MPCA NEWS . ONLINE .
573.635.7117 phone • 573.635.3575
fax • www.mpca.org • © MPCA 2008
MAY 20, 2008
2008 LEGISLATIVE
REPORT: ANOTHER FANTASTIC YEAR FOR MPCA AND OUR INDUSTRY!
I. REFLECTIONS.
When I first started this job
almost 8 years ago on June 1, 2000, I thought the legislative and regulatory
focus for fuel marketers, fuel retailers and convenience store owners would be
fairly narrow. Boy, was I ever wrong!
Almost every MPCA member is
involved in some way with fossil fuels, renewable & alternative fuels, fuel
mandates, fuel tanks & fuel pumps, environmental issues, transportation
expansion & funding, tobacco, alcohol, rolling papers, fast-food,
non-prescription cold medicines (meth precursor
ingredients), adult magazines, billboards and lottery tickets (gambling).
These items and issues are
highly taxed, highly regulated, highly political and highly visible to the
public - including elected officials - making the state and federal legislative
and regulatory scope of MPCA and our industry extraordinarily broad.
It’s because of this high
level of scrutiny and regulation that our industry and our Association must
remain united, strong and eternally vigilant.
Never forget that MPCA exists
for one simple but profound reason - there is strength in numbers. Together we
can accomplish so much more than any single member - no matter how large or
well-connected - can accomplish individually.
Patriot and
Founding Father Benjamin Franklin said it best: “We must all hang together, or
assuredly we shall all hang separately”.
Thank you for your ongoing
investment in the only statewide retailer association 100% dedicated to maintaining
a competitive business climate that will encourage the growth of the
independent petroleum marketing and convenience store industry within the state
of
II. THE 2008 SESSION: OVERVIEW.
The 2008 Missouri Legislative
Session commenced on Wednesday, 1/9/08, and ended at 6:00 PM on Friday,
5/16/08.
The Missouri Legislature
filed 1,938 bills – 577 Senate Bills, 22 Senate Joint Resolutions
(Constitutional amendments), 1,297 House Bills and 42 House Joint Resolutions
(Constitutional amendments). MPCA was actively tracking more than 180 of these
filed bills and resolutions.
In the end, the Legislature
passed 138 bills – 61 Senate Bills and 77 House Bills. Many of these passed
bills contained the contents of multiple other filed bills and thus were
hundreds of pages in length.
The total budget passed by
the Missouri Legislature for FY 2009 (7/1/08 - 6/30/09) is $22.4 billion. For
comparison purposes, the total budget for FY 2008 was $21.5 billion.
III. THE 2008 SESSION: SPECIFIC ISSUES
& BILLS.
For the eighth year in a row,
MPCA has had an outstanding and highly successful Legislative Session.
The following, which is in no
particular order, details the fate of the key issues and bills MPCA was
pursuing, supporting, opposing or monitoring in 2008. This is by no means a
complete list of all the bills MPCA was tracking. Please understand that
oftentimes multiple bills were filed on the same topic. For example, several
bills were filed trying to address underage access to alcohol and tobacco
products.
On or before 7/14/08,
Governor Matt Blunt must sign, veto or “pocket sign” (automatically becomes law
if no action taken by the Governor – see Missouri Constitution, Article III,
Section 31) all duly passed bills. Unless otherwise indicated in the bill
itself, a signed or “pocket signed” bill will become effective on August 28,
2008.
Although it’s highly unlikely
that Governor Blunt will call a “Special Legislative Session”
on any of MPCA’s issues, I will keep you
posted when and if further details become available.
Disclaimer. Dozens of bills and amendments passed and failed in the last few days
of the 2008 Legislative Session. Therefore, there is a small chance that MPCA
may need to update this Legislative Summary when the final bills have been
officially printed and in the event that some insidious language was amended
onto a final bill that eluded our combined vigilance.
1. MOTOR FUEL TANKS & THE PSTIF: SB 907.
SB 907, the Petroleum Storage
Tank Insurance Fund (PSTIF) bill which was passed by large majorities in the
Senate (32 to 1) and House (135 to 9), accomplishes many good things including
but not limited to:
a. PSTIF Sunset Extension. Extends the PSTIF sunset date by 10
years, from 12/31/10 to 12/31/20. PSTIF is the single most effective
environmental and pollution prevention program in
b. Fuel Delivery
Prohibition. Incorporates
MPCA & DNR compromise fuel delivery prohibition or “red-tagging” language
mandated by Congress in the 2005 Federal Energy Bill.
c. ASTs
- Aboveground Fuel Storage Tanks.
Requires retail ASTs to have & maintain financial
responsibility. The financial responsibility for retail ASTs
can be obtained through PSTIF, posting a bond, or a private insurer. SB 907
specifically exempts farm and agriculture ASTs from
this financial responsibility requirement.
d. RBCA - Risk Based
Corrective Action. The RBCA statute –
section 319.109, RSMo - was passed in 1995, more than
12 years ago, and DNR has not yet promulgated rules. This language would
require that DNR propose RBCA rules by February 13, 2009.
e. PSTIF
f. Environmental
Covenants. Environmental covenants
are “clouds on the title” which attach to and follow the deed so that future
buyers are put on notice that the real property in question has been the
subject of an environmental cleanup. SB 907 completely exempts fuel tanks from
the environmental covenant requirement passed by SB 54 in 2007.
g. PSTIF Coverage. Clarifies that total PSTIF coverage for cleanup costs
+ property damage + bodily injury is $1 million per occurrence or $2 million in
the aggregate per year.
h. Board Rulemaking
Authority. Gives
the PSTIF Board rulemaking authority for annual tank fees, site assessments
& surcharges.
i. Cleanup Responsibility. Specifies that after 12/31/17 the owner of real
estate where tanks were taken out of use by December 31, 1997 is responsible
for any additional cleanup instead of the person who owned and/or operated the
tanks 20, 30 or 50+ years earlier.
In other words, this change
would give DNR the authority to compel the current property owner to do the
cleanup and pay the $10,000 PSTIF deductible instead of someone who owned or
operated the tanks 20, 30 or even 50+ years earlier. The language does not
alter or diminish in any way PSTIF’s responsibility
to pay to cleanup these tank sites.
Sen. Kevin Engler & Rep.
Shannon Cooper. Every MPCA
should pick up the phone right now and call both Sen. Kevin Engler
– 573.751.3455 – and Rep. Shannon Cooper – 573.751.1484 – and simply thank them
for all of their hard work & dedication in passing SB 907! FYI, Sen. Engler is seeking reelection this year while unfortunately
Rep. Cooper is term limited and can’t seek reelection.
2. FUEL ISSUES.
a. Fuel Tax Increase. No bill filed or passed.
b. Defines & Prohibits “Price Gouging”. Did not pass. HB 1496 (Rep. Bruns,
c. Charges Additional Fees For A Gasoline Vapor
Construction Permit. Did not pass.
d. $3 Per Gallon Price Cap. Did not pass. HB 1721 (Rep. Talboy,
e. Must Post Fuel Prices
24-Hours In Advance. Did not pass. HB 1924 (Rep. Frame, D-Eureka), would have
required fuel retailers to “conspicuously
post prior to any sales that day the selling price of gasoline or diesel fuel
for the next day.”
f. State Fuel Tax “
g. Automatic Reduction In State Fuel Taxes If Per
Gallon Pump Price Reaches A Certain Amount. Did not pass.
h. Repeal Of The 2006 10%
Ethanol Standard. Did
not pass.
i. Mandates Temperature Compensation
Equipment At Retail. No bill filed or
passed.
j. 5% Biodiesel
Mandate. Did not
pass.
k. Regulates Motor Oil & Lubes. Did not pass. Even with the
Missouri Department of Agriculture and MPCA’s
support, SB 898 and HB 1590 did not pass due to strong opposition from a small
number of very motivated Senators.
l. Exempts Motor Fuel Used For “Agriculture Purposes”
From State & Local Sales Tax. Passed. See SB 931, section 142.063, RSMo.
m. Tax Credits For Renewable
Fuel (Biodiesel & E-85) Infrastructure. Passed. Provides
for a tax credit of up to $20,000 for “qualified alternative fuel vehicle refueling
property”. Tax credit is available between 1/1/09 through 12/31/11. See
SB 931, section 135.710, RSMo. Apparently, this state
tax credit can be used in addition to similar federal tax credits.
3. TOBACCO ISSUES.
Never forget that the true goal of most of the
legislation detailed below is not to reasonably regulate and tax tobacco
products but to ultimately outlaw tobacco products by slowly and inexorably
increasing taxes, regulations and bureaucracy on tobacco products and tobacco
retailers. MPCA refers to this legislative strategy by the anti-tobacco zealots
as a “death by a thousand cuts”, and our industry must remain ever vigilant.
a. Tobacco Tax Increase. No bill filed or passed.
b. Dedicates Master Settlement Agreement (MSA) Funds For
Smoking Prevention & Cessation. Did not pass.
c. Mandates Retailer Registration & Licensure. Did not pass. HB 1580 (Rep. Bruns,
d. Requires That Tobacco “Paraphernalia” Be Kept
Behind The Counter. Did not pass.
e. Increases Retailer Penalties & Regulations For
Underage Access. Did
not pass.
f. Must Sell Only “Fire-Safe” Cigarettes. Did not pass. HB 2257 (Rep. Bruns,
g. Prohibits Minors From Selling Tobacco Products. Did not pass. HB 2406 (Rep. Deeken,
h. Prohibits The Selling Or Giving Away Of Certain
“Novelty” Lighters. Did not pass.
i. Statewide Smoking Ban. Did not pass.
j. No Penalty If Retailer In
Good Faith Sells Non-Complying Tobacco Products. Did not pass.
4. ALCOHOL ISSUES.
a. Alcohol Tax Increase (& Offsetting Food Tax
Decrease). Did not
pass.
b. Prohibits Minors From Being In Bars. Did not pass.
c. Increases Retailer Penalties & Regulations For
Underage Access. Did
not pass.
d. Dram Shop Liability For
C-Stores. Did not
pass.
e. No New Liquor License Issued If Previous C-Store
Owner Owes Money To Wholesaler. Did not pass.
f. Liquor License Can’t Be Denied, Suspended, Or
Revoked Due To Employee With Felony Record. Did not pass.
g. Eliminates Required Price Posting By Wholesalers. Did not pass.
5. TRANSPORTATION ISSUES.
a. 1
b. Authorizes Toll Roads. Did not pass.
c. Authorizes “PPPs”. Did not pass. In general,
there are two (2) types of public-private partnerships, or PPPs.
First, a state can lease their existing public roads and bridges, built with
public funds, to private companies for extended periods of time. These private
companies are then required to operate and maintain these public roads and
bridges.
Second, a state can enter
into a long-term contract with a private company to design, finance, construct,
operate and/or maintain a brand new public road and bridge.
In both cases, these private
companies, some of which are located in other countries, make money on the PPPs primarily through the collection of tolls, bond
payments, fees, and other dedicated revenue streams.
d. Dedicates A Specific Percentage Of Future Budget
Growth To Fund Transportation. Did not pass.
6. ADDITIONAL ISSUES.
a. Restricts Illegal Immigration. Passed, including some new requirements and
restrictions for employers. Click
here to review the summary for HB 1549. Also click
here to see SB 718 which requires the forfeiture & repayment of state
tax credits if the employer employs illegal immigrants.
b. Property Tax Relief. Passed. SB
711 changes the laws regarding property taxation by requiring tax rate
rollbacks by all political subdivisions in reassessment years, changing the way
voter-approved tax increases are applied to assessed values, changing the time
line for the assessment and appeal of property taxes, and changing the property
tax credit limits.
Click
here to review the summary for SB 711.
c. Methamphetamine & Additional Regulations On Non-Prescription Medicines. Passed. SB 724 contains many
new restrictions on the sale of over-the-counter pseudoephedrine medicines used
by criminals to make methamphetamine.
Once again, MPCA strongly cautions
our members to be very careful when displaying or selling these highly
regulated and highly controversial over-the-counter cold medicines.
Click
here to review the summary for SB 724.
d. Regulates Adult Magazines. Did not pass.
e. Massive Restrictions On
Outdoor Lighting. Did
not pass.
f. Statewide Deposit On & Recycling Of Beverage
Containers. Did not
pass.
g. Increases The Authority Of
h. Mandates Underground Fuel Storage Tank Training. No bill filed or passed to address this federal
mandate. This issue and federal mandate will have to be addressed in the next
year or two.
i. Additional Regulations On
Billboards. Did not
pass.
j. Requires An Economic
Impact Study Before “Big Box” Store Construction Is Permitted. Did not pass.
k. Authorizes & Implements The “
l. Imposes An Excise Tax on Illegal Drugs &
Alcohol. Did not
pass.
IV. HOW TO VIEW 2008 LEGISLATION.
Click
here to access legislation - summaries, text, etc. - that was fully and
finally passed in 2008.
V. 2009 ISSUES: MPCA’s PREDICTIONS.
MPCA believes that the
budget, health care, transportation funding, tobacco taxes and youth access to
tobacco and alcohol will be big issues in 2009 and beyond. Stay tuned.
MPCA STAFF
Ronald J. Leone, Esq.,
Executive Director, ron@mpca.org
Karen Antweiler, Asst.
Executive Director, karen@mpca.org
Angie Rickard, Administrative
Assistant, angie@mpca.org