|
January
18, 2012
Missouri Senate
Majority Floor Leader Tom Dempsey Addresses Key Business Issues
in Presentation to RCGA's Public Policy
Council
|
MO Senate Majority Floor Leader Tom
Dempsey
|
On Friday, January
13th Missouri
Senate Majority Floor Leader Tom Dempsey (R-St. Charles)
spoke to the RCGA's Public Policy Council about his
caucus's goals for the 2012 session, which include
passing a balanced budget without increasing taxes, and
spurring job creation by improving the state's business climate
and education system. Sen. Dempsey noted that
Missouri was one of only a few states to maintain a AAA bond
rating by making tough but fiscally prudent decisions during the
economic downturn. However, he explained that this year
will be especially challenging, as the state faces a budget
shortfall of more than $400 million.
Sen. Dempsey also described the employment
challenges facing Missouri, noting that more than 8.2%
of the state's workforce has been unemployed for three
years. He said that the Senate Republicans are working to
improve Missouri's business climate so that all employers, from
small businesses to large corporations, can create more
jobs. Their plan focuses on curbing excessive
government regulations and reforming the state's employment laws
and workers' compensation system. Sen. Dempsey
said that few things can halt private sector growth as quickly as
bureaucratic red tape, and that the Senate is looking at a review
process and sunsets for all state rules and regulations. He
also said that they want to protect employers from lawsuit abuses
and bring Missouri law in line with the federal Civil Rights
Act's standard of discrimination in wrongful termination
lawsuits. Sen. Dempsey noted that he is the lead sponsor of
a comprehensive workers' compensation reform bill
that would address the state's insolvent Second Injury
Fund, co-employee liability, and occupational disease, and that
there would be renewed focus on passing the bill this year.
(For more information on employment law reform and workers'
compensation reform, which are key priorities of the RCGA and the
2012 Missouri Business Climate Agenda, see the story
below). Finally, Sen. Dempsey told the group that the
Senate would continue to prioritize education and workforce
development, ending the cycle of failing school districts and
addressing the under-funded Foundation Formula.
|
Gordon Reel, Vice Chair of the RCGA's
Public Policy Council
|
The Public Policy Council also heard from its
Chair, Ted Powers of Anheuser-Busch, and
Vice Chair, Gordon Reel of Enterprise
Holdings, on the 2012 Missouri Business Climate
Agenda, which is centered on employment law reform,
workers' compensation reform, and tort reform. These
legislative priorities impact all Missouri
employers, are revenue-neutral, and
have a broad consensus across the Missouri
business community. Gordon and Ted noted that the coalition
of business organizations supporting the initiatives was
successful last year in passing several priorities, and that with
three main issues this year the group will be even more focused
and diligent in pursuing legislative victories.
They praised Sen. Dempsey and Sen. Lager for sponsoring
comprehensive workers' compensation and employment law reform
bills, and lauded the Senate for acting quickly to hear
both bills in committee last week.
|
RCGA lobbyists Kim Tuttle (at
podium) and Tricia
Workman
|
RCGA lobbyists Kim
Tuttle and Tricia Workman also briefed the Public Policy Council on the
Missouri session and upcoming elections. They expect this
session to be particularly difficult given the budget challenges,
termed legislative leaders in both chambers, lopsided partisan
divide, and elections in new legislative districts this
November. They said House and Senate leaders are committed
to balancing the state's budget without tax increases, improving
Missouri's business climate and addressing education issues, but
neither chamber has shown much appetite for economic development
bills this year. They also mentioned Governor Jay
Nixon's new jobs plan called "Missouri Works," saying
that more details on this plan and the budget were expected at
his State of the State address.
Kim and Tricia also provided an overview of
the November elections, noting that there were many statewide officials
up for re-election including the Governor, Lt. Governor,
Treasurer and Attorney General, and that the Secretary of State
was an open race. There are also many contested races in
the state legislature, with more than 26 House districts with two
or more incumbents due to redistricting. Ten state senate
seats will be open due to term limits, and at least three state
senators are expected to face challengers in the primary or
general election. [Editor's
Note: On January 17th the
Missouri Supreme Court voided the redrawn State Senate districts,
saying the first map was unconstitutional because it divided two
counties into too many districts, and the appellate panel did not
have the authority to submit a second version. The Governor
will now appoint a new commission to redraw the Senate
districts. Candidate filing is scheduled to begin on Feb.
28th.]
|
|
RCGA Joins Coalition in Announcing 2012 Missouri
Business Climate Agenda
On January
3rd the RCGA joined with a wide variety of Missouri
business and industry groups to present the 2012
Missouri Business Climate Agenda, a unified legislative
agenda that focuses on three main areas of reform that lawmakers
should address this session: employment law reform, workers'
compensation reform, and tort reform. These legislative
priorities impact all Missouri employers, are
revenue-neutral, and have a broad
consensus across the Missouri business community.
EMPLOYMENT LAW
REFORM
--
Over the past decade Missouri has seen a troubling
trend of court decisions eroding the intent of Missouri
employment laws. The business coalition seeks to
strengthen and restore balance to these laws by
limiting individual liability of managers and supervisors,
mirroring the federal standard of proof in discrimination
cases, tightening "whistleblower" protection to apply
only when an actual illegal act is involved, implementing
reasonable damage caps, and ensuring that workers terminated for
violations of state or federal law do not receive unemployment
benefits.
WORKERS' COMPENSATION
REFORM --
Reforming Missouri's workers' compensation system is a top
priority of the coalition because it affects all employers as
payers into the system. The business coalition seeks to
ensure that employees who contract occupational diseases
are allowed to continue to have their claims covered
under the state's workers' compensation system. The group
also seeks to address co-employee liability,
protecting workers from being sued for accidental work-related
injuries to fellow employees while acting in the regular course
of employment. The coalition also seeks to fix the state's
insolvent Second Injury Fund by tightening
access to benefits so that they are available for the most
deserving Missouri employees, and allowing for an increase in the
surcharge paid by employers to support the Fund.
TORT
REFORM -- Missouri's joint and
several liability law currently states that a business can be
held liable for the entire cost of litigation if it is found to
be at least 51% at fault in the case. The coalition
advocates for a more fair liability system that
apportions cost among all parties based on each party's actual
percentage of fault. The coalition also supports a
"loser-pays" fee structure where a plaintiff who
files an unsuccessful lawsuit is responsible for covering the
defendant's attorneys' fees, "permit shield"
legislation that will protect Missouri employers from nuisance
lawsuits if they are operating in accordance with valid
government permits, and premises liability
reform to protect commercial property owners from
lawsuits for certain events that occur on their property, such as
trespassers who injure themselves or criminal acts of third
parties.
In addition to the RCGA, the
2012 Missouri Business Climate Agenda is supported by many other
prominent business organizations, including the Missouri
Chamber of Commerce and Industry, the National Federation of
Independent Business (NFIB), Associated Industries of Missouri
(AIM), the Missouri Merchants and Manufacturers Association, the
Missouri Grocers Association, the Missouri Restaurant
Association, Associated General Contractors of Missouri, the
Greater Kansas City Chamber of Commerce, and the Springfield Area
Chamber of Commerce.
|
Representatives of the various business
organizations and industry groups in the coalition supporting the
2012 Missouri Business Climate Agenda pose for a picture after
the January 3rd press conference at the State
Capitol.
|
|
|
Focus on Illinois: State Budget and Pension
Reform Top Lawmakers' Agenda for the Upcoming Legislative
Session
|
State Capitol Building in Springfield,
Illinois.
|
In anticipation of the Illinois
General Assembly reconvening on January 31st, Governor Quinn and lawmakers have
been discussing their top priorities for 2012, which include the
state budget and pension reform. Other issues at
the forefront of discussion include the rising cost of Medicaid,
the state's backlog of unpaid bills, and
workers' compensation reform.
The Governor's Office of Management &
Budget recently released a three-year budget projection,
which includes a deficit of more than $500 million in the current
fiscal year, and a deficit of more than $800 million in FY 2015
when the state's temporary income tax increases are set to
expire. The projection also includes just $1 billion over
three years toward the $6 billion backlog of unpaid bills.
The Governor is scheduled to release his annual budget proposal
on February 22nd. While details are not yet
clear, the Governor has mentioned that most state operations
could see their budgets cut by 9% to avoid further cuts to
education and healthcare.
One of the main problems cited by the Governor's
budget director is that pension and Medicaid costs are increasing
faster than the rate of inflation and the state's revenue growth,
which puts pressure on other areas of the budget.
The Illinois pension system currently faces an $85
billion shortfall due to consistent underfunding and the economic
downturn. Approximately 13% of the state's
operating budget goes toward pension contributions. Last
year attempts were made to reform the system by offering public
employees a choice to keep their current pension plans and pay
more, accept reduced benefits, or enroll in a
defined-contribution plan. However, some Democratic
lawmakers are concerned about the Constitutionality of such a
proposal. Governor Quinn has said that pension reform will
be a top priority of his this year, and that he will ensure it is
done in a "fair and Constitutional manner."
Another area of reform that is attracting some
attention is the state's workers' compensation
system, which was the target of modest reforms last
year. While the reforms passed in 2011 were a step in the
right direction and are estimated to save employers some $300
million, the bill stopped short of strengthening the state's
causation standard for workers' compensation claims.
Passing a stronger causation standard that requires injuries to
have occurred in the workplace would keep costs down and improve
the state's business climate.
|
|
RCGA Hosts First Missouri Legislative Breakfast of
2012
On January 11th the RCGA hosted the first
of its Missouri Legislative Breakfasts in Jefferson City honoring
members of the General Assembly. The breakfast, which
attracted more than 70 attendees, was sponsored by the RCGA's
2012 Government Affairs Sponsors:
 |
|
RCGA Board member and Ambassador Sponsor
Dr. Myrtle Dorsey (left),
Chancellor of St. Louis Community College, with Rep. Anne Zerr
(R-St. Charles), Chair of the House Economic Development
Committee.
|
Sen. Jay Wasson (R-Nixa)
(left)
and
Sen. Ron Richard (R-Joplin) start their day with a smile and a
hot breakfast.
|
|
|
House Speaker Steven Tilley (R-Perryville)
(left) visits with Rep. Wayne Wallingford
(R-Cape Girardeau).
|
(from
left) Presidential Sponsor Craig Unruh, Vice President of
External Affairs for AT&T Missouri, Rep. Eileen McGeoghegan
(D-St. Ann), and Rep. Mike Leara (R-St. Louis
County).
|
|
|
House Speaker Pro-Tem Shane Schoeller (R-Willard)
(standing) chats with colleagues
Rep. Ed Schieffer (D-Troy)
(left)
and Rep. Lindell
Shumake (R-Hannibal).
|
(from
left) Ambassador Sponsor Ann Brand, Director of
Government Affairs for St. Louis Community College, shares a
laugh with Rep. Doug Funderburk (R-St. Peters) and Rep. Margo
McNeil (D-Florissant).
|
 |
 |
Sen. Scott Rupp (R-Wentzville)
(left), Chair of the Senate Small Business, Insurance and
Industry Committee, with Presidential Sponsor Craig Unruh,
Vice President of External Affairs for
AT&T Missouri.
|
More than 70 legislators and RCGA members
stopped by the RCGA's legislative breakfast
at the Doubletree Hotel in Jefferson City.
|
|
|
|
|
| |
|
