PURPOSE: This rule gives a brief overview of allocation and waiver process for recovery zone bonds and prescribes the department’s process for reallocating recovery zone bond authority.

1. (1) Section 108.1010, RSMo, provides that:

   1. (A) The Department of Economic Development (DED) shall allocate recovery zone bonds to counties and large municipalities in accordance with Section 1400U-1 of the Internal Revenue Code of 1986, as amended, and shall provide notice of such allocation to each county and large municipality;
   2. (B) Counties or large municipalities that receive recovery zone bond allocation may waive all or part of such allocation by providing written notice to the department;
   3. (C) Allocations shall be deemed waived by the county or large municipality on the sixtieth day following notice of allocation, except to the extent the county or large municipality has provided the department with written notice of intent to issue recovery zone bonds stating the amount and type to be issued;
   4. (D) Each county or large municipality shall notify the department in writing of the issuance of recovery zone bonds; and
   5. (E) Any recovery zone bonds allocated to a county or large municipality which remain unissued as of the first day of July of each year shall be recaptured by the department for reallocation.
2. (2) Any county or large municipality may apply to DED for the reallocation of additional recovery zone bond authority (RZB cap) to the extent such RZB cap becomes available due to the waiver of recovery zone bond allocations by other counties or large municipalities or the recapture of RZB cap by the department.

3. (3) DED may reallocate RZB cap as it becomes available and request for reallocation is made up to three (3) times between the effective date of this rule and December 31, 2010, pursuant to the following process:

   1. (A) The applicant must apply for reallocation, using the form included herein, within a timeframe and deadline set by DED. The first deadline for application for reallocation shall 4 CSR 85-6

be September 30, 2009. Subsequent deadlines for reallocation, if any, will be posted on DED’s website at least thirty (30) days prior to deadline;

1. (B) Any qualified issuing entity in the state of Missouri may apply for reallocation;

2. (C) Applicants must meet the following conditions:

   1. 1. Projects must be located in a recovery

zone;

1. 2. The local government must support

the application;

1. 3. Counties or large municipalities pre-

viously waiving RZB cap may apply for reallocation and may receive priority for projects consistent with the evaluation criteria;

1. 4. Unsuccessful applicants in any round

may resubmit applications in future rounds;

1. 5. There are no limits to the size of a

reallocation request; and

1. 6. There are no limits to the number of

requests for reallocation of RZB cap from any one (1) county or eligible issuer; and

1. (D) Applications for reallocation of RZB cap will be evaluated according to the following criteria:

   1. 1. For recovery zone economic develop-

ment bonds, DED shall consider the number of beneficiaries, environmental impact, local effort, economic impact, economic distress of the zone (including previous job loss, average income, and poverty levels), project readiness, and other compelling information that may be presented by the applicant; and

1. 2. For recovery zone facility bonds,

DED shall consider the number of jobs created and/or retained, the wages of the jobs created and/or retained, the economic distress of the zone (including previous job loss, average income, and poverty levels), project readiness, project competitiveness, amount of investment, economic impact, opportunities for spin-off jobs, and any other compelling information that may be presented by the applicant.

1. (4) DED will inform applicants for reallocation of RZB cap of the decision on their application in writing. AUTHORITY: section 108.1010, RSMo Supp. 2009.* Emergency rule filed Sept. 18, 2009, effective Sept. 28, 2009, expired March 26, 2010. Original rule filed Sept. 18, 2009, effective April 30, 2010.

*Original authority: 108.1010, RSMo 2009.