Missouri Senate

Senate Committee Substitute

FINANCIAL REPORTS OF POLITICAL SUBDIVISIONS (Section 105.145)

Under current law, any transportation development district having gross revenues of less than $5,000 in a fiscal year for which an annual financial statement was not timely filed to the State Auditor is not subject to a fine.

This act provides that any political subdivision that has gross revenues of less than $5,000 or that has not levied or collected sales or use taxes in the fiscal year for which the annual financial statement was not timely filed shall not be subject to a fine.

Additionally, if failure to timely submit the annual financial statement is the result of fraud or other illegal conduct by an employee or officer of the political subdivision, the failure shall not be subject to a fine if the statement is filed within 30 days of discovery of the fraud or illegal conduct.

If the political subdivision has an outstanding balance or fines at the time it files its first annual financial statement after January 1, 2022, the Director of Revenue shall make a one-time downward adjustment to such outstanding balance in an amount that reduces the outstanding balance by 90%. If the Director of Revenue determines a fine is uncollectible, the Director shall have the authority to make a one-time downward adjustment to any outstanding penalty.

This act provides that a resident of a political subdivision may file an affidavit with the Director of Revenue with information regarding the political subdivision's failure to report. The Director of Revenue shall evaluate the allegation and, if true, notify the political subdivision it has 30 days to comply with the reporting requirements of this act. If the political subdivision fails to comply within the 30 days, and if the political subdivision has an outstanding balance for fines or penalties and is not levying or collecting taxes, and has no outstanding financial obligations, the Director of Revenue shall initiate the process to disincorporate a political subdivision as provided in the act.

The question of whether a political subdivision may be subject to disincorporation shall be submitted to the voters of the political subdivision as provided in the act. Upon the affirmative vote of a majority of voters in the political subdivision, the Director of Revenue shall file an action to disincorporate the political subdivision in the circuit court with jurisdiction over the political subdivision. The circuit court shall enforce such orders and carry out remedies as provided in the act. Additionally, the Attorney General shall have the authority to file an action in a court of competent jurisdiction against any political subdivision that fails to comply with this act.

These provisions are identical to provisions in HCS/HB 441 (2021) and substantially similar to provisions in HB 1854 (2020).

LIABILITY OF LANDOWNERS (Sections 316.250 & 537.348)

This act repeals the provision providing that the limitations on liability for owners of property used for recreational purposes does not limit liability that would otherwise be incurred for those who use the land of others, or by owners of land for injuries occurring on or in any land within the corporate boundaries of any city, municipality, town, or village in this state.

These provisions are identical to provisions in HCS/HB 441 (2021) and HB 806 (2021) and is similar to provisions in SB 411 (2021), SB 306 (2021), HB 519 (2021), and HB 2181 (2020).

MARY GRACE BRUNTRAGER