Capitol Briefing for the Week of May 4, 2015
Debate Lengthens as Senate Moves Toward Adjournment

JEFFERSON CITY — Missouri senators began the second-to-last week of the First Regular Session of the 98th General Assembly with debate on a large number of priority measures. The regular legislative session will end at 6 p.m. on Friday, May 15, 2015.

This week, lawmakers approved House Bills 17, 18, and 19, appropriations bills, which contain provisions for our state to move forward on some of these much-needed repair projects. The list of projects include electrical, plumbing and fire safety improvements; roof, window, foundation, flooring and ceiling repairs; restroom renovations; and the replacement of mechanical equipment, among other projects.

House Bill 19 contains a plan to use approximately $310 million for maintenance and repair projects. That includes $150 million for repairs of state-owned buildings and $160 million in repairs for higher education facilities. Of the $150 million for repairs of state-owned buildings, $40 million will go towards repairs to the deteriorating State Capitol building, and $100 million is slated for other state buildings.

Senate Bills Signed Into Law

Ways and Means

This week, a measure that creates a new method of allocating corporate income between states for tax purposes was signed by the governor. Senate Bill 19 will take effect on Aug. 28, 2015, and is sponsored by Sen. Will Kraus, R-Lee’s Summit.

Currently, in determining what portion of a corporation's income is taxable in Missouri, the business may use a method where the ratio of instate sales to total sales is multiplied by the net income. A method for determining whether sales of tangible property are to be considered instate is already established in current law. This new law will specify a process for all other sales.

In 2013, the General Assembly passed a bill to add the “single sales factor” as a fourth factor for multi-state corporations to use in an effort to keep businesses in Missouri.  The “single sales factor” allows large businesses to continue selling products and services in Missouri. Shortly after the bill passed, the Department of Revenue decided the bill only applied to manufacturers. Senate Bill 19 assures the “single sales factor” applies to service industry businesses as well.

Small Business

Also signed into law by the executive branch this week was Senate Bill 239, a measure that will create a statutory cause of action for damages against health care providers. The proposal is sponsored by Sen. Dan Brown, R-Rolla.

Currently, Missouri follows the common law of England as of 1607, unless the General Assembly moves from the common law statutorily. This measure excludes the English common law claims arising out of the rendering of or failure to render health care services by a health care provider and creates a statutory cause of action.

Senate Bill 239 will also reinstate caps on non-economic damages in medical malpractice lawsuits. Personal injury will be capped at $400,000 and catastrophic personal injury or wrongful death will be capped at $700,000. When a jury does return a verdict awarding non-economic damages exceeding $400,000, and upon a post-trial motion, the trial court can determine whether the limitations as provided in the act will apply.

The bill provides that if a court declares any part of the act unconstitutional, then the act and the sections it amends in their entirety would have no legal effect as of the date of such judgment. Senate Bill 239 will take effect on Aug. 28, 2015.

Senators Reverse Governor’s Action

Seniors, Families and Children

Missouri senators took time on Monday afternoon, May 4, to override the veto of Senate Bill 24, legislation that seeks to modify provisions of law relating to the Temporary Assistance for Needy Families program and Supplemental Nutrition Assistance Program. Senator David Sater, R-Cassville, is the bill sponsor.

Senate Bill 24, known as the “Strengthening Missouri Families Act,” caps the number of months a TANF recipient is eligible for benefits at 45 months. The Legislature will then be able to put the savings back into programs such as child care, job training and transportation services for TANF recipients.

The measure also tightens work activity requirements. Right now, Missouri allows two months to lapse before enforcing work activity requirements. This bill will enforce requirements right away. If a recipient doesn’t meet the requirements, then he or she may meet face-to-face with a representative of the Missouri Department of Social Services. The recipient has six weeks to comply or risk losing a 50 percent reduction of benefits; then he or she has 10 weeks to comply.

A lump sum option is also available by a cash diversion program. This is a cash grant for short-term needs. The lump-sum maximum is set at three times the family size allowance and for use once in a 12-month period and for only five instances in a lifetime.

The department would set aside a minimum of 2 percent of TANF funds, consistent with federal law and subject to appropriations, to fund alternative to abortion services and awareness programs, as well as a minimum of 2 percent of TANF funds for healthy marriage and responsible fatherhood promotion. These funds would be used to supplement, not supplant, existing funding for these programs.

SNAP allows states with a certain level of unemployment to seek a waiver of the work requirement for assistance. Missouri currently has such a waiver. Beginning Jan. 1, 2016, this measure would remove the waiver and reinstate the work requirements.

DSS would make an annual report to the Joint Committee on Government Accountability on the progress of implementation and include specified data. The committee would meet at least once a year to review the report and make recommendations to the president pro tem of the Missouri Senate and the speaker of the Missouri House.

Overriding a governor’s veto requires a two-thirds majority in both chambers of the Missouri General Assembly, or 23 Senate and 109 House votes. The veto of Senate Bill 24 was overridden by a 25-9 vote in the Senate and a 113-42 vote in the House.

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Click here to listen to The Senate Minute from Tuesday to hear more about the veto override of Senate Bill 24.

Senators Send Legislation to the Executive Branch

Education

Tuesday evening, May 5, final debate was held on House Bill 42, legislation that would modify provisions relating to elementary and secondary education. After several days of conference committee work, the proposal is now ready for consideration by the executive branch. House Bill 42 was handled in the upper chamber by Sen. David Pearce, R-Warrensburg.

This bill addresses school accreditation. Instead of designating an entire school district as unaccredited, the Department of Elementary and Secondary Education will also accredit each school building individually. The bill also addressed student transfer options. If a student is enrolled in an unaccredited school and an unaccredited district, that student may transfer to an accredited school in that district. If there is no room, the student may apply to the education authority to transfer to an accredited school in another district in the same or adjoining county. The student could also transfer to an approved charter school. If a student is enrolled in an unaccredited school in the districts in St. Louis City, Jackson County, St. Louis County or urban school districts, that student may transfer to an accredited school in the district.

Parents of students in unaccredited schools, unaccredited districts, provisionally accredited districts, Jackson County, St. Louis County or St. Louis City may enroll their student in a virtual school of the parents’ choice. A student must attend at least one semester within one of the districts listed above immediately prior to the virtual school enrollment.

The bill contains an emergency clause.

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Click here to listen to The Senate Minute from Wednesday to hear more about the final passage of House Bill 42.

Ways and Means

On Monday evening, May 4, debate was held on Senate Bill 336, a measure that would modify provisions relating to income tax withholdings on employee's tips. Bill sponsor Sen. Will Kraus, R-Lee’s Summit, says the Missouri House made some changes to his initial proposal.

This proposal specifies that for employees who earn tips, the amount of income that the employer should withhold for tax purposes should be based on the greater of the total tips reported to the employer on the employee's written statement or the amount of tips remitted to the employee by the employer. Shared tips could be attributed to the employee who actually receives the tips. The amount that should be withheld would be limited to the amount of the employee's wages in control of the employer.

Senate Bill 336 now goes to the executive branch to be signed into law, allowed to become law or be vetoed.

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Click here to watch Sen. Kraus explain Senate Bill 336 and here to see Sen. Scott Sifton, D-Affton, discuss SB 336 further on the floor of the Missouri Senate on Monday night.

Jobs

Senators, on Wednesday evening, May 6, debated and approved Senate Bill 5, sponsored by Sen. Eric Schmitt, R-Glendale. The legislation aims to modify the distribution of traffic fines and court costs collected by municipal courts.

The bill will limit the amount of annual general operating revenue generated from traffic tickets and fines to 20 percent — St. Louis County would be capped at 12.5 percent. The bill also clearly defines “annual general operating revenue.” In addition, the bill creates minimum standards for municipalities and creates a remedy process for citizens who believe the minimum standards are not being met.

Senate Bill 5 will also limit traffic fines when combined with court costs to $300. Putting a person in jail for failure to pay a fine for traffic violation is prohibited. If a person fails to appear in court, a warrant can be issued for the underlying offense. Municipalities can also request an income tax refund setoff for unpaid court costs.

Senate Bill 5 awaits final action from the executive branch.

Senators Send Bills to the House

Several hours were spent on House Bill 722, which would allow all merchants to provide customers with a choice between paper and plastic bags. The measure specifies that all merchants, itinerant vendors and peddlers have the option to provide customers with a paper or plastic bag for any item or good purchased. No political subdivision can impose any ban, fee or tax upon the use of paper or plastic bags for packaging any item or good purchased. House Bill 722 returns to the House with Senate amendments.

Committees Consider Multiple Bills

The following measures have been approved by their respective panels, reported from committee and could be debated at any time on the Senate floor.

The Governmental Accountability and Fiscal Oversight Committee, chaired by Sen. Mike Cunningham, R-Rogersville:

House Bill 137, a measure that would modify provisions relating to competitive bidding;
House Bill 529, legislation that would modify regulations on the business of insurance;
House Bill 556, which seeks to modify provisions relating to children and families;
House Bill 578, a measure that would require high school students and students seeking a high school equivalency certificate to receive a passing grade on a basic civics test;
House Bill 675, which seeks to change the laws regarding motor vehicle height and weight limits in certain city commercial zones;
House Bill 714, legislation that would modify provisions relating to emergency communications services;
House Bill 796, a measure that seeks to modify provisions relating to SNAP, TANF and MO HealthNet;
House Bill 799, legislation that would move provisions regarding judicial circuits;
House Bill 976, which would modify provisions relating to children, including immunization, amino acid-based elemental formula, court orders, juveniles with problem sexual behavior, safe sleep protocols and the Children's Services Fund;
House Bill 1063, a measure that would establish the State Capitol Complex Committee; and
House Bill 1070, legislation that seeks to establish the Office of Military Advocate under the Department of Economic Development.

The Financial & Governmental Organizations and Elections Committee, chaired by Sen. Jay Wasson, R-Nixa:

House Bill 341, which would specify that beginning Jan. 1, 2016, certain elective county offices must file ethics reports with the Missouri Ethics Commission instead of local election authorities;
House Bill 671, a  measure that provides that the state shall not require maintenance of licensure or any form of specialty medical board certification to practice medicine and modifies examination requirements for physicians;
House Bill 692, legislation that would modify the provisions relating to the election of political party committees;
House Bill 926, a measure that seeks to modify provisions relating to mortgage loan originators; and
House Bill 1039, which seeks to change filing fees for candidates in presidential primaries.

The Seniors, Families and Children Committee, chaired by Sen. David Sater, R-Cassville:

House Bill 684, legislation that would provide that child protective investigators shall provide community service program information to parents and establish the Supporting and Strengthening Families Act; and
House Bill 1149, a measure that seeks to modify provisions relating to youth in custody of the Division of Youth Services and create a special class of trust funds for the money of youth in the division's custody.

The Judiciary and Civil and Criminal Jurisprudence Committee, chaired by Sen. Dixon:

House Bill 218, a measure that would modify provisions relating to mutual aid by law enforcement officers, the costs of imprisonment and electronic monitoring and concealed carry permit fees;
House Bill 734, which would prohibit sharing of visual or aural recordings or photographs of minors alleged to be victims of child abuse, except in limited circumstances;
House Bill 807, legislation that would modify provisions relating to civil actions, wills and trusts, life insurance and crimes; and
House Bill 1019, a measure that seeks to modify the law relating to the Missouri Human Rights Act and employment discrimination.

The Small Business, Insurance and Industry Committee, chaired by Sen. Mike Parson, R-Bolivar:

House Bill 276, which exempts in bankruptcy proceedings life insurance proceeds for the burial of a family member, modifies insurance foreign investment limits, changes the requirements for the valuation of reserves for life insurance and modifies provisions regarding qualified spousal trusts;
House Bill 592, legislation that would modify provisions relating to foreign investment limits;
House Bill 1010, which seeks to modify the law relating to unemployment compensation benefits; and
House Bill 1022, a measure that would authorize a return of premiums paid by insureds.

The General Laws and Pensions Committee, chaired by Sen. Rob Schaaf, R-St. Joseph:

House Bill 494, legislation that would allow political subdivisions to assign operation of a retirement plan to the Missouri Local Government Employees' Retirement system; and
House Bill 1076, a measure that would create an exemption from motorboat noise level limits for motorboats registered for and actually participating in any fishing tournament held at the Harry S. Truman Reservoir.

The Commerce, Consumer Protection, Energy and the Environment Committee, chaired by Sen. Mike Kehoe, R-Jefferson City:

House Bill 844, which would modify the law relating to construction management services;
House Bill 1058, legislation that would modify provisions relating to the Department of Natural Resources; and
House Bill 1305, a measure that would require any comprehensive state energy plan to be approved by the General Assembly and creates the Regulatory Improvement Commission.

The Transportation, Infrastructure and Public Safety Committee, chaired by Sen. Doug Libla, R-Poplar Bluff:

House Bill 210, which would allow community college police officers to establish regulations to control vehicular traffic on any thoroughfare owned or maintained by the college;
House Bill 562, legislation that would modify regulation of auto cycle operators and exempt such operators from using protective headgear;
House Bill 635, which would modify provisions of law relating to the Amber Alert System and the Amber Alert System Oversight Committee;
House Bill 675, legislation that seeks to change the laws regarding motor vehicle height and weight limits in certain city commercial zones;
House Bill 686, a measure that seeks to modify provisions for registration of motor vehicles; and
House Bill 1002, which seeks to modify provisions related to motor vehicles.

The Jobs, Economic Development and Local Government Committee, chaired by Sen. Eric Schmitt, R-Glendale:

House Bill 613, legislation that would modify provisions relating to the collection of property taxes;
House Bill 616, a measure that seeks to specify when new political subdivisions will be effective for property tax assessment purposes;
House Bill 875, legislation that would modify provisions regarding the inclusion of an additional board of trustees member of a consolidated public library district; and
House Bill 996, which would extend the sunset on the Residential Treatment Agency Tax Credit and the Developmental Disability Care Provider Tax Credit to 2020.

The Agriculture, Food Production and Outdoor Resources Committee, chaired by Sen. Brian Munzlinger, R-Williamstown:

House Bill 830, legislation that would allow those licensed by the Department of Agriculture to grow and handle industrial hemp; and
House Bill 982, a measure that would allow the University of Missouri extension council in any county to obtain financing in order to obtain real property.

The Education Committee, chaired by Sen. David Pearce, R-Warrensburg:

House Bill 457, a measure that would require public school students to receive a 30-minute instruction in cardiopulmonary resuscitation and the proper performance of the Heimlich maneuver or other first aid for choking; and
House Bill 1127, legislation that would modify provisions relating to urban school districts.

The Ways and Means Committee, chaired by Sen. Will Kraus, R-Lee’s Summit:

House Bill 101, a measure that would create a state sales tax exemption for utilities use in food preparation;
House Bill 117, which would modify how sales tax is imposed on places of amusement and entertainment;
House Bill 444, a measure that seeks to create a new income tax deduction for taxpayers completing fire fighter training; and
House Bill 811, legislation that would modify provisions relating to income taxes.

The Veterans' Affairs and Health Committee, chaired by Sen. Dan Brown, R-Rolla:

House Bill 538, legislation that would allow pharmacists and pharmacy technicians to sell and dispense opioid antagonists;
House Bill 808, a measure that would establish the Missouri Palliative Care and Quality of Life Interdisciplinary Advisory Council and the Palliative Care Consumer and Professional Information and Education Program; and
House Bill 1066, which would change the laws regarding health care facility infection reporting.

The 2015 legislative session runs until May 15, 2015. 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 2015 session, learn more about their legislative district and listen to streaming audio of legislative debate as it happens on the Senate floor.

The Missouri Senate’s Capitol Briefing will be distributed and posted weekly throughout session. 

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:

This Week in the Missouri Senate – A weekly, 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
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This Date in Missouri Senate History
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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.