Report 1
REP. DOUG PATTERSON
Leawood-Overland Park
District 28
Johnson County Legislative Delegation Chair
REPUBLICAN MAJORITY WHIP
(For all my newsletters, handy sites and general state info - click on the above site)
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In an effort to keep you informed, I plan to prepare a Legislative Report for you at the close of each week during the Session. You won't find all of this material interesting, but each of you have specific interests, so I'll not keep anything out. I'll try to use convenient heading so you can scan these materials. Read what you want, I hope it is informative.
As always, let me know if you have an issue or interest before us in Topeka. You may call my office here at (785) 296-7672. I encourage you to e-mail me at:
Patterson@house.state.ks.us.
Week #1+: January 13-January 25
Legislative Update
The Legislature began it's first full post-inauguration week on Tuesday, January 21, 2003 with a reading from Dr. Martin Luther King, Jr.''s speeches and a rendition of "Let There Be Peace On Earth." The Legislature did not meet on Monday, January 21, 2003, in observance of Dr. King''s birthday.
Health Midwest Issue
SB 44: Transfer of hospital assets under certain circumstances to a foundation created for such purpose.
On January 23, 2003, the Kansas Legislature heard testimony from Attorney General Phill Kline regarding the control of proceeds from the sell of Health Midwest (a not-for-profit organization worth an estimated $700million) to Hospital Corporation of America, or HCA.
Kansas and Missouri both filed suit to ensure the proceeds from the sale went to charitable foundations in each state to provide health care to the poor. Health Midwest and Missouri settled their suit in a late night deal on Tuesday that gives Missouri control of 90% of the proceeds, with the remaining 10% to be used in Kansas despite between 15-25% of the assets being in Kansas.
The deal calls for a creation of a bi-state charitable foundation, with Kansas getting a few members on the board of directors. Effectively, Kansas has been worked out of any control of the proceeds through this deal. This was not good. Kansas Attorney General Phill Kline sought and received a temporary restraining order on the proceeds from Kansas assets. I know many of voters of our District 28 had mixed feelings about Phill Kline winning the Republican primary as well as the general election. I can tell you that Phill is really going to bat for us over this Health Mid-West sale aggressively.
The House and the Senate passed legislation SB 44 by wide margins on Thursday that the Governor is expected to sign Friday afternoon.
This creates a foundation that would administer the proceeds from the sale of Health Midwest to Hospital Corporation of America, or HCA. Furthermore, it provides for a board of 18, serving 3-year terms, all being residents of the area that is served by the charitable hospital. 5 are appointed by the Governor, 5 by the Attorney General, 3 by the Senate President, 3 by the Speaker, and 1 each by the Minority Leader of both the Senate and the House. This foundation is intended to finance charitable healthcare in Wyandotte, Johnson, and Allen counties.
Broadband Deregulation
HB 2019: State Corporation Commission prohibited from regulating high speed internet access/broadband service.
The Utilities Committee has been hearing testimony regarding HB 2019. According to SBC, their willingness to deploy high-speed Internet services across the state depends on the fate HB 2019. The President of SBC feels that price regulation proposed by the KCC would discourage the company from extending its broadband service to smaller communities. According to opponents of HB 2019, many local and national telecommunications companies, SBC could still provide service while being regulated.
In effect, HB 2019 would effectively remove the KCC from any oversight. If the oversight is removed, SBC will have market control over DSL service. However, cable can still compete in this market.
Currently, SBC has to share their network with other phone companies (voice). KCC ruled that they have to share data also. Our own Chris Carroll, SBC is here quite ofter.
Drivers Licenses for Illegal Aliens
HB 2039: Illegal aliens may obtain a drivers license if such person has an Internal Revenue Service taxpayer identification number.
The Judiciary Committee will be having hearings on this controversial piece of legislation.
The bill would allow undocumented immigrants who pass the requisite tests to obtain driver''s licenses using federal tax id numbers. I'm not supportive of this measure.
Fiscal Year 2003 Budget Recision
HB 2026: Appropriations for FY 2003, supplemental appropriations for various state agencies.
The Appropriations Committee is expected to pass Governor Sebelius'' proposed recision bill for Fiscal Year 2003 on Friday morning. The House of Representatives is expected to debate the bill on Wednesday or Thursday of next week. (1/27-31/03)(see below).
The bill is will cut spending in the current fiscal year which ends on June 30, 2003. The bill also restores some of the cuts made by Governor Bill Graves this year to education and social services. The bill does, however, pursuant to the Governors suggestion, begin the ultimate demise of moneys from the State sale tax being paid to counties and cities, i.e., "demand transfers".
Committee Headlines
Appropriations: Will pass the Fiscal Year 2003 recision bill very near Governor''s Recommendation on Friday to be on the Floor of the House by Wednesday or Thursday of next week. The Senate will work their version on Monday. (See Week #2 below)
Corrections and Juvenile Justice: Will be reviewing Sentencing Guidelines. Possible alternative sentencing for drug offenses could be a controversial issue this year.
Education: Legislation has been introduced to reform teacher tenure by eliminating the hearing officer and going straight to District Court. Also, it considers allowing districts to renegotiate contracts for teachers and administrators when their budgets are cut.
Ethics and Election: Considering a bill to tighten recall petition standards for school board members. Association of Broadcasters has requested a review of the Open Meetings Act in light of Governor Sebelius'' transition meetings.
Higher Education: Receiving briefings from Regents Institutions, Vocational Technical Schools and Community Colleges.
Insurance: The most controversial issue for the year will be credit scoring for insurance rates. Currently, considering foreign language insurance contracts, mandates for contraceptives and mandates for coverage of care during clinical trials.
Judiciary: Will be having hearings on the Kansas Power of Attorney Act and the Protection from Abuse and Protection from Stalking Act.
Federal and State: Most big issues are not in committee yet. Gambling bills appear to be starting in the Senate. A Joint House and Senate Committee will have hearings on Indian Tribes having casino gambling in Wyandotte County. The committee also will consider a conceal and carry bill for retired police officers. I am on this committee and am looking forward to seeing us develop a resort-destination type of gaming facility here....not just "another casino".
Taxation: Reviewing SB 39 from last year, specifically the Franchise and the Class C inheritance taxes. Planning a comprehensive review of sales tax exemptions. The state mill levy needs to be re-authorized this year along with the homestead exemption, a process that has been introduced, but not scheduled.
Utilities: Spending all week on proponents of deregulating SBC''s broadband service. Plans hearings from opponents next week.
Week #2: January 27-January 231
This week, Kansas turned 142 years old. On January 29, 1861, Kansas was admitted into the Union as a free state. We sang, "Home on the Range", the State song.
Fiscal Year 2003 Budget Recision
HB 2026: Appropriations for FY 2003, supplemental appropriations for various state agencies.
The Appropriations Committee passed Governor Sebelius'' proposed recision bill for Fiscal Year 2003 on Friday, January 24, 2003. The House of Representatives debated the bill during the Committee of the Whole today, Thursday, January 30, 2003.
The bill will cut spending in the current fiscal year which ends on June 30, 2003. The bill also added some money to social services and education budgets to adjust for increase case loads and fund the state''s portion of school Local Option Budgets.
The passage of Democrat Governor Sebelius' proposed budget recision bill for the current fiscal year hit a snag when it was debated on the floor of the Republican controlled House of Representatives.
House Republicans objected to Governor Sebelius'' proposed recision of the current fiscal year''s budget during debate on the floor of the House, due to accounting gimmicks. Very sad.
Throughout the budget, the Governor took balances in trust funds administered by the state and claimed the money was to "reimburse the state general fund for accounting, auditing, budgeting, legal, payroll, personnel and purchasing services and any other governmental services." In total, the Governor proposed taking $111 million from various funds to balance the budget.
For example, the Governor proposed to take $10 million of the $13.8 million Underground Petroleum Storage Tank Release Trust Fund. Republicans pointed out that the Governor did not offer any evidence to substantiate the claim that 72% of the money in the fund was needed to administer the fund. This measure proposed by the Governor threatens our ability to finance environmental clean-ups - The House Republicans will not allow the environment or our schools to be jeopardized by such "Arthur Anderson" accounting games.
"Either the Governor was being disingenuous, or we need to take a close look at the bureaucratic costs to run these funds," said House Majority Leader Clay Aurand, (R-Courtland).
Republicans offered an amendment that deleted language claiming the $111 million was to reimburse the state. It kept the budget in balance by borrowing the money from these funds and requiring the state to pay back the loan in Fiscal Year 2005.
"The truth is, we are taking the money to balance our budget," said Rep. Mike O''Neal, (R-Hutchinson) who sponsored the amendment. "That''s not what these funds are intended for, we need to be honest about what we''re doing and we need to pay the money back as soon as possible. That''s what we did today."
Democrats in the House suggested that a tax increase would be necessary to balance the budget in Fiscal Year 2005. Republicans countered that Governor Sebelius would have an entire year to hear from her very own Budget Efficiency Savings Team (B.E.S.T) to find ways to make structural changes in the way state government operates. Those changes should make balancing the budget without a tax increase possible.
After passage of the O''Neal amendment, the House of Representatives tentatively approved the bill with Final Action scheduled for Friday morning. It is expected to pass with broad bipartisan support. I will let you know how this went in next weeks report #3.
FY 2004 Budget
With passage of the current fiscal year''s recession likely, the Appropriations Committee will turn its attention to the Governor''s recommendation for the FY 2004 budget. The Governor''s "campaign budget" not only ignores the 7.5% ending balance required by law, but because it lacks the structural changes necessary to balance our budget in the future. You have read about the Governor's questionable policy on this in the Sun. I agree with the Sun on this issue.
Republicans intend to look for reforms to state government in order to find real savings. The Governor promised she would do the same during her recent campaign. She also appointed her B.E.S.T. to do the "Top to Bottom" review. The B.E.S.T. recommendations have yet to be implemented by the Governor.
The Governor, however, did make some cosmetic changes and one-time changes to the FY 2004 budget in order to bring it into balance. They include:
* Freezing payments for Kansas Public Employees Retirement System Death and Disability Fund (Only for FY 2004 and the last quarter of FY 2003),
* Reducing the summer school length for the School of the Blind,
* Delaying SRS payments at the end of FY 2004 and pay them immediately beginning in the 2005 budget period, i.e., for two weeks to make it look like the budget is balanced.
The Budget Committees in the House will be making recommendations to the full Appropriations Committee in the next couple of weeks.
Indian Gaming
The Kickapoo Tribe of Kansas and the Sac and Fox Nation gave a presentation today to the Joint Federal and State Affairs Committee. I'm a member of this committee. This was the first hearing on the joint tribal casino and the committee intends to look more in depth into the issue. In order to seek approval from the federal government, the tribes need the affirmative support of the State Legislature, Governor, and Wyandotte County''s Unified Government. Their presentation proposed a plan that would build a casino and resort near the Kansas Speedway in Wyandotte County. The two tribes plan would also call for the extinction of their existing casinos in northeast Kansas in eight years. They stated that the resort casino is intended to be the premier casino in the Midwest. According to testimony, the joint tribal casino resort would cost an estimated $175-200 million. The resort is intended to have approximately 250 rooms while the gaming floor is to be 80,000 square feet.
In support of their plan, delegates of both tribes claim that the project would create hundreds of jobs and stimulate the economy of state and their reservations. The tribes predict that once the joint tribal casino is in operation, the area will receive even more than the 7.5 million visitors that is currently projected. The tribes propose half of the site is intended to be the casino, the other half the resort. In order to maintain the family atmosphere, the 80 acre site has plans to include separate entries into the casino and hotel. We can do a lot better than the presentation made today. I predict that a resort-destination type casino will be the result of the committee's work. We don't need just fewer Kansas license plates in Missouri. We need more Oklahoma, Texas, Iowa, Nebraska and, yes, Missouri plates in Kansas. More to come on this.
Committee Headlines
Agriculture: Continuing discussion of keeping prairie dogs off of the endangered species list. We haven't got many of these in Leawood/Overland Park. Our endangered species are those friendly and very useful "Demand Transfer" dogs. ‘ hope to keep them off the extinct species list, let alone the endangered species list.
Appropriations: HB 2006 passed the Committee of the Whole and is expected to pass Final Action on Friday, January 31, 2003. Budget committees are looking at the FY 2004 budget .
Ethics and Elections: Hearings scheduled for February 3rd regarding a bill making it more difficult to re-call a school board member .
Local Government: Passed the consolidation of water districts; will have hearings on publishing legal notices on the internet instead of newspapers. Not a favorite of Steve Rose or the KC Star, but how often do you read all the ordinances passed by the Leawood or Overland Park City Councils? This will save our cities a bunch.
Security: Hearings regarding the information breach of the University of Kansas'' computer system.
Transportation: Secretary of Transportation hearings will took place today. A bill regarding seat belt penalties will be discussed in the near future. Also, the camera stop light authorization law is being discussed.
Utilities: The committee is hearing opponents of HB 2019, the SBC broadband bill. This is pitting almost every telecommunications provider against SBC. Keep up the good fight Chris.
Conclusion
Today, Thursday, Jan. 30, 2003 was especially enjoyable when Mayor Peggy Dunn and Leawood City Administrator Scott Lambers attended the Kansas League of Municipalities Day here. It was good to see friendly faces here. We are hoping to revive, in some way, the now threatened Demand Transfers.
Please let me know of any interest you have in the above matters, and I'll get you more detailed information.
If you know of anyone who would like to receive these newsletters, just e-mail me their e-mail address and I'll get them set up.
Respectfully,
Rep. Doug Patterson
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