Mo. House OKs economic development package

JEFFERSON CITY, Mo. -- The House passed a job-creation package backed by Gov. Jay Nixon on Thursday, but confirmation of the governor's economic development director remained snagged in the Senate.

The House legislation expands a popular business incentive program while sprinkling other tax breaks to employers. It's a key component in the type of pocketbook issues that Republican legislative leaders and the Democratic governor have said will be the session's priority.

Representatives passed the jobs bill 141-19, sending it to the Senate. Nixon has called for the bill to be delivered to his desk by the legislature's mid-March break.

Sponsoring Rep. Tim Flook called the legislation a "targeted" incentive for business that is the first prong in a three-part economic development effort. Flook said there also will be legislation to expand job training programs and to overhaul the state's tax credit program.

Throughout floor debate this week, Flook said that unlike federal stimulus efforts, the Missouri legislation is designed to operate within the market instead of controlling it.

"It's not a subsidy, and we're not writing a check out of [state revenue] like they're doing in Washington," said Flook, R-Liberty.

The main component of the bill expands the 2005 Quality Jobs program, which the Missouri Economic Development Department has credited with adding 22,000 jobs.

Under that program, businesses can earn tax credits and keep a portion of their the payroll taxes for newly hired workers whose jobs pay at least average wages and include health benefits.

Currently the tax credits are capped at $60 million, but the House measure would remove that cap.

"By expanding the successful Quality Jobs Program, we will make it easier for businesses across our state to create the high-paying jobs that will turn this economy around," Nixon said in a statement Thursday.

The legislation also would make it easier for large employers considering moving elsewhere to receive up to a $1 million tax credit. The measure also would tailor a special tax break similar to the Quality Jobs program for small businesses that add workers.

Nixon has tapped St. Louis attorney Linda Martinez to lead the Department of Economic Development, which oversees most of Missouri's tax incentives for businesses. Her legal practice specialized in helping businesses and cities with economic development projects.

But Martinez so far has been unable to win confirmation in the Senate. On Thursday, Sen. Scott Rupp, R-Wentzville, continued to hold up her approval because of concerns she was soft on illegal immigration.

Martinez was part of a coalition of lawyers that sued the St. Louis suburb of Valley Park in 2007 for ordinances that fined businesses and landlords for hiring and renting to illegal immigrants.

Rupp sponsored a 2008 Missouri law cracking down on businesses that knowingly hire illegal immigrants. He wants written statements from Martinez and from Nixon's office pledging to uphold laws relating to illegal immigrants and to ensure no state incentives go entities that hire unauthorized workers.

Martinez has testified previously that she will follow Missouri's illegal immigration laws.

Although the economic development legislation passed the House with bipartisan support, there was plenty of partisan sniping as some minority House Democrats complained that they were not permitted to offer desired amendments.

Among the frustrated Democrats was Rep. Jeff Roorda, of Barnhart, who said that because the debate hadn't been "fair and open," he couldn't vote for the bill.

But House Minority Leader Paul Levota, D-Independence, supported the bill and told reporters after the vote that the legislation was an example of how Democrats and Republicans can work together.

Economic development is HB191