TO: FROM: RE: DATE:
St. Joseph Area Legislative Partnership Mark Rhoads, Datra Herzog, and Trent Watson Legislative Report May 1, 2009
TWO WEEKS REMAIN IN REGULAR SESSION: The Missouri General Assembly will adjourn at 6:00 p.m. on May 15. It remains unclear whether the legislature will be called into special session by the Governor to deal with budget issues, federal stimulus funding issues and economic development issues. The schedule calls for the General Assembly to work on Friday, May 8 and Friday, May 15. Therefore, we will be unable to prepare and send full reports next week. We will communicate with you on any major developments and are always available to talk by phone or by e-mail. THIS WEEK IN JEFFERSON CITY: Adding to an already bizarre string of events, the Missouri House on Thursday voted to reject HB 22, the budget bill that is meant to guide the spending of federal stimulus funds. The House had given preliminary approval to the bill on Wednesday, but voted the measure down (68 – 82) in the third reading vote of the bill. HB 22 contained spending provisions for $400 million in federal stimulus funding in FY 2010 and another $158 million in FY 2011. The bill left enough money to fund the controversial $1 billion set-aside for an income tax cut that was endorsed by House leadership last week. Democrats railed against the bill because House Budget Chairman Allen Icet and House leaders by-passed the House Budget Committee and sent the bill directly to the House rules Committee. Allegations of pork-barrel spending were common throughout the debate on the floor. Large ticket issues in the bill included $112 million for a new interoperability radio system for the Highway Patrol, $31 million to build a new cancer center at the University of Missouri-Columbia, and $12 million to fund the financially strapped Metro public transit system in St. Louis. Rep. Icet told reporters that he was shocked by the vote and was not certain as to the next steps. The House also on Thursday approved another measure (SB 71) that would provide for a one-half percentage point reduction in the state’s income tax. The permanent tax cut would cost $463 million in state income tax revenues and is being viewed with concern by Senate leaders who will have to consider the revised bill. On Wednesday, the Senate debated for hours HJR 10, a constitutional measure that would make changes in the way that Missouri judges are chosen. Senator Jim Lembke (Lemay) blasted the current system of judicial selection from a list compiled by judicial commissions, alleging that attorney organizations had hi-jacked the system. HJR 10 would provide more discretion to the governor to reject panels submitted for judicial
openings and would decrease the number of attorneys and judges comprising nonpartisan judicial commissions. Lembke ran into strong opposition from several of his colleagues who are attorneys as well as Sen. Wes Shoemyer, a farmer from Northeast Missouri. Shoemyer and Senator-attorney Jolie Justus (D-Kansas City) were largely responsible for filibustering the bill. In the end, the measure was laid over and is unlikely to see any additional debate this session. This week, the Senate Appropriations Committee approved HJR 32, a constitutional amendment sponsored by Rep. Chris Kelly (D-Columbia) that would permit the state to issue $800 million in bonds to finance capital improvement projects for higher education institutions. Kelly’s original measure called for $700 million in bonding, but Sen. Kurt Schaefer added an additional $100 million by amendment. Schaefer’s amendment also inserted language that $250 million of the bonds would be used for state buildings, facilities and projects for purposes other than higher education. The fate of the measure is in limbo because the measure may have to pass muster in the Senate Committee on Governmental Accountability and Fiscal Oversight, which has been the burial ground for bills that could cost the state money.
FAIR TAX BILL HEARD IN SENATE WAYS AND MEANS: One of the more active hearings this past week occurred in the Senate Ways and Means Committee where a packed house came to hear HJR 36, the fair tax plan. This proposal was sponsored by Rep. Ed Emery (R – Lamar) and proposes a Constitutional amendment to be voted on by the people of the state of Missouri replacing individual and corporate income tax and sales and use tax with a sales tax on retail sales of new tangible property and taxable services. During this proposal, Rep. Emery told the Senate Ways and Means Committee that he was proposing an amendment to make it very clear that he wanted this proposal to definitely include a sales tax on all new home purchases as well. In the state of Missouri, the fair tax plan is the brain child of the Americans for Prosperity organization which is headed up by former State Rep. Carl Bearden of St. Charles County. The Americans for Prosperity organization bussed in proponents of this proposal from all over the state and many of them testified in support of this proposal. Testifying in support of the bill were Americans for Prosperity, the Missouri Fair Tax Coalition and numerous citizens. As you might imagine, every major organization represented in the capitol opposed the new tax system. Realtors, CPA’s, title insurance agents, broadcasters, and advocacy groups, all came together to voice their opposition to this controversial new tax system. The hearing ran out of time and the opponents to the measure will have their say this coming week. That will leave very little time to get this measure to the Senate floor for debate. TAX CREDIT REVIEW: According to current Missouri statute the Budget Committee must meet each fiscal year to review current and sunsetting tax credits. This review took place on Wednesday April 29. There were seven departments that were there for review and a total of sixty-five tax credits. The following are the Departments that were present to present to the committee the tax credits: Department of Agriculture, Department of Health and Senior Services, Department of Insurance, Financial Institutions and Professional Registration, Department of Natural Resources, Department of Revenue, Department of Social Services, and Department of Economic Development. Representatives Bringer and Harris stated that they were in favor of lowering the caps on several tax credits that were
did not receive many applications. The committee voted to accept the report with a vote of 19-2. UNAUTHORIZED ALIENS: This week the Senate Education Committee held a hearing on HB 390 sponsored by Rep. Nolte (R-Clay). This substitute changes the laws regarding unauthorized aliens. In its main provisions, the substitute: (1) Prohibits the enrollment of unlawfully present aliens in any public institution of higher education. The Department of Higher Education must annually certify to the appropriation committees of the General Assembly prior to the approval of any appropriations that each campus of an institution has not knowingly enrolled any illegal alien (Sections 172.360, 174.130, 175.025, 178.635, 178.780, and 178.785, RSMo); (2) Prohibits college or university students who are unlawfully present in the United States from receiving certain types of financial aid, including institutional aid and state-administered postsecondary grants and scholarships. Documents which may be used to verify a student's lawful presence in the United States are specified, including the Free Application for Student Aid Institutional Student Information Record; a state-issued driver's license or nondriver's identification card; documentary evidence accepted by the Department of Revenue when processing an application for a driver's license or nondriver's identification card; a United States birth certificate; a United States military identification card; or any document issued by the federal government that confirms lawful presence. All postsecondary institutions of higher education must annually certify to the Department of Higher Education that they have not knowingly awarded financial aid to students who are unlawfully present in the United States (Section 173.1110); (3) Specifies that postsecondary education public benefits and contracts or agreements between public utility providers and their customers will not be considered public benefits in the provisions that prohibit aliens unlawfully present in the United States from receiving a state or local public benefit. No additional verification is required within the same agency once the lawful presence of an applicant for public benefits has been verified through the Systematic Alien Verification for Entitlements Program. The substitute clarifies that the provisions that prohibit aliens unlawfully present in the United States from receiving a state or local public benefit does not apply to nonprofit organizations duly registered with the Internal Revenue Service (Section 208.009); (4) Allows, during or immediately after a natural or manmade disaster, business entities 15 working days to enroll and participate in a federal work authorization program as a condition for the award of certain public contracts (Section 285.530); (5) Specifies that the requirement that certain businesses must participate in a federal work authorization program will not apply if the federal government discontinues or fails to authorize or implement a program (Section 285.555); and (6) Clarifies that an employee on a public works project must complete only one 10-hour Occupational Safety and Health Administration (OSHA) construction safety program or similar program approved by the Department of Labor and Industrial Relations (Section 292.675). The substitute contains an emergency clause. Testifying in support for this bill were University of Missouri, Missouri Department of Higher Education and Springfield City Utilities. Testifying in opposition were Catholic Conference, Missouri NEA and Catholic Charities of Missouri. The committee to no further action.
“711 FIX”: This week the House and Senate sent to conference SCS HCS HB 148 sponsored by Rep. Franz (R-Howell). The Conference Committee Report on SCS HCS HB 148 will contain the following compromise language (which has been truncated for space): 137.073. 1. As used in this section, the following terms mean: (1) "General reassessment", changes in value, entered in the assessor's books, of a substantial portion of the parcels of real property within a county resulting wholly or partly from reappraisal of value or other actions of the assessor or county equalization body or ordered by the state tax commission or any court; (2) "Tax rate", "rate", or "rate of levy", singular or plural, includes the tax rate for each purpose of taxation of property a taxing authority is authorized to levy without a vote and any tax rate authorized by election, including bond interest and sinking fund; (3) "Tax rate ceiling", a tax rate as revised by the taxing authority to comply with the provisions of this section or when a court has determined the tax rate[; except that, other provisions of law to the contrary notwithstanding, a school district may levy the operating levy for school purposes required for the current year pursuant to subsection 2 of section 163.021, RSMo, less all adjustments required pursuant to article X, section 22 of the Missouri Constitution, if such tax rate does not exceed the highest tax rate in effect subsequent to the 1980 tax year]. This is the maximum tax rate that may be levied, unless a higher tax rate ceiling is approved by voters of the political subdivision as provided in this section; (4) "Tax revenue", when referring to the previous year, means the actual receipts from ad valorem levies on all classes of property, including state-assessed property, in the immediately preceding fiscal year of the political subdivision, plus an allowance for taxes billed but not collected in the fiscal year and plus an additional allowance for the revenue which would have been collected from property which was annexed by such political subdivision but which was not previously used in determining tax revenue pursuant to this section. The term "tax revenue" shall not include any receipts from ad valorem levies on any property of a railroad corporation or a public utility, as these terms are defined in section 386.020, RSMo, which were assessed by the assessor of a county or city in the previous year but are assessed by the state tax commission in the current year. All school districts and those counties levying sales taxes pursuant to chapter 67, RSMo, shall include in the calculation of tax revenue an amount equivalent to that by which they reduced property tax levies as a result of sales tax pursuant to section 67.505, RSMo, and section 164.013, RSMo, or as excess home dock city or county fees as provided in subsection 4 of section 313.820, RSMo, in the immediately preceding fiscal year but not including any amount calculated to adjust for prior years. For purposes of political subdivisions which were authorized to levy a tax in the prior year but which did not levy such tax or levied a reduced rate, the term "tax revenue", as used in relation to the revision of tax levies mandated by law, shall mean the revenues equal to the amount that would have been available if the voluntary rate reduction had not been made. 2. Whenever changes in assessed valuation are entered in the assessor's books for any personal property, in the aggregate, or for any subclass of real property as such subclasses are established in section 4(b) of article X of the Missouri Constitution and defined in section 137.016, the county clerk in all counties and the assessor of St. Louis City shall notify each political subdivision wholly or partially within the county or St. Louis City of the change in valuation of each subclass of real property, individually, and personal
property, in the aggregate, exclusive of new construction and improvements. All political subdivisions shall immediately revise the applicable rates of levy for each purpose for each subclass of real property, individually, and personal property, in the aggregate, for which taxes are levied to the extent necessary to produce from all taxable property, exclusive of new construction and improvements, substantially the same amount of tax revenue as was produced in the previous year for each subclass of real property, individually, and personal property, in the aggregate, except that the rate may not exceed the greater of the rate in effect in the 1984 tax year or the most recent voter-approved rate. For the 2009 tax year, any political subdivision may levy a rate sufficient to generate substantially the same amount of tax revenue as was produced in the 2007 tax year from all taxable property, exclusive of any new construction or improvements attributable to tax years 2008 and 2009, except that such rate shall not exceed the greater of the rate in effect for the 1984 tax year or the most recent voter approved tax rate. Such tax revenue shall not include any receipts from ad valorem levies on any real property which was assessed by the assessor of a county or city in such previous year but is assessed by the assessor of a county or city in the current year in a different subclass of real property. Where the taxing authority is a school district for the purposes of revising the applicable rates of levy for each subclass of real property, the tax revenues from state-assessed railroad and utility property shall be apportioned and attributed to each subclass of real property based on the percentage of the total assessed valuation of the county that each subclass of real property represents in the current taxable year. As provided in section 22 of article X of the constitution, a political subdivision may also revise each levy to allow for inflationary assessment growth occurring within the political subdivision. The inflationary growth factor for any such subclass of real property or personal property shall be limited to the actual assessment growth in such subclass or class, exclusive of new construction and improvements, and exclusive of the assessed value on any real property which was assessed by the assessor of a county or city in the current year in a different subclass of real property, but not to exceed the consumer price index or five percent, whichever is lower. Should the tax revenue of a political subdivision from the various tax rates determined in this subsection be different than the tax revenue that would have been determined from a single tax rate as calculated pursuant to the method of calculation in this subsection prior to January 1, 2003, then the political subdivision shall revise the tax rates of those subclasses of real property, individually, and/or personal property, in the aggregate, in which there is a tax rate reduction, pursuant to the provisions of this subsection. Such revision shall yield an amount equal to such difference and shall be apportioned among such subclasses of real property, individually, and/or personal property, in the aggregate, based on the relative assessed valuation of the class or subclasses of property experiencing a tax rate reduction. Such revision in the tax rates of each class or subclass shall be made by computing the percentage of current year adjusted assessed valuation of each class or subclass with a tax rate reduction to the total current year adjusted assessed valuation of the class or subclasses with a tax rate reduction, multiplying the resulting percentages by the revenue difference between the single rate calculation and the calculations pursuant to this subsection and dividing by the respective adjusted current year assessed valuation of each class or subclass to determine the adjustment to the rate to be levied upon each class or subclass of property. The adjustment computed herein shall be multiplied by one hundred, rounded to four decimals in the manner provided in this subsection, and added to the initial rate computed for each class or subclass of property.
Notwithstanding any provision of this subsection to the contrary, no revision to the rate of levy for personal property shall cause such levy to increase over the levy for personal property from the prior year. Two new subsections were added as well. They are as follows: 11. Any political subdivision which levies a tax rate greater than the most recent voter-approved rate shall provide notice of such fact in a newspaper of general circulation within such political subdivision: (1) No later than fourteen days following the setting of such tax rate; (2) At least once between October 15th and November 15th of such tax year; and (3) On the fifteenth day of December of such tax year. 12. For all tax years beginning on or after January 1, 2010, the county collector shall include in each taxpayer's tax bill the current tax rate and the most recent voter-approved tax rate for each purpose for each political subdivision located at least partially within the county levying a tax on property.
LIQUOR CONTROL: This week the house Third Read and Passed HCS SB 171 sponsored by Sen. Griesheimer (R-Franklin) and handled by Rep. Schlottach (RGasconade). This act modifies various provisions relating to liquor control. This act repeals the current provisions regulating nonintoxicating beer and requires such beer to be regulated in the same manner as other intoxicating liquors. Currently, a liquor license may not be denied, suspended, or revoked based solely on the fact that an employee has a felony conviction unrelated to the manufacture or sale of alcohol if the employee does not directly participate in retail sales. Under this act, the employee would no longer be prohibited from directly participating in retail sales. This act defines a "wine manufacturer" as a person, partnership, association, or corporation, who has properly procured a license, and who manufactures in excess of two hundred gallons of wine per calendar year. Currently, it is a violation for a person with a license to sell liquor to sell liquor, or offer to sell liquor, brewed, manufactured or distilled by one manufacturer in substitution for, or with the representation that any such liquor is the product of another brewer, manufacturer, or distiller. Under this act, it shall not be a violation if such licensee sells, or offers to sell, wine or brandy, as long as the manufacturer of the wine or brandy has provided the Supervisor of Alcohol and Tobacco Control with a copy of the certificate of label approval issued by the Alcohol and Tobacco Tax and Trade Bureau, and if necessary, has properly registered such label or name with the appropriate state agency. This act allows certain charitable, fraternal, religious, service, or veterans' organizations that are exempt from federal taxes and have a license to sell intoxicating liquor by the drink on their premises to open on Sundays at 9:00 a.m. instead of 11:00 a.m.
This act allows a restaurant bar without an onsite brewery that serves 45 or more different types of draft beer to sell 32 fluid ounces or more of beer to customers for consumption off the premises. Under this act, no person or business shall have more than five liquor licenses, rather than three. This act repeals certain liquor control provisions pertaining to wholesalers, including exceptions to the wholesaler price regulations and provisions requiring wholesalers to file a schedule with the Supervisor of Alcohol and Tobacco Control in order to operate. Instead, wholesalers are required to make product information, including price, available to retailers no later than five days prior to the first day of the month in which the pricing will be effective. The price provided shall become effective on the first date of the next month and remain in effect until the last day of that month. Supplemental pricing information may be provided to retailers for items that were unintentionally left off the regular information listing after approval by the Division of Alcohol and Tobacco Control. This act changes the procedure allowing wholesalers to take delivery orders for upcoming months and also changes the requirements for "delayed shipments" under the division's rules and regulations. This act allows wholesalers to offer retailers merchandise at prices which are below the wholesaler's cost only if such merchandise is specifically designated as "close-out merchandise" when providing the monthly pricing information. The act forbids wholesalers from buying more of such "close-out merchandise". Such "close-out merchandise" shall be designated as such for not less than six consecutive months. After such time, a wholesaler may remove items from its "close-out" designation by no longer identifying them as such on its monthly pricing information. During Third Read, House Amendment 4 was added to the bill. This amendment removed the provision prohibiting a person with a conceal carry permit from carrying a firearm onto any institution of higher education. HCS SB 171 was Third Read and Passed by a vote of 87 YES and 67 NO. After the Third Read message was read into the Senate, Senate sponsor Griesheimer made a motion to send the bill to conference. OMNIBUS ECONOMIC DEVELOPMENT BILL: This week the House third Read and Passed HCS SB 215 sponsored by Sen. Shields (R-Buchannan) and handled by Rep. Flook (R-Clay). This act establishes the procedure to establish a port improvement district. ESTABLISHMENT OF A PORT IMPROVEMENT DISTRICT - This act establishes the Port Improvement District Act. Under the terms of the act, a port authority may establish a port improvement district within its boundaries for the purpose of funding qualified project costs. The port authority board must hold public hearings on whether to create port improvement district. After the public hearing, the board may approve the petition to create
a district by resolution. The port authority board must file a petition in circuit court requesting the creation of a port improvement district. Within 30 days of the circuit court's certification of the petition and establishment of the district, the board must file a copy of the board's resolution approving the petition, the certified petition and the court's judgment certifying and establishing the district with the Missouri Highways and Transportation Commission. CONTENTS OF PETITION TO CREATE A DISTRICT - The act sets forth what information the petition must contain in order to be certified by the circuit court. For example, the petition must set forth a legal description of the district, the district's name, the maximum rate and duration of any proposed real property or sales tax, and the estimated revenues projected to be generated from such taxes. PUBLIC HEARING ON PROPOSED PETITION - The act establishes the notice requirements the port authority board must follow prior to submitting the petition to the circuit court. A public hearing must be held on the proposed projects, proposed real property or sales taxes, and the establishment of the district. The act requires notice to be provided by both publication and mailing. CIRCUIT COURT HEARING PROCEDURE - The act establishes the procedure in which the circuit court must conduct certification hearing. A copy of the petition must be served on all of the respondents (property owners, political subdivisions, etc.). The respondents will have 30 days after receipt of service to file an answer stating agreement with or opposition to the creation of the district. The court will the hear the case without a jury. The parties may appeal a circuit court's order in the same manner provided for other appeals. NOTICE TO PUBLIC FOR CIRCUIT COURT HEARING - The act also establishes how the circuit clerk must provide notice to the public of the circuit court hearing. The statutory notice shall be published in a newspaper of general circulation once a week for four consecutive weeks. TERMINATION OF DISTRICT - The act establishes a procedure in which a port improvement district may be terminated. The district may be terminated by a board resolution provided that there are no outstanding obligations secured by district revenues. Public hearings must be held before a district is terminated. REAL PROPERTY TAX AUTHORIZED - SUBMISSION TO QUALIFIED VOTERS Under the terms of the act, the port authority may levy a real property tax provided the qualified voters approve the tax by mail-in ballot. The act sets forth the sample ballot language. The act also establishes the procedure in which the real property taxes are collected and distributed. SALES AND USE TAX AUTHORIZED - SUBMISSION TO QUALIFIED VOTERS Under the terms of the act, the port authority may levy sales and use taxes within the district in increments of one-eight of one percent, up to a maximum of one percent provided the sales and use tax is approved by the qualified voters in a mail-in ballot election. The act
establishes a procedure for collecting and distributing the sales and use tax. Revenues generated from the sales and use tax must be deposited into a special trust fund. Port authorities may repeal by resolution any sales and use tax unless the repeal would impair the port authority’s ability to repay any obligations the port authority has incurred to pay qualified project costs of the district. ELECTION PROCEDURE FOR REAL PROPERTY AND SALES TAX - The act sets forth an election procedure that must be followed for any proposed real property tax or sales and use tax. After the board has passed a resolution approving the levying of a tax, the board must provide written notice of the resolution, along with the circuit court's certified question regarding the tax, to the election authority. After receiving the written notice of the resolution and the court's certified question, the election authority must specify a date upon which the election shall occur. In addition, the election authority must publish notice of the election in a newspaper of general circulation. The election authority must mail ballots to the qualified voters. Each qualified voter shall have one vote. The act requires the port authority to reimburse the election authority for the costs incurred to conduct an election. A port authority may propose a real property tax and a sales and use tax question to the district's qualified voters in the same election. STATUTE OF LIMITATIONS FOR CHALLENGING VALIDITY OF DISTRICT'S CREATION OR VALIDITY OF TAXES - Under the terms of the act, no lawsuit to set aside an established district or a tax shall be brought after the expiration of 90 days from the effective date of the resolution establishing such district in question or the effective date of the resolution levying such real property or sales tax. ANNUAL REPORTS BY PORT AUTHORITIES - The act requires port authorities that have formed port improvement districts to file reports with the Department of Transportation and the local political subdivision in which the district was formed stating the services provided, the revenues collected and expenditures made by the district during the fiscal year. The port authority must submit an annual report of the district's financial transactions to the state auditor. A petition to create a port improvement district must be signed by the property owners collectively owning more than 60% per capita of all owners of real property within the boundaries of the proposed district. The act provides that the state auditor shall have the power to audit port authorities. Under the act, any expenditure by a port authority that is over $25,000 must be competitively bid. These provisions are contained in the perfected version of SB 215 (2009). BUILD TAX CREDITS (Sections 100.710, 10.760, and 100.850)
The act removes the requirement that applicants for the BUILD program consider locating within another state and state that a disparity in costs exist between such state and Missouri. The requirement of creation of five hundred new jobs for economic development projects which are an office industry located within a distressed community is decreased to one hundred new jobs. The annual limit on BUILD tax credit authorizations is increased from fifteen million to twenty-five million dollars. BUSINESS FACILITY TAX CREDITS (Section 135.115) The act allows headquarters facilities to receive tax credits for new or expanded business facilities for expansions done before January 1, 2020. At least twenty-five new employees and at least one million dollars in new investment must be attributed to such expansion. Buildings on multiple, non-contiguous property will be considered one facility if the buildings are within the same municipality. NEW MARKETS TAX CREDITS (Section 135.680) Under current law, the department of economic development is required to limit the monetary amount of qualified equity investments to a level necessary to limit tax credit utilization to no more than fifteen million dollars annually. Following fiscal year 2010, no equity investments may be made unless reauthorization is provided by enactment of a general law by the general assembly. This act would require the department to limit the monetary amount of qualified equity investments to a level necessary to limit tax credit utilization to no more than twenty-five million dollars annually. The requirement for reauthorization by enactment of a general law by the general assembly is moved back two fiscal years to fiscal years following fiscal year 2012. FAMILY DEVELOPMENT ACCOUNT (Section 208.770) Under current law, the department of economic development is prohibited from authorizing more than four million dollars in tax credits per fiscal year for contributions to the Missouri family development account. Beginning FY 2010, the department will be limited to authorizing no more than three hundred thousand dollars each fiscal year for such contributions. LICENSING BY THE STATE BOARD OF PHARMACY (Section 338.337) Under current law, any out-of-state wholesale drug distributor, that is a drug manufacturer which produces and distributes from a facility which has been inspected and approved by the FDA within the last two years and is licensed by the state in which such facility is located, need not be licensed by the state board of pharmacy. This act would exempt any out-of-state wholesale drug distributor, that is a drug manufacturer which produces and distributes from a facility which has been inspected and approved by the FDA and is
licensed or authorized to operate and in good standing in the state in which such facility is located, from the requirement that it be licensed by the board of pharmacy. ANGEL INVESTMENT TAX CREDITS (Sections 348.273 and 348.274) The Department of Economic Development will be allowed to authorize up to five million dollars in tax credits tax credits per fiscal year to encourage equity investment in technology-based early stage Missouri companies, commonly referred to as angel investments. Investors who contribute the first five hundred thousand dollars in equity investment to a qualified Missouri business may be issued a tax credit equal to thirty percent of the investment or forty percent of the investment if the qualified business is located in a rural area or distressed community. An investor can receive a credit of up to fifty thousand dollars for an investment in a single qualified business and up to one hundred thousand dollars for investments in more than one qualified business per year. Tax credits for equity investment in technology-based early stage Missouri companies may be carried forward for up to three years or transferred. SMALL BUSINESS INCUBATORS TAX CREDITS (Section 620.495) The aggregate cap on small business incubator tax credit authorization is increased from five hundred thousand dollars to one million per tax year. QUALIFIED RESEARCH EXPENSE TAX CREDITS (Section 620.1039) The act modifies provisions of law which authorize a tax credit for qualified research expenses. The tax credit will be equal to ten percent of qualified research expenses incurred during the taxable year unless such expenses were incurred in a distressed community, in which case the credit will be equal to twenty-five percent of such expenses. Eligibility for receipt of the tax credit is limited to taxpayers with less than two hundred twenty-five employees, seventy-five percent of which must be employed within the state. Such taxpayers must be engaged, on a for-profit basis, in the development of medical instruments and devices, medical diagnostics and therapeutics, plant science products, or pharmaceutical or veterinary products with agricultural applications in order to receive the credit. Under current law, no qualified research expense tax credits may be approved, awarded or issued after January 1, 2005. This act removes the prohibition on approval and issuance of tax credits and provides that for each fiscal year beginning FY 2010, no more than three million dollars tax credits for qualified research expenses may be authorized. No less than two million dollars in tax credits must be made available for qualified research expenses incurred in a distressed area. No more than five hundred thousand dollars may be issued annually per taxpayer unless such taxpayer incurred the qualified research expenses in a distressed community in which case such taxpayer may not receive more than one million dollars in tax credits annually. No taxpayer may simultaneously receive tax credits under this tax credit program and the newly created tax credit in section 620.1041 of this act. No tax credits for qualified research expenses may be authorized after June 30, 2015. QUALIFIED RESEARCH EXPENSES TAX CREDITS (Section 620.1041)
The act creates a new tax credit for qualified research expenses. The amount of the tax credit will be based upon the increase in a taxpayer's qualified research expenses over an average of the three preceding year's expenses. A taxpayer can receive a tax credit equal to: three percent of the amount of increased expenses which do not exceed two million five hundred thousand dollars; five percent of the amount of increased expenses which exceed two million five hundred thousand but do not exceed five million dollars; and seven and one half percent of the amount of increased expenses which exceed five million dollars. No more than seven million dollars in tax credits for qualified research expenses may be authorized in each fiscal year beginning FY 2010. Qualified research expenses will be limited to those incurred in the research and development of agricultural biotechnology, plant genomics products, diagnostic and therapeutic medical devices, prescription pharmaceuticals consumed by humans or animals, and electronic patient health records. Expenses incurred in the research, development, or manufacturing of power system technology for aerospace, space, defense, alternative energy, alternative energy vehicles, or implantable or wearable medical devices are also permitted. The department director may allow a taxpayer to transfer up to forty percent of the tax credits issued, but not yet claimed, between January 1, 2010, and December 31, 2016. The Director of the Department of Economic Development must act between August 1 and August 15th on tax credit applications filed between January 1 and July 1st for claims from the previous year. A formula is provided by which tax credits will be issued if the eligible claims for the credits exceed the amount of tax credits available. No one taxpayer can be issued more than thirty percent of the total amount of tax credits authorized in any calendar year. Taxpayers are prohibited from simultaneously receiving benefits under this program and the other qualified research tax credit program contained in the act. No tax credits for qualified research expenses may be authorized after June 30, 2015. QUALITY JOBS (Sections 620.1878 and 620.1881) The act specifies how the department must apply certain definitions when a business that has already received an approved notice of intent later files another notice of intent and eliminates the per-company annual cap on technology business projects. The act modifies the quality jobs act definition of the term "project facility" to include separate buildings located within fifteen miles of each other or within the same county and requires that for high impact projects, where such facilities are located within two adjacent counties, the new payroll must equal or exceed the higher county wage of the two counties. Companies which file for, or publically announce intentions to seek, bankruptcy protection in the form of a reorganization between January 1, 2009 and January 1, 2011, may be eligible as qualified companies under the quality jobs act provided certain conditions are met. The definition of the term "technology business project" is modified to include clinical molecular diagnostic laboratories focused on detecting and monitoring infections in immunocompromised patient populations. The per project caps for technology business projects and high impact projects are removed. Under current law, no more than sixty million dollars in quality jobs tax credits may be issued annually. This act limits annual issuance of quality jobs tax credits to no more than one hundred million dollars.
This bill was Third Read and Passed by a vote of 145 YES and 6 NO. When the Third Read message was read into the Senate, Senate sponsor Sen. Shields made a motion to send the bill to conference and to allow the conferees to exceed the differences. This motion was filibustered by Sen. Crowell (R-Cape Girardeau). Sen. Shields withdrew his motion. THE RIGHT TO VOTE BY SECRET BALLOT: On Monday, April 27th the House perfected HJR 37, sponsored by Rep. Mike Cunningham (R-Rogersville). Upon voter approval, this proposed constitutional amendment guarantees the right to vote by secret ballot where state or federal law requires public elections for public office or public votes on initiatives or referendums or where state or federal law requires designations or authorizations of employee representation. The bill was perfected by a vote of 83-74. OMNIBUS EDUCATION BILL: This is a brief summary of HCS SS SB 291, to see the full bill text please see the link. http://www.senate.mo.gov/09info/pdf-bill/hcs/SB291.pdf SECTION CONTENT 30.1010-1014 Use of stimulus funds in school building renovation – HB 1069 37.710 Child Advocate – SB 41 115.121 Additional bond election date 137.073-106 Tax Ceiling 142.814 Fuel tax exemption – HCS HB 87 160.011 Four-day week – HCS HB 242, HB 1102 160.085 Amy Hestir Davis Act – SB 41 160.261-263 160.254 Jt. Committee to study open enrollment 160.263 Seclusion room policy required 160.375 Senior Cadets Program – SB 78 160.400 & 160.410 Charter Schools – SB 64 160.405 Remedial action, insurance requirement – HB 266 160.534 Prop A Fund – SCS SB 453 & 24 160.539 School Flex 160.545 A+ Expansion 160.730 Repeals annual multiple department of education meetings - SB 344 160-775-820 Bullying – HB 518 160.950 Persistence to graduation fund – SB 116 & HB 636 160.1100-1148 Collective bargaining – HB 805 160.072 SBE Meetings 161.22 Commissioner to make available evaluations of educational progress – HB 1041 161.390 Teaching standards 161.800 Volunteer and Parents Incentive Program – SB 76 161.850 IEP Parents bill of rights – SCS SB 175, HB 526 162.014 – 069 Disqualification for school board 162.083 Powers of SBE – SB 443 & HB 659 162.204 Electronic Records
162.215 162.431 162.492 162.1168 162.1250 162.011 163.031 163.043 163.044 163.095 163.172 165.011 166.300-397 167.018 167.031 167.126 167.151 167.275 167.720 168.021 168.071 168.110 168.133 168.221 168.251-750 169.020 170.400 171.029-031 171.033 172.360 173.250 173.268 173.754 173.1110 174.130 175.025 177.301-306 178.635-780 178.785 208.009 210.135 210.145 210.152 210.205 210.915-922
Blue Springs School-commissioned police – HCS HB 96 Travel Time 45 minutes – HCS HB 304 KC School board Elections Preschool plus – SB 314 Virtual Schools Operating expenditures, gifted pupil weight, special ed count Summer School penalty removal – HB 1115 Prop A money Small schools expansion – HCS HB 356 Riverview Gardens – SCS SB 117 Minimum salary ARRA transfers – HCS HB 937 School revolving fund Foster Care Education Bill of Rights – SCS B 96 16 Credits to leave school – HB 1102 School services to children in hospitals Blue Springs/Lee’s Summit teacher’s children’s tuition – HB 993 State literacy hotline – SB 576 & HB 833 Physical education Personal finance certification – SB 233 Reason for loss of teacher license – SB 41 Salary schedule modifications – HB 717 Background checks – HCS HB 689 Giving up tenure in St. Louis for Teacher Choice – SB 42 Future noncertificated hires in SLPS no tenure PSRS – SCS HB 373 Use of supplemental education equipment Four Day week Inclement weather UM – Aliens HB 390 Bright Flight – SS SCS SB 558 Missouri Promise – SS SCS SB 558 Diploma mills – SB 182 Aliens at postsecondary schools Aliens at regional’s Aliens at Lincoln Design Build – HB 596 Aliens at community college Certification before higher education approps Postsecondary not public benefit/aliens in higher ed Child abuse reports to school administrators Notice about child abuse Reopen case QRS – HCS HB 387 Cooperation on DFS database
210.1050 301.4006 313.775-822
Foster Care Educational foundation license plates Gaming money/Prop A
CALENDAR BILLS OF INTEREST: Formal Senate Calendar Senate Bills for Third Reading SB 558 (S) Author: Mayer Modifies provisions relating to higher education scholarships. Formal Senate Calendar House Bills on Third Reading HB 65 Author: Wilson-119 Allows rural empowerment zones to exist in any county with 18,000 or fewer residents and prohibits more than two rural empowerment zones in any county.
HB 745 (S) Author: Loehner Handler: Clemens Specifies that the Commissioner of the Office of Administration or any state agent when purchasing goods must give preference to products processed in this state and to all new generation processing entities. HB 580 (S) Author: Bruns Establishes the Line of Duty Compensation Act which authorizes a claim to be filed with the Division of Workers' Compensation on behalf of public safety workers who are killed in the line of duty. Author: Lipke Changes the laws regarding crime prevention. HJR 32 (A) Author: Kelly Handler: Schaefer Proposes a constitutional amendment authorizing the General Assembly to issue bonds to fund higher education building improvements, construction, landscaping, and land purchases. HB 299 Author: Wilson-119 Removes the limit on the amount of appropriations and the expiration date for appropriations to the Missouri Arts Council. Informal Senate Calendar Senate Bills for Third Reading SB 7 Author: Griesheimer Modifies various provisions relating to political subdivisions. SB 572 Author: Dempsey HB 62 (S)
Establishes the Science and Innovation Reinvestment Act.
Informal Senate Calendar House Bills on Third Reading HB 191 (S) Author: Flook Handler: Griesheimer Eliminates the cap for tax credits issued under the Missouri Quality Jobs Program. Informal Senate Calendar House Bills for Third Reading HB 376 (S) Author: Hobbs Handler: Griesheimer Changes the laws regarding certain county purchases. HB 488 (S) Author: Schad Handler: Pearce Changes the laws regarding the restructuring of an unaccredited school district. Senate Bills with House Amendments SB 154 Author: Goodman Handler: Wallace Authorizes nonprofit sewer companies to provide domestic water services in certain areas. SB 215 Author: Shields Handler: Flook Allows port authority boards to establish port improvement districts to fund projects with voter-approved sales taxes or property taxes. Bills in Conference HB 148 Author: Franz Handler: Griesheimer Allows certain first and second classification counties to collect property taxes using electronic records and disbursements. HB 265 Author: Franz Handler: Crowell Changes the laws regarding the Public School Retirement System of Missouri and the Public Employee Retirement System of Missouri. HB 397 Author: Flook Handler: Ridgeway Changes the laws regarding the Police Retirement System of Kansas City. Formal House Calendar House Bills for Perfection HB 313 (S) Author: Yates Revises the definition of "technology business project" as it relates to the Missouri Quality Jobs Act.
HB 190 (S) Author: Flook Allows the Department of Economic Development to include pre-employment training in its new or expanding industry training. HB 356 (S) Author: Wallace Increases the overall appropriation amount for small school grants from $15 million to $20 million with $15 million being distributed to eligible districts in proportion to their average daily attendance. HB 937 (S) Author: Dieckhaus Waives the limitations on the transfer of moneys from a school district's incidental fund to its capital projects fund for the 2009-2010 and 2010-2011 school years under certain circumstances. HB 1055 (S) Author: Pratt Establishes the Uniform Prudent Management of Institutional Funds Act which specifies guidelines for the management, investment, and expenditures of endowment funds held by charitable institutions. HB 591 (S) Author: Sutherland Authorizes voters to petition for an election to lower the tax rate ceiling of a political subdivision. HB 767 (S) Author: Grill Increases the annual cap on the tax credits certified for qualified film production projects from $4.5 million to $10 million. Formal House Calendar House Joint Resolutions for Third Reading HJR 37 (3) Author: Cunningham Proposes a constitutional amendment guaranteeing the right to vote by secret ballot for all public offices, initiatives and referendums, and any authorizations or designations regarding employee representation. Formal House Calendar House Bills for Third Reading-Consent HB 304 (3) Author: Schad Specifies the meaning of "significant difference in the time involved in transporting students" for purposes of elections to change school district
boundaries. Formal House Calendar Senate Joint Resolutions for Third Reading SJR 5 Author: Schmitt Handler: Stream Requires all assessors, except in Jackson County, to be elected. Formal House Calendar Senate Bills for Third Reading-Consent SB 196 (S) Author: Shoemyer Handler: Scavuzzo Modifies the procedure for detaching territory from a public water supply district.
Formal House Calendar Senate Bill for Third Reading SB 377 (S) Author: Rupp Handler: Flook Modifies various provisions relating to business incentives.
SB 55 (S) SB 291 (S)
Author: Days Handler: McNeil Modifies provisions relating to education. Author: Shields Handler: Wallace Modifies provisions relating to education.
House Bills with Senate Amendments HB 667 Author: Jones-117 Handler: Goodman Requires all sheriffs in the state except St. Louis County to have a valid peace officer license before executing the police powers of that office. HB 236 Author: Lipke Handler: Crowell Establishes Kaitlyn's Law which requires school districts to allow certain students with disabilities to participate in graduation ceremonies after four years of high school attendance. HB 922 Author: Smith-14 Handler: Rupp Requires each school district to adopt a policy on allergy prevention and response with priority given to addressing potentially deadly food-borne allergies. HB 247 Author: Loehner Handler: Clemens Revises the definition of "eligible student" as it relates to the Nursing Student Loan Program to allow individuals seeking certain degrees on a full- or part-
time basis to participate in the program. Bills Carrying Requests HB 148 Author: Franz Handler: Griesheimer Allows certain first and second classification counties to collect property taxes using electronic records and disbursements. HB 397 Author: Flook Handler: Ridgeway Changes the laws regarding the Police Retirement System of Kansas City. HB 265 Author: Franz Handler: Crowell Changes the laws regarding the Public School Retirement System of Missouri and the Public Employee Retirement System of Missouri. HEARINGS OF INTEREST:
Senate-Appropriations MONDAY - 05/04/09 10:00 AM, Senate Lounge Public hearing: HB 17 Icet
MONDAY - 05/04/09 New - 10:01am
Appropriates money for capital improvement and other purposes as provided in Article IV, Section 28. HB 21 Icet Appropriates money for supplemental purposes for the Department of Conservation. Executive session may or may not follow. Committee Members: Gary Nodler, Chair / Rob Mayer, Vice-Chair / Frank Barnitz / Joan Bray / Tom Dempsey / Tim Green / David Pearce / Chuck Purgason / Scott Rupp / Kurt Schaefer / Yvonne Wilson
Senate-Financial/Gov. Org. and Elections (POSTING CHANGE) MONDAY - 05/04/09 12:30 PM, SCR 2 HB 883 Flook Changes the laws regarding the State Treasurer's asset allocation plan which limits the total amount of state moneys which may be invested in any particular investment. Committee Members: Delbert Scott, Chair / Jane Cunningham, Vice Chair / Matt Bartle / Jason Crowell / Jolie Justus / Jim Lembke / David Pearce / Luann Ridgeway / Jeff Smith / Robin Wright-Jones Conference Committee - Appropriations MONDAY - 05/04/09 1:00 PM, Third Floor Legislative Library
Public hearing: HB 2 Icet Nodler HB 3 HB 4 Icet Nodler Icet Nodler Icet Nodler Icet Nodler Icet Nodler
HB 8 HB 9 HB 10
Icet Nodler Icet Nodler Icet Nodler Icet Nodler Icet Nodler
HB 11 HB 12
Icet Nodler Executive session may follow.
Appropriates money for the expenses, grants, refunds, and distributions of the State Board of Education and Department of Elementary and Secondary Education. Appropriates money for the expenses, grants, refunds, and distributions of the Department of Higher Education. Appropriates money for the expenses, grants, refunds, and distributions of the Department of Revenue and Department of Transportation. Appropriates money for the expenses, grants, refunds, and distributions of the Office of Administration, Department of Transportation, and Department of Public Safety. Appropriates money for the expenses, grants, refunds, and distributions of the Department of Agriculture, Department of Natural Resources, and Department of Conservation. Appropriates money for the expenses and distributions of the departments of Economic Development, Insurance, Financial Institutions, Professional Registration, Labor and Industrial Relations. Appropriates money for the expenses, grants, refunds, and distributions of the Department of Public Safety. Appropriates money for the expenses, grants, refunds, and distributions of the Department of Corrections. Appropriates money for the expenses, grants, refunds, and distributions of the Department of Mental Health, Board of Public Buildings, and Department of Health and Senior Services. Appropriates money for the expenses, grants, and distributions of the Department of Social Services. Appropriates money for the expenses, grants, refunds, and distributions of statewide elected officials, the Judiciary, Office of the State Public Defender, and General Assembly. Appropriates money for real property leases and related services.
Committee Members: Gary Nodler / Rob Mayer / Scott Rupp / Joan Bray / Tim Green / Allen Icet / Rick Stream / David Sater / Chris Kelly / Shalonn Curls Senate-Gov. Accountability & Fiscal Oversight MONDAY - 05/04/09 1:55 PM, Pershing Gallery Fiscal Oversight: HB 376 Hobbs Changes the laws regarding certain county purchases.
Griesheimer Executive session may or may not follow Committee Members: Chuck Purgason, Chair / Jim Lembke, Vice Chair / Rita Days / Brad Lager / Kurt Schaefer / Bill Stouffer / Wes Shoemyer TUESDAY - 05/05/09 Senate-General Laws TUESDAY - 05/05/09 1:00 PM, SCR 1 Public hearing: HB 316 Jones-89
Changes the laws regarding the Open Meetings and Records Law, commonly known as the Sunshine Law. HJR 11 McGhee Proposes a constitutional amendment guaranteeing a citizen's First Amendment right to pray on public property and reaffirming a citizen's right to choose any or no religion. Executive session may or may not follow. Committee Members: Jack Goodman, Chair / Scott Rupp, Vice Chair / Dan Clemens / Ryan McKenna / Delbert Scott / Carl Vogel / Yvonne Wilson
If you would like the full text of a bill or a bill summary, they will be posted at http://www.moga.state.mo.us/ as they become available. This report was sponsored by a legislative partnership comprised of the St. Joseph Area Chamber of Commerce, City of St. Joseph, Buchanan County, St Joseph School District, MWSU, and Heartland Health.