Sen. Dave Schatz’s Column for Oct. 17, 2018

On Nov. 6, Missourians will head to the polls to cast their votes for numerous candidates and important issues, including four proposed amendments to the Missouri Constitution.

Below you will find a description of each of the proposed ballot measures, including each measure’s official title, fiscal note, fair ballot language and any potential impact it may have on your taxes. For more information about the upcoming election, including where and how to vote, please visit the secretary of state’s website at www.sos.mo.gov.

Amendment 1

Shall the Missouri Constitution be amended to:

  • Change the process and criteria for redrawing state legislative districts during reapportionment;
  • Change limits on campaign contributions that candidates for state legislature can accept from individuals or entities;
  • Establish a limit on gifts that state legislators, and their employees, can accept from paid lobbyists;
  • Prohibit state legislators, and their employees, from serving as paid lobbyists for a period of time;
  • Prohibit political fundraising by candidates or members of the Legislature on State property; and
  • Require legislative records and proceedings to be open to the public?

State governmental entities estimate annual operating costs may increase by $189,000. Local governmental entities expect no fiscal impact.

Fair Ballot Language:

A “yes” vote will amend the Missouri Constitution to change the process and criteria for redrawing state legislative district boundaries during redistricting. Currently, bipartisan House and Senate commissions redraw boundaries, and those maps are adopted if 70 percent of the commissioners approve the maps. This amendment has a state demographer, chosen from a panel selected by the state auditor, redraw the boundaries and submit those maps to the Missouri House of Represenatives and the Missouri Senate commissions. This amendment would then allow changes to the demographer’s maps only if 70 percent of the commissioners vote to make changes and do so within two months after receiving the maps from the state demographer. The amendment also reduces the limits on campaign contributions that candidates for state senator or state representative can accept from individuals or entities by $100 per election for a Senate candidate and $500 for a House candidate. The amendment creates a $5 limit on gifts that state legislators and their employees can accept from paid lobbyists or the lobbyists’ clients and prohibits state legislators and their employees from serving as paid lobbyists for a period of two years after the end of their last legislative session. The amendment also prohibits political fundraising by candidates or members of the Legislature on state property. The amendment further requires all legislative records and proceedings to be subject to the state open meetings and records law (Missouri Sunshine Law).

A “no” vote will not amend the Missouri Constitution regarding redistricting, campaign contributions, lobbyist gifts, limits on lobbying after political service, fundraising locations and legislative records and proceedings.

Amendment 2

Shall the Missouri Constitution be amended to:

  • Allow the use of marijuana for medical purposes, and create regulations and licensing/certification procedures for marijuana and marijuana facilities;
  • Impose a 4 percent tax on the retail sale of marijuana; and
  • Use funds from these taxes for health and care services for military veterans by the Missouri Veterans Commission and to administer the program to license/certify and regulate marijuana and marijuana facilities?

This proposal is estimated to generate annual taxes and fees of $18 million for state operating costs and veterans programs and $6 million for local governments. Annual state operating costs are estimated to be $7 million.

Fair Ballot Language:

A “yes” vote will amend the Missouri Constitution to allow the use of marijuana for medical purposes under state laws. This amendment does not change federal law, which makes marijuana possession, sale and cultivation a federal offense. This amendment creates regulations and licensing procedures for medical marijuana and medical marijuana facilities — dispensary, cultivation, testing and marijuana-infused product manufacturing facilities. This amendment creates licensing fees for such facilities. This amendment will impose a 4 percent tax on the retail sale of marijuana for medical purposes by dispensary facilities. The funds from the license fees and tax will be used by the Missouri Veterans Commission for health and care services for military veterans, and by the Department of Health and Senior Services to administer the program to license/certify and regulate marijuana and marijuana facilities.

A “no” vote will not amend the Missouri Constitution as to the use of marijuana. If passed, this measure will impose a 4 percent retail sales tax on marijuana for medical purposes.

Amendment 3

Shall the Missouri Constitution be amended to:

  • Allow the use of marijuana for medical purposes, and create regulations and licensing procedures for marijuana and marijuana facilities;
  • Impose a 15 percent tax on the retail sale of marijuana, and a tax on the wholesale sale of marijuana flowers and leaves per dry-weight ounce to licensed facilities; and
  • Use funds from these taxes to establish and fund a state research institute to conduct research with the purpose of developing cures and treatments for cancer and other incurable diseases or medical conditions?

This proposal is estimated to generate annual taxes and fees of $66 million. State governmental entities estimate initial implementation costs of $186,000 and increased annual operating costs of $500,000.

Fair Ballot Language:

A “yes” vote will amend the Missouri Constitution to allow the use of marijuana for medical purposes under state laws. This amendment does not change federal law, which makes marijuana possession, sale and cultivation a federal offense. This amendment makes Brad Bradshaw (the contact person on this initiative petition) the research chairperson of a newly created research institute that is funded by fees and taxes on medical marijuana. Brad Bradshaw will select the members of the board that will govern the research institute, which will issue regulations and licensing procedures for medical marijuana and medical marijuana facilities — dispensary, cultivation and marijuana-infused product manufacturing facilities. This amendment creates licensing fees for such facilities. The amendment imposes a 15 percent tax on the retail sale of marijuana for medical purposes by dispensary facilities and a tax on the wholesale sale of marijuana flowers and leaves by cultivation facilities. The funds generated by the license fees and taxes will be used by the research institute for licensing and regulating marijuana and marijuana facilities, land acquisition and development, and conducting research with the purpose of developing cures and treatments for cancer and other incurable diseases.

A “no” vote will not amend the Missouri Constitution as to the use of marijuana.

If passed, this measure will impose a 15 percent retail sales tax on marijuana for medical uses and a wholesale sales tax on marijuana sold by medical marijuana cultivation facilities.

Amendment 4

Do you want to amend the Missouri constitution to:

  • Remove language limiting bingo game advertising that a court ruled unenforceable; and
  • Allow a member of a licensed organization conducting bingo games to participate in the management of bingo games after being a member of the organization for six months instead of the current two years?
  • State and local governmental entities estimate no costs or savings from this proposal.

Fair Ballot Language:

A “yes” vote will amend the Missouri Constitution to remove language limiting bingo game advertising that a court ruled was unconstitutional and not enforceable. This amendment would also allow a member of a licensed organization conducting bingo games to participate in the management of bingo games after being a member of the organization for six months. Currently, the constitution requires two years of membership.

A “no” vote will not amend the Missouri Constitution regarding bingo games. If passed, this measure will have no impact on taxes.

Proposition B

Do you want to amend Missouri law to:

  • Increase the state minimum wage to $8.60 per hour with an 85 cents per hour increase each year until 2023, when the state minimum wage would be $12.00 per hour;
  • Exempt government employers from the above increase; and
  • Increase the penalty for paying employees less than the minimum wage?

State and local governments estimate no direct costs or savings from the proposal, but operating costs could increase by an unknown annual amount that could be significant. State and local government tax revenue could change by an annual amount ranging from a $2.9 million decrease to a $214 million increase depending on business decisions.

Fair Ballot Language:

A “yes” vote will amend Missouri statutes to increase the state minimum wage rate as follows:

  • $8.60 per hour beginning Jan. 1, 2019;
  • $9.45 per hour beginning Jan. 1, 2020;
  • $10.30 per hour beginning Jan. 1, 2021;
  • $11.15 per hour beginning Jan. 1, 2022; and
  • $12.00 per hour beginning Jan. 1, 2023.

The amendment will exempt government employers from the above increases, and will increase the penalty for paying employees less than the minimum wage.

A “no” vote will not amend Missouri law to make these changes to the state minimum wage law. If passed, this measure will have no impact on taxes.

Proposition C

Do you want to amend Missouri law to:

  • Remove state prohibitions on personal use and possession of medical cannabis (marijuana) with a written certification by a physician who treats a patient diagnosed with a qualifying medical condition;
  • Remove state prohibitions on growth, possession, production and sale of medical marijuana by licensed and regulated facilities, and a facility’s licensed owners and employees;
  • Impose a 2 percent tax on the retail sale of medical marijuana; and
  • Use funds from this tax for veterans’ services, drug treatment, early childhood education and for public safety in cities with a medical marijuana facility?

State government entities estimate initial and one-time costs of $2.6 million, annual costs of $10 million and annual revenues of at least $10 million. Local government entities estimate no annual costs and are expected to receive at least $152,000 in annual revenues.

Fair Ballot Language:

A “yes” vote will amend Missouri statutes to allow the use of marijuana for medical purposes under state laws. This amendment does not change federal law, which makes marijuana possession, sale and cultivation a federal offense. This amendment creates regulations and licensing procedures for medical marijuana and medical marijuana facilities — dispensary, cultivation, production and testing facilities. This amendment creates licensing fees for such facilities. This amendment will impose a 2 percent tax on the retail sale of marijuana for medical purposes by dispensary facilities. The funds from the license fees will go to the Division of Liquor Control to administer the program to license/certify and regulate marijuana and marijuana facilities. The funds from the tax will be used for veterans’ services, drug treatment, early childhood education and for public safety in cities with a medical marijuana facility.

A “no” vote will not amend Missouri statutes as to the use of marijuana.

If passed, this measure will impose a 2 percent retail sales tax on marijuana for medical purposes.

Proposition D

Shall Missouri law be amended to fund:

  • Missouri state law enforcement by increasing the motor fuel tax by two and one half cents per gallon annually for four years beginning July 1, 201;,
  • Exempt Special Olympic, Paralympic and Olympic prizes from state taxes; and
  • Establish the Emergency State Freight Bottleneck Fund?

If passed, this measure will generate at least $288 million annually to the State Road Fund to provide for the funding of Missouri state law enforcement and $123 million annually to local governments for road construction and maintenance.

Fair Ballot Language:

A “yes” vote will amend Missouri statutes to fund the Missouri State Highway Patrol’s enforcement and administration of motor vehicle laws and traffic regulations. The source of the funding will be revenue from an increased state tax on motor fuel (including gasoline, diesel fuel, kerosene and blended fuel). The current state motor fuel tax rate is 17 cents per gallon. The amendment will increase the rate as follows:

  • 5 cents per gallon beginning July 1, 2019;
  • 22 cents per gallon beginning July 1, 2020;
  • 5 cents per gallon beginning July 1, 2021; and
  • 27 cents per gallon beginning July 1, 2022.

The amendment will also increase the tax on alternative fuels used for motor vehicles (including compressed natural gas, liquid natural gas and propane gas). The amendment will increase the rate from 17 cents to 27 cents per unit equivalent to a gallon of gasoline or diesel beginning Jan. 1, 2026.

The amendment will require the state auditor to audit the state’s use of the revenue generated by these taxes every two years.

Additionally, the amendment will allow a state income tax deduction for the value of any prize or award won in the Olympics, Paralympics or Special Olympics and it will create an “Emergency State Freight Bottleneck Fund,” which will be dedicated to financing road improvement projects in the state.

A “no” vote will not amend Missouri statutes to increase the motor fuel tax, exempt certain prizes from state taxes or establish the Emergency State Freight Bottleneck Fund.

If passed, this measure will increase taxes on motor fuel.

Thank you for reading this weekly column. Please contact my office at (573) 751-3678 if you have any questions.