HCS HB 237, 270, 403 & 442 -- SUNSHINE LAW SPONSOR: Smith COMMITTEE ACTION: Voted "do pass" by the Committee on Civil and Administrative Law by a vote of 15 to 0. This substitute makes several changes to the Sunshine Law, which governs open meetings and open records of public entities. In its main provisions, the substitute: (1) Increases the maximum civil penalty for violation of the Sunshine Law from $500 to $25,000, but not to exceed 5% of the public entity's annual budget; (2) Removes the term "purposely" from the statute, making a violation of the Sunshine Law a strict liability offense; (3) Requires a "knowing violation" of the Sunshine Law before the court may award attorney fees and costs; (4) Requires votes taken in an open meeting to be by roll call, except votes on procedural or ministerial matters. Current law requires a roll call vote only during closed meetings; (5) Requires any roll call votes taken in a closed meeting regarding legal actions, the acquiring of real property, or personnel matters to be included with any records that are eventually made public upon the completion of that action; (6) Allows a public hospital to close records and meetings which relate to: (a) physician contracts; (b) contracts with a health carrier or a self-insured health plan; or (c) discussion and analysis of any expansion or revision of health services or facilities; and (7) Extends until December 31, 2003, a provision allowing municipal electric utilities to close portions of their financial records and business plans. This provision is currently set to expire on December 31, 2001, unless the General Assembly has authorized electric utility restructuring. FISCAL NOTE: No impact on state funds. PROPONENTS: Supporters of HB 237 say that the penalties currently available are not strong enough to really enforce the Sunshine Law, especially with large public entities. In addition, the current level of culpability, "purposely," is too difficult to prove in court. The term exists only in this statute and in campaign financing. Supporters of HB 270 say that citizens and the media should be able to read the minutes of an open meeting and know what happened. Supporters of HB 403 say that electric utilities will eventually be deregulated, so municipal utilities must be able to operate like private utilities to be as efficient. Supporters of HB 442 say that current law forces taxpayers to pay more to support public hospitals, because those hospitals operate at a competitive disadvantage when they must hand over their books to the competition. Testifying for HB 237 were Representative Smith; Claire McCaskill, State Auditor; Missouri Press Association; Office of the Attorney General; Missouri Broadcaster's Association; and Clyde Engel. Testifying for HB 270 were Representative Legan; and Missouri Press Association. Testifying for HB 403 were Representative Hosmer; and Association of Municipal Utilities. Testifying for HB 442 were Representative Smith; North Kansas City Hospital; BJC Hospitals; Boone County Hospital; and Missouri Hospital Association. OPPONENTS: Those who oppose HB 237 say that 80% of the 4,700 political subdivisions in the state are very small, with very small budgets. Many of these political entities don't even have one full-time employee. If people volunteering to serve on local boards and commissions were fined for not responding to a record request within 3 days, a lot of board members would resign. Instead of making the penalties so severe, the state should offer more training regarding public records. There is an annual turnover rate of 30% in the positions that typically are designated the custodian of records. These small political entities will gladly comply with the law. They just need help learning what the law requires. Those who oppose HB 403 say that this exemption for utilities has become a "rolling exemption" that will never end, while the utilities industry won't be truly deregulated for a long time. Those who oppose HB 442 say that public hospitals can't be "a little bit public." Tax money founded these hospitals, and they should remain accountable to the public. They can already close meetings and records regarding legal proceedings, real estate deals, and personnel. Testifying against HB 237 was Missouri Municipal League. Testifying against HB 403 and HB 442 was Missouri Press Association. Richard Smreker, Senior Legislative AnalystCopyright (c) Missouri House of Representatives