Capitol Report: July 3, 2019

Around the State

The good news for the Missouri economy continues. Creighton University just released a monthly report showing signs of continued growth for Missouri and our neighbors. Although the continuing tariff struggle with China continues, the signs of growth remain in the Midwest.

Flooding and the tariff battle had some effect on the Midwest, but optimism runs high in the region. The Mid-America Business Conditions Index remains high at 55.4 in June, up from 54.3 in May. The index predicts growth for any scores above 50. The region includes Arkansas, Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota, Oklahoma and South Dakota. More on this story can be found at: http://www.newstribune.com/news/business/story/2019/jul/01/survey-suggests-midwe... .

The Department of Conservation has announced that elk hunting may begin as early as next year: https://www.ksmu.org/post/mdc-proposes-framework-elk-hunting-season#stream/0 .

Finally, this week I will continue with a summary of Truly Agreed and Finally Passed (TAFP’d) bills. This week I will once again summarize by House bills by number. This is the last of the House bills passed in 2019.

Bills Truly Agreed and Finally Passed (TAFP’d)

SS SCS HCS HB 959 — MOTOR VEHICLE FRANCHISE PRACTICE ACT

Currently, limited liability companies leasing real property to others or owning unoccupied real property in Kansas City or the City of Independence are required to file with the city clerk an affidavit naming a natural person with control of the property and his or her street address. The bill adds St. Joseph to the cities requiring these affidavits.

The bill clarifies that certain corporate offices for organizations regulated under Chapter 351 may be held by different persons if permitted by the bylaws or articles of incorporation of such corporations. This bill repeals an existing provision of the Motor Vehicle Franchise Practices Act (MVFPA) regarding coercion of franchisees to alter their facilities, and enacts new prohibitions against coercion. The bill prohibits franchisors and manufacturers from requiring or coercing franchisees to construct improvements or install signs or franchise elements at facilities which would replace or substantially alter improvements, signs, or elements completed and approved within the last 10 years. Franchisors and manufacturers may require routine maintenance.

This bill prohibits manufacturers and franchisors from requiring franchisees to purchase goods or services, without reimbursement, used to make improvements to the franchisee's facility from a vendor selected by the manufacturer or franchisor without giving the option to obtain comparable goods or services from a vendor chosen by the franchisee and approved by the franchisor or manufacturer. Franchisors and manufacturers must not unreasonably withhold approval. The 10 year period specified in this bill will initiate on the date the manufacturer or franchisor gave final written approval of the facility, improvement, sign, or franchise element, or on the date the franchisee receives a certificate of occupancy for the facility, whichever is later.

It does not prohibit manufacturers or franchisors from requiring changes or updates to signs that contain intellectual property governed by federal law more frequently than every 10 years, provided that the manufacturer or franchisor must offer the franchisee full compensation for the sign if changes are required less than five years apart.

SS HCS HB 1088 -- OFFICE OF ADMINISTRATION (THE MILLION DOLLAR BOONDOGGLE BILL)

This bill modifies laws relating to the Office of Administration and state agencies. In its main provisions, the bill:

• Requires the Office of Administration to submit a report on specified projects that are one year behind schedule or $1 million or more over original cost estimates to the General Assembly. State agencies and divisions must submit information to the Office of Administration as specified in the bill. Criteria for the report are also specified in the bill. The report shall be posted to the Office of Administration website;
• Requires all state purchases in excess of $10,000 to be based on competitive bids with specified exceptions.
• The commissioner is authorized to hold reverse auctions for the purchase of merchandise, supplies, raw materials, or finished goods if price is the primary factor evaluating bids.
• Authorizes departments to purchase products and services related to information technology under certain conditions, including when the purchase does not exceed $150,000 and the department complies with the informal methods of procurement for expenditures of less than $100,000. Currently, the purchase cannot exceed $75,000 and the maximum threshold for informal methods of procurement is $25,000;
• Modifies several provisions by removing the requirements that the Secretary of State publish the Missouri Register or the Code of State Regulations in written format. This bill specifies that at the time of, or prior to the adoption of a rule, an agency must file with the Secretary of State and the Joint Committee on Administrative Rules the fiscal note for the rule. Fiscal notes for emergency rules will only reflect the cost of such rules during the time of their implementation. As soon as practicable after a filing by an agency of materials under these provisions, the Secretary of State must publish the materials in the Missouri Register and, within three business days of the filing, email the materials to persons who have registered to be notified of the agency's actions through the Secretary of State's administrative rules notification system and publish the materials on the official website of the Secretary of State;
• Allows fees to be charged regarding state agency use of electronic payment systems if there is a positive fiscal impact to the state as specified in the bill; and
• Specifies certain criteria for higher education institution concession agreements with development

Again, this completes the list for House Bills. Next week will begin Senate bills. For more complete information on each bill, please see: https://house.mo.gov/LegislationSP.aspx

It is an honor to serve the 51^st District in the Missouri House of Representatives. Each week I will issue a capitol report to keep you informed of activities in Jefferson City. Any concerns or issues you might have are of great interest to me. I look forward to your input and thoughts, so please feel free to contact me at any time if you have questions, concerns, or ideas to improve our state government and the quality of life for all Missourians. My telephone number is 573-751-2204 or you may contact me by email at dean.dohrman@house.mo.gov. Thank you for working with me to make Missouri a great place to live.