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					               MORTGAGE BANKERS ASSOCIATION OF MISSOURI
        101 East High, Jefferson City, Missouri 65101 Phone: (573) 634-3244 - Fax: (573) 634-7429
               MISSOURI LEGISLATIVE UPDATE – February 25, 2011


TO: MORTGAGE BANKERS ASSOCIATION OF MISSOURI

                       HEARINGS FOR THE WEEK OF FEBRUARY 28th

MONDAY - 02/28/11
House-Workforce Development and Workplace Safety
12:00 PM, HR 6

 Public hearing:
HB 466 Schoeller - Allows an employer or labor organization to obtain political contributions through
a payroll deduction if the employee or member consents to the contribution in writing.

Executive session may be held on any matter referred to the committee.

House-Crime Prevention
1:00 PM, HR 1

 Public hearing:
HB 449 Sater - Establishes the Missouri Radon Awareness Act which requires the seller of residential
real property to provide the buyer with a disclosure of information on radon hazards.

Executive session may be held on any matter referred to the committee.

House-Rules
1:30 PM, HR 7

  Executive session will be held on the following bills:
HJR 6 Cierpiot - Proposes a constitutional amendment guaranteeing the right of individuals to vote by
secret ballot.
HB 108 Smith-150 - Allows a political action committee to receive a contribution from any
corporation, association, or partnership instead of from only those formed under Chapters 347 - 360,
RSMo.
HB 83 Nolte - Specifies that an agreement to operate or share an automated teller machine cannot
prohibit the owner or operator of the machine from imposing an access fee or surcharge on foreign bank
transactions.

Executive session may be held on any matter referred to the committee.

Senate-Financial and Governmental Organizations and Elections
3:00 PM, Senate Lounge

SB 306 Wasson - Modifies laws relating to the administration of credit unions.

Executive session may follow.

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TUESDAY - 03/01/11
Senate-Commerce, Energy and the Environment
1:30 PM, Senate Lounge

SB 221 Cunningham - Establishes damage caps for Human Rights Act cases and worker's
compensation discrimination cases.

Executive session may follow.

Senate-General Laws
1:30 PM, SCR 1

SB 220 Wasson - Modifies liens for certain design professionals.

Executive session may follow.


WEEK EIGHT OVERVIEW – GOVERNOR‟S TRAVEL COSTS IN QUESTION


This week the news headlines revolved around the costs and transparency of travel by Governor Jay
Nixon (D). Through an open records request, the media became aware that the state of Missouri has
spent over $400,000 in travel this year on Governor Jay Nixon. In addition, the Governor has been
reimbursing travel costs by charging other state agencies, rather than using the funds allotted to his
office in the budget. House Budget Committee members have been critical of the lack of transparency
in the Governor’s travel reimbursement and on Wednesday, added language to a bill on the floor. On a
vote of 155-0, the House passed an amendment to require the Governor post the total travel costs per
trip, complete travel itinerary, and all passengers on the state public records portal.

In other news, the Senate passed legislation this week relating to fire sprinklers, litigation against the
department of transportation; photo identification for voters; public school teacher pay and tenure; and
sewer and water line fees. The House passed legislation to reform employment law; private nuisance
laws; supplemental budget appropriations; and elections to fill vacated offices of statewide elected
officials.

MODERNIZATION OF CREDIT UNION STATUTES -UPDATE
On Wednesday, February 16, 2011 the House Financial Institutions Committee held a public hearing on
House Bill 465 sponsored by Representative Don Wells (R-Cabool). HB 465 changes the laws
regarding the Division of Credit Unions within the Department of Insurance, Financial Institutions and
Professional Registration. Testifying in support was the Missouri Credit Union Association. No
testimony was received in opposition. The committee then held an executive session and adopted a
House Committee Substitute. The committee then voted 16-0 to “do pass” the HCS for HB 465.

On Wednesday, February 23, 2011 the committee held an executive session and voted 12-0 to send
the bill “do pass” from committee.

CERTIFICATE OF INSURANCE
On Monday, February 21, 2011 the House Insurance Policy Committee held a public hearing on House
Bill 407 sponsored by Representative Paul Wieland (R-Imperial). HB 407 prohibits a person from
preparing, issuing, or requesting the issuance of a certificate of insurance form unless it has been filed

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with the Director of the Department of Insurance, Financial Institutions and Professional Registration
and from altering or modifying a filed certificate of insurance form.

Testifying in support were the Missouri Association of Insurance Agents and American Family
Insurance. Testifying in opposition were Prudential Asset Resources; MetLife Insurance; Bank of
America, Missouri Council of Life Insurers and Life Insurance Association of Missouri. The opponents
argue that this legislation would end commercial real estate lending in Missouri due to requirements
placed on lenders by Fannie Mae and Freddie Mac that require a “pure” unmodified evidence of
insurance form. This law would allow for only a certificate of insurance that would state “for
information only” on the document. The opponents have concern that HB 407 would codify in statute
evidence of non-insurance. The committee chairman stated that he intends to bring both sides together
before moving the legislation forward. The committee took no further action.

CERTIFICATE OF VALUE WITH DEED PROHIBITED
On February 23, 2011 the House Committee on General Laws held a hearing on House Bill 490
sponsored by Representative John Diehl (R-Town & Country). The bill prohibits a political subdivision
from requiring any party to file a certificate of value with a deed or other instrument at the time of the
sale or conveyance of real property. The Missouri Retailers Association and the Missouri land Title
Association testified in favor of the bill and a spokesman for St. Louis County testified in opposition.
The committee took no action on the bill.

SECURITY DEPOSITS FOR RENTERS
The House Judiciary Committee on February 23, 2011 held a hearing on House Bill 404 sponsored by
Representative Ray Weter (R-Nixa). This bill requires a landlord, within 30 days after the date of the
termination of a tenancy, to furnish the tenant or renter with the estimated or actual cost for repairing or
replacing each item on the required list of damages for which any portion of the security deposit is
withheld. The landlord must attach copies of the paid receipts for the repair or replacement; and if the
estimated cost is given, the landlord must furnish the tenant or renter with copies of paid receipts or a
certification of the actual costs of repairs within 60 days from the date of the statement. A landlord of
20 or more dwelling units must hold all security deposits in a federally insured account, separate from
his or her own funds, and this account cannot be subject to the claims of any creditor of the landlord. At
the time of receiving a security deposit, a landlord must provide the tenant or renter with a signed receipt
indicating the date; amount of the deposit; the name of the person receiving the deposit or, in the case of
an agent, the name of the landlord for whom the security deposit is received; a description of the leased
dwelling unit; and the name and address of the financial institution that will hold the deposit.

An attorney representing students and a spokesman for the Associated Students of the University of
Missouri testified in support of the bill, and the Missouri Association of Realtors testified in opposition.
The committee took no further action on the bill.

„BRICK AND MORTAR‟ REQUIREMENTS FOR TITLE AGENCIES
On Monday, February 21, 2011 the House Insurance Policy Committee held a public hearing on House
Bill 414 sponsored by Representative Mark Richardson (R-Poplar Bluff). Currently, it is unlawful for a
title agency or title agent to transact title insurance business within Missouri unless he or she is licensed.
This bill requires a title agency or a title agent to have and maintain a physical place of business within
Missouri substantially devoted to the conduct of the title insurance business or, in the case of a title
agent, be employed by a title insurer or title agency licensed in Missouri. Testifying in support was the
Missouri Land Title Association. The Mortgage Bankers Association of Missouri testified for
informational purposes and suggested they need ample time to research the impact of this legislation to
ensure this bill would not pose any problems for lenders who conduct business in adjoining states. The
committee took no further action.
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CHANGES DISPOSITION OF UNCLAIMED PROPERTY DEFINITIONS
The House General Laws Committee on February 22, 2011 held a hearing on House Bill 401 sponsored
by Representative John Diehl (R-Town and Country). This bill exempts intangible property due or owed
by a business association to or for the benefit of another business association resulting from the normal
and ordinary course of business from the provisions relating to unclaimed property and the Uniform
Disposition of Unclaimed Property Act. The State Treasurer must not enforce the provisions of Chapter
447, RSMo, relating to lost and unclaimed property more than three years after the holder of the
property filed a report or gave express notice of a dispute. If a report is filed fraudulently with the intent
to evade escheatment of property, the State Treasurer can enforce these provisions within six years after
the report was filed. If no report is filed, the State Treasurer may enforce these provisions at any time.

The Missouri Chamber of Commerce and the Missouri Retailers Association testified in favor of the bill.
A representative of the State Treasurer’s Office testified for information. Representative Diehl indicated
that he expects to prepare a substitute to resolve some outstanding issues with the bill before it is taken
up in executive session.

EXEMPTS NON-PROFITS FROM ATHLETES & ENTERTAINERS TAX
The House Tax Reform Committee held a hearing on February 23, 2011 on House Bill 470 sponsored
by Representative Doug Funderburk (R-St. Peters). This bill exempts a not-for-profit entity that receives
no benefit from a nonresident entertainer's appearance other than the entertainer's performance from the
nonresident entertainer and professional athletic team income tax. The Missouri Baptist Convention
testified in support of the bill, and there was no opposition. The committee took no action on the bill.

SUNSET OF NONRESIDENT ATHLETES & ENTERTAINERS TAX ELIMINATED
The House Tax Reform Committee on February 23, 2011 held a hearing on House Bill 429 sponsored
by Representative Mike McGhee (R-Odessa). This bill removes the December 31, 2015 expiration date
of the nonresident entertainer and professional athletic team income tax. The bill received support from
the Missouri Council on the Arts, University of Central Missouri, Missouri Library Association,
Missouri Humanities Council, Greater Kansas City Chamber of Commerce, and Missouri State
University. There was no opposition and the sponsor requested that the bill be considered for consent
status when it is taken up in executive session.

REPEALS EXEMPTION NOTICES RELATING APPRAISAL LICENSING - UPDATE
On Monday, January 31, 2011 the Senate Financial and Governmental Organizations and Elections
Committee held a public hearing on Senate Bill 71 sponsored by Senator Mike Parson (R-Bolivar).
Currently, certain banks, savings institutions, and credit unions are required to file a notice with the
Missouri Real Estate Appraisers Commission that includes some of the same information and
certifications that real estate appraisal management companies must file. SB 71 eliminates the
requirement that these banks, savings institutions, and credit unions file this notice. Testifying in
support was the Missouri Bankers Association and the Mortgage Bankers Association of Missouri. No
testimony was received in opposition and the committee took no further action.

On Monday, February 7th, the committee met in executive session and voted SB 71 “do pass consent” by
a vote of 8-0.

On Thursday, February 24, 2011 the Missouri Senate voted 30-1 to “third read and pass” Senate
Bill 71. The bill has been sent to the Missouri House of Representatives.

WATER LINE REPAIRS FEE - UPDATE
On Wednesday, February 9th the Senate Jobs, Economic Development and Local Government
Committee heard SB 174 sponsored by Senator Tom Dempsey (R-St. Charles). SB 174 authorizes
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cities, towns, and villages located within St. Charles County to seek voter approval for the imposition of
a fee on residential property to fund the repair or replacement of water lines on that property. The fee
would be imposed for the repair or replacement of water service lines providing water service to
residential properties having four or fewer dwelling units located within the city, town, or village. The
fee cannot exceed one dollar per month.
Any city, town, or village which imposes the water service line fee may, by ordinance, provide for the
administration of the program and define the terms "repair" and "water service line".
Testifying in support was the City of St. Peters, Missouri. No testimony in opposition was given and no
further action was taken.

On Thursday, February 24, 2011 the Missouri Senate voted 31-1 to “third read and pass” SB 174.
The bill has been sent to the House of Representatives.

BRICKS AND MORTAR REQUIREMENT FOR TITLE AGENCIES - UPDATE
On Tuesday, February 15, 2011 the Senate Small Business, Insurance and Industrial Relations
Committee held a public hearing on Senate Bill 166 sponsored by Senator Jack Goodman (R-Mount
Vernon). SB 166 imposes additional requirements for obtaining and maintaining a title insurance
license. Under current law, it is unlawful for title agencies or title agents to transact title insurance
business unless they are licensed under Missouri law. As a condition of licensing, this act requires title
agencies and title agents to maintain a physical place of business within Missouri substantially devoted
to the conduct of the title insurance business or, in the case of title agents, be employed by title insurers
licensed in Missouri. Testifying in support was the Missouri Land Title Association. No testimony was
received in opposition and the committee took no further action.

On Tuesday, February 22, 2011 the committee held an executive session and voted 4-2 to “do
pass” SB 166. Those voting “no” were Senator Jason Crowell (R-Cape Girardeau) and Senator
Tim Green (D-Spanish Lake).

TELLER MACHINES ACCESS FEE - UPDATE
On Monday, February 14th the Senate Financial and Governmental Organization and Elections
Committee heard SB 219 sponsored by Senator Jay Wasson (R-Nixa). SB 219 allows owners of
automated teller machines to charge access fees to those with bank accounts in foreign countries.
Testimony in support was given by Missouri Bankers Association and Missouri Credit Union
Association. No testimony in opposition was given and no further action was taken.

On Monday, February 21st the committee met in executive session and voted SB 219 “do pass
consent”.

                            EMPLOYER/EMPLOYEE RELATED ISSUES

“FAIR TAX” PROPOSAL HEARD IN HOUSE COMMITTEE - UPDATE
House Joint Resolution 8, the proposed constitutional amendment dealing with replacing certain income
taxes with increased sales taxes sponsored by Representative Andrew Koenig (R-Winchester), was the
subject of a hearing on February 9, 2011 before the House Tax Reform Committee.

Upon voter approval, this proposed constitutional amendment phases out the state individual income tax
and replaces the corporate income tax, corporation franchise and bank franchise taxes, and state sales
and use tax with a sales tax of up to 7% on retail sales of new tangible personal property and taxable
services. Beginning January 1, 2015, the state sales tax rate will be 4% and will gradually increase
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annually over the next four years to make the tax revenue-neutral and to provide continued funding for
programs. The individual income tax will decrease 25% per year until eliminated based on the average
collections over a five-year period. The sales tax on used motor vehicles will be phased out over a
period of time but must be by ingredient of a new tangible personal property to be sold at retail, federal
government purchases, business-to-business transactions including agriculture, purchases for
investment, tuition and fees for education, purchases of motor fuel when subject to an excise tax, certain
insurance premiums or fees, and purchases of used tangible personal property will be exempt from the
new sales tax while all other exemptions will be eliminated. No tax credits will be authorized after
January 1, 2015, and no authorized tax credits, other than the senior citizens property tax credit, will be
allowed after the elimination of the individual income tax. The conservation sales tax, the soil and parks
sales tax, Proposition C sales tax, and local sales taxes will be recalculated to produce substantially the
same amount of revenue. Each qualified household member will receive a sales tax rebate. The amount
of the annual rebate will be $2,800 per taxpayer with a maximum rebate of $11,200 per household until
2019 when the rebate amount will be increased based on the increase in the federal Consumer Price
Index in the previous year.

Testifying in favor of the issue were Randy Gastineau, Frederick Berry, Ed Emery, Carl Bearden for
United For Missouri, and Robert Hillman for MO Republican Liberty Caucus. Opposition testimony
was offered by James Moody for Missourians for Tax Fairness, Sam Licklider of Missouri Association
of Realtors, Amy Blouin of Missouri Budget Project, David Overfelt of the Missouri Realtors
Association, Patrick Bonnot of the Missouri Municipal League, Shannon Cooper for the Greater Kansas
City Chamber of Commerce, Jeremy LaFaver of Partnership for Children, Mike Hoey of the Missouri
Catholic Conference, Otto Fajen of Missouri NEA, and Chuck Pierce of the Missouri Society of
Certified Public Accountants. Numerous others submitted written testimony both for and against the
measure. The committee took no further action on the issue.

On February 23, 2011 the committee took up the measure in executive session, adopted a
substitute, and voted the substitute do-pass on a vote of 8-4.


MISSOURI HUMAN RIGHTS LAW - UPDATE
On Monday, January 31, 2011 the House Workforce Development and Workplace Safety Committee
held a public hearing on House Bill 205 sponsored by Representative Kevin Elmer (R-Nixa). HB 205
changes the laws regarding unlawful discriminatory practices as they relate to the Missouri Human
Rights Law. The bill changes the condition of an action against an employer from “contributing factor”
to “motivating factor”. The bill also creates damage limits based on a graduated scale on the size of the
employer. The bill removes individual liability if the employee is acting within the scope of
employment. Testifying in support were the Missouri Chamber of Commerce and Industry; Associated
Industries of Missouri; St. Louis Regional Chamber and Growth Association; Missouri United School
Insurance Council; Missouri School Administrators Coalition; Missouri Retailers Association; Missouri
Grocers Association; Missouri Restaurant Association; Kansas City Chamber of Commerce;
Metropolitan Community College; Associated Builders and Contractors; Missouri Organization of
Defense Lawyers and Missouri Municipal League.

Testifying in opposition were Missouri Commission on Human Rights, National Association for
Advancement of Colored People; American Cancer Society; Missouri Commission for the Deaf and
Hard of Hearing; Paraquad, St. Louis Center for Independent Living; Missouri Association for Social
Welfare; Missouri AFL-CIO; United Steelworkers Union; and Missouri Association of Trial Attorneys.
The committee took no further action.


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On February 14, 2011 the committee took up the bill in executive session and adopted a substitute that
includes a separate section dealing with whistleblowers, then voted the substitute bill do-pass by a vote
of 6-4.

On February 24, 2011 the Missouri House of Representatives voted 95-59 to “third read and pass”
HB 205. The bill will now be sent to the Missouri Senate.


UNEMPLOYMENT COMPENSATION BENEFITS PASS HOUSE-UPDATE
On Tuesday, February 1, 2011 the Missouri House voted 131-8 to “third read and pass” House Bill 163
sponsored by Representative Barney Fisher (R-Richards). HB 163 alters the provisions relating to
unemployment compensation statutes as follows:

(1) In order for Missouri to receive recently approved additional federal extended unemployment benefit
funds, this substitute changes the laws regarding unemployment compensation. Currently, "extended
benefit period" as it relates to unemployment compensation benefits means a period which begins with
the third week after a week for which there is a state "on" indicator, as determined by the Director of the
Division of Employment Security within the Department of Labor and Industrial Relations, and ends on
the third week after the first week for which there is a state "off" indicator or other specified conditions.
The substitute removes the provision which limits the period for a state "on" indicator from extending
beyond March 3, 2011, when 100% federal sharing is available under Public Law 111-5, Section
2005(a) and specifies that there is a state "on" indicator beginning after the date of enactment of the Tax
Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010, Public Law 111- 312,
and ending on or before the last day allowable by the act when the average rate of total unemployment
in the state (seasonally adjusted), as determined by the United States Secretary of Labor, for the most
recent three-month period for which data for all states are published equals or exceeds 110% of the
average for any or all of the corresponding three-month periods ending in the three preceding calendar
years.

(2) Currently, an outstanding obligation under a financial agreement between the Board of
Unemployment Fund Financing and a lender cannot continue for more than 10 years. This bill removes
the 10-year limitation.

On February 23, 2011 the Senate Small Business, Insurance and Industry Committee held a
hearing on the bill. The Greater Kansas City Chamber of Commerce, Missouri Restaurant
Association, Associated Builders and Contractors, Associated Industries of Missouri, NFIB, and
the Missouri Retailers Association testified in support. There was no testimony in opposition and
the committee took no further action on the bill.

RIGHT TO VOTE BY SECRET BALLOT-UPDATE
The House Workforce Development and Workplace Safety Committee on February 14, 2011 held a
hearing on House Joint Resolution 6 sponsored by Representative Mike Cierpiot (R-Lee’s Summit).
Upon voter approval, this proposed constitutional amendment guarantees the right of an individual to
vote by secret ballot where local, state, or federal law requires public elections for public office or public
votes on initiatives or referendums or where local, state, or federal law requires designations or
authorizations for employee representation. Its primary focus is to preempt union organization through
card-check in Missouri. Testifying in support of the legislation were Associated Builders and
Contractors, Missouri Chamber of Commerce and Industry, Associated Industries of Missouri, and
NFIB. The Missouri AFL-CIO, Carpenters Union, and United Steelworkers Union opposed the measure.
The committee took no further action.

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On February 21, 2011 the committee took up the issue in executive session and voted it do-pass on
a vote of 6-5.

CO-EMPLOYEE LIABILITY UNDER WORKERS COMPENSATION
The House Workforce Development and Workplace Safety Committee on February 21, 2011 held a
hearing on House Bill 434 sponsored by Representative Jerry Nolte (R-Gladstone). This bill requires co-
employees to be released from liability for negligence in performing the nondelegable duty of an
employer to provide a safe workplace when the negligence contributes to another employee's personal
injury or death unless the employee engaged in an affirmative negligent act that purposefully and
dangerously caused or increased the risk of injury. HB 434 was presented as a modified version of HB
91 on the same subject in an attempt to reach a compromise.

Associated Industries of Missouri, Missouri Chamber of Commerce and Industry, Associated Builders
and Contractors and the Missouri Restaurant Association testified in favor of the bill. The AFL-CIO
testified in opposition and the Missouri Association of Trial Attorneys testified for information,
indicating that they would like to work toward a more broad-based solution.

Following the hearing the committee took up the bill in executive session and voted 6-5 to recommend
that it do-pass.

REQUIRES ATTORNEY GENERAL TO SUE FEDERAL GOVERNMENT ON
IMMIGRATION ENFORCEMENT
The Senate Committee on Government Accountability on February 23, 2011 held a hearing on Senate
Bill 72 sponsored by Senator Will Kraus (R-Lee’s Summit). The bill would require the Attorney General
to sue the federal government to enforce federal immigration laws. There were no witnesses and the
committee took no further action on the bill.

MODIFIES EMPLOYMENT DISCRIMINATION LAW
The Senate Commerce, Energy and the Environment Committee on February 22, 2011 held a hearing on
Senate Bill 188 sponsored by Senator Brad Lager (R-Savannah), which would modify existing law
relating to the Missouri Human Rights Act and employment discrimination. Senator Lager and
numerous witnesses testifying in favor of the bill on behalf of business, insurance, employment and
other groups emphasized that existing law is doing serious damage to Missouri’s prospects for retaining
existing employers and attracting new business due to uncertainties related to the current state of
employment law arising from court decisions. An equally passionate group of witnesses in opposition
representing labor, attorneys, organizations representing certain protected classes, and others, testified
that the proposed changes would be detrimental to the rights of numerous individuals in Missouri. After
a lengthy hearing the committee adjourned without taking further action on the bill.

SMALL BUSINESS REGULATORY FAIRNESS BOARD
On Tuesday, February 22, 2011 the Senate Small Business, Insurance and Industry Committee held a
public hearing on Senate Bill 182 sponsored by Senator Luann Ridgeway (R-Smithville). SB 182
allows the small business regulatory fairness board to hire a one-half full-time and a full-time equivalent
employee for clerical support and for a professional position subject to appropriation. Those individuals
shall be charged with numerous clerical and administrative tasks in support of the board as are
enumerated in the act. The board may use other appropriated funds for Internet upkeep, information
technology, covering mileage costs for members, paying for publications, and outreach costs. Testifying
in support were the Missouri Chamber of Commerce and Industry and Associated Industries of
Missouri. No testimony was received in opposition and the committee took no further action.


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UNIFORM APPLICATION FORMS FOR GROUP HEALTH POLICIES - UPDATE
On Tuesday, February 15, 2011 the Senate Small Business, Insurance and Industry Committee held a
public hearing on Senate Bill 92 sponsored by Senator Rob Schaaf (R-St. Joseph). Under current law,
the Director of the Department of Insurance, after consultation with health care providers, their licensing
boards, and various health insurers (accident and health, HMOs, and health service corporations) is to
prescribe a uniform claim form for reporting by health care providers. This act removes the respective
health insurers from the consultation process. The act also requires the director, after consultation with
health insurers and a public hearing, to establish by rule uniform insurance application forms to be used
by all insurers for group health insurance policies, except small employer health plans. Testifying in
support were an insurance agent from Columbia, Missouri, and Coventry Health Care. Testifying in
opposition was Anthem Blue Cross/Blue Shield. The committee took no further action.

On Tuesday, February 22, 2011 the committee held an executive session and voted SB 92 “do
pass” by a 6-1 vote. Senator Tim Green (D-Spanish Lake) voted against the bill.

MISSOURI PREVAILING WAGE LAW
On Tuesday, February 22, 2011 the Senate Small Business, Insurance and Industry Committee held a
public hearing on Senate Bill 176 sponsored by Senator Brian Munzlinger (R-Williamstown). SB 176
modifies Missouri's prevailing wage law.

Under current law, a locality, for the purposes of determining the prevailing wage for an occupational
title, may encompass two or more counties adjacent to the one in which the construction is to be
performed in certain instances. SB 176 only allows the county in which the work is to be performed to
be used as a basis for determining the prevailing wage. If the department of labor is unable to determine
the hourly rate for a particular occupational title by means of wage surveys, the prevailing wage shall be
the median hourly estimated wage of the construction and extraction occupational code most closely
resembling the occupational title as published in the Metropolitan and Non-Metropolitan Area
Occupational Employment Wage Estimate published by the United States Bureau of Labor Statistics, or
the median hourly wage estimate for occupational code 47-0000 in the construction and extraction
occupational code.

Currently, the definition of "prevailing hourly rate of wages" includes contributions irrevocably made by
a contractor or subcontractor to a trustee or to a third person pursuant to some plan or program. SB 176
removes the requirement that the contributions be irrevocably made to a trustee or third person and only
requires that they be contributions into a fund, plan or program to qualify as part of the prevailing wage
calculation. Wage rates established by collective bargaining agreements shall not be considered when
determining wage rates and the rate shall be the average of the rates that are paid within the locality.

Under current law, when the Department of Labor finds a violation of the prevailing wage statutes, it
provides a notice of penalty to the employer. SB 176 changes references to "notices of penalty" to
"notices of violation".

Testifying in support were Mexico Public Schools; Associated Builders and Contractors of Missouri;
and Associated Industries of Missouri. Testifying in opposition were the Missouri AFL-CIO; Eastern
and Western Missouri Labor Council; Heavy Construction Contractors of Greater Kansas City; Builders
Association of Kansas City; SITE Improvement Association; and Construction Employers Coalition.
The committee took no further action.

LABOR UNION PARTICIPATION IN POLITICAL CAMPAIGNS
On Tuesday, February 22, 2011 the Senate Small Business, Insurance and Industry Committee held a
public hearing on Senate Bill 202 sponsored by Senator Jason Crowell (R-Cape Girardeau). SB 202
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requires employee authorization before public employee labor unions can withhold fees from employee
paychecks or make political contributions.

The employee must authorize the amount to be withheld and that such an amount may be used for
political contributions. The employee may also stipulate to which committee their fees will be paid.
Authorizing or refraining from authorizing any amount shall in no way affect employment.

The labor union must keep records of all authorizations and submit them to the Labor and Industrial
Relations Commission. The labor union will be charged the greater of eight dollars or two percent of the
authorized deduction for administration expenses.

Testifying in support was Associated Industries of Missouri. Testifying in opposition were the Missouri
AFL-CIO; Missouri National Education Association and United Steel Workers Union. The committee
took no further action.

STATE MINIMUM WAGE
On Tuesday, February 22, 2011 the Senate Small Business, Insurance and Industry Committee held a
public hearing on Senate Bill 110 sponsored by Senator Jason Crowell (R-Cape Girardeau). Upon voter
approval, SB 110 prevents the Missouri minimum wage from exceeding the federal minimum wage.
Testifying in support were Associated Industries of Missouri; Missouri Chamber of Commerce and
Industry; Missouri Restaurant Association; Associated Builders and Contractors and the National
Federation of Independent Businesses. Testifying in opposition were Missouri Jobs for Justice; Vintage
Vinyl; Missouri AFL-CIO and United Steel Workers Union. The committee took no further action.




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