"The Voice of Missouri Business®" Weekly Report - February 23-27, 2026

By Matthew Smith and Ray McCarty

February 27, 2026 - This was the final week for filing bills (using the normal bill filing process). Here is a recap highlighting some of our efforts on behalf of Missouri employers this week.

Providing support for rural workforce housing (AIM supports)

In the House Economic Development committee, we testified in support of HB 1716 (Rep. Sharpe), which creates a grant program in the state of Missouri to assist in the construction of low cost housing in the rural areas to help develop the workforce. There is a major issue in rural areas where housing is not available. This has negative impacts on the workforce, as potential workers are reluctant to move to take a job in a rural area if there is not enough housing available. The next step for the bill is to be voted out of the committee.

Video slot machine gambling expansion (AIM opposes)

Despite ongoing investigations by federal, state and local law enforcement agencies, a jury in federal court finding devices are illegal in a lawsuit brought by members of AIM that operate legal amusement devices, and the launch of cases against operators of these machines by Attorney General Catherine Hanaway, the Missouri House last week passed HB 2989, the video lottery bill sponsored by Rep. Bill Hardwick. Read more about the bill in our earlier story HERE. Associated Industries of Missouri and other business organizations were united against this bill. AIM pointed out in our legislative alert that the legislature has no power to expand gambling as provided in the bill due to Missouri constitutional limitations. This week, the bill was referred to the new Senate Select Committee on Gaming, chaired by Senate President Pro Tem Cindy O'Laughlin. President O'Laughlin opposes the bill, posting on her Facebook account:

"How do we weaken the state? By enabling things that first and foremost weaken the family structure. Gambling is one of those things. Sports betting and the epidemic of young men addicted to gambling is something you should google to fully understand. The lottery (also gambling) was implemented and was going to fund education. Supposedly. What actually happens is the money goes to education and the original money gets rerouted. Now we have a proliferation of gambling machines in every gas station, strip mall and other vacant buildings and these machines are illegal. Rural Missouri especially has them everywhere; windows papered over because you don’t want to actually have to see what is going on. Legitimate businesses who are struggling have caught on and now THEY have one in their stores."

"The idea now is let’s just legalize them and make them regulated AND WE CAN USE THE TAX MONEY FOR SUCH THINGS AS EDUCATION AND VETERANS. One of the things I learned long ago was something wrong cannot be turned into something right. Something which negatively affects society will become like a cancer that slowly eats away at the health of our citizens. This is one of those things and I don’t care how much tax money is gathered. The federal courts have issued a decision that the machines are illegal. Why are we not just clearing them out?"

We couldn't agree more. We will continue to oppose this legislation and thank those Representatives and Senators who do the right thing to stop this illegal activity.

Legal reform (AIM supports)

This week, the House Commerce Committee combined multiple bills that would lower the statute of limitations for personal liability. The resulting committee substitute, HCS HBs 1664, 1610, 1645 & 2182 (Seitz), would lower the statute of limitations from 5 years to 3 years for actions accruing on or after the effective date of the bill, August 28, 2026. The bill was advanced from the committee to a rules committee for further consideration. Lowering the statute of limitations is a high priority for AIM and we appreciate the sponsors for their leadership on this issue.

We also told you about legislation that protects businesses from the frivolous lawsuits, with trial attorneys claiming businesses are violating the Americans with Disabilities Act (ADA.) Of course, this is just another way for these trial attorneys to target businesses for the sole purpose of gaining monetarily from the situation. SB 1272 (Sen. Trent), which prevents these kinds of lawsuits, was heard in the General Laws committee, combined with two other bills into SCS SBs 907, 1154 & 1272 (Sen. Hudson), and approved by the committee. The next step for this bill is to be debated before the entire Senate. HB 1694 (Rep. Christensen) on the same topic passed the House and has been referred to the Senate General Laws Committee. This bill was passed by the House in an unusual unanimous bipartisan vote, so we are hoping it will get a speedy hearing and be able to move through Senate debate in time for final passage.

Also approved by the House Commerce Committee was HB 2714 (Rep. Diehl), which changes the law on comparative fault. Currently, a defendant can be held financially liable for damages even if it is proven that the plaintiff was at fault for the incident. The HCS HB 2714 says if the plaintiff is proven to be at fault for 51% or more of the incident, then they are barred from recovering any damages. This bill would cut down on frivolous lawsuits and ensure that those who where at fault for an incident are not treated as victims in court.

We previously told you about SB 881 (Sen. Trent) which prohibits foreign principal or agents from funding litigation in the State of Missouri. This week, the Legislative Review committee passed the House version, HB 3205 (Rep. Casteel) and a rules committee hearing has been scheduled for next week.  This version limits the prohibition to foreign adversaries (The People’s Republic of China, The Russian Federation etc.) and to entities deemed a terrorist organization by the United States Department of State. The litigation system in Missouri is bad enough without the capability of foreign entities to fund lawsuits. We should ensure that only citizens of the United States are able to participate in our litigation process.

We also told you we testified in support of two bills, HB 2927 (Rep. Parker) and SB 1120 (Sen. Trent), which seek to close a loophole exploited by plaintiffs' attorneys after we passed legislation allowing insurance companies sufficient time to review settlement demands in 2017. Following passage of that law setting forth common sense requirements for time-limited demands for settlement, plaintiffs' attorneys found a loophole: sending the insurer settlement demands without a time limit. According to attorneys for insurers at the hearing, the plaintiff attorneys wait 30 days after sending the settlement demand and then sue for amounts far above policy limits by claiming the insurer acted in bad faith by failing to settle the claim. This is simply another example of plaintiff attorneys taking advantage of laws that need clarification, and these bills would solve this issue. HB 2927 was referred to the House Rules - Administrative Committee this week. SB 1120 was approved by the Senate General Laws Committee on February 18, 2026.

Fee schedule for Workers Compensation fees (AIM supports)

SB 1052 (Sen. Trent) was heard in the General Laws committee, which would require the Division of Workers’ Compensation to create a fee schedule for workers’ compensation payments. Currently, they determine the fees by what is fair and reasonable. Providing a fee schedule will help standardize the system and provide consistency in the workers’ compensation system.

Providing relief to Missouri working families (AIM supports)

HB 2409 (Rep. Shields) was also approved by the House Economic Development Committee on a unanimous 14-0 vote. This bill contains a package of incentives to support expanded childcare opportunities. This includes a tax credit for parents and employers providing contributions for childcare. Childcare has become a large burden on Missouri families who have children and want to return to the workforce. We support this because if a mother or a father wants to return to the workforce to provide for their families, childcare should not get in the way. This will help ensure Missouri workers have the flexibility to return to work and help our state grow. The bill was approved by the House Rules - Legislative Committee this week and it is now eligible for floor debate by the full House of Representatives.

Clarifying sales tax treatment of credit card fees (AIM supports)

The House Commerce Committee this week approved HB 1707 (Rep. Coleman) with a unanimous 10-0 vote. The bill modifies the definition of “gross receipts” to clearly exclude separately stated credit card transaction fees. Although current law excludes such fees from sales taxation in Missouri, the Missouri Department of Revenue has attempted to tax the fees in business audits. AIM objected to a recent regulation change initiated by the Department of Revenue to accomplish their goal of taxing the fees and the rule was never implemented. This bill would clarify language to ensure such fees are clearly exempt from sales and use taxes. The bill was approved by the House Rules - Administrative Committee and will move to the House floor for further consideration.

In the Senate, the companion bill, SB 1534 (Sen. Nicola), was heard in the Senate Economic and Workforce Development Committee this week.

Property tax reform (AIM now supports)

We heard from several of our members about problematic language regarding determination of the assessed valuation of property that was proposed to be changed in HB 2780 (Rep. Taylor) by redefining "true value in money" as replacement value, resulting in increases in assessed valuation. We are happy to report that, even though the bill had already been perfected in the House, the bill was returned to the House committee of origin and changed to remove this onerous language. You may find the new language here. This is an example of the importance of being involved with AIM and our AIM Tax Committee as we were able to quickly identify the problem and it is now resolved.

Bills encouraging small modular nuclear power generation (AIM supports)

AIM testified in support of two bills that are intended to encourage the development of small modular reactors (SMR) for power generation. The bills allow an exception to a voter-approved prohibition against including the costs of a power generation project in rates until the project is actually placed in service for nuclear generation facilities generating 600mw or less. We have strong consumer protections included in the bill that require the utility company to refund amounts included in rates with interest if the Public Service Commission finds imprudent expenditures or if the project is not place online within a reasonable amount of time (as determined by the Commission). Both bills were combined and approved by the House Utilities Committee this week as HCS HB 2122 (Rep. Black). The bill will now be referred to a rules committee for further consideration.

Increasing costs of right of way acquisition for Missouri's electric cooperatives (AIM opposes)

In the Special Committee on Rural Issues, we testified against HB 2298 (Rep. Haden), which would require coops to pay a landowner 150% of fair market value for land acquired for right of way in condemnation proceedings. We opposed this bill the electric cooperatives owners are also the rate payers. Requiring landowners to be paid at least 150% of market rate would increase costs directly fro these ratepayers, including many businesses that obtain their power through their local electric coop. No action was taken in the hearing but we will continue to monitor the bill and report on its progress.

Protecting broadband providers from unfair relocation fees (AIM supports)

We told you about HB 2155, which requires municipalities and MoDOT to reimburse non-rate regulated utilities (cable, broadband etc.) when they force these private industries to move their lines from public rights of way. This week, we testified on the Senate version, SB 1065 (Sen. Ben Brown), which was heard in the Senate Commerce, Consumer Protection, Energy and the Environment committee. Private industries should not be required to pay additional fees because a public entity requires them to perform an action. If they are forced to move their lines, the entity requiring the move should reimburse the private entity. The next step for this bill is to be voted out of the Senate committee then move to the Senate floor calendar for debate.

Incentives for producing critical materials and pharmaceuticals in Missouri (AIM supports)

SB 1553 (Sen. Kurtis Gregory), the Missouri Defense and Energy Independence Act, was approved by the Senate Economic and Workforce Development Committee this week. AIM supports the incentive to spur more domestic production of critical minerals and chemicals and reduce our dependence on foreign sources of these chemicals. One witness, Douglas Jost of the Jost Chemical Company, testified in support of the bill, noting the current sources of many critical chemicals used in defense and medicine are in other countries that are not friends of the United States. We will update you as this bill progresses.

Some Additional Bill Updates:

We have told you about many pro-business bills that have been moving through the legislative process. Here is a quick update on some of the major bills and where they are in the process:

• HB 2375 (Rep. Christ): This bill strengthens Missouri’s workers compensation by requiring the injured employee to prove the injury and the need for treatment were due to work. This bill has made it through the House and was referred this week to the Senate General Laws committee. The next step is for this bill to be heard in this committee.

• SB 953 (Sen. Bean): This bill is our legislation the provides additional funding to an insolvent fund at DNR: The Air Pollution Control Program. The fund is essential for permitting, and we were able to find a funding stream that doesn’t include additional fees or taxes. This bill has passed through the Senate and has been second read in the House. The next step is for this bill to be referred to a House committee. The step after this would be to get a committee hearing scheduled.

• HB 1766 (Rep. McGirl): This bill prevents increases in aggregate valuation of personal property from being counted as new construction (and exempt from rollback). This bill was referred this week to the Senate Committee on Property Taxes and the State Tax Commission. The next step is for the bill to be heard in this committee.

• HB 2085 (Rep. Keathley): This bill protects retailers selling tobacco products by preempting local governments from enforcing business killing local regulations. This bill has been passed by the House and is on its way to the Senate. The next step will be for the bill to be referred to committeee and scheduled for a hearing.

We intend to provide these legislative updates to you on a weekly basis on Fridays as we track the progress of these and other bills affecting Missouri businesses.