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The Week of March 20, 2023

On the Floor

The Senate returned from legislative spring break this week expecting to continue discussion on Senate Bill 39 and Senate Bill 49. After beginning Monday’s session at its scheduled time, the Senate went into a 13 hour filibuster. The Senate gave first round approval to these proposals and adjourned early the next morning, reconvening later that day at 4 p.m. On Thursday, the Senate passed both of these bills.

Senate Bill 39 would prohibit public or private K-12 schools and public or private higher education institutions from allowing students to compete in an athletic competition that is designated for the biological sex opposite of the student’s biological sex listed on their birth certificate. Senate Bill 49 would restrict gender transition treatments for transgender children after August 28, 2023, which will be the effective date for the bill if it becomes law.

The Senate also passed the following bills:

•            Senate Joint Resolution 26, if approved by voters, would provide a tax exemption on real and personal property taxes for child care facilities used primarily for the care of a child outside of the individual’s home.

•            Senate Bill 181 would privatize the Missouri Employers Mutual Insurance Company.

•            Senate Bill 40 modifies provisions relating to background checks.

The Senate gave first round approval to the following pieces of legislation:

•            Senate Bill 247, which would deduct certain retirement and social security benefits from an individual’s adjusted gross income.

•            Senate Joint Resolution 35, a constitutional amendment that, if approved by voters, would authorize the real property replacement tax levy to be decreased by the elected governing body of the county.

•            Senate Bill 63 allows banking institutions to do business with licensed marijuana facilities in the state.

•            Senate Bill 131 would exempt all sales of firearms and ammunition sold in this state from state and local sales taxes.

•            Senate Bill 143 would establish a tax credit for grocery stores in a food desert.

Bills and Committees

Due to the filibuster and lengthy debate on Senate Bill 39 and Senate Bill 49 on Monday night, all committee hearings on Tuesday were canceled.

Judiciary Committee:

Under current law, victims of certain crimes must be notified by the prosecutor’s office and law enforcement of certain filings or status updates regarding the criminal case in which they are a victim, and Senate Bill 337 adds that the victim must be notified by mail or e-mail.

Appropriations Committee:

The committee heard an overview of the governor’s second supplemental budget for FY 2023. This funding acts as a cushion for state departments and ensures they are able to meet their financial obligations before the start of the 2024 Fiscal Year, which begins July 1.

Other News

Legal sports gambling clears House

A bill to legalize sports wagering in Missouri cleared the House of Representatives on March 22, but faces an uncertain future in the Senate, where similar legislation has failed in recent years in a dispute over how to address the proliferation of unregulated slot machines around the state.

House Bill 556 would authorize Missouri’s 13 licensed casinos to operate sports books on their premises, as well as offer online wagering. It also would impose a 10% tax on sports bets, less than half the usual tax rate levied on casino gambling.

Thirty-six states have legalized sports betting since the U.S. Supreme Court struck down a federal ban on the practice in 2018. Missouri has lagged, however, as some lawmakers wish to tie legalization of sports betting to the regulation of video lottery terminals (VLT), which are slot machine-style games that have become common in gas stations, bars and other locations.

The Missouri Gaming Commission, the regulator for the state’s casinos, considers VLTs illegal slot machines, as does the Missouri State Highway Patrol, which is charged with enforcing state gambling laws. While some county prosecutors successfully have brought criminal cases regarding VLTs, others have been reluctant to do so, claiming the legality of the machines is ambiguous.

Although sports betting supporters want to keep the issues separate, lawmakers seeking to legalize, regulate and tax VLTs so far have been successful in blocking the issue from advancing in the Senate. A Senate committee approved a similar sports betting bill earlier this year, but the chamber hasn’t yet brought it up for debate.

House approves eliminating Missouri’s corporate income tax

The House of Representatives on March 23 voted to eliminate Missouri’s corporate income tax. This legislation is estimated to cost the state over $1 billion in lost revenue once fully implemented. The bill now advances to the Senate.

Missouri’s corporate income tax rate is currently 4%. Starting in 2024, House Bill 816 would gradually reduce the rate each year until it is completely eliminated in 2027.

Supreme Court upholds ban on county CAFO regulations

The Missouri Supreme Court on March 21 upheld the constitutionality of a state law prohibiting counties from regulating concentrated animal feeding operations (CAFO). The court unanimously ruled the law didn’t infringe on any constitutional powers of counties relating to agriculture or violate rules against passing deceptive legislation.

The challenged statute bars counties from enacting restrictions on agricultural facilities that are more stringent than state law. The General Assembly enacted it in 2019 to nullify local restrictions on CAFOs, which, because of odor and pollution issues, often spark opposition from nearby residents.

The Cedar County Commission, along with other plaintiffs, challenged the law in an attempt to preserve a local health ordinance that limited CAFO operations in the county. The case is Cedar County Commission, et al., v. Gov. Michael Parson, et al.

House endorses limits on growth in residential tax values

Increases in the tax value for residential property would be restricted under a proposed constitutional amendment the House of Representatives approved March 23. The proposal also would freeze the tax value of homes owned and occupied by taxpayers age 65 or older.

Supporters of House Joint Resolution 33 say it would protect homeowners, especially senior citizens, from being taxed out of their homes by skyrocketing real estate prices and the corresponding increases in property taxes.

Opponents say the solution proposed by HJR 33 would create new inequities, with some homeowners paying far more in taxes than their neighbors based on arbitrary factors such as age or how recently a home’s ownership has changed. The latter is a factor since it would cap the rate of growth in tax values for homes that remain under the same ownership, while a sale would reset a property’s tax value based on its sales price.

If also approved by the Senate, HJR 33 would automatically go on the November 2024 statewide ballot for voter approval.

CONTACT INFORMATION

Thank you for your interest in the legislative process. I look forward to hearing from you on the issues that are important to you this legislative session. If there is anything my office can do for you, please do not hesitate to contact my office at (573) 751-3599.