Lobbyist Report

Legislators have been busy over the last month as they continued their work in the special legislative session on crime called by Governor Parson as well as the annual veto session which was held September 16.  In addition, legislators continue to campaign for election or re-election before the November General Election.  The new COVID-19 world has made in-person fundraising difficult at best.

The veto session is the constitutionally mandated opportunity for members of the General Assembly to override any vetoes issued by the Governor on bills from the regular session. It is also an opportunity for legislators to hold their final fundraising events before the General Election. No less than fifty members of the House and Senate held fundraisers in Jefferson City the night before and morning of the veto session.

Once legislators gathered at the Capitol, the only veto session activity was in the House, where Representative Mike Moon (R – Ash Grove) made a motion to override a veto of $140,000 that was  intended to repay business owners who had been successful in a fight with the Department of Revenue over interpretation of a tax issue. The motion passed in the House by a 138-6 margin, but the Senate refused to act on the override, thus allowing the veto to stand.  That was the only veto session activity.

The weeks long special legislative session finally came to an end during veto session.  It turned out to be much more active than the actual veto session. Senate members had returned to Jefferson City in early September to consider the crime related bills passed in August by the House. Those bills reflected what Parson had outlined in his call for the special session. Two of those bills – eliminating residency requirements for St. Louis Police officers and establishing a witness protection fund – passed easily. The remaining bills garnered much more debate. Those bills included endangering the welfare of a child due to weapons offenses, transfer of a firearm to a juvenile, and HB2 – a measure which allowed the admissibility of certain witness statements in court proceedings. Senator Bob Onder added language to the bill which would have allowed the Attorney General to have concurrent jurisdiction on certain homicide cases in the city of St. Louis. An hours-long filibuster that lasted into the early morning ensued because of the Onder amendment, and only ended with the rarely used “previous question” motion, which ends debate and forces a vote. The bill eventually passed with Onder’s amendment attached, thus sending it back to the House for their consideration of the changes.

It had been rumored that House leadership was opposed to the concurrent jurisdiction provision, and that  became evident as Speaker of the House Elijah Haahr gaveled members in for the special session, then immediately made a motion to adjourn, thus ending the special session and any chance for the remaining bills to pass. The move was seen partial defeat for Parson as only two of the crime related bills reached his desk.

The Governor has hinted that he will call legislators back to Jefferson City for another special session sometime in October to deal with the supplemental budget in order to fund the witness protection program. No date has been announced.

In the meantime, it’s back to the campaign trail for most legislators, as we are now in the home stretch leading up to the General Election. We will continue to keep you updated on political happenings in Jefferson City and around the state.

The past month has been exceptionally busy in Jefferson City in what continues to be an unusual year. Due to an ongoing rise in violent crime, especially in St. Louis and Kansas City, Governor Mike Parson made the call for a special legislative session to address several aspects of criminal law.

The special session began on July 28 with nearly twenty witnesses testifying in support of SB1, a multiple topic bill that covered all aspects of the Governor’s agenda for the session. The bill includes removing police and public safety employee residency requirements for St. Louis; requiring courts to determine if a juvenile should be certified for trial as an adult for the unlawful use of a weapon and armed criminal action; allowing certain statements to be admissible in court that would otherwise not be allowed under current law; creation of the Pretrial Witness Protection Fund; and increasing the penalty for a person who knowingly sells or delivers any firearm to a child less than 18 years without the consent of the child’s parent or guardian.

After a twelve-hour debate, the measure passed the Senate by a 27-3 bipartisan vote. The bill would not have an easy path forward in the lower chamber, however, as the House Judiciary Committee failed to advance the bill over disagreements regarding the juvenile certification provision. The measure was subsequently scrapped.

The House now has plans hold hearings on six individual bills, each covering a single topic as outlined in the Governor’s original call for the special session. Also included is a bill which allows for the Attorney General to have dual jurisdiction over certain criminal cases in the city of St. Louis. This comes after the Governor amended his special session call, saying the murder rate in St. Louis is out of control. It seems unlikely the measure will advance as many legislators have already signaled their opposition.

In election news, several area races surprised political observers but none more than Cori Bush, who unseated long time U.S. Representative Lacy Clay in the 1^st Congressional District. Clay has represented the district since 2001 and had succeeded his father in holding the seat. Bush is a nurse and Black Lives Matter activist. Other notable highlights in the St. Louis area include David Lenihan winning the 1^st state Senate District Republican primary. He now faces Doug Beck in the General Election. Elaine Gannon won convincingly in the 3^rd state Senate District Republican Primary; Steve Roberts was the winner in the Democratic primary for the state Senate District 5; Angela Walton Mosely was victorious in her Democratic primary in state Senate District 13, and incumbent Senator Bill Eigel easily beat his challengers in the 23^rd state Senate District Republican primary.

Amendment 2 also passed by a 46%-53% margin on election night, meaning the Medicaid program in Missouri will now expand to cover individuals with an income level at or below 135 percent of the federal poverty level. Missouri joins 37 other states in expanding the program.

The special session on crime continues as of the writing of this report.  It is expected the Governor will issue calls for additional special sessions on various other issues including spending authorization if Congress gives their approval to another stimulus bill. Also, on tap is the constitutionally mandated veto session in mid-September, where lawmakers will have an opportunity to override any vetoes issued by the Governor on bills from the last legislative session.

We will continue to keep you updated on political news in Jefferson City and around the state. Nikki Strong, Strong Consulting Group

In a normal year, there would be little news coming out of Jefferson City in the middle of the summer months. As we all know, this has been anything but a normal year.

As the coronavirus fallout continues, Governor Parson announced his first round of budget withholds for the current fiscal year which began on July 1. In his June 30 announcement, the Governor placed restrictions on nearly $450 million, affecting most every department in state government. Parson said he hopes to restore many of the cuts if the economy rebounds during the coming months.

In addition to the coronavirus affect, a rise in violent crime, protests, and clashes with police have been at the forefront of topics at the Capitol as well as across the state and nation. St. Louis and Kansas City have made national headlines because of a steady increase in murders and shootings in recent months. This has led to the Governor to call for a special legislative session to begin on July 27, in an effort to combat the rising crime rate.  Parson outlined six items in his call, including police residency requirements, juvenile court certification, witness statement admissibility, establishment of a witness protection fund, strengthening the endangering the welfare of a child statute, and strengthening the unlawful transfer of weapons statute. While discussions are underway with legislative leaders, many of the Governor’s priorities appear to have a bumpy road ahead, at best.

The Governor and his staff have completed their review of bills that passed during the 2020 legislative session which concluded on May 15.  Pursuant to the constitution, Parson was required to take action on all appropriations bills prior to June 30. Additionally, he was required to either sign or veto all policy related bills by July 14.   In the end, the Governor signed 42 bills into law this year, including 19 appropriations bills.  While the Governor made several line-item vetoes in the appropriations bills, he only vetoed two policy bills. The two bills vetoed were HB1854, which covered 37 different provisions dealing with local governments, and SB718, which deals with several provisions regarding military service members.

One of the primary reasons for the veto of HB1854 was language that would have modified the establishment of TDD’s and CID’s. Numerous local government officials expressed concerns that the provision would have likely ended new projects in these areas. Legislators will have the opportunity to override any vetoes during the annual veto session in September. There has been no word if any overrides will be attempted.

Rounding out the news is the upcoming Primary Election to be held on Tuesday, August 4.  There are many close primary races being watched around the state.  However, there are several in the St. Louis area.

Currently, one of the most closely watched races is the Democratic primary in Senate District 5 in St. Louis, where current Representative Steven Roberts is facing Alderwoman Megan Green and Michelle Sherod are battling it out to replace Sen. Jamilah Nasheed who is termed out.

Also worth watching, is the Republican primary in Senate District 3, covering Jefferson, Washington, St. Francois, Ste. Genevieve, Iron, and Reynolds Counties. The race pits current State Representative Elaine Gannon against political newcomers Kent Scism and Josh Barret.  This seat was previously held by termed out Sen. Gary Romine who resigned early to take an appointment.

Regardless of the results in the August Primary and the subsequent General Election in November, Republicans are expected to maintain a large majority in the State House and Senate. The outcome of some races, however, could alter the personality of the Senate going forward.

We will continue to keep you updated on election results, special session news, and other political happenings in Jefferson City and around the state. Nikki Strong, Strong Consulting Group.

Even though the halls of the Capitol are empty, there is still plenty of activity in Jefferson City. Staff members in the Governor’s office have been busy reviewing all legislation that passed during session in order to determine which bills warrant a signature from the Governor. As we reported last month, budget related bills must be signed or vetoed by June 30 and a decision on policy related legislation must be made by July 14. As of the writing of this newsletter, Governor Parson had signed two supplemental budget bills and only three policy related bills. The policy bills include professional licensing reciprocity, health care provider federal reimbursement allowances, and an elections bill that allows for mail-in ballots because of the coronavirus pandemic.

Cash flow is still a major concern as state and local governments along with most businesses continue to see their budgets suffer because of COVID-19. To that end, Governor Parson announced a third round of state budget withholds for the current fiscal year on June 1. The announcement came with just a month left in the fiscal year and will hit K-12 education the hardest. The new cuts amounted to $209 million, with $131 million of that amount coming from education. The Sheltered Workshops program will see a $2 million cut, while Higher Education and Workforce Development will lose $41 million. Additionally, the Department of Corrections will take a $10 million hit, $2 million will come from the Medicaid program in the form of administrative cuts, and $6 million will come from home and community based in-home services.

In a bit of good news, unemployment numbers continue to slowly improve across the state as there were 18,679 claims for the week ending June 13. The lowest number of claims this calendar year was at the end of February, when there were 2,702 claims for the week ending February 29. At the height of the COVID-19 crisis the number stood at 101,722 for the week ending March 28.

The state of Missouri has now entered the second phase of reopening since the coronavirus shutdown, with Governor Parson saying the state is “fully open for business”. Parson made the announcement on June 11, but he also extended the state of emergency through December 30. The announcement of Phase 2 means there will be no statewide health order. Any health rules or regulations are now strictly up to local leaders. The Governor stated there is now an ample supply of testing and personal protective equipment, but he also urged people to continue with hand washing, wearing masks when appropriate, and to practice social distancing.

Special session continues to be a topic of discussion in Jefferson City. Several legislative priorities that did not cross the finish line are likely to be included in the Governor’s call. At the top of this list is the Wayfair tax which could help bring much needed revenue to the state as well as cities and counties. The implementation of the tax is seen as necessary as more and more shoppers turned to internet purchases during the coronavirus pandemic.

Governor Parson has hinted at the possibility of multiple special sessions, not only because of the coronavirus fallout but the recent wave of protests and social unrest have leaders looking at a special session dealing with public safety. Some legislators are calling for massive police reform measures due to the death of George Floyd in Minnesota while in police custody. No decisions have been made yet on the timing or on any of the topics for special session.

We will continue to keep you informed on all the political happenings in Jefferson City and across the state. Nikki Strong, Strong Consulting Group

The legislative session came to an end at 6:00 pm on May 15 and the halls of the Capitol are quiet again. In what was an historic session, the state Capitol sat empty for over a month due to the impact of the coronavirus pandemic. The shortened session left little time for priority bills to work their way through the legislative process. Well over 2,000 bills and resolutions were filed by Senators and Representatives this year, but only 31 policy related bills were truly agreed and finally passed.

Once lawmakers returned to Jefferson City after the coronavirus shutdown, they had only three weeks to pass the budget and other priorities. Budget writers had to rethink their proposed spending plan for FY2021 because of the ongoing financial impact of COVID-19. They trimmed $700 million from their original proposal and warned that spending restrictions and withholds could be necessary as revenue numbers unfold throughout the year. The total of the spending plan for next year amounts to $35,291,459,657. General Revenue accounts for $10,011,743,473 of that amount, while $14,757,315,949 comes from Federal funds, and $10,522,400,235 comes from other funding sources.

Legislation that passed this year is now being reviewed by the Governor and his staff. Budget related bills must be signed or vetoed by June 30. He must take action on other legislation by July 14. Any bill signed into law will become effective on August 28 unless the measure contained a specific effective date or an emergency clause. Any bills vetoed by the Governor will be considered for an override by the legislature at the annual veto session in September.

Bills of interest to ASA that passed this session include HB2046 which deals with professional licensing in Missouri. The bill creates the “Expanded Workforce Access Act of 2020”, where licensing authorities are required to grant a license to any applicant that has completed the 8th grade, completed a federally approved apprenticeship program, and passed any necessary examination. The bill also establishes a procedure for professional licensing reciprocity for certain professionals licensed in other states.

SB591 also crossed the finish line. This legislation deals with civil actions and states that states that an unlawful merchandising practice shall not include any advertisement, merchandise, or transaction in which the merchandise consists of a new residence in a transaction in which the buyer is offered and accepts an express warranty in the sale contract by the builder or by a third party warranty paid for by the builder and the sale contract includes a disclaimer. The act defines “residence” as a single-family house, duplex, triplex, quadruplex, or unit in a multiunit residential structure in which the title to each individual unit is transferred to an owner under a condominium or cooperative system and includes common areas and common elements.

Now that the legislative session has ended, lawmakers will hit the campaign trail in full force. All 163 seats in the House of Representatives are up for election as are 17 of the 34 state Senate seats. The Primary Election will be held on August 4, with the winners squaring off in the General Election on November 3.

In the meantime, House and Senate leadership will be in discussions with the Governor regarding a possible special session(s). It is likely that the Governor will call lawmakers back to Jefferson City to address several policy issues such as the Wayfair tax and other economic development issues in addition to addressing the ongoing budget shortfall.

Just like the rest of the state and country, all the news coming out of Jefferson City in the past month has been COVID-19 related. The Capitol has been shut down except for the Governor’s daily coronavirus updates and the General Assembly’s brief return to approve the supplemental budget.

The approval of the supplemental budget was necessary to cover shortfalls in the current fiscal year as well as give spending authority to the Governor for expenditures related to the COVID-19 relief package. Most of the nearly $6.3 billion of coronavirus expense package comes from federal dollars, with the remainder made up of primarily state general revenue funds. The funding covers many areas, including assistance to cities and counties, personal protective equipment for first responders and healthcare workers, emergency food assistance, and mobilization of the National Guard.

The fallout from the pandemic has reached far and wide. Governor Mike Parson recently announced an additional $47 million in budget withholds for the current fiscal year. This is in addition to nearly $180 million in budget restrictions announced on April 1. Businesses are suffering, unemployment claims continue to roll in, and state, city and county governments are seeing budget shortfalls which may last for months or years to come.

There is, however, an end in sight to some of the COVID-19 related shut-down. The General Assembly has made tentative plans to return to Jefferson City on April 27 to complete the final three weeks of the legislative session. The only thing certain on the agenda will be to pass the FY2021 budget. It is unclear what other legislative priorities could be debated. Possibilities include an internet sales tax plan and a prescription drug monitoring database. Other bills could be brought to the House and Senate floor, but many details need to be worked out as debate time will be very limited due to the constitutionally mandated end of session date of May 15. There will likely be many restrictions in place as far as visitors entering the
Capitol, as legislators try to balance their legislative duties with public health concerns.

Governor Parson has also announced plans to work with local leaders in an effort to re-open businesses across the state. The Governor’s stay at home order expires on May 3, and he has stated that most service businesses will be allowed to open once again with certain guidelines. Parson spoke about giving beauticians and barbershops, restaurants and box stores “an opportunity to open.” He announced the “Show Me Strong” recovery plan and said the phased-in reopening of businesses would be decided by Missouri-specific public health data.

In non-legislative news, Attorney General Eric Schmitt is pointing a finger at China for their role in the COVID-19 pandemic. Schmitt is suing China, several Chinese government entities, the Chinese Communist Party, and two Chinese laboratories in U.S. District Court. Missouri becomes the first state to sue China, in what Schmitt says is a “campaign of deceit” in how the communist county has handled the virus. In a press release, Schmitt stated “the Chinese government lied to the world about the danger and contagious nature of COVID-19, silenced whistle blowers, and did little to stop the spread of the disease. They must be held accountable for their actions.” Some legal scholars say China is protected by sovereign immunity and Missouri will have a difficult time moving the lawsuit forward.

We will continue to provide legislative and political updates as the COVID-19 pandemic continues to unfold. Thank you and stay safe and healthy! Nikki Strong, Strong Consulting Group.

The month of March has been unprecedented not only around the globe, but also in Missouri and within the halls of the Capitol. As everyone is now very aware, the COVID-19 pandemic has affected virtually all aspects of everyday life. In Jefferson City, we have seen the legislative session come to a halt and the Capitol itself has been closed to all but essential employees. Multiple members of the House of Representatives and staff members are now in self-quarantine after the news that Representative Joe Runions (D-Jackson County), had been hospitalized in Kansas City and tested positive for the virus. Runions tested positive for coronavirus on March 20, and thus far is the only lawmaker to have fallen ill to the virus. His last day in the Capitol was March 12, and those who came into contact with him have been urged to take all necessary precautions. At last word, Runions was no longer on a ventilator, but remains hospitalized. In a statement released to media outlets, Runions said, “Although I remain hospitalized, I am getting better, but it will be a long recovery. The most important thing to me right now is for the doctors, nurses and hospitals in our state to get all of the support and supplies they need as they work to treat this illness. My doctors are deeply concerned that they could run out of vital supplies, especially the equipment they need to keep themselves safe while caring for patients. They also say expanded testing is needed to more quickly identify and treat those who have contracted COVID-19.”

Governor Mike Parson has been briefing reporters daily on the progression of the disease within the state, including the number of tests being done, and the distribution of supplies and equipment to health care workers and first responders. Thus far, Parson has enacted a “social distancing order”, which requires Department of Health and Senior Services Director Dr. Randall Williams to require social distancing statewide. The order prohibits gatherings of more than 10 persons and requires distancing of at least six feet between people. It was set to take effect Monday, March 23 and last until April 6.

Before the onset of the coronavirus, the legislature had been making slow, but steady progress on several bills of interest to ASA. HB1804, which streamlines the permitting process within the Department of Natural Resources has cleared the House and awaits consideration in the Senate. SB906 changes the structure of vehicle registration fees and would add nearly $47 million to the state road fund is set to be voted on in the Senate Transportation Committee. HB2550 and SB991, which are ASA’s priority bills dealing with the right to stop work for lack of payment are awaiting committee hearings. Other bills of interest including roofing contractor licensure, modifications to the amount paid by employers to unemployment compensation, and the right for an employer to refuse to accommodate medical marijuana in the workplace have also all made progress. However, the status of all legislation is now in question with the closure of the Capitol.

Although the legislative process has come to a halt, lawmakers must still formulate a plan on how they will pass a budget for fiscal year 2021. The General Assembly is mandated by the state constitution to pass a spending plan and the executive branch may not expend funds without authority from the legislature. As of the writing of this report, the budget has cleared the committee process in the House, but still faces debate on both the House and Senate floor before heading to the Governor. It is not clear if, when, or how leadership in the House and Senate plan to accommodate debate and voting on the state budget. It is also not clear what the General Assembly or the Governor intend to do with all other legislative agenda items. With no announced plan for the General Assembly to reconvene after their scheduled spring break, the possibility certainly exists for nothing but the budget to pass this year. However, as we have seen since the onset of the COVID-19 pandemic, the situation changes daily.

We will continue to keep you informed on the status of the legislative session and politics in general in Jefferson City and around the state.  We appreciate the opportunity to represent you.
Nikki Strong, Strong Consulting Group.

The threat of winter storms shortened the legislative session several days in February; however, despite those unplanned days off, the 2020 legislative session is in full swing and about to reach its halfway point. Later this month, the legislature will break for its annual spring break upon adjournment March 19 and will resume on Monday, March 30.

ASA’s legislative priority has been filed by Senator Gina Walsh. SB991 allows for contractors, subcontractors and suppliers, upon seven days’ notice, the right to suspend work on a project if agreed upon payment terms are not met.  It also allows for work to be stopped without the danger of being held liable for breach of contract. Additionally, if work is stopped for non-payment, the bill provides for contracts affected by the stoppage to be extended equitably, and the contracted amount increased for the costs of demobilization, delay, and remobilization. Also, if payment is not received within 60 days of notice to suspend work on a project, a company shall have the right to terminate its contract after providing 3 business days’ notice to the party failing to make payment. As of the newsletter deadline, Representative Aaron Griesheimer was drafting a companion bill in the House of Representatives.  We expect that his bill should be filed by the time this newsletter reaches you.  While getting any bill to the Governor’s desk is challenging, we are hopeful to make good progress with our legislation this session and educate House and Senate members to the challenges our members face.

The Missouri Department of Natural Resources recently announced they intend to raise fees on hazardous waste generators by a significant amount. In their recommendation, the Hazardous Waste Management Commission signaled their intent to raise registration fees for large quantity generators to $1,150.00. The current fee is $500.00. Fees for small quantity generators will go from $150.00 to $360.00, and the fee for “conditionally exempt small quantity generators” will jump from $150.00 to $175.00. DNR says the increases are needed in years 2021 and 2022 in order to offset a shortfall that is anticipated because of a decrease in federal grant money. The increases will go into effect on January 1, 2021 unless the General Assembly takes action to block the proposal. That is what Senator Cindy O’Laughlin intends to do with Senate Concurrent Resolution 38. The resolution recently received a passing vote in the Senate Rules, Joint Rules, Resolutions and Ethics Committee. O’Laughlin’s resolution calls the fee increase “beyond the level which the General Assembly considers to be fair and reasonable.” The measure will likely see floor time before the full Senate in the coming weeks.

The Senate passed SJR38 last month after the first lengthy filibuster of the year. This resolution could change portions of the so-called “Clean Missouri” constitutional amendment passed by voters in November of 2018. The effect of the amendment was to limit lobbyist gifts to lawmakers, reduce campaign contributions, and create a new process when it comes to redistricting. The redistricting portion has been the subject of much discussion, as it requires a non-partisan state demographer. According to the original amendment passed in 2018, the demographer is selected by the State Auditor to redraw district lines, determining how the state is divided into legislative districts.  Many have argued that although the demographer is supposed to be non-partisan, appointing them via nomination by the state auditor is not.

Hegeman’s proposal makes several changes to Clean Missouri, including a complete ban on all lobbyist gifts (current law allows gifts no greater than $5.00), reducing the amount House and Senate candidates may receive in campaign contributions, and eliminating the state demographer position in lieu of independent bipartisan citizens commissions. Opposition to Hegeman’s proposal came from Senate democrats who argued the measure changes the will of the voters who overwhelmingly voted in favor of the Clean Missouri ballot initiative. Hegeman countered that even if the legislature passed his resolution, it still must be approved by the voters, therefore their will would be upheld. The bill passed the Senate along party lines, except for Republican Senator Lincoln Hough who voted no.

As the question of how the state is going to pay for its infrastructure needs continues to loom, the Senate brought up SB539 for debate last month. The bill, sponsored by Senator Doug Libla, would increase the tax on gasoline from 17 cents to 19 cents per gallon, and the tax on diesel from 17 cents to 23 cents per gallon. The measure also calls for the tax rate to be adjusted annually for inflation. It was clear that the bill does not have a path forward unless concessions are made to meet the demands of the conservative caucus. As in years past, we don’t see this bill getting past the conservative caucus unless there is a tax offset included.  We expect it will be brought up again for debate.

The Missouri House recently passed bills dealing with professional licensing reciprocity. House Bills 1511 and 1452 will allow for relocating military spouses to apply for an occupational license in Missouri, provided they hold a valid license in another state. The legislation is a priority for Governor Mike Parson who recently praised the action of the House. Recognizing the fact that military families face tremendous burdens, Parson said, “Military spouses face considerable challenges when they relocate with their active duty partner, and finding a job in their licensed profession should not be one of them.” Professions affected in the bill include architects, landscape architects, land surveyors, professional engineers and numerous health related professions. The measures passed through the House on a vote of 151-2 will now head to the Senate for additional consideration.

As a member of ASA, you should be receiving weekly legislative updates that include updates on ASA’s legislative agenda along with other legislative news from the week. If you are not receiving these important updates, please reach out to Susan Winkelman to let her know. Thank you, Nikki Strong.

The Capitol is busy again as lawmakers returned to Jefferson City on January 8 for the start of the 2020 legislative session. Senators and Representatives hit the ground running, filing over 1500 bills and resolutions thus far.

Funding for transportation infrastructure remains a high priority again this session. There have been many bills filed taking many different approaches and filed by many different legislators in the House and Senate.  One of the bills filed which started out moving quickly was SB539, which increases the gas tax from 17 cents to 19 cents per gallon, and the tax on diesel from 17 cents to 23 cents per. After implementation, the tax rate will be adjusted annually for inflation. The bill made quick progress initially, being heard by the Senate Transportation, Infrastructure and Public Safety Committee and voted out the same day. We expect the bill to slow to a snail’s pace now because of opposition by a handful of senators. It remains to be seen how which bill will advance on this topic.

Governor Mike Parson appeared before a joint session of the Missouri House and Senate on Wednesday, January 15 to deliver the annual State of the State address to lawmakers. Parson took the opportunity to talk about accomplishments since taking office, along with laying out his legislative agenda and budget for the next year. In his speech, the governor spoke at length about transportation and workforce development – which continue to be items he has focused on since taking office. The governor also spent time talking about the ongoing rise in violent crime in the major cities across the state. His proposal focused on increased protection for witness and victims of violent crime, tougher penalties for those crimes and an increase in available mental health services.

Parson’s budget proposal for Fiscal Year 2021 includes $50 million to continue the transportation cost-share program, a $5 million increase for rural broadband development, and $10.1 million to continue the port capital improvement program. There was also $4.4 million allocated to continue the Fast Track program, which is designed to encourage adults to pursue certificates, degrees, or industry-recognized credentials in high-demand occupations. K-12 education also saw a $12 million increase for the Foundation Formula in the governor’s proposal, as well as a $10 million increase in student transportation funding.

Democrats in the legislature were not totally enamored with Parson’s proposals. In their response to the State of the State address, Senate Minority Floor Leader Gina Walsh said, “This was a disappointing and, frankly, troubling speech. More than 100,000 kids have had their health care taken away by Governor Parson’s administration, and today, he continued to ignore this crisis. Meanwhile, his party continues to stand in the way of common-sense changes to prevent gun violence, address the opioid epidemic, and make college more affordable. The biggest issues facing Missouri were essentially ignored by Governor Parson today, and that is incredibly unfortunate for middle-class families.”

As the legislative session continues, House and Senate priorities, along with Governor Parson’s initiatives, will begin to sort their way through the process. Of the many bills that are filed, very few will make it across the finish line as was evidenced last year when only 102 bills and resolutions were passed. The session runs through May 15.

We will continue to keep you updated on issues and happenings in Jefferson City and around the state that impact ASA and the construction industry. We appreciate the opportunity to represent you. Nikki Strong, Strong Consulting Group LLC

Capitol staffers have been busy this month as legislative pre-filing has begun in preparation of the next legislative session which begins on January 8 at noon. Legislators began the bill prefiling process on December 1 with nearly 850 bills and resolutions having been filed as of the writing of this newsletter. Senate and House members will continue filing bills until midway through the session where nearly 2,000 bills are expected to be filed once the deadline for filing closes.

Several bills have already been filed that would raise the state fuel tax in order to fund road and bridge construction. In addition, there is a proposed constitutional amendment filed which would allow MoDOT to establish toll roads in the state. Another proposal would put a portion of increased motor vehicle registration fees into the state road fund. These initiatives have a tough road ahead of them and only time will tell whether they land on the governor’s desk. Similar legislation has been met with stiff opposition from many conservative legislators in recent years and they have signaled their intent to block any proposed tax increases once again this session.

The Senate Interim Committee on Tax Credit Efficiency and Reform has held four hearings since late summer to examine the many tax credit programs in the state. Many view the tax credits as a necessary trigger for economic development, construction, and job creation, while others say the process is inefficient and lacks accountability. The committee was slated to wrap-up their review of the many programs in early December, but it was recently announced they will continue to hold hearings throughout the legislative session. Senator Cindy O’Laughlin, chairwoman of the committee, said she wants the committee to continue their work looking into how tax credits are processed and how their value is determined.

In other political news, a recent report by State Auditor Nicole Galloway has found that the Black Mountain Community Improvement District (CID) violated state law with their expenditure of $296,937 of taxpayer money. The CID funds were intended to be spent on infrastructure, storm water controls and related construction. The audit showed several violations of state law, but the most glaring was an expense of more than $100,000 for equipment purchases, repairs and operational expenses to a convenience store owned by three members of the CID board. Restrooms were remodeled, new fuel pumps were purchased, and a new walk-in beer cave was installed at the store. Six months after the work was completed, the convenience store was sold to new owners. The taxpayer dollars used for the work were not reimbursed. Current board members are working with law enforcement on the findings of the audit. The Black Mountain CID is near Van Buren, in Carter County, Missouri.

Repairs and renovations on the exterior of the state Capitol continue to progress with an anticipated completion date near the end of 2020. However, the refurbished statue of Ceres, the Roman goddess of agriculture, whose likeness sat atop the Capitol for 94 years is causing some controversy. The statue was removed last year and sent to Chicago for repairs and is now back in Jefferson City where it is slated to be placed on top of the dome once again. Representative Mike Moon didn’t want to see Ceres returned to the dome due to religious reasons and has asked Governor Mike Parson to intervene. Moon sent a letter to the governor calling the statue a “pagan god” and wanted Parson to direct the Capitol Commission to not return the statue to the dome. Despite Rep. Moon’s request Ceres was returned to the dome of the Capitol on December 17.

As mentioned earlier, the legislative session is slated to begin on Wednesday, January 8 and will run through May 15. Once the legislative session starts and legislation begins to move, weekly legislative updates will be sent to the ASA members updating you weekly on ASA’s legislative priorities.

Nikki R. Strong
STRONG CONSULTING GROUP, L.L.C.