Judge spikes MOSIRA science startup fund
The new fund designed to spur science startups in Missouri has been declared unconstitutional by a judge in Cole County.
Circuit Judge Dan Green tossed out the Missouri Science and Innovation Reinvestment Act (MOSIRA) in a ruling Tuesday morning, saying that the way it was approved by lawmakers in last fall’s special legislative session violated the state constitution.
The measure would have dedicated some new tax revenue from science and technology companies in the state for a fund to help launch startups in those industries. Gov. Jay Nixon had proposed putting $4 million into the fund in his next budget.
But Green ruled that the bill approving it violated state law because it included a “contingency clause” saying it couldn’t go into effect unless a separate tax credit reform bill was also passed. That bill died in the General Assembly.
Right-to-Life groups that have long opposed MOSIRA over concerns that it could fund stem cell or human cloning research filed suit in December, and Green sided with them.
“Missouri Roundtable For Life is gratified that Judge Green has upheld the rule of law and protected the taxpayers and citizens of Missouri from state officials implementing an unconstitutional law,” said Fred Sauer of Missouri Roundtable For Life. “We are dedicated to ensuring that Missouri citizens understand all the details of the MOSIRA scheme, so that politicians and their special interest cronies will never try this again.”
MOSIRA has long been a top priority of the state’s high-tech and biotech industries, who say Missouri needs funds to invest in startups to compete with other states and grow jobs here. They have pushed the bill for several years now and won votes in both houses, only to see it die.
“It’s disappointing,” said Donn Rubin, president of the St. Louis biotech trade group BioSTL. “What’s frustrating is that something that is so broadly supported gets caught up in unrelated struggles over other issues like tax credit reform.”
While the ruling puts MOSIRA on ice for this year, it’s not clear what will happen next.
State officials could appeal the ruling - a spokesman for Gov. Jay Nixon did not immediately return calls seeking comment. Or a new version of the bill could be filed in the General Assembly. If passed on its own, it would not include the “contingency clause” that Green struck down.
But Senate Pro Tem Rob Mayer (R-Dexter) told the Kansas City Star that a new bill was unlikely to succeed without broader tax credit reform.
“That was true during the special session and that’s true now,” he said.
Read more here: http://midwestdemocracy.com/articles/missouri-judge-rules-mosira-unconstitutional/#storylink=cpy
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