One step forward, two back with governor's vetoes

By Daniel P. Mehan

JEFFERSON CITY, Mo. -- In the recently concluded legislative session, Missouri lawmakers made several positive steps to improve Missouri's business climate. Driven by the fact that Missouri led the nation in job losses in 2002, legislators worked hard to stop the epidemic.

The result: Several critical pieces of legislation were sent to the governor for signature, including Senate Bill 280, legislation to provide much-needed reform to Missouri's broken civil justice system; Senate Bill 2, legislation that would have made significant changes to Missouri's insolvent unemployment compensation system; and Senate Bill 69, legislation that would have given small-business owners more input in state regulation and rule making.

These were critical steps for Missouri employers -- forward-thinking legislation that would have gone a long way in stemming job loss in our state. Unfortunately, these efforts were blocked by an administration more concerned with protecting special interests than preserving Missouri jobs.

Missouri health-care providers as well as employers were disappointed in the veto of SB 280. Although publicized mainly for provisions addressing medical malpractice, the legislation also provided reform important to Missouri's job creation.

The leading provision advocated by the employer community would have ended the current practice of trial attorneys moving cases into plaintiff-friendly venues that often have nothing to do with the case. This practice of venue shopping is done for the exclusive purpose of receiving a verdict which is grossly disproportionate to the harm covered.

The legislation also would have limited "joint and several liability," current law that allows plaintiffs to hold a party responsible for 100 percent of a judgment, even if the party is only 1 percent at fault.

In addition, SB 280 would have limited lawyers' ability to bring frivolous class-action lawsuits. SB 280 contained common-sense reforms to protect jobs and health care for Missourians, but unfortunately the governor turned an important issue into a political token and vetoed the legislation because his largest political contributors -- plaintiff's attorneys -- told him to do it.

The fate of Senate Bill 2 was similar. In March, Missouri's unemployment-compensation system went broke, requiring Missouri to begin borrowing federal funds to cover benefit payments. Plagued by increasing abuse of the system, Missouri's unemployment insurance system is in obvious need of reform. The Missouri Legislature carefully crafted legislation that coupled common-sense reforms used successfully in a majority of other states with a conservative rate increase on employers, who entirely fund the system.

Without offering any alternative plan to salvage Missouri's insolvent fund, the governor also vetoed this legislation, cowering to union bosses who would rather bankrupt the current system by pushing Missouri's unemployment insurance system further into the red.

Few in the Capitol were surprised that the governor would succumb to trial attorney and union forces in his vetoes of SB 280 and SB 2. But everyone was shocked by his action on Senate Bill 69, the Small Business Regulatory Fairness Act, passed with almost unanimous, bipartisan support by both the House and Senate.

In what appeared to be a move simply to spite Missouri employers, Gov. Bob Holden vetoed this legislation, which would have provided much-needed regulatory relief to Missouri small businesses. Employers in Missouri continue to be plagued with regulatory compliance and unnecessary filings, which increase operating costs. Much of this regulatory burden could be simplified or relieved completely if the state would simply use common sense in creating new regulations. SB 69 would have done just that, giving small business owners a voice in the rule-making process.

This session will be remembered by historic progress by legislators on employers' issues, only to be nullified by Holden's veto. Missouri employers should be outraged. With three strokes of his pen, the governor negated months of work by the Missouri Legislature to protect jobs for Missouri.

How many more jobs and how much more tax revenue will this administration allow to be lost? Missourians need to know that Holden had the opportunity to support the Missouri employer community. Instead he chose to side with special interests and deny the opportunities to improve Missouri's business climate.

Daniel P. Mehan is the president and CEO of the Missouri Chamber of Commerce and Industry.