SB 333
Modifies provisions relating to nonprofit organizations
Sponsor:
LR Number:
1579S.05S
Last Action:
5/13/2021 - In Conference
Journal Page:
Title:
CCS HCS SS SB 333
Calendar Position:
13
Effective Date:
August 28, 2021
House Handler:

Current Bill Summary

CCS/HCS/SS/SB 333 - This act modifies provisions relating to nonprofit organizations.

PERSONAL PRIVACY (Section 105.1500):

This act establishes the Personal Privacy Protection Act prohibiting public agencies, as defined in the act, from disclosing or requiring the disclosure of personal information, as defined in the act. Specifically, public agencies are prohibited from:

· Requiring any individual to provide the public agency with personal information, as defined in the act, or otherwise compel the release of such personal information;

· Requiring any entity exempt from federal income taxation under Section 501(c) of the Internal Revenue Code to provide the public agency with personal information or otherwise compel the release of personal information;

· Releasing, publicizing, or otherwise publicly disclosing personal information in possession of a public agency; or

· Requesting or requiring a current or prospective contractor or grantee with the public agency to provide the public agency with a list of entities exempt from federal income tax under Section 501(c) of the Internal Revenue Code to which it has provided financial or nonfinancial support.

The act contains various exceptions to these prohibitions.

Any person or entity may bring a civil action for appropriate injunctive relief, damages, or both. Damages may be not less than $2,500 to compensate for injury or loss caused by each violation of this act and, for an intentional violation, a sum of money not to exceed three times the sum of damages assessed. A court may additionally award all or a portion of the costs of litigation, including reasonable attorney fees and witness fees, to the complainant in the action if the court determines that the award is appropriate. Furthermore, a person who knowingly violates this act is guilty of a Class B misdemeanor.

This provision is substantially similar to HCS/HB 1030 (2021) and SB 464 (2021).

SUPPLEMENTAL NUTRITION ASSISTANCE PROGRAM FARMERS' MARKET PROGRAM (Section 208.018):

The current Supplemental Nutrition Assistance Program (SNAP) farmers' market pilot program expired on October 10, 2020. This act reauthorizes the program until August 28, 2027.

This provision is identical to SB 575 (2021) and to a provision in the truly agreed SS/SCS/HS/HB 432 (2021).

FARMERS' MARKET NUTRITION PROGRAM (Section 208.285):

This act changes the Missouri Senior Farmers' Market Nutrition Program to the Missouri Farmers' Market Nutrition Program and expands the program to include low-income pregnant and postpartum women, infants, and children under 5 years of age who are at nutritional risk. Additionally, this act removes language in current statute permitting vouchers under the program to be used at roadside stands and community-supported agriculture programs (CSAs).

This act modifies voucher distribution to permit eligible individuals to receive program vouchers from distribution sites in their county of residence or a neighboring county.

These provisions are identical to provisions in the truly agreed SS/SCS/HS/HB 432 (2021) and substantially similar to SB 525 (2021) and HB 652 (2021).

FARM TO FOOD BANK PROJECT (Section 208.1060):

This act requires the Department of Social Services to submit a state plan to the U.S. Department of Agriculture for a "Farm to Food Bank Project" and to contract with any qualified food bank for the purpose of operating the project.

This provision is identical to a provision in the truly agreed SS/SCS/HS/HB 432 (2021) and SB 562 (2021).

CHILD AND ADULT FOOD PROGRAM (Section 210.251):

Under this act, Missouri shall have no stricter requirements than federal regulations for participants in administering the program for at-risk school children through the federal Child and Adult Care Food Program. Facilities shall not be required to be licensed child care providers to participate in the program, as long as minimum health and safety standards are met and documented.

This provision is identical to a provision in the truly agreed SS/SCS/HS/HB 432 (2021), SCS/SB 563 (2021) and HCS/HB 1337 (2021).

HISTORIC CEMETERY (Section 253.387):

This act authorizes the Department of Natural Resources to acquire by purchase or gift the Antioch Cemetery in Clinton, Missouri, to be operated and maintained by the Division of State Parks within the Department. The Department shall make adequate provisions for the proper care, maintenance, and safekeeping of the property. The cemetery is hereby designated as a state historic site.

The Department is required to allow for burials to continue

until all plots have been purchased. The Department shall charge no more than $100 per burial to be credited to the "Antioch Cemetery Fund", established in the act. The Department shall not be liable for additional costs associated with the burial.

This provision is substantially similar to a provision in the truly agreed SS/HCS/HB 369 (2021), a provision in HCS/SCS/SB 40 (2021), and SB 396 (2021).

FOOD INSECURITY TASK FORCE (Section 261.450):

This act establishes the Missouri Food Security Task Force, to be comprised of 25 members as set forth in the act.

The task force shall report a summary of its activities and recommendations to the Governor and the General Assembly before August 28th of each year, and shall terminate on December 31, 2023, or may be extended until December 31, 2025, as determined necessary by the Department of Agriculture.

This provision is identical to SCS/SB 441 (2021) and to a provision in the truly agreed SS/SCS/HS/HB 432 (2021) and is similar to HB 597 (2021).

ENTITIES REGISTERED WITH THE SECRETARY OF STATE (Sections 347.020-358.470):

This act creates and amends various provisions regulating limited liability companies (LLCs) and partnerships.

NAMES OF LIMITED LIABILITY COMPANIES

(SECTION 347.020)

The act prohibits the name of any dissolved or canceled LLC from being used by any other for a period of one year following the dissolution or cancellation.

LIMITED LIABILITY COMPANIES - INFORMATION STATEMENTS

(SECTION 347.044, 347.179, 347.183)

Every limited liability company (LLC) and foreign limited liability company (foreign LLC) is required to file an information statement with the Secretary of State (SOS) once every 5 years, accompanied by a fee of $15, or $5 if filed electronically. The SOS is permitted to administratively cancel the articles of incorporation of an LLC or the registration of a foreign LLC for failure to timely file an information statement. The act provides procedures for allowing a foreign LLC to apply to the SOS to have its registration reinstated following such a cancellation. Procedures are also created allowing an LLC to apply for reinstatement following the erroneous or accidental filing of a notice of winding up or notice of termination.

FILING FEES

(SECTIONS 347.179, 347.183, 358.460, and 358.470)

The act reduces various filing fees imposed on LLC's and partnerships for filing certain documents with the SOS and provides for reduced fees for filing certain documents in an electronic format. Additionally, the act creates the following new fees:

· A fee of $95 for filing a withdrawal of an erroneously or accidentally filed notice of winding up or articles of termination; and

· For a filing relating to a limited liability series an additional fee of ten dollars for each series affected or, if filing online in an electronic format prescribed by the secretary, a fee of five dollars for each series effected.

T hese provisions are similar to SCS/HCS/HB 162 (2021) and SCS/SB 286 (2021).

MEDICAL MARIJUANA FACILITIES (Section 362.034):

This act provides that any entity licensed to do business in Missouri as a medical marijuana facility as set forth in the Missouri Constitution may request a state or local licensing authority to share the entity's application, license, or other financial information with a banking institution and also with the banking institution's state and federal supervisory agencies. The entity shall include a waiver with its request to authorize the transfer of confidential information, however this act does not authorize the disclosure of such confidential information except as reasonably necessary to facilitate the such request.

This provision is identical to a provision in HCS/SS/SB 283 (2021).

RURAL ELECTRIC COOPERATIVES (Section 394.120):

Under the act, the board of directors of a rural electric cooperative shall have the power to set the time and place of the annual meeting and also to provide for voting by proxy, electronic means, by mail, or any combination thereof, and to prescribe the conditions under which such voting shall be exercised. The meeting requirement may be satisfied through virtual means.

This provision expires on August 28, 2022.

This provision is identical to a provision in the perfected SS#2/SCS/SB 202 (2021), a provision in CCS/HCS/SS/SB 141 (2021), a provision in the truly agreed HCS/SS/SB 44 (2021), and a provision in the truly agreed CCS/SS/SCS/HCS/HB 734 (2021).

CHARITABLE ORGANIZATIONS (Section 407.475):

Further, under the act, the state shall not impose any annual filing or reporting requirements on a charitable organization that are more stringent, restrictive, or expansive than the report already required to be submitted to the Attorney General's office unless such filing or report is specifically required by federal law. This provision shall not apply to state grants or contracts, or investigations by the Attorney General of charitable organizations as set forth in state statute. Further, this provision shall not prohibit the Department of Labor and Industrial Relations or the State Board of Mediation from enforcing provisions of law relating to labor organizations.

This provision is similar to HCS/HB 245 (2021) and identical to a provision in SCS/HCS/HB 162 (2021).

COVENANTS BETWEEN CERTAIN BUSINESS ENTITIES AND CERTAIN OTHER PARTIES (Sections 431.201 & 431.202):

This act modifies provisions relating to covenants between business entities and employees, distributors, dealers, franchisees, lessees, licensees, or owners or sellers of assets or interests in a business entity.

Currently, a covenant regarding solicitation, hiring, or otherwise interfering with an employee is enforceable if certain criteria is met. This act modifies that provision and requires that a covenant between an employer and an employee promising not to solicit, recruit, hire, induce, persuade, encourage, or otherwise interfere with an employee is enforceable if the covenant is between employers and employees, excluding secretarial or clerical employees with no interest in the business entity, and the post-employment or post-business duration is no more than two years. Additionally, a covenant regarding interference with an employee shall be conclusively presumed to be reasonable if its post-employment or post-business duration is no more than two years, instead of one year.

This act provides that a reasonable covenant in writing promising not to solicit, induce, persuade, encourage, accept business from, or otherwise interfere with, directly or indirectly, a business entity's customers shall be enforceable if the following requirements are met:

(1) The covenant is limited to customers with whom the employee dealt, as defined in the act; and

(2) The covenant between a business entity and an employee is not associated with the sale or ownership of assets or any interest in a business entity and does not continue for more than two years following the end of employment;

(3) The covenant between a business entity and a distributor, dealer, franchisee, lessee of real or personal property, or licensee of a trademark, trade dress, or service mark is not associated with the sale or ownership of assets or any interest in a business entity and does not continue for more than three years following the end of the business relationship; or

(4) The covenant between a business entity and the owner or seller of assets or interest in a business entity does not continue for more than the longer of either five years or the period during which payments are made as measured from the date of termination, closing, or disposition.

A breach or threatened breach of a covenant between a business entity and the owner or seller of assets or interest in a business entity shall create a presumption of irreparable harm in the absence of injunctive relief without the necessity of establishing evidence of any actual or threatened damages or harm. Additionally, a provision in such a covenant in which an employee promises to provide notice to a business entity of the employee's intent to terminate, sell, or otherwise dispose of an asset or interest is presumed to be enforceable if the notice period is no longer than 30 days and the business entity agrees to pay the employee's regular rate of pay and regular benefits during the notice period.

The reasonableness of a covenant shall be determined by the facts and circumstances pertaining to it. Furthermore, this act provides that a covenant shall be presumed to be reasonable if its post-employment, post-termination, post-business relationship, post-sale, or post-disposition duration does not exceed the duration requirements.

No express reference to geographical area is required for the enforceability of a covenant. Additionally, a covenant that is overbroad, overlong, or otherwise unreasonable to protect legitimate business interests of the person seeking enforcement shall be modified by a court, which shall only grant relief reasonably necessary to protect those interests.

These provisions are identical to the perfected HB 1008 (2021), provisions in SCS/HCS/HB 1204 (2021), provisions in SCS/HCS/HB 1242 (2021), and similar to SB 181 (2021).

JAMIE ANDREWS