Legislative Update: Looking Ahead to Veto Session and Extraordinary Session

Wednesday, Sept.14, 2022, will mark the beginning of the veto session.  At this time, members of both chambers will convene to consider those bills or line items vetoed by Governor Parson.  An outline and summaries are included below.  A vote of two-thirds of the members of each chamber will be required for a vetoed bill or budget line item to become law, notwithstanding the governor’s objections. 

At the same time, the House and Senate will begin deliberation on the governor’s proposal to cut income tax and extend key agriculture tax credit programs for a minimum of six years.  Legislative leadership and the governor have conducted meetings to craft a general agreement on the details of the bills that will be filed.  As a result, the actual start of legislative consideration of bills has been delayed.  

SENATE BILLS

SS SCS SB 724 (Hegeman) – Relating to financial statements of political subdivisions, with penalty provisions
05/13/2022 – Truly Agreed To and Finally Passed 
05/18/2022 – Presented to Governor
07/01/2022 – Vetoed by Governor (Veto Letter)

FINANCIAL STATEMENT OF COUNTY, PUBLICATION (Sections 50.815 and 50.820) (Amend) – see HB 1606

ANNUAL REPORTS TO STATE AUDITOR OF POLITICAL SUBDIVISION FINANCIAL TRANSACTIONS (Section 105.145) (Amend) – see HB 1606

EXPENDITURES OF SCHOOL DISTRICTS (Section 164.450) (New) – Any school district located in whole or in part in “any county with more than four hundred thousand but fewer than five hundred thousand inhabitants” (St. Charles County) that receives voter approval for the issuance of bonds under chapter 164 shall maintain a detailed accounting of each and every expenditure by the school district for the moneys generated by such issuance.  Any such school district shall be required to maintain a budget for each project, and the budget shall detail the exact cost of the project and the source of all moneys used to fund the project.  All information in the budget shall be maintained and updated on the website of the school district, and shall be publicly available.  Continuation of a project shall be halted immediately if costs exceed the amount budgeted for project completion by more than ten percent.  To continue, the school district must receive voter approval under chapter 164 for the issuance of further bonded indebtedness specifically for such project.  The continuation of the project shall not occur until the school district receives voter approval for the issuance of further bond indebtedness specifically for such project.  Any taxpayer residing within the school district may seek injunctive relief in a court of competent jurisdiction against the school district for violations of this section.

FINANCIAL STATEMENT OF COUNTY, PREPARATION AND CONTENTS (Section 50.800) (Repeal) – see HB 1606

FINANCIAL STATEMENT OF COUNTY, PUBLICATION (Section 50.810) (Repeal) – see HB 1606

HOUSE BILLS

SS HB 1667 (Christofanelli) – Relating to kratom products, with penalty provisions 
05/13/2022 – Truly Agreed To and Finally Passed 
05/18/2022 – Presented to Governor
07/01/2022 – Vetoed by Governor (Veto Letter)

KRATOM CONSUMER PROTECTION ACT (Section 196.1170) (New) – This section would have been known and could have been cited as the “Kratom Consumer Protection Act.”  The General Assembly would have occupied and preempted the entire field of regulating kratom products.  The section would have enacted labeling and product purity requirements.

CCS SS SCS HCS HB 1720 (Pollitt) – Relating to agricultural economic opportunities, with a penalty provision and an emergency clause for certain sections 
05/10/2022 – Truly Agreed To and Finally Passed
05/18/2022 – Presented to Governor 
07/01/2022 – Vetoed by Governor (Veto Letter)

PET BREEDERS WEEK (Section 9.315) (New) – see HB 2627

JOINT COMMITTEE ON RURAL ECONOMIC DEVELOPMENT (Section 21.915) (New) – see SB 672

SURVEYS – LOST CORNERS (Sections 60.301, 60.315, and 60.345) (Amend) – The following definition” used in chapter 60 would have been amended: 

• Corners of the United States public land survey;
• Obliterated, decayed or destroyed corner; and
• Double proportionate measurement;

Lost corners on township exteriors, excluding corners referenced in subdivision (3) of section 60.315, whether they are standard or closing corners, would have been reestablished by single proportionate measurement on the line connecting the next nearest existent standard or closing corner on opposites sides of the lost corner. 

The proportional position would have been offset by, if necessary, in a cardinal direction to the true line defined by the nearest adjacent corners on opposite sides of the quarter-section corner to be established. 

WOOD ENERGY PRODUCERS TAX CREDITS (Section 135.305) (Amend) – The tax credit for Missouri wood energy producers would have been extended from June 30, 2020, to June 30, 2024.

MEAT PROCESSING FACILITY INVESTMENT TAX CREDITS (Section 135.686) (Amend) – The Meat Processing Facility Investment Tax Credit Act would have been extended from December 31, 2021, to December 31, 2024. 

HIGHER ETHANOL BLEND TAX CREDIT (Section 135.755) (New) – For all tax years beginning on or after January 1, 2023, a retail dealer that sold higher ethanol blend at their retail service station or a distributor that sold higher ethanol blend directly to the final user located in Missouri would have been allowed a tax credit to be taken against their state income tax liability.  The provisions of this section would have automatically sunset on December 31, 2024. 

BIODIESEL BLEND TAX CREDIT (Sections 135.775 and 135.778) (New) – For all tax years beginning on or after January 1, 2023, a retail dealer that sold a biodiesel blend at their retail service station or a distributor that sold a biodiesel blend directly to the final user located in Missouri would have been allowed a tax credit to be taken against their state income tax liability.  The provisions of this section would have automatically sunset on December 31, 2024.

For all tax years beginning on or after January 1, 2023, a Missouri biodiesel producer would have been allowed a tax credit to be taken the producer’s state income tax liability.  The provisions of this section would have automatically sunset on December 31, 2024.

URBAN FARM TAX CREDIT (Section 135.1610) (New) – For all tax years beginning on or after January 1, 2023, a taxpayer would have been allowed to claim a tax credit against the taxpayer’s state tax liability in an amount equal to fifty percent of the eligible expenses for establishing or improving an urban farm that focuses on food production.  The program would have automatically sunset on December thirty-first two years after the effective date of the section. 

QUALIFIED ROLLING STOCK TAX CREDIT (Section 137.1018) (Amend) – The program would have been extended from August 28, 2020, to August 28, 2024. 

SALES TAX EXEMPTION – UTILITY VEHICLES FOR AGRICULTURAL USE (Section 144.030) (Amend) – Utility vehicles used for any agricultural use would have been added to farm machinery and equipment exempt from sales tax. 

RECYCLED ASPHALT SHINGLES (Sections 260.221 and 644.060) (New) – New provisions would have been enacted permitting the use of process recycled asphalt shingles for fill, reclamation, and other beneficial purposes without any permits relating to solid waste management or any permits relating to the Missouri Clean Water Law.  

STATE ASSESSMENT FOR COMMODITY MERCHANDISING COUNCIL (Section 275.357) (New) – Provisions relating to the soybean producers assessments – state and federal – would have been enacted.  The total of the state and federal assessment would have been required to be paid to the Commodity Merchandising   Council.

LOCAL LOG TRUCKS AND TRACTORS (Sections 301.010, 301.062, 304.180, and 304.240) (Amend) – Amendments relating to the size, load-limits, weight limits, and operational areas for local log trucks and tractors would have been enacted.

AGRICULTURAL PRODUCT UTILIZATION CONTRIBUTOR TAX CREDIT – EXPIRATION DATE (Section 348.436) (Amend)

The expiration date for the Agricultural Product Utilization Contributor Tax Credit under Section 348.430, and the New Generation    Cooperative Incentive Tax Credit under Section 348.432 are extended from December 31, 202, to December 31, 2024.

SPECIALTY AGRICULTURAL CROPS ACT (Sections 348.491 and 348.493) (New) – The “Specialty Agricultural Crops Act” would have established a specialty agricultural crops loan program for family farmers for the purchase of specialty crop seeds, seedlings, or trees; soil amendments, including compost; irrigation equipment; fending; row covers; trellising; season extension equipment; refrigeration equipment; and equipment for planting and harvesting.  The program would have automatically sunset two years after the effective date of this section. 

FAMILY FARMS ACT (Section 348.500) (Amend) – The definition of “small farmer” and the maximum amount of the family farm livestock loan for each type of livestock would have been amended. 

AIR CONSERVATION (Sections 643.050, 643.079, and Section 266.355) – The provisions of law granting the Department of Agriculture oversight over standards relating to anhydrous   ammonia would have been repealed.  The Air Conservation Commission would have been granted rulemaking authority for covered processes at agricultural stationary sources that used, stored, or sold anhydrous ammonia.  The commission would have been authority to adopt regulations necessary to implement and enforce the risk management plans under the federal Clean Air Act.

NATURAL RESOURCES PROTECTION FUND (Section 643.245) (Amend) – The “Anhydrous Ammonia Risk Management Plan Subaccount” would have been created within the Natural Resources Protection Fund. 

EMERGENCY CLAUSE FOR SECTIONS 21.915, 60.301, 60.315, 60.345, 135.305, 135.686, 135.755, 135.775, 135.778, 135.1610, 275.357, 348.436, 348.500, 643.050, 643.079, AND 643.245 (Section B)

SCS HB 2090 (Griffith) – Relating to the payment of funds from the state treasury 
05/06/2022 – Truly Agreed To and Finally Passed
05/18/2022 – Presented to Governor 
07/01/2022 – Vetoed by Governor (Veto Letter)

STATE EMPLOYEE PAY PERIOD (Section 33.100) (Amend) – The salaries of all elective and appointive officers and employees of the state shall be paid out of the state treasury, in semimonthly or monthly installments as designated by the Commissioner of administration.  This amendment would have permitted installments once every two weeks. 

STATE PERSONNEL ADVISORY BOARD (Sections 36.020 and 36.050) (Amend) – The definition of “board” in section 36.020 would have been repealed, and the provisions establishing and defining the duties of the Personnel Advisory Board would have been repealed. 

SELECTION OF STATE EMPLOYEES (36.030) (Amend) – References to the Personnel Advisory Board and the Division of Personnel are repealed and replaced with the term “director.” 

COMMISSIONER OF ADMINISTRATION – DUTIES (Sections 36.070, 36.080, and 37.010) (Amend) – The Commissioner of Administration would have had the power to prescribe such rules and regulations not inconsistent with the provisions of chapter 36 as the commissioner deemed suitable and necessary to carry out the provisions of chapter 36.  As of August 28, 2022, the rules of the Personnel Advisory Board would have become rules of the Commissioner of Administration.  The Commissioner of Administration would have been responsible for the appointment of the Director of the Division of Personnel and the removal of the director for no reason or for any reason not prohibited by law.   

PERSONNEL DIVISION DIRECTOR – DUTIES (Sections 36.060, 36.090, 36.100, 36.120, 36.140, 36.250, 36.440, 36.510, and 105.1114) (Amend) – The Director of the Division of Personnel would have replaced the Personnel Board in matters related to state employee management. 

COMPENSATION OF DEPARTMENT HEADS (Section 105.950) (Amend) – Salary ranges for department directors and members of the Parole Board would have been set by the Personnel Director after considering the results of a study periodically performed or administered by the Office of Administration. 

EMPLOYEE ERROR, CAUSE OF LATE RETURN – NO PENALTY TO TAXPAYER, WHEN (Section 136.370) (Amend) – Notwithstanding any provision of law to the contrary, the Director of Revenue shall refund to a taxpayer the amount of sales and use tax assessments paid by the taxpayer when it is determined by the Administrative Hearing Commission or a court of law that the negligence of or incorrect information provided by an employee of the department resulted in the taxpayer failing to collect and remit sales and use tax assessments that were required to be collection and for which the department subsequently audited the taxpayer.  A taxpayer shall file a claim for refund no later than April 15, 2023, to receive a refund pursuant to this subsection 2. 

STATE UNEMPLOYMENT INSURANCE (Section 288.220) (Amend) – Subject to the provisions of the state personnel law (rather than “state merit system”), the director shall employ and prescribe the duties and powers of the persons as may be necessary.

ONE–TIME NONREFUNDABLE TAX CREDIT (Section 1) (New) – For the 2021 tax year, a qualified taxpayer would have been allowed to claim a non–refundable tax credit.  The amount of the tax credit would have been equal to the lesser of $500, if filing single, or $1,000, if filing married combined.

The Department of Revenue would have automatically adjusted each qualified taxpayer’s return and would have issued refunds if necessary to qualified taxpayers.  The tax credits would have been limited to $500 million.  If the total amount of tax credits claimed by qualified taxpayers had exceeded $500 million, the amount of the credit would have been prorated.

STATE EMPLOYEES, PROHIBITION ON COVID–19 VACCINATION AS CONDITION OF EMPLOYMENT (Section 2) (New) – No state employee would have been required to receive a vaccination against COVID-19 as a condition of commencing or continuing employment, with specified exceptions. 

APPROPRIATIONS (HOUSE) BILLS

CCS SS SCS HCS HB 3002 (Smith) – To appropriate money for the State Board of Education and the Department of Elementary and Secondary Education
05/06/2022 – Truly Agreed To and Finally Passed 
05/18/2022 – Presented to Governor
06/30/2022 – Signed by Governor, Vetoed in Part (Veto Letter)

CCS SS SCS HCS HB 3003 (Smith) – To appropriate money for the Department of Higher Education and Workforce Development and institutions of higher education
05/06/2022 – Truly Agreed To and Finally Passed 
05/18/2022 – Presented to Governor
06/30/2022 – Signed by Governor, Vetoed in Part (Veto Letter)

CCS SCS HCS HB 3007 (Smith) – To appropriate money for the Department of Economic Development, the Department of Commerce and Insurance, and the Department of Labor and Industrial Relations 
05/06/2022 – Truly Agreed To and Finally Passed 
05/18/2022 – Presented to Governor
06/30/2022 – Signed by Governor, Vetoed in Part (Veto Letter)

CCS SS SCS HCS HB 3008 (Smith) – To appropriate money for the Department of Public Safety
05/06/2022 – Truly Agreed To and Finally Passed 
05/18/2022 – Presented to Governor
06/30/2022 – Signed by Governor, Vetoed in Part (Veto Letter)

CCS SCS HCS HB 3009 (Smith) – To appropriate money for the Department of Corrections 
05/06/2022 – Truly Agreed To and Finally Passed 
05/18/2022 – Presented to Governor
06/30/2022 – Signed by Governor, Vetoed in Part (Veto Letter)

CCS SS SCS HCS HB 3010 (Smith) – To appropriate money for the Department of Mental Health and the Department of Health and Senior Services
05/12/2022 – Truly Agreed To and Finally Passed 
05/18/2022 – Presented to Governor
06/30/2022 – Signed by Governor, Vetoed in Part (Veto Letter)

CCS SS SCS HCS HB 3012 (Smith) – To appropriate money for the Chief Executive’s Office and Mansion, Lieutenant Governor, Secretary of State, State Auditor, State Treasurer, Attorney General, Missouri Prosecuting Attorneys and Circuit Attorneys Retirement Systems, and the Judiciary and the Office of the State Public Defender
05/06/2022 – Truly Agreed To and Finally Passed 
05/18/2022 – Presented to Governor
06/30/2022 – Signed by Governor, Vetoed in Part (Veto Letter)

SS SCS HCS HB 3020 (Smith) – To appropriate money for the expenses, grants, refunds, distributions, purchase of equipment, planning expenses, capital improvement projects, including but not limited to major additions and renovation of facility components, and equipment or systems for the several departments and offices of state government 
05/06/2022 – Truly Agreed To and Finally Passed 
05/18/2022 – Presented to Governor
06/30/2022 – Signed by Governor, Vetoed in Part (Veto Letter)