IN THIS ISSUE:

• District court rules gaming law is constitutional
• Session kept on pause
• Energy bill update
• Lifeline program offers financial assistance to seniors for telephone service
• Proposed changes to graduated drivers licensure
• Rural development proposal announced
• In committees next week

DISTRICT COURT RULES GAMING LAW CONSTITUTIONAL

Last week, Kansas District Court Judge Charles Andrews ruled that Kansas Expanded Lottery Act (KELA), as enacted by the 2007 Kansas Legislature, is constitutional.

In 2007, the state legislature passed SB 66 to enact the KELA authorizing a state-owned and operated lottery, involving lottery and racetrack gaming facilities.  The law contained a provision that any action challenging the constitutionality of SB 66 "shall be brought" in the Shawnee County District Court. Last year the Attorney General's office filed a challenge to the new law with the intent of clarifying the constitutionality of the bill (State ex rel. Paul Morrison v. Kansas Lottery and Ed Van Petten, Case No. 07-C-1312).

Proponents of gaming expansion wanted court approval of KELA as a means of assuring investors that gaming would remain legal in Kansas for the long-term.  The Attorney General argued that the law only allows the state to regulate casinos, not operate them, since the state will contract with private businesses to operate the casinos.

 "Kansas owns and operates the lottery because it has complete power over the casino manager, from manager selection through the manager's daily activities," Andrews said in his decision.  "In addition, the lottery owns and operates the game of chance at any new casinos by owning the software, and has complete control over the games played. Also, the lottery owns and operates the consideration that is paid by controlling the daily revenue procession and distribution."

This court decision marks an important step in the process to establish four state-owned casinos and slot machines at horse and dog tracks in Kansas.  In response to the ruling, the Attorney General will appeal the decision to the Kansas Supreme Court on May 14, 2008. 

Revenues from expanded gaming would generate funds to pay down state debt, keep our promise to fully fund public education for Kansas schoolchildren and paying down bonds to the Kansas Public Employees Retirement System.  Most importantly, the issue must be resolved as quickly as possible, as most of the next budget's principles will be tremendously impacted by a reversal of the law.

SESSION KEPT ON PAUSE

Since the start of the legislative session on January 14, the Kansas House of Representatives has recorded six final action votes.  Within the same period in 2007 and 2006, that number was over 20.  These numbers strongly suggest that the Kansas Speaker of the House (who controls the House daily agenda and dictates what bills will be discussed) intends to keep the session at a standstill until the Holcomb issue receives a vote on the House floor.

House committees in the Capitol continued their snail pace with testimony scheduled on very few bills.  In fact, two very important committees met less than half the time, Federal and State Affairs and Insurance and Financial Institutions.  Most committees continue to hold briefings and presentations from staff and others, but budget review and actual hearings on bill proposals are rare.  Meanwhile, weeks of opportunity continue to slip away with little to no movement or debate on the House Floor.

I consider the current lack of movement in the House an unacceptable waste of your taxpayer dollars.  Once the opening gavel raps in January, lawmakers cannot afford to waste time.  With only three months of the year reserved for the legislative session, we cannot let entire weeks pass making little to no collective progress as a governing body.

Of course, the energy issue deserves serious discussion.  I continue to support the advancement of renewable energy development in our state and I will not let Kansas base-load energy needs go unmet.  At the same time, the Kansas House of Representatives has a responsibility to address all the interests of the state, treating other pieces of proposed legislation with the same sense of urgency as the coal plant expansion bill.

 There are many other critical issues facing the 2008 session, including affordable health care, quality education for your children and fair tax policy.  You and your family need to see progress and I refuse to lose focus in spite of the House Speaker's failure to adequately balance the House calendar.   I will continue to look for opportunities to advance these initiatives, as the second month of the legislative session gets underway.

ENERGY BILL UPDATE

A grim and terse Rep. Carl Holmes, R-Liberal, convened his House Energy and Utilities committee for just seconds Friday morning, announcing he has been ordered not to work the Sunflower Energy bill.  He then adjourned the meeting without further comment.

The measure to allow construction of two 700-megawatt coal-fired power plants near Holcomb has been the subject of a week's hearings before his committee, and late Thursday, signals were mixed about what would happen on Friday.

Holmes wouldn't elaborate on the future of the measure, and left the building within minutes of adjourning his committee.

Initial speculation had House Speaker directing the bill to the two-day-old "Select Committee on Energy and Environment for the Future," which is chaired by Rep. Don Myers, R-Derby.   However, by the end of the day it was clear that the bill would remain in House Energy and Utilities.

It would seem that given the objections from the anti-tax crowd on the carbon tax proposal that the bill turns into a simple override of the decision of Health and Environment Secretary Rod Bremby and authorizes Sunflower to build its $3.4 billion plant in far-west Kansas.  In addition, all the conservation, and other green provisions will most likely be stripped.

(above adapted and used by permission from Hawver's Capitol Flash)

After the highly publicized energy bill- HB 2711- was introduced to both House and Senate chambers last week, proponents and opponents each spent two days this week presenting their respective arguments in committee testimony.

Below are points made by proponents and opponents during testimony this week:

Proponents:

• The design for the Holcomb plant would make it the cleanest coal-fired power plant in Kansas by incorporating a number of new technologies
• Increased transmission capacity built for the plant would enable more wind production
• During construction, the Holcomb project will bring over 2,000 craftsmen during the construction phase and several hundred permanent jobs for local workers after plant completion
• The Holcomb project will bring millions of dollars of investment to the local economy and across the state
• In the last 10 years, Kansas has moved from being a net exporter of energy to a net importer, requiring additional electrical generation capacity, which would be changed with HB 2711
• The Holcomb plant will make Kansas a leading energy exporter in the Midwest and further create electric generation from solar, biomass and other emerging energy technologies developed in efficiency and conservation programs
• Decisions to regulate carbon dioxide should lie within the legislature, similarly to 26 other states
• The proposal will, for the first time, open up Colorado markets to Kansas power
• According to the United States Census Bureau, world energy demand will increase by 20 percent by 2025, further increasing need for HB 2711

Opponents:

• The bill will overly increase regulatory requirements and introduce new layers of unpredictable complexity into an administrative legal system. In particular, the creation of an emissions cap and a carbon penalty only increase government bureaucracy
• The bill was unethically written to change Kansas law with an intent to provide an avenue for Sunflower Power to build two new coal-fired power plants
• The legislature is not under obligation to act on the Holcomb decision, and an insistence to do so only complicates the situation. HB 2711's wide-ranging authority increases the risk of a "constitutional collision" between the judicial, legislative and executive branches of government
• Congress is in the process of passing major federal legislation to require a reduction in overall CO2 emissions (between 60-80 percent from current levels) by 2050. Two 700MW coal-fired power plants that emit more than 11 million tons of carbon dioxide each year will make it difficult for Kansas to comply with upcoming federal climate-change regulations.
• HB 2711 fails to recognize the economic value and long-term importance of renewable energy to the Kansas economy. Kansas needs comprehensive energy policy and planning to prepare Kansas to capitalize on its natural resources, not a "quick fix" for fast energy that will do more damage to the state in the long-term

The Governor's Compromise:

• The Governor believes standards must be set higher than the minimum standards.  Under the current bill, any coal plant applying for a permit and meeting the very minimum standards established by the EPA could be granted a permit, regardless of Kansas' energy needs. 

• The Governor does not support the "carbon dioxide emission offset act" because it needs scientifically-based, verifiable, additional, permanent, and enforceable reductions in greenhouse gas emissions, or increases in biological sequestration, which currently do not exist in HB 2711.

• The Governor believes the bill's proposed low monetary penalty for failing to offset ($3 per ton), offers no incentive to invest in real offsets and is not in line with the $20-30 estimates made by utility companies or financial analysts, or contained in any proposed Congressional legislation.

• The Governor does not support revoking the Secretary of the Kansas Department of Environment of his critical authority to insist that coal plants meet more stringent standards than those established by the federal agencies to protect the health and environment of Kansans.

• The Governor encourages increased commercial wind power and transmission development in Kansas

• The Governor wishes to join 36 other states in development of a comprehensive climate change action plan. This would involve an open discourse among distinguished citizen leaders from business, environment, government and other key sectors of our state economy, in addition to a partnership between the Executive and Legislative branches. 

LIFELINE BILL EXPANDS TELEPHONE SERVICES TO LOW INCOME SENIORS

This week at the Statehouse, House Bill 2637 was approved, and aims to expand a service known as LifeLine.  This program offers significantly reduced telecommunications service for eligible seniors.  Nationally, telecommunications companies have offered the service for quite some time.  However, there have been significant challenges in generating an interest in Kansas proportional to the number eligible. 

Through HB 2637, the Department of Social and Rehabilitation Services agreed to partner in efforts to expand the service.  Based on lists of consumers participating in current low-income programs through the agency (ex: National School Lunch Program, Food Stamps, Supplemental Security Income, etc.), SRS will generate a bi-annual list of those potential customers eligible for the LifeLine program.  After eligible participants grant consent and telecommunications companies sign a confidentiality agreement, SRS will distribute the list to the telecommunications companies who will automatically enroll those customers into the LifeLine program.

Additionally, the bill would allow Kansas Corporation Commission more companies to offer the program and present consumers with additional carrier options.  It ensures fair and equal treatment for Incumbent Local Exchange Carriers (ILECs) and Competitive Local Exchange Carriers (CLECs).  The Federal Universal Fund and the Kansas Universal Fund will partially fund the discount. 

Overall, this bill offers a positive opportunity to reduce phone bills for Kansas seniors.  Due to the assistance of SRS, the bill will be enormously helpful in identifying qualifying customers who previously failed to enroll.  The list generated by SRS- with consumer consent and protection- guarantees all eligible Kansas customers will receive the discount if they wish and will save them the inconvenience of reapplying annually or manually.  The LifeLine program saves the average eligible customer approximately $200 annually in telecommunications costs.     

CHANGES PROPOSED TO GRADUATED DRIVER'S LICENSURE PROCESS

The House Transportation Committee met recently to discuss Senate Bill 294, proposing to modify the process for granting driver's licenses to teenagers in Kansas.  No action was taken however.

This legislation developed to increase the amount of supervised training time teenage drivers in Kansas receive before they are allowed drive on their own. Under current law, a teenager may receive an instructor's permit at age 14 and a restricted license at age 15.  After turning 16, a teenager may apply for an unrestricted driver's license at any time, but only after completing a driver's education course or a driver's test administered by the license bureau.

The new bill proposes to increase the age requirement for an instructor's permit to 15 and the age for a restricted license to 16.  This proposal allows a teenager to receive full licensure at age 16½, after the teenager spends at least six months driving under a restricted license.  The restricted license would limit its holder's driving privileges, with driving allowed only between the hours of 5 a.m. and 9 p.m.  The only exceptions are driving with a supervising adult, driving between to and from work, or driving to a school-sponsored event.  Operating a cell phone while driving is prohibited under the new license and the driver may only have one passenger in the car at a time (unless a supervising adult is present). 

Several legislators on the House Transportation Committee expressed reservations about changing the age requirement for an instructor's permit from 14 to 15. Opponents raised important concerns about the proposal, citing both Kansas' rural logistics and its farming heritage.  Families in rural communities across the state have long opted to teach their children to drive early for the specific purpose of obtaining a farmer's permit.  Because farming is a family business and important part of Kansas culture, teenagers in these communities learn to drive trucks and operate machinery at a young age so they may actively participate in family farm life. 

Those in support of the bill also offer worthwhile considerations.  Proponents argue that young drivers need more practice behind the wheel than current law requires before granting full licensure.  Teenagers account for the highest population of automobile accidents on the road.  They suggest that additional time under more stringent rules will help develop better driving behaviors make Kansas roads safer for all drivers. 

This issue remains "in progress."  Legislators are exploring opportunities to guarantee appropriate driving practice before full licensure without raising age requirements.

RURAL DEVELOPMENT INITIATIVE

This week, organizations and legislative leaders recommended the passage of SB 453, which includes the creation of the Kansas Commission on Rural Policy. 

Those in support of the bill argue that rural communities receive inadequate support for economic development and need concentrated assistance from Kansas legislators.  Proponents suggest the commission would "concentrate on retaining wealth in rural communities, youth development programs, entrepreneurship and leadership promotion."

If approved, funding from the state would begin at $250,000 annually, eventually increasing to $1 million a year when the commission would focus more on offering tax credits and incentives for economic development in western Kansas.

Lawmakers from both rural and urban communities fully recognize the importance of further developing and supporting Kansas rural communities.  However, I question the need for the Kansas Commission on Rural Policy.  Less than one month ago, the Kansas Department of Commerce unveiled the Kansas Office of Rural Opportunity, which the 2007 Kansas Legislature created to address community development issues in rural Kansas. The Office of Rural Opportunity helps rural communities "develop strategic plans designed to attract businesses, families and capital investment. The programs and services align with longstanding community and economic development programs administered within the Department of Commerce."

In addition to the Office of Rural Opportunity, a Rural Life Task Force also exists to examine specific issues related to rural Kansas communities. 

In a year of increased concern for streamlining government, I like others harbor concerns about a legislative proposal that adds yet another layer of state bureaucracy in an agency hard to hold accountable to elected leaders.  Though state-funded, the current program operates at the local level.  This is an important distinction, as our rural communities deserve immediate access to state services.    

Overall, the bill needs further examination.  Currently, it remains unclear what service would be significantly improved by removing rural policy from state administration and placing it under legislative authority.  More than anything, it seems as though the proposed bill would only add another layer of bureaucracy to the system at a time when streamlining government is important.  The bill is currently under review in the Senate.

IN COMMITTEES NEXT WEEK

Please feel free to let me know if you would like any further information on these bills, or would like to testify before a committee on an issue important to you.  Individuals wishing to testify are required to notify the committee assistant at least 24 hours in advance of the meeting.  Thirty-five copies of written testimony must be provided to the committee assistant by 4:30 PM on the previous day.  Please note that that committee schedules are subject change at any time, so please confirm any hearing you wish to attend in advance by calling me at 785.296.7647, or checking the House Calendar at http://www.kslegislature.gov/. 

House Agriculture and Natural Resources:

Time/Location: 3:30 p.m. Docking Room 783

Monday, February 11

Hearing on:

• HB 2748 - Possession of wildlife; tagging of big game and wild turkey

Thursday, February 14

• Update on Kansas Meat Processors Association

Appropriations

Time/Location: 9:00 a.m. Capitol Room 514-S

Monday, February 11

• Report from State Board of Healing Arts
• Report from Board of Emergency Medical Services
• Briefing on KU Cancer Research and doctors for rural Kansas

Tuesday, February 12

• Report from Transportation and Public Safety Budget Committee

Wednesday, February 13

• Report from Social Services Budget Committee

Thursday, February 14

• Status of Bonding in Kansas:
• Wichita Center for Graduate Medical Education presentation

House Commerce & Labor

Time/Location: 9:15 a.m. Docking Room 784

Wednesday, February 13

Hearing on:

• Appraisers Licensing

Thursday, February 14

Possible action on:

• Appraisers Licensing

House Economic Development and Tourism:

Time/Location: 3:30 p.m. Capitol 519-S

Monday, February 11

• Overview of Kansas Technology Enterprise Corporation

Tuesday, February 12

Hearings and possible action on:

• HB 2657 - Limitation on motorboats exhaust noise
• HB 2679 - Limitation on motorboats exhaust noise requirements

House Education:

Time/Location: 9:05 a.m. Capitol Room 313-S

Tuesday, February 12

Hearings on:

• HB 2754 - School districts; Medicaid replacement state aid
• HB 2753 - School districts; distribution of state aid for special education and related services

Wednesday, February 13

Hearings on:

• HB 2734 - School districts; consolidation, state financial aid
• HB 2760 - School districts; consolidation; low enrollment weighting

Thursday, February 14

Hearing on:

• HB 2778 - Screening and treatment for dyslexia and related disorders

House Elections and Governmental Organization:

Time/Location: 3:30 p.m. Docking Room 784

Monday, February 11

Hearing on:

• HB2749 - County hospitals; administrator contracts

Tuesday, February 12

Hearing on:

• HB2718 - Secretary of State; authorization to make certain loans to counties using HAVA funds

Wednesday, February 13

Hearing on:

• HB2747 - Municipalities; unilateral annexation; voter approval required (proponents)

Thursday, February 14

Continuation of hearing on:

• HB2747 - Municipalities; unilateral annexation; voter approval required (opponents)

House Energy and Utilities:

Time/Location: 9:15 a.m. Docking Room 783

Monday, February 11

Hearing on:

• HB 2638 - Location and mapping requirements for underground water facilities

Tuesday, February 12

Hearing on:

• HB 2634 - Grant program for deploying broadband service in underserved rural areas

Wednesday, February 13

Hearings on:

• HB 2692 - Scrap metal dealers, including stainless steel as a regulated scrap metal
• HB 2681 - Review of regulations and laws with the intent of promoting nuclear industrial development

Thursday, February 14

Hearings on:

• HB 2639 - Energy resources commission, establishment
• HCR 5029 - A concurrent resolution urging Congress and the President of the United States to develop a program of capturing and storing carbon and other greenhouse gases

House Federal & State Affairs:

Time/Location: 1:30 p.m. Capitol Room 313-S

Monday, February 11

Introduction of bills

Continuation of hearings on:

• HB 2003 - Exception allowing day care homes to have double the amount of children licensed for during limited time periods before and after school
• HB 2053 - Licensure of child care facilities by cities, counties and school districts

Wednesday, February 13

Hearing on:

• HB 2602 - Creating the crime of use of a controlled substance endangering a child

House Government Efficiency and Technology:

Time/Location: 3:30 p.m. Capitol Room 526-S

*No meetings scheduled at this time.

House Health and Human Services:

Time/Location: 1:30 p.m. Capitol Room 526-S

Tuesday, February 12

Hearings on:

• HB 2695 - Athletic Trainer Licensure
• HB 2650 - Controlled Substances; Salvia Divinorm

House Insurance and Financial Institutions:

Time/Location: 3:30 p.m. Capitol Room 527-S

Monday, February 11

Hearing on:

• HB 2696 - Insurance reimbursement for certain services

Tuesday, February 12

Hearings on:

• HB 2677 - Qualifications of credit union administrators
• HB 2678 - Limitations on credit union personnel

Wednesday, February 13

Hearing on:

• HB 2699 - Providing time period for insurance company to recoup certain erroneously made payments

Action on:

• HB 2689 - Insurance; risk-based capital requirements

Thursday, February 14

Hearing on:

• HB 2743 - Insurance; maintaining confidentiality of certain records

House Judiciary:

Time/Location: 3:30 p.m. Capitol Room 313-S

Monday, February 11

Hearings on:

• HB 2707 - Theft, intent to deprive, leased or rented motor vehicles
• HB 2768 - Dead human bodies, removal and delivery

Tuesday, February 12

Hearings on:

• HB 2731 - Sentencing departure pre-sentence report, mitigating factors, departure limitations on crime of extreme sexual violence
• HB 2732 - Sentencing, mitigating factors, departure limitations on crime of extreme sexual violence

Wednesday, February 13

Hearings on:

• HB 2726 - Polygraph examinations prohibited for certain alleged victims
• HB 2727 - Sexual assault, evidence

House Taxation:

Time/Location: 9:00 a.m. Capitol Room 519-S

Tuesday, February 12

Hearing on:

• HB 2762 - Corporate income taxation changes relating to apportionment of net income, business income and surtax on corporations

Wednesday, February 13

Hearing on:

• HB 2751 - Authorizing the option to expense investment expenditures as an alternative to depreciation in calculating income tax liability

Thursday, February 14

Hearings on:

• HB 2500 - Property tax exemption for certain housing for certain low income mothers
• HB 2694 - Income tax credit for alternative-fueled motor vehicle or alternative fuel fueling station

Friday, February 15

Hearing on:

• HB 2729 - Deduction for medical care expenses for state income tax purposes

House Transportation:

Time/Location: 1:30 p.m. Capitol Room 519-S

Tuesday, February 12

Hearings on:

• HB 2691 - Gold star family license plates
• HB 2708 - Designating K-53 highway as the patriot guard highway

Wednesday, February 13

Hearings on:

• HB 2709 -Regulation of micro utility trucks
• HB 2725 -The vehicle protection product act

Thursday, February 14

Hearings on:

• HB 2704 - "In God We Trust" distinctive license plate
• HB 2720 - Designating part of K-10 highway as Dr. Martin Luther King, Jr. Memorial Hwy.