Senators Work Through Second Round of Winter Weather to Hit the Show-Me State

JEFFERSON CITY – Senators concluded the month of February by delivering to the House a measure that would change several existing tax credit programs and create new tax incentives to attract businesses to the Show-Me State.  The last day of February also marked the deadline for senators to file legislation for the 2013 legislative session.

Senate Bills Advance to House of Representatives

Legislation received final passage in the Missouri Senate this week that would change provisions regarding several tax credits and tax incentives in the Show-Me State.  Senate Bill 120, sponsored by Sen. Eric Schmitt, R-Glendale, creates the Missouri Export Incentive Act authorizing air export credits for freight forwarders to qualifying outboard flights from the Lambert-St. Louis International Airport.  The amount of issued air export tax credits is capped at $7.5 million each fiscal year, unless the Department of Economic Development approves a larger amount.  However, the total aggregate amount of air export tax credits that may be authorized over an eight-year period is $60 million.

The bill also creates state and local sales tax exemptions for new and expanding data centers to build and operate in the Show-Me State.  Data centers are large warehouses containing computer servers and other technologies designed to store and protect critical information for today’s 21st century businesses.  In addition, SB 120 establishes the Angel Investment Incentive Act, which authorizes up to $36 million in tax incentives over six years to investors that put money into startup and emerging companies focused on new and expending technology.  It also creates the Wood Energy Producer Incentive, which allows individuals or businesses processing Missouri forestry industry residues into fuels an income tax credit of $5 per ton of processed material, such as wood pellets, that can be claimed over a five-year period and cannot exceed $3.516 million in one year.

In addition, the measure would modify existing tax credits, capping the Low-Income Housing tax credit, which gives incentives to those who invest in affordable housing, from $190 million to $50 million annually.  The bill would also lower the amount of Historic Preservation tax credits awarded to projects from $140 million to $45 million annually, beginning FY 2014.  This tax credit program is designed to aid in the redevelopment of historic structures in the state of Missouri. 

Senate Bill 120 would also prohibit more than $20 million in Brownfield Remediation tax credits, used to provide financial incentives for the redevelopment of commercial and industrial sites that are contaminated with hazardous substances and have been abandoned or underutilized for at least three years, from being authorized in any fiscal year beginning FY 2014, under certain circumstances.

Finally, SB 120 would eliminate the Neighborhood Preservation Act, a program that currently has a $16 million per year cap on tax credits used for the rehabilitation or construction of owner-occupied homes in certain areas of Missouri.  The legislation would also do away with the Self-Employed Health Insurance tax credit, which allows self-employed taxpayers who are unable to deduct health insurance premiums on their federal income taxes to receive a refundable tax credit against their state income tax liability.

The Missouri Senate’s Daily Audio/Video clips for Feb. 27 include Sen. Schmitt; Sen. Brad Lager, R-Savannah; Sen. Jason Holsman, D-Kansas City; and Sen. Shalonn “Kiki” Curls, D-Kansas City, all discussing SB 120 on the Senate floor.  Sen. Schmitt and Sen. Scott Sifton, D-Affton, are also featured in the Daily Audio/Video clips for Feb. 28, discussing SB 120 before its final passage in the Senate.

The Missouri Senate delivered to the House this week legislation that would exempt farm work, such as operating and maintaining power-driven machinery, climbing ladders, and operating vehicles, performed by young Missourians under the age of 16 from certain federal labor requirements.  Senate Bill 16, sponsored by Sen. Brian Munzlinger, R-Williamstown, only applies to children working on their own family farms, as well as other family farms with their parents’ permission.

The Missouri Senate’s Daily Audio/Video clips for Feb. 26 feature Senate Minority Floor Leader Jolie Justus, D-Kansas City, and Sen. Munzlinger discussing SB 16 in the upper chamber.

Another measure moving on to the House would allow schools to teach a gun accident prevention program and prepare teachers for potentially dangerous or armed intruders.  Sponsored by Sen. Dan Brown, R-Rolla, Senate Bill 75 would establish the Active Shooter and Intruder Response Training for Schools Program, which trains teachers and school employees on how to respond to students with information about a threatening situation and how to address a potentially dangerous or armed intruder or active shooter in or on school grounds.  In addition, the legislation would allow schools to teach the Eddie Eagle Gunsafe Program, or similar program, to first grade students.  The program would promote safety and protection of children and emphasize how students should respond if they come across a firearm.  The bill bans the use of firearms during teaching of the program.

The Missouri Senate’s Daily Audio/Video clips for Feb. 26 highlight Sen. Brown and Sen. Paul LeVota, D-Independence, talking about SB 75 on the Senate floor.

Legislation that would designate the new bridge on I-70 crossing the Mississippi River as the “Stan Musial Memorial Bridge” also received final passage in the Senate.  Musial passed away earlier this year and is well known by baseball fans and Missourians throughout the state for his time playing for the St. Louis Cardinals. Senate Bill 176, sponsored by Sen. Schmitt, also designates a portion of the interstate running up to and leading over the bridge as the “Andy Gammon Memorial Highway.”  Gammon, a carpenter, lost his life during construction of the bridge.

Lawmakers Give Senate Bills First-Round Approval

A measure that would authorize a statewide dental delivery system under MO HealthNet received debate in the Missouri Senate this week, garnering an initial nod by lawmakers.  Senate Bill 127, sponsored by Sen. David Sater, R-Cassville, would allow the MO HealthNet Division within the Department of Social Services, or a contractor of the division, to implement this dental delivery system throughout the state to ensure recipient participation and access to providers of dental services under Missouri’s program that purchases and monitors health care services for low-income and vulnerable citizens.

The Missouri Senate’s Daily Audio/Video clips for Feb. 28 include Sen. Sater and Sen. LeVota discussing SB 127 in the Missouri Senate chamber before it received initial passage.

Upper Chamber Debates Senate Bills

Legislation creating the Early High School Graduation Scholarship Program for public high school students who graduate early was considered by senators this week.  Senate Bill 3, sponsored by Sen. Scott T. Rupp, R-Wentzville, would provide two different types of scholarships, one for those students who graduate from high school in no more than 36 months and those who graduate from high school in no more than 41 months.  The student, with exception, must use the scholarship within one year of graduating from high school and could use the scholarship for tuition, mandatory fees, or both, if attending a public or private higher education institution in the Show-Me State. 

Lawmakers also took up Senate Bill 29 for debate.  The measure, sponsored by Sen. Brown, would require authorization for certain labor unions to use dues and fees to make political contributions and bars them from withholding earnings from paychecks.  The legislation would require the employee to authorize the portion of their paycheck used for political contributions and stipulate which committee their fees will be paid into.  The bill would exempt first responders from the new provisions.

The Missouri Senate’s Daily Audio/Video clips for Feb. 26 include Sen. Brown and Sen. Justus debating SB 29 in the Senate Chamber.

Senate Bill 26, sponsored by Sen. Will Kraus, R-Lee’s Summit, would change the rates of tax on income and create a business income deduction.  More specifically, the act modifies the individual income tax rate table so that all income more than $6,000 would be taxed at the rate of 4.5 percent effective Jan. 1, 2014.  The legislation would also reduce the corporate income tax rate from its current 6.25 percent of Missouri taxable income to 4.75 percent effective Jan. 1, 2014.  Finally, the measure would create an individual income tax deduction for business income, phasing it in over a five-year period.  Taxpayers would be allowed to deduct 10 percent of business income for the 2014 tax year and, once fully phased in, be allowed a 50 percent deduction for all tax years after the 2017 tax year.

Senate Committees Advance Legislation

Members of many Senate committees voted out several bills for further consideration by the full Senate.  Sen. John Lamping, R-Ladue, is sponsoring legislation this session that would change several provisions in state law relating to domestic violence.  Senate Bill 222, considered and approved by the Seniors, Families and Pensions Committee, would require the consistent use of “stalking” to ensure that the provisions of the chapter in state statute apply to instances of both domestic abuse and stalking that does not involve a family or household member.  The measure would also require motions to dismiss an order of protection under court review to take place using video, rather than in open court, among other provisions.  In addition, the bill would prohibit public notice of a name change using CaseNet or other systems operated by the judiciary designed to provide public case information electronically for instances when victims of domestic violence change their name.

Senate Joint Resolution 3, sponsored by Sen. Kurt Schaefer, R-Columbia, would amend the Missouri Constitution to provide the authority for a Fifth State Building Bond issue.  The constitutional amendment, upon voter approval, would allow the Board of Fund Commissioners to issue $950 million in bonds: $250 million would be used for constructing state buildings, facilities and projects, with at least $40 million of this amount used for park maintenance and facilities.  Bonds would also be provided for construction, renovation and rebuilding higher education institution buildings, with at least 15 percent of the bond proceeds allocated to community colleges.  The joint resolution was voted out of the Senate Appropriations Committee this week.

The Missouri Senate’s Daily Audio/Video clips for Feb. 27 feature Sen. Schaefer testifying before members of the Senate Appropriations Committee on SJR 3.

Also this week, members of the Joint Committee on Education, which includes seven senators and is chaired by Sen. David Pearce, R-Warrensburg, issued their final report regarding funding for higher education institutions in the Show-Me State.  Historically, core appropriations for higher education institutions in Missouri are based on past funding levels; in FY 2012, the Missouri General Assembly appropriated $854 million to 13 public four-year and 14 public two-year institutions.  The Joint Committee on Education’s funding model for these institutions includes considerations based on an institution’s success in fulfilling its mission or its contribution to the goals of the state, in addition to changes in an institution’s enrollment or mission.  This model incorporates elements of performance funding developed by other working groups and includes core operating expenditures and performance measures.  To see the final report, click here or visit www.senate.mo.gov/jced/HigherEdFunding.htm.

Panel Members Hear Testimony on Senate Bills

Senators serving on the Judiciary and Civil and Criminal Jurisprudence Committee heard testimony on legislation sponsored by Sen. Joseph Keaveny, D-St. Louis.  Senate Bill 162 would change provisions relating to Missouri’s criminal procedures, including eyewitness identification procedures, jailhouse informant testimony, post-conviction DNA testing, and biological evidence procedures.

Senate Bill 205, sponsored by Sen. Sater, would require all children over the age of 15 who are in foster care or under the Division of Youth Services to receive a visit to a state university or community or technical college in Missouri before they are adopted, leave foster care or complete the division’s custody or training. During their visit, youth would learn about the institution’s application process, financial support application and availability, and career options with academic or technical training.  These individuals would also receive a campus tour, as well as other information and experience they would like to know more about.   Testimony on this bill was heard by members of the Senate Seniors, Families and Pensions Committee.

Legislation sponsored by Sen. Brian Nieves, R-Washington, was considered by members of the Senate General Laws Committee.  Senate Bill 266 would prohibit health care professionals or health care facilities from intentionally entering any disclosed information concerning firearm ownership into a patient’s medical record if the professional knows that the information is not directly related to the patient’s immediate medical care or safety.  Those in violation of this act would be subject to disciplinary action under the appropriate provisions concerning the licensing, accreditation or certification of those professionals and facilities by the state of Missouri.  In addition, SB 266 would prohibit a school employee from asking a student under the age of 18 if the student’s parent, guardian or anyone residing with the student owns a firearm.   Violation of this provision would be punishable as an infraction, which carries a fine up to $200.

Sen. Gina Walsh, D-Bellefontaine Neighbors, is sponsoring legislation this session that would change eligibility criteria for energy efficiency incentive programs offered by electric companies to low-income customers.  Currently, a customer of an electric company is not eligible to receive a monetary incentive offered by the company for an energy efficiency program if the customer has received a tax credit for low-income housing or historic preservation.  Testimony on Senate Bill 275, heard by members of the Senate Commerce, Consumer Protection, Energy and the Environment Committee, would make an exception to this restriction for low-income customers. 

Senate Bill 299, sponsored by Sen. Holsman, was considered by the same legislative committee.  His legislation would establish the Capital Green Program to provide funding for energy efficiency improvements, including geothermal, wind and solar energy resources to certain state buildings.  Provisions in this act would sunset six years after its effective date, Aug. 28.

In the Senate Progress and Development Committee, Sen. Curls testified before panel members on Senate Bill 224, legislation that would increase the maximum salaries that may be paid to the chief of police and officers of the Kansas City Police Department.  In addition, the bill would make actions taken by the Kansas City Board of Police Commissioners in suspending, removing or demoting the chief of police subject to review in any court of law.

Sen. Keaveny had two measures relating to pre-kindergarten programs in Missouri considered by members of the Senate Education Committee this week.  Senate Bill 132 would allow school districts to receive state aid for children ages 3-5 who are participating in a district-operated pre-kindergarten program.  Senate Bill 133 would allow school districts to receive state aid for children ages 3-5 who are eligible for free and reduced lunches and participate in a district-operating pre-kindergarten program. 

The Missouri Senate’s Daily Audio/Video clips for Feb. 28 highlight Sen. Keaveny and Sen. Holsman discusses SB 132 and SB 133 in the Senate Education Committee. 

Considered by the Senate Governmental Accountability and Fiscal Oversight Committee, Sen. Mike Parson, R-Bolivar, testified on behalf of Senate Bill 236.  His measure would allow a Missouri State Highway Patrol fund to include money for the maintenance of highway patrol vehicles, watercraft and aircraft.

The Missouri Senate’s Daily Audio/Video clips for Feb. 28 include Sen. Parson speaking to members of the Senate Governmental Accountability and Fiscal Oversight Committee about SB 236.

A joint resolution filed by Sen. Lamping would require the legislative session to end in late March rather than mid-May and move the Legislature’s annual veto session from September to June, beginning with the 99th General Assembly in 2017.  Senate Joint Resolution 5, also considered by members of the Senate Governmental Accountability and Fiscal Oversight Committee, is a constitutional amendment that would need voter approval before taking effect. 

The Missouri Senate’s Daily Audio/Video clips for Feb. 28 feature Sen. Lamping discussing SJR 5 before members of the Senate Governmental Accountability and Fiscal Oversight Committee. 

Final Week to File Legislation

More than 500 Senate measures have been filed for the 2013 legislative session.  The deadline to file legislation for senators was Feb. 28.  Sen. Jamilah Nasheed, D-St. Louis, was among the members of the upper chamber to introduce legislation before the deadline.  Her legislation, Senate Bill 482, would establish alternative procedures for public schools, including adding “performance-based credits” as a possible alternative arrangement for charter schools, allowing charter schools to participate in the School Flex Program, and creating the Missouri Credit Flex Program to allow public schools students between the ages of 16 and 22 to earn high school credit based on the demonstration of a subject area competency. 

Sen. Gary Romine, R-Farmington; Sen. Wayne Wallingford, R-Cape Girardeau; Sen. Maria Chappelle-Nadal, D-University City; and Sen. Mike Cunningham, R-Rogersville, also filed legislation before the deadline this week.  Senate Bill 449 would create and phase in over a five-year period an individual income tax deduction for business income; Senate Bill 461 would provide an alternative method for calculating Missouri taxable income for corporations; Senate Bill 469 would create the crime of failing to stop illegal weapon possession, negligent storage of a weapon, and failure to notify a school of weapon ownership; and Senate Joint Resolution 23 would create a constitutional amendment that must be approved by voters that would remove the duties of the lieutenant governor regarding his role in the Missouri Senate, respectively.

Other Senate bills filed this week include:

• Senate Bill 367, sponsored by Sen. Walsh, would create a right to unpaid leave for employees who are affected by domestic violence. 
• Senate Bill 368, sponsored by Sen. Holsman, would prohibit certain property associations for barring the installation of solar energy systems and would require a court to award reasonable attorney fees and costs to any party who prevails in an action against any association for violation of the act.
• Senate Bill 372, sponsored by Sen. Munzlinger, would allow state employees to keep firearms in their vehicles on state property and change provisions in state law relating to training requirements for concealed carry endorsements.
• Senate Bill 381, sponsored by Sen. Kraus, would create the Innovation Education Campus Fund and recognize the University of Central Missouri’s Missouri Innovation Campus.  These public two- and four-year institutions and school districts that offer programs of instruction that actively lower the cost for students to complete a college degree, decrease the amount of time required for a student to earn a college degree, provide applied learning experiences for students, and give students who graduate from their campus direct access to a career, would be available to receive funding provided by the legislation.
• Senate Bill 378, sponsored by Sen. Pearce, would change provisions of Missouri’s A+, Bright Flight, and Access Missouri financial assistance programs. 
• Senate Bill 437, also sponsored by Sen. Pearce, would create a funding model for the state’s public institutions of higher education.
• Senate Bill 457, sponsored by Sen. Parson, would bar any state employee’s salary from exceeding the governor’s salary.
• Senate Bill 466, sponsored by Sen. Schaefer, would require all donation receptacles to have the name and contact information of the receptacle owner and for the owner to have permission from the property owner where the donation bin is located. 
• Senate Bill 473, sponsored by Sen. Lamping, would change the Missouri Health Care Freedom Act, passed by Missouri voters in 2010, by prohibiting the state from implementing a health insurance exchange, banning insurers from accepting remuneration that may result in penalties, and prescribing duties of the Missouri Attorney General for enforcement of the act.

The first of the House bills have made their way over to the Senate for review, including legislation that would change Missouri’s prevailing wage laws and a measure that would modify state law relating to the Missouri Human Rights Act and employment discrimination.  The Missouri Senate is scheduled to convene Monday, March 4, at 4:00 p.m.

To follow these and other issues before the Missouri Senate, visit www.senate.mo.gov.  Visitors can track legislation considered by the General Assembly during the 2013 session, learn more about their legislative district, and listen to streaming audio of legislative debate as it happens on the Senate floor.

For more legislative news, please visit the Senate newsroom at www.senate.mo.gov/newsroom, where you will find various audio and video programs and other informational services, such as:

• Missouri Legislative Update – A video program produced throughout the legislative session and interim that provides an overview of news in the Missouri Senate and House of Representatives.  The program features news interviews with lawmakers conducted by Missourinet’s Bob Priddy and stories on issues concerning Missourians.
• This Week in the Missouri Senate – A weekly, five-minute audio program that wraps up the week’s news in the Missouri Senate.  Programs are posted online every Friday in .mp3 format.
• The Senate Minute – A condensed, one-minute audio report of current Senate news.  Programs are posted in .mp3 format and are available through podcast.
• Daily Audio/Video Clips – Throughout the year, the Senate Newsroom posts broadcast-quality audio and video highlights from Senate committee hearings, floor debate, press conferences and other legislative events.  Please note: Clips linked to this Capitol Briefing are only available for the legislative week referenced in the publication.