JEFFERSON CITY – Members of Senate committees attend hearings this week and listen to testimony on some of this session’s top priority legislation, including tax reform and the state’s criminal code.  Senators also continue to file legislation for the 2014 legislative session.

Committee Work Encompasses Much of Lawmakers’ Time

Members of the Senate Small Business, Insurance and Industry Committee held a hearing on Senate Bill 498, sponsored by Sen. Kurt Schaefer, R-Columbia, and Senate Bill 508, sponsored by Sen. Mike Parson, R-Bolivar.  Both measures pertained to health insurance navigators.  Senator Schaefer’s bill would require health insurance navigators to be bonded by no less than $100,000 to protect individuals against wrongful acts, misrepresentations, errors, omissions, or negligence of the navigator.  It would also create a private cause of action against navigators for unlawfully releasing private identifying information.  The measure sponsored by Sen. Parson would require applicants for a navigator license to take an exam created and administered by the director of the Department of Insurance, as well as submit to a criminal background check. 

Other measures heard this week by members of this committee, chaired by Sen. Scott T. Rupp, R-Wentzville, are similar to legislation filed last session:

• Senate Bill 510, sponsored by Sen. Will Kraus, R-Lee’s Summit, would redefine “misconduct” and “good cause” for the purpose of disqualification from unemployment benefits.  The bill sponsored by Sen. Kraus last year pertaining to unemployment benefits was vetoed by the governor.
• Senate Bill 525, sponsored by Sen. Mike Cunningham, R-Rogersville, would allow a nonprofit organization to prepare food for distribution at a charitable fundraising event. 
• Another measure sponsored by Sen. Cunningham, Senate Bill 526, would require the Division of Workers’ Compensation to develop and maintain a workers’ compensation claims database.  Similar legislation filed by Sen. Cunningham last year received the governor’s veto.

In the Senate Rules, Joint Rules, Resolutions and Ethics Committee, chaired by Senate Majority Floor Leader Ron Richard, R-Joplin, members heard testimony on two bills sponsored by Sen. Bob Dixon, R-Springfield, designed to help fill office vacancies in a more timely manner.  Senate Bill 507 changes the gubernatorial appointment process for acting directors and creates the “Executive Branch Accountability Act of 2014,” which modifies the process for filling vacancies in certain state public offices.  When a vacancy occurs in the House or Senate, currently the governor must issue a “writ of election without delay.”  A provision in Sen. Dixon’s bill would remove “without delay” and require the formal order be issued within 30 days.

Senate Bill 507 contains a referendum clause, meaning provisions of the legislation, such as those dealing with acting directors, can only become effective upon the passage of a proposed constitutional amendment regarding the governor’s appointment authority: Senate Joint Resolution 30.  This resolution, if approved by Missourians, would ask voters to amend the Missouri Constitution to require the governor to appoint acting department heads only in the manner provided by law and change the process in which the governor makes appointments to fill vacancies in public offices, subject to Senate oversight.

The Senate Minute for Jan. 15 includes audio from Sen. Dixon and Sen. Paul LeVota, D-Independence, during the Senate Rules, Joint Rules, Resolutions and Ethics Committee.

Senators who serve on the Senate Education Committee heard testimony on Senate Bill 492, sponsored by Sen. David Pearce, R-Warrensburg, who also chairs the committee.  His measure would implement performance-based funding for public four-year higher education institutions in Missouri by moving the state away from enrollment-based funding to one that uses a formula to allocate money to institutions based on the number of students who complete courses and receive their degrees.  Under the proposed bill, each college or university would receive its core level of funding for the fiscal year, but 10 percent of each institution’s appropriation would be divided three ways: 90 percent based on performance measures; no more than 10 percent to address inequitable state funding on a per-student basis; and no more than 10 percent to address inequitable state funding determined on a per-credit basis.

The Senate’s Daily Audio/Video Clips for Jan. 16 features Sen. Pearce (Cut 1) during the Senate Education Committee discussing Senate Bill 492.

In the Joint Committee on Education, Vice Chairman Sen. Pearce, along with the six senators and seven representatives who also serve on the committee, heard reports from charter schools’ sponsors on their compliance with sponsorship reporting requirements as noted in state statute.  Members of the committee also heard an update from the Department of Elementary and Secondary Education on the implementation of sponsor evaluations.

Members of the Senate Judiciary and Civil and Criminal Jurisprudence Committee, chaired by Sen. Dixon, held a hearing on one of the upper chamber’s top priorities this year: overhauling Missouri’s criminal code.  Senate Bill 491, sponsored by Senate Minority Floor Leader Jolie Justus, D-Kansas City, includes acts relating to new felony and misdemeanor classes, elder and vulnerable person abuse, dangerous felonies, repeat offenders, the death penalty, assault and sex offenses, property crimes, stealing, intoxication- and drug-related offenses, and leaving the scene of an accident, among other provisions.  The legislative panel also discussed committee procedures for the 2014 session and judiciary-related issues from the legislative interim. 

Citizens can share their thoughts on how the Legislature revises the state’s criminal code on a special page created by the Missouri Senate:  www.senate.mo.gov/CrimCode/CrimCode.aspx.  On this site, visitors can also read more about the proposed criminal code legislation offered this year, review a copy of the report submitted by members of the Joint Interim Committee on the Missouri Criminal Code, and click on a series of links that display informational charts related to the code.

The Senate’s Daily Audio/Video Clips for Jan. 15 features Sen. Justus (Cut 1) and Sen. Schaefer (Cut 2) during the Senate Judiciary and Civil and Criminal Jurisprudence Committee hearing on Senate Bill 491.

The Senate Minute for Jan. 16 also includes audio from Sen. Justus regarding Senate Bill 491.

Three measures that address taxes in Missouri were heard by members of the Senate Ways and Means Committee.  Senate Bill 509, sponsored by Sen. Kraus, who also chairs the panel, makes changes to the state’s individual income tax rate by reducing the maximum tax rate on personal income by 1 percent over a set number of years under certain guidelines; creates an individual income tax deduction for business income, which is phased in over a period of time following specific criteria; exempts the first $25,000 of corporate income from taxation; and increases the personal income tax exemption to $3,100 for Missourians with an adjusted gross income of less than $20,000.

The committee also heard testimony on Senate Bill 496 and Senate Bill 497, both sponsored by Sen. Eric Schmitt, R-Glendale.  Senate Bill 496 creates an individual income tax deduction for business income and phases it in over a period of five years, among other provisions, and Senate Bill 497 reduces the top rate of tax on personal income over a period of years, reducing this rate to 5.5 percent for 2015 and lowering this rate by an additional 1.5 percent over a set amount of time under specific guidelines noted in the bill. 

The Senate’s Daily Audio/Video Clips for Jan. 16 features Sen. Schmitt (Cut 2), Sen. LeVota (Cut 3), and Sen. Maria Chappelle-Nadal, D-University City (Cut 4), during the Senate Ways and Means Committee discussing legislation relating to tax reform.

The former Missouri state senator from the 22nd District had his recent appointment by the governor to serve as director of the Department of Labor and Industrial Relations considered by members of the Senate Gubernatorial Appointments Committee this week.  President Pro Tem Tom Dempsey, R-St. Charles, who also chairs the panel, sponsored the appointment of Ryan McKenna, who was among nine other individuals up for review of their respective appointments and reappointments to one of Missouri’s more than 200 state boards and commissions.  McKenna’s appointment was confirmed by the full Senate before it adjourned for the week.

Lawmakers Continue Filing Senate Bills for 2014

Nearly 60 measures were introduced in the upper chamber this week, bringing the grand total of legislation in the House and Senate filed for the 2014 legislative session to 700 upon conclusion of the first full week of session.

Senator Justus introduced a measure that would create the “Missouri Angel Investment Incentive Act.”  Senate Bill 698 would provide tax credits to investors in certain companies, allowing businesses to apply to the Missouri Technology Corporation (MTC) to be designated as a qualified business in order for the MTC to allocate tax credits to these qualified businesses on a quarterly basis.  This tax credit would be issued to investors and equal 50 percent of their investment in the business.  No tax credits would be allocated or issued after Dec. 31, 2024.

Legislation designed to encourage foreign trade through international airports in Missouri was filed this week in the Senate.  Senate Bill 742, sponsored by Sen. Schmitt, would create the “Missouri Export Incentive Act,” providing $3.6 million in air export tax credits for FY 2015 and a little more than $8 million the following fiscal years.  The total amount of tax credits authorized over eight years is $60 million.

Additional legislation filed by Sen. Justus this week would add new requirements for child care providers who receive funding from the state.  Senate Bill 720 would establish increased child care provider training requirements, as well as requirements for building and physical premises.  The Department of Social Services must list on its website provider-specific information about health and licensing requirements, inspections, and a history of violations and compliance actions taken.  In addition, the department would also be required to provide information to parents that show the difference in the quality of child care providers.  A hotline would be set up for parents to submit provider complaints. 

A bill that would create an advance voting system for elections was also introduced by Sen. Justus.  Similar to legislation filed over the last eight years, Senate Bill 721 would allow voters to cast their ballot beginning the third Wednesday prior to an election at central voting locations and satellite sites starting in 2015.

Another measure introduced by Sen. Justus would create the “Missouri Tuition Equity Act.”  Senate Bill 722 would require any higher education institution that receives state funding to treat any student as a Missouri resident when determining tuition, fees and admissions if he or she meets certain guidelines that state the student must have: resided with his or her parent or guardian, or was emancipated, while attending high school in Missouri; graduated from a high school or received the equivalent of a high school diploma in Missouri; attended school in the Show-Me State for at least two years after the student received his or her high school diploma; lived in the United States before this legislation becomes law; and if the student is not a U.S. citizen or permanent resident, then the student would have to provide the college or university with an affidavit stating he or she will file an application to become a permanent resident.

Legislation introduced by Sen. Brad Lager, R-Savannah, would change the state’s law relating to the Missouri Human Rights Act, which prohibits discrimination in housing, employment, and places of public accommodations based on race, color, religion, national origin, ancestry, sex, disability, age (in employment only), and familial status (in housing only).  Under the Missouri Human Rights Act, it is unlawful when the protected trait, such as race, color, or religion, is a contributing factor in the decision to discriminate.  Senate Bill 703 would change that standard to when the protected action played a part, played a role, or was a motivating factor, but need not be the only factor, in the proscribed action of the employer.  However, this would not apply to disparate adverse impact claims.  Similar legislation has been filed over the last nine years in the General Assembly.

Senator Lager also filed two Senate revised bills, which must be approved by the Committee on Legislative Research to remove outdated or expired sections of state law.  Senate Revised Bill 714 would repeal expired, ineffective, and obsolete statutory provisions; and Senate Revised Bill 715 would codify previous executive branch reorganizations.

Senate Joint Resolution 42, offered by Sen. Schmitt, would establish a permanent Joint Committee on Administrative Rules to review the promulgation of rules by state agencies.  If approved by voters, this permanent joint committee would be responsible for reviewing all rules formally put into operation by state agencies and may recommend the General Assembly to disapprove and annul any rule based on certain grounds.

Senate Bill 708, sponsored by Sen. Scott Sifton, D-St. Louis, would allow emergency workers, in the event of a state of emergency declared by the state or federal government, to request, receive and submit absentee ballots.

To help honor those who served in certain wars, Senate Bill 709, sponsored by Sen. Wayne Wallingford, R-Cape Girardeau, creates two new medallion programs: “Operation Iraqi Freedom and Operation New Dawn Medallion Program” and the “Operation Desert Shield and Operation Desert Storm Medallion Program.”  In addition, the act would award a military medallion, medal and certificate of appreciation to any veteran who served in World War II, the Korean Conflict, or the Vietnam War as a member of the Missouri National Guard.

Legislation filed by Sen. Dan Brown, R-Rolla, would require hospitals in Missouri to offer flu shots to all patients age 65 and older prior to discharge.  Under Senate Bill 716, immunizations would only be offered between Oct. 1 and March 1 in accordance with the Centers for Disease Control and Prevention’s recommendations.

Senator Jamilah Nasheed, D-St. Louis, introduced legislation this week that would require the State Board of Education to adopt a classification system to accredit individual school buildings in the St. Louis and Kansas City school districts.  Senate Bill 730 is just one of many measures filed this session that addresses the state’s accreditation and school transfer issue.

A bill that would change several provisions relating to criminal procedure was filed by Sen. Joseph Keaveny, D-St. Louis.  Senate Bill 732 includes language addressing eyewitness identification procedures, custodial interrogations, and biological evidence procedures.

Numerous measures have already been filed this session pertaining to tax rates in Missouri.  Senate Bill 733, sponsored by Sen. Schaefer, would reduce the tax rate for personal income over a period of five years, and once fully phased in, the rate of tax for each bracket would be reduced by 1 percent.  His measure would also reduce the corporate income tax rate from 6.25 percent to 5.25 percent over the course of five years.  Both rate reductions would begin in 2015.  Finally, the bill would raise the maximum amount taxpayers can deduct from their federal income tax liability on their state income taxes from $5,000  to $7,500 for single taxpayers, and $10,000 to $15,000 for combined returns.

Tax credit reform is another top priority for lawmakers this session.  Senator John T. Lamping, R-Ladue, is sponsoring Senate Bill 740, which would implement a $100 million fiscal year cap for authorizations of 9 percent low-income housing tax credits; authorizations of 4 percent low-income housing tax credits would be capped at $10 million.  In addition, no more than $80 million in historic preservation tax credits would be approved for projects receiving $275,000 in tax credits, and projects which would receive less than $275,000 in tax credits would be subject to a $10 million fiscal year cap.

Another bill aimed at tax credit reform is Senate Bill 743, sponsored By Sen. Schmitt.  His legislation would place tax credit programs created by statute on or after Aug. 28, 2014, under the provisions of the Tax Credit Accountability Act of 2004.  The Department of Economic Development is required to assign these new tax credit programs to one of the categories of tax credit defined in the 2004 act, which requires certain information be provided in applying for tax incentives and mandates the reporting of information after a credit is received. 

Last year, senators showed bi-partisan support for a measure that addressed fraud relating to public assistance, including the Temporary Assistance for Needy Families (TANF) benefits program.  Now, Sen. David Sater, R-Cassville, is sponsoring Senate Bill 736, which would make additional changes to TANF benefits to help prevent public assistance fraud.  The legislation would prohibit TANF benefits (in electronic form) from being used outside the state, with exception to those recipients who are in the military or those who leave Missouri in search of a job.  In addition, the bill would impose full-family immediate sanctions for those who do not cooperate with the work activity requirement under the TANF program, and implement ways to lift the sanction and reapply for benefits; place a life-time limit for TANF (24 months); impose a family cap on increasing the monthly benefit based on the addition of a newborn 10 months after the case is opened; and implement a cash diversion program that would grant eligible TANF benefit recipients cash grants for short-term needs, instead of signing up for the long-term monthly cash assistance program.

Senator Gary Romine, R-Farmington, spent the months between legislative session working as chair of a the Senate Interim Committee on Medicaid Transformation and Reform created to reform Missouri’s public health care system for low-income citizens by improving system efficiency, financial stability and delivery of care.  Senate Bill 739, filed by Sen. Romine, contains many of the recommendations issued by committee members, including:

• Lowering the eligibility level for MO HealthNet benefits for women diagnosed with breast or cervical cancer, pregnant women, and infants under one year of age;
• Allowing children to remain on the Children’s Health Insurance Plan (CHIP) if their parents do not have access to health insurance coverage for the child through their employment or the parents are not eligible for a premium subsidy through a health care insurance exchange;
• Providing health care access to low-income public schools that have 50 percent or more students who are eligible for free or reduced-price lunch;
• Establishing the “Show-Me Health Babies Program” as a separate children’s health insurance program for any low-income unborn child; and
• Extending the MO HealthNet managed care program statewide for all eligibility groups currently enrolled in a managed care plan as of Jan. 1, 2014, among other provisions.

Senate Bill 744, sponsored by Sen. Brian Nieves, R-Washington, is similar to legislation filed last year pertaining to firearms.  Provisions found in the bill would restrict cities or towns from prohibiting individuals from openly carrying a firearm if they have a concealed carry permit; allow school districts to designate  teachers or administrators as school protection officers who would be authorized to carry a concealed firearm; prohibit health care professionals from documenting or disclosing information regarding a person’s status as a firearm owner, except under certain circumstances; lower the age to 19 for a person to obtain a conceal carry permit; and state a person would commit the offense of unlawful possession of a firearm if he or she is illegally in the United States.

Senator Lamping filed a resolution this week that would require a portion of Missouri sales and use taxes collected to be deposited into the State Road Fund, which receives state revenue when highway users pay their state license fees and taxes upon motor vehicles, trailers, and motor fuel.  A sales or use tax of 3 percent is currently imposed and deposited into the state’s General Revenue Fund.  Senate Joint Resolution 43, upon voter approval, would take a portion of this 3 percent, phased in over a period of four years, and deposit it into the State Road Fund.  Once fully implemented, 0.5 percent would be deposited into the fund.  The remaining amount collected would go into the General Revenue Fund.

A resolution that would require revenues received by the state in excess of what is appropriated be refunded to taxpayers in the form of a tax credit was introduced by Sen. Schaefer.  If passed by the General Assembly, Senate Joint Resolution 44 would appear before voters as a constitutional amendment.

Another resolution, this one introduced by Sen. Romine, would extend the timeline of the Missouri Lead Industry Employment, Economic Development and Environmental Remediation Task Force, which was slated to terminate at the beginning of February this year.  Senate Concurrent Resolution 19 would allow members of the task force to report their findings regarding efficient and cost effective remediation, ways to promote the development of a clean lead industry, rules and regulations necessary for implementation of a clean lead industry, and the economic potential of putting in place these clean lead industry policies by Dec. 31, 2014.

A similar resolution was filed to extend the dissolution date of the Joint Committee on Solid Waste Management District Operations in order take committee members’ ideas and convert them into legislative proposals.  Chaired by Sen. Wallingford, the panel is responsible for examining these districts operations, including their efficiency, and reasonableness of costs and expenses to Missouri taxpayers.  If approved, Senate Concurrent Resolution 17, offered by Sen. Wallingford, would extend the commission until Dec. 31, 2014.

To see a complete list of bills filed for the 2014 legislative session, visit www.senate.mo.gov and click on the “List of 2014 Senate Bills” link under the “Legislation” tab.  The last day to introduce bills this session is Feb. 27.

Senators Appointed to Serve on Standing Committees

Due to the vacancies created by the resignation of Sen. McKenna back in December, Sen. Dempsey appointed five senators to serve on the following committees:

• Administration – Sen. Gina Walsh, D-Bellefontaine Neighbors.  This legislative panel controls all financial obligations and business affairs of the Senate, as well as its offices and seats and the supervision of certain designated employees, among other duties.
• Agriculture, Food Production and Outdoor Resources – Sen. Jason Holsman, D-Kansas City.  This committee is responsible for considering legislation regarding food production, the state park system, and conservation of Missouri’s natural resources, as well as other agriculture-related issues.
• Gubernatorial Appointments – Sen. Shalonn “Kiki” Curls, D-Kansas City.  As a member, part of her role on the committee is to consider new appointments the governor has made to the more than 200 state boards and commissions before these appointees are confirmed by the full Senate. 
• Jobs, Economic Development and Local Government – Sen. Keaveny.  This panel reviews legislation relating to the promotion of economic development, the creation and retention of jobs, tourism and the promotion of tourism as a state industry, as well as other related issues.
• Transportation and Infrastructure – Sen. Sifton.  This committee is responsible for taking up all legislation concerning roads, highways, bridges, airports and aviation, railroads, port authorities and all other means of transportation; motor vehicles, motor vehicle registration and drivers’ licenses; and infrastructure across the state of Missouri.

To see a complete list of legislative panels in the Senate, visit www.senate.mo.gov and click on the links found under the “Committees” tab.

Among those legislative panels already scheduled for next week, the Senate Appropriations Committee is slated to continue its work on the Fiscal Year 2015 state operating budget.  The Senate’s hearing schedule can be found by visiting http://www.senate.mo.gov/hearingsschedule/hrings.htm or going to www.senate.mo.gov and clicking on the “Senate” link under the “Hearings” tab.

In observance of Martin Luther King, Jr. Day, members of the Missouri Senate are scheduled to return to the floor on Tuesday, Jan. 21, at 4 p.m.  The governor’s State of the State address is scheduled for 7:00 p.m. that same evening, followed by the State of the Judiciary, which is scheduled for 10:30 a.m. on Wednesday, Jan. 22.

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.