State legislative special session to focus on jobs package, tax credit reform

Gov. Jay Nixon recently signed a proclamation calling for a special legislative session beginning Sept. 6 for the purpose of passing economic development legislation along with tax credit reform legislation that would help pay for additional investments.
According to the Missouri Constitution, legislative special sessions can only operate for 60 days.
In early August, Nixon announced his intention to call a special session in September. This is the eighth special session called by a governor since 1995, the second called by Nixon since taking office in 2009.
Nixon has said the primary purpose for the special session is to pass a jobs package bill that would foster growth in science and technology industries and expand industries and exports.
“Passing…this jobs package will help us move Missouri forward and create good jobs for folks all around the state,” Nixon said.
The Missouri Constitution requires the General Assembly to only pass legislation that falls within the boundaries of the governor’s call.
The following action items are included in Nixon’s call:
• enacting the Missouri Science and Innovation Act to encourage the growth of science and innovation businesses in the state;
• enacting the Compete Missouri Initiative to provide additional incentives to attract and update Missouri’s training programs and to increase the efficiencies of the state’s business development incentives;
• enacting legislation to increase exports and foreign trade through the development of an air cargo hub at Lambert-St. Louis International Airport;
• enacting legislation to help construct and develop high-tech data centers.
This last item is especially relevant to Columbia. IBM’s decision to locate in Columbia has already created new jobs and is expected to create hundreds more.
To pay for these initiatives, the governor has included in his call a request for the General Assembly to implement tax credit reform that would eliminate many tax credit programs that are not producing “substantial return on investment.”
“Unlike the folks in Washington, D.C., we balance our budget in Missouri,” Nixon said. The Missouri Constitution mandates that lawmakers enact a balanced budget every year.
“We must protect Missouri’s spotless AAA bond rating and keep the state’s fiscal house in order,” Nixon added. “That’s why comprehensive tax credit reform is essential.”
These are additional items included in Nixon’s call:
• authorizing tax credits to help attract amateur sporting events to Missouri;
• enacting legislation moving Missouri’s presidential primary to the first Tuesday after the first Monday in March of each presidential primary year (an election bill that included this item was passed during the 2011 legislative session but was vetoed by Nixon, who objected to other provisions in the bill);
• enacting legislation authorizing the transition of governing the St. Louis Metropolitan Police Department from a board of police commissioners to the City of St. Louis.
• On Aug. 26, Nixon added to the call a request to repeal specific provisions concerning teacher-student communications on Facebook that were included in Senate Bill 54. The Missouri State Teachers Association has filed a lawsuit challenging that section of the bill.
Nixon’s decision to call lawmakers back to Jefferson City met with the support of business groups.
“The time is now to position ourselves for the $10 billion in U.S. data center investment within the next three years,” said Dan Mehan, president of the Missouri Chamber of Commerce and Industry. “If we are successful in competing for these high-tech facilities, the benefit is twofold. The high-tech permanent employment is our direct target, but the construction jobs that would result from a $500 million data center could generate thousands of jobs for Missouri and an ongoing payback for Missouri.”