Missouri REALTORS®,
Following last week’s conclusion of the 2nd Regular Session of the 101st General Assembly and a tremendous legislative victory with the passage of HB 1662 (Restrictive Covenants), I want to share additional highlights on this session’s legislative points of interest.
Let’s get started:
Missouri Non-Discrimination Act (MONA)
Under Missouri law, it is still legal to fire someone from their job, evict someone from their home, or kick someone out of a restaurant simply because they are LGBTQ, or because someone believes they may be LGBTQ. During this year’s legislative session, Rep. Chris Sanders and Rep. Shamed Dogan filed legislation to amend MONA, as did Sen. Greg Razer. Rep. Sander's bill covered only sexual orientation and did not address gender identity. Both bills were referred to the House Special Committee on Litigation Reform but were never slated for a hearing. Sen. Razer's bill was referred to the Senate Committee on Small Business and Industry but never heard.
Unfortunately, we were unsuccessful this session but Missouri REALTORS® will remain diligent in their efforts of advocating that the General Assembly extend protection against discrimination in employment, housing, and public accommodations for all.
Low-Income Housing Tax Credits (LIHTC)
It’s no secret that Low-Income Housing Tax Credits continue to face criticism, and we are aware changes to this program are necessary. To ensure LIHTC will remain available for safe and affordable housing to target populations, Missouri REALTORS® is willing to work with all parties to find a solution that preserves the program and provides assurance to all concerned that the program is doing what it was intended to do.
In this session, House and Senate members introduced legislation modifying the program, but none appear to have made it beyond the committee process. This will remain a priority as we prepare for next year’s legislative session.
Eviction Moratorium
Highlighted during the COVID-19 pandemic, eviction moratoriums left renters with insurmountable debt and housing providers carrying the burden (and continue to do so). From the very beginning of this year’s session, Eviction Moratoriums were alive and very much in play until May 11, as part of the Senate Substitute for HB 1662.
Several Democratic members of the Senate indicated they were willing to forego the ability to remove Restrictive Covenants if the price to be paid included Eviction Moratoriums. The underlying bill was more important than the moratorium language, so Sen. Koenig very properly offered an amendment to remove that language. The eviction moratorium language was added to several other bills, but none passed.
Though this legislation did not pass, it will continue to remain a top priority of Missouri REALTORS® and our advocacy efforts.
Restrictive Covenants
The House Truly Agreed and Finally passed Senate Substitute for House Committee Substitute for House Bill No. 1662 in the final hours of the 2nd Regular Session of the 101st General Assembly.
Rep. Craig Fishel (R. Springfield) introduced the bill prohibiting deeds recorded on or after August 28, 2022, "from specifically referencing restrictions relating to a person's race, color, religion, or national origin." Additionally, it provided a method for an owner to release the prohibited covenants with a certificate of release provided in the act.
While current Missouri statutes make those covenants void and unenforceable, they persist in the record because there is no way to easily remove them. Interestingly enough, that statute, found at 442.403 RSMo, was passed in 1993, 45 years after the decision in Shelley v. Kraemer – a U.S. Supreme Court decision that found state action to enforce such covenants was a violation of the Fourteenth Amendment.
In the Senate, the bill was offered as a Senate Substitute with the addition of several related sections. This included language limiting Homeowner Associations' ability to ban solar panels and sale signs entirely, and language that prohibits building codes from blocking the use of refrigerants that the federal Clean Air Act approves. The most contentious portion dealt with cities' jurisdiction over certain low-impact home-based businesses. Most, if not all, the additions had passed at least one body by significant majorities. The home-based business piece passed the House with 98 votes as a stand-alone bill. The final amendment, offered by Sen. Roberts, was twice the size of the initial substitute and included "clear title legislation" supported by St. Louis REALTORS®. This amendment was designed to assist in reducing the amount of vacant and abandoned properties in the city of St. Louis.
In addition, the Senate Substitute included language prohibiting counties, cities, towns, or villages from imposing or enforcing an eviction moratorium unless specifically authorized by state law. All references to eviction moratoriums were dropped after it became apparent that several members of the Democratic Caucus were prepared to filibuster the bill. That was a good call by Sen. Andrew Koenig, especially in a Senate that had been under significant stress since day one session.
Our House sponsor endured significant pressure just to let the bill die because of the home-based business language. As you can imagine, cities were very upset, but he stood strong.
Overall, we’re thrilled this legislation passed and want to thank bill sponsors and additional members in the General Assembly for their support.
Initiative Petition Reform
House leadership is very committed to reform of the initiative petition process. The premise is that it is too easy to amend the Missouri Constitution, and "something" must be done to change that. What "something" is runs the gamut from increasing the percentage of votes needed to pass an initiative petition to 55%, requiring the approval of the General Assembly of the ballot language, and everything in between.
Missouri REALTORS® has a position against any reforms that significantly obstruct the initiative process. We have used it in the past to provide much-needed protections for property owners and licensees and don't feel the process needs significant change. That said, when you are up against leadership, you need to find accommodation.
A proposal was offered to produce a Senate Substitute for HJR 79 that would require 60% approval for Constitutional amendments that imposed or increased taxes or fees or caused the state to expend more than $10 million. Any other constitutional change or statutory initiative would remain at 50% approval. Missouri REALTORS®, with the approval of the Advocacy Committee and the Executive Committee, stayed neutral on the amended HJR. Still, after several hours of debate, it was placed on the informal calendar in the Senate and not taken up again.
This discussion is not over and likely, there will be meetings during the interim.
As always, thank you for your unwavering support during this session. For questions, please contact Erin Hervey, Vice President of REALTOR® Party and Local Board Relations, at (573) 445-8400 ext. 1110 or erin@morealtor.com.
Sincerely,
Sam Licklider
Chief Lobbyist, Missouri REALTORS®