Legislative Update: Governor signs seven bills into law

On Wednesday, June 7, 2023, Governor Parson signed seven pending Truly Agreed bills into law.

• HB 131 (Griffith), relating to state employee pay periods
• SCS SB 13 (Crawford), relating to the regulation of certain financial institutions, with existing penalty provisions
• SS SB 25 (Hough), relating to a tax exemption for certain federal grants
• SS#2 SB 39 (Thompson Rehder), relating to participation in athletic competition, with a severability clause
• SS#2 SCS SBs 49, 236 & 164 (Moon, Hoskins, and Carter), relating to gender transition procedures
• CCS HCS SS SB 111 (Bernskoetter), relating to the administration of state employees
• SS SCS SBs 167 & 171 (Brown – 26 and Hoskins), relating to medical requirements for commercial vehicle operators 

The provisions of the signed bills will take effect on August 28, 2023.  Section-by-section summaries of the bills are available below.    

On The Missouri Bar’s Legislative Engagement Center, members have access to finding aids to help them navigate this year’s Truly Agreed legislation and keep track of what has been enacted into law.  A listing of Truly Agreed bills, with section-by-section outlines, is available for download as PDF document (“2023 TAFP Bills – Outlines”).  In addition, the collected text of the 2023 Truly Agreed legislation is also available for download as a bookmarked PDF (“2023 TAFP Bills – Bill Text”).  Additional finding aids or information will be added as bill reviews are completed.  A complete breakdown and summaries of the 2023 Truly Agreed To and Finally Passed Legislation will be available to members in the next issue of the Legislative Digest (prior to the August 28, 2023, effective date of most new laws).  Legislative Updates throughout the summer will feature summaries, breakdowns, and other information about TAFP bills.   

RECENTLY ENACTED LEGISLATION 

HB 131 (Griffith) – Relating to state employee pay periods
05/03/2023 – Truly Agreed To and Finally Passed 
05/30/2023 – Presented to Governor
06/07/2023 – Signed by Governor 
Bill Text (TAFP)

State Employee Pay Periods (Section 33.100) (Amend) – In addition to the semimonthly or monthly installments currently permitted by law, the salaries of all elective and appointive officers and state employees can also be paid out in biweekly installments, as designated by the Commissioner of Administration. 

SCS SB 13 (Crawford) – Relating to the regulation of certain financial institutions, with existing penalty provisions
05/12/2023 – Truly Agreed To and Finally Passed 
05/30/2023 – Presented to Governor
06/07/2023 – Signed by Governor 
Bill Text (TAFP)

Authority of the Division of Finance (Section 361.020) (Amend) – The Division of Finance shall have charge of the execution of the laws relating to:

• Banks, trust companies, and the banking business of Missouri;
• Persons or entities engaged in the small loan or consumer credit business in Missouri;
• Persons and entities engaged in the mortgage loan business in Missouri; and
• Persons and entities engaged in any other financial services-related business over which the division is granted express authority. 

Responsibilities of the Division of Finance – State Banking and Savings and Loan Board (Section 361.098) (Amend) – The compensation and necessary travel and other expenses of members of the State Banking and Savings and Loan Board shall be paid out of the Division of Finance Fund.  Three members of the board shall constitute a quorum (rather than a majority of the members).  The Division of Finance may provide administrative services to the board to assist it with fulfilling its statutory responsibilities.

Bulletins and Industry Letters Issued by Division of Finance (Section 361.106) (New) – For purposes of this section, the terms “bulletin” and “industry letter” are defined as:

• “Bulletin,” an informal written communication to inform or educate individuals or entities licensed, chartered, or regulated by the Division of Finance and the general public about a regulatory topic or issue (informational in nature and not an evaluation of specific facts and circumstances).
• “Industry letter,” a written communication from the Director of Finance in response to a specific individual or entity chartered, licensed, or regulated by the division, providing the division’s position on a particular regulatory topic or issue with respect to a specific set of facts and circumstances.

Notwithstanding any other provision of law to the contrary, the Director of Finance has the discretionary authority to issue bulletins addressing the business of individuals and entities licensed, chartered, or regulated by the division.  Bulletins do not have the force or effect of law and shall not be considered statements of general applicability that would require promulgation by rule. 

Notwithstanding any other provision of law to the contrary, the Director of Finance also has the discretionary authority to issue industry letters in response to a written request from an applicable licensed, chartered, or regulated individual or entity, seeking the division’s position on an application of law.  The written request shall include specific information, as set forth in this section.  With respect to the requesting party, an industry letter is binding on the Division of Finance.  The requesting party shall not be subject to any administrative proceeding or penalty for any actions or omissions done in reliance on an industry letter, so long as there is no change in any material fact or law or the discovery of a material misrepresentation or omission made by the requesting party.  An industry letter and response shall be confidential, but the Director of Finance may publish industry letters for information purposes (after redacting all identifying information). 

Letters issued by the Director of Finance under subdivision (5) of section 362.106 shall be governed by that section and are distinct from industry letters issued under this section. 

Reports of Examinations of Banks and Trust Companies (Section 361.160) (Amend) – The provision requiring the result of all examinations during a biennial period be embodied in a report made by the Director of the Department of Commerce and Insurance to the General Assembly is repealed, such reporting requirement itself having previously been repealed.

Notices of Charges and Cease and Desist Orders (Section 361.260) (Amend) – The Director of Finance may issue and serve upon the corporation or a director, officer, employee, agent, or other person a notice of charges when the director has reason to believe, from any examination or investigation made by the director or the director’s examiners, that a regulated corporation or applicable persons participating in the conduct of the corporation’s affairs is engaging in, has engaged in, or is about to engage in:

• An unsafe or unsound practice in conducting the business of such corporation;
• A violation of law, rule, or director-imposed written condition;
• A violation of any written agreement entered into with the director; or
• A violation of the corporation's charter. 

A cease and desist order from the division may require the regulated corporation or applicable persons participating in the conduct of the affairs of such corporation to:

• Cease and desist from such actions, violations, or practices;
• Take affirmative action to correct the conditions resulting from any such actions, violations, or practices; and
• Determine and prescribe such books of account as the director shall require of the corporation for the purpose of keeping accurate and convenient records of the transactions and accounts (if the director determines that the corporation does not keep adequate records). 

If the director determines that the capital of the corporation is impaired, a cease and desist order shall require that the corporation make good the deficiency forthwith or within a time specified in the order.  If the director determines that wrong entries or unlawful uses of the funds of the corporation have been made, the order shall order that the entries shall be corrected and the sums unlawfully paid out be restored by the person or persons responsible for the wrongful or illegal payment thereof.

Notice of Removal from Office (Section 361.262) (Amend) – The Director of Finance may serve upon an applicable person a written notice of intention to remove the person from office or to prohibit the person from further participating in any manner in the conduct of the affairs of the corporation or from any other banking, savings, or trust institution supervised by the director when it shall appear from any examination or investigation that the person, by conduct or practice with respect to the corporation or another corporation or other business institution that resulted in financial loss or other damages, has evidenced:

• Either the person’s personal dishonesty or a willful or continuing disregard for its safety and soundness; and
• The person’s unfitness to participate in the conduct of the affairs of the corporation.

Fees Collected by Division of Finance (Sections 361.715, 364.030, 364.105, 365.030, 367.140, 407.640, and 408.500) (Amend) – The following fees collected by the Division of Finance are amended as shown below:

Issuance of Credit Cards by Lenders (Section 408.145) (Amend) – Lenders issuing credit cards in Missouri may issue such credit cards under such terms and conditions which any lender in any contiguous state is permitted to utilize for credit cards issued in such contiguous state by such state’s statutes.  State-chartered lenders shall file a copy of the pertinent statutes of one contiguous state authorized credit card terms and conditions with the Director of Finance or such lender’s principal state regulator.  The director or other principal state regulator shall (within thirty days after receipt of the filing) approve or disapprove of such terms and conditions on the sole basis of whether the statutes of such contiguous state permit such terms and conditions, and without regard to the restrictions placed upon credit cards by subsection 2 of this section.  

SS SB 25 (Hough) – Relating to a tax exemption for certain federal grants
05/11/2023 – Truly Agreed To and Finally Passed 
05/30/2023 – Presented to Governor
06/07/2023 – Signed by Governor 
Bill Text (TAFP)

Tax Exemption for Certain Federal Grants (Section 143.121) (Amend) – For purposes of calculating the Missouri adjusted gross income of a resident individual, one hundred percent of any federal grant moneys received for the purpose of providing or expanding access to broadband internet to areas of the state deemed to be lacking such access shall be subtracted from the taxpayer’s federal adjusted gross income.  

SS#2 SB 39 (Thompson Rehder) – Relating to participation in athletic competition, with a severability clause
05/12/2023 – Truly Agreed To and Finally Passed 
05/30/2023 – Presented to Governor
06/07/2023 – Signed by Governor 
Bill Text (TAFP)

Participation in Athletic Competitions (Section 163.048) (New) – No private school, public school district, public charter school, or public or private institution of postsecondary education shall allow any student to compete in an athletics competition that is designated for the biological sex opposite to the student’s biological sex as correctly stated on the student’s official birth certificate or another government record (if the birth certificate is unobtainable).  A school, school district, or postsecondary educational institution may allow a female student to compete in an athletics competition that is designated for male students if no corresponding athletics competition designated for female students is offered or available.  Schools, districts, or institutions that violate subdivision (1) of subsection 3 of this section shall not received any state aid under chapter 163 or chapter 173 or any other revenues from the state.  The parent or guardian of any student (or any student who is over eighteen years of age) who is deprived of an athletic opportunity as a result of a violation of this section shall have a cause of action for injunctive or other equitable relief.  The provisions of this section shall expired on August 28, 2027.   

Severability Clause (Section B) (New) – If any provision of section 163.048 or the application thereof  is held invalid, the remainder of the section and the application of such provisions shall not be affected.   

SS#2 SCS SBs 49, 236 & 164 (Moon, Hoskins, and Carter) – Relating to gender transition procedures
05/10/2023 – Truly Agreed To and Finally Passed 
05/30/2023 – Presented to Governor
06/07/2023 – Signed by Governor
Bill Text (TAFP)

Missouri Save Adolescents from Experimentation (SAFE) Act (Section 191.1820) (New) – This section shall be known and may be cited as the “Missouri Save Adolescents from Experimentation (SAFE) Act.”  A health care provider shall not knowingly perform a gender transition surgery on any individual under eighteen years of age.  A health care provider shall not knowingly prescribe or administer cross-sex hormones or puberty-blocking drugs for the purpose of a gender transition for any individual under eighteen years of age (but this subsection shall not apply to the prescription or administration of  such hormones or drugs when such drugs were prescribed or administered prior to August 28, 2023). 

The performance of a gender transition surgery or the prescription or administration of cross-sex hormones or puberty-blocking drugs to an individual under eighteen years of age in violation of this section shall be considered unprofessional conduct.  The appropriate licensing entity or disciplinary review board with competent jurisdiction in Missouri shall revoke the license to practice of any health care provider doing so. 

The prescription or administration of cross-sex hormones or puberty-blocking drugs to an individual under eighteen years of age for the purpose of a gender transition shall be considered grounds for a cause of action against the health care provider.  The provisions of chapter 538 shall not apply to any action under subsection 6 of this section.  An action brought pursuant to this subsection shall be brought within fifteen years of the individual injured attaining the age of twenty-one or of the date of the treatment of the injury at issue in the action by the defendant has cased, whichever is later.  An individual bringing an action shall be entitled to a rebuttable presumption that the individual was harmed if the individual is infertile following the prescription or administration of the hormones or drugs and that the harm was a direct result of the hormones or drugs prescribed or administered.  Such presumption may be rebutted only by a clear and convincing evidence.  In any such action, a plaintiff may recover economic and noneconomic damages and punitive damages, without limitation to the amount and no less than $500,000 dollars in the aggregate.  The judgement shall be in an amount of three times the amount of any economic and noneconomic damages or punitive damages assessed.  An action may be brought in any circuit court of Missouri.  No health care provider shall require a waiver of the right to bring an action pursuant to subsection 6 of this section as a condition of services.  The right to bring an action through an individual under the age of eighteen shall not be waived by a parent or legal guardian.  A plaintiff may enter into a voluntary agreement of settlement or compromise, but no agreement shall be valid until approved by the court.  If requested by the plaintiff, any pleadings, attachments, or exhibits filed and judgments issued by the court shall not include the personal identifying information of the plaintiff.  Such information shall be provided in a confidential information filing sheet, which shall not be subject to public inspection or availability. 

The provisions of this section shall not apply to any speech protected by the First Amendment of the United States Constitution. 

The provisions of this section shall not apply to the following:

• Services to individuals born with a medically-verifiable disorder of sex development;
• Services provided when a physician has otherwise diagnosed an individual with a disorder of sex development and determined through genetic or biochemical testing that the individual does not have normal sex chromosome structure, sex steroid hormone production, or sex steroid hormone action;
• The treatment of any infection, injury, disease, or disorder that has been caused by or exacerbated by the performance of gender transition surgery or the prescription or administration of cross-sex hormones or puberty-blocking drugs; or
• Any procedure undertaken because the individual suffers from a physical disorder, physical injury, or physical illness that would (as certified by a physician) place the individual in imminent danger of death or impairment of a major bodily function unless surgery is performed.

Health Care Services in Correctional Centers or County Jails (Sections 208.152, 217.230, and 221.120) (Amend) – No Mo HealthNet payments shall be made for gender transition surgeries, cross-sex hormones, or puberty-blocking drugs, for the purpose of a gender transition.  Health care services in correctional centers or county jails shall not include gender transition surgery.   

CCS HCS SS SB 111 (Bernskoetter) – Relating to the administration of state employees
05/12/2023 – Truly Agreed To and Finally Passed 
05/30/2023 – Presented to Governor
06/07/2023 – Signed by Governor 
Bill Text (TAFP)

State Employee Pay Periods (Section 33.100) (Amend) – In addition to the semimonthly or monthly installments currently permitted by law, the salaries of all elective and appointive officers and state employees can also be paid out in biweekly installments, as designated by the Commissioner of Administration. 

Personnel Advisory Board (Sections 36.020, 36.030, 36.060, 36.070, 36.080, 36.090, 36.100, 36.120, 36.140, 36.250, 36.440, 36.510, 37.010, 105.950, 105.1114, and 288.220) (Amend) and (Section 36.050) (Repeal) – The section establishing the Personnel Advisory Board and provisions of other sections relating to the Personnel Advisory Board are repealed, and the duties and responsibilities of the board are reassigned to the Director of the Division of Personnel or the Commissioner of Administration. 

SS SCS SBs 167 & 171 (Brown – 26 and Hoskins) – Relating to medical requirements for commercial vehicle operators
05/08/2023 – Truly Agreed To and Finally Passed 
05/30/2023 – Presented to Governor
06/07/2023 – Signed by Governor 
Bill Text (TAFP)

Medical Requirements for Commercial Vehicle Operators (Section 302.768) (Amend) – For a commercial driver’s license or commercial driver’s instruction permit, an applicant certifying to operation in nonexcepted interstate or nonexcepted intrastate commerce shall provide the state with an original or copy of a current medical examiner’s certificate or a certificate accompanied by a medical variance or waiver.  This amendment provides that the required documentation may be provided in person; by mail, facsimile, or electronic mail; or through a verification system approved by the Federal Motor Carrier Safety Administration.  
 

2023 Legislative Dates to Remember

First Regular Session

Veto Session