Small Business Legislative Update: March 3, 2005

Wednesday, March 3, 2005

Bill Proposes to Create a Missouri Catalog of Assistance Programs

Bill proposes to allow small businesses a one stop website to search for state grants and contracts. On February 23, a public hearing was held discussing a bill that would establish the Missouri Catalog of Assistance Programs. This Missouri Catalog would mirror the Catalog of Federal Domestic Assistance and should increase the effectiveness of state programs and deter the need to send out mailings from individual agencies. A one stop web-site would be created and would be funded by the agencies listed in the site. Advisory services and counseling programs would be included in the catalog. Bill HB32 is assigned to the House Job Creation and Economic Development committee and can be viewed at the Missouri House site at: www.house.state.mo.us/bills051/biltxt/intro/HB0032I.htm.

Bill Seeks to Strengthen the Small Business Regulatory Fairness Board Legislation

A broader definition of small business and strengthening of the Small Business Regulatory Fairness board are being proposed. The Small Business Regulatory Fairness Board provides that state agencies that are writing regulations must consider the impact of regulations on small business and provide, where possible, alternative compliance methods for small business. The definition of small business would be broadened by increasing the number of full and part-time employees a business may have from no greater than 50, to up to 100 employees. The bill increases the power of the board by requiring agencies to not only provide a small business impact statement upon a new rule, but also provide the board with a description of how opinions of small business were solicited, a summary of those comments and any responses, and the number of attendees, who testified and a written comments from a public hearing. If a request was made from a small business to change the rule, a statement of reasons for adopting the proposed rule without the requested change must be placed in the small business impact statement. The bill also broadens the abilities and discretion of the board as well as allowing small business to seek declaratory judgments without first exhausting all administrative remedies if the agency has materially violated the requirements of considering the impact on small business and alternatives to the rule and in providing the small business impact statement.

The bill has been introduced and read for a second time and is likely be assigned to committee. Bill HB576 can be viewed at the Missouri House site at: www.house.state.mo.us/bills051/biltxt/intro/HB0576I.htm.

Bill Attempts to Increase the Dollar Value of Cases That Small Claims Court Can Hear.

Missouri small businesses can turn to small claims court for larger dollar value claims under this bill. The Missouri small claims courts currently have a dollar value limit to a claim of $3,000, the proposed bill will up that limit to $5,000. The bill has been introduced and read for a second time. Now the bill will likely be assigned to committee. Bill HB582 can be viewed at the Missouri House site at: www.house.state.mo.us/bills051/biltxt/intro/HB0582I.htm

Small Employers Will be Allowed to Obtain Medical Coverage under the Missouri Consolidated Health Care Plan

Small Employers may soon have another source for health care coverage. The state employee Missouri Consolidated Health Care Plan would be open to small employers who average one to 50 employees throughout the year. This would generally include sole proprietors and partnerships. The bill would place premiums, payments, or other income from coverage provided to small business in a separate benefit trust account. The MCHCP can viewed at: www.mchcp.org/. The bill has been introduced and read for a second time and the bill has been assigned to the Senate Small Business, Insurance & Industrial Relations Committee. Bill SB277 can be viewed at: www.senate.mo.gov/05info/billtext/intro/SB277.htm.

Bill Requires Only U.S. Citizens or Lawful Workers be Employees of Contractors or Subcontractors Working on State Service Contracts.

Small businesses awarded state contracts must use only U.S. citizens or lawful workers. Bill states that state service contracts must include provisions which specify that only U.S. citizens or persons authorized by federal law to work in the U.S. will be employed in the performance of services under the state service contract or subcontracting. The bill has been introduced and read for a second time and the bill has been assigned to the House Job Creation and Economic Development committee. Bill HB158 can be viewed at: www.house.state.mo.us/bills051/biltxt/intro/HB0158I.htm

Tort Reform Bill Limits Forum Shopping and Damages

Business owners would have limits on the court location and amount sought in state lawsuits. The legislation would remove the ability to bring a tort lawsuit in an area that is known for higher dollar awards, or "forum shopping". The bill also limits the amount of money that the plaintiff can ask for, limiting the amount to the cost of actual damages, and limiting punitive damages to $250,000 and non-economic damages to $250,000. Previously plaintiffs could request complete payment from one defendant no matter the actual fault of that defendant under joint and several liability. Now defendants only have to pay for the percentage of damages they caused. The bill has passed the House with few amendments by a 106-52 vote and is now before the Judiciary &Civil &Criminal Jurisprudence committee of the Senate. Bill HB393 can be viewed at: www.house.state.mo.us/bills051/biltxt/perf/HB0393P.HTM.

This legislative update is provided to small business owners as a service of the Missouri Small Business Development Centers. Entrepreneurs are encouraged to contact their legislators to express their opinions on these bills. You can find your legislators' contact information here: www.senate.mo.gov/llookup/leg_lookup.aspx

Committees for those bills discussed can be contacted here:

• Senate Small Business, Insurance & Industrial Relations Committee
  www.senate.state.mo.us/05info/comm/sbir.htm
  
  
• Senate Judiciary & Civil and Criminal Jurisprudence Committee
  www.senate.state.mo.us/05info/comm/judi.htm
  
  
• House Job Creation and Economic Development Committee
  www.house.state.mo.us/bills051/commit/com172.htm