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Legislative update: Real ID stalls, income tax cut proposed

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Editor’s Note: Below are articles on recent Missouri General Assembly moves provided to Springfield Business Journal by the Missouri Press Association.


Real ID debate stalls in Senate
After an almost three-hour debate filled with long speeches and abstract rhetorical arguments on Feb. 22, Missouri's nearly 12-year trek toward compliance with Real ID has hit another roadblock.

The Missouri Senate debated a bill sponsored by Sen. Ryan Silvey, R-Kansas City, which would make Missouri compliant with the Real ID Act.

Senators decided to table the bill until possibly late March.

Passed by Congress in 2005 as a response to the terrorist attacks of Sept. 11, 2001, the law mandates that states store the personal information needed to obtain a state-issued identification. The federal government argues the standards protect the United States from potential terrorists and against identification fraud by immigrants living in the country illegally.

After years of extensions, the federal government has set a hard date for Missouri to comply: Jan. 22, 2018. The state is one of five that are currently noncompliant.

If the Missouri General Assembly fails to pass Real ID legislation, Missourians will be unable to board domestic flights, enter federal buildings or military bases with state-issued identification and will instead need to obtain passports, which can cost more than $100.

Historically, opposition to the law has cited privacy concerns stemming from the Missouri Department of Revenue retaining copies of personal documents such as birth certificates and social security cards.

In 2009, the Missouri legislature, with the approval of former Gov. Jay Nixon, forbade the Department of Revenue from complying with the federal law.

Sen. Will Kraus, R-Lee's Summit, has taken the mantle of opposition this year.

"I see this as a simple case of government overreach and a violation of the 10th and 4th amendment of the Constitution,” said Kraus, referring to the amendments governing search and seizure and state's rights.

Senate committee considers proposal to eliminate state income tax
Missouri’s income tax and the level of state spending came under attack on Feb. 21 during a state Senate committee hearing.

A constitutional amendment heard by the Ways and Means Committee would eliminate the state income tax and cap state general spending, pushing the state government to be more selective with the money it generates.

Several people offered testimony to the committee on the amendment.

“I think the goal here is to ensure taxpayer dollars are utilized properly and that government spending doesn’t increase too dramatically,” said Jeremy Cady, director of the Missouri branch of Americans for Prosperity, a grassroots organization that advocates for lower taxes and less government regulation.

State Sen. Bill Eigel, R- St. Charles, said the amendment he sponsored reflects a desire among Missouri voters for less government regulation.

"Overwhelmingly present in the voters that I spoke with was a dissatisfaction with the growth and overreach of the government at all levels: federal, state and local,” Eigel said.

The amendment would cap spending at the previous year's rate, except to accommodate the rate of inflation and population growth.

Opponents argue a cap on spending will limit the ability of legislators to advocate for their constituents' budget priorities.

More than two dozen bills would limit Missourians’ ability to sue
Missourians who sue a company, employer or physician will face more obstacles if a slew of bills making their way through the Missouri General Assembly become law.

Bills introduced in both the Missouri House and Senate, if passed, would result in significant changes to how and where class action lawsuits can be filed, the amount of damages a plaintiff may pursue and who could be held liable.

Supporters of the more than two dozen bills currently making their way through the legislature said they believe that the legal climate in Missouri, specifically St. Louis, inflates insurance costs and deters businesses from coming to the state. In his State of the State address in January, Gov. Eric Greitens cited lawsuits brought under the Missouri Merchandising Practices Act as an obstacle to economic growth.

“Our judicial system is broken, and the trial lawyers who have broken it, well, their time is up,” Greitens said during the address.

Each of the tort bills introduced so far have been sponsored by Republicans.

Critics of the proposed policies say the bills would create all but insurmountable barriers for someone bringing a lawsuit in the state of Missouri, making it difficult, if not impossible, for people who have been wronged to seek remuneration in the civil court system.

"I have yet to see solid evidence of any tort reform bill reducing insurance costs," said Rep. Gina Mitten, D-St. Louis. "Each and every one of these bills are to create barriers for people to sue."

‘Right to shop’ bill could reduce Missourians’ health care costs
Health care is a lucrative business for hospitals, doctors and insurance providers. Why not patients?

That would be one result of a set of bills proposed by Rep. Keith Frederick, R-Rolla, that would make Missouri one of a handful of "right to shop" states in the country.

Right to shop laws aim to incentivize patients to find cheaper health care. Patients could compare costs and select a cheaper provider, and insurance companies would be required to split the difference between the initial estimate and the cheaper alternative with the patient.

"This bill would require that insurance companies share the savings with the citizens," Frederick said.

To use an example given by Frederick during the hearing, if an insurance company planned to shell out $2,000 to a patient and the patient found a doctor who would perform the procedure for $1,000, the insurance company would cut a check for $500 to the patient.

True cost of voter ID still unknown
The cost of Missouri's new voter identification law is still up for debate, as legislators and government officials present wildly different numbers.

Cost estimates range from $300,000 to millions of dollars.

The voter ID law, which was passed in Missouri last year, requires voters to present photo identification at polling locations, though if one doesn't have identification, provisional ballots are provided.

In order to ensure that low-income voters are not disenfranchised, the law states the Missouri government must pay for nondriver’s licenses and backing documents — paperwork such as birth certificates or divorce papers needed to obtain an ID. Advertisements also are required to ensure Missouri residents are aware of the changes.

The changes take effect June 1.

To pay for implementation, Greitens has recommended a total of $300,000 for the licenses, IDs and advertisements. While some legislators, most notably Sen. Will Kraus, R-Lee's Summit, and Rep. Justin Alferman, R-Hermann, say this is sufficient, other government officials disagree.

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