Governors Convene Special Sessions on Jobs

Governors in several states are bringing lawmakers back into session this fall with a more focused agenda on job creation. During a one-day special session on Friday, lawmakers in Mississippi approved a $175 million incentive package to bring two high-tech manufacturing facilities to the state. Meanwhile, Missouri Gov. Jay Nixon will try again to enact the Missouri Science and Innovation Reinvestment Act (MOSIRA) to support science and tech companies and the Compete Missouri Initiative, both which failed to pass during the regular session. In New Mexico, lawmakers will consider legislation clarifying language in the state’s high-wage tax credit statute — a measure Gov. Susana Martinez says will make it easier for employers to retain and hire workers.

Governors in Alabama and Connecticut also may bring legislators back into session, but have yet to make an official announcement.

Mississippi
Gov. Haley Barbour called on legislators to return for a one-day special session last Friday to consider an incentive package totaling $175 million in bond funding to recruit two high-tech manufacturing facilities. The governor proposed and lawmakers approved a $100 million package to help HCL CleanTech establish headquarters in Olive Branch, build a small-scale commercial facility and R&D research center in Grenada, and construct three large-scale commercial plants throughout the state. The other package provides $75 million to Calisolar, a California-based solar energy company, to establish a high-tech manufacturing facility in Columbus. Combined, the two companies are expected to create nearly 1,800 high-paying jobs, according to the governor’s press release. SB 2001 is available at: http://billstatus.ls.state.ms.us/20111E/pdf/history/SB/SB2001.xml.

Missouri
Lawmakers will convene today to consider a jobs package that includes many of the proposals that were part of a major economic development bill that failed to pass in the final days of the regular session. This includes the Missouri Science and Innovation Reinvestment Act (MOSIRA), a proposal to dedicate an annual portion of new tax revenues generated by biotechnology companies to a newly-created state fund to be reinvested in a wide-range of tech-based companies. This is the second legislative session that lawmakers have debated the proposal, which was first announced in 2010 (see the Jan. 6, 2010 issue of the Digest).

During the regular session, the House passed an economic development bill that included a provision to establish MOSIRA with broad, bi-partisan support, but that bill fell apart in the final hours of the session, reports The Kansas City Star.

The Compete Missouri Initiative also is slated for the special session agenda. The proposal, which drew heavy criticism from some lawmakers, establishes a closing fund for recruitment and retention projects, consolidates business development incentives, and provides incentives for companies retaining more than 125 jobs annually.

Enacting legislation that creates incentives for construction and development of high-tech data centers and implementing a tax reform package modifying or eliminating many programs not considered to be producing substantial return on investment also are on the governor’s agenda. Read the Proclamation…

New Mexico
While much of New Mexico’s special session that begins today will focus on redistricting, lawmakers also will consider legislation clarifying definitions in the state’s high-wage tax credit. New language clarifying what is considered a loophole in the current legislation for determining a high-wage job will be presented to lawmakers. The state instituted the high-wage tax credit in 2004. If the language is not clarified, it would make it more difficult for businesses to retain high-wage workers and hire new ones, according to the governor’s press release.

Alabama and Connecticut
Governors in at least two other states may convene special sessions to focus on jobs and economic development. Alabama Gov. Robert Bentley said if he does call a special session, he will include a constitutional amendment meant to help the state recruit new industries and modernize existing industries, reports The Gadsen Times. The measure, which could be on the March 2 ballot for the state’s presidential primary if passed by the legislature, would give new or existing industries a portion of the 5 percent income tax paid by new workers to use for capital improvements.

In Connecticut, Gov. Dan Malloy is pitching a bipartisan special session on jobs, reports The Connecticut Mirror. In his closing remarks to the legislature in June, Gov. Malloy said he would ask all agency heads to participate in a "tangible way" with plans for job creation and economic growth and tasked the Commissioner of Economic Development to reach out to the business community for ideas on job creation. No specific proposals have been announced yet, however.

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