February 23 – Yesterday, the Senate Jobs, Economic Development & Local Government Committee heard testimony on a bill that takes a step toward AIM’s goal to cut business income taxes in half over five years.
The bill, SB 661, sponsored by Committee Chairman Senator Eric Schmitt, would phase in a 25% cut in the income taxes paid by businesses over five years. Associated Industries of Missouri asked Senator Schmitt and the Committee to consider reducing the taxes by 50% in the same manner as our priority legislation, HB 1639 filed by Representative Jerry Nolte in the Missouri House. The House bill would reduce taxes by 30% over three years and compare income tax receipts at that time with current income tax receipts. If the tax receipts after three years are the same or greater than current tax receipts, the taxes would be lowered by 40% and 50% over the next two years. The tax cut would apply to ALL businesses, regardless of size or type of organization. Individuals that report income from S Corporations, LLC’s, LLP’s, partnerships and sole proprietorships would also enjoy the reduction. During testimony, Senator Schmitt pointed out that when the legislature reduced the franchise tax rate, the state actually collected more money from the tax and AIM president Ray McCarty echoed those sentiments during testimony.
Associated Industries of Missouri and the NFIB were the only statewide business organizations to support the bill and there was no opposition expressed to the Committee.
Rep. John Cauthorn has filed HB 1752, Associated Industries of Missouri’s priority legislation that makes sure Missouri’s Hazardous Waste Commission does not file any rule, regulation, standard or guideline that is stricter than necessary to meet federal requirements.
“This legislation ensures Missouri companies are not disadvantaged by regulations that go beyond requirements of federal law,” said Ray McCarty, president of Associated Industries of Missouri. “Missouri companies need to be able to compete on a level playing field with businesses in other states and around the world. Regulations that exceed federal requirements place Missouri companies at a disadvantage in a global marketplace.”
The legislation also allows variances, or exceptions to rules that:
- Would cause economic hardship; or
- Is physically impossible; or
- Is more detrimental to the environment than the variance would be; or
- Is impractical or of insignificant value under the existing conditions.
February 22, 2012 - It is no surprise to Missouri’s transportation community that transportation funding in Missouri is cause for concern. Throughout the past six years, former MoDOT Director Pete Rahn, then-Chief Engineer/Current MoDOT Director Kevin Keith, Senator Bill Stouffer and others traveled the state with the Missouri Transportation Development Council (MTD) to educate Missourians on the need to invest in Missouri’s transportation infrastructure since tax dollars are no longer able to support and maintain existing infrastructure. The MTD continues to participate in these discussions.
Wednesday morning, the Senate Transportation Committee held its first hearing on Senate Bill 752. The legislation, filed by Senator Mike Kehoe, would allow the Missouri Highway and Transportation Commission to bid out – through a Public-Private Partnership – the conversion of 200 miles of I-70 into a toll road. While toll roads are not too popular – and Sen. Kehoe acknowledges this – he stated, “Although not popular, this option is viable.”
Last year, MTD surveyed its membership and found that the idea of toll roads did not fair well with our members. Although the organization’s board has not voted on an official position, this is what we found:
- 40% would support a toll-road system;
- 89% would support a one-cent general sales tax ($750 million estimated revenue); and,
- 67% agreed that multiple revenue generators would be needed.
Director Keith opened the testimony discussing the possibility of bidding out the “open toll system” (using electronic means to collect revenue). He openly stated, “This does not solve the transportation needs of Missouri.” But, it does give Missouri options:
- $2 billion – Rebuild I-70 using current medians to expand to three lanes both ways;
- $3 billion – Buy additional rights-of-way and expand to three lanes both ways, with future opportunity to expand;
- $4 billion – Expand I-70 to four lanes both directions (two car/two truck).
Currently, Missouri ranks 7th in the nation for the size of its infrastructure. By contrast, Missouri is 42nd in the nation for the amount of revenue raised per mile. Keith continues, “The option of doing nothing is not real for us. We need to be concerned.”
If MoDOT were to move forward with the project, it is estimated that Missouri would create 6,000-10,000 jobs in the 6-8 years of construction. MoDOT has done a great job with its current resources and is considered the most trusted state department in Missouri, according to recent polling (80% of Missourians trust what MoDOT says it will do). That said, MTD has not determined if the toll system proposal is the best solution to solve the growing need.
Opposition:
Tom Crawford of the Missouri Trucking Association spoke first in opposition. He argued, “The fact that Missouri can push this without a vote of the people is fundamentally, politically, and legally wrong.” He went on to state that the Trucking Association does want to improve I-70, but not with a toll system. The Association has gone on the record in support of a fuel and diesel tax increase, as well as a general sales tax increase. Other concerns raised by Mr. Crawford stretched from constitutionality issues and interstate commerce to the diversion of LTL (“less than load”) freight to other Missouri non-toll roads.
The second group to oppose the measure was Missouri’s Petroleum Marketers Association. Ron Leone, the organization’s Executive Director, stated that the organization is very much in support of improving Missouri’s I-70 system, but they feel a toll road is the wrong way to do it. The Petroleum Marketers Association also supported a state general sales tax increase. Leone continued that his members had concerns with the diversion of their potential customers to the non-toll roads.
February 15 – The Missouri Senate today gave first round approval to SB 572, Associated Industries of Missouri priority legislation that clarifies occupational diseases are covered under worker’s compensation and prevents employees from suing each other in worker’s comp injury cases. Amendments were added to provide an employee that engages in an “affirmative negligent act” is not protected under the new language, and clarifying that the worker’s comp claim must be settled before any civil suit is filed and allowing the statute of limitations to be tolled while the work comp claim is in process.
AIM thanks Senate Majority Leader Tom Dempsey for his leadership in passing the bill and for all the senators that took part in negotiations to clear the path for this bill.
Worker’s Compensation and Second Injury Fund
February 13 – The House Workforce Development Committee heard some testimony on HB 1403, sponsored by Rep. Dave Schatz, then continued the hearing to another day. The bill would rectify the worker’s compensation system by making sure occupational diseases are covered under the worker’s compensation law and preventing employees from suing each other in work comp accidents. The bill also contains the reforms of the Second Injury Fund we have written about before (see a4gb.wordpress.com blog for stories on this subject). Associated Industries of Missouri testified in favor of the bill, and HB 1540, sponsored by House Majority Floor Leader Tim Jones, that addresses only the co-employee issue, but may be expanded later if needed.
Negotiations continue in the Senate on the issue. We will keep you posted of developments.
February 9 – The Missouri House today approved the employment law reform bill 89-68, despite opposition from some Republicans. Nearly every person speaking in opposition to the bill appeared to not even have read the bill, as their concerns had been addressed in the bill.
Interestingly, 9 of the 16 Republican representatives voting “no” on the first round vote on the bill were from the Kansas City area. Representatives Berry, Marshall, Brattin, Schieber, Neth, Silvey, Torpey, Lasater, and Solon all voted against the bill. In fact, 22 of the 70 total votes against the bill were from representatives of the Kansas City area. Other Republicans voting against first round approval of the bill included Representatives Asbury, Bahr*, Barnes, Cookson*, Leach, Weter, and Wyatt. Two Democrats that supported the bill last year switched their votes and voted against the bill on the first round vote this year (Representatives Shively and Swinger).
*UPDATE: On the final 3rd Reading vote, Representatives Bahr and Cookson voted in favor of the bill.
Some of the false arguments against the bill made it apparent that many that objected to the bill had not even read the bill. There were claims that the bill did away with trials by jury. There are two specific sections allowing any party to receive a jury trial. There were objections to a section dealing with summary judgments - the summary judgment section was removed from the bill. There were claims that this law did not comply with the federal law because of its impact on housing discrimination claims, when, in fact, the language specifically excludes housing discrimination claims from the provisions of the bill. One representative even claimed whistle-blowers whose employers violated the law would not be protected, when the language specifically protects whistle-blowers whose employers have violated the law, regulations, and public policy. At least one representative even claimed that the bill would allow religious persecution – this could not be further from the truth as the bill simply aligns Missouri law with the federal law and religious persecution is certainly not allowed under federal law.
It’s one thing to oppose a bill based on the actual language of the bill, but quite another to object to a bill without grounds. Business men and women should ask their elected representatives and senators how they voted on this legislation and ask for their support the next time they have an opportunity to vote on the legislation.
February 9 – The Missouri House gave final approval to HB 1311 today, a data center incentives bill (see story on blog) by a vote of 149-5. The bill enjoyed strong bipartisan support and now advances to the Senate for further consideration.
February 9 – HB 1311, sponsored by Rep. Ryan Silvey, received first round approval from the Missouri House yesterday. The bill contains incentives that will help Missouri compete for location of data centers. Currently, Missouri is losing data centers to other states that have attractive incentive programs. The bill contains minimum investment requirements for companies that will be entitled to sales tax exemptions on purchases of equipment and utilities for the data centers. Associated Industries of Missouri is part of a coalition of business organizations and companies supporting the development of data centers in Missouri.
The bill will now face one more vote before moving to the Senate. Also, see news coverage by Missouri News Horizon, by clicking here.
February 8 – SB 592, the employment law reform bill sponsored by Senator Brad Lager, was approved by the Missouri Senate today. The bill now goes to the House for further consideration. The bill aligns Missouri’s discrimination laws with federal discrimination laws and rectifies loopholes in the whistle-blower laws. Congratulations to Senator Lager and Senate leadership for passing this bill. Governor Nixon vetoed a similar law last year. Next debate will be in a House committee and we will keep you posted of updates.
Also today, AIM testified in support of an amendment to the sales and use tax laws to reduce the administrative burden and legal costs of taxpayers seeking refunds or attempting to resolve disputes with the Missouri Department of Revenue. The language will be added to a bill that provides amnesty for taxpayers and boosts collection efforts for delinquent taxes. AIM also incorporated language that requires DOR to send at least one notice of a tax delinquency by certified mail. DOR had asked to be able to send ALL notices via regular mail. The language will be included in a committee substitute for HB 1030, sponsored by Representative Tom Flanigan.
The Missouri Department of Labor has prepared a video featuring Gracia Backer, Director of the Missouri Division of Employment Security and Tammy Cavender, Director of Human Resources for the Missouri Department of Labor. The video contains tips for employers on ways to properly document disciplinary actions and other items that will help employers if the terminated employee files for unemployment compensation.
