April 1, 2011

Seven weeks remain, Missouri lawmakers face a number of major issues this spring, before the state Constitution requires them to cease business at 6pm, May 13th.

They include the budget for the business year beginning July and several proposals to rewrite.

• The minimum wage law voters adopted in 2008
  
  
• State labor laws so no one is forced to join a union or pay union dues, overturning the voters’ rejection of a Right to Work proposal in 1978.
  
  
• The 1976 voter-passed law that prohibits investor owned utilities from charging consumers for power plant construction work-in-progress.

The Legislature’s Republican leaders remain optimistic of passing their agenda this spring., some issues could be problematic.

Redistricting was a  major topic behind closed doors as state Representatives jockeyed for Senate seats. The redistricting plan must still pass the House and the Senate with approval by the Governor. Consequently, as in the past it will probably go to the courts. No matter what St. Louis will lose a Congressional seat.

 Missouri House members gave first-round approval Tuesday to a more than $23 billion state operating budget that holds K-12 education spending steady, trims public university budgets and restricts the governor's ability to travel on the state's dime.

The House cut budgets for public colleges and universities by about 7 percent and approved spending slightly more than $3 billion in basic aid for public schools -- the same amount of money that districts are to receive this year but more than $200 million less than what a state funding formula says should go to schools next year. Meanwhile, state transportation aid that helps schools pay for busing would remain largely unchanged from what districts received this year, though only about two-thirds of what the Legislature actually budgeted before midyear spending cuts.

Lawmakers, who have scrutinized the travel of Democratic Gov. Jay Nixon, also cracked down on it and barred every state department except the Department of Public Safety from picking up the tab for the staff and travel of statewide elected officials. The House planned to add $500,000 to the governor's budget, though that was diverted Tuesday by Democratic Rep. Jamilah Nasheed for dropout prevention in St. Louis.

Missouri's budget for the 2012 fiscal year starting July 1 is spread over 13 bills. The House gave the legislation first-round approval Tuesday after less than five hours of debate spread over two days. The budget still needs another round of approval in the House before it can move to the Senate where the discussion was expected to go less smoothly.

On the whole, House members generally avoided the frequently highly contentious debates and flurry of amendments that have marked budget debates in previous years.

News this week includes:

Senate-Small Business/ Insurance/ Industry
The Senate Small Business/Insurance/Industry Committee met on Tuesday and heard several bills including:

HB 61   Prohibits the state minimum wage from exceeding the federal minimum wage.

Rep. Jerry Nolte, R-Gladstone, presented legislation before the committee that would prohibit the state minimum wage - currently at $7.25 - from exceeding the federal minimum wage. Rep. Nolte said his legislation, House Bill 61, will not lower any workers' wages, but rather help employers invest in the hiring of additional employees.

In 2006, Missouri voters enacted the minimum wage escalator currently in place. At that time, the state minimum wage was $5.15 and the escalator was created to cause the minimum wage to increase in connection with the cost of living in the state.

Opponents of HB 61 said that lawmakers should not overturn a voter- approved measure and eliminating the escalator would be a heavy burden on Missouri's most vulnerable workers. Supporters argue that the economic climate in 2006 was much different than what the state is facing now, and employers need the opportunity to create and grow jobs.

Speaking in favor of HB 61 were: Ray McCarty, Associated Industries of Missouri; Brad Jones, NFIB; Brent Hemphill, Missouri Restaurant Association; Richard Moore, Missouri Chamber of Commerce and Industry; John Pelzer, Associated Builders and Contractors; and Tricia Workman, St. Louis RCGA.

Speaking in opposition to the legislation were: Jim Hill, Baptist General Convention of Missouri; Laura Granich, Missouri Jobs of Justice; Mike Hoey, Missouri Catholic Conference; Clark Brown, Service Employees International Union; and three St. Louis residents.

SB 392   Amends surplus lines insurance law to comply with the federal Nonadmitted and Reinsurance Reform Act of 2010 (NRRA). - Hearing conducted

Next, Sen. Scott Rupp, R-Wentzville, presented Senate Bill 392 for consideration. SB 392 amends the surplus lines insurance law to comply with the federal Nonadmitted and Reinsurance Reform Act of 2010 (NRRA). Sen. Rupp said it is important for the state to take action on this issue before the federal mandate is put in place.

Representatives from the Missouri Department of Insurance, Financial Institutions and Professional Registration testified in favor of SB 392, along with Calvin Call of the Missouri Insurance Coalition.

SB 430   Modifies the law relating to Workers' Compensation. - Voted do pass

Following the presentation of bills, the committee entered into executive session and approved two pieces of legislation dealing with Missouri's Second Injury Fund. Senate Bills 420 and 430, both sponsored by Sen. Rob Mayer, R-Dexter, were reported do-pass in a 4-2 vote. The committee also approved Senate Bill 262, sponsored by Sen. Jack Goodman, R-Mt. Vernon, in a 5-1 vote.

Immunizations
The House Health Care Policy Committee met to hear HB 690 (Bahr).

The bill allows the Department of Health and Senior Services to develop rules and regulations changing the manner and frequency, including zero frequency, of certain immunizations for school children.  However, the department cannot require immunizations for diseases other than those allowed by statute.  Currently, astudent must provide satisfactory evidence of an immunization to attend school.  The bill allows a student to provide evidence of acquired immunity as an alternative.

The bill also changes the requirements for immunizations in order to enroll in any day care, preschool, or nursery school for 10 or more children.  Currently, the required immunizations are those specified by the department in accordance with the recommendations of its Immunization Practices Advisory Committee. The bill requires these children to receive the same immunizations that are required for school children and allows the department to change the manner and frequency, including zero frequency, of the specified immunizations.

Representative Bahr actually believes legislators should make the decision on whether immunizations are necessary rather than a panel of experts such as doctors, nurses, pharmacists, public health, etc. Bahr is a protégé of ex Representative Cynthia Davis.

Bert Malone, Public Health, NEA, MSMA and others testified against.

The Missouri Family Network testified in favor.

House- Workforce Development and Workplace Safety
The House Workforce Development and Workplace Safety Committee met on Thursday and heard SB 188.

This bill modifies the law relating to the Missouri Human Rights Act and employment discrimination.

SB 188  changes the law relating to the Missouri Human Rights Act and employment discrimination. is known as the employment law reform legislation. The bill modifies the law relating to the Missouri Human Rights Act and employment discrimination.

Much debate surrounds this issue, because of the statutory amendments it would make to reverse recent court decisions. Key provisions of the legislation would: change the threshold of liability from "a contributing factor" to "a motivating factor," eliminate individual liability for employers, create a new section under the law to include whistleblower cases, cap damages based on the number of employees a company has, implement summary judgments, and protect public entities and political subdivisions from having to pay for punitive damages. Proponents say this will direct Missouri courts to follow federal standards. Opponents say it will take Missouri away from federal standards and could result in the massive loss of federal funds to the Missouri Commission on Human Rights.

Speaking in favor of SB 188 were: Associated Industries of Missouri; Bryan Cave Law Firm; Missouri Chamber of Commerce and Industry; Missouri Council of School Administrators; Greater Kansas City Chamber of Commerce; NFIB; Missouri Municipal League; Missouri Restaurant Association; St. Louis RCGA. Testifying in opposition to the legislation were: employee rights attorney; Missouri Commission on Human Rights; disability advocate; NAACP; and Paraquad Inc.

Farm to Table Advisory Board
House Bill 344 was given final approval in the House. I will be visiting with Representative Guernsey, the bill sponsor, and Senator Munzlinger who has a similar bill in the Senate to reinstate the DOH which was removed from the board to make a spot for agricultural companies.

Budget
The Budget was completed in record time.

Our increase of $1.3 million was approved intact. Be prepared to make your Senate contacts.

House Bill 732
Representative Brandom has amended HB 732 to prohibiting the use of the title “Dr.” by any person other than an M.D.

Numerous groups were armed to testify against this provision. Anesthesiologists started this against CRNAs.

Brandom has postponed the vote until next week.

Unions
The House Workforce Development Committee heard two major bills

HB 492 requires a written authorization by a public employee before a labor union can withhold any dues, fees, or political contribution from the employee's paycheck.  The employee must authorize the amount to be withheld on a form as specified in the bill and indicate whether any amount authorized may be used for a political contribution.  The employee may also indicate which political committee he or she wants to receive the contribution. An authorization for deductions in earnings is voluntary and cannot in any way affect a person's employment.  The labor union must keep records of all authorizations and submit them to the Labor and Industrial Relations Commission within the Department of Labor and Industrial Relations.  For administration expenses, the Office of Administration will deduct a fee of $8 or 2% of the authorized deduction, whichever is greater, from the employee's withheld amount, but the employee must be deemed to have paid to the labor union the full authorized amount.  The labor union cannot attempt to recoup the administrative fee from the employee in any manner.

HB 828 revises the definition of "construction" as it relates to the provisions regarding prevailing wages on public works projects to include new construction, enlargement, or major alteration.  Currently, it includes construction, reconstruction, improvement, enlargement, alteration, painting and decorating, or major repair.

Companion bills are coming from the Senate.

Unemployment Compensation
Senator Lembke continues to stall the effort to accept another $80 million from the federal government for unemployment compensation. Lembke philosophically believes the money should be sent back and that additional unemployment compensation should not be extended.

“Fair Tax”
The House may debate House Joint Resolution 8 next week. HJR 8 proposes a constitutional amendment to eliminate the state’s current general revenue tax structure and replace it with a greatly expanded sales tax. The proposal is unlike anything ever enacted in any state and would expand the sales tax at a much higher rate to apply to nearly everything Missourians purchase including services such as child care and rent and items that are currently exempt from the sales tax such as food and prescription medication. The details of the proposal is fraught with uncertainty, however it caps the sales tax rate at 7 percent. Many independent analyses, including assessments prepared by the Missouri Budget Project and assessments prepared by Jim Moody, former budget director under Governor Ashcroft found that the actual necessary rate would near 12 percent. As a result, a constitutionally capped rate of 7 percent would significantly compromise the ability of Missouri to fund critical core services including education, health care and infrastructure.

Extended Unemployment Benefit Stalls in Senate 
House Bill 163 (Fisher), which would allow Missourians who are facing long-term unemployment due to the economic recession to receive extended federally funded unemployment benefits has again been blocked by Senators.  Since the bill did not pass this week, 9,767 Missourians will lose the federally funded extended benefits tomorrow, and 56,667 more will be impacted in the near future. The loss of the $80 million in federal funds would simply send the funds back to another state.

Moreover, even if the bill does pass, Missourians may have to wait until August to see their benefits resume.  The delay is the result of the removal of the bill’s emergency clause, which means unless the clause is re-inserted, the legislation would not go into effect until August. 

While the 4 Senators have claimed they are trying to send a message about federal government spending, this “statement” is in protest of what amounts to 0.002 percent of the federal budget – that’s two one-thousandths of a percent.

Health Care
A second Committee Substitute for House Bill 609 (Molendorp) has been prepared.  This bill sets up the “Show-Me Health Insurance Exchange,” the health insurance market through which individuals and small employers will be able to purchase health insurance starting in 2014. Under the Affordable Care Act, the Congress gave states the option of setting up a state-specific exchange or participating in a federal exchange.  It is likely the bill will come to the House floor for debate next week. One of the key features of the bill is that it establishes the composition of the governing board for Missouri’s exchange and includes on that board: the directors of the Departments of Social Services, Health, Mental Health and Insurance; four state legislators; three insurance representatives; a large employer representative; a small employer representative; an individual with expertise in administering and negotiating health plan contracts on behalf of employees; one consumer representative; and two at-large representatives.

Preparing to Care
The House Budget Committee has proposed $12 million for the “Preparing to Care” health care scholarship program.

Report Ranks Health By County
A new report examines the health of U.S. residents on a county-by-county basis. The “County Health Rankings” report is a key component of the Mobilizing Action Toward Community Health project, a collaboration between the Robert Wood Johnson Foundation and the University of Wisconsin Population Health Institute. The MATCH project’s report provides access to 50 state reports, ranking each county within the states according to its health outcomes and the multiple health factors that determine a county’s health. Each county receives a summary rank for its health outcomes and factors, including health behaviors, clinical care, social and economic factors, and physical environment. Each county also can drill down to see specific county-level data and state benchmarks for the measures on which the rankings are based. Counties are ranked according to summaries of various health measures, and those with a high ranking are considered the “healthiest.”

Tax Credits  
The Senate is considering a floor substitute for Senate Bill 280 (Purgason), which includes significant changes to tax credits in Missouri. One of the most significant modifications to the bill is that the provision to eliminate the corporate franchise tax has been removed.  However, the elimination of the corporate franchise tax has been passed by the Senate in a separate bill and will cost the state $85 million annually. 

SB 280 combines several existing tax credit programs including the Quality Jobs, Enhanced Enterprise Zone, BUILD, Development, Rebuilding Communities, and Business Facilities programs into one new program referred to as “Compete Missouri.” Funding for Compete Missouri would be limited to $15 million in FY 2012, increasing to $60 million per year beginning in FY 2015. However, the currently outstanding tax credits under the programs that are being merged into Compete Missouri add significantly to the total costs of the tax credits and result in an overall cap for new and existing obligations of $111 million in FY 2012, increasing to $141 million in FY 2014.

The floor substitute continues to include provisions that:

• Remove renters from eligibility for the Senior Citizen Property Tax Credit (Circuit Breaker);
• Broaden the definitions of taxpayer under the Youth Opportunities Program, the Domestic Violence Shelter, the Maternity Home Tax Credit, the Pregnancy Resource Center Credit, Residential Treatment Agency Tax Credit and the Food Pantry Credit, but reduce the credit size under all of these categories from 50 percent to 35 percent for donations above $1,000;
• Prohibit International Adoptions from qualifying for the Special Needs Adoption Tax Credit;
• Reduce the annual funding for the Neighborhood Assistance Program (NAP) from $16 million to $10 million and targets the program at specific neighborhoods;
• Reduce the Affordable Housing Assistance Program from a 55 percent credit to 40 percent and decrease the total amount of funding available to $10 million to $8.5 million;
• Prohibit stacking of Low Income Housing Tax Credits and Historic Preservation Tax Credits for the same project;
• Reduce funding for Historic Preservation Tax Credits from $140 million to $75 million per year.

Next Week
After spring break the legislature attempts to have their respective priorities through their chambers. The focus of the last six weeks will shift to Senate bills in the House and vice versa until committee hearings “dry up” when the session “winds down”.

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