Capitol Briefing: Week of April 28, 2014
Senate Advances Its Version of the State Budget

Governor reaches deadline to act on Senate tax cut bill; lawmakers could attempt veto override

JEFFERSON CITY – Lawmakers spent the first half of the week debating the 13 budget bills that make up the state’s $26.8 billion spending plan for Fiscal Year 2015.  The Senate’s version of the budget includes a $114.8 million increase in general revenue for the state’s K-12 school foundation formula;  a 5 percent total increase in general revenue  – $43.3 million in total – regarding performance-based funding for state colleges and universities; two sources of funding to construct the new Fulton State Hospital – $198 million to authorize the building of a new facility and $14.2 million for the Fulton State Hospital Bond; and $17.8 million in general revenue – $48.1 million total – in additional funding to restore dental benefits for Medicaid-eligible adults. 

House Bills 2002-2013 now go to conference where lawmakers will iron out their differences before a final budget is passed.  Senators serving on the conference committees, in whole or in part, include Senate Appropriations Chairman Kurt Schaefer, R-Columbia; Sen. Ryan Silvey, R-Kansas City; Sen. Dan Brown, R-Rolla; Sen. Shalonn “Kiki” Curls, D-Kansas City; Sen. Gina Walsh, D-Bellefontaine Neighbors; and Sen. Scott Sifton, D-Affton.  The constitutional deadline to pass the FY 2015 state budget is Friday, May 9, 2014.

Pentagon: AUDIO/VIDEO FEATURE:  DAILY AUDIO/VIDEO CLIPS   
The Senate’s Daily Audio/Video Clips for April 29 feature Sen. Kurt Schaefer, R-Columbia (Cut 1 and Cut 4); Sen. Paul LeVota, D-Independence (Cut 2); and Sen. Jamilah Nasheed, D-St. Louis (Cut 3), discussing education funding through House Bills 2002 and 2003.  Conversation continued in the upper chamber on House Bills 2009 and 2011, which includes soundbites from Sen. Brian Munzlinger, R-Williamstown (Cut 7), Sen. Jason Holsman, D-Kansas City (Cut 8), Sen. LeVota (Cut 9), and Sen. Schaefer (Cut 10).

The Senate’s tax cut bill received the governor’s veto this week, opening the door for the General Assembly to override his rejection motion before the legislative session ends on May 16.  Senate Bill 509 & 496, sponsored by Sen. Will Kraus, R-Lee’s Summit, would institute a gradual .5 percent tax cut for individuals and a 25 percent deduction on income for small businesses.  However, these tax cuts, beginning in 2017, would only take effect if Missouri’s general revenue grows more than $150 million over the highest of the three previous fiscal years.  In addition, the legislation would require individual income tax brackets be adjusted each year based on the percentage of increase in inflation.  For individuals with a Missouri adjusted gross income of less than $20,000, the measure would also increase the personal income tax exemption by $500. To override a governor’s veto, the motion must receive a two-thirds vote in both chambers; 23 in the Senate and 109 in the House.

Legislation that received final passage in the Senate and House last week has until May 13 to receive the governor’s signature or veto.   Senate Bill 491, co-sponsored by Senate Minority Floor Leader Jolie Justus, D-Kansas City, and Senate Judiciary Chairman Bob Dixon, R-Springfield, received bi-partisan support in the upper chamber and would revise Missouri’s aging criminal code.

Pentagon: AUDIO/VIDEO FEATURE:  DAILY AUDIO/VIDEO CLIPS   
The Senate’s Daily Audio/Video Clips for April 29 include Sen. Jolie Justus, D-Kansas City (Cut 5), and Sen. Bob Dixon, R-Springfield (Cut 6), during a press conference on Senate Bill 491.

Legislation Advances to the Governor

Legislation sponsored by Sen. Ed Emery, R-Lamar, also advances to the governor this week.  Senate Bill 523 would prohibit school districts from requiring students to use identification devices that utilize radio frequency identification technology to identify students, transmit information regarding students, or monitor or track students’ locations. 

Senate Bill 510, sponsored by Sen. Kraus, would redefine the terms “misconduct” and “good cause” when determining if an individual is disqualified from receiving unemployment benefits.  The act changes “misconduct” to a knowing disregard of an employer’s interest and a knowing violation of the standards the employer expects, in addition to knowingly disregarding the employer’s interests or the duties and obligations to the employer.  The act also defines “good cause” as a term that would compel reasonable employees to cease working or require them to separate from work due to illness or disability.

To protect more Missourians against predatory practices performed by certain building contractors, the Senate and House gave final approval to Senate Bill 610, sponsored by Sen. Mike Parson, R-Bolivar.  The legislation would extend consumer protections against predatory business practices by contractors to owners of commercial, not just residential, properties. 

Additional measures sponsored by Sen. Parson move to the governor.  Senate Bill 741 would authorize gaming establishments to provide lines of credit to “high rollers.”  Applicants would have to qualify for at least $10,000 in credit, which would not be extended to those under the influence of alcohol.  Senate Bill 812 would require the Department of Economic Development to open an office in Israel, pending appropriations, to promote strategic partnerships between Missouri- and Israel-based companies.

Legislation sponsored by Sen. Mike Kehoe, R-Jefferson City, would change the duration for unemployment compensation.  Current law states the maximum duration for an individual to receive unemployment benefits is 20 weeks.  Senate Bill 673 would directly correlate Missouri’s unemployment rate with the number of weeks available to receive unemployment benefits:

  • 20 weeks – 9 percent or higher;
  • 19 weeks – between 8.5 and 9 percent;
  • 18 weeks – 8 percent up to and including 8.5 percent;
  • 17 weeks – between 7.5 and 8 percent;
  • 16 weeks – 7 percent up to and including 7.5 percent;
  • 15 weeks – between 6.5 and 7 percent;
  • 14 weeks – 6 percent up to and including 6.5 percent; and
  • 13 weeks – below 6 percent. 

A bill ushered through the upper chamber by Sen. Gary Romine, R-Farmington, to its final passage would create a new tax credit for donations to innovation campuses — partnerships between Missouri high schools, four-year colleges and universities, businesses, and two-year higher education institutions that focus on academic programs in the areas of science, technology, engineering and math, otherwise known as STEM fields.  Under House Bill 1459, for a donation to be eligible for a tax credit, it must be used to advance learning in these STEM fields.  The nonrefundable, transferable tax credit is equal to 50 percent of the taxpayer’s donation to an innovation campus, which can be carried forward for four years.  The act would sunset on Aug. 28, 2020. 

As handler of House Bill 2238, Sen. Eric, Schmitt, R-Glendale, shared his personal experience with his colleagues on the floor of the Missouri Senate this week regarding epilepsy and what this bill could mean for those affected by the disease.  The measure would allow the use of hemp extract for the treatment of intractable epilepsy.  In addition, the bill would create licensing and registration procedures for the use, manufacture, and distribution of hemp extract in Missouri.  The legislation contains an emergency clause, meaning it would immediately take effect upon the governor’s signature.  With a unanimous vote in the Senate, the bill now heads to the governor.

Pentagon: AUDIO/VIDEO FEATURE:  DAILY AUDIO/VIDEO CLIPS   
The Senate’s Daily Audio/Video Clips for May 1 include soundbites from some those in favor of House Bill 2238 — Sen. Eric Schmitt, R-Glendale (Cut 5), and Sen. Jason Holsman, D-Kansas  City (Cut 6).

Legislation sponsored by Sen. Mike Cunningham, R-Rogersville, would allow nonprofit organizations to prepare food for charitable fundraising events.  Senate Bill 525 would require clearly visible signs where the food is served, informing citizens that the food was prepared in a kitchen that is not subject to regulation and inspection.  The act does not apply to food establishments regulated by the Department of Health and Senior Services, and excludes Jefferson, St. Louis, and St. Charles counties and the City of St. Louis.  In addition, the bill would allow cottage food production operations — individuals running operations out of their home that typically produce non-potentially hazardous foods such as baked goods and candy— to be exempt from state health or food code laws.  However, each local health department and the Department of Health and Senior Services would maintain a record to complaints made against these particular operations. 

The payday loan industry would see changes with the passage of Senate Bill 694, also sponsored by Sen. Cunningham.  The bill would increase the amount payday lenders are required to pay in annual licensing from $300 to $500 for each location.  Payday lenders would also have to conspicuously post the fee for loans in terms of dollars charged per $100 loaned.  In addition, the bill would implement extended payment plans, or EPPs, for borrowers to pay outstanding loans, among other provisions.  Current law limits the total amount of accumulated interest and fees to 75 percent of the initial loan amount for the life of the loan; the act would reduce that amount to 35 percent. 

Senate Bill 600, sponsored by Sen. David Sater, R-Cassville, would expand medallion programs to include veterans who served in World War II, the Korean Conflict, or the Vietnam War as a member of the Missouri National Guard, regardless if they are a resident of Missouri.  The act would also create medallion programs for certain veterans who served in Operations Iraqi Freedom, New Dawn, Desert Shield and Desert Storm.  In addition, the legislation would change various provisions regarding license plates that honor veterans and require schools to conduct educational programs and activities as part of Veterans Day celebrations.

Senate Bill 701, sponsored by Sen. Brad Lager, R-Savannah, is an wide-ranging education bill that specifies data for inclusion in school accountability report cards, allows two or more school districts to share a superintendent, creates the Farm-to-School Program to provide schools with locally grown agricultural products to use in meals and snacks, and addresses career and technical education programs.

Noted by Sen. Rob Schaaf, R-St. Joseph, as legislation years in the making, House Bill 1603 would designate the “jumping jack” as Missouri’s official state exercise.  Senator Schaaf also sponsors the Senate version of this bill and named Gen. John J. “Black Jack” Pershing, whose boyhood home is located in Laclede, Mo., as the individual credited with inventing the jumping jack.  Missouri has nearly 30 state emblems, ranging from some of the oldest, the state seal (1822) and the state flag (1913), to some of the most recent additions, including the state amphibian, the American Bullfrog (2005), the state reptile, the three-toed box turtle (2007), and the state dessert, the ice cream cone (2008).

Upper Chamber Returns Measures to the House for Approval

Senators this week gave their approval to House Joint Resolution 68, ushered through the upper chamber by Sen. Mike Kehoe, R-Jefferson City, that will allow Missouri voters to decide if a temporary three-quarters of one cent sales and use tax is needed to help fund transportation projects in the Show-Me State.  The state’s sales and use tax, currently set at 4.225 percent, would increase by .0075 cents for a period of 10 years, at which point the tax would expire, unless renewed by voters.  The collected tax would be distributed between three funds: 5 percent would we deposited into the County Aid Transportation Fund (given to various counties for local highways and bridges, state highway system or county transportation system); 5 percent would go to the Municipal Aid Transportation Fund (distributed to various cities, towns and villages for local roads and streets, state highway system, or city transportation system); and 90 percent put into the Transportation Safety and Job Creation Fund (used for state highway system or state transportation system). 

While in effect, the state’s motor fuel tax rate could not change and there could be no authorization, ownership or operation of a toll highway or toll bridge in the state.  The Highways and Transportation Committee would be required to prepare and approve a list of projects, programs and facilities funded through a portion of the tax.  Final approval in the House would place the constitutional amendment on the ballot for Missouri voters to consider in November 2014.

Pentagon: AUDIO/VIDEO FEATURE:  DAILY AUDIO/VIDEO CLIPS   
The Senate’s Daily Audio/Video Clips for April 30 include Sen. Jason Holsman, D-Kansas City (Cut 1); Sen. David Sater, R-Cassville (Cut 2); Sen. Jamilah Nasheed, D-St. Louis (Cut 3); and Sen. Doug Libla, R-Poplar Bluff (Cut 4), debating House Joint Resolution on the Senate floor.

Also returning to the House with Senate changes is House Bill 1201, handled by Sen. Romine.  The measure would update notification requirements for certain individuals who propose to operate a surface mine and revises how permit applications for proposed surface mining operations are evaluated.  It expands the area in which surface mine operators are required to send out a notice of intent to operate a surface mine to landowners within one-half mile of the property that is either adjacent to the proposed mine plan, on the area the plan is to be located, or adjacent land where the mine is already located.   If anyone who is notified of the proposed plan requests a public meeting, the bill would require the surface mine operator to cover the cost of the meeting.

House Bill 1132, also handled by Sen. Romine, would make changes to certain benevolent tax credits in the Show-Me State.  The act would raise the cap on tax credits for donations to maternity homes and pregnancy resource centers from $2 million to $2.5 million, and food pantries from $1.25 million to $1.75 million.  Each increase would begin in Fiscal Year 2015.

Legislation relating to firearms also moves back to the House for final passage.  House Bill 1439, ushered through the upper chamber by Sen. Brian Nieves, R-Washington, would establish the Second Amendment Preservation Act and change state laws regarding open carry ordinances, school protection officers, law enforcement officers’ power to arrest, patients’ ownership of firearms, unlawful use of weapons and special prosecutors, concealed carry permits, firearm possession within housing authorities, and violations of federal transfer laws.

Pentagon: AUDIO/VIDEO FEATURE:  DAILY AUDIO/VIDEO CLIPS   
The Senate’s Daily Audio/Video Clips for May 1 include discussion on House Bill 1439 by Sen. Brian Nieves, R-Washington (Cut 3); and Sen. Jolie Justus, D-Kansas City (Cut 4).

Members of the upper chamber spent much of the week debating legislation relating to the Common Core State Standards Initiative, which set K-12 academic standards in math and English language arts/literacy geared to prepare high school graduates for higher education institutions and careers in the workforce.  Many lawmakers in the General Assembly are attempting to create an open and transparent process regarding the implementation of any education standards for Missouri students. 

House Bill 1490, handled by Sen. Ed Emery, R-Rogersville, would require the State Board of Education, by Oct, 1, 2014, to establish work groups to develop and recommend academic performance standards.  The board would also create separate work groups to evaluate the following areas of study: English language arts, math, science, and history and government.  Each subject area would cover grades K-5 and 6-12.  These work groups would have to develop and recommend academic performance standards by Oct. 1, 2015, which would be adopted and implemented beginning in the 2016-2017 school year.  The board would have to align the statewide assessment system to the new standards as needed within three years of adopting new academic performance standards.  In addition, the Commissioner of Education would be required to notify the General Assembly within six months of modifying or revising the statewide assessment system, in which the Legislature may veto any modification or revision by concurrent resolution.  More than 15 amendments were offered to the bill before it received the Senate’s approval, sending House Bill 1490 back to the House for final passage.

Pentagon: AUDIO/VIDEO FEATURE:  DAILY AUDIO/VIDEO CLIPS   
The Senate’s Daily Audio/Video Clips for April 30 feature Sen. Ed Emery, R-Lamar (Cut 5); Sen. Scott Sifton, D-Affton (Cut 6); Sen. Ryan Silvey, R-Kansas City (Cut 7); and Sen. Jason Holsman, D-Kansas City (Cut 8), during debate on House Bill 1490 in the Senate.

The Senate this week also delivered Senate Bill 964 to the House for its approval.  The legislation would add captive cervids, which includes a number of deer species, to the state’s definition of livestock.  The bill would also allow the sale of captive cervids to be exempt from sales tax; permit these animals to be considered for the purposes of urban agricultural zones; and subject these deer to the Missouri Livestock Disease Control and Eradication law, the Livestock Marketing Law, and regulation and marketing agricultural products. 

Pentagon: AUDIO/VIDEO FEATURE:  DAILY AUDIO/VIDEO CLIPS   
The Senate’s Daily Audio/Video Clips for May 1 feature Sen. Brad Lager, R-Savannah (Cut 1); and Sen. Paul LeVota, D-Independence (Cut 2), discussing Senate Bill 964 before it was sent back to the House for its approval. 

First-Round Approval Given to Education Bill

Legislation sponsored by Sen. Joseph Keaveny, D-St. Louis, was initially filed to allow school districts and charter schools to receive state aid for children ages 3-5 years old who are eligible for free and reduced lunch and are participating in the district’s or charter school’s pre-kindergarten program.  Senate Bill 538 now includes additional provisions relating to how state funding is distributed for various education programs, such as how school districts calculate free and reduced-lunch pupil count as well as how districts determine local effort.

 House Measures Considered in Senate Committees

Legislation considered by the Senate Judiciary and Civil and Criminal Jurisprudence Committee on Monday included House Bill 1539, which would protect public school students from civil or criminal penalties, fines or discipline for simulating a weapon while playing, such as using their hand or fingers to simulate a weapon; allow students to wear clothing and accessories that depict a weapon or express opinions regarding the right to bear arms or the right of self-defense, unless restricted by school policy; permit those on private property with the permission of the owner to use deadly force in certain situations; and allow a person seeking a conceal carry permit to demonstrate their ability to properly load and unload and fire either a semiautomatic pistol or revolver instead of both firearms, among other provisions.

The committee also gave its approval to the House’s version of the criminal code bill.  House Bill 1371 would change the felony classification of specified criminal offenses, establish a class E felony and a class D misdemeanor, and increase the fines for misdemeanors and felonies, among other provisions.   In addition, House Bill 1372, which revises the previously enacted “Spc. Edward Lee Myers’ Law” passed by the General Assembly in 2006, also moves to the full Senate for possible debate.  Under current law, it is a class B misdemeanor of a person to picket or protest within 300 feet of a funeral — one hour before to one hour after.  This act would create a new section of law for the offense, specifying the types of establishments where funerals or burials services may be held, providing a definition for “other protest activities,” and modifying the definition of funeral.

Members of the Senate Financial and Governmental Organizations and Elections Committee held a hearing on legislation that would establish a method for advance voting.  House Bill 2271 would create an advance voting period for federal and statewide office elections starting the third Saturday immediately preceding the election and ending the Tuesday immediately preceding the election, excluding Sundays, between the hours of 8 a.m. and 5 p.m. on weekdays and for a four-hour period between 8 a.m. and 4 p.m. on Saturdays.  One advance voting site would be established in each county, or at least one site for every 100,000 people throughout the county.

The Financial and Governmental Organizations and Elections Committee also considered House Joint Resolution 90, a constitutional amendment that also relates to early voting.  The act would establish an early voting period for federal and statewide elections beginning in 2016.  Early voting would run through the third Saturday before the election to the last Tuesday before the election, excluding Sundays.  In addition, members voted “do pass” House Bill 1411, which would require those 17 and younger to have parental consent to use tanning beds.  Any tanning facility failing to follow the requirement would have to pay a $500 fine for each violation.

The Senate Small Business, Insurance and Industry Committee wrapped up work on Monday by voting “do pass” House Bill 1468, which states workers’ compensation provisions would not apply to volunteers for certain tax-exempt groups, such as veterans’ organizations; and House Bill 1617, known as “paycheck protection,” which would allow Missouri voters to decide if authorization is needed for certain labor unions to use dues and fees to make political contributions and require consent for withholding earnings from paychecks. 

The committee wrapped up work later in the week by considering Senate Bill 946, sponsored by Sen. Dixon.  The measure would allow certain non-profit organizations to be included as minority business enterprises (MBE) and women’s business enterprises (WBE) for public contract budding preferences.  Certification as a MBE and/or WBE provides greater opportunities for certain businesses to bid on state contracts.  It also held a hearing on House Bill 1801, which would create the Facilitating Business Rapid Response to State Declared Disasters Act.  Out-of-state businesses operating in Missouri to assist in rebuilding infrastructure would be exempt from state income taxes, use taxes, and registration and bonding requirements starting 10 days prior to a disaster declaration, lasting until 50 days after the declaration period.

On Tuesday, members of the Senate Commerce, Consumer Protection, Energy and the Environment Committee conducted a hearing on Senate Bill 878, sponsored by Sen. John Lamping, R-Ladue.  The measure would create the Competitive Energy for Missouri Jobs Act, requiring the Public Service Commission to establish a transparent process for proposal requests that apply to all electrical corporations acquiring or constructing a supply-side resource that is expected to generate more than five megawatts of energy with contracted terms of 18 months or longer. 

Senators on the committee also gave their approval to House Bill 1735, advancing the measure to the full Senate for possible debate.  Currently, motor vehicles cannot be sold on Sundays in Missouri.  This act would lift the criminal penalties for selling motorcycles and motorized vehicles by powersport dealers, including motortricycles, motorized bicycles, all-terrain vehicles, recreational off-highway vehicles, utility vehicles, and personal watercraft, on Sundays.

The Senate General Laws Committee considered designation legislation this week, including House Bill 1456, which would name “Old Drum” as the state historical dog and “Jim the Wonder Dog” as Missouri’s Wonder Dog, and House Bill 2028, which would designate the month of November each year as “Epilepsy Awareness Month.”  The latter of these two measures was voted “do pass” by the committee.

Members also gave their approval legislation that would establish the Preserving Freedom from Unwarranted Surveillance Act.  House Bill 1204 would ban the use of drones or unmanned aircraft to gather evidence or other information pertaining to criminal or unlawful conduct except when presented with a warrant; law enforcement, without a warrant, would be able to use drones or aircraft in certain emergency situations.  In addition, the committee advanced House Bill 1591, which would change provisions of state law related to self-defense (identical to House Bill 1539) and concealed carry permit training requirements (similar to Senate Bill 613 and Senate Bill 745).

On Wednesday, the Senate Agriculture, Food Production and Outdoor Resources Committee gave its approval to an omnibus agriculture bill, House Bill 1326, that would add captive deer to the definition of livestock in the state, create the Missouri Dairy Revitalization Act of 2014 to study estimated state sales tax revenue generated from dairy products, and repeal the sunset on the large animal veterinarian student loan program, among other provisions.  Committee members also heard separate testimony on House Bill 1998, which would repeal the sunset provision on a student loan program designed to assist those students who go on to become large animal veterinarians. 

The Senate Education Committee conducted several hearings this week, including:

  • House Bill 1308, which would expand the Bright Flight Scholarship Program to include forgivable loans and modify requirements for students to receive the scholarship;
  • House Bill 1614, which would change procedures used to administer “Bryce’s Law” — sets up scholarships to help special needs children receive services from private facilities or public schools — and add dyslexia as a qualifying need; and
  • House Bill 1689, which would require the development of a scoring guide to reward districts that provide free full-day kindergarten for certain students, address eligibility requirements for children to enter in school district operated pre-K programs; and change the early childhood education age in relation to the quality rating system from birth to kindergarten to birth to age 3, among other provisions relating to early education programs.

The committee also gave its approval to House Bill 1303, which would create the Missouri Student Religious Liberties Act designed to prohibit schools from discriminating against students or parents due to their religious viewpoints or expression. The act would allow students to express their beliefs through homework or other assignments; pray or engage in religious activities before, during and after school; and wear and display religious messages and symbols the same way others are permitted.  However, the legislation could not require students to participate in prayer nor limit the power of any public school to maintain order and protect students’ safety.  In addition, students’ speech rights could not be violated under this law.

Lawmakers next week will continue their work on finalizing the state budget, as well as advancing legislation through both chambers in the last two weeks of session.  The Senate will convene at 3 p.m. on Monday, May 5, 2014.  To read more about the bills or committees mentioned in the Missouri Senate’s Capitol Briefing, visit www.senate.mo.gov.