the maximum amount of tax credits is authorized in a calendar year, the maximum amount of tax credits that may be authorized in subsequent years shall be increased by 15%, provided that all such increases in the allowable amount of tax credits shall be reserved for child care providers located in a child care desert, as such term is defined in the act. This provision shall sunset on December 31, 2029, unless reauthorized by the General Assembly. (Section 135.1350) This provision is identical to a provision in HCS/SS/SB 143 (2023), SCS/SB 184 (2023), HCS/HB 350 (2023), SCS/HCS/HB 668 (2023), and HCS/HB 870 (2023), and is substantially similar to a provision in SB 509 (2023). SMALL BUSINESS REGULATORY FAIRNESS BOARD Provisions in current law establishing the Small Business Regulatory Fairness Board are repealed. (Sections 536.303 to 536.315 and sections 536.323 to 536.328) These provisions are identical to provisions in HCS/SS/SCS/SBs 3 & 69 (2023). OFFICE OF ENTREPRENEURSHIP This act creates the Office of Entrepreneurship within the Department of Economic Development. The Office shall employ an individual to promote policies and initiatives to support the growth of entrepreneurship of Missouri-based businesses with less than ten employees, including minority, women, and veteran entrepreneurship, in this state. (Section 620.3800) This provision is identical to a provision in HCS/SS/SCS/SBs 3 & 69 (2023) and SB 593 (2023), and is substantially similar to a provision in HB 237 (2023), HCS/SS/SB 807 (2022), SS/HCS/HB 2587 (2022), and HCS/HB 1590 (2022). RURAL ACCESS TO CAPITAL ACT This act establishes the "Missouri Rural Access to Capital Act", which provides a tax credit for certain investments made in businesses located in rural areas in this state. This act allows investors to make capital investments in a rural fund, as defined in the act. Such investors shall be allowed a tax credit for a period of six years beginning with the year the investor made a capital investment. The tax credit shall be equal to a percentage of the capital investment. The percentage shall be zero for the first two years, and fifteen percent for the subsequent four years. Tax credits issued under the act shall not be refundable, but may be carried forward to any of the five subsequent tax years, as described in the act. No more than $16 million dollars in tax credits shall be authorized in a given calendar year. A rural fund wishing to accept investments as capital investments shall apply to the Department of Economic Development. The application shall include the amount of capital investment requested, a copy of the applicant's license as a rural business or small business investment company, evidence that the applicant has made at least $100 million in investments in nonpublic companies located in counties throughout the United States with a population less than fifty thousand, evidence that the applicant has made at least $30 million in investments in nonpublic companies located in Missouri, and a business plan that includes a revenue impact statement projecting state and local tax revenue to be generated by the applicant's proposed qualified investments, as described in the act. The rural fund shall also submit a nonrefundable application fee of $5,000. The Department shall grant or deny an application within sixty days of receipt. The Department shall deny an application if such application is incomplete or insufficient, if the revenue impact assessment does not demonstrate that the business plan will result in a positive economic impact on the state over a ten year period, or if the Department has already approved the maximum amount of capital investment authority. Rural funds shall use capital investments made by investors to make qualified investments, as defined in the act, in eligible businesses. An eligible business is a business that, at the time of the qualified investment, has fewer than two hundred fifty employees, has its principal business operations in the state, is engaged in certain industries, as described in the act, does not knowingly employ any individual who is unlawfully present in this country, and is located or has committed to locate in a rural area. The Department may recapture tax credits if the rural fund does not invest sixty percent of its capital investment authority in qualified investments within two years of the date of the capital investment, and one hundred percent of its capital investment authority within three years, if the rural fund fails to maintain qualified investments equal to ninety percent of its capital investment authority in years three through six, as described in the act, if prior to exiting the program or thirty days after the sixth year, the rural fund makes a distribution or payment that results in the fund having less than one hundred percent of its capital investment authority invested in qualified investments, or if the rural fund violates provisions of the act. Rural funds shall submit annual reports to the Department, including the name and location of each eligible business receiving a qualified investment, the total number of new jobs, maintained jobs, new payroll, maintained payroll, new revenue, and maintained revenue by each eligible business receiving a qualified investment, a revenue impact assessment projecting state and local tax revenue generated and projected to be generated, and any other information required by the Department, as described in the act. At any time after the sixth anniversary of the capital investment, a rural fund may apply to the Department to exit the program. The Department shall respond to such application within fifteen days. At the time a rural fund exits the program, it shall be required to make a distribution to the state, not to exceed ten percent of the amount of tax credits received, if the amount of state and local tax benefits generated by the rural fund's qualified investments are less than the amount of tax credits distributed to the rural fund. These provisions shall sunset on August 28, 2029, unless reauthorized by the General Assembly. (Sections 620.3500 to 620.3530) These provisions are identical to provisions in HCS/SS/SCS/SB 92 (2023), as amended, and are substantially similar to HCS/HB 959 (2023), 675 (2022), HB 1885 (2022), SCS/SB 465 (2021), HB 1361 (2021), SB 724 (2020), SCS/SB 477 (2019), HB 1230 (2019), and HB 1236 (2019), and to provisions in HCS/SS/SCS/SB 92 (2023), SB 644 (2022), SB 1091 (2022), SCS/SB 750 (2022), and SS/SCS/HB 948 (2021). REGULATORY SANDBOX ACT This act establishes the "Regulatory Sandbox Act", which creates the Regulatory Relief Office within the Department of Economic Development. The Regulatory Relief Office shall administer the provisions of the act with the purpose of identifying state regulations that could potentially be waived or suspended for participating businesses during a two-year period in which the participating business demonstrates an innovative product offering to consumers. The Regulatory Relief Office shall maintain a web page on the Department's website that invites residents and businesses to make suggestions regarding regulations that could be modified or eliminated to reduce the regulatory burden of residents and businesses in the state. (Section 620.3905) The Regulatory Relief Office shall be responsible for evaluating and approving or denying applications to participate in the Sandbox Program. An applicant shall submit an application along with a $300 application fee to the Regulatory Relief Office, which shall include contact information and a description of the innovative offering to be demonstrated, including statements regarding how the innovative offering is subject to licensing, legal prohibition, or other authorization requirements outside of the Sandbox Program; each regulation that the applicant seeks to have waived or suspended while participating in the Sandbox Program; how the innovative offering would benefit consumers; and what risks might exist for consumers who use or purchase the innovative offering, as described in the act. No later than fifteen business days after the day on which a completed application is received by the Regulatory Relief Office, the Office shall review the application and refer the application to each applicable agency, as defined in the act, that regulates the applicant's business. No later than sixty days after the day on which an applicable agency receives a completed application for review, the applicable agency shall provide a written report to the Sandbox Program director with the applicable agency's findings, including any identifiable, likely, and significant harm to the health, safety, or financial well-being of consumers that the relevant regulation protects against, and a recommendation to the Regulatory Relief Office that the applicant either be admitted or denied entrance into the Sandbox Program. An applicable agency may deny an application for reasons described in the act. The Regulatory Relief Office shall not approve any application denied by an applicable agency. (Section 620.3915) Upon the receipt of a report from all applicable agencies, the Regulatory Relief Office shall provide the application and associated reports to the General Regulatory Sandbox Program Advisory Committee, which is created by the act. The Advisory Committee shall be composed of eleven members, as described in the act. The Advisory Committee shall advise and make recommendations to the Regulatory Relief Office on whether to approve applications to the Sandbox Program, and may meet at its own discretion to override a decision of the Regulatory Relief Office on the admission or denial of an applicant to the Sandbox Program, provided such override is decided with a two-thirds majority vote of the members of the Advisory Committee, and further provided that such vote shall be taken within fifteen business days of the Regulatory Relief Office's decision. Meetings of the Advisory Committee shall be considered public meetings for the purposes of the Sunshine Law. (Section 620.3910) Upon approval of an application, a sandbox participant shall have twenty-four months after the day on which its application was approved to demonstrate the innovative offering described in the sandbox participant's application. During such period, the sandbox participant shall be exempt from the regulations outlined in an agreement entered into with the Regulatory Relief Office. Innovative offerings shall only be available to consumers who are residents of this state, and no regulation shall be waived or suspended if such waiver or suspension would prevent a consumer from seeking restitution in the event that the consumer is harmed. A sandbox participant shall not be subject to prosecution or administrative penalty for a violation of any regulation that is waived or suspended during the duration of the participant's demonstration period. (Section 620.3920) Prior to demonstrating an innovative offering, a sandbox participant shall disclose certain information to consumers, as described in the act. (Section 620.3925) At least forty-five days prior to the end of a participant's demonstration period, the participant shall notify the Regulatory Relief Office that it either intends to exit the Sandbox Program or that it seeks an extension. The Regulatory Relief Office may grant an extension not to exceed twelve months, and a participant may seek multiple extensions. If a demonstration includes an innovative offering that requires ongoing services or duties beyond the two-year demonstration period, the participant may continue to demonstrate the offering, but shall be subject to all regulations that were waived or suspended as part of the Sandbox Program, provided that any participant that receives an extension to the demonstration period shall not be subject to the waived or suspended regulations until after the end of the extended demonstration period. A sandbox participant shall retain certain records for a period of two years after exiting the Sandbox Program. The Regulatory Relief Office shall establish quarterly reporting requirements for each participant, and each participant shall notify the Regulatory Relief Office and each applicable agency of any incidents that result in harm to the health, safety, or financial well-being of a consumer. No later than forty-five days after a sandbox participant exits the Sandbox Program, such participant shall submit a written report describing an overview of the demonstration. No later than thirty days after receiving such report, an applicable agency shall provide a written report to the Regulatory Relief Office that describes any statutory or regulatory reform the applicable agency recommends. (Section 620.3930) These provisions are substantially similar to SB 1068 (2022) and to provisions in HCS/SS/SCS/SBs 3 & 69 (2023), SS/HCS/HB 2587 (2022), HCS/SS/SCS/SB 931 (2022), HCS/SS/SB 807 (2022), and HCS/SS#2/SCS/SB 968 (2022). JOSH NORBERG SA #1 - MODIFIES PROVISIONS RELATING TO THE ASSESSMENT OF PERSONAL PROPERTY SA #2 - MODIFIES THE NEIGHBORHOOD ASSISTANCE PROGRAM TAX CREDIT SA #3 - ESTABLISHES THE MISSOURI GEOSPATIAL ADVISORY COUNCIL SA #4 - MODIFIES PROVISIONS RELATING TO HOMEOWNERS ASSOCIATIONS' RESTRICTIONS ON THE OWNERSHIP OR PASTURING OF CHICKENS SA #5 - MODIFIES PROVISIONS IN THE RURAL ACCESS TO CAPITAL ACT