TO:MORTGAGE BANKERS ASSOCIATION OF MISSOURI MEMBERSHIP
RE: MISSOURI LEGISLATIVE UPDATE
DATE: March 7, 2014
HEARINGS FOR THE WEEK OF MARCH 10th
MONDAY - 03/10/14
House-Workforce Development and Workplace Safety
12:00 PM, HR 5
Public Hearing:
HB 1623 Kelley - Allows employers to offer employees the option of accruing compensatory leave time on an hour-for-hour basis in lieu of receiving overtime wages.
HB 1188 Elmer - Establishes the Whistleblower's Protection Act to codify the existing common law exceptions to the at-will employment doctrine making it unlawful for an employer to discharge a protected person.
Executive session may be held on any matter referred to the committee.
House-Insurance Policy
Upon Afternoon Adj., HR 1
Executive Session:
HB 1486 Fitzpatrick - Specifies that beginning January 1, 2015, certain shareholders of S corporations may elect to reject workers compensation insurance coverage.
Executive session may be held on any matter referred to the committee.
Senate-Judiciary and Civil and Criminal Jurisprudence
Upon Evening Recess or Adj., Senate Lounge
SB 585 Dixon - Modifies the calculation of the limitation for punitive damages.
Possible Executive Session:
SB 706 Cunningham - Prohibits bad faith assertions of patent infringement.
Any other bills awaiting executive session.
Senate-Financial and Governmental Organizations and Elections
2:00 PM, Senate Lounge
SB 655 Kraus - Modifies who may lawfully occupy rental property and procedures for eviction of a tenant.
Executive session may follow.
TUESDAY - 03/11/14
Senate-Seniors, Families, and Pensions
8:00 AM, SCR 1
SB 844 Dixon - Modifies the shared work unemployment compensation program.
Executive session may follow.
Senate-Small Business, Insurance and Industry
1:00 PM, SCR 1
SB 559 Sifton - Prohibits an insurer from requiring any waiting period for health insurance coverage for maternity benefits and requires coverage to begin immediately from the effective date of the health insurance policy or plan.
SB 846 Richard - Provides that an attorney shall not collect a contingency of more than a specified percentage of damages.
Executive session may follow.
THURSDAY - 03/13/14
House-Workforce Development and Workplace Safety
8:00 AM, HR 3
Public Hearing:
HB 1734 Fraker - Requires the Division of Workers' Compensation to develop and maintain a workers' compensation claims database.
HB 1930 Engler - Changes the laws regarding unlawful discriminatory employment practices as they relate to the Missouri Human Rights Act
HB 1996 Schatz - Specifies that for purposes of qualifying for waiting week credit and unemployment compensation benefits, good cause cannot include voluntarily quitting work to accept a job with equal or lesser wages.
Executive session may be held on any matter referred to the committee.
Senate-Ways and Means
8:30 AM, SCR 1
SB 881 Sifton - Authorizes the Department of Revenue to seek administrative garnishment orders and specifies the procedure for a certificate of lien for delinquent use taxes.
Executive session may follow.
WEEK NINE OVERVIEW – LEGISLATURE TAKES A SNOW DAY
A severe winter storm blanketed the state of Missouri last weekend and dropped ice and snow across the state making travel difficult. Due to the dangerous travel conditions, the Missouri House and Senate cancelled all activities for Monday and most of Tuesday this week. The House Budget Committee began their mark-up activities on the fiscal year 2015 state budget this week and will likely complete this process by the end of next week.
The Missouri House debated and passed legislation relating to telecommunications; abortion; public records and medical malpractice damage caps. The Missouri Senate spent the week working on several controversial issues including abortion, tort reform and tax reform. The legislature is set to return on Monday at 4:00 p.m.
PROFESSIONAL LICENSURE UPDATES
The House Committee on Professional Registration and Licensing on March 5, 2014 held a hearing on House Bill1771, sponsored by Representative Kevin Elmer (R-Nixa). This bill changes the laws regarding the licensure of architects, professional engineers, professional land surveyors, and professional landscape architects. It incorporates updated definitions and brings the statute in compliance with current practice at the state and national level. The American Institute of Architects, Missouri Society of Professional Surveyors, Missouri Society of Professional Engineers and Missouri Association of Landscape Architects testified in support. Bruce Hillis opposed the elimination of “grandfather” provisions and the Missouri Land Title Association pointed out issues that are in conflict but could be resolved by working with the bill sponsor.
The Committee took no further action.
TRANSFER OF FIDUCIARY OBLIGATIONS - UPDATE
On Monday, February 24, 2014, the Senate Financial and Governmental Organizations and Elections Committee heard Senate Bill 794, sponsored by Senator Maria Chappelle-Nadal (D-St. Louis). Senate Bill 794 allows certain financial institutions to transfer fiduciary obligations. Craig Overfelt, Missouri Bankers Association; Jonathan Spetner, Spetner Associates; and Merritt Mamroth, trust advisor, testified in support of the bill. There were no witnesses to testify in opposition and the committee took no further action.
The committee went into executive session on Tuesday, March 4, 2014, where Senate Bill 794 was voted do pass out of committee.
EMPLOYER/EMPLOYEE RELATED ISSUES
CREDIT HISTORY AS HIRING CRITERIA LIMITED - UPDATE
The House Workforce Development and Workplace Safety Committee on February 10, 2014 held a hearing on House Bill 1153, sponsored by Representative Sharon Pace (D-St. Louis). This bill specifies that it will be an improper employment practice for any employer to directly or indirectly use a job applicant’s personal credit history as hiring criteria, with certain exceptions.
Missouri AFL-CIO, United Steelworkers Union, and Securities Industry and Financial Markets Association testified in favor of the bill. The Missouri Chamber of Commerce testified in opposition. The committee took no action on the bill.
On Wednesday, March 5, 2014, the committee reconsidered House Bill 1153. A substitute was adopted which includes the Connecticut model language, but in order for the bill to be consent the penalty provision had to be removed. The committee then voted House Committee Substitute for House Bill 1153 do pass out of committee. The bill has now been referred to the House Rules Committee.
ECONOMIC-EDUCATION PARTNERSHIP ACT - UPDATE
The House Economic Development Committee voted do pass House Bill 1171, sponsored by Representative Mike Butler (D-St. Louis), by a vote of 23-0. House Bill 1171 establishes the Economic-Education Partnership Act, which allows employers to retain withholding taxes up to the amount spent on educational benefits for employees and unpaid interns or up to the amount spent on educational benefits.
The committee went into executive session on Tuesday, March 4, 2014, where House Committee Substitute for House Bill 1171 was adopted and voted do pass by a vote of 22-0.
RIGHT/FREEDOM TO WORK ON AUGUST 2014 BALLOT - UPDATE
The House Workforce Development and Workplace Safety Committee on February 24, 2014 held a hearing on House Bill 1770, sponsored by Representative Eric Burlison (R-Springfield). The bill would establish Right to Work through a constitutional amendment to be placed on the ballot at the August 2014 election.
The Missouri Chamber of Commerce and an individual, Mr. Todd, testified in support. The Missouri AFL-CIO, Plumbers and Pipefitters Union, the Plumbing Industry Council, the Sheet Metal, Air, Rail and Transportation Union, Association of Plumbing and Sheet Metal Contractors, United Steelworkers District 11, and Greater St. Louis Labor Council offered testimony in opposition.
The committee took no action on the bill.
On Tuesday, March 4, 2014, the committee held an executive session where House Bill 1770 was voted do pass out of committee by a vote of 7-3.
FREEDOM TO WORK WITH COUNTY OPTION - UPDATE
The House Workforce Development and Workplace Safety Committee on February 24, 2014 held a hearing on House Bill 1772, sponsored by Representative Holly Rehder (R-Sikeston). The bill is a Right to Work measure with county option provisions. The provisions of the bill will only apply in counties in which the act has been adopted by the governing body and approved by the voters of the county. The issue of repealing the act may be put on the ballot by the county governing body or by voter petition.
The Missouri Chamber of Commerce testified in support. The Greater St Louis Labor Council, Missouri AFL-CIO, Sheet Metal, Air, Rail and Transportation Union, Plumbing Industry Council, and Carpenters District Council of St. Louis testified in opposition. The committee took no action on the bill.
The committee went into executive session on Tuesday, March 4, 2014, where House Bill 1772 was voted do pass by a vote of 7-3.
CONVERTS TO SALES TAX ON RETAIL SALES
The House Ways and Means Committee on March 4, 2014 held a hearing on House Joint Resolution 80, sponsored by Representative Andrew Koenig (R-Manchester). Upon voter approval, this proposed constitutional amendment phases out the state individual income tax and replaces the current state sales and use tax with a state sales tax on retail sales of new tangible personal property and taxable services. After January 1, 2018, the sum of the rate on food and the rate for the conservation sales tax and the parks and soils sales tax cannot exceed 5.5% and the sum of the state sales tax rate and the rate for the conservation sales tax and the parks and soils sales tax cannot exceed 7%.
Property purchased to be a component part or ingredient of a new tangible personal property to be sold at retail; government purchases including federal, state, and local governments; purchases of inventory; real property transactions; purchases of utilities; purchases of medical services including medications; purchases of professional services; purchases of child care and elderly care; purchases between consolidated entities; purchases of services rendered by employees for his or her employer; business-to-business transactions including agriculture; purchases for investment; purchases involving gambling at licensed bingo, racing, or gambling boats; purchases relating to common carriers; purchases of railroad rolling stock; purchases of barges and cargo; tuition and fees for education; purchases of insurance products and services; purchases of used tangible personal property; purchases by charities; and any purchase of tangible goods or service exempted by a majority vote of two-thirds of each house of the General Assembly and approved by the Governor will be exempt from the new sales tax. Beginning January 1, 2016, exemptions not specifically listed in this resolution will be eliminated. The General Assembly must enact a law with an effective date of no later than January 1, 2018, to continue the Senior Citizens Property Tax Credit after the individual income tax is eliminated.
The Show Me Institute explained the bill and testified in support. Associated Industries of Missouri and the Missouri Chamber of Commerce also testified in support. St. Louis County and Cooperating School Districts of Greater St. Louis testified in opposition. The committee took no action on the bill.