Limits the use of port authority facilities unless certain conditions are met

2026 Regular Session Introduced by Anthony Ealy

The bill requires a three-year covenant restricting incentivized port facilities from detention or confinement use, with penalties and an exemption process involving multiple local

Referred: Emerging Issues(H)

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Overview

House Bill 3374 (2026, Missouri) would constrain how port authority developments that are incentivized with bonds, leases, payments in lieu of taxes, or exemptions may be used. Specifically, it adds a covenant requirement that facilities financed or incentivized under those arrangements not be used for detention, corrections, or civil confinement for a period of three years from the date of the incentive agreement. The prohibition can be waived if certain local authorities consent to an exemption. Violations trigger penalties including termination of incentives, clawback of incentives already realized, and potential liquidated damages.

What the bill does

Adds a new section (Section 68.330) to Chapter 68, RSMo.

Establishes a covenant in incentivized port authority development agreements:

Prohibits use of the port authority facilities for detention, corrections, or civil confinement for 3 years from the date of the agreement.

Exemption mechanism:

The three-year prohibition can be waived if all of the following agree to an exemption:
The port authority board, in a public hearing.
The governing body of the municipality where the facility is located.
The governing bodies of a majority of affected taxing jurisdictions.

Penalties for violation:

Automatic termination of any incentives.
A clawback equal to the value of incentives already realized.
Potential liquidated damages payable to the taxing jurisdictions if a court orders them.

Who and what is affected

Entities affected:

Port authorities issuing incentivized development (bonds, leases, PILOTs, exemptions).
Municipal governing bodies where port facilities are located.
Taxing jurisdictions impacted by the port development.

Effects on facilities:

Facilities financed or incentivized under the specified mechanisms cannot be used for detention/cederal confinement for the first three years, unless an exemption is approved.

Procedural and timeline aspects

Effective process:

Covenant agreements must be supplemented with the new prohibition clause.
Exemption requires a public hearing and the agreement of the port authority board, the municipality, and a majority of affected taxing jurisdictions.

Consequences of non-compliance:

Immediate termination of incentives already in place.
Clawback of incentives already realized.
Possibility of court-ordered liquidated damages to taxing jurisdictions.

Status and history:

Introduced in 2026 (HB 3374) by Representative Ealy (co-sponsor Anthony Ealy).
Referred to Emerging Issues (H) on May 15, 2026.
Previously read and introduced in February 2026.

Practical implications

The bill aims to restrict the use of port authority incentives to ensure facilities are not used for detention or confinement during the initial three-year period, addressing concerns about the location and use of incentivized developments.

Exemption mechanism provides flexibility if local authorities deem an exception appropriate, but requires coordinated approval from multiple governing bodies.

Violations impose significant financial and policy penalties that could undermine the value proposition of incentives.

Bill