Missouri Senate

Senate Substitute

MISSOURI DISASTER FUND (Section 44.032)

This act allows rural electric cooperatives, as defined in the act, to receive funds from the Missouri Disaster Fund.

This provision is identical to a provision in the perfected HCS/HB 1734 (2022).

CHARITABLE ORGANIZATIONS (Section 407.475)

Under this act, the state shall not impose any additional annual filing or reporting requirements on a charitable organization that are more stringent, restrictive, or expansive than the report already required to be submitted to the Attorney General's office unless such filing or report is specifically required by federal law. This provision shall not apply to labor organizations, state grants or contracts, or investigations by the Attorney General of charitable organizations as set forth in state statute.

The restriction on additional annual filing or reporting requirements on a charitable organization shall not apply when such organization is providing any report or disclosure required by state law to be filed with the Secretary of State.

These provisions are similar to HB 1490 (2022), provisions in CCS/HCS/SS/SB 333 (2021), and to HB 245 (2021).

COVENANTS INVOLVING BUSINESS ENTITIES (Sections 431.201 & 431.202)

This act modifies provisions relating to covenants between business entities and employees, distributors, dealers, franchisees, lessees, licensees, or owners or sellers of assets or interests in a business entity.

Currently, a covenant regarding solicitation, hiring, or otherwise interfering with an employee is enforceable if certain criteria are met. This act modifies that provision and requires that a covenant between an employer and an employee promising not to solicit, recruit, hire, induce, persuade, encourage, or otherwise interfere with an employee is enforceable if the covenant is between employers and employees, excluding secretarial or clerical employees with no interest in the business entity, and the post-employment or post-business duration is no more than two years. Additionally, a covenant regarding interference with an employee shall be conclusively presumed to be reasonable if its post-employment or post-business duration is no more than two years, instead of one year.

This act provides that a reasonable covenant in writing promising not to solicit, induce, persuade, encourage, accept business from, or otherwise interfere with, directly or indirectly, a business entity's customers shall be enforceable if the following requirements are met:

(1) The covenant is limited to customers with whom the employee dealt, as defined in the act; and

(2) The covenant between a business entity and an employee is not associated with the sale or ownership of assets or any interest in a business entity and does not continue for more than two years following the end of employment;

(3) The covenant between a business entity and a distributor, dealer, franchisee, lessee of real or personal property, or licensee of a trademark, trade dress, or service mark is not associated with the sale or ownership of assets or any interest in a business entity and does not continue for more than three years following the end of the business relationship; or

(4) The covenant between a business entity and the owner or seller of assets or interest in a business entity does not continue for more than the longer of either five years or the period during which payments are made as measured from the date of termination, closing, or disposition.

A breach or threatened breach of a covenant between a business entity and the owner or seller of assets or interest in a business entity shall create a conclusive presumption of irreparable harm in the absence of injunctive relief, without the necessity of establishing evidence of any actual or threatened damages or harm. Additionally, a provision in such a covenant in which an employee promises to provide notice to a business entity of the employee's intent to terminate, sell, or otherwise dispose of an asset or interest is presumed to be enforceable if the notice period is no longer than 30 days and the business entity agrees to pay the employee's regular rate of pay and regular benefits during the notice period.

The reasonableness of a covenant shall be determined by the facts and circumstances pertaining to it. Furthermore, this act provides that a covenant shall be presumed to be reasonable if its post-employment, post-termination, post-business relationship, post-sale, or post-disposition duration does not exceed the duration requirements.

No express reference to geographical area is required for the enforceability of a covenant. Additionally, a covenant that is overbroad, overlong, or otherwise unreasonable to protect legitimate business interests of the person seeking enforcement shall be modified by a court, which shall only grant relief reasonably necessary to protect those interests.

These provisions are identical to SB 833 (2022).

GRANTS TO NOT-FOR-PROFIT RELIGIOUS ORGANIZATIONS (Section 650.570)

This act shall be known and may be cited as the "Faith Without Fear Act."

This act provides that the Department of Public Safety shall distribute to any not-for-profit religious organization a one-time grant for the purpose of enhancing physical security. Each not-for-profit religious organization shall receive no more than one grant pursuant to this act and grants shall not exceed 75% of the total cost of the security enhancement. Additionally, no more than $25 million shall be distributed pursuant to this act and no more than $2.5 million per any fiscal year. Finally, no more than $50,000 shall be distributed to any one not-for-profit religious organization annually.

The Department of Public Safety shall create an on-line application form as part of its website which shall be the sole means of applying for grants under this act. The not-for-profit religious organization shall submit documents with its application showing how it plans to enhance security, including how it will cover the remaining 25% of the cost for its security not covered by the grant.

The Department shall supervise the processing of such applications, provided that applications shall be accepted beginning October 1, 2022. The Department shall select qualified recipients to receive grants and any not-for-profit religious organization who receives a grant shall submit documentation to the Department no later than one year after the distribution of the grant showing how the funds were spent. Grant funds shall only be used for locations in Missouri and employees residing in Missouri.

These provisions are similar to SB 1151 (2022).

JAMIE ANDREWS