The Missouri Legislature 2015 New Laws Passed Priorities

The Missouri Legislature 2015: New Laws Passed, Priorities That Failed, What to Expect Going Forward Brian Grace Principal Dentons (314) 259 -5867 brian. grace@dentons. com

Tragedy and Controversy • This session was marred with tragedy, controversy and contention. • The suicides of State Auditor Tom Schweich and his Communications Director, Spence Jackson, cast a long shadow over both the legislative session and Missouri politics as a whole. • Gov. Nixon appointed Boone County Treasurer Nicole Galloway to replace Schweich as State Auditor. She will run for re-election in 2018. • In the session's final week, news broke accusing the Speaker of the House, John Diehl, of sending inappropriate text messages to a college freshman who had been interning in the House, forcing him to resign both his post as Speaker and his position as State Representative. • The House elected Majority Floor Leader Todd Richardson to replace Diehl as Speaker of the House. Richardson was already a shoo-in to replace Diehl when his term was to end in 2017. Richardson will likely serve as Speaker for the next three years. 2

Right to Work (HB 116) Sponsor: Rep. Eric Burlison • Status: Vetoed by Gov. Nixon • Prohibits an employer from requiring a person to become a member of a labor organization as a condition or continuation of employment. • Supporters frame this as an economic development issue. Some studies show that states bordering Missouri with Right-to-Work laws are prospering better than Missouri because of lower labor costs. Opponents, primarily labor unions, argue that Right-to-Work states have inferior work product and reduced middle-class incomes. • The bill passed the House of Representatives 92 -66 and the Senate 21 -13. To override Gov. Nixon's veto, supporters will need to add 17 votes to their tally in the House and 2 in the Senate. • While the passage of this bill was historic for the Right-to-Work coalition, nearly every other item in the legislative process paid a price. 3

Data Storage Centers (SB 149) Sponsor: Sen. Mike Parson • Status: Signed by Gov. Nixon • Creates state and local sales and use tax exemptions for data storage centers. • This act provides state and local sales and use tax exemptions for up to 15 years for all machinery, equipment, computers, electrical energy, gas, water and other utilities, including telecommunication and internet services, used in new data storage center facilities. • The act also provides a state and local sales and use tax exemption for purchases of tangible personal property for the construction of a new data storage center facility. • The act also creates a state and local sales and use tax exemption for up to 10 years for existing data storage center facilities for all machinery, equipment, computers, electrical energy, gas, water and other utilities, including telecommunication and internet services. 4

Fiscal Year 2016 Budget (HBs 1 -13) Sponsor: Rep. Tom Flanigan • Status: Signed by Gov. Nixon • The General Assembly approved the $26 billion budget 2 weeks ahead of schedule. MEDC Priorities: • Customized Training: $8, 805, 677 • Certified Work Ready Community Program: $100, 000 • Missouri Partnership: $2, 250, 000 Other items: • Missouri Technology Corporation: $15, 860, 000 • State Economic Development Plan: $200, 000 • BRAC Assessment: $400, 000 5

Municipal Court Reform (SB 5) Sponsor: Sen. Eric Schmitt • Status: Passed • The bill further restricts the amount of fines that municipalities may collect from traffic violations. • The bill resulted from information gathered by Gov. Nixon's Ferguson Commission, which was created in the wake of Michael Brown's death and the subsequent protests and riots in Ferguson, Missouri. • Several municipalities were found to be in violation of the Mack's Creek law, which restricted municipalities collecting more than 30% of their general operating revenues from traffic violations. • The bill reduces the 30% threshold to 12. 5% for municipalities within St. Louis County and to 20% for all other municipalities within Missouri. The bill also prohibits municipalities from issuing failure-to-appear citations and limits many non-injury-related traffic fines to $300. 6

State TIF Cap (HB 514) Sponsor: Rep. Mike Leara • Status: Passed • The bill raises the $32 million annual cap on the state's TIF program by $4 million for the Fenton Logistics Park and $12 million for the National Geospatial Agency. • KP Development and the City of Fenton, MO are pursuing the redevelopment of the former Chrysler assembly plant. The project, known as the Fenton Logistics Park, would house the state's secondlargest intermodal facility and an accompanying industrial park. • The National Geospatial Agency is currently evaluating four sites for the relocation of its facility in south St. Louis City. The potential Missouri sites are in north St. Louis City, the Fenton Logistics Park, and Mehlville. They are also evaluating a site adjacent to the Scott Air Force base in southern Illinois. 7

Items That Did Not Pass, That We May Revisit Next Year • Transportation Funding • Medicaid Expansion • Ride-Sharing Restrictions • Transportation Development District Reform 8

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