IN THIS ISSUE:

• Remaining Legislative Schedule
• Energy Bill Update
• House Effort On Health Care Reform Gets Late Start
• House Approves New State Employee Pay Plan
• House Bill Addresses Corporate Tax Issues
• House Bill Would Offer Tax Breaks For Seniors
• Campaign Finance Bills Pass House
• Next Week In Committees

Remaining Legislative Schedule

We enjoyed sunnier days and warmer weather in Topeka this week, at least outside the dome.  Spring officially arrives next Thursday, which is a welcome change after months of snow and flu.  The new season also reminds lawmakers that the clock is ticking.  The 2008 legislative session is almost over, with too many priorities left untouched including health care, school finance, and affordable housing.

The House spent the last two weeks working through legislation from the Senate.  Concurrently, the Senate has been reviewing House bills.  Looking ahead, we will finish our "swap" by April 2, also known as "Drop Dead Day."  Once all bills receive a vote from both chambers, joint House and Senate conference committees will form to merge different versions of similar legislation.  In order for a bill to reach the Governor's desk, both chambers must approve the bill's conference committee report.  Once all conference committee reports are approved or rejected the Legislature will conclude its regular session.  This is "First Adjournment" and usually occurs in early April, following Drop Dead Day.

After First Adjournment, lawmakers will reconvene in early May for "Veto Session."  During this time the Legislature will take action on unfinished business, usually including the most complex issues of the session.  Particularly, the Legislature will finalize the Omnibus Bill, which includes a variety of appropriations for Governor's initiatives, agency programs and legislation passed earlier in the session.  The length of Veto Session varies each year.  It does not end until the Omnibus Bill gains approval from both chambers, which can last anywhere from a few days to a few weeks.  After Veto Session, the Legislature will reconvene once more for a ceremonial adjournment of the session, called "Sine Die."  Sine Die usually occurs near the end of the May, and marks the final meeting of the Legislature until after next year.

Energy Bill Update

The highly anticipated energy bill- Senate Bill 327- officially reached Governor Sebelius' desk on Wednesday, leaving her 10 business days to act on the legislation.  The Governor made several criticisms of the bill and has publicly promised a veto.  Sebelius must respond by March 22.  The Legislature will more than likely attempt an override if she does veto the bill, which could easily pass in the Senate where it received a comfortable margin of support.  On the House side, however, the vote tally left supporters nine votes short of the 84 needed to overturn a veto.  The Speaker of the House has stated he will negotiate with target voters to sway the margin; meanwhile the Governor has been meeting with legislators to discourage support of the bill.  If an attempt to override fails and the veto stands, the proponents are expected to resurrect another bill and start the process all over.

House Effort On Health Care Reform Gets Late Start
Because House majority leadership devoted two-thirds of the session almost completely to energy debate, other critical issues fell to the wayside. With the energy bill now on the Governor's desk, those other issues are finally gaining momentum.  A seven-member House Health and Human Services subcommittee was established last week to craft a comprehensive health care reform bill.  The committee hopes to present its proposal to the full House before the first major budget bill is debated next week. 

In 2005, the Legislature created the Kansas Health Policy Authority (KHPA) specifically to coordinate a statewide health policy agenda and make recommendations for reform.  KHPA spent all of last year holding public hearings on this issue across Kansas.  After extensive consultation with all the stakeholders, the agency developed a comprehensive plan consisting of 21 specific recommendations to most efficiently reduce cost and increase coverage throughout the state.  Though I believe not all of KHPA's recommendations could be successfully implemented in 2008, we should be able to agree on most of their proposals.

Unfortunately, those recommendations are being ignored by majority leadership in the House and Senate.  I am deeply troubled that KHPA's reasonable proposals are being discarded.  Even more troubling, House committee leaders seem committed to throwing together a bill in a matter of days with little public input.  Health care reform deserves much more time, testimony, and consideration than it can possibly receive at this late date in the session.

Access and affordability of health care is one of the biggest challenges faced by Kansas families and business owners.  As lawmakers, we must do all we can to address these problems.  This discussion should have been initiated two months ago.  The people of Kansas deserve better than a rushed, reckless and ineffective approach to health care reform.

House Approves New State Employee Pay Plan

This week the House approved House Bill 2916, which will implement five new classified state employee pay plans, a new statewide employee performance management system, a 2.5 percent base salary adjustment for all state employees and regular market salary surveys.

Kansas classified state employees work under a system based on longevity and position.  The new plan will gradually transition to a "compensation philosophy."  Similar to the private sector, this philosophy offers competitive compensation based on relevant labor markets and employee performance.  Supporters believe this will help raise expectations for both managers and employees, attracting and retaining better workers. 

The five basic pay plans for classified employees would include: Basic Vocational Pay, General Classified Pay, Management Pay, Professional Individual Contributor Pay, and Protective Services Pay. House Bill 2916 phases out longevity bonuses for all state employees hired after June 2008.  Instead, those funds will shift into base salary increases, helping to decrease the market gap.  

Kansas employs thousands of classified workers, none of whom currently work at market value.  The main goal of the proposal is to bring state employees' salary into competitive range of those paid to workers with similar experience and education in the private sector.  Although I oppose the longevity bonus phase out, this proposal will put Kansas in a stronger position to attract and retain talented, hardworking state employees.  A weighted, multi-year plan must be implemented to make the appropriate cost of living adjustments and bring all classified employees to market value.

House Bill Would Address Corporate Taxation

The House Committee on Taxation introduced a bill this week that would make significant changes in corporation income tax rates and income apportionment provisions.  House Bill 2762 would expand the ability of certain businesses with a unitary group of corporations to utilize two different kinds of tax credits.  The bill would also enact two new sales tax exemptions.

House Bill 2762 would allow full apportionment of business income for all tax years beginning in 2009. In addition, this bill would allow a taxpayer to include only the net gain from sales of business assets when calculating the sales factor.  Furthermore, it would reduce the surtax rate for corporations with Kansas taxable income in excess of $50,000 from 3.35 percent to 2.85 percent. This rate reduction would go into effect starting in tax year 2009.

Additionally, the law would clarify the definition of "gross receipts" to prevent companies from utilizing income churning, which is a practice that inflates the denominator of the sales factor of the apportionment formula by including certain extraordinary items.

Finally, the top corporation income tax rate, effective for taxable incomes above $50,000, would be reduced from 7.35 percent to 6.85 percent. All of these changes would be effective beginning the 2008 tax year.

House Bill Would Offer Tax Breaks For Seniors

This week the House Taxation Committee held a hearing on House Bill 2928, which would provide a tax benefit to approximately 900 Kansas senior citizens per year by allowing eligible seniors to defer paying property taxes.  The bill is designed to assist seniors on fixed incomes who face escalating property taxes.  Proponents support the legislation because retired seniors have little opportunity to seek additional sources of income when their expenses unexpectedly rise.  Lawmakers hold a responsibility to protect these Kansans from losing their homes or falling into deep financial turmoil.

House Bill 2928 will allow homeowners 65 or older with an annual household income of less than $60,000 to apply for a tax deferment from the Kansas Department of Revenue. In order to qualify, the applicant must both reside in the house and not receive any supplemental income from the property.  The Department of Revenue would recover its taxes when the applicant sold the home or passed away. 

According to the Kansas Department of Revenue, approximately 900 Kansas seniors would qualify annually for the tax break proposed under House Bill 2928.  Average property taxes total $1,200.  An individual tax deferment and other liens could not accumulate to more than 50 percent of the home's value.

The House Taxation Committee has taken no action on the bill at this time. 

Campaign Finance Bills Pass House
Last week the House approved four bills relating to campaign finance, House Bills 2308, 2408, 2697 and 2730. Elections and campaign finance reform should be aimed at making Kansas elections transparent to voters.  I support legislation that requires maximum disclosure and helps inform voters about who spends money to influence Kansas elections.

House Bill 2308, which passed 122-0, will clarify the circumstances under which a political candidate would be allowed to use political funds for membership dues or donations to community service or civic organizations.  Currently, campaign contributions can be used for those purposes, but this bill clarifies that only if the candidate receives no goods or services as a result of the payment. 

House Bill 2408, approved 121-1, would amend the Campaign Finance Act to require that a party committee or a political action committee provide more detailed information on expenditures than currently required, when those expenditures are made expressly to advocate the election or defeat of a clearly identified candidate.  The law was requested by the Governmental Ethics Commission in an effort to better provide the public with a thorough understanding of the money spent to support or oppose Kansas candidates.

House Bill 2697, approved 113-9, changes reporting requirements for individuals making campaign contributions of more than $150.  Under this bill, contributors must indicate the type of industry in which they work, in addition to the current requirement of reporting names and occupations.  The Governmental Ethics Commission supported this bill, noting that vague occupation listings such as businessman, consultant, or contractor make it difficult to assess information about a contributor.  Current law offers no specific reporting standard for self-employed contributors.  Specifying an industry will help determine what issues contributors may or may not support and how they may be trying to influence the political process. 

Senate Bill 196, which passed 116-6, would require that the treasurer for a candidate for a state or local office file a campaign contribution report listing information for each person who has made one or more contributions totaling $300 or more during the period that begins 11 days before a primary or general election and ending just before the Wednesday preceding the date of the election. The report must be made on or before the close of business on the Thursday preceding the election.

Next Week In Committees

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

            Thursday, March 20

• Hearing on SB 123 - Establishment of Upper Arkansas River Conservation Enhancement Program

Appropriations

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

            Monday, March 17

• Hearing on SB 534 - Crimes against the state

Tuesday, March 18

• Hearing on HB 2891 - Limitation on outstanding principal of state general fund bonded debt

House Commerce & Labor

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

• No hearings on proposed legislation scheduled at this time.

House Economic Development and Tourism:

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

            Tuesday, March 18

• Hearing on SB 342 - Enacting the Kansas Investment Credit Act and the Kansas Jobs Credit Act (Commerce & Revenue Departments - Evaluation of Incentive Report)
• Hearing on HB 2843 - Kansas regulated sport act; civil penalties, violations, fees and rules and regulations

House Education:

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

• No hearings on proposed legislation scheduled at this time.

House Elections and Governmental Organization:

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

            Monday, March 17

• Hearing on SB 460-Townships; consolidation; transfer of territory; county service taxing districts

Tuesday, March 18

• Hearing on SB 562 - Mobile polling places for certain facilities
• Hearing on SB 519 - Mail ballot elections; mailing ballots to inactive voters

Wednesday, March 19

• Hearing on SB 454 - Municipalities; consolidation and reorganization; political and taxing subdivision

Thursday, March 20

• Hearing on HB 2917 - Cities; annexation of lands; consent procedure
• Hearing on SB 438 - Job security for firefighters

House Energy and Utilities:

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

            Monday, March 17

• Hearing on SB 586 - Incentives to encourage development of nuclear power by utilities and authorizing recovery of certain costs

Wednesday, March 19

• Hearing on SB 469 -Telecommunications, requirements on local exchange carriers as carriers of last resort
• Hearing on SB 570 - Kansas universal service fund, exemptions for certain local exchange carriers

House Federal & State Affairs:

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

Monday, March 17

• Hearing on HCR 5033 - Concurrent Resolution urging Congress to withdraw from Security and Prosperity Partnership and NAFTA

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

            Monday, March 17

• Hearing on SB 512 - Emergency medical services, attendant's certificate requirements
• Hearing on SB 107 - Fingerprinting and criminal history background checks for certain licensees of the board of nursing
• Hearing on HB 2914 - Enacting the pharmaceutical manufacturing company disclosure act

Tuesday, March 18

• Hearing on SB 529 - Educational awareness regarding meningococcal meningitis vaccine
• Hearing on SB 548 - School-based influenza vaccination pilot program
• Hearing on Sub SB 596 - Board of healing arts; cosmetic or aesthetic purpose included in the practice

Wednesday, March 19

• Sub SB 491 - Prescription monitoring program act
• Sub SB 549 - Board of pharmacy; continuous quality improvement programs and nonresident pharmacy

House Insurance and Financial Institutions:

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

Tuesday, March 18

• Hearing on SB 563 - Utilization review organizations; requirement for notification of admission

House Judiciary:

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

            Monday, March 17

• Hearing on SB 476 - Arrest for violating condition of probation or conditions of release
• Hearing on SB 477 - Offender registration, electronic solicitation
• Hearing on SB 479 - Post release supervision for certain offenders convicted under K.S.A. 21-4628
• Hearing on SB 481 - Controlled substance, schedule I, salvia and gypsum weed

            Wednesday, March 19

• Hearing on SB 430 - Aggravated criminal threat, penalty
• Hearing on SB 536 - Prohibiting adoption and enforcing residency restrictions on registered offenders
• Hearing on SB 545 - Health insurance coverage information for children in divorce action
• Hearing on SB 582 - Driving under the influence, ignition interlock and impoundment of vehicles

            Wednesday, March 20

• Hearing on SB 615 - Motor vehicles, failure to maintain financial security
• Hearing on SB 588 - Traffic in contraband in a correctional facility
• Hearing on SB 48 - Municipal court, accused person's competency to stand trial, mental health evaluation
• Hearing on SB 414 - Electors of county or counties may establish an office of the district attorney, salary based on felony caseload

House Taxation:

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

            Tuesday, March 18

• Hearing on HB 2809 - Income tax credit for certain physicians and dentists who contribute professional time to treat medically indigent persons
• Hearing on HB 2868 - Income tax credit for expenditures to make facilities accessible to individuals with a disability
• Hearing on HB 2931 - Income tax credit for certain adoption expenses

House Transportation:

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

Tuesday, March 18

• Hearing on SB 521 - Vehicle registrations; dishonor of payment

Thursday, March 20

• Hearing on HB 2786 - Antique motor vehicles, model year city issued license plates

House Veterans, Military, and Homeland Security:

Time/Location: 1:30 p.m. Docking Room 784

• No hearings on proposed legislation scheduled at this time.