Senate Passes Right to Work, Crowdfunding Legislation Heard in Committee
It was a big week in the Missouri Senate. The Senate voted today to make Missouri the 28th Right to Work state. Passing Right to Work has been a major goal of the majority caucus in both chambers for years now. Senate Bill 19 will now make its way to the House for further debate. While there are still a few more steps in the process, there is now one less hurdle to clear before Right to Work legislation ends up on the governor’s desk.
In other legislative news, three of my sponsored bills were heard in committee this week. On Monday, I presented two bills that are continuations of previous years’ efforts. The first measure, Senate Bill 126, will make the process of bringing to justice those individuals who have committed theft offenses less cumbersome for victims. Current state law requires crimes to be prosecuted in the county in which they occurred or in which any element of the offense occurred; certain offenses, such as identity theft, can also be prosecuted in the county in which the victim resides. My legislation will add robbery, stealing and similar offenses to the list of crimes that can be prosecuted in the county in which the victim resides or conducts business. I first filed this language in 2015. Senate Bill 126 was heard in the Judiciary and Civil and Criminal Jurisprudence Committee.
That same day, I presented Senate Bill 125 to the Professional Registration Committee. This measure will bring Missouri’s professional licensure system into the 21st century. In 2013, state lawmakers approved a new licensure system for all licensees within the Division of Professional Registration; however, a number of current statutory impediments must first be addressed before the new system can effectively serve Missouri’s 430,000 licensed professionals.
If signed into law, SB 125 will allow licensed professionals to fulfill many of their licensure-related requirements online, including: applying for licensure or renewing a license, paying fees, requesting extensions for completing continuing education requirements and notifying their license-granting board or commission of any name or address changes, among other items. In addition, employers will be able to verify licenses, and the public will be able to report any problems they may have with a licensed professional.
On Tuesday, I presented my third bill of the week to the Insurance and Banking Committee. Very simply, Senate Bill 12 creates a statutory path for new businesses in Missouri to raise initial capital by selling securities to everyday citizens.
In April 2012, the Jumpstart Our Business Startups Act, or JOBS Act, was signed into law, opening the door for businesses to use crowdfunding. Although other sections of the Act were implemented more quickly, it took until May 2016 for eligible companies and investors to be able to start taking advantage of this new opportunity. While the federal government has given its approval to crowdfunding, it falls on each state to establish the necessary exemption laws.
If successful, SB 12 will enable ordinary citizens — not just the super wealthy — to use crowdfunding to invest in small businesses. Most importantly, it gives investors added protections by allowing them to become shareholders in the companies they are funding. There is up to a $5,000 contribution limit per individual and a $2 million cap for how much capital companies can raise through crowdfunding. In addition, businesses must be registered in Missouri, and their funds must be deposited into a financial institution authorized to do business in our state.
For new startups and very small businesses, securing traditional bank loans can be an uphill battle. My legislation will make it easier for people to raise the capital they need to open their doors and find their footing. Thirty-one states currently have exemption laws. I would like to make Missouri the 32nd.
If you have any questions or comments regarding your state government, please feel free to contact me at (573) 751-1503. You are also welcome to e-mail me at jay.wasson@senate.mo.gov.