2010 Legislative Update - end of March

Dear Friends,

The Kansas Legislature worked late into the night last Tuesday to wrap up its work before First Adjournment. Now staff will finalize the bills approved by lawmakers and send them to the Governor for his consideration.

Statehouse Visitors

I had the opportunity to recognize Steve Bushnell and the Seaman High School baseball program in honor of their 25th anniversary season. During the past 10 seasons, the Seaman program has appeared in 7 state championship games; winning five state titles, claiming two runner-up finishes and third place while compiling an overall record of 206-52.

March 30th was Welcome Home Vietnam Veterans Day. I was pleased to chat with and welcome Rodger Beach from the Eskridge area. He is a member of the local chapter of Vietnam Veterans of America.

I also enjoyed welcoming classes from Indian Hills Elementary School, who visited the capitol on March 30th.

Bills on Their Way to the Governor

In our two days of work this week – the House and Senate agreed to send more than 50 bills to the Governor. Here’s a look at a few of them:

School Employment Deadline Extended: SB 362 would move the deadline for school districts to notify teachers and administrators whether they would be retained for employment from May 1st to the third Friday in May. The change is meant to give districts more time to figure out whether they can afford to keep teachers and administrators for the coming school year. The calendar extension stems from the Legislature’s decision to delay its debate on the state budget until the wrap-up session.

Supporters say without knowing exactly how much funding schools districts would be receiving for the coming year, it would be impossible for school boards to know how much they have to spend on teacher and administrator contracts. Teachers and administrators would have 14 days to let the school district know whether they were going to accept the district’s employment offer.

Special Education Funding: SB 359 addresses concerns surrounding catastrophic funding for special education. The bill clarifies the eligibility requirements school districts must meet in order to receive additional funding for services they provide to special education students.

The issue came to light this session after a Legislative audit report found three Johnson County school districts found a legal way to make claims for millions in catastrophic aid – funding that otherwise would have been shared with all Kansas school district to cover special education costs.

Human Trafficking: Sub for SB 353 would expand the crime of human trafficking to add coercing employment and peonage (involuntary servitude) as two additional ways to commit the crime. It also would add human trafficking and aggravated human trafficking to the list of crimes which are subject to forfeiture, i.e., seizure of the property and the proceeds of the illegal activity.

Autism and Oral Anti-Cancer Treatment: Senate Sub for HB 2160 would establish a two-year pilot program through the state health insurance program for the diagnosis and treatment of Autism. Commonly referred to as a “test track,” the pilot program lets the Legislature see what the true costs are before it mandates health insurance coverage for a specified health care benefit or provider of health care services.

The bill also would mandate insurers who offer prescription coverage also provide coverage for prescribed, orally administered anti-cancer medications used to kill or slow the growth of cancerous cells on a basis no less favorable than intravenously administered or injected cancer medications that are covered as medical benefits.

Journalist Shield Law: Senate Sub for HB 2585 would offer limited protection to journalists from being forced to identify sources and disclose information that hasn't been published or broadcast.

Cemetery Trust Funds: House Sub for SB 75 would give the Secretary of State’s office new authority to work with cemeteries with underfunded prepaid trust funds. It would allow the cemeteries that are found to have mismanaged their money to come up with a plan to become solvent. The management of cemetery trust funds came under scrutiny after problems at cemeteries in Hutchinson and Topeka.

Funeral Director Duties: Senate Bill 475 would clarify the services a funeral director can perform. The bill also would exempt persons engaged in the business of providing cremation services, for five consecutive years prior to this act from the apprenticeship requirements for licensure as a funeral director, provided application for such licensure is made within six months of the effective date of this act. Any person who is exempt from the apprenticeship requirements would have a grace period of 120 days to comply with the requirements for licensure as a funeral director.

Online State Billing: Senate Bill 410 would permit the acceptance of debit cards by state agencies and would establish the online payment process the website business hosting the state agency’s online payment service must follow.

Bills Signed into Law

Of the bills sent to the Governor, he has signed at least 49 of them into law – including a statewide smoking ban and a ban on synthetic marijuana. Here’s a look at a few others:

Concerning military installations and adjacent areas: House Bill 2445 encourages communication and collaboration between military bases and the communities surrounding them. The new law will require them to meet at least once a year and notify and work with one another regarding any development, project, or change that alters or amends previous development plans. The bill takes effect upon its publication in the Kansas Statute Book.

Concerning rural water districts and annexation: House Bill 2283 enacts new law that will require a city to give written notice to a rural water district at least 60 days before the effective date of a proposed annexation of land served by the district into the city. If the city designates a different supplier for the annexed area, the city would be required to purchase the property, facilities, improvements, and going concern value of the district located in the annexed territory. The new law also outlines the method in which the city and rural water district is to engage in mediation. In addition, it outlines the additional factors that must be determined by a rural water districts governing body when determining whether or not lands should be released. The bill takes effect upon its publication in the Kansas Statute Book.

Concerning Midwest Interstate Passenger Rail Compact: House Bill 2552 enacts the Midwest Interstate Passenger Rail Compact to promote improvements to passenger rail service and the development of plans for long-range high speed rail service in the Midwest. The legislation also coordinates interaction between Midwestern state elected officials and their designees on rail issues as well as the interests of public and private sector partners. This bill goes into effect upon its publication in the Kansas Statute Book.

Concerning Passenger Rail Service in Kansas: Senate Bill 409 authorizes the Kansas Department of Transportation to establish and implement a passenger rail service program by entering into agreements with Amtrak, other rail operators, local jurisdictions, and other states; working with local jurisdictions; providing loans or grants to passenger rail service providers from a Passenger Rail Service Revolving Fund; and seeking further funding for passenger rail from the federal government. The bill does not propose a revenue mechanism for funding the activities and leaves the initiation of the activities outlined in the bill to the Secretary. The bill takes effect upon its publication in the Kansas Register.

Concerning Unemployment Fund Rates: House Bill 2676 eases the financial burden on businesses as the state works its way through the national recession by reducing contribution rates for employers in rate group 1 through 32 to the 2010 original tax rate computation table. Contributing employers in rate groups 33 through 51 remain at their current capped rate of 5.4 percent. In addition, HB 2676 gives employers 90 days past the due date to pay their contribution taxes without being charged interest. This bill goes into effect upon its publication in the Kansas Register.

Concerning state purchasing laws and regulations: House Bill 2433 expands a program exempting the University of Kansas and Fort Hays State University from state purchasing laws and regulations, including the Prison Made Goods Act to include all Regents universities, the University Press and certain real estate leases. The new law also authorizes the Secretary of the Department of Corrections to sell prison-made goods to private residents and businesses of Kansas. The bill takes effect upon its publication in the Kansas Statute Book.

Other Legislative Activity

Health Care Constitutional Amendment Proposal Fails

The Kansas House twice rejected a proposal last week to amend the state’s constitution aimed at blocking the federal government’s recently passed health care reform bill.

House Concurrent Resolution 5032 received a 75-47 majority Tuesday but fell short of the two-thirds majority — 84 votes — necessary in the 125-member House to put a constitutional amendment before voters. Then on a vote to reconsider the resolution on Wednesday, it again got 75-47 – still short the required two-thirds majority.

Supports of the constitutional amendment said the federal plan signed into law Tuesday was an unconstitutional takeover of health care. They argued the measure was necessary to protect Kansans from being forced to buy federal health insurance.

Opponents said the U.S. Supreme Court will decide whether the federal program is constitutional and the state amendment would only tie the hands of the Kansas Legislature when it came to making state insurance policy decisions.

Rainy Day Fund Constitutional Amendment Passes House

I had the privilege of carrying SCR1614 on the House floor.

The House voted 102-20 to approve Senate Concurrent Resolution 1614, a proposed amendment to the Kansas Constitution that would establish a budget stabilization fund, as known as a rainy day fund.

The House amended the resolution. Some of the keys to the proposed constitutional amendment include:

• The transfers into the fund are automatic.

• There are a number of checks and balances for when money from the fund can be appropriated:

o Money can only be transferred from the fund by a separate act of the legislature, not as a line item in one of state mega budget bills.

o Those transfers are further limited to the difference in current and the previous year's revenues.

• The resolution also includes the creation of a debt prepayment fund and automatic transfers into that fund.

Negotiators from the House and Senate (of which I am a member) will meet to work out the differences between the two chambers’ versions of the resolution. Two-thirds of both chambers must approve the resolution to put the measure on the General Election ballot in November for Kansas voters to consider.

House Votes to Strengthen DUI Laws

A bill that would require first time DUI offenders to have ignition interlock devices install on their vehicles for a full year received unanimous support in the House last week.

The locks would require the driver to blow into a device that would determine whether the driver had been drinking. If he tests positive, the vehicle would not start. It is just one of several measures in Senate Bill 368 that would increase penalties for people receiving a first, second, third and fourth Driving Under the Influence conviction.

The Senate approved a different version of Senate Bill 368 so negotiators from the two chambers will meet to work the differences.

House Committee Request Interim Study on Health Care Price Transparency

The House Health and Human Services Committee held hearings on HB 2288 that would allow people to learn how much their health care treatment will cost before it happens.

The bill, referred to as the health care cost transparency bill, would allow someone to submit a request to his or her doctor for an estimated cost. Questions were raised about the doctor’s ability to provide accurate information because federal law requires each provider bill separately for their services. It also forbids providers from sharing how much they charge for their services.

The hearings made it clear to learn more about the complexity of getting accurate and timely estimates of the price of health care for consumers. The committee requested an interim study on this issue so that more detailed legislation could be forthcoming next session

House Resolution Requires Challenge of New Federal Health Care Law

House Republicans introduced a resolution Monday to require Kansas Attorney General Steve Six, to challenge the constitutionality of the new federal health care law.

House Resolution 6036 would require Six to either file the state’s own lawsuit against the federal government or join with at least 14 other attorneys general in a lawsuit already filed.

The measure only needs to be approved by the House. It has been assigned to the House Federal and State Affairs for a possible hearing when lawmakers return to Topeka for wrap-up session.

Wrap-up Session

Approving balanced budgets for Fiscal Years 2010 (current budget) and 2011 (begins July 1st) will top the Legislature’s to do list when we return on April 28th to wrap-up the session. While early reports show the state’s tax revenues for March came in as expected (the first month to hit the mark since October), the state still faces a nearly $500 million budget gap between approved spending and tax revenues.

The April Consensus Revenue Report due out April 16th will guide much of our discussion. It would be fantastic if the report were to show our economy recovering and tax revenues increasing. But I am very doubtful that will be the case. I expect it to show our state’s economy will continue to struggle for the next year or two. The Legislature will use the report to help it determine whether to cut spending, raise taxes or a combination of both to balance the budget.

Mike Burgess serves north and west Shawnee County and southern Wabaunsee County, including Alma, Eskridge, Harveyville, Rossville, Silver Lake, Willard and a little bit of Topeka.