For Immediate Release:
April 9, 2015
Contact: (573) 751-2420

Missouri Senate Perfects Legislation Ending “Pay to Play”


JEFFERSON CITY - On Wednesday (4-8), Senate Bill 389, legislation co-sponsored by Senator Gina Walsh, D-Bellefontaine Neighbors, was taken up and perfected by the Missouri Senate. If signed into law, the measure would end the practice commonly known as “pay-to-play.”

In 2009, legislation was passed requiring state fee offices to institute a competitive bidding process, and language was added directing that special consideration would be given to non-profit groups that would invest the money back into the community. Unfortunately, the Missouri Department of Revenue recently created a return-to-the-state provision offer, which awards points to a bidder if they agree to give a portion of their profits back to the state—essentially establishing a pay-to-play system within the bidding process.

“Senate Bill 389 simply clarifies the original intent of the law, which was always that we primarily want to see local, non-profits running these offices and investing their profits back into the communities they serve,” Sen. Walsh said. “In addition, it’s important that we make every attempt to ban ‘dark money’ political organizations from being able to participate in the bidding process; instead, it should be our priority to see that non-profits, such as Rotary clubs, win the business of our state fee offices.”

“Dark money” refers to money donated to political nonprofit organizations that are able to receive unlimited contributions, but which are not required to disclose the sources of their funding.

Under SB 389, the Director of the Department of Revenue must follow bidding procedures as defined in state law, and no points will be awarded for a return-to-the state bid offer. The measure also clarifies who is given special consideration in a fee office bid. It includes 501(c)(4) organizations, except those dark money political action entities. Additionally, special consideration will be given to those organizations and entities that reinvest a minimum of 75 percent of their net proceeds to charitable organizations in Missouri.

“It’s especially important in this economy to reinvest in our state wherever, and whenever, we can. I’ve previously vowed to put an end to this practice, and yesterday we came one step closer to seeing that goal realized,” Sen. Walsh said.

The Senate also approved an emergency clause within SB 389 so that the provisions of the bill may immediately go into effect, rather than having to wait until August 28, 2015—the day most new laws passed during this session will go into effect.

For more information on Sen. Walsh’s legislative actions, visit her official Senate website at www.senate.mo.gov/walsh.