MORTGAGE BANKERS ASSOCIATION OF MISSOURI
101 East High, Jefferson City, Missouri 65101 Phone: (573) 634-3244 - Fax: (573) 634-7429
MISSOURI LEGISLATIVE UPDATE – February 18, 2011
TO: MORTGAGE BANKERS ASSOCIATION OF MISSOURI
HEARINGS FOR THE WEEK OF FEBRUARY 21st
MONDAY - 02/21/11
House-Workforce Development and Workplace Safety
12:00 PM, HR 6
Public hearing:
HB 434 Nolte - 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 injury
or death.
Executive session may be held on any matter referred to the committee.
House-Rules
Upon afternoon adj, HR 4
Executive session will be held on the following bills:
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 136 Day - Allows a spouse of an active member of the United States Armed Forces to be eligible
for unemployment benefits if accompanying the spouse in the event of a military transfer.
HB 364 Parkinson - Changes the determination of a defendant's liability in a tort action for damages by
specifying that the liability of each defendant for compensatory or punitive damages must be several and
cannot be joint.
Executive session may be held on any matter referred to the committee.
House-Insurance Policy
5:00 PM or Upon evening adj, HR 1
Public hearing:
HB 414 Richardson - Requires a title agency or agent to have a physical place of business in Missouri
substantially devoted to conducting the title insurance business or be employed by a licensed title insurer
or agency.
Executive session may be held on any matter referred to the committee.
TUESDAY - 02/22/11
House-Veterans
8:30 AM, HR 1
Public hearing:
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HB 239 Kander - Establishes the Veteran Workforce Act which requires the Office of Administration
to develop rules and regulations ensuring a uniform hiring preference for veterans, disabled veterans,
and their spouses.
Executive session may be held on any matter referred to the committee.
House-General Laws
12:00 PM, HR 4
Public hearing:
HB 490 Diehl - 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.
Executive session may be held on any matter referred to the committee.
Senate-Small Business, Insurance and Industry
1:00 PM, SCR 1
SB 110 Crowell - Prohibits the state minimum wage from exceeding the federal minimum wage.
Executive session may follow.
Senate-Commerce, Energy and the Environment
3:00 PM, Senate Lounge
SB 188 Lager - Modifies the law relating to the Missouri Human Rights Act and employment
discrimination.
WEEK SEVEN OVERVIEW – PRO-BUSINESS AGENDA MOVING FORWARD
This week the Missouri House of Representatives spent very little time on floor debate and focused their
efforts on the committee process. The various appropriation sub-committees continued their work in
crafting a preliminary fiscal year 2012 state budget. On Thursday, February 17, 2011 the House gave
first round approval of legislation that would return control of the St. Louis Police Department to the
City. Currently, the State of Missouri controls the St. Louis Police force through an independent
commission appointed by the Governor.
The Missouri Senate debated several bills this week and passed legislation relating photo identification
requirements for voters; allowing homeowners the option to install fire sprinklers in single family homes
and phasing out the state corporate franchise tax. Numerous pro-business bills continue to move
through the legislative process in both chambers and we expect more debate in the near future on
taxation, workers compensation; employment law and minimum wage.
MODERNIZATION OF CREDIT UNION STATUTES
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
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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.
AUTOMATED TELLER MACHINE FEES FOR FOREIGN TRANSACTIONS -UPDATE
On Wednesday, February 9, 2011 the House Financial Institutions Committee held a public hearing on
House Bill 83 sponsored by Representative Jerry Nolte (R-Gladstone). HB 83 specifies that an
agreement to operate or share an automated teller machine (ATM) cannot prohibit the owner or operator
of the machine from imposing an access fee or surcharge on an individual conducting a transaction using
a foreign bank account. Currently, foreign banks may charge fees but domestic ones cannot. Testifying
in support was the Missouri Bankers Association and the Missouri Credit Union Association. No
testimony was received in opposition and the committee took no further action.
On Wednesday, February 16, 2011 the House Financial Institutions Committee held an executive
session and adopted a House Committee Substitute for HB 83. The Committee then voted 16-0 to
“do pass” the bill with consent status.
LINKED DEPOSIT PROGRAM SUNSET REPEAL -UPDATE
On Wednesday, February 9, 2011 the House Financial Institutions Committee held a public hearing on
House Bill 109 sponsored by Representative Don Wells (R-Cabool). Currently, the State Treasurer is
not able to invest in any linked deposit, the value of which is to be lent to a recipient other than an
eligible water supply system or an eligible student borrower, after December 31, 2015, or invest in any
linked deposit, the value of which is to be lent to any new eligible facility borrower, after January 1,
2020. This bill repeals this provision allowing the State Treasurer to invest in these deposits after those
dates. Testifying in support was the State Treasurer’s office; Missouri Bankers Association and Farm
Credit Services. No testimony was received in opposition and the committee took no further action.
On Wednesday, February 16, 2011 the committee held an executive session and voted 16-0 to send
the bill from committee “do pass with consent status”.
TELLER MACHINES ACCESS FEE
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.
BRICKS AND MORTAR REQUIREMENT FOR TITLE AGENCIES
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.
EMPLOYER/EMPLOYEE RELATED ISSUES
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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.
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.
UNIFORM INTERSTATE FAMILY SUPPORT ACT
The House Judiciary Committee on February 16, 2011 held a hearing and approved House Bill 260
sponsored by Representative Stan Cox (R-Sedalia). The bill changes state law to enact changes to the
Uniform Interstate Family Support Act to make it consistent with changes adopted by the National
Conference of Commissioners on Uniform State Laws. It is intended to make it easier to deal with
family support cases in multistate and international jurisdictions. The Chairman of the Missouri Bar
Family Law Section testified in favor of the bill, and there was no opposition.
Following the hearing the committee voted to approve the bill for consideration on the consent calendar.
REDUCES CORPORATE TAXES, INCREASES SALES TAXES
The House Ways and Means Committee on February 17, 2011 held a hearing on House Bill 408
sponsored by Representative Andrew Koenig (R-Winchester). This bill reduces the corporate income tax
rate from 6.25% to 3.125% of the Missouri taxable income beginning January 1, 2012; authorizes an
additional sales tax of .4939% to be deposited into the General Revenue Fund beginning July 1, 2012;
and eliminates the corporate franchise tax beginning January 1, 2013. Associated Industries of Missouri,
the Missouri Chamber of Commerce and Industry, the Greater Kansas City Chamber of Commerce, and
the Missouri Restaurant Association testified in support of the bill. There was no opposition and the
committee took no further action on the bill.
UNIFORM APPLICATION FORMS FOR GROUP HEALTH POLICIES
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
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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.
DENIAL OF UNEMPLOYMENT BENEFITS FOR OVERPAYMENT PENALTIES
On Tuesday, February 15, 2011 the Senate Small Business, Insurance and Industry Committee held a
public hearing on Senate Bill 10 sponsored by Senator Scott Rupp (R-Wentzville). Under SB 10,
claimants are denied unemployment benefits for any week the claimant has an outstanding overpayment
penalty. Testifying in support were the Missouri Department of Labor and Industrial Relations;
Missouri Chamber of Commerce and Industry and Associated Industries of Missouri. No testimony was
received in opposition and the committee took no further action.
SENATE COMMITTEE CONSIDERS RIGHT TO WORK-UPDATE
The Senate Committee on General Laws took up the “Right-To-Work” issue in a hearing on February 8,
2011 on Senate Bill 1 sponsored by Senator Luann Ridgeway (R-Smithville). Senator Jane Cunningham
(R-Chesterfield), the committee chairman, announced that testimony on Senate Bill 1 would be
considered valid also for Senate Bill 197, also sponsored by Senator Ridgeway, as well as Senate Bill
206 sponsored by Senator Chuck Purgason (R-Caulfield), which will be heard next week.
Alternating testimony from representatives of groups supporting and opposing the bill was heard during
a lengthy hearing attended by a crowd almost filling two hearing rooms in the Capitol. Supporting
testimony came from business organizations, small business owners, and individuals objecting to being
required to hold union membership to hold jobs. More passionate testimony in opposition came from
labor organizations and business/labor consortiums that firmly assert that their members as well as the
state of Missouri is vastly better off under the current legal arrangement. Questions and debate among
committee members on both sides of the issue served to solidify opposing positions.
An industrial site selection consultant testifying for information told the committee that all of his clients
are deeply interested in labor market conditions and 100% of manufacturing clients want to operate in
non-union conditions. He stated that 75% of his clients initially prefer a right- to- work state and 50% of
those seeking a manufacturing site classify right-to-work as a pass/fail issue. He suggested that right-towork presents a challenge for the state since there is no chance to present other favorable attributes to
the 50% of companies that “are not looking at you”. Also testifying for information was the Director of
the Missouri Department of Labor and Industrial Relations who stated that the Nixon administration is
opposed to right-to-work.
On February 15, 2011 the committee opened a hearing on Senate Bill 206 sponsored by Senator
Chuck Purgason (R-Caulfield). The committee chairman Senator Jane Cunningham reminded the
committee that all testimony from the hearing last week on Senate Bill 1 would apply also to
Senate Bill 206 and that it was not necessary to testify again. Whereupon Mr. Ron Calzone came
forward to testify, stating that he had a unique perspective that wasn’t presented before. Senator
Cunningham directed him to submit his testimony in writing. Then the committee went into
executive session and adopted Senate Committee Substitute for Senate Bills 1 and 206. (These bills
do not include a referendum vote.) The committee then voted the substitute bill do-pass by a vote
of 6-2.
SENATE PASSES CAP AND PHASE OUT OF CORPORATE INCOME TAX
On Tuesday, February 15, 2011 the Missouri Senate voted 28-4 to third read and pass Senate Bill 19
sponsored by Senator Eric Schmitt (R-Glendale). SB 19 caps corporate franchise tax liabilities at the
amount of each corporation's tax liability for the 2010 tax year. If a corporation did have a corporate
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franchise tax liability in 2010 because such corporation was not doing business within the state or did
not exist, such corporation's franchise tax liability will be capped at the amount of such corporation's
franchise tax liability for its first full-year of existence. Beginning January 1, 2012, the corporate
franchise tax rate will be gradually reduced over a five-year period until it is completely phased-out.
Effective January 1, 2016, no corporate franchise tax will be imposed. The bill has been sent to the
Missouri House of Representatives.
DENIAL OF UNEMPLOYMENT BENEFITS FOR OVERPAYMENT PENALTIES
On Tuesday, February 15, 2011 the Senate Small Business, Insurance and Industry Committee held a
public hearing on Senate Bill 10 sponsored by Senator Scott Rupp (R-Wentzville). Under SB 10,
claimants are denied unemployment benefits for any week the claimant has an outstanding overpayment
penalty. Testifying in support were the Missouri Department of Labor and Industrial Relations;
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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