Capitol Briefing

Week of June 28, 2010

Lawmakers Consider Tax Incentives Package and Pension Reform During First Week of Special Session

Adult Business Regulation Measure Along With Several Other Measures Signed into Law

JEFFERSON CITY—The Missouri General Assembly this week debated two measures the governor called on lawmakers to consider: tax incentives for qualified companies that create Missouri jobs and state employee pension reform.

Lawmakers officially convened last Thursday (6/24) for the special session, which was followed by committee work in both chambers early this week. The House sent its bills, HB 1 (pension reform) and HB 2 (tax incentives) to the Senate on Tuesday afternoon.  The Senate Jobs, Economic Development and Local Government Committee unanimously passed HB 2.  Also receiving a unanimous nod was HB 1, heard by the Senate Veterans’ Affairs, Pensions and Urban Affairs Committee.  Both measures were then delivered to the Senate Governmental Accountability and Fiscal Oversight Committee.  House Bill 1 was voted out of the committee and sent to the full Senate for debate.  House Bill 2 has yet to receive a vote.

House Bill 2 establishes the Manufacturing Jobs Act, which would provide tax incentives for qualified suppliers or manufacturing facilities that create or retain Missouri jobs and bring new product lines to the state. The legislation is aimed at enticing the Ford Motor Company to manufacture a new product line at its existing automotive assembly plant in Claycomo.

The total amount of tax incentives—or allowed retention of employee withholdings taxes—available under the bill is capped at $15 million each year for 10 years. The qualified company also needs to meet a specific set of requirements to receive the tax credits.

The Senate introduced similar job-growth legislation.  Senate Bill 2, sponsored by Sen. Luann Ridgeway (R-Smithville) is nearly identical to HB 2, however, provisions in the Senate measure only pertain to certain automotive manufacturers; House Bill 2 includes data centers.

A resolution asking the governor to expand the call of the special session was also introduced in the Senate.  Senator Kurt Schaefer (R-Columbia) presented the resolution that prompts the governor to include data storage centers and server facilities in his call.

The other purpose of the special session involved passing state employee pension reform, in part to offset the costs of the job creation bill. House Bill 1, which contains a Senate Committee Substitute sponsored by Sen. Jason Crowell (R-Cape Girardeau), would modify the retirement system for certain new state employees who start work on or after Jan. 1, 2011. The changes do not affect current state employees.

Members of the new system under HB1 are required to contribute 4 percent of their pay to the retirement system and work for the state for at least 10 years to gain ownership of their benefits. For regular retirement eligibility under the new plan, employees need to reach age 67 and have at least 10 years of service, or reach age 55 with the sum of their age and service equaling at least 90.

The bill also creates the Missouri State Retirement Investment Board to manage the investment of the assets of the Missouri State Employees Retirement System (MOSERS) and the Missouri Department of Transportation and Highway Patrol Employees Retirement System (MPERS). House Bill 1 requires an affirmative vote by both systems to participate in the new Missouri State Retirement Investment Board.

Special session work will continue next week as lawmakers work to iron out the differences between the multiple versions of the retirement legislation and the job creation bills.

Pension reform was part of the Senate’s “Rebooting Government ” efforts during the regular session, and the Manufacturing Jobs Act was also considered, though a consensus could not be reached on either measure before session ended on May 14.

Listen to The Senate Minute’s report for this week.

Adult Business Regulation Bill Signed into Law

The governor recently signed into law legislation to regulate sexually oriented businesses in Missouri.

Senate Bill 586 , sponsored by Sen. Matt Bartle (R-Lee’s Summit), imposes several time, place and manner restrictions on adult businesses in the state. After Aug. 28, 2010 (the effective date of the new law), the legislation will prohibit a person from establishing a sexually oriented business within 1,000 feet of a pre-existing school, house of worship, state-licensed day care, public library, public park, residence or other sexually oriented business. It will also bar a person who has been convicted of or imprisoned for certain crimes within the last eight years from establishing an adult business.

In addition, the bill prohibits nude performances and restricts semi-nude activity within sexually oriented businesses; prohibits adult establishments from operating between the hours of midnight and 6 a.m.; and bars anyone younger than 18 from being on the premises at any time.

Governor Signs Comprehensive K–12 Education Bill

House Bill 1543 , handled in the Senate by Sen. David Pearce (R-Warrensburg), makes several changes to state laws relating to K–12 school employee liability, safety practices and funding, among other provisions. One of the major provisions involves changing the funding mechanism for the Career Ladder program by funding it upfront rather than in arrears if an appropriation is made. Another major change under the bill allows for the Parents as Teachers program to be need-based by serving low-income families first. It also allows school districts to implement a sliding-fee scale based on income and family size for services so those who can afford it may help defray costs.

In addition, the measure contains several provisions relating to school safety, such as adding "cyberbullying" and electronic communications to school district anti-bullying policies; expanding the reporting of acts of violence to include all teachers at the students’ school building; expanding employee immunity from following established discipline policies to include, but not be limited to, policies of student discipline; and allowing all public school districts to require a school uniform or restrict student dress.

Most of the provisions in the bill take effect Aug. 28.

Rebooting Government Measures Signed

Rebooting Government bills were among those to receive the governor’s signature this week. 

House Bill 1868 , handled in the Senate by Senate President Pro Tem Charlie Shields (R-St. Joseph), merges the State Highway Patrol and Water Patrol for nearly $1 million in anticipated savings. In addition, the measure establishes the 13-member Joint Committee on the Reduction and Reorganization of Programs within State Government, which will recommend to the General Assembly ideas for reducing, eliminating or combining state programs.

Senate Bill 1007 , sponsored by Sen. Tom Dempsey (R-St. Charles), is another Rebooting Government measure to receive the governor’s signature. The bill amends various requirements for public assistance programs administered by the state such as requiring MO HealthNet recipients to be informed about their options before being admitted to a long-term care facility. Among other provisions, SB 1007 also requires the auditing of service providers and contracts for in-home services assessments. It’s estimated that the bill will save the state approximately $19 million each year.

A substantially similar bill, SB 842 , sponsored by Sen. Eric Schmitt (R-Glendale), was also signed into law this week.

Finally, House Bill 1965, handled in the Senate by Sen. Jane Cunningham (R-Chesterfield), was signed by the governor this week.  The measure eliminates the printing of state manuals (known as Blue Books) and state statutes, saving more than $1 million each year.  The bill also creates the Joint Committee on Missouri’s Promise, which is charged with:

• Examining issues impacting the future of Missouri and its citizens;
• Developing long-term strategies and plans for increasing the economic prosperity and opportunities for Missouri citizens;
• Improving Missourian’s health status;
• Creating an education system that teaches students and prepares them for global competition, and other areas that are vital to improving the lives of state citizens;
• Developing three-, five-, and 10-year plans for the General Assembly to meet the specified long-term strategies;
• Implementing budget forecasting;
• Determining the proper course of future legislation and budgetary actions on these issues.

All of these bills take effect Aug. 28.

Other Bills Signed into Law

Senate Bill 649 (effective Aug. 28)
(sponsored by Sen. Rita Days, D-St. Louis)
Requires the governor to designate March 12 each year as “Girl Scout Day.”

Senate Bill 739 (effective Aug. 28)
(sponsored by Sen. Jim Lembke, R-St. Louis)
Relaxes the provisions governing fire department employee residency requirements.

House Bill 2081 (effective Aug. 28)
Specifies that a pregnant woman may use deadly force if she reasonably believes it is necessary to protect her unborn baby against death, serious physical injury or any forcible felony.

House Bill 1898 (effective Aug. 28)
(handled by Sen. Dempsey)
Establishes the Women's Heart Health Program to provide heart disease risk screenings to certain uninsured and underinsured women.

House Bill 1750 (effective Aug. 28)
(handled by Sen. John Griesheimer, R-Washington)
Requires the state’s largest telecommunications companies to balance out the differences between interstate and intrastate access rates for Incumbent Local Exchange Telecommunications Companies (ILECs). Under the bill, ILECs would be required to reduce their rates by 6 percent of the difference per year for three years, until the interstate and intrastate rates are more comparable.

HB 2182 (effective Aug. 28)
(handled by Sen. Dan Clemens, R-Marshfield)
Specifies that, as used in Missouri law, "agritourism" means the act of visiting a working farm or any agricultural operation for the enjoyment, education, training or involvement in its activities.

The Missouri Senate will reconvene at 9 a.m. on Thursday, July 8 for a technical session. 

This update is written periodically throughout the time between regular legislative sessions. To follow these and other issues facing the Missouri Senate, visit www.senate.mo.gov. Visitors can track legislation as it passes through the General Assembly, learn more about their district, or, when the Legislature is in session, listen to streaming audio of legislative debate as it happens. For more legislative news, please visit the Senate Newsroom. There you will find various audio and video programs and other services, such as: