Committee amends HB 2366 to raise penalties, require AG cooperation and add contractor protections
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Summary
The Commerce Committee adopted a substitute for HB 2366 that replaces 'should have known' language with a duty to cooperate with the attorney general, adds sworn-affidavit/perjury requirements, creates an affirmative defense for contractors, limits license suspensions to state licenses after injunction, increases penalties from 2x to 10x, and adds immunity for good-faith reporting contractors.
The Missouri House Commerce Committee adopted a House Committee substitute for House Bill 2366 that makes multiple substantive changes to enforcement and liability provisions tied to contractors and unauthorized workers.
Chairman Castillo summarized the substitute in detail and said the first change replaces a "should have known" standard with a requirement that contractors cooperate with the attorney general. The substitute also adds a sworn-affidavit requirement and potential perjury consequences for allegations of unauthorized employment, and it creates an affirmative defense for general contractors.
The substitute narrows administrative remedies after an injunction: suspension would apply to state licenses and permits only, not to local or municipal licenses, Castillo said. The committee also voted to increase monetary penalties associated with violations from twice the pay to ten times the pay, a change the chairman described as responding to stakeholder comments that a two-times penalty was insufficient as an incentive. "We just felt like 2 times the pay was not gonna be as big of an incentive to do the right thing as 10 times the pay would be," Castillo said. He added that, if a contractor is found guilty in court, the attorney general would have full authority to suspend and punish.
Castillo also said the substitute adds immunity for a contractor who reports an illegal operator, provided the evidence presented is genuine. Committee members were told the substitute reflects several weeks of negotiations with stakeholders; the chairman said some opponents have moved to neutral following those discussions.
The committee adopted the substitute and, by unanimous roll call, voted to advance HB 2366 to the House floor. The chairman told the committee the substitute will be rolled with another sponsor’s bill for floor management.
What this means: If passed on the floor and signed, the changes would increase enforcement tools for the attorney general, raise potential monetary liability for employers and contractors, and offer a clearer path for contractors to report alleged violations with limited immunity if they provide valid evidence. The committee concluded its executive session and adjourned.