IN THIS ISSUE:

• This week at the capitol
• Smoking ban hearings begin
• Bush's economic stimulus plan has mixed impact for Kansas
• Bill will protect custody rights of military servicemen & women
• Energy bill update
• Kansas state employees request better wages and benefits
• Border tax war ceases: Missouri repeals law
• Diplomatic visit helps strengthen Kansas' economic ties with China
• Add it to your medicine cabinet: free resources for prevention
• In committees next week

STATEHOUSE NEWS

The Kansas House must have its work done by February 26.  That is just over a week away and for the fifth week; leadership in the House and Senate has kept the legislative discussion focused on energy and the Holcomb debate.  Strong feelings exist on both sides of the Holcomb issue, but supporters and opponents alike are beginning to feel rushed and concerned about all other issues. 

In addition to the energy debate, there is comprehensive health care reform that languishes.  Tax relief, transportation needs, campaign finance reform and the immigration issues go without debate and we have only days left to address these concerns. 

Controversial problems like the energy debate are of considerable magnitude and are not solved in a few weeks.  I am encouraged by efforts to compromise, but I believe we are moving too fast on Holcomb and too slow on other urgent matters.  Kansans expect a better, more cooperative strategy from their legislators. 

I believe that the Kansas Legislature has the ability to serve as an engine of innovation, that we can meet these challenges in addition to addressing the energy debate if our leadership will open the conversation.  We are not keeping pace with the demand.  We have recorded 16 final action votes in five weeks.  In 2007, that number was more than doubled, at 39.  Our biggest challenges are still ahead and time is running out.

SMOKING BAN HEARINGS BEGIN
Last year, the Health Policy Authority made recommendations to the legislature to improve the health of Kansans and lay a framework for future reforms.  As part of those recommendations, KHPA endorsed a statewide smoking ban.  The Senate Judiciary Committee held hearings this week regarding Senate Bill 493, which establishes the Kansas Uniform Smoking Prohibition Act. 

Opponents believe this bill will hurt private business and free market in the state.  They also point out that the OSHA has not deemed second-hand smoke dangerous for the workplace and that cross-boarder sales will increase.  Furthermore, opponents argue that smoking bans restrict rights and freedoms of people choosing to smoke.

Supporters argue that a smoking ban will protect innocent, nonsmoking Kansans from harmful second-hand smoke.  Tobacco related diseases cost Kansas nearly $200 million annually in Medicaid costs.  This provides an excellent incentive to help limit individuals' exposure to second-hand smoke.  To address concerns regarding local control, the bill would allow counties to hold elections to ban smoking in public places.

The bill is still under review.  Representatives from multiple organizations suggested amending Senate Bill 493 to exempt casinos, tobacco-specialty stores (such as cigar shops) and other types of private organizations from the law.

BUSH'S ECONOMIC STIMULUS PLAN HAS MIXED IMPACT FOR KANSAS
In the wake of an approaching recession, Congress passed legislation this week that will provide tax relief for numerous families, but could hinder the Kansas budget for the 2009 fiscal year by as much as $87 million.  The legislation is an attempt to offset a recession.

The federal package, referred to as an economic stimulus plan, will provide financial relief to families across the country, at approximately $900 for 1.2 million Kansas taxpayers. 

As part of the legislation, companies will be able to cut federal income tax liability by approximately $250,000 by expanding a business (rather than the $125,000 currently allowed).  In effect, Kansas will lose approximately $3 million in federal income tax liability.  Additionally, companies will be allowed to depreciate 50 percent of the cost of new equipment and machinery in their first year rather than over several years, reducing even more revenues for the state. 

One reaction available to lawmakers is to eliminate the linkage between the Kansas' tax code and the federal income tax system as it relates to business, known as "decoupling."  Proponents of decoupling suggest that this method provides solid opportunity for safeguarding the state's budget.  For one year only, Kansas would disassociate with the federal tax code, allowing the state to preempt any shortfall.

The budget situation our state is presently facing is serious and has a meaningful impact upon people across this state.    Our state's revenue situation is a serious problem that will require legislators from both sides of the isle to work together to find a responsible solution. Further depleting state revenues will seriously jeopardize Kansas' ability to move forward on health care reform.  We must take action to avoid a repeat of 2002, when the budget was stretched too thin, forcing mid-year cuts to education, health care and services for seniors and disabled Kansans.

BILL PROTECTS CUSTODY RIGHTS OF MILITARY SERVICEMEN AND WOMEN

House members approved a measure this week that protects custody rights of military service men and women who must mobilize to serve a tour of duty.  Their commitment to our country's freedom is both noble and courageous; the last thing these heroes should worry about as they risk their lives for our safety is whether their child will be legally allowed to return to them upon their return home.    

When divorced service men and women with children deploy for a tour of duty, previously arranged child custody and visitation agreements dissolve to allow for the child's placement while the parent serves overseas.  Unfortunately, usually in cases of unfriendly divorce, this can result in a permanent custody change for the mobilized parent, even upon his or her return from service.  It happens on a frequent basis because current law does not specify military deployment/return as "significant change in circumstances."  If the temporary custody provider takes advantage of the provision, the case will go without review by a court of law and the military parent is left with decreased custody rights.

If passed by the Senate, House Bill 2621 will force any custody changes resulting from a soldier's deployment to dissolve within ten days of his or her return.  The bill also allows the court to grant visitation to the service member's family throughout the tour.

The rules apply to soldiers deployed overseas, to temporary duty stations and those assigned anywhere family members cannot accompany them. 

ENERGY BILL UPDATE

Energy bills received final amendments in House and Senate committees this week, before being approved to advance to the floor of their respective chamber for full debate.  The Senate's energy bill passed on Thursday with a 33-7 vote; the House will debate its energy bill early next week. 

I maintain my position that the energy debate deserves serious discussion, but it must also be balanced with other issues that remain important to you and your family. 

Senators approved energy legislation this week as part of a substitute for House Bill 2066.  They did this to require an up-or-down vote from the House of Representatives, prohibiting the larger body from making amendments to the bill.  Supporters believe this is the best way to push the legislation through quickly in order to prepare for a veto from the Governor.

Those in favor of the revised bill argue the carbon dioxide regulations would have prevented the bill's passage because anti-tax groups oppose enacting rules on carbon tax.  Critics, including the governor, argue the rules in the original bill are too lax and this only moves the legislation farther in the wrong direction.

Kansans deserve a responsible, well-planned compromise to this important debate.  The final product must protect our environment and the health of our children, promote the development of renewable energy and maintain our state's base-load energy needs, without wasting an entire legislative session.

Included below is an overview of action taken on the energy debate in the Capitol this week.

AT A GLANCE: WEEK FIVE OF THE ENERGY DEBATE

Friday, 2/8:

After hearing several days of testimony last week- both in favor of and in opposition to House Bill 2711- House Energy and Utilities Chair adjourned the committee meeting last Friday with no action or discussion on the bill.

Monday, 2/11:

Senate Energy and Utilities Committee passed its version of the energy bill, which ended up as Senate Substitute for House Bill 2066.  The bill removes all provisions to regulate, limit, and penalize carbon dioxide emissions in Kansas that had been in the original energy bill.  The amended bill does retain the barring of state administration's authority to regulate carbon dioxide emissions and solar net metering.

Tuesday, 2/12:

After hours of debate, House Energy and Utilities Committee passed an amended version of House Bill 2711.  The final product is expected to go to the House floor for debate early next week. 

• Major components removed:
• o Green mitigation/proposed carbon tax of $3 per ton
• o Limits on carbon dioxide emissions
• o Energy efficiency standards for new public school buildings
• Major components retained:
• o State regulation of carbon dioxide barred unless mandated by federal government
• o Adoption of a state "energy portfolio," requiring Kansas utility companies to generate 10 percent increase of their energy from renewable sources by 2010 and 25 percent by 2025. Public utility companies, under the House proposal, would be eligible for a 1 percent return on any investment made to comply with that standard
• o Solar net metering allowed, giving Kansas consumers an opportunity to receive retail credit for the solar electricity they generate
• o Energy efficiency standards for new state buildings

Wednesday, 2/13: After three hours and 20 minutes of debate on the floor, the Senate tentatively approved Substitute for House Bill 2066.  Attempts to reinstate "green" mitigation that had been removed were vehemently opposed.

Thursday, 2/14: The Senate officially voted on Substitute for House Bill 2066, approving the bill at a vote of 33-7.  While developing the legislation in committee, the Senate Energy and Utilities Committee included the bill's language into a measure that had already passed the House of Representatives.  This, in effect, will send the bill directly to the House floor for an up or down vote, eliminating any possibility for amendment by representatives.  Senators took this action to expedite the legislative process.

KANSAS STATE EMPLOYEES REQUEST BETTER WAGES AND BENEFITS
Hundreds of current and retired public employees gathered at the State Capitol this week to meet with legislators regarding the need to fully support the proposed state employee pay plan, support a two and a half percent cost of living adjustment and maintain longevity.

Established in 2007, the Kansas Organization of State Employees is the largest union of state employees in Kansas.  Based on the United States Census Bureau, Kansas state employee pay ranks 40^th in the nation.  The Hay Group has shown that one in every three state employees is more than 15 percent below market, noticeably lagging behind both the median and average of the market.

Supporters of the Governor's state employee pay plan argue that state employees did not have salary step increases for almost six years.  For those employees at market, anything lower than a 2.5 percent cost of living adjustment will put them back below market.  For those employees below market already, the situation worsens.  Additionally, supporters argue that longevity rewards experienced employees that remain in public service and ultimately lowers costs.  Continuing to pay below market value makes it difficult for the state to retain experienced, talented employees.

For retired employees, there has been no cost of living adjustment since 1997.  Prior to 1997, the state legislature provided 17 cost of living adjustments.  The Governor requested a one percent cost of living adjustment for individuals in KPERS, which would be funded by new gaming money. 

MISSOURI REPEALS INCOME TAX LAW

The border tax war between Kansas and Missouri has come to a ceasefire.  Last week, the Missouri House of Representatives approved a bill to repeal the 2007 law that created an income tax increase on Kansans who work across the Missouri state line. 

The 2007 law would have prevented out-of-state residents who work in Missouri from deducting property taxes paid to another state.  As a result, income taxes for Kansans working in Missouri would have increased, on average, by approximately $200.  The Missouri law would have also lowered Kansas' tax receipts due to credit available to Kansans for taxes paid in Missouri.  With over 90,000 Kansans working in Missouri, this law would have dismantled a long standing, reciprocal agreement between the two states.  It is estimated that Kansas' state general fund revenue would have decreased by $5 million per year. 

The Kansas House already approved a bill this session to retain the tax break for residents of other states working in Kansas, but only if the in-home state of those working in Kansas took reciprocal action.  The Kansas bill, which had previously been awaiting approval in the Senate, will not be pursued unless the Missouri Senate refuses to approve its repeal of the tax law.  

DIPLOMATIC VISIT HELPS STRENGTHEN KANSAS' ECONOMIC TIES WITH CHINA

This week, Governor Kathleen Sebelius and Secretary of Commerce David Kerr hosted the Chinese Ambassador to the United States. His Excellency Zhou Wenzhong discussed opportunities to develop relations between the two countries. 

In October, the Governor and Secretary Kerr hosted a 50-member Chinese Ministry of Commerce delegation in Topeka to identify potential business opportunities within each respective region.  The Chinese delegation signed a Memorandum of Understanding for the exchange of information and the sale of Kansas products.  This is all part of an ongoing effort to open lines of communication between both areas.  Fully realizing opportunities to help each other thrive economically will help strengthen overall trade relations with China while expanding our opportunities for growth here at home by increasing demand.

China is currently Kansas' fifth-largest export market, with over $400 million in export sales recorded in 2007. Future Chinese interests in Kansas products include agriculture, aviation technology and bioscience. The Trade Development Division within the Kansas Department of Commerce assists Kansas companies in seeking export markets in China and will facilitate continued trade relations. 

ADD IT TO YOUR MEDICINE CABINET: RESOURCES FOR COST REDUCTION

The following programs offer a variety of opportunities to receive financial assistance for medical and health care expenses.  Although healthy choices, education and personal responsibility for our health reduce our risk of disease, sometimes we find our health in peril nonetheless.  As lawmakers begin the task of reforming Kansas' health care system, other private programs exist to help ease the burden of current health care costs.  These programs are not designed to cover all our medical expenses.  However, when combined, multiple cost reductions make a big difference in a family budget, similar to coupons in a grocery store. 

• Ask Me Three: http://www.askme3.org/

Sponsored by the Partnership for Clear Health Communication, Ask Me Three is a program focused on health literacy.  They provide a simple set of questions that you should ask your doctor, nurse or pharmacist at every visit. The questions are; what is my main problem?  What do I need to do?  Why is it important for me to do this?

Ask the three questions and be sure you understand the answers your doctor, nurse or pharmacist gives you. If you do not understand the answers, ask him or her to explain the information again. Do not be shy- you are a consumer paying for costly services and products and deserve an exceptional level of customer service.  In addition, your doctor, nurse and pharmacist want to help you understand your medical conditions and treatment instructions. 

Research has shown that improving health literacy may also improve a person's health.  The better you understand your medical condition and treatment, the more likely you are to correctly follow the doctor's instructions, recover sooner, and experience fewer complications. Not only does this lower your health care costs, more importantly, it helps you and your family lead healthier lives.

• Co-Pay Assistance: http://www.copays.org/ Phone: 866.512.3861
  Sponsored by the Patient Advocate Foundation, the Co-Pay Relief Program provides direct financial support to insured patients- including Medicare Part D beneficiaries- who financially and medically qualify to access pharmaceutical co-payment assistance. The program also has a 12-month look back period on any outstanding bills that you have incurred as part of your pharmaceutical treatment for your diagnosis. Co-Pay Relief offers personal service to all patients using call counselors, personally guiding patients through the enrollment process.

Please note the program only offers assistance for those who receive treatment for the following: Autoimmune Disorders, Inflammatory Bowel Disease, Crohn's Disease, Ulcerative Colitis, Arthritic Psoriasis, Rheumatoid Arthritis, Breast Cancer, Colon Cancer, Diabetes, Head and Neck, Kidney Cancer, Lung Cancer, Lymphoma, Macular Degeneration, Malignant Brain Tumors, Multiple Myeloma, Pancreatic Cancer, Prostate Cancer, Sarcoma, or Secondary issues as a result of chemotherapy treatment.

• Phizer Discount Programs: http://www.pfizerhelpfulanswers.com/ Phone: 877.776.3700

Funded by Pfizer- the world's largest research-based biomedical and pharmaceutical company- this website offers a variety of helpful patient assistance programs.  The program services range from discounted or free medicines for people without prescription drug coverage to reimbursement and appeals assistance to insured patients.

Pfizer also participates in the Partnership for Prescription Assistance, a service that offers a single point of access to more than 475 patient assistance programs, including the Pfizer Helpful Answers^® program.  To find a different patient assistance program using the Partnership for Prescription Assistance, call 1-888-477-2669, or visit http://www.pfizerhelpfulanswers.com/pages/Misc/Outgoing.aspx?url=http://www.PPARx.org.

• Lotsa Helping Hands: http://www.lotsahelpinghands.com/

Lotsa Helping Hands is a simple, immediate way for friends, family, colleagues, and neighbors to assist loved ones undergoing medical difficulties. It is an easy-to-use, private group calendar, specifically designed for organizing helpers, where everyone can pitch in with meal delivery, rides, and other tasks necessary for life to run smoothly during times of medical crisis, end-of-life caring, or family/caregiver exhaustion. It is also a place to keep these ‘circles of community' informed with status updates, photo galleries, message boards, and more.  This is a cost-effective way to organize your resources and keep loves ones up-to-date.

• Together Rx Access: http://www.togetherrxaccess.com/ Phone: 800.444.4106

Thousands of eligible, hardworking people with no prescription drug coverage are now saving on the medicines they need with the Together Rx Access^TM Card.  Most cardholders save approximately 25 to 40 percent on brand-name prescription products.  The Together Rx Access^TM Card was created as a public service by a group of some of the world's largest pharmaceutical companies, in order to provide savings on prescriptions to eligible residents of the US and Puerto Rico who have no prescription drug coverage. 

IN COMMITTEES NEXT WEEK

Upcoming hearings of high interest:

• House Economic Development and Tourism: Hearing on HB 2712, Rural housing/ development grant program
• House Education: Hearing on HB 2842, Alternative-route licensure for teachers; Hearings on HB 2874, Nontraditional teacher licensure program
• House Energy and Utilities: Hearing on HB 2765, Clean coal technology, requests for proposal for future energy requirements of Kansas retail electric suppliers
• House Federal and State Affairs: Hearings on HCR 5031, Governor appoints supreme court justices, senate confirms/nominating commission membership amended/commission nominates three employees/governor appoints any qualified person
• House Insurance and Financial Institutions: Hearings on HB 2822, Small employer health insurance/exemption from mandates, section 125 plan/tax credit;
• House Taxation: Hearings on HB 2750, An act concerning property tax/exempting certain property leased to companies for research and development purposes; Hearings on HB 2762 - Corporate income taxation changes relating to apportionment of net income, business income and surtax on corporations; Hearings on HB 2640, Income tax credit for capital investments in businesses located in a city substantially damaged by disaster

A more detailed look at next week's calendar of committee hearings:

House Agriculture and Natural Resources:

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

Monday, February 18

Hearings on:

• HB 2626 - Farm and ranch land protection grant program; conservation easements
• HB 2660 - Payment of petroleum products inspection fees

Tuesday, February 19

Hearing on:

• HB 2625 - Intensive groundwater use control areas, mandatory review and advisory committees

Appropriations

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

• No hearings on proposed legislation scheduled at this time.

House Commerce & Labor

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

Tuesday, February 19

Hearings on:

• HB 2746: Amendments to real estate brokers' and salespersons' license act
• HB 2772 - Real estate appraisers, full licensure

Wednesday, February 20

Hearing on:

• HB 2827 - Rules and regulations; consideration of effect on small employers

Thursday, February 21

Hearings on:

• HB 2847 - Cities and municipalities, examinations for plumbers, electricians and heating, ventilation and air conditioning contractors and journeymen
• HB 2826 - Homeowners, apartment owners associations; elections other procedures
• HB 2837 - Homeowners organization; mediation of disputes; attorney general duties
• HB 2445 - Homeowners associations; voting and other procedural requirements

Friday, February 22

Final action on bills previously heard:

• HB 2826 - Homeowners, apartment owners associations; elections other procedures
• HB 2837 - Homeowners organization; mediation of disputes; attorney general duties
• HB 2445 - Homeowners associations; voting and other procedural requirements

House Economic Development and Tourism:

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

Monday, February 18

Hearing on:

HB 2712 - Rural housing; development grant program

House Education:

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

Wednesday, February 20

Hearings on:

• HB 2842 - Alternative-route licensure for teachers.
• HB 2874 - Nontraditional teacher licensure program

Thursday, February 21

Hearing on:

• HB 2870 - School districts; authorizing pay differential for certain teachers

House Elections and Governmental Organization:

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

Monday, February 18

Hearing on:

HB 2802 - Kansas performance measurement commission

Tuesday, February 19

Hearing on:

• HB 2803 - Cities; fee authorized for credit card use

Wednesday, February 20

Hearing on:

• HB 2791 - Planning and zoning; planning commission; inclusion of military installation representative

Thursday, February 21

Hearing on:

• HB 2308 - Campaign finance; expenditure limitations; membership dues and donations

House Energy and Utilities:

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

Monday, February 18

Hearings on:

• HB 2698-Consumer telephone calls; time limitations
• HB 2892-Rules and regulations for underground crude oil storage

Tuesday, February 19

Hearing on:

• HB 2806-Statewide uniform electricity rates

Wednesday, February 20

Hearing on:

• HB 2765-Clean coal technology, requests for proposal for future energy requirements of Kansas retail electric suppliers

Thursday, February 21

Hearings on:

• HB 2807-Defining participating member of a rural water district; requirements on water districts
• HB 2808-Use of eminent domain by public wholesale water supply districts

House Federal & State Affairs:

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

Monday, February 18

Hearing on:

• HB2775 - Governmental ethics; reporting of lobbying expenses by local units of government

Tuesday, February 19

Hearings on:

• HB 2615 - Abortion; late term abortion records; reporting
• HB2736 - Amendments to late-term abortion laws; reporting requirements; waiver of parental notice; civil remedies for violations of law

Wednesday, February 20

Continuation of hearings on:

• HB 2615 - Abortion; late term abortion records; reporting
• HB 2736 - Amendments to late-term abortion laws; reporting requirements; waiver of parental notice; civil remedies for violations of law

Thursday, February 21

Hearing on:

• HCR 5031 - Governor appoints supreme court justices, senate confirms; nominating commission membership amended; commission nominates three employees; governor appoints any qualified person

House Government Efficiency and Technology:

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

• No hearings on proposed legislation scheduled at this time.

House Health and Human Services:

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

Tuesday, February 12

Continued work on:

• HB2570 - Persons authorized to make adoption assessments

House Insurance and Financial Institutions:

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

Monday, February 18

Hearing and possible action on:

• HB 2769 - Insurance coverage for special dietary formulas

Tuesday, February 29

Hearing and possible action on:

• HB 2686 - Requiring market conduct studies for certain insurance companies
• HB 2865 - Title insurance; unearned premium reserves

Wednesday, February 20

Hearing and possible action on:

• HB 2822 - Small employer health insurance; exemption from mandates, section 125 plan; tax credit

Thursday, February 21

• HB 2783 - Voluntary non contractual mutual aid arrangements
  
  

House Judiciary:

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

Monday, February 18

Hearing and possible action on:

• HB 2813 - Retired judges, retention election
• HB 2825 - Closing court proceedings and sealing court records
• HB 2816 - Driver's license suspension; possession of illegal drugs or weapons in school

Tuesday, February 19

Hearing and possible action on:

• HB 2850 -Stalking, protection orders

Wednesday, February 20

Hearing and possible action on:

• HB 2780 - Criminal procedure; new crime committed on probation or community correction, services of warrant for violation of original conviction
• HB 2845 - Increasing penalties for theft and aiding escape when such crimes concern employees or volunteers of the department of corrections
• HB 2873 - Revoking the authorization of the issuance of bonds for capital improvement projects to expand prison capacity

House Taxation:

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

Tuesday, February 19

Hearing on:

• HB 2520 - Liability for taxes and other expenses related to conversion of lands into condominiums
• HB 2750 - An act concerning property tax; exempting certain property leased to companies for research and development purposes
• HB 2762 - Corporate income taxation changes relating to apportionment of net income, business income and surtax on corporations

Wednesday, February 20

Hearing on:

• HB 2640 - Income tax credit for capital investments in businesses located in a city substantially damaged by disaster

Thursday, February 21

Hearing on:

• HB 2018 - Increasing membership on state board of tax appeals to five Members

House Transportation:

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

Tuesday, February 19

Hearing and possible action on:

• HB 2770 - An act giving secretary of revenue rule and regulation authority to set fees for photos, not to exceed $20
• HB 2824 - Railroad leasing act, track leases

Wednesday, February 20

Hearing and possible action on:

• HB 2725 -The vehicle protection product act
• HB 2756 - Traffic regulations, fines in road construction zones

Thursday, February 21

Hearing on:

• HB 2358 - Certificates of title, notice of lien