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March 15, 2007
Yesterday, by a vote of 143 to 4 the Missouri House of Representatives passed SB 284 related to the establishment of state franchises of video services.  I handled the legislation on the House Floor.

SB 284 will make way for major investments in telecommunications infrastructure across the State of Missouri and will provide consumers with greater choice for video, broadband, and telephone services.   Competition for these services leads to lower prices and better customer service for the people we serve.

Federal, state, and local regulations have not kept pace with the rapid change in technology.  Older monopolistic industries, like telephone and cable, who traditionally provided one brand of service have combined with newer technologies, like wireless and satellite providers, to bring multiple or bundled services to customers.   SB 284 will update our state laws to adapt to changes in the marketplace.

Our country has led the world in technological advancement and business development for more than 100 years, not because we are the lowest cost labor provider, or because we pursue protectionist policies, or that we prop up industries with public subsidies.  The United States leads the world because we support policies which encourage investment and reward risk.  We innovate, adapt, and drive for greater efficiency and productivity in the workplace.

Our responsibility, as legislators, is to ensure a level playing field for businesses to compete.  Unfairness and inconsistent regulations in the telecommunications industry are the problems that have called for this solution.  SB 284 establishes the same rules for companies who are already competing for the same customers.

Listed below are Customer Service Standards contained in the legislation:

• Video providers will maintain a local, toll-free phone line 24/7.

• Trained company reps must be available during normal business hours.

• Telephone answer time by a customer rep shall not exceed thirty seconds and transfer time on calls transferred shall not exceed thirty seconds.  A 90 percent compliance rate is required.

• Customers will receive a busy signal no more than 3 percent of the time.

• Standard installations must be performed within seven business days.  A 95 percent compliance rate is required.

• Service interruptions must be worked on no later than 24 hours after the interruption becomes known.  A 95 percent compliance rate is required.

• An appointment window for installation and service calls will be either at a specific time or, at a maximum, a four-hour time block.  A 95 percent compliance rate is required.

• An operator may not cancel an appointment with a customer after the close of business on the business day prior to the scheduled appointment.  A 95 percent compliance rate is required.

• If a service rep is running late for an appointment with a customer and will not be able to keep the appointment as scheduled, the customer will be contacted and the appointment rescheduled at a time when convenient for the customer.

• Refund checks will be issued promptly, but no later than 30 days following the request or within the customer’s next billing cycle, whichever is earlier.

• Credits for service will be issued no later than the customer’s next billing cycle following the determination that a credit is warranted.

• Should a provider not comply with these requirements, a local municipality could seek to revoke the provider’s authority to provide service via an administrative process.

Today SB 284 was Truly Agreed To and Finally Passed by the Senate and is on its way to the Governor for his signature.
3/15/2007
February 7, 2007

The slide of employer sponsored health care and rapid increases in insurance premiums has strained family budgets and made health care insurance out of reach for many Missourians.  During my last term, we took steps to rein in runaway medical costs by enacting legislation to reduce frivolous lawsuits, outrageous jury awards, and escalating insurance premiums.  These problems created a crisis for the medical community and the Legislature responded.  Health care affordability is again a top priority for the Missouri House of Representatives.  With our fiscal house in order we are working on a new program for low income Missourians.  We are also taking several steps to reduce the number of uninsured Missourians by making long-term health care insurance payments fully deductible, providing incentives for small businesses and their employees, and reinstating benefits for the working disabled.

In his State of the State address, Gov. Matt Blunt outlined his principles for a new health care program for low income Missourians called MO HealthNet.  This new program is designed to promote preventative care by establishing wellness plans monitored by primary care physicians.  Increasing reimbursement rates for doctors is another part of the plan. While Medicaid treats the symptoms of diseases like Type 2 diabetes, the goal of Healthnet is to help consumers make better choices and fight the causes of Type 2 diabetes.  Better health habits will lead to success in other areas of people’s lives.  

Of course, many people are paying for their own health care and it hasn’t gotten easier.  Our family budget has been squeezed by higher health insurance premiums, co pays, and monthly payments for braces, and I know there are many others who make difficult choices to meet their basic needs.  I am cosponsoring legislation to make the cost of long term health care insurance fully tax deductible.   The Governor has included this as a priority in this year’s budget and we are moving toward passage.  We should help people who plan and pay for their future health needs.

We are taking several steps to reverse the slide of employer supported health insurance this year.  I support proposed legislation that allows employer and employee health plan contributions to be made with tax-free dollars.   In addition, the Governor has proposed a franchise tax cut for companies who provide insurance for their employees.  There is a greater recognition in the Legislature that a quality job is a job that includes health benefits.

Next week, the House will take up legislation to renew the Medical Assistance for the Working Disabled program.  The program was eliminated because the costs were not controlled and it grew well beyond its original $7 million projected cost. There is a group of people who have very high medical costs due to a disability. They make a difficult choice to be totally dependent on the state and federal government or to work and lose thousands of dollars in health care benefits.  A job provides income and gives personal satisfaction.  This revamped program will reward work and lead to greater independence for more than 4,000 disabled Missourians.

People who lack the ability to pay for their own medical care have turned to the state and uncompensated care when they are in need.  For too many people, a trip to the emergency room is their only visit to a doctor.  That care is paid for through our taxes and cost shifting to paying customers.  As promised, I am working on health care affordability, encouraging small business owners to provide health care for valued employees, and providing assistance to people who pay for their own health insurance.  Finally, we are reshaping our health care safety net by focusing on the causes of illness and asking people to be proactive in their choices when the state is paying for their health care.

2/7/2007
Capitol Report - January 23, 2007

A key priority for the Missouri House this year is eliminating the tax on Social Security benefits.  The proposal would allow any taxpayer to subtract from his/her Missouri adjusted gross income the amount of Social Security benefits included in his/her federal adjusted gross income.  I have received some emails on the subject.  An email from a constituent reads as follows:

 “I am a 70 year old widow.  Removing the paying of the Missouri state tax from my income would be fantastic.”  She added, “I need to supplement my SS (Social Security) with a part time job. This part time employment requires me to pay my own SS which is a double wammy (and checking with the SS office I get NO benefit from this deduction since it is not counted toward what I have paid in).  I am paying SS on my SS.  This doesn’t seem fair to me.  Any increase in my pocket would be a great benefit.   I am not at the poverty level and do not want to be there, but I am not wealthy either.”

Another gentleman had these comments:  “Anyone with a calculator and a third grade education can figure out how punitive double taxation is to seniors.”

Missouri is one of only fifteen states which currently taxes Social Security benefits.  In 2006, a Legislative survey was sent to constituents in the 18th District.  Over 1000 people responded and the results were posted in the End of Session report.  One of the questions asked “Should Missouri eliminate pension and retirement taxes?”  Eighty-nine percent of those who responded were in favor of the tax cut.

Taxing retirement benefits is an unfair burden on our Seniors.  When people work their entire lives to support our society, raise their children, help their communities, and pay taxes, we should do everything possible to show our appreciation for that contribution.
Letting people keep their money will do more to help meet housing, food, and healthcare needs than a new program which would provide a fraction of the benefit.

The budget impact of the Social Security tax cut is expected to be $100-105 million. This is part of a larger than anticipated $300-500 million over revenue expectation.  There will be competing proposals on the best use of this money.

I have supported eliminating taxes on Social Security and pension benefits since first running for state office.  After several years of budget shortfalls, a rebounding economy and better management of state spending have provided an excellent opportunity to eliminate this double taxation.

The current poll question on my website (www.TomDempsey.org) asks your opinion on the process to amend the Missouri Constitution by initiative petition.  Please let me know your thoughts.

1/23/2007
Capitol Report - January 17, 2007

My thanks goes out to the hundreds of line workers who worked to restore power in St. Charles and surrounding counties.  Many came from great distances. All worked long hours in cold, wet conditions to restore electricity.  Working on power lines is extremely dangerous and I am reminded of the tragic death of a worker this past summer and it is a certainty that there have been too many others.

I have four words for Ameren Electric management, “Get your act together.”  For the third time in less than one year, there were severe power outages experienced throughout the St. Louis region.  Destructive storms wreaked havoc on electrical infrastructure bringing down trees, limbs, power lines, and poles.  Those outages, measured by days not hours, created real hardships for many people.  The storm that hit this past summer resulted in tree damage few have witnessed in our community and 500,000 homes went dark.  A severe ice storm last month knocked out power to approximately 300,000 homes in Ameren’s service area – extremely bad luck for a company already burdened by a disaster at Taum Sauk and a bad summer.  After the last two episodes, my only reasoning for the 150,000 homes that lost electricity this past weekend is poor long-range planning by our largest energy provider.

The State of Missouri granted Ameren Electric and other utilities a great privilege when it permitted those companies to operate as monopolies in their respective service areas.  The benefits to the State include access to service by everyone in the area, an integrated distribution system, and less of an intrusion on rights of way and private property rights.  In return, the companies have no competition and a reasonable return on their investment.

I am an advocate for affordable and reliable energy.  Recent events have shown that our system of delivering electricity is not reliable.  With great power comes great responsibility.  Ameren and the others have the responsibility to develop long-term policies to ensure the security of the grid.   They should be strong advocates for burying lines and replacing older infrastructure.  While few enjoy their trees being trimmed or cut down, it should have been a much bigger part of policy and public awareness.  At the very least, they should have been a harbinger of doom – warning states, local governments, and individuals that poorly placed seedlings and lack of pruning could lead to a crisis.

Destructive storms will continue to occur and there will be other power outages.  Better planning and decision making will contribute to smaller outages and a faster recovery.  When MODOT asked for a tax increase a few years ago, it was overwhelmingly rejected.  Citizens spoke loudly and clearly.  They want confidence restored before granting any additional money for roads.  Ameren is currently under consideration for a rate increase.   The Public Service Commission should restore public confidence before granting any increase.
1/17/2007
Capitol Report - April 13, 2006
My first experience in political office began in April 1998 when I was elected to the St. Charles City Council.  At that time, one of the biggest issues affecting the future health and well-being of the city was the plan to expand Lambert International by building a new runway 2.5 miles closer to the city of St. Charles.

Hundreds of St. Charles residents, including Jake Rast, Pat McDonnell, John Krekeler, Chris and Wayne Hoffman, Councilperson Rose Kasper and others, invested countless hours fighting the W1-W expansion plan.  As a member of the Council, I supported the city’s lawsuit against the airport to prevent what was perceived to be a wasteful, inefficient, and ultimately unneeded project.  After the court proceedings failed, the appeals were exhausted, and requests for intervention by the federal government were rebuffed, the runway construction commenced.

TWA is no longer in existence, much of the airline industry continues to operate with hemorrhaging losses, and St. Louis is no longer a major hub airport.  A St. Louis Post-Dispatch article stated that Lambert is one of the few airports that has not returned to pre-9-11 operating levels.  The projections used to determine the necessity of the expansion have not materialized.  Certainly, the terrorist attacks contributed to the decline of the airline industry, but so did a business model that accepted continual operations in the red.  Few airlines were making money before September 2001.

Yesterday, with great fanfare, Lambert Airport opened its new $1.1 billion runway.  I have spoken with Airport Director Kevin Dolliole and Mayor Slay about the history of the project.  I remain concerned about airport noise and how that impacts property values in St. Charles, as well as prudent use of taxpayer dollars by the airport.

Transportation infrastructure (air, rail, roads, river) is critical to the health of the region.  Lambert Airport is a regional asset.  Their success, or lack thereof, ripples through the economy of the entire state.  When American Airlines announced a significant reduction in the number of flights to and from St. Louis, it negatively affected cities as far as Joplin and Springfield.  My biggest disappoint with the process was the lack of inclusion of other communities in the decision-making process.  The city of St. Louis may own the airport, but it is supported in large part by fees generated by those who live in St. Louis County, St. Charles County, and other counties in the metro area.

The needs of the airport will not end with the opening of the new runway.  As we move forward, I will continue to press for regional airport governance.  The health of the airport affects us all and, as such, we deserve a voice in future decisions that may affect the quality of life in our region.

To register noise complaints with Lambert-St. Louis International Airport, call Gerald G. Tinnea, Noise Management Office, at 314-551-5064.
4/13/2006
Capitol Report - March 27, 2006
We have reached the halfway point for the 2006 legislative session.  For the first time in several years, the budget passed the House before Spring Break.  Several factors allowed for the bills to be taken up four weeks earlier than last year.  Governor Blunt started the process sooner by presenting his budget to the General Assembly on January 10th, almost three weeks earlier than his prior State of the State address.   Last year, the Governor had 8 weeks to put his executive office staff and Department heads in place before the beginning of the legislative session which contributed a later presentation.

Of course, the biggest change which allowed for a speedier process was the absence of projected budget shortfall.  As I have mentioned before, we experienced shortfalls ranging from $500 million to $1 billion over the last several years.  An improving national economy and job growth in Missouri have provided revenue increases rivaling growth we experienced in the mid 1990s.  In addition, the crafting of a new school funding formula based on student achievement and curbs in social services spending have helped to provide a balance budget without harmful cuts to services.

Eighty percent of the new available funding will go to K-12 education and Medicaid spending.  Next year’s budget includes a record $2.7 billion for elementary and secondary education-$167 million more than the current fiscal year.  An additional $263 million will be spent on Medicaid to cover healthcare services for the disabled, low-income and elderly Missourians.  Other investments include a 2% increase in higher education funding, a 4% pay raise for state employees and fully funding the Homestead Preservation tax credit.

In light of increased natural gas prices this winter, our first legislative priority was increased funding for Utilicare.  This program provides energy assistance for low-income families and the elderly on fixed incomes.  For the second time in the last two years, the House has passed tax increment financing (TIF) reform to rein in abuse of an economic development incentive that impacts local school funding.  A revised Ticket to Work program also passed the House which will allow for more than 3000 working disabled with very high healthcare costs to keep working while maintaining Medicaid coverage.

Soon after break, we will take up legislation to curb abuse of eminent domain as was seen in Sunset Hills.   We will also see action on other House priorities, like legislation to decentralize emissions testing, tougher penalties for crimes against children, and insurance reforms to help control healthcare costs.

The responsible, difficult decisions we have made these past few years have kept us from raising taxes or mortgaging our future.  Those steps we have taken have led to an improving economy, increased accountability, and prudent investments in state services.  We must be wary of past mistakes as we move forward make Missouri a better place to live, work, play, and raise a family.

Legislation to be considered when session resumes on Monday is available at www.tomdempsey.org
3/27/2006
Capitol Report - March 2, 2006
In 2001, with the support of members from both sides of the aisle, the General Assembly passed and the Governor signed a bill establishing the Medical Assistance for the Working Disabled (MAWD) program.  It provided a means for disabled citizens to continue to qualify for Medicaid while not being disqualified by income they earned from a job.  The job provided personal satisfaction and the ability for them to meet some of their other needs.  The program was expected to cost the state $7 million but ended up costing $100 million after implementation.  Necessary cost containment measures were not in place, and people who worked as little as 1-2 hours/month qualified for the program.

The program was eliminated by SB 539 last year as part of our efforts to rein in out of control government spending.  A revised bill with tightened eligibility requirements, HB 827, passed the House late last year only to fail in the Senate at the end of session.

Yesterday, we gave first round approval to the Ticket-To-Work program (HB1742) sponsored by Representative Chuck Portwood.  The program will help more than 3000 disabled Missourians keep healthcare benefits.  As in 2001, it is projected to cost the state $7 million of general revenue funds and a total of $16 million, which includes federal funding.  The legislation contains better provisions to control the cost to the state and guard against abuse.

There are people who are ready, willing, and able to work but are unable due to very high healthcare costs.  We should have a system that encourages them to be productive citizens able to provide for themselves rather than a system that encourages them to be totally dependent on the state for all of their needs.  This bill includes a sunset provision which will allow future legislators to review the program to be sure it is being used as intended.  HB 1742 is a responsible step in the right direction.

Note:  The current poll asks for your view on legislation to repeal the requirement for those on motorcycles to wear helmets.  I’ve always been concerned that we send the wrong message to children by passing this legislation.  I feel we are telling them, “to do as we say, not as we do.”  Let me know what you think.
3/2/2006
Capitol Report - February 14, 2006
One of the reasons for growth in the Medicaid population has been the decline in private coverage.  When insurance costs were increasing 5-10 percent annually, small businesses could afford to pick up all of the costs of providing healthcare benefits for their employees.  As those increases grew by 25 percent or more, many companies dropped company health plans or asked their employees to share the costs.  About 700,000 Missourians are currently without health insurance.

Last year, the General Assembly passed lawsuit reform to address one aspect of rising healthcare costs.  We have seen a new entrant into the market since passage of the legislation.  This year, we must pass medical malpractice insurance reform to deal with large insurance companies’ role in escalating prices.  Other ideas being pursued include small business insurance pools which lower costs by sharing risks, tax deductions equal to the premium for those who purchase their own health insurance, and tax credits for the purchase of long term healthcare policies.

Medical Savings Accounts (MSAs) and Health Savings Accounts (HSAs) are existing options for individuals that are not otherwise able to afford health insurance.  MSAs and HSAs allow businesses and individuals to contribute money for the purpose of healthcare and medical expenses.  The programs are coupled with a high-deductible insurance plan that allows recipients to pay premiums, co-pays, and other qualified medical expenses directly to the savings account.  The contributions are tax free.  Any money in the account accumulates annually until age 65 at which point the money can be withdrawn without penalty for any purpose.  There is no limit on the amount of money that can be in the account and the account is interest bearing.

Substantial increases in medical costs put a burden on household, business, and government budgets.   Addressing the cost, quality, and accessibility of healthcare is a paramount concern at the state level and federal level.   Government reforms to limit cost and new insurance options are but a few of our efforts to cure an ailing healthcare system. 

If you have any questions regarding our medical malpractice insurance reform legislation, Medical Savings Accounts, Healthcare Savings Accounts, or other healthcare questions, call me at 573-751-1141.

In next week’s Capitol Report I will discuss the progress in changing the emissions testing program.  Visit the poll section of www.tomdempsey.org to tell me what you think about emissions testing in Missouri.
2/14/2006
Capitol Report - January 12, 2006
Last night, Governor Matt Blunt laid out his priorities for the 2007 budget.  He presented a balanced budget without making harmful cuts to services, borrowing against our future, using fictitious revenues based on unrealistic growth or tax increases not approved by the public.  For the first time in four years, the State does not face a budget deficit that ranges between $500 million to $1 billion.  An improving national economy, growth policies that have led to job growth and preservation, and spending restraint have finally allowed us to get out of crisis management and plan for the future.

Without last year’s changes to Medicaid and passage of the new education funding formula, this year’s budget would have increased additional spending by more than $1.5 billion.  Divide that number by roughly 5.6 million Missourians and you have an additional burden of over $250 for every man, woman, and child in our State.

Here are some of the major spending decisions in the Governor’s 2007 budget:

-  Increase Medicaid spending $275 million to cover existing benefits for 900,000 Missourians, 16% of Missouri’s population.  With this increase the program will receive 29% of the entire budget.
-  Provide $137.2 million to fully fund the education formula passed during the last legislative session
-  A $1 per hour increase for in-home services to help ensure quality care costing $27 million
-  $6.1 million to provide emergency home heating assistance for the elderly, disabled, and low income families
-  Additional funding of $16.1 million to serve additional home-delivered meals to seniors
-  $1 million increase for the Parents-As-Teachers Program
-  Increase higher education funding by 2% to $17.1 million
-  Fund tobacco prevention/cessation efforts of $1 million by using money received from the Master tobacco settlement agreement
-  Add $531,340 to fund care and support for Alzheimer’s services
-  4% pay raise for State employees

These and many other priorities have been offered without raising taxes which affect individuals’ abilities to care for themselves.  During the Governor’s speech, he stated that the State workforce has fallen below 60,000 for the first time since 1999.  This is, in part, due to the reorganization in many departments making state government more efficient.  Finally, he stated that we will continue to weed out fraud and abuse in government and continue efforts to spend your tax dollars prudently and efficiently.

An improving economy is encouraging news.  Efforts we have made in responsible budgeting have allowed for new funding of State programs like Utilicare, Alzheimer’s support, and home-delivered meals.  We will continue to remake government and preserve vital services with existing tax dollars.

1/12/2006
Capitol Report – January 5, 2006
Last year we set out to improve Missouri’s economy, address our structural budget deficit, renew our commitment to education as the state’s number one priority, and toughen criminal laws to protect our communities and families.  We were able to accomplish many of our priorities and those changes are paying dividends.

Changes to our workers’ compensation system and curtailing lawsuit abuse have helped to create 28,000 new jobs.  In the St. Louis metro area alone, Chrysler and GM have announced significant investments to their production facilities providing hope that those companies and the good jobs they provide will remain in St. Louis for many years to come.  Also, Pfizer and Express Scripts, wooed by other states, have made the decision to expand in Missouri.  In August, we experienced the second fastest job growth in the country.

Job growth has provided for growth in our state budget.  To date, our state revenues have increased 4.9 percent over last year, which is over 3.5 percent more than projected.  That growth is welcome news as we provide vital state services. We are able to address the needs of growth in our prison population and higher healthcare spending.  In addition, we moved $80 million in transportation funding back to highway construction.

We passed a new school funding formula that places emphasis on student achievement.  This year we will fully fund that formula by adding $137 million to the K-12 budget. For the first time in more than a decade, the St. Charles School District is expected to receive an additional $200,000 annually in state funding.

In the past, crime bills were subject to dozens of amendments and ultimately failed to pass.  Recent changes made to the House Rules now allow us to control the process and resulted in the passage of an omnibus crime bill for the first time in several years.  Tougher laws have led to a reduction in violent crimes.    Arrests from methamphetamine production have fallen by 20 percent.  We are cracking down on repeat DWI offenders and those who have excessive blood alcohol content when caught driving.

We made promises to the people we serve that we would deal with these issues and we kept that promise.  Yesterday, the Speaker of the House, Rod Jetton, laid out some of  his priorities for this year.  I share those priorities with the Speaker in addition to my own.  I will work to protect private property rights and curb tax increment financing abuse.  I support stricter sentences for crimes against children (Jessica’s Law). I am a cosponsor of legislation passed in the House last year that will reinstate the MAWD program and help working disabled maintain healthcare coverage.

Insurance reform, changes to emissions testing, and title insurance oversight are a few of my other pursuits.   If you have an interest in bills I have filed go to this site: http://www.house.mo.gov/bills061/spon/spn018.htm .  I look forward to keeping you up to date on our progress this legislative year.  Have a Happy New Year!

Representative Tom Dempsey
Majority Floor Leader
District 18
 
Phone - 573-751-1141
Fax - 573-522-3383
1/5/2006
Capitol Report 9-19-05
As another hurricane moves toward the Gulf, the price of a barrel of oil moves to the stratosphere.  The escalating price of gas is forcing many families already on a tight budget to squeeze out more pennies, mine included.  This winter the price of natural gas is expected to rise 40 percent.

Last month, Molly and I spent time looking over our utility expenses, groceries, auto insurance, phone bill, etc. trying to lower our monthly expenses and cover the increased energy costs we experience and are likely to face this winter.  The house is a little warmer in the summer than it used to be and the family has become much better at turning lights off when we leave the room.  When I review my daily travel schedule, the goal is to maximize efficiency and drive as few miles as possible.  We are learning to conserve.

Last year the Missouri House passed SB179 (www.senate.mo.gov/05info/BTS_Web/Summary.aspx?SessionType=R&SummaryID=82443&BillID=5755), almost unanimously.  After an application has been filed by the utility company, the legislation gives the Public Service Commission(PSC) the authority to approve rate increases for cost recovery due to environmental compliance with a cap of 2.5 percent.  Currently, the PSC is considering a 1% rate increase or about $1.05 per customer.   Part of that increase would provide $1 million a year to fund a new low-income energy-assistance program and to expand existing energy-efficiency and conservation programs.  A 4 percent increase has already been rejected by the PSC and a decision is expected soon on the remaining 1 percent.

As a representative, I understand that people want answers and need relief.  At the state level, Governor Blunt has called on Attorney General Nixon to investigate any suspicion of price gouging by convenience stores.  For short term relief, a member of the Missouri House has proposed a gas tax holiday suspending our 17 cent gas tax for a couple of weeks.  We continue to foster the development of alternative fuels like ethanol and bio-diesel with proposals like the Missouri Rural Economic Stimulus Act(MoResa), a bill I sponsored two years ago and  signed by Governor Holden.

The Gulf Coast is a rich oil and natural gas producing region that has been disrupted by Hurricane Katrina.  Already stressed energy markets are reacting to the threat of another storm on the horizon.  Whether we choose to blame higher energy costs on OPEC, oil exploration in Alaska, SUVs, oil companies, or environmentalists, we are still left with the problem of trying to make ends meet and providing for our families.  I will continue to work with the Governor, Democrats and Republicans alike to do our part in the legislature to provide dependable, affordable energy.  Let us also hope for a mild winter.
9/19/2005
Capitol Report 8-18-05
Recently, an interim report for the 2005 legislative session was mailed to households in the 18th district.  Along with brief explanations of the legislation passed this year by the General Assembly, the district survey results were included.  There is a lot of information in those few pages and it’s impossible to understand every facet of a bill by reading a one line summary.  The quickest way to learn more about these issues is to go to the Missouri House website (www.house.mo.gov) and insert the bill number into the bill search function on the site.  Begin by using the “HB” or “SB” and then the bill number.  The Truly Agreed Summary will provide a better summary of the finer points of the legislation.  You are always welcome to call Rose and me for information, as well.

As for the survey, we received over # responses from the questionnaire we mailed in February.  The question on emissions testing elicited the strongest responses with an overwhelming majority believing the program provides no benefit to the public.

In April 2000, the Carnahan administration, under pressure from the Environmental Protection Agency, signed a seven-year contract with ESP Missouri to run the emissions testing program.  The program was part of the state’s solution to meet tougher air quality standards in metro St. Louis, a worthy goal.  Since its inception, 3.8 million vehicles have been tested at 12 area stations or by the Rapid Screen vans at a cost of $91 million in testing fees.  In addition to those costs, the extra step for vehicle registration has added inconvenience with no appreciable improvement in air quality over the old program. Over 90 percent of the vehicles tested pass.  New vehicle standards have made a much larger contribution to cleaner air than the Gateway Clean Air program.

A study commissioned by AAA reveals that automobiles in 1999 were responsible for only 9% of the VOC emissions in the non-attainment area and only 6% of Nox emissions. These two airborne pollutants combine to produce ozone which adversely affects our air quality.  As of 2005, the most recent data shows that automobiles now contribute 4% of the VOC emissions and 7% of the Nox emissions.

Last year, as the Chairman of Economic Development, my committee passed legislation to end the program only to see it die before reaching the floor of the House.  During the most recent session, we were finally able to debate the value of the program.  An amendment to end the program failed. Out state members bowed to fears that an end to the program would endanger federal highway funding, though it has not occurred in other states where the program has been terminated.

Meetings are currently underway to look at Missouri’s experience with emission’s testing before a new contract is approved in 2007.  I’ll keep you informed on any changes that come from those meetings.
8/18/2005
Capitol Report 7-8-05
Last year the legislature passed the Missouri Sales Tax Holiday to help families prepare students for their back to school needs.  During a three day period in August, the state waived sales tax on certain back to school items.  A provision was placed in the law to allow counties and municipalities to option of not participating. Only 179 of more than 1000 cities across the state voted to eliminate the city sales tax holiday exemption.  A study commissioned by the Missouri Chamber of Commerce showed that participating cities saw a 3.1 percent increase over 2003, while cities that "opted out" of the holiday experienced a 2.2 percent increase in 2004 over the previous year.

The state sales and use tax holiday is for certain back-to-school items such as clothing, personal computers, certain computer software, and school supplies purchased during a three-day period each August.
The sales tax holiday includes:
(1) Clothing – any article having a taxable value of $100 or less;
(2) School supplies – not to exceed $50 per purchase;
(3) Computer software – taxable value of $350 or less;
(4) Personal computers – not to exceed $3,500; and
(5) Computer peripheral devices – not to exceed $3,500.
This year, the holiday will be August 5 through August 7, 2005.

The holiday does not apply to retailers when less than 2% of their sales are for qualifying merchandise during the holiday.  For the 2005 sales tax holiday, the ability for local governments (city, county, or district) to opt out of the holiday is limited to those that opted out in 2004.  After the 2005 sales tax holiday, any political subdivision may opt out of the holiday by adoption of a local ordinance if submitted to the Department of Revenue 45 calendar days before the beginning of the sales tax holiday occurring in that year.  St. Charles County and all of the municipalities located within the county are participating.

For additional sales tax holiday information for vendors and consumers, and for a list of local political subdivisions which have opted out of the holiday, please contact the Department of Revenue, Sales/Use Tax at (573) 751-2836 or salesuse@dor.mo.gov
7/8/2005
Capitol Report 7-1-05
I’ve always encouraged responsible policies to grow our state’s economy, encouraged investment, and pushed for changes to programs that have been abused or unproductive.  Two years ago, as the Chairman of Economic Development, I worked retool and enhance state incentives.  We passed the Missouri Downtown and Rural Economic Stimulus Act, as well as Governor Holden’s Jobs Now bill.  Also, I sponsored the Tax Credit Accountability Act and have been advocate for reform of tax increment financing (TIF) laws.  This past year the Missouri House overwhelmingly passed a bill I cosponsored, HB91, which would have eliminated TIF abuses.  Unfortunately, the bill died in the Senate.

The surprising U.S. Supreme Court ruling which sided with economic development interests on public taking of private property has set the stage for legislation next year reigning in the use of eminent domain.  The Court said that individual states retain the authority to set limits and Governor Blunt has created a task force for the express purpose of crafting a proposal to protect property owners where no clear public interest exists.

Eminent domain has been an important and controversial tool for cities to attain property for infrastructure improvements.  The city of St. Charles acquired property through condemnation to make the Hawk’s Nest overpass a reality.  While property rights advocates were shocked by the decision, Gary Markenson, director of the Missouri Municipal League, said he was somewhat surprised by controversy the court has generated since all it did was uphold the status quo.  Property owners, city governments, utilities, and economic developers will be wrestling over what determines “the public interest” over the next six months.  Certainly, a bill will be filed and seriously considered next session.

TIF reform will be back next year, too.  The Senate has formed an interim committee to look at changes and I’ll be filing a bill in December to protect local school district revenues from unwise policy decisions performed under the guise of economic development.

Have a happy and safe holiday!  Molly, the children, and I will be passing out candy in the parade on Monday.  We hope to see you there.
7/1/2005
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  • Legislative Session is Adjourned