Capitol Report

Greetings Friends of the 8th Legislative District!  Every year on the first Monday in September, we pause as a nation to take pride in the determination and spirit of the American worker. Labor Day is a celebration of what American workers have achieved, not for a single group, but instead for all Americans. That is what makes this holiday different from all others.

Labor Day not only shows our appreciation for the efforts of workers in the past, but it gives honor to the efforts that American labor continues to put forth. Our workers today have led America into an age of unparalleled peace and prosperity. Their hard work carries on the construction of the strongest and most technologically advanced society in the world, and their labors continue to help make our nation a better place.

This Labor Day, take a moment to reflect upon the benefits that American labor bought for all of us with their efforts, and the brighter days they will help us achieve with their continued diligence.

House Members Prepare for Annual Veto Session

As mandated by the Missouri Constitution, the General Assembly will meet Wednesday, September 16 to consider bills that were passed by the House and Senate but vetoed by the governor. The annual Veto Session gives legislators a final opportunity to enact their ideas into law despite the governor’s objections. In both chambers, a two-thirds vote is required to override a veto. In the House that amounts to 109 votes. Twenty-three votes are needed in the Senate to successfully complete an override motion.

In 2015 the governor vetoed 12 House Bills, six Senate Bills, and had one line-item veto in an appropriations bill. While the legislature was still in session, the House and Senate overrode the governor’s veto of legislation (SB 24) designed to reform Missouri’s system of welfare so that it does a better job of moving folks out of poverty and toward self-sufficiency. The House also approved a veto override motion for legislation meant to reform Missouri’s system of unemployment, but the Senate failed to act before the clock ran out on the session.

The House and Senate will now consider the remaining bills with the override process starting in the House for House Bills, and in the Senate for Senate bills. For some historical perspective, the General Assembly overrode the governor’s vetoes on 10 bills and 47 budget line-items during last year’s Veto Session. These totals, plus the veto override completed during the 2015 session, push the total override count in state history to 93 with 44 of the overrides coming on vetoes of non-appropriations bills and 49 on budget line-items. Interestingly, 71 of the overrides have occurred during the current governor’s time in office.

Legislature to Continue Veto Override Attempt on Unemployment Reform Legislation  (HB 150)

During the 2015 Veto Session, the House took action to override the governor’s veto of legislation meant to reform the state’s system of unemployment. The bill is designed to strike a balance to ensure Missourians have access to unemployment benefits when they are out of work while also protecting Missouri’s job creators from excessive taxes and fees. The House then sent the bill to the Senate to complete the override motion, but the Senate was shut down by a filibuster in the final weeks and no action was taken. Now, leaders in both chambers believe the Senate can take up and approve this motion during the Veto Session.

The legislation is designed to make sure the state has enough money in its unemployment trust fund so that businesses don’t have to pay a penalty. Specifically, it would increase the minimum amount of money in the fund before employers’ contribution rates decrease.

The bill also ties unemployment benefits to the average unemployment rate so that more benefits are available when unemployment is high. If the state were in a position of high unemployment (9 percent or higher) benefits would be available for 20 weeks. In periods of low unemployment (lower than 6 percent) benefits would be available for 13 weeks.

Legislature Could Consider Right to Work Veto Override (HB 116)

The House and Senate also could consider an override motion on a piece of legislation commonly referred to as Right to Work.

In effect, the bill gives workers in Missouri the right to decide whether to join a union. Specifically, it prohibits an employer from requiring a person to become a member of a labor organization as a condition or continuation of employment.

Supporters of the bill say it is meant to make Missouri a more attractive location for new and existing job creators. They say it preserves the rights and freedoms of the individual to choose whether to join a union. Opponents say it is an attack on organized labor and a move that would lead to lower wages for workers.

The House needs 109 votes to override the governor’s veto. The Senate needs 23. The bill passed during the legislative session with 92 votes in the House and 21 in the Senate.

Legislature May Not Consider Override of Veto on Education Reform Legislation  (HB 42)

After the 2015 session, the governor vetoed a bill that was hailed by supporters as a way to help young people in struggling school districts. While some in the legislature would like to override the governor’s veto, the bill’s sponsor has indicated he does not plan to make the motion even though he is disappointed that the governor undid the hard work a bipartisan group had done to craft the solution.

Proponents said the bill’s system of accreditation for individual schools rather than entire districts would have alleviated some of the transfer issues and allowed kids to stay closer to home. The bill also would have given students new educational opportunities by allowing for more charter schools and providing a virtual school option.

In objecting to the bill, the governor sided with opponents who took issue with the expansion of charter and virtual schools, which he referred to as a voucher scheme. Opponents also criticized the bill for failing to provide real solutions for the failing districts that have strained financially to pay the tuition of transferring students. Those opposed to the bill also said the virtual school option failed to provide the necessary oversight and accountability for student performance.

General Assembly to Consider Several Other Vetoed Bills for Potential Overrides

The legislature will likely move to override the governor’s veto of SB 224, which was approved by the House and Senate in an effort to ensure scholarship benefits through the state’s A+ Schools Program are received only by young people who are legal residents of the United States. The bill would require a student to be a United States citizen or a permanent resident in order to receive benefits.

The General Assembly also is likely to consider an override motion on HB 722, which was approved by the legislature to ensure Missourians continue to have the choice of paper or plastic bags at the grocery store.  The bill specified that all merchants, itinerant vendors, and peddlers doing business in this state must have the option to provide customers with a paper or plastic bag for any item or good purchased. The bill also made it clear that a political subdivision cannot impose any ban, fee, or tax upon the use of paper or plastic bags. In addition, the bill contained language to prohibit municipalities from mandating a “living wage” above the state minimum wage and other rules related to employee benefits.

The other vetoed bills that could be considered during Veto Session include:

* HB 63 - Exempts certain political races from provisions specifying how candidates must be nominated.

* HB 326 - Specifies that each defined benefit pension plan must establish a board member education program.

* HB 618 - Changes the laws regarding the disposition of human remains.

* HB 629 - Changes the laws regarding public retirement systems.

* HB 799 - Moves the 12th Division of the 16th Judicial Circuit Court from the City of Kansas City to the City of Independence.

* HB 878 - Specifies that the Department of Public Safety must have the authority to commission corporate security advisors and establishes procedures to do so.

* HB 1022 - Authorizes a return of premiums paid by insured’s.

* HB 1098 - Changes the laws regarding trust companies.

* SB 20 - Creates a sales and use tax exemption for materials and utilities used by commercial laundries.

* SB 67 - Authorizes certain court surcharges, Buchanan County to establish a county municipal court, certain circuits with a SORTS facility to appoint a court marshal, requires certain reporting regarding municipal courts and modifies procedure in landlord tenant cases.

* SB 142 - Requires the Department of Natural Resources to take certain actions when submitting plans to the Environmental Protection Agency.

* SB 345 - Increases fees imposed by the Director of the Division of Finance.

Legislative Committees Continue Investigation into Planned Parenthood Allegations

Committees in both the House and Senate have continued to ask questions regarding the allegations that Planned Parenthood has sold fetal tissues for profit. In the Missouri House, the Ways and Means Committee worked with the Children and Families Committee to take a close look at the actions of Planned Parenthood in Missouri in an effort to ensure illegal activities are not taking place in the Show-Me State.

The public outcry against Planned Parenthood began after an anti-abortion group released video showing a Planned Parenthood executive discuss how the organization disposes of the tissues and organs from aborted fetuses. Pro-life activists claim the video proves that Planned Parenthood is selling the tissues for profit, which is illegal. Planned Parenthood claims the allegations are not true and any costs associated with the tissues are there to cover related expenses.

During the hearing in the House, committee members were disappointed by the lack of information provided by the director of the Missouri Department of Health and Senior Services. Representatives asked numerous questions of Director Vasterling and several felt her responses failed to shed additional light on the practices of Planned Parenthood in Missouri. Both committee chairs said they plan to continue moving forward with the investigation as they seek answers regarding whether Planned Parenthood has broken the law, or if there are any loopholes in state statute that the organization can exploit. The committees plan to hold another hearing in the coming weeks.

Budget Committee Takes Closer Look at Medicaid Enrollment

The House Budget Committee met recently to take a closer look at a recent spike in Medicaid enrollment in Missouri. Members of the committee questioned representatives from the social services department regarding the state’s Medicaid system hitting a high point of 918,000 cases in May. That number is up by more than 55,000 cases from January, and is nearly 100,000 cases more than the system handled in May of 2014.

Officials learned the spike is the result of a combination of factors including a new enrollment system that was put in place in January, and new policies put in place through the federal Affordable Care Act. Department officials testified that the new enrollment system had its share of problems that led to a backlog of pending applications. The delays caused enrollment to drop sharply and then spike as employees created workarounds to process applications more efficiently.

The state has since terminated its contract with the vendor originally hired to develop the new enrollment system. Officials are optimistic the contract with a new vendor will lead to the successful development of a more efficient process. Department officials also believe things will stabilize as they fully adjust to Affordable Care Act processing and review guidelines.

Several members of the committee raised concerns about the impact these inefficiencies have had on some of the most vulnerable citizens in the state. They noted that the department had claimed the new system would be more efficient and provide adequately for all Medicaid recipients, but that the delivered product fell far short of expectations. They also questioned how much additional cost the state will incur now that a second vendor had to be contracted with to finish the system.

The Budget Committee plans to continue taking a closer look at the state’s Medicaid system when it meets again on September 15.

Tax Amnesty Period Begins

Missourians who owe back taxes now have the opportunity to pay their debts without penalties or interest thanks to a tax amnesty period approved by the General Assembly. The program began September 1 and runs through November 30.

The state revenue department estimates as many as 350,000 taxpayers could be eligible for the amnesty period and the state could generate as much as $75 million in revenue from the back taxes that are paid. The state has previously authorized tax amnesty periods that brought in approximately $74 million for fiscal year 2002 and $42 million for fiscal year 2003.

Anyone who makes use of the forgiveness procedures must agree to comply with tax laws and cannot use the same amnesty procedure again in future years. If they fail to comply, they will be charged the interest and other penalties that had been forgiven.

For more information, visit http://dor.mo.gov/amnesty.php.

As always, please do not hesitate to call or write me anytime with your questions or thoughts on this or any other issue. My Capitol office is 573.751.0246 and my email is jim.neely@house.mo.gov.