By Ray McCarty, president/CEO, Associated Industries of Missouri
February 7, 2025 - Here is a quick recap of our activities working for you this week.
Deal Closing Fund Extension (AIM supports)
We testified in support of SB 103 (Bernskoetter) that extends the expiration date of the deal closing fund, an acceleration of benefits available to qualified companies meeting the requirements of the Missouri Works program. The program currently is set to expire June 30, 2025. This act extends the program until June 30, 2031.
Pesticide Labeling (AIM supports)
We previously told you we supported HB 544 (Diehl), providing that federal pesticide labeling requirements will be sufficient. The bill was approved by the House Standing Committee on Agriculture this week by a vote of 13-10.
Child Care Incentive Package (AIM supports)
We also reported earlier we supported a child care credit package contained in HB 269 (Shields) and that bill was approved by the House Economic Development Committee by a vote of 9-0 this week. The bill was then referred to the House Rules - Legislative Committee.
Unemployment Benefit Checks and Balances (AIM supports)
This week AIM supported HB 202 (Casteel) in a hearing of the House Government Efficiency Committee. Associated Industries of Missouri supports increasing the checks and balances on those claiming unemployment benefits as provided in the bill. Such benefits should be utilized as a temporary measure by people who are unemployed through no fault of their own. If they are not actively seeking work, benefits should be discontinued. While many of the provisions of the bill are already the current practice of the Missouri Dept. of Labor and Industrial Relations, this legislation would codify the controls and protect the integrity of the UI Trust Fund.
Statute of Limitations (AIM supports)
We told you previously we supported HB 68 (Overcast) that would reduce the statute of limitations for personal injury claims from Missouri's unusually long five years to two years. The bill was voted out of committee this week by a vote of 5-4 and was referred to the House Rules - Legislative Committee.
Construction Work in Progress (CWIP) Exception (AIM position is complicated)
We told you in other articles about our opposition to making exceptions to current law prohibiting costs for energy projects from being included in utility customer rates until the project is placed in service. Two bills that would provide an exception to this CWIP protection for small modular reactor projects are HB 50 (Haley) and HB 376 (Black) . AIM opposed those bills in the committee hearing this week because they would allow projects larger than the federal definition of "small modular reactor" and they provide no refunds for consumers if the project costs dramatically exceed initial projections or the projects never produce electricity. SB 186 (Cierpiot) would provide an exception to the CWIP protections for other types of utility projects. AIM testified for informational purposes that the refund provisions needed to be included in the bill. Sen. Cierpiot has agreed to add the consumer protection provisions to his bill and AIM greatly appreciates his support of protections for utility consumers.
MDNR Funding (AIM supports)
The Air Pollution Control Program (APCP) of the Missouri Department of Natural Resources (MDNR) is facing a projected shortfall in revenues supporting the program of around $3 million. As companies reduce pollution, the amount paid for permits decreases while expenses to operate the program are constantly increasing due to inflation. Also, current statutes allow these permit funds to be "swept" into General Revenue, meaning the funds are not available to support the program. AIM testified such sweeping of funds was illogical and deceitful as permit fees are supposed to be used only to support the program. AIM's idea, codified in SB 120 (Bean), is to stop such sweeping of funds and to earmark a percentage of current sales and use tax revenues collected by utility companies for program support, producing the amount of the projected shortfall. This approach would also provide a hedge against inflation as sales tax revenues generally increase with inflation. The bill was heard in the Senate Agriculture Committee this week.
Food Product Labeling (AIM opposes)
SB 149 (Carter) is a bill requiring food products sold in Missouri to be labeled in a certain manner. AIM opposes establishing different standards for food products on a statewide basis as it is impossible for food product manufacturers to know at the time of production and labeling which products will be used in which state. The bill was heard in the Senate Committee on Families, Seniors and Health this week.
Tax Reform Committee Hearing
The House Special Committee on Tax Reform heard three proposals opposed by Associated Industries of Missouri this week:
HB 100 (Davidson) - Although HB 100 reduces the income tax rate for individuals to 4%, it eliminates the current deduction for federal income taxes paid for both individuals and corporations. As a result, corporations would pay more in corporation income taxes. Associated Industries of Missouri opposes measures that increase taxes on Missouri businesses.
HJR 1 (Davidson) and HJR 35 (Keathley) - These joint resolutions, if approved by voters, would remove the current constitutional protection against expanding Missouri sales and use tax to services and digital products. Associated Industries of Missouri opposes these resolutions that could allow a dramatic expansion of the Missouri sales and use tax base.
AIM President Addresses AMEC Board of Directors
I had the pleasure of addressing the Board of Directors of the Association of Missouri Electric Cooperatives at their meeting this week. We updated the Board on the progress of talks with the Missouri Department of Revenue regarding implementation of the sales and use tax exemption we achieved for items used in the transmission and distribution of electricity. We also spoke about employer responsibilities under Proposition A, our lawsuit challenging the measure, and legislation that has been filed that deals with the various provisions of the law.
We intend to provide these legislative updates to you on a weekly basis on Fridays as we track the progress of these and other bills affecting Missouri businesses.