March 4, 2010

It is becoming quite obvious that the Missouri General Assembly has no intention of accomplishing a great deal this legislative session. That is not all bad…

As expected the state revenue picture continues to be dismal. On Tuesday the Governor met with the House and Senate leadership to discuss the current revenue picture.

Through January 31, the state government had taken in 12.5% less revenue than at the same time a year ago.

The Governor has already withheld $250 million from the current year’s budget. It is expected he will need to cut another $75 million from the budget this year.

It is expected by many experts that the state will be short next year by $1.5 billion.

In addition, on the federal side additional stimulus money contained in the “Jobs Bill” was removed. The Nixon administration was counting on an additional $300 million in federal funds to balance the 2011 budget. At this juncture, it does not appear the funds will be forthcoming. This means an additional $300 million in cuts for 2011. This could certainly change in D.C. in the next few weeks.

In addition, the Senate discussed “sweeping” funds out of 23 special accounts to transfer those funds to help plug the budget gap. This would result in $27 million going to the General Revenue fund. The funds are supported by dues paid by professional groups, insurance companies and airports.

The groups would then have to levy themselves again to remain whole. Essentially a tax increase. This was not looked upon favorably by the Senate Appropriations Committee.

So much for the positive news.

Legislative news includes:

Senate Financial/ Gov. Org. and Elections
The Senate Committee on Finance met on Monday. Several bills were heard including:

SB 715   Reorganizes the state health care system.

Senator Crowell presented this bill stating that this bill would consolidate the healthcare programs for all state employees. Crowell believed that consolidating the healthcare programs for state employees would lower the costs to the state and to the tax payers. There were no witnesses testifying in favor of the bill. Betsy Rodriguez a representative of the University of Missouri stated that the University of Missouri was opposed to the bill. Rodriguez stated that the University of Missouri had lower health insurance premiums than the rest of the state organizations and that the University would be forced into a higher health insurance premium if this bill was passed. Aaron Jeffries a representative of the Missouri Department of Conservation testified for informational purposes only. A representative of the Missouri Department of Transportation testified for informational purposes only.

After hearing SB 715 the committee went into executive session.

Senate Health/ Mental Health/ Seniors and Families
The Senate committee on Health met on Tuesday. 

SB 855   Allows the State Registrar to issue heritage birth or marriage certificates celebrating the unique heritage of Missouri citizens. - Voted do pass as substitute
Moved & passed w/adoption of substitute. 5 to 0

Health Insurance
House Bill 1570 changes insurance law by changing the coverage component for dependents from 23 years of age to 19 years of age.

Three years ago the depending status was changed from 18 to 23 years of age for coverage of dependents.

Fair Tax (Mega Sales Tax)
In addition to deleting the St. Louis and Kansas City earnings tax not surprisingly the “fair tax” is taking a different shape.

Sponsors haven now included additional exemptions to the SJR 29 proposal.

These include:

• Agricultural exemption
• Higher education costs
• All business expenses
• Any investment expenses (see billionaire Singquefield)

The committee studying this bill will include these exemptions on a 50% majority approval of the legislature. As now proposed, future exemptions would take a 2/3 vote of the General Assembly.

This is just the beginning of the exemption debate. It was expected that the “fair tax” would be given initial debate this week. The Senate gave it a brief debate on Thursday morning. It will be brought to the floor several times.

It is the current understanding that a major April 15th “tax day” debate and rally will occur.

Sunshine Law
Representative Tim Jones is revising his House Bill 1445.

Link to HB 1445: http://house.mo.gov/content.aspx?info=/bills101/bilsum/intro/sHB1445I.htm

HB 1444 was voted out of the House General Laws Committee.

Link to HB 1444: http://house.mo.gov/content.aspx?info=/bills101/bills/hb1444.htm

Smoke Free Missouri
Senator Bray’s SB 904 calling for a smoke free Missouri was not voted out of committee this week. The legislation has little chance of passage.

House-Energy and Environment
The House Energy and Environment Committee met on Tuesday.

The committee went into executive session and passed out four bills : HB 1402, HB 1372, HB 1667 and HB 1871.

HB 1402   Exempts certain water systems that serve charitable or benevolent organizations from certain rules relating to well construction.

Was approved by a vote of 10-0.

SJR 57 Healthcare Freedom Act
The House spent extensive time debating Representative Tim Jones HJR 54.

This is the joint resolution allowing Missourians to “opt out” of any federal health care reform.

The problem with this proposal that would send the proposition to a vote of the people in November 2010 is that health care facilities will be mandated to take a decrease in federal funds and the costs absorbed by Missourians will be in the form of Missourians not being covered thus raising costs.

Senate Small Business
Three health care bills were heard dealing with healthcare. They include:
SB 972 (Dempsey) This act allows an enrollee participating in a health benefit plan to receive documents and materials from a managed care entity in printed or electronic form so long as such documents are readily accessible in printed form upon request. Such requested printed material shall be provided to the enrollee within fifteen business days. This act also allows health maintenance organizations to provide the required disclosure information online unless a paper copy is requested by the enrollee. Such requested paper copy shall be provided to the enrollee within 15 business days.

SB 979 (Rupp) Under this act, no insurance company shall issue any policy of long-term care insurance in this state, unless the classification of risks and the premium rates pertaining to such policy have been filed with and approved by the director.

Under the terms of the act, rates for long-term care insurance shall not be excessive, inadequate, or unfairly discriminatory. Rates charged to any group shall not increase by more than 15% during any annual period, unless the insurer can clearly document a material and significant change in the risk characteristics of the group. When formulating rates for long-term care insurance, consideration shall be given to:

1. Past and prospective loss experience;
2. Past and prospective expenses;
3. Adequate contingency reserves; and
4. All other relevant factors within and without the state.

The director shall approve or disapprove a rate filing within 45 days after the filing. The failure of the director to take action approving or disapproving a submitted rate filing within the stipulated time shall be deemed an approval until such time as the director shall notify the submitting company of his or her disapproval. Reasons for disapproving a rate shall be stated in writing. Any notice of disapproval shall state that a hearing shall be granted, if requested by the insurer.

SB 948 (Crowell) This act provides that no law shall restrict an individual's right and power to choose private health care systems or private plans. The measure states that no law will infringe on an individual's right to pay for lawful medical services. The act also states that no law shall impose a penalty, tax, or fine upon an individual who declines to contract for health care coverage or to participate in a health care system or plan, except as required by a court in a judicial dispute to which the individual is a named party. The measure does not apply to individuals seeking voluntary coverage under a state-administered MO HealthNet or Children's Health Insurance Plan (SCHIP).

House Health Care Policy
The House Health Care Policy voted out two bills including:

HB 1375 allows physicians to use expedited partner therapy by dispensing and prescribing medications for partners of persons with certain sexually transmitted diseases who are not their patients.

HB 1650 adds specialists, certain charitable health care referral networks, professional corporations of a physician, and other professionals for whom the State Legal Expense Fund is available for certain claims.

Funding for Local Public Health
Our amendment to add $307,000.00 to local public health departments survived the House Budget Committee recommendations of Chairman Icet.

You will recall that after meeting with Representatives Sater, Weter, Cooper, McClanahan and others the House Appropriations –Health reinstituted our funding.

This is a huge victory for counties and their underfunded local health departments. Virtually every other program in health is cut.

In fact, there were 12 recommendations and 11 were cuts.

Thank you for taking time to make the rounds on Wednesday at the capital. Of course all House actions must be approved in the Senate.

Next Week
The General Assembly will adjourn for spring recess and recommence March 15th. Reports will resume on Friday, March 19th.

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