Late last week Governor Jay Nixon signed into law Senate Bill 108, the HBA’s main legislative priority of 2011. This law prohibits local governments from mandating residential fire sprinklers and extends the consumer option until December 31, 2019. That prohibition, passed originally in 2009, was set to expire at the end of 2011. Builders must still continue to offer the home purchaser of one and two family homes the option of installing a fire sprinkler system at the purchaser’s expense.*
In other action of interest to the industry this week, House Bill 45, sponsored by Representative Hoskins, was truly agreed and finally passed. This bill changes the laws regarding the Big Government Get Off My Back Act and provides an income tax deduction for certain small businesses that create new full-time jobs. Another bill your HBA lobbying and advocacy team is following, sponsored by Senator Jack Goodman, would protect Missouri employees from personal lawsuits for their role in honest accidents at work. Senate Bill 8 would restore protections to co-employees meaning they would no longer be at risk of personal lawsuits for their role in honest accidents at work. The bill would abrogate an appeals court decision in Robinson v Hooker that opened up co-employees to this higher risk. The decision was made in the Western District of Missouri on August 3, 2010. Consensus is that this legislation still has a strong possibility of passing but there are now only two weeks left in the session.
Senate Bill 101, sponsored by Senator Parson creates requirements for contractors who perform home exterior and roof work is also being monitored by the HBA. It is far enough along in the process that it appears it could pass this session. We anticipate there may be technical challenges with this, should it become law, that may not be beneficial to homeowners and punitive to legitimate contractors. However, if it does pass and creates unintended consequences for the broader industry, Parson has communicated he is very willing to make amendments in the future to address such issues.
Finally, Governor Nixon vetoed one of the Missouri Chamber’s “Fix the Six” bills this week dealing with employment law reform, designed to help Missouri more attractive to potential employers considering locating in the state. The Governor did sign into law another one of the “Fix the Six” priorities, Senate Bill 19 which will institute a five-year phase out of the corporate franchise tax. Beginning January 1, 2012, the corporate franchise tax rate will be gradually reduced over a five year period until it is completely phased-out. Missouri is one of a few states that impose both a corporation income tax (a tax on income) and a franchise tax (levied on assets, regardless of profitability). Elimination of the franchise tax will protect Missouri companies that want to expand or bring additional assets into Missouri.
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* In 2009, the HBA of Greater Springfield and other HBA affiliates successfully advocated to pass the original “mandatory offer” statute, currently in effect in the state. This prevented adoption of code requiring fire sprinklers in new homes and left the choice where it belonged — with the homeowner. Under this provision, builders are obligated to offer installation of a fire sprinkler system on a new custom or spec home. The provision has proven to be a reasonable and workable solution to the question of whether to mandate residential fire sprinkler systems, but it is set to expire at the end of 2011. Apart from the extension signed into law by the Governor, mandatory residential fire sprinkler systems likely would have become the norm in code-adopting jurisdictions throughout Missouri.
Download sprinkler informational pamphlet builders can give to customers
Download sprinkler option accept/decline form for home buyers