07
October
2022
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10:35 AM
America/Chicago

Legislative Update: Extraordinary session concludes, governor signs bills

The First Extraordinary Session of the Second Regular Session concluded on Tuesday, October 4, 2022, as both chambers adjourned sine die, having passed two bills: 

The House convened on Thursday, September 29, 2022, for floor consideration of the Senate’s income tax proposal (SS SCS SBs 3 & 5).  On Wednesday, the House Budget Committee had conducted a hearing on SBs 3 & 5, adopting three of six amendments presented, and approving a House committee substitute for the bill.  With the governor opposed to expanding the call for extra session to include corporate income tax, when the full House met, it voted down the House committee substitute (HCS SS SCS SBs 3 & 5) and returned to the underlying Senate substitute (SS SCS SBs 3 & 5).  Ultimately, the House approved the Senate bill by a vote of 98 ayes and 32 noes, but the accompanying emergency clause for section 143.021 (permitting it to take effect upon the governor’s signature) was defeated by a vote of 10 ayes and 118 noes.    

On the same day, in a special message to the legislature, Governor Parson modified his original call for the extraordinary session to include fifteen matters in addition to the fourteen matters specified in his proclamation.  Both the Senate and the House had added these additional provisions to their respective agriculture bills during the legislative process. 

On Monday, October 3, 2022, the Senate Appropriations Committee conducted a public hearing on HCS HB 3, which the House had previously passed on September 21, 2022.  On Tuesday, October 4, 2022, both chambers convened, and the Senate proceeded to consideration of HB 3.  A floor amendment to prohibit aliens or foreign businesses from receiving the agricultural tax credits was offered and ruled out of order.  The Senate proceeded to third read and pass HB 3 by a vote of 26 yeas and 3 nays (with five senators absent). 

Thereafter, the presiding officers signed the two Truly Agreed To and Finally Passed bills, which were presented to the governor for his consideration, and both chambers adjourned sine die.  On Wednesday, October 5, 2022, Governor Parson signed SS SCS SBs 3 & 5 and HCS HB 3 into law.  With the emergency clauses on both bills having been defeated, the legislation will take effect ninety days after the adjournment of the extraordinary session (Monday, January 2, 2023).  

1st Extraordinary Session – Truly Agreed To And Finally Passed Bills

SS SCS SBs 3 & 5 (Hough) – Relating to income tax 
09/29/2022 – Truly Agreed To and Finally Passed 
10/04/2022 – Presented to Governor
10/05/2022 – Signed by Governor

  • RESIDENT INDIVIDUALS – TAX RATES (Section 143.011) (Amend)
  • TAX DETERMINED BY RATES IN SECTION 143.011 (Section 143.021) (Amend)

HCS HB 3 (Pollitt) – Relating to agricultural economic opportunities 
10/04/2022 – Truly Agreed To and Finally Passed 
10/04/2022 – Presented to Governor
10/05/2022 – Signed by Governor

  • LAND SURVEYS – LOST CORNERS (Sections 60.301, 60.315, and 60.345) (Amend)
  • WOOD ENERGY PRODUCERS TAX CREDIT (Section 135.305) (Amend)
  • MEAT PROCESSING FACILITY INVESTMENT TAX CREDITS (Section 135.686) (Amend)
  • HIGHER ETHANOL BLEND TAX CREDIT (Section 135.755) (New)
  • BIODIESEL BLEND TAX CREDIT (Sections 135.775 and 135.778) (New)
  • URBAN FARM TAX CREDIT (Section 135.1610) (New)
  • QUALIFIED ROLLING STOCK TAX CREDIT (Section 137.1018) (Amend)
  • SALES TAX EXEMPTION – UTILITY VEHICLES FOR AGRICULTURE (Section 144.030) (Amend)
  • STATE ASSESSMENT FOR COMMODITY MERCHANDISING COUNCIL (Section 275.357) (New)
  • LOCAL LOG TRUCKS AND TRACTORS (Sections 301.010, 301.062, 304.180, and 304.240) (Amend)
  • AGRICULTURAL PRODUCT UTILIZATION CONTRIBUTOR TAX CREDIT – EXPIRATION DATE (Section 348.436) (Amend)
  • SPECIALTY AGRICULTURAL CROPS ACT (Sections 348.491 and 348.493) (New)
  • FAMILY FARMS ACT (Section 348.500)
  • AIR CONSERVATION – ANHYDROUS AMMONIA (Sections 643.050 and 643.079) (Amend) (Section 266.355) (Repeal)
  • NATURAL RESOURCES PROTECTION FUND (Section 643.245) (New)

Committee Hearings

Senate

The Senate Appropriations Committee met on October 3, 2022, and held a public hearing on the following bill:

  • HCS HB 3 (Pollitt) – Relating to agricultural economic opportunities
    Support:  Shannon Cooper (Missouri Cattlemen’s Association, Missouri Forest Products Association, and Railway Supply Institute), Ben Travlos, (Missouri Farm Bureau), Liz Henderson (MO Soybean Association), Tony Benz (Missouri Agri-business Association), Darrick Steen (Missouri Corn Growers Association), Mike Gibbons (POET Biofuels), Chuck Pierce (Associated Industries), Brent Hemphill (Missouri Pork Association)

The committee took action on the following in executive session:

  • HCS HB 3 (Pollitt) – Relating to agricultural economic opportunities
    Do Pass by a vote of 10 to 0

House of Representatives

The House Budget Committee met on September 28, 2022, and held public hearings on the following bills:

  • SS SCS SBs 3 & 5 (Hough) relating to income taxes – Electronic Witness Forms
    Support: Patrick Ishmael (Show-Me Institute), Ray McCarty (Associated Industries of Missouri), Brad Jones (NFIB), Jeremy Cady (Americans for Prosperity)
    Oppose: Jay Hardenbrook (AARP), Jeremy LaFaver (Missouri Budget Project), Otto Fajen (MNEA)
     
  • HB 12 (Smith), relating to income tax and corporate income tax – Electronic Witness Forms
    Support: Ray McCarty (Associated Industries of Missouri), Jeremy Cady (Americans for Prosperity)
    Oppose: Jeremy LaFaver (Missouri Budget Project), Jay Hardenbrook (AARP), Otto Fajen (MNEA)

The committee took action on the following bill in executive session:

  • SS SCS SBs 3 & 5 (Hough) relating to income taxes
    HCA 1 – added a corporate income tax cut (adopted) (rolled into substitute)
    HCA 2 – expanded the framework for adoption tax credits (adopted) (rolled into substitute)
    HCA 3 – referendum clause (defeated)
    HCA 4 – earned income tax credit refundable (defeated)
    HCA 5 – reduced tax on female hygiene products, and diapers from 4+% to 1.225% (adopted) (rolled into substitute)
    HCA 6 (defeated) – increase revenue by eliminating timely filing discount given to vendors for filing sales tax on time

    HCS SS SCS SBs 3 & 5
    Do Pass by a vote of 19 aye, 8 no, 1 present

    Archived Video of Committee Hearing

 

Missouri Bar-Initiated Legislative Proposals – 
Review and Comment on Proposals Submitted by Committees

The Board of Governors of The Missouri Bar has approved two 2022 Bar-initiated legislative proposals for carryover to the 2023 legislative session.  In addition, divisions and committees of The Missouri Bar have submitted six preliminary legislative proposals.  Pursuant to The Missouri Bar’s legislative procedures, those proposals must be published for review and comment by members of The Missouri Bar for a period of thirty days.  The draft proposals and comment links are available on the website of The Missouri Bar, and the review-and-comment period will conclude at 5:00 p.m. on Friday, October 21, 2022.  Following the comment period, the members of the originating division or committee will vote electronically on approval of the final proposal.  Provided a majority of those participating vote in favor of the final proposal, a request for approval will be submitted to the Board of Governors for consideration at its meeting on Friday, November 18, 2022.  Government Relations staff will publish a notice to members at least fourteen days prior to the Board meeting (Friday, November 4, 2022), listing those proposals which will be on the Board agenda for consideration.  If you have any questions, please contact Government Relations staff at 573-659-2280 or govrel@mobar.org for more information.