This morning, Senator Chuck Purgason, Chairman of the Senate Ways and Means and Fiscal Oversight Committee, reported HB 1403 to the Missouri Senate floor. HB 1403 is the worker’s compensation bill that addresses both the occupational disease and co-employee issues. Although it currently contains language regarding the Second Injury Fund, that language will be removed in a Senate Substitute.
The bill could be taken up at any time. Session ends one week from tomorrow, May 18.
The Missouri Senate began working on a bill to increase funding for veteran’s homes today, signaling the beginning of the debate over appropriations. The appropriations bills must be passed by Friday. This is good news for other issues as well, including worker’s compensation legislation.
When I finally stopped monitoring last night’s Senate debate at nearly 2:00 a.m. this morning, it looked like passing any bills would be a struggle. The outlook was just as dismal today as Senate and House deliberations over the state budget continued. When money is tight, it is much tougher to craft a budget that provides necessary services and makes the best use of taxpayer’s money. However, there were two Senate Committee hearings and successful amendment of a Senate bill in the House that are worth mentioning.
Yesterday, we told you about our refund language that allows taxpayers to seek refunds directly from the Missouri Department of Revenue in situations where the vendor chooses not to participate in the refund claim. That bill, HB 1504, was Truly Agreed and Finally Passed and will await the Governor’s signature.
Today, Rep. Tom Flanigan attached an amendment to SB 591 in the House that added tax amnesty, DOR collection procedures, AIM’s refund language and AIM’s language allowing tax cases to be held in abeyance pending the outcome of a test case. The final fate of the bill will be decided after the ice thaws in the Missouri Senate: either the Senate will accept the amendment, the bill could be sent to a conference committee to decide which issues should be included in the final bill, or the Senate could simply refuse to take up the bill for debate. Some senators have expressed disagreement with the amnesty provisions, allowing taxpayers to register and pay taxes without interest or penalties, in exchange for a long term commitment to continue to pay taxes. In the post Sarbanes-Oxley business environment, some companies need a little incentive to register for taxes in Missouri that may or may not be due.
Debate on the Senate floor yesterday left few indications of any short-term solution to the problems expressed by some senators with the budget process, nor is there any short-term solution to some senators’ objections to the general state of politics. However, today a Senate committee heard testimony on HB 1540, a bill dealing solely with the worker’s compensation issue of co-employee liability, preventing lawsuits against fellow employees in workplace accident situations. That bill, supported by AIM, was heard and approved by the Senate Small Business Committee.
Another Senate committee, the Senate Commerce Committee, heard HB 2099 dealing with the AIM-supported issue of whistle-blower protections, clarifying that a person claiming protection as a “whistle-blower” must actually be “blowing the whistle” on illegal acts of the employer, or actions that would violate regulations or public policy of the state. The committee took no action today, but has another meeting scheduled for tomorrow to decide whether to advance the bill.
Both bills are scaled-back versions of legislation previously vetoed by Governor Jay Nixon. A bill addressing both the co-employee liability and occupational disease issues was previously vetoed by the Governor, as was a bill that would align Missouri’s discrimination laws with current federal discrimination laws and provide whistle-blower protection. We do not know if the Governor will sign either of the narrowed bills heard by the Senate today.
At Associated Industries of Missouri, we make sure Missouri employers’ voices are heard during deliberations that affect your business’ ability to thrive. Enabling your business to thrive in a world economy is what we are all about. Stay tuned for more updates as the legislative draws to a close in less than two weeks.
If you are not a member of Associated Industries of Missouri, call our office today for information on how you can be a part of the oldest general trade association in the state and make your voice heard. Our office number is 573-634-2246 or you may visit us on the web at www.aimo.com. Also, please be sure to enter your email address in the upper right hand corner of this blog to receive updates as we post them so you and your employees can stay informed on developments at the Missouri Capitol that affect your business.
The Missouri House tonight approved Senate amendments on HB 1504. One of those amendments contained Associated Industries of Missouri (AIM) refund language allowing taxpayers that originally paid sales and/or use taxes to seek refunds directly from the Missouri Department of Revenue, if a vendor fails or refuses to participate in seeking the refund. Currently, taxpayers are left without recourse if a vendor refuses to seek the refund. The Senate language was adopted by a powerful bipartisan margin (113-28) and the bill was Truly Agreed and Finally Passed by a vote of (112-29).
AIM began working with the Missouri Department of Revenue on details of the language last year. “Finally, taxpayers have the ability to recover sales and use taxes they have paid improperly on purchases,” said Ray McCarty, president/CEO of AIM. “Today’s vote is a win for taxpayers, including Missouri employers.”
The bill will now be sent to the Governor for signature.
With two weeks remaining in the 2012 Legislative Session, important business priorities remain unresolved.
Two bills that would address issues with worker’s compensation (preventing employees from suing each other in workplace accident situations, and continuing to provide coverage for occupational diseases within the worker’s compensation system) are pending in the Missouri Senate. HB 1403 addresses both of these issues while HB 1540 would only fix the co-employee lawsuit issue. HB 1403 was approved by the Senate Committee on Ways and Means and Fiscal Oversight, but the Chairman, Senator Chuck Purgason, did not immediately report the bill to the full Senate (as is usually the case). Purgason, and other senators, have wanted to have a thorough revision of the tax credit structure in Missouri for several years. While Governor Jay Nixon has sent a letter stating he wants to work with employers to address these issues, his proposal for addressing occupational diseases from exposure to toxic substances is extremely unreasonable and would be harmful to employers. The Governor’s proposal that he would be willing to sign: more than $162,813 paid annually to the employee for life, guaranteed for at least 300 weeks (a total of at least $939,306) plus continuing benefits for an employee’s spouse or children, and the payments would not be suspended if the employee is able to work (as is the case with other permanent total disability claims). That position is not unexpected when you realize that trial attorneys, a group that strongly supports Governor Nixon, are making lots of money suing employers and would continue to make a lot of money under Governor Nixon’s proposal. You may recall Governor Nixon vetoed legislation earlier this session that would have addressed both worker’s compensation issues because the amount that would be paid for occupational diseases was not enough, in his opinion. The bill that only prohibits lawsuits against fellow employees in work comp accidents has been scheduled for hearing in the Senate on Tuesday.
HB 2099, legislation that would require employees claiming “whistle blower” protection to have alerted authorities to an act of the employer that is truly illegal, in violation of a regulation or in violation of public policy, has been scheduled for hearing on Tuesday also. Governor Nixon previously vetoed these provisions when presented in a larger bill that aligned Missouri’s discrimination laws with federal laws in effect today. The Governor, and many media reports, have inaccurately portrayed that legislation as “rolling back” discrimination laws to the 1960′s, but in fact, that legislation would have simply aligned Missouri’s human rights law with today’s federal human rights laws – the standard used in most states. The whistle blower bill does NOT contain these changes to the discrimination laws, but the Governor has not yet indicated whether he will sign or veto the whistle blower bill.
The Missouri House this week passed HB 1639, sponsored by Rep. Jerry Nolte, that would reduce the tax liability of EVERY Missouri business by 50% over five years, if income tax revenues continue to grow. It is our sincere belief (and that of former presidents John F. Kennedy and Ronald Reagan) that reducing the income tax burden on all businesses will cause an increase in income tax revenues as those former tax payments are used by job creators to hire and promote employees. The bill also contains amnesty provisions, enhanced procedures for collection of taxes and refunds to taxpayers, and clarifications of the 2007 law that exempted manufacturing inputs from sales taxes. The Missouri Senate briefly debated similar legislation but that legislation has been tabled in the Senate, at least temporarily.
Members of Associated Industries of Missouri are invited to attend our weekly legislative update webinar on Monday mornings at 10:00 a.m. These webinars, over the next two weeks will provide you with up-to-date information on the status of these and other bills of interest to employers. If you are a member and would like to register for the legislative webinar, please contact the AIM office at 573-634-2246. If you are a Missouri employer that is not yet a member of AIM, we believe you would benefit from membership in the state’s oldest general business association – please contact us today.
May 4 - WTHR.com reports illegal immigrants are exploiting a loophole in the income tax law to obtain billions in undeserved tax refunds. The loophole involves the use of the “Additional Child Tax Credit” which illegal immigrants are using to claim relatives as dependents that do not live in the United States.
Rep. Jerry Nolte led passage today of a broad based tax cut that lowers taxes for every Missouri business. Income taxes would be reduced by 50% over five years, provided income tax revenues continue to grow. Associated Industries of Missouri has supported the bill since its inception last year.
The bill will now move to the Missouri Senate.
