JEFFERSON CITY – Before lawmakers made their way back to their respective legislative districts for the General Assembly’s annual spring recess, the Legislature gave its final approval to various measures — moving these Senate bills to the governor for his signature — that address certain benevolent tax credits, and would spur economic development through various tax credits.  Lawmakers in the Senate also advanced bills to the House regarding public employees’ dues and fees taken from paychecks, as well as personal and corporate income tax reform. 

At the 2013 legislative session’s mid-point, more than 480 Senate bills have been introduced, approximately 60 have received first-round approval, and more than 60 have been passed by the Senate and delivered to the House of Representatives.  Several of these Senate bills have moved on to the governor’s office for executive approval. 

Senate Bills Delivered to Governor

The first Senate bills voted out of the upper chamber this session are the first measures to reach the governor’s desk for his signature this year.  Senate Bill 20, 15 & 19, sponsored by Sen. Bob Dixon, R-Springfield; Majority Floor Leader Ron Richard, R-Joplin; and Sen. Jay Wasson, R-Nixa, respectively, would modify various provisions in state law regarding certain benevolent tax credits.  Senate Bill 20 and its corresponding measures would change Missouri law regarding certain benevolent tax credit programs.  The legislation would:

• Extend the Public Safety Officer Surviving Spouse tax credit program (sunsets December 2019);
• Eliminate provisions authorizing funds from the Special Needs Adoption tax credits  to be used for the Children in Crisis tax credit, establish a $2 million cap for in-state adoptions, and prohibit the use of this tax credit for out-of-state adoptions;
• Change the name of the Children in Crisis tax credit to the Champion for Children tax credit, reauthorize the tax credit to sunset in December 2019, and establish a $2 million per tax year cap for the tax credit (contributions made on or after Jan. 1, 2013 would be eligible for the tax credit);
• Extend the sunset to December 2019 on a section of state law that creates the tax credit for certain taxpayers who modify their homes to make them accessible for a disabled resident;
• Remove spending requirements for remaining tax credits under the Rebuilding Communities tax credit program;
• Reauthorize tax credits for contributions to pregnancy resource centers and food pantries (both to sunset December 2019), reducing the cap to $1.25 million per fiscal year for food pantry tax credits (contributions made on or after Jan. 1, 2013, would be eligible for both tax credits); and
• Place the recently created developmental disability care provider tax credit program under the requirements of the Tax Credit Accountability Act of 2004.

The House amended the bill by removing the Senate’s provision that would prohibit ethnic background or membership in a minority group from being the sole factor that is used to consider youth who cannot be returned to their parents’ home as children with special needs.  This factor would have been considered in determining whether or not individuals receive a tax credit for adopting special needs children.  Senate Bill 20, 15 & 19 contain an emergency clause, meaning the legislation would take effect immediately upon receipt of the governor’s signature.

The Senate’s Daily Audio/Video Clips from March 14 include Sen. Dixon and Sen. Scott Sifton, D-Affton, discussing SB 20, 15 & 19 on the Senate floor before final passage of the bill. 

In addition, Senate Bill 10, sponsored by Sen. Eric Schmitt, R-Glendale, would create a tax credit to attract amateur sporting events to the Show-Me State.  The legislation would create a refundable income and financial institutions tax credit which would be available for sports commissions, certain nonprofit organizations, counties and municipalities to offset expenses incurred in attracting amateur sporting events to the state, such as national collegiate championship games.  Applicants for this tax credit would have to submit their game support contracts to the Department of Economic Development for approval.  This tax credit would equal $5 for every ticket sold to the sporting event or 100 percent of eligible expenses incurred, with no more than $3 million in tax credits issued per fiscal year.  Senate Bill 10 would take effect on Aug. 28 upon the governor’s approval. 

Senate Advances Measures to the House

The Missouri Senate this week gave its final passage to Senate Bill 26, sponsored by Sen. Will Kraus, R-Lee’s Summit.  The measure is designed to cut certain taxes to promote job growth in Missouri, one of the Senate’s legislative priorities for the 2013 legislative session.  Senate Bill 26 would lower individual and corporate state income tax by .75 percent over a five-year period, beginning with tax year 2014.  For all tax years beginning on or after 2018, the maximum tax rate for personal income would be 5.25 percent; the maximum tax rate on corporate income would be 5.5 percent for all tax years beginning on or after Jan. 1, 2018. 

Currently, there is a personal exemption of $2,100 for individual income taxes.  Senate Bill 26 would increase this exemption by $2,000 for Missourians with an adjusted gross income of less than $20,000.  In addition, small businesses would be allowed to deduct 5 percent of business income for the 2013 tax year, and once fully phased in, would be allowed a 50 percent deduction for all tax years after the 2016 tax year.  The act exempts the first $25,000 of corporate income from taxation.

Also phased in over a five-year period, Senate Bill 26 would raise the state sales and use tax — a tax imposed on the purchase price of tangible personal property of taxable service sold at retail —from 4 to 4.5 percent.  The legislation will also allow the collection of taxes on Internet sales.  If the federal government passes the Marketplace Fairness Act of 2013, a measure that would grant states the authority to compel online and catalog retailers to collect sales tax at the time of a transaction similar to brick and mortar businesses, or similar legislation, the maximum rate of tax on personal income would be reduced by an additional .25 percent.  If passed by the Missouri House and signed by the governor into law, Senate Bill 26 would take effect Jan. 1, 2014. 

The Senate’s Daily Audio/Video Clips from March 13 feature Sen. Kraus and Sen. Paul LeVota, D-Independence, debating SB 26 before it received final approval in the Senate.

The Missouri Senate also gave its final approval to legislation that would require authorization for certain labor unions to use dues and fees to make political contributions and bar these unions from withholding earnings from their members’ paychecks.  Senate Bill 29, sponsored by Sen. Dan Brown, R-Rolla, would require annual written approval from public employee union members in order to withhold earnings for dues, agency shop fees, or any other fee paid by public employee members of a labor organization. 

The form outlined in the bill would read: “Signing this form authorizes the amount of $... to be withheld from your monthly earnings and allocated to your labor organization as a portion of your dues, agency shop fees, or other fee payments for the next twelve months.  You are not obligated to sign this authorization.  Your signature below is completely voluntary and cannot in any way affect your employment.”

The legislation also requires union members’ permission to use their dues or agency shop fee payments as a political contribution or expenditure.  Individuals who do not authorize political contributions would not have their dues, agency shop fees, or other fees increased.  In addition, signing or refraining from signing these authorizations would not be a condition of employment or continued employment.  Provisions found in Senate Bill 29 would not apply to organizations that represent first responders, such as police officers, firefighters, or nurses and physicians. 

The Senate’s Daily Audio/Video Clips from March 12 include Sen. Brown discussing SB 29 during its perfection motion on the floor of the Missouri Senate.  Sen. LeVota and Senate President Pro Tem Tom Dempsey, R-St. Charles, also share their thoughts on the bill before the Senate gives its final approval to the measure on March 14.

Senators also gave their final approval to Senate Bill 125, which would change provisions relating to duties of boards of education.  The measure, sponsored by Sen. Jamilah Nasheed, D-St. Louis, would require the declaration of new administrative rules that include standards, appropriate scoring guides, forms, instruments and procedures used in determining the accreditation status of a district.  The legislation would allow tenured teachers in the St. Louis City School District to be removed based on incompetency, shorten the written notification waiting period from at least one semester to 30 days in order to dismiss a teacher for inefficiency and incompetency in the line of duty, and prohibit the appointment of teachers when there are properly qualified teachers on unrequested leave of absence to fill vacancies, among other provisions. 

The Senate’s Daily Audio/Video Clips from March 14 feature Sen. Nasheed speaking to her colleagues about SB 125 before its receives final passage in the upper chamber.

A resolution has been delivered to the House urging the federal government to stop the Affordable Care Act’s disproportionate share hospital (DSH) payment reductions.  These adjustable payments provide additional health to those hospitals that serve a significantly disproportionate number of low-income patients.  Missouri receives an annual DSH allotment to cover the costs of these hospitals that provide care to certain individuals who are not covered by Medicare, Medicaid, the Children’s Health Insurance Program (CHIP) or other forms of health insurance.  Senate Concurrent Resolution 5, sponsored by Sen. John T. Lamping, R-Ladue, asks lawmakers in Washington, D.C., to reimburse states for a portion of their Medicaid DSH payments based on each state’s federal medical assistance percentage for those states that have decided not to implement the Medicaid expansion allowable under the Affordable Care Act. 

Lawmakers spend several hours this week discussing and ultimately giving final approval to a resolution that would impose a temporary one-cent sales and use tax for transportation purposes.  Senate Joint Resolution 16, sponsored by Sen. Mike Kehoe, R-Jefferson City, and co-sponsored by Sen. Ryan McKenna, D-Crystal City, would put to the vote of the people a ballot proposal that would raise Missouri’s sales and use tax by 1 percent for a 10-year period.  The proceeds from the additional sales and use tax would be used for transportation-related items:  5 percent of the sales and use tax proceeds would be distributed to various counties; another 5 percent would be distributed to various cities, towns and villages; and the remainder of the sales and use tax proceeds would be used for state highway or transportation system purposes.  The temporary sales and use tax measure would be resubmitted to Missouri voters every 10 years until the ballot proposal is defeated.  Additionally, counties and municipalities are prohibited from tolling existing highways or bridges during the duration of the sales and use tax implemented by SJR 16.

The Senate’s Daily Audio/Video Clips from March 12 highlight Sen. Kehoe and Sen. McKenna talking about SJR 16 before their colleagues in the upper chamber.  A clip from March 14 also includes Sen. Kehoe discussing this resolution before it receives final approval in the Senate.

Legislation sponsored by Sen. Shalonn “Kiki” Curls, D-Kansas City, would increase the maximum salaries that may be paid to the chief of police and offices of the Kansas City Police Department.  Senate Bill 224 would also allow actions taken by the Kansas City Board of Police Commissioners, such as suspending, removing or demoting the chief of police, subject to review by any court.

The Senate’s Daily Audio/Video Clips from March 14 feature Sen. Curls discussing SB 224 in the Senate chamber before senators gave their final approval to the measure.

House Bill 14, handled in the upper chamber by Senate Appropriations Chairman Sen. Kurt Schaefer, R-Columbia, is a supplemental appropriations bill in the amount of $219 million that would provide funding for the remaining six months of 2013 for the School Food Services Program ($16 million), School Age Child Care Program ($1.5 million), Access Missouri Financial Assistance Program ($2.5 million), and the Rail Program under the Department of Transportation ($13.5 million), among other programs.  Final approval in the House would send this measure to the governor for his signature.

The Senate’s Daily Audio/Video Clips from March 14 include Sen. Schaefer explaining the measure to his colleagues in the Missouri Senate. 

Senate/House Bills Voted Out of Committees

A bill that would provide medical freedom of conscience protection for medical professionals and health care institutions with respect to certain medical procedures and research, such as abortion, contraception, sterilization, human cloning, or human embryonic stem cell research, among others, was voted out of the Senate Judiciary and Civil and Criminal Jurisprudence Committee this week.  Senate Bill 84, sponsored by Sen. Scott T. Rupp, R-Wentzville, would prevent medical professionals or health care institutions from being held liable for declining to participate in or provide procedures or research for certain medical services that violates their religious, moral or ethical principles.  The health care facility would provide a consent form to patients before admission stating it reserves the right to decline specific medical procedures or research. 

Senate Bill 2, a measure also sponsored by Sen. Rupp, was voted out of the Senate Financial and Governmental Organizations and Elections Committee this week.  His legislation would require the Missouri Secretary of State to post certain initiative and referendum material on the office’s official website.  The legislation also increases the penalties for forging signatures on petitions, and creates a new crime for fraudulently obtaining signatures, offering money or other items in exchange for a signature, or knowingly paying a person who has committed signature fraud. 

Voted “do pass” by members of the same committee, Senate Bill 82, sponsored by Sen. Schaefer, is also on its way to the full Senate for potential debate.  The bill would require the governor to call a special election within 30 days if the office of lieutenant governor is vacated.  The election would be held within three months of the call for a special election and the victor would serve for the remainder of the term in which the vacancy occurred.  Under the bill, the chief administrative assistant of the vacating lieutenant governor would perform all official duties during the period of any vacancy.  The measure contains a severability clause, meaning provisions under Senate Bill 82 would remain effective and enforceable even if other provisions are declared void by a court of law. 

Senate Bill 350, sponsored by Senate Leader Dempsey, would modify the Senior Citizens Property Tax Credit and create the Missouri Senior Services Protection Fund.  Currently, the credit is given to certain senior citizens and 100 percent disabled individuals for a portion of the real estate taxes or rent they have paid for the year, with a maximum of $750 for renters and $1,000 for those who own and occupy their home.  The actual credit is based on the amount of real estate taxes or rent paid and total household income.  Senate Bill 350  would eliminate the renter’s portion of the Senior Citizens Property Tax Credit  and require the Department of Revenue to calculate how much of the renter’s portion of the tax credit was redeemed in Fiscal Year 2012.  Beginning FY 2014, this calculated amount would be deposited into a newly created Missouri Senior Services Protection Fund, in which funding would be used to provide services for low-income seniors and disabled individuals.

Legislation that would require Missourians to submit a specified form of photo ID in order to vote in a public election (House Bill 48) and its companion joint resolution that proposes a constitutional amendment to go before a vote of the people that would require individuals to provide a valid government-issued photo ID in order to cast their ballot (House Joint Resolution 5) were also voted out of the Senate Financial and Governmental Organizations and Elections Committee this week.  More specifically, House Bill 48 would require all costs incurred by an election authority to implement the photo ID requirement to be reimbursed by the state; if the state does not appropriate and distribute funds for the photo IDs, the election authority would not be able to enforce the photo ID requirement.  The legislation would also require the state and all fee offices to provide, at no cost, at least one form of personal ID required for voting to qualified individuals who do not already possess the required ID and are requesting the identification in order to cast their ballot.

Under the bill, Missourians may cast their vote using a provisional ballot after signing an affidavit, including individuals who have a physical or mental disability or handicap, have an inability to pay for a birth certificate or other documentation necessary to obtain the ID required to vote, have a religious belief against these forms of personal ID, or if they were born on or before Jan. 1, 1948.  Additionally, provisional ballots submitted by citizens who fail to a photo ID would be counted after they return to the election authority within three days after the election with a valid form of ID.

Testimony Considered by Senate Panels

Legislation sponsored by Senate Minority Floor Leader Jolie Justus, D-Kansas City, would revamp Missouri’s criminal code.  Enacted more than 30 years ago, Missouri’s criminal code contains crimes and punishment, sentencing provisions, defenses, and principals of liability.  Among other provisions, Senate Bill 253 would create new felony and misdemeanor classes, change various provisions relating to domestic violence, enhance penalties for repeat offenders, as well as address various crimes relating to sexual offenses, stealing and property crime, gambling, drug and intoxication-related offenses, and leaving the scene of an accident.

The Senate’s Daily Audio/Video Clips from March 12 feature Sen. Justus presenting SB 253 before members of the Senate Judiciary and Civil and Criminal Jurisprudence Committee.

Senate Bill 309, sponsored by Sen. Rob Schaaf, R-St. Joseph, would prohibit certain types of public benefit corporations from entering into agreements to operate state-based or federally facilitated health insurance exchanges.  Entering into such an agreement under the bill, which was considered by members of the Senate Small Business, Insurance and Industry Committee, would constitute grounds for administrative dissolution under Missouri’s nonprofit corporation law.

Heard by members of the same committee, Sen. Rupp testified on behalf of his legislation that would allow proof of financial responsibility to be displayed using an image on a mobile electronic device, such as cell phone or tablet.  Senate Bill 319 would also allow certain types of policies (property, liability, accident and health, etc.) to be posted on an insurance company’s website as long as it does not contain personally identifiable information.  Similar legislation sponsored by Sen. Gary Romine, R-Farmington, was also considered by the Senate Small Business, Insurance and Industry Committee.  Senate Bill 319 was combined this week with Sen. Romine’s Senate Bill 317, which would allow motorists to provide proof of financial responsibility insurance by mobile electronic devices. 

A hearing conducted by the Senate General Laws Committee included testimony on a bill sponsored by Sen. Brian Nieves, R-Washington.  Senate Bill 325 would declare the General Assembly’s position on the authority of the federal government, specifically stating federal supremacy would not apply to federal laws that restrict or prohibit the manufacture, ownership and use of firearms, firearm accessories or ammunition within the state because these laws exceed the scope of the federal government’s authority.  The bill also would declare invalid all federal laws that infringe on the right to bear arms under the Second Amendment to the U.S. Constitution and Article I, Section 23 of the Missouri Constitution.  Finally, SB 325 would declare that it is the duty of the courts and law enforcement agencies to protect the rights of law-abiding citizens to keep and bear arms.

Senate Bill 349, sponsored by Sen. LeVota was considered by members of the Senate Appropriations Committee this week, who later voted against moving the legislation to the Senate for full debate.  His measure would have provided the expansion of MO HealthNet services beginning of Jan. 1, 2014, to those individuals between the ages of 19-65 who are not otherwise eligible for MO HealthNet service, qualify for MO HealthNet services under provisions of the Affordable Care Act of 2010, and who have an income at or below 133 percent of the federal poverty level plus 5 percent of the applicable family size.  In addition, the legislation would have required the reimbursement rate to MO HealthNet providers for MO HealthNet service provided to individuals would be comparable to commercial reimbursement payment levels.

The Senate’s Daily Audio/Video Clips from March 13 include Sen. LeVota testifying on behalf of SB 349 before members of the Senate Appropriations Committee.  The committee chairman, Sen. Schaefer, is also featured from this day’s clips.

Lawmakers have adjourned for their annual spring recess, a time when many senators to return to their districts and meet with constituents about their work at the Capitol.  The General Assembly will return to Jefferson Monday, March 25 at 4 p.m. to begin the second half to of the 2013 legislative session.

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.