Winter 2013: Missouri Legislative Update

POSTED: September 6th, 2013
POSTED IN: Winter 2013,

Jorgen Schlemeier, Executive Director

The 2013 Missouri legislative session will begin just after the holidays and below are key issues already floating to the top of the House and Senate agendas. Both chambers will be guided by new leadership this year, Senate by Tom Dempsey R-St. Charles and the House by Speaker Tim Jones, R-St. Louis County.

Due to the past several sessions of gridlock, the two new leaders quickly announced an aggressive list of key topics, many which overlapped each other. That is a good sign to those who want to see productivity from the legislature in lieu of the same movie they have seen the past several years.

To help matters even more, the state’s growth may eclipse 4%, which means no forced cuts necessary to balance the budget. There will of course be cuts to programs the appropriations committees deem inefficient.

There appears to be five areas of focus –categories are; Education, Economic Development/Tax Policy, Infrastructure, Health Care and Tort reform. A few of the initiatives fall into multiple categories.

Education
Higher Education funding and capital investment is the primary focus when leadership talks about “Education”. The capital investment piece also falls into the “Infrastructure” category. A bonding bill continues to be discussed, ranging from $700M to $2B. A lot of discussion is forthcoming before any proposal becomes viable. While elementary and secondary education is mentioned, there is no single initiative on which either chamber has focused.

Economic Development/Tax Policy
Tax Credit reform will get heavy attention AGAIN. This seems to be the perennial topic, but the two sides have traditionally been so far apart that no resolution has been sent to the Governor for his signature. This year, most of the lawmakers pushing a complete evisceration of the tax credit programs did not return, therefore a middle of the road solution may prevail.

Why is this important? Tax Credit reformers will not allow other economic development bills to advance without a reform package attached.

Tax incentives to attract the development of data centers, and sporting events to Missouri are getting stale waiting around for a tax credit reform deal to get done so they those proposals can get moving.

Main Street Fairness is one additional proposal that has legs. This would require various out of state online retailers to begin collecting sales tax and remitting to Missouri. The increase in revenue collected will be offset by a corporate or individual income tax decrease. The University of Missouri released a study that calculated a $450M missed opportunity for state revenues.

The biggest jobs project could be the energy infrastructure project promoted by the Senate Leadership and the Speaker of the House during his Pre-session statewide bus tour. Westinghouse, Ameren and now every other Missouri electric supplier has partnered to build another nuclear plant in mid Missouri.

Infrastructure includes investment in energy infrastructure, Highways and Higher Education. The latter two would likely be seen in a bonding measure. Reconstructing the interstate system, primarily Highway 70 border to border, coupled with the higher education capital needs pushes a bond package well past the initial $700M discussion and near $3B price tag. To put that number in perspective, the State’s general revenue each year is $7.5B. The State just recently paid off a bond issue, so that stream of payments is freed up to retire this newly contemplated proposal.

Health Care continues to be a priority, there just doesn’t seem to be agreement on the solution. The Federal “Affordable Care Act” aka Obamacare, allows states to establish healthcare exchanges, but Missouri is one of the many that decided to pass on that option and call the feds’ bluff on their threat that they would instead establish an exchange for the state. The Feds extended the deadline for States to establish their own, but Missouri passed on that as well. A “partnered” exchange can be established, but a letter from the Governor will have to be delivered in the next few weeks, otherwise we are back to the feds taking primacy of the issue.

The law also allows, based on the Supreme Court decision, to expand Medicaid. In Missouri that is a big expansion, as our state’s eligibility are at the Federal minimum. Adults under age 65 and not blind or disabled are eligible only if their income is below 19% of poverty and they have a dependent child. The Child is covered as long as the parent’s income does not exceed 300% of poverty.

The expansion would cover adults up to 133% regardless if they have a dependent child. This will be heavily discussed during session. The Governor has announced his support for the expansion and will likely include it in his budget, which according to his calculations and virtually everyone else’s calculations, it will save the state $46M the first year because the Feds will pick up 100% of the tab.

The Republicans are opposed at the moment citing down the road expenses which will occur as the feds generous offer to pay 100% of the cost slowly diminishes and puts 10% back on the states. Many more discussions on this before it is settled.

Prescription Drug Monitoring will be introduced again this year. It has cleared the House handily the past several sessions, but cannot get through a roadblock of a handful of Senators. This year may be different as most of the opposing Senators were either termed, defeated, or redistricted out of their seat. Missouri is the only state in the nation that has not passed this law.

Tort is the final piece. The issues under this umbrella are clean up from past passed laws. The Watts case this summer eliminated medical malpractice case caps. The tort reform bill passed in 2005 was tossed out by the Supreme Court, and now the medical community is pushing a fix. Republicans are inclined to help.

Workers comp, specifically the 2nd injury fund, continues to need attention. The Governor and the republicans have not seen eye to eye on this issue, however the republicans have one additional tool this year IF, and that is a big IF, they can use it. The House now, like the Senate, gained enough seats during the election to override the governor without help from democrats.

Prefiling of Legislation began on December 1st. Here are bills of interest;

SB 64 Dixon Changes the evidentiary standard in medical malpractice cases to clear and convincing for noneconomic damages.
Bill History: 12-07-12 S Filed
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SB 84 Rupp Provides for the conscience rights of individuals who provide medical services.
Bill History: 12-17-12 S Filed
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SB 88 Schaaf Modifies provisions relating to fees health care professionals are allowed to charge for medical records.
Bill History: 12-20-12 S Filed
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SJR 1 Lager Grants the General Assembly the power to limit by statute jury awards of noneconomic damages.
Bill History: 12-01-12 S Filed