February 27, 2009

Only two weeks remain until the mid-point in the 2009 legislative session and Spring Break begins.

The legislature has moved a great deal of bills through the committee process and the deadline for filing legislation has now passed.

This means that if legislators have priorities to pass this session they will need to appear in the form of amendments.

House Budget Chair Icet’s HJR 23, the TABOR like legislation, is on the House calendar for debate. This legislation would limit the General Assembly’s ability to appropriate and feasibly could be disastrous for Missouri as it was in Colorado.

Major lobbying efforts will be needed to defeat this legislation that would impact every entity receiving state tax dollars. The link to HJR 23 is: http://house.mo.gov/content.aspx?info=/bills091/bilsum/intro/sHJR2I.htm

HJR 23 has gained momentum as Republicans running for office in 2010 see this measure as a means to turn out conservative voters.

The HJR 23 will need to go to a vote of the people and will be financed by the billionaire Rex Singquefield group.

Additional news of interests:

Federal Stimulus
House Budget Chair Icet’s HB 744 was given approval in the House on Thursday.

This legislation is the House version of Senator Nodler’s SB 313.

HB 744 creates two separate funds in the state treasury to receive moneys provided under the federal American Recovery and Reinvestment Act of 2009.  The Missouri Family Recovery Plan Fund will consist of moneys received due to the temporary increase of the Medicaid Federal Medical Assistance Percentage and the Economic Stimulus Fund will consist of all moneys received under the act that are not otherwise allocable to the Federal Budget Stabilization Fund.  Moneys received relating to the federal Safe Drinking Water Program are excluded from the depository requirements.

The State Treasurer is authorized to create new funds or re-designate moneys to other existing funds to avoid conflict with the federal act.

The bill contains an emergency clause.

FISCAL NOTE:  No impact on state funds in FY 2010, FY 2011, and FY 2012.

Core Funding
This past week I have worked with Appropriations chair Sater, Vice Chair Weter, Dr. Cooper and members of the Appropriations Social Services Health Committee to obtain an increase in CORE public health funding.

It appears, the committee will recommend a $2.5 million increase according to Dr. Cooper on Thursday.

This is just a first step and is quite frankly a long shot this year. However it is significant in that by recommending an increase it make it more likely that a reduction will not occur.

I will visit with House Budget Chair Icet next week.

Helmets
As expected HB 165-Dusenberg, which would repeal the helmet law for those 21 and older on streets with the exception of highways, was given approval in the House Transportation Committee.

Property Tax Assessments
SB 174 was voted out of the Senate Way and Means Committee.

The bill corrects errors in last year’s SB 711 which passed last year. SB 711 could induce a significant roll back of property tax rates next year.

SB 174 provides that for 2009, political subdivisions are authorized to produce as much revenue as was generated in 2007 as long as such rate does not exceed the greater of the rate that was in effect in 1984 (Hancock Amendment) or the most recent rate approved by voters.

An omission in SB 711 deleted reference to the 1984 Hancock provision which would have rolled tax rates back prior to 1984.

Sunshine Law
House Bill 316 has been passed out of the House General Laws Committee as a substitute bill.

Representative Tim Jones a very sharp attorney from St. Louis and Chair of the General Laws is pushing the legislation.

Among its components:

• Changes the penalty from $1000 civil for having violation and $5000 civil penalty for a purposeful violation to $100 for any violation and $8000 for a purposeful violation.

The court may require the public officials effected to pay all costs and attorney fees.

The strict liability with potential civil penalty will be disconcerting for new members of public entities.

The wide open period for public comment will be a real problem. A five day notice is required for any meeting discussing zoning, TDDs, TIFs, fees or tax increases.

Increased reporting of minutes to reflect the discussion in the meeting is also required. This bill is a real concern to public entities doing business and is being pushed by the Missouri Press Association. Representative Tim Jones is very capable.

Health Care Coverage
SB306 (Dempsey) will be heard this Tuesday. We understand that Senator Dempsey is working on a substitute bill that probably won’t be available until Monday, and that there were some drafting errors in the filed bill.

SB18 (Bray) is now on the Senate calendar. This bill sets up a commission to study ways to assure health insurance for all Missourians, raises eligibility for MO HealthNet for seniors and individuals with a disability from 85 to 100% of FPL, modifies the definition of “affordable insurance” when determining SCHIP eligibility, and enacts the Governor’s proposal to eliminate premiums for families with incomes from 150 to 225% of FPL, with a flat $50/month premium for families with incomes from 226 to 300% of FPL. 

Budget
The House Budget Committee approved providing supplemental funding for the state fiscal year ending June 30. However, the committee rejected additional funding designed to reduce certain State Children’s Health Insurance Program premiums, which they said should be discussed in the regular appropriations process rather than the supplemental budget.

Next Week
Two weeks remain until the legislative spring break. Consequently, major pieces of legislation including Governor Nixon’s economic development bill will need to be addressed prior to the break.

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