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View from the 24th Story

A Message from Representative Chris Kelly
Volume 4, July 2009

Where's Waldo ... I Mean ... Chris???

According to carefully made plans, your esteemed 24th District Representative was hoping to keep his head mostly above water on the rivers and streams in Missouri, Colorado and Canada during July and August. (Yes, he does wear a helmet and life preserver.)
However, inter-session action in Jefferson City may keep Chris high and dry this summer.
You know what happens with some of our best-laid plans....

Representative Chris Kelly, D-Columbia, has been appointed as one of five Missouri House members to serve on the Joint Interim Committee on Oversight of Federal Stimulus and Stabilization Funds. Five Senators have also been appointed. This committee will study ways to maximize the amount of federal funds received under the American Recovery and Reinvestment Act of 2009 and ensure that the funds are properly spent.

Rep. Kelly is pleased to serve on the committee and believes that his experience as House Budget Chair and Vice-Chair during his previous tenure in the legislature and his current role as ranking member of the House Budget Committee will serve him well in this endeavor. House Budget Chair, Rep. Allen Icet, R-Wildwood, will head the committee, which will meet periodically during the summer and fall, leading up to the next session. 

The purpose of the Interim Committee is to conduct a comprehensive study and analysis of the most effective strategies for securing the maximum amount of federal funds from the American Recovery and Reinvestment Act of 2009; to examine any conditions attached to receipt of the federal money; and to investigate exactly for what purpose moneys under ARRA may be used.  

According to Rep. Kelly, “My goals on this committee are threefold: 1) to assure that we are in compliance with federal and state law; 2) to maximize the efficiency with which we allocate stimulus dollars; and 3) to do everything we can to use stimulus money in ways that create jobs -- not just fill funding gaps.” 

Gov. Jay Nixon pushes massive building project in

JEFFERSON CITY – Gov. Jay Nixon today signaled support for a massive new state building project that would require voters to approve hundreds of millions of dollars in state bonds.
In a letter to lawmakers, Nixon said that the state’s capital building process has “broken down” over the “past several administrations,” leaving the state in need of many new public buildings at a time when interest rates are low.
That collision of events was the thinking behind a proposal this year pushed by Democrat state Rep. Chris Kelly of Columbia and Republican floor leader Steve Tilley of Perryville to ask voters to approve $700 million or more in bonds for university and other state projects.
Nixon offers support for that plan in his letter, and he tells lawmakers “we have no time to lose.” That’s because terms of the federal stimulus proposal could help the state pay for the projects, but there’s a deadline on using the federal money.
The timing of the letter is a further signal from Nixon that he expects to make hundreds of millions of dollars in cuts in the budget approved by the Legislature, and many of those cuts might be building projects. One of the larger building projects is a cancer center for Ellis Fischel Hospital in Columbia that has been a political hot potato for several years.
The letter also gives an indication that Nixon may want to bring lawmakers back to the capital city to come up with a new building plan.
Asked whether a special session was on the horizon, Nixon spokesman Jack Cardetti said, “Over the next month or so the governor will be meeting with leaders to see if a bipartisan consensus can be reached on what the smartest way is to address our state’s capital needs. Decisions such as timing will be part of those discussions.”
House Speaker Ron Richard, R-Joplin, said Nixon called to talk to him about the letter today. Richard said he supports the bonding program as long as it doesn’t threaten the state’s credit rating and can be accomplished without a tax increase. Nixon agrees with both issues in his letter.
“It seems like a reasonable request to me,” Richard said. “I think it’s a good way to put people back to work. But I gotta find out what the final number is.”
The last version of the bonding proposal under consideration in the Legislature was for more than $800 million.
The original version was focused mostly on university building projects, but various state building projects were added along the way. Richard said that Nixon told him he might want to add highway projects to the proposal as well.
Ultimately, voters would have the final say because such a large bonding project would have to be approved by them.
During the session, Kelly argued that the state is about to pay down bonds from a similar building project passed under the leadership of Kit Bond when he was governor, and that the state should be able to apply the amount of money already budgeted for those bonds to a new building project.

Governor Nixon’s support for a building-bond issue is welcome news.
Rep. Steve Tilley and I have been advocating a bond issue for capital construction on our campuses since last January. Capital projects are designed for long-term use, and supporting them with long-term bond funding is prudent.
The House passed our $700 million bond issue for education during the last session, but it failed to be approved by the Senate.
The Governor’s emphasis on timing is well placed. The federal interest-rate subsidy contained in the Build America Bonds Program requires swift action. And with Missouri’s unemployment rate approaching 10%, nothing could be more important than putting Missourians to work as soon as possible on projects vitally important to the future of our state.
Now that the Governor has voiced his support for a Fifth Missouri Building Bond, he can advance the project by:

• Using his bully pulpit to explain the advantages of a bond issue to both legislators and voters
• Providing the legislature with his preferred list of non-education state buildings in addition to the education projects contained in the House bill
• Calling a special session to consider a bond issue as soon as possible

I look forward to working with the Governor to make the Fifth State Building Fund a reality.

First he was for it, then he was against it.  That could be said of several Republicans who, when Gov. Nixon was silent on the issue, were vocally supportive of the proposed State Bond Issue, but who now, when Gov. Nixon has voiced support for the Bond Issue, are suddenly withdrawing their support.

In Junior High, we all learned the process of introducing bills in the legislature, going through the committees, offering amendments, and bringing the versions of the house and senate together. When the legislature adjourned on May 15, the following are some of the bills sent to Governor Nixon for his signature that are of interest to constituents in mid-Missouri. The Governor has until July 14 to sign or veto them. If he does nothing, bills passed by both houses become law without his signature. We will include others in upcoming newsletters, and update you on the Governor’s actions on these bills.

Selected bills passed by the Missouri Legislature in 2009 include the following:

Omnibus Crime Bill
House Bill 62 is a wide-ranging crime bill that makes a number of changes to Missouri statutes to ensure safer roads and waterways and to enact additional restrictions on sexual offenders.

One provision of the bill prohibits drivers 21 and younger from sending, reading, or writing text messages or electronic messages while operating a moving vehicle on highways in Missouri. If pulled over for texting, a driver could be ticketed with a moving violation. The text messaging prohibition does not apply to a person operating a motor vehicle who sends a text message to report illegal activity, summon medical or other emergency help, prevent personal injury or property damage, or to relay information between a for-hire operator and a dispatcher.

The legislation also places several new restrictions on sex offenders. One provision prevents sex offenders from being within 500 feet of a park that has playground equipment or a swimming pool. The bill also prevents sex offenders from being a coach or trainer of a sports team that has a member who is younger than 17. In addition, sex offenders are prohibited from going within 500 feet of a childcare facility. However, the provision does not affect persons visiting their own child.

House Bill 62 also makes it illegal to bring beer bongs or kegs onto most Missouri rivers or streams. Violating this provision is punishable by up to a year in prison.
In addition, the bill increases penalties for cattle rustlers. It prohibits the use or possession of an alcohol beverage vaporizer; requires the Department of Health and Senior Services to implement an education and awareness program regarding the financial exploitation of the elderly.  It also prohibits the use of a false or misleading diploma in connection with admission to a college or university or with any employment opportunity.

Public Defenders
Senate Bill 37 makes several changes to Missouri’s Public Defender System to alleviate the heavy caseload burden placed on public defenders in many areas of the state.

One provision of the bill allows the Public Defender Commission to establish a maximum caseload standard. If the number of cases being handled by a public defenders' office reaches that threshold, the state could contract with private and public attorneys or place defendants on a waiting list for a state attorney.
The legislation requires prosecutors to state whether they will be seeking jail time. Current law provides public defenders to people facing misdemeanor charges that “will probably result” in jail time. The legislation would allow trials to proceed without a public defender if prosecutors are not pursuing any jail time.

Forcible Sexual Offenses Against Children
Senate Bill 36 & 112 makes the penalty for forcible rape or sodomy of a child. under the age of twelve, life imprisonment without eligibility for probation and parole at any time. Currently, the penalty for these crimes is a term of imprisonment with no eligibility for probation or parole until the offender has served at least 30 years.

Child Witness Protection Act
House Bill 863 creates the Child Witness Protection Act to protect children under 17 who are testifying in court proceedings.  The act requires the court to prevent intimidation of a child witness by the parties involved in the case.  The court must also ensure that the oath is given in a way in which the child understands his or her duty to tell the truth.  In addition, it allows for the child to testify at a time of day that is best for the child to understand and fully answer the questions. If requested, it also allows for children to bring a toy, blanket or other comfort item with them when they testify and have a support person nearby during their testimony to provide emotional support, if necessary.

Helmet Law
Senate Bill 202 allows people 21 years of age or older to operate or ride on motorcycles or motor tricycles without protective headgear on all Missouri highways except interstates. The bill also prevents adjusters and insurers from assigning a percentage of fault to someone who was legally operating a motorcycle. Governor Nixon vetoed this bill because of the cost to the state and to the medical system as a result of motorcycle head injuries.

Omnibus Insurance Bill
House Bill 577 is an omnibus bill regarding the regulation of insurance. It includes creating the crime of knowingly or intentionally producing, manufacturing, selling or distributing a fraudulent insurance identification card and prohibiting life insurance companies from providing coverage to individuals, or restricting their current policy, based on their past or future lawful travel destinations in certain cases.  It also changes the requirements of health insurance companies regarding chiropractic services and requires insurance companies to offer coverage for prosthetic devices and services.

House Bill 577 also makes information relating to MO HealthNet readily available on the Department of Health and Senior Services website.  It requires the department to make data available on MO HealthNet participants from the federal Medicaid Statistical Information System.  This information must contain data on health care providers and non-identifying information on participants in an easy to use format that is updated at least quarterly.

Fire-Safe Cigarettes
House Bill 205 establishes the Fire Safety Standards and Firefighter Protection Act, which requires all cigarettes sold in Missouri to self-extinguish.  Beginning in 2011, cigarette manufactures must certify that each brand of cigarettes is fire-safe or be assessed fines of up to $100,000 per month.  Retailers who sell cigarettes that are not fire-safe could be fined as much as $100 per pack. With this change, Missouri becomes one of 46 states to require fire-safe cigarettes.

Economic Development
House Bill 191 is an economic development package designed to create good-paying jobs with benefits for Missourians struggling to find employment.
One provision of the bill increases the tax credit cap on the state’s successful Quality Jobs program from $60 million a year to $80 million annually. The bill also expands the program to include certain technology companies. Under the Quality Jobs Act, employers can earn tax credits for creating new jobs that pay at least a county's average wage and include health insurance coverage.

The bill reduces the tax burden for approximately 15,000 Missouri businesses by exempting them from the state’s corporate franchise tax. Specifically, the bill increases from $1 million in assets to $10 million the size of a classification of businesses that will be exempt from the tax.

The legislation also increases the annual cap on the Business Use Incentives for Large-Scale Development (BUILD) Tax Credit program from $15 million to $25 million. The program provides a financial incentive for the location or expansion of large business projects. These incentives are designed to reduce necessary infrastructure and equipment expenses if a project can demonstrate a need for funding.

In addition, the legislation increases the annual caps on the New Markets Tax Credit program from $15 million to $25 million. The program has helped channel more than $120 million in investments into small businesses in low-income, distressed communities all around the state. The bill also extends the sunset on the program from 2010 to 2012.

House Bill 191 caps historic preservation tax credits at $140 million annually. Smaller projects that utilize less than $275,000 in credits are not included in the cap amount.

The bill also includes provisions allowing the Department of Economic Development to include pre-employment training in its new or expanding industry training; modifying tax credit reporting requirements by requiring tax credit recipients to report job creation resulting from the use of tax credits; limiting the amount of tax credits the Missouri Development Finance Board can issue in a calendar year without outside approval; and expanding the eligibility for the Neighborhood Assistance program.

Unemployment Compensation
House Bill 1075 changes the laws regarding unemployment compensation in an attempt to draw down federal stimulus dollars to provide extended benefits to out-of-work Missourians. This legislation also removes the funding cap for the payment of unemployment benefits.

The bill extends the period in which the state can receive federal unemployment benefit money in addition to the amount an individual may receive. A person may continue to receive benefits in a high unemployment period if he or she has exhausted all state benefits.

Also, the legislation prevents people from being disqualified from receiving unemployment compensation if they are without work due to family reasons such as illness and location change in spouse’s employment.

A person who is training under the Workforce Investment Act of 1998 who has exhausted his or her regular unemployment benefits will be eligible for additional benefits up to 26 times the amount of the weekly benefit amount.

Real ID
House Bill 361 ensures that Missouri will not comply with the federal Real ID Act of 2005 that requires states to collect and verify certain citizenship information about people seeking driver's licenses and state identification cards. The legislation protects applicants for a driver's license, nondriver's license, or instruction permit by ensuring his or her privacy rights are not violated in order to obtain or renew a driver's license. Specifically, the bill prohibits the Missouri Department of Revenue from amending procedures for applying for a driver's license or identification card in order to comply with the goals or standards of the federal Real ID Act of 2005 and from selling any data derived from a person's license or permit application for commercial purposes.

DNA Profiling
House Bill 152 expands the state’s DNA profiling system to require Missourians who are at least 17 years old to give a DNA sample upon being arrested on suspicion of most felonies. Current law established five years ago requires all convicted felons in Missouri to submit DNA samples. The legislation passed this session allows a DNA sample to be collected upon the arrest of an individual for certain felonies that involve sex crimes or other violent crimes (and first and second degree burglary), rather than at the point of conviction. Under the bill, the sample and resulting profile must be discarded if the person is acquitted or the charges are dismissed.

Fee Office Contracts 
House Bill 381 changes the way fee office contracts are awarded in Missouri. Fee offices are where residents register vehicles and obtain driver’s licenses. Previously, the Governor had the authority to award contracts for these offices. The bill passed this session requires the Department of Revenue to award fee office contracts by a competitive bidding process. The bill also requires the department to give bidding preference to nonprofit organizations and political subdivisions.

Tax Exemptions for Retirement Benefits
House Bill 82 creates an income tax exemption for several retirement benefits.  First, it creates an exemption for military retirement income.  Other states in the Midwest have tax deductions for military pensions, which makes them a more attractive destination for military personnel planning retirement.  Beginning next year, Missouri will exempt 15 percent of a retiree’s military pension from state income tax.  The exemption will increase by 15 percent each year over the next six years until the entire military pension is exempted.  

In addition to the tax deduction for military pensions, House Bill 82 removes the age requirement for the income tax exemption for publicly funded retirement benefits and changes the limits for publicly funded retirement benefits when a person receives both the retirement benefits and Social Security.

Alzheimer’s State Plan
House Bill 272 creates the Alzheimer’s State Plan Task Force within the Department of Health and Senior Services. This 19-member task force is responsible for assessing the impact of the disease on Missouri and services available to affected residents. The group must then make recommendations for strategies to address deficiencies to the Governor and General Assembly.

 Email your thoughts to chris@chriskelly24.com