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Special session going, going - maybe not gone

This article first appeared in the St. Louis Beacon, Sept. 23, 2011 - The Missouri House and Senate adjourned Friday -- but perhaps not for good -- as both sides continued to haggle over the economic development package that was supposed to be the centerpiece of the special session.

Friday marked the end of Week 3. Both chambers adjourned in such a way that they can regroup if behind-the-scenes negotiations result in an agreement.

Even so, Gov. Jay Nixon contended that the General Assembly was "letting real opportunities to improve our state pass us by." Both chambers, he said, are "letting resolveable differences get in the way of progress."

Republican leaders of both chambers weren't so sure.

President Pro Tem Rob Mayer, R-Dexter, and House Majority Leader Tim Jones, R-Eureka, used the same words to make the same point in separate interviews: "Passing a bad bill is worse than passing no bill."

Still, Mayer said the Senate would hold "technical sessions," which don't require members to be present, until either a consensus is reached or time runs out in early November on the 60-day special session. The session opened Sept. 6.

Senate Minority Leader Victor Callahan, D-Independence, praised Mayer's decision to "keep the lights on in the Senate."

"The issues in this bill after three and a half, four years of work are way too important to throw in the towel," Callahan said. "And the Senate doesn't throw in the towel."

The Senate did, however, decline to act on several other issues on the special-session docket that already had passed the House. That meant the bills are likely dead, although backers noted that they could be revived since the chamber technically will remain in session.

Those measures included a bill granting St. Louis local control over its police department, which has been under state control for 150 years, and a bill moving Missouri's presidential primary to March.

Missouri's primary now remains in February, which could result in penalties being levied by both major parties, which sought the move.

As for the local control, the chief Senate sponsor -- state Sen. Joe Keaveny, D-St. Louis -- said he hoped the measure might be resurrected if an economic deal is struck. Mayer said earlier in the week that he won't allow a vote on local control until after the economic dispute is resolved.

Blame Game Continues

House leaders primarily blame the Senate for the impasse over the economic-development package. In Week 2, the Senate approved a bill that is far different from the economic development package unveiled in July. Backers of that deal had claimed the support of leaders in both chambers, as well as Gov. Jay Nixon, business groups and labor leaders.

House Speaker Steve Tilley, R-Perryville, contended that the Senate is dysfunctional and implied that its leaders gave too much clout to certain critics of tax credits -- notably state Sen. Jason Crowell, R-Cape Girardeau, who had been deriding the deal for weeks.

"Functionally, the Senate's broke when a couple of people can dictate what happens over there," Tilley said.

The Senate blames the House, which did not pass its version of the bill, choosing instead to hold it in committee while talks continued. Senate leaders also were upset that the House negotiated with Nixon's staff earlier this week to craft an alternative bill.

Before the Senate adjourned, Crowell blasted the House for failing to debate or pass its own economic bill. "We showed up for the prom," he said. "We're still waiting for the prom date."

The chief points of contention, for both chambers, were disagreements over whether to impose "sunsets" on the various state tax-credit programs and whether to set up a special allocation of up to $360 million in tax breaks for St. Louis' effort to persuade China to locate a cargo hub at underused Lambert-St. Louis International Airport.

The Senate sought sunsets of seven years or less on tax-credit programs, especially the state's largest ones dealing with low-income housing and historic preservation. The Senate also knocked out $300 million of the China Hub money.

The House objected to sunsets, with Tilley saying he feared that a few of the Senate's opponents to tax credits would use the sunsets to kill off the programs. Tilley also has supported the China Hub and warned Friday that other rival cities -- such as Indianapolis and Cincinnati -- may try to press their perceived advantage since the Missouri General Assembly failed to demonstrate its support.

Meanwhile, several lawmakers in both chambers, including Crowell in the Senate and House Majority Leader Jones, contended that legislative progress this week got derailed by the heavy press coverage of the economic-development-gone-bad in Moberly, Mo.

Moberly may be on the hook for $39 million in bonds secured to help pay for the construction of a plant that was supposed to produce the artificial sweetener Sweet-O and create 600 local jobs.

Missouri had granted $17 million in tax credits to the Chinese-American-owned firm that was to operate the plant, Mamtek U.S. The firm now appears to be in financial trouble and has failed to make its bond payments.

Nixon and his economic team have emphasized that no state money was lost because the credits were never paid out since the jobs did not materialize.

However, Jones said the episode was among the reasons House leaders opposed a new program in the Senate economic-development bill, Compete Missouri, which combined several existing tax-credit programs.

Jones and Tilley, among others, say Compete Missouri would grant too much discretion to the governor. Department of Economic director David Kerr says the provisions are no different than those in the existing programs.

In any case, Nixon objected Friday to any assertions that he was in any way at fault for the Mamtek controversy.

The governor contended that some legislators were using Mamtek as "the excuse du jour" to avoid dealing with the real issues preventing an agreement on an economic-development package, and the real problems facing unemployed Missourians. 

MOSIRA Finally Passes, After Years Of Failure

Nixon did compliment legislators for the one major bill passed by both chambers.

The House on Friday approved the Senate's version of the Missouri Science and Innovation Reinvestment Act, sending it on to the governor.

Known as MOSIRA, the program has been touted by supporters for years as a way to bring in high-tech or technological advanced companies to Missouri. But until this special session, it has faltered in the legislature every year.

Friday's passage came after the House narrowly rejected, by 74-68, a proposal to add language -- sought by Missouri Right to Life and others -- to bar research involving cloning or human embryos.

The language stated that no money or tax breaks would be "expended, paid, or granted to or on behalf of an existing or proposed research project that involves abortion services, human cloning, or prohibited human research as defined in" state statues.

Opponents of the added language included legislative leaders such as Jones, who oppose abortion, but said the amendment was unnecessary because it already is in several other places in state law.  Instead, they argued, the addition would kill the bill because the Senate would not support the amendment because of legal questions about the language.

"MOSIRA is excellent legislation. If it goes back to 'Space Mountain' across the hall, it will disappear," said Rep. Chris Kelly, D-Columbia. "Everybody in this room knows that this language is precisely redundant of language already in our law."

Some opponents, and even supporters, say the provision is at odds with Amendment 2 of the Missouri constitution, which bars any restrictions on any stem-cell research allowed under federal law.

The handler of the amendment -- Rep. Randy Asbury, R-Moberly -- said the language would allay fears that incentives would fund embryonic stem cell research. "Without clear direction from the legislature, MOSIRA opens the door for public funds to be used for human cloning and embryonic stem-cell research," he said.

House Budget Chairman Ryan Silvey, R-Clay County, emphasized that the legislature has annually imposed restrictions in its appropriations bills that include the same language sought by anti-abortion groups. He said that approach had withstood legal challenge and was the best way to handle the issue.

Passing MOSIRA should be a priority, Silvey added, since it likely will be the only economic development bill passed during the special session.

After the vote, Missouri Right to Life issued a scathing statement in which it blasted the legislators who had opposed the additional language and contended that the final version "gives to the cloning industry the funding they sought."

But the MOSIRA bill does contain another potential roadblock. A clause near the end of the measures bars its implementation until the broader economic development bill also is passed.

Tilley said that clause could be thrown out in court. Nixon said his legal staff will examine the language.

Plane From China Arrives At Lambert

Dan Mehan, president of the Missouri Chamber of Commerce and Industry, was among those who were in St. Louis on Friday afternoon to greet the first cargo plane arriving from China. A weekly flight is tentatively planned, while the Chinese see if such flights make business sense.

Mike Jones, chairman of Midwest-China Hub, said, "After years of cultivating a 'Big Idea,' we now have a real plane landing with real cargo. Next, Missouri must energize its ability to export. More cargo means more flights, and more flights mean more jobs."

Added Mehan: "That goal is directly tied to Missouri lawmakers' ability to compromise on this legislation. We implore the legislature not to let all of the work that has gone into this debate be for nothing."

In a few weeks, Nixon is to lead a delegation to China as part of the push for more trade opportunities, and to promote the China Hub.

When asked Friday if his sales pitch might be more difficult without the tax breaks, Nixon replied, "No."

Jason is the politics correspondent for St. Louis Public Radio.
Jo Mannies is a freelance journalist and former political reporter at St. Louis Public Radio.