Lathrop GPM Consulting LLC
314 East High Street
Jefferson City, MO 65101

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2022 Session Concludes, Governor Now Must Take Action
The 2022 Missouri General Assembly adjourned its regular session on Friday, May 13. Per the state’s Constitution, the session will officially adjourn sine die on May 30. At that point, all legislation that has been “truly agreed to and finally passed” by the Legislature will be transmitted to Governor Mike Parson for his action. The Governor has 45 days upon receiving the bills to act, which is July 15. The Governor may either sign a bill into law, veto the legislation, or take no action which allows the bill to go into effect. If vetoed, the General Assembly can override the Governor’s objection during its September 14 veto session.
 
All legislation will take effect on Aug, 28, 2022, unless a different date is specified in the legislation.
 
SEVERAL PRIORITY BILLS REACH GOVERNOR’S DESK IN LAST WEEK OF SESSION
In a session that was politically and ideologically divisive, House and Senate leaders successfully passed some of their key priorities. Much of the first three months of the year was dominated by debate over the redistricting map for Missouri’s eight U.S. Congressional districts. The Senate’s Conservative Caucus, a caucus of seven members of the 24-member Republican majority caucus, pushed hard for passage of a Congressional map that they believed would result in seven Republicans and one Democrat for the Missouri delegation. The current Missouri delegation consists of six Republicans and two Democrats. The House sent two separate versions of the map and the Senate debated numerous versions to which hours of debate and lengthy filibusters blocked any compromises. However, on the second to last day of the session, the Senate found a path to pass a Congressional map that was agreeable by the House, and it has been sent to the Governor’s desk. The map as passed is expected to keep the Missouri Congressional makeup the same with six Republicans and two Democrats.
 
Also, the General Assembly passed legislation that is referred to as “election integrity” to which the state will once again require photo identification to vote, block outside funding for election authorities (often referred to as “Zuckerbucks”), require actual paper ballots and no touch screen voting machines, and allow two-week excuse-free absentee voting at county clerks’ offices with a photo i.d.
 
Overall, 43 non-budget bills were passed in 2022, which is significantly fewer than the average 155 bills per session. Some other major bills to pass include eminent domain reforms, reforms to funding of the Kansas City Police Department, COVID restrictions related to visitation policies at medical facilities, tax credits using federal funds for all taxpayers, K-12 education reading readiness, and funding of public charter schools.

BUDGET BILLS APPROVED; NEW PROGRAMS CREATED WITH FEDERAL ARPA FUNDS
With little fanfare, the House and Senate budget leaders found compromise on the state operating budget for Fiscal Year 2023 and passed $12 billion worth of federal funds for numerous special projects and grants for items such as rural broadband, public water systems, new state crime lab, K-12 education and transportation, and higher education. Overall, the total state spending authorized by the 2022 appropriations bills exceeds $49 billion, while the current budget year with supplemental appropriations exceeded $40 billion. In addition to the federal American Recovery Plan (ARPA) dollars, the state’s general revenue collections (primarily income and sales tax) are up $2.5B from last year. In addition to the two supplemental bills passed this year, 16 general operating budget bills were passed for FY 23 without much uncertainty. The bill that most people focused on was HB 3020 that appropriated the $2.9B in ARPA money. Major items in the budget included:

  • $500M set aside for a tax rebate program for qualifying Missourians;
  • $2.5B for expanded eligibility under the state Medicaid program;
  • $925M for Medicaid payments to increase payments to providers serving people with developmental disabilities, nursing home patients, and those hoping to remain at home;
  • $461M for construction projects at the 13 four-year university campuses, community colleges, and State Technical College;
  • $411M for water and wastewater infrastructure upgrades including the abatement of lead in drinking water;
  • $300M for the state capitol building’s interior work;
  • $250M to expand broadband internet access for homes and businesses in remote locations;
  • $214M to fully fund the state’s share of public school transportation costs.
 
Issues to watch moving into FY 23 include the state’s general revenue numbers and the ability to process and allocate all the ARPA funding in one year and the need to further appropriate in FY 24. 

KEY UPCOMING DATES
  • June 30, 2022 – Last day for the Governor to Sign or Veto Appropriation Bills
  • July 1, 2022 – First day of Fiscal Year 2023
  • July 14, 2022 – Last day for the Governor to Sign or Veto Bills
  • August 2, 2022 – MO Primary Election
  • August 28, 2022 – Date Most Legislation Takes Effect (unless another date is specified)
  • September 14, 2022 – Veto Session
  • November 8, 2022 – MO General Election 
TRULY AGREED TO AND FINALLY PASSED BILLS
SENATE BUDGET LANGUAGE ADDED FOR ANIMAL ABUSE INVESTIGATIONS
The Senate Floor Substitute for House Bill 3020 (Smith, R-Carthage) included new language for the Missouri Department of Public Safety in the amount of $800,000 for a nonprofit organization located in Jackson County, MO to partner with law enforcement officers, local governments and pet shelters to assist with investigations and help create prosecutable cases that ultimately lead to real accountability for users. This language is clearly added for the hiring of private legal counsel and was added by amendment with little fanfare and no public discussion. The funding source for this project will come from federal American Rescue Plan funds. 

LARGE ANIMAL VETERINARY SCHOLARSHIP FULLY FUNDED
Once again, the Missouri General Assembly fully funded the Large Animal Veterinary Student Loan Program within the Missouri Department of Agriculture in the amount of $180,000. These funds will fund existing scholarships for students attending the University of Missouri School of Veterinary Medicine. The language was included as part of House Bill 3006 (Smith, R-Carthage) in section 6.015 RSMo.

HOUSE BILL 1662 – RESTRICTIONS ON REAL PROPERTY
This bill enacts provisions relating to restrictions on real property.

ZONING REGULATIONS ON HOME-BASED WORK BY POLITICAL SUBDIVISIONS
The bill creates new provisions governing the regulation of home-based work, as defined in the bill, by certain political subdivisions. Specifically, counties, municipalities, and townships are prohibited from enacting a zoning ordinance or regulation that:

(1)       Prohibits mail order or telephone sales for home-based work;
(2)       Prohibits service by appointment within the home or accessory structure;
(3)       Prohibits or requires structural modifications to the home or accessory structure;
(4)       Restricts the hours of operation for home-based work; or
(5)       Restricts storage or the use of equipment that does not produce effects outside the home or accessory structure.

Furthermore, any such zoning ordinance or regulation may not explicitly restrict or prohibit a particular occupation.

These provisions do not supersede any deed restriction, covenant or agreement restricting the use of land nor any master deed, by law or other document applicable to a common interest ownership community.

LOCAL RESTRICTIONS ON HOME-BASED BUSINESSES
This bill provides that a political subdivision shall not prohibit the operation of a no-impact, home-based business or require a person to apply for any permit or license to operate such a business. However, a political subdivision may establish reasonable regulations on such businesses that are narrowly tailored for the purpose of protecting public health and ensuring the businesses are compliant with state and federal law.

HOUSE BILL 1720 – AGRICULTURAL ECONOMIC OPPORTUNITIES
This bill modifies the provisions relating to agricultural economic opportunities.

PET BREEDERS WEEK
The bill designates the second full week of March as “Pet Breeders Week”.

JOINT COMMITTEE ON RURAL ECONOMIC DEVELOPMENT
The bill establishes the Joint Committee on Rural Economic Development, which shall be composed of five members of the Senate to be appointed by the President Pro Tem and five members of the House of Representatives to be appointed by the Speaker of the House of Representatives. The Committee shall investigate and examine issues relating to the economic development of rural areas of the state, as described in the bill. The Committee may submit a report of its activities to the General Assembly, which shall include any recommendations for legislative action or administrative and procedural changes.

MEAT PROCESSING FACILITY INVESTMENT TAX CREDIT
Currently, the Meat Processing Facility Investment Tax Credit for the expansion or modernization of meat processing facilities is set to expire on December 31, 2021. The bill extends the tax credit until December 31, 2024. The bill also limits the tax credit to taxpayers who own a meat processing facility in the state and employ less than 500 people at all processing facilities nationwide.

SALES TAX EXEMPTIONS FOR FARM EQUIPMENT
The bill specifies that sales of certain farm machinery and equipment, including utility vehicles, used for any agricultural purpose are exempt from sales tax. Additionally, this bill provides and alters definitions for utility vehicles and farm tractors.

HOUSE BILL 2090 – PAYMENT OF FUNDS FROM THE STATE TREASURY
INCOME TAX CREDIT (Section 1)
For the 2021 tax year, this bill allows a qualified taxpayer, as defined in the bill, to claim a one-time nonrefundable tax credit in the amount equal to the lesser of each taxpayer's Missouri income tax due for the tax year ending in 2021, or $500 if filing an individual return, or $1,000 if filing married combined return.

The Department of Revenue shall automatically adjust each qualified taxpayer's return for the 2021 tax year and shall issue refunds if necessary to qualified taxpayers.

Among other qualifications described in the bill, in order to be a qualified taxpayer under this provision, a person must have a Missouri adjusted gross income of less than $150,000 if filing an individual tax return, or less than $300,000 if a married couple filing a combined income tax return.

The Director of Revenue shall not authorize more than $500 million in tax credits under the bill. If the total amount of tax credits claimed by qualified taxpayers exceeds $500 million, the amount of the credit shall be prorated.

VACCINATION REQUIREMENTS (Section 2)
The bill prohibits requiring any state employee to receive a vaccination against COVID-19 as a condition of commencing or continuing employment.

The bill contains provisions that do not apply to any state employee who is employed by the following facilities:

(1)       Any facility that meets the definition of hospital in Section 197.020;
(2)       Any long term care facility that licensed under Chapter 198;
(3)       Any entity that meets the definition of facility in Section 199.170; or
(4)       Any facility certified by the Centers for Medicare and Medicaid Services.

HOUSE BILL 2149 – PROFESSIONAL LICENSING
This bill modifies several provisions relating to professional licensing.

EXEMPTIONS FOR PROFESSIONAL LICENSING
A professional who has a current license to practice his or her profession from another state, commonwealth, territory, or the District of Columbia shall be exempt from Missouri licensure requirements if the professional:

(1)       Is an active duty or reserve member of the Armed Forces, a member of the National Guard, a civilian employee of the U.S. Department of Defense (DOD), an authorized contractor under federal law, or a professional otherwise authorized under the DOD;
(2)       Practices the same occupation or profession for which he or she holds a current license; and
(3)       Is engaged in the practice of a profession through a partnership with the federal Innovative Readiness Training program within the DOD.

This exemption shall only apply while:
(1)       The professional's practice is required by the program pursuant to military orders; and
(2)       The services provided by the professional are within the scope of practice for individual's respective profession in Missouri.

This provision has an emergency clause.

PHYSICIAN AND PHARMACIST PRESCRIPTION AND DISPENSATION OF IVERMECTIN AND HYDROXYCHLOROQUINE
This bill prohibits the State Board of Registration for the Healing Arts from taking administrative action against a certificate of registration or authority, permit, or license required by this Chapter for any person due to the lawful dispensing, distributing, or selling of ivermectin tablets or hydroxychloroquine sulfate tablets for human use in accordance with prescriber directions. A pharmacist cannot contact the prescribing physician or the patient to dispute the efficacy of ivermectin tablets or hydroxychloroquine sulfate tablets for human use unless the physician or patient inquires of the pharmacist about the efficacy of ivermectin tablets or hydroxychloroquine sulfate tablets.

SENATE BILL 672 – WORKFORCE DEVELOPMENT
This bill modifies provisions relating to workforce development.

JOINT COMMITTEE ON RURAL ECONOMIC DEVELOPMENT
This bill establishes the Joint Committee on Rural Economic Development, which shall be composed of five members of the Senate to be appointed by the President Pro Tem, no more than three of which shall be from the majority party, and five members of the House of Representatives to be appointed by the Speaker of the House of Representatives, no more than three of which shall be from the majority party. The Committee shall investigate and examine issues relating to the economic development of rural areas of the state, as described in the bill. The Committee may submit a report of its activities to the General Assembly, which shall include any recommendations for legislative action or administrative and procedural changes.
DID NOT PASS BILLS
REGULATORY SANDBOX ACT DOESN’T PLAY OUT
House Bill 2587 (Riley, R-Springfield) and Senate Bill 1068 (Hoskins, R-Warrensburg) were bills to assist businesses and entrepreneurs by identifying state laws or regulations that could be waived for participating businesses with innovative products during a two-year period. HB 2587 passed the House on April 6 and was debated on the Senate floor on May 11 while a dozen Senate amendments were added to the bill. The bill was then referred to the Senate Governmental Accountability and Fiscal Oversight Committee and died. SB 1068 was voted “do pass” by the Senate Small Business and Industry Committee on March 22 but did not advance.

INITIATIVE PETITION REFORM BILLS FAIL
At least 17 House bills and three Senate bills that would have asked voters statewide to amend the Missouri Constitution’s current initiative petition process did not pass the General Assembly. As an example, House Joint Resolution 91 (Eggleston, R-Maysville) would require sponsors of initiative petitions proposing Constitutional amendments to collect signatures in each of Missouri’s eight Congressional districts. Then, when placed on the statewide ballot, a two-thirds majority vote of the people would be required for approval of a new amendment. Currently, signatures are required in six of the eight Congressional districts and a simple majority of voters can approve such amendments. HJR 91 passed the House on March 10 and was heard on April 13 by the Senate Local Government and Elections Committee where the bill died. 

CYBERSECURITY LEGISLATION TANKS
Senate Bill 674 (Hoskins, R-Warrensburg) and House Bill 2436 (Houx, R-Warrensburg) were bills creating a Department of Economic Development grant program requiring a 10 percent match for employers to enhance cybersecurity in their businesses. SB 674 died on the Senate Informal Perfection Calendar. HB 2436 was mired in a House Rules Committee since mid-February. 

EFFORTS TO DELETE OR DELAY STATE GAS TAX INCREASE FAIL
House Bill 1594 (Walsh, R-Ashland), House Bill 1906 (Shaul, R-Imperial), House Bill 2758 (Evans, R-West Plains), House Bill 2801 (Schwadron, R-St. Charles), House Bill 2813 (Fitzwater, R-Holts Summit), House Bill 2884 (Mayhew, R-Crocker), House Bill 2888 (Mayhew, R-Crocker), Senate Bill 782 (Moon, R-Halltown), Senate Bill 811 (Eigel, R-Weldon Spring), Senate Bill 1149 (White, R-Joplin). Multiple bills were filed to delete or to place on holiday the state’s new 2.5 cents per gallon motor vehicle fuel tax which went into effect in October 2021. The tax is set to increase each year for four more years for a total of 12.5 cents hike. None of the bills passed. Advancing the furthest, HB 1594 and HB 2758 received hearings in House committees but died on the House Informal Perfection Calendar. HB 1594 would have repealed the tax increase. HB 2758 would have simplified requirements for vehicle owners to receive gas tax credits.
 
House Bill 1657 (Hicks, R-Dardenne Prairie), House Bill 1588 (Haden, R-Mexico), and Senate Bill 697 (Gannon, R-DeSoto) were bills that would prohibit villages, towns, cities, and counties from regulating dogs in a breed-specific manner. However, for instance, a village, town, city, or county could still prohibit dogs from running at large. SB 697 was voted “do pass” by the Senate Local Government and Elections Committee on March 9 but did not move forward. The House bills were heard by the House Local Government Committee in late January, voted “do pass” in late February, then reconsidered and voted “do pass” on March 3 but died in a House Rules Committee.
 
House Bill 1977 (Kelley, R-Lamar) would allow grade A retail raw milk or cream produced in Missouri to be sold at grocery stores, restaurants, soda fountains, and similar establishments if the product is clearly labeled with a specified warning label. On April 25, the House passed HB 1977. The bill was referred to the Senate Agriculture, Food Production and Outdoor Resources Committee on May 10 where it died.
 
LEGISLATION RELATING TO CONFISCATION OF ANIMALS DIES
House Bill 2204 (Knight, R-Lebanon) and Senate Bill 847 (Eslinger, R-Wasola) were bills involving confiscation of neglected or abused animals. The House bill was voted “do pass” by the House Agriculture Policy Committee in mid-February but died in a House Rules Committee. SB 847 did not receive a Senate committee hearing.
 
LEGISLATION AFFECTING ANIMAL RESEARCH DIES
House Bill 2446 (Hicks, R-Defiance) and Senate Bill 980 (Beck, D-St. Louis) are bills expanding the offense of animal abuse to any person who causes injury to the sexual organs of a female dog or causes pain to a female dog during artificial insemination. HB 2446 also would require any publicly funded university using animals in research to post on its website a written report on the research before Dec. 31 annually.
Neither bill received a committee hearing.

ANIMAL CHIROPRACTOR LEGISLATION STALLS
House Bill 2739 (Veit, R-Wardsville) would define an animal chiropractic practitioner as someone who is a licensed veterinarian or licensed by the Board of Chiropractic Examiners and who is certified by a veterinary chiropractic organization. The bill removed "animal chiropractic" from the definition of veterinary medicine and it allowed an animal chiropractic practitioner to engage in animal chiropractic without being considered practicing as a veterinarian. The bill did not receive a House committee hearing.

RURAL WORKFORCE DEVELOPMENT ACT FAILS
Senate Bill 675 (Brown, R-Rolla) and House Bill 1885 (Pollitt, R-Sedalia) establishes the “Missouri Rural Workforce Development Act. This legislation attempts to provide capital investments in business located in rural areas. The legislation creates a tax credit program to which investment companies must deploy and maintain investments in rural businesses for the life of the program to receive state tax credits. This legislation has become controversial of the past two sessions as it has been linked to several other state tax credit programs. This legislation was ultimately passed out of the Senate as part of the large omnibus agriculture bill (HB 1720), but was stripped in a conference committee.

Senate Bill 1058 (Brown, R-Rolla) and House Bill 1586 (Murphy, R-St. Louis County) preempts the entire field of legislation concerning the practice of veterinary medicine and political subdivisions shall be preempted from enacting, maintaining, or enforcing any order, ordinance, rule, regulation, policy, or similar measure that prohibits, restricts, limits, regulates, controls, directs, or interferes with the practice of veterinary medicine. Both bills were passed out of committee this session. The language was attached to House Bill 2149 as an amendment in the Senate, but the language received a troublesome addition to which the proponents were unable to accept. Sen. Doug Beck (D-St. Louis) included the language “medically necessary” to which may have created an unintended consequence if the bill were signed into law. Thus, the Missouri Veterinary Medical Association Board elected to strip this language from HB 2149.

RIGHT TO REPAIR FARM MACHINERY DOES NOT ADVANCE
Senate Bill 1086 (Cierpiot, R-Blue Springs) and House Bill 2402 (Hovis, R-Cape Girardeau) allows individuals and businesses to have access to information from manufacturers in order to repair products. Under these bills, owners of products, which is defined in the act as any farm machinery, construction machinery, or forestry machinery, purchased or used in Missouri and independent repair providers shall have the right to access the same diagnostic and repair information that manufacturers supply to authorized repair providers. Product owners shall also have the right to purchase service parts, documentation, and tools from manufacturers in the same manner and time as those parts are given to authorized repair providers. House Bill 2402 was passed out of the House Agriculture Policy Committee on a narrow vote and did not advance in the House Rules Committee. The Senate companion bill received a public hearing.
 
MANDATORY REPORTING OF ABUSE BY VETERINARIANS FAILS
Senate Bill 1182 (Gannon, R-DeSoto) would require veterinarians, animal control officers, and animal humane investigators to be mandatory reporters in cases of abuse and neglect of children, the elderly, and other vulnerable persons. The bill also requires the “Missouri Animal Control Association” establish a hotline to receive such reports. This legislation was referred to the Senate Seniors, Families, Veterans and Military Affairs Committee in April, but the hearing was later cancelled at the request of the bill sponsor.
 
PUBLIC NUISANCE SUIT REFORM FAILS TO PASS
Senate Bill 1174 (Eslinger, R- Wasola) and HB 2807 (Hardwick, R-Waynesville) were bills that would address a cause of action for a public nuisance. Subject to exceptions in the bill, the state or a political subdivision may bring the public nuisance action and may only do so by a government attorney. An individual could still bring a public nuisance action only if they can show a special injury. The effort to reign in the use of the public nuisance action made it to committee but never received a hearing.
Lathrop GPM Consulting LLC
314 E. High Street
Jefferson City, MO 65101
T: +1 573.469.4172