Week of April 28-30 2010  Issue 13

 It has been a month since my last newsletter because my mother was terminally ill and I decided to visit her at the start of the break.  Ten days later she died and I returned to Rhode Island to be with family and friends.   I sincerely appreciate the messages of support I have received during this time.

Health & Human Services Committee

A hearing on S sub for HB2356 (Licensure and inspection requirements for child care facilities) was held on April 27 and 28.  The key issues are: (1) converting facilities that are currently registered to licensed; (2) inspecting all facilities that seek licensure; (3) frequency of inspections during transition interval; funding of needed personnel in order to resume annual safety inspections.   When the Committee began working the bill, I challenged the need for three years to inspect 2500 registered homes because the annual inspections are currently done on 4100 licensed facilities.  I argued for completion in one year.

To accommodate the increased number (6600) in year 2, I supported extending the interval to 15 months.  In the meantime, a fee fund needs to be created to support the hiring of more inspectors.

Yet to be addressed: Qualifications/training of providers as well as inspectors.

In the HOUSE

Conference Committee Reports (CCR), Senate bills yet to be passed by the House and bills vetoed by the Governor were on the Agenda.

HB2528: Court Procedure for forfeiture of an appearance bond

                Passed 112-10.  I voted YES

HB2656: Amending Kansas Code of Civil Procedure         

                Passed 122-0.  I voted YES

HB2668: Amending Kansas Code of Criminal Procedure

                Passed 122-0.  I voted YES

HB2509:  Child Pornography creates private cause of action        

                Passed 122-0.  I voted YES

SB54: Creation of Capitol Preservation Committee

                Passed 118-3.  I voted YES

SB342: Kansas Indoor Clean Air Act

                Failed 48-72.  I voted NO for this attempt to displace the statute passed in March, 2010.

SB2554: Technical Corrections to Economic Revitalization & Reinvestment Act

                Was replaced by a substitute motion to adopt HB2538 (Employer withholding tax incentive program) to go to Conference Committee.

                Passed 64-55.  I voted NO because this bill was originally in the Taxation Conference Committee and this action takes it to the Economic Development & Tourism Conference Committee (a new group of 6 Legislators).

HB2561: Use of I-35 shoulders by Public Transit Buses operated by Johnson County during congestion

                Passed 83-38.  I voted YES in support of Public Transit

HB2115: Governor’s veto of Abortion bill.

                Vote: 82-40 (not sufficient to override veto).  I voted NO because restricting the professional judgment of Kansas licensed physicians sets a precedent: restricting health care delivery in all areas of medical practice is my concern.  Representative Kinser changed his vote so he would be on the prevailing side and make a motion to reconsider.  This means the veto vote will come up again next week.

SCR1622.  To ament the Kansas Constitution relating to qualification of voters.

                Passed 122-0.  I voted YES.

Week of March 22 - 25, 2010 Issue 12

In the HOUSE

Upcoming Events

Week of March 15 - 19,2010 Issue 11

This past week committees ended hearing and working bills. Several times a house bill was inserted into a Senate bill (the Gut and Go process). This maneuver assures movement of the bill however, I think the disguise requires members to pay closer attention to the contents of every bill. They are identified by the title: House substitute for SB___. Another frequently used procedure is to reintroduce a bill with the motion to Concur or non-Concur. If leadership agrees to the amendment made by the Senate, the motion will be to concur and a vote will be taken. On the other hand, if leadership does not like the changes, the motion is to non-concur resulting in the creation of a Conference Committee (3 House members assigned by the Speaker: by Committee topic, the Chairman, Vice Chairman and Ranking Minority and 3 Senate members selected in a similar manner). The six meet to negotiate the differences and submit the report to both Chambers. The report is debated but not amended before voting.

In the HOUSE

Bills that passed unanimously:

SB 508: concerning discount cards filed with Secretary of State
SB369: relating to open records act
SB386: concerning criminal procedures; inspections, certification of forensic exams; interactive videos for child witnesses
SB437: relating to filing requirements for resident agents with Secretary of State
SB439: relating to Kansas Register publication of notices electronically
SB441: relating to merger of limited partnerships
SB458: concerning crimes; punishment and criminal procedures
SB541: concerning number of appeals court judges (increase by 1 in 2014)
SB262: concerning emergency medical services; titles and scope of practice
SB387: concerning certain claims against the state
SB414: concerning the health care stabilization fund
SB491: concerning respiratory therapists licensure; special permits
SB500: concerning healing arts act; use of titles/degrees
SB513: concerning alternative project delivery building construction procurement act; to include district hospitals

Bills with fewer than 5 nay votes for which I voted yes

HB2463: creates legislative commission to study Kansas tax policies
HB2520: adopting the federal definition of ‘willfully’ as related to taxation
HB2621: concerning electronic filing of tax returns
HB2689: allows voter approved increase of county sales tax in Pottawatome and Kingman counties
SB430: tax credits for historic preservation projects; angel tax credits
SB415: regarding local government investments of bond proceeds into obligations guaranteed by U.S. government
SB475: regarding funeral director licensure

Bills passed; my vote explained

HB2519: relating to compliance with streamline tax compact. I voted YES because being a member of the compact has resulted in the voluntary collection of 30 to 36 million dollars in sales taxes.
HB2521: repeals unused or underused tax credits. I voted YES because we need to utilize the process of reviewing and eliminating tax credits and/or sales tax exemptions rather than granting these in perpetuity. SB463: allows Norton County to have a bond indebtedness limit of 30% of assessed value of tangible taxable property. I voted YES because two other counties have been granted this limit.
HB2729: creates an energy district; issuance of bonds by county; voluntary participation by district residents. I voted YES because this mechanism fosters communitywide participation in conservation through a financial incentive. SB544: expands the definition of metropolitan to 90 miles. I voted YES to this legislation which helps the Topeka public transit system expand in ways that other public transit systems already do.

Bills previously passed by the House; amended by the Senate; return to the House for a vote to concur

These bills are HB2415; HB2418; HB2468; HB2547.

I would like to share what happened to HB2549 that eliminates certain sales tax exemptions and fund raising sales. The bill was carried by Rep. Jeff King, Vice Chairman of the Taxation Committee. He proceeded to introduce four amendments:
Amendment #1: strike churches from list. Passed: 119-0.
Amendment #2: strike lottery, bingo from list. Passed: 121-0.
Amendment #3: to strike residential utilities from list. Passed: 120-0
Amendment #4: to strike all except coin-operated laundry machines. Passed:121-0
Motion made by Rep. Nile Dillmore to postpone action on HB2549 until May 3, 2010. Motion passed by a vote of 64-57. I voted YES because we need to leave all sources of revenue on the table until such time that we have a budget presented.

A draft budget prepared by the Appropriations Committee was distributed this week. It will be debated next week. The newspaper reports have described the major cuts to K-12 education as well as other programs.

My Committee Activities

Taxation

HB2695: concerning vacant lot property that a county wants to bid off for delinquent taxes and special assessment. During the hearing the sponsor described the need to sell vacant lots after one year (currently two years) to collect property taxes. The disruption of development during these economic times presents challenges to cities and counties.

HB2709: relating to determination of Kansas adjusted gross income (income tax returns); certain excess employer social security taxes paid on employee cash tips are deducted from federal gross income or taken as a tax credit. This is a complex topic with employer and employee contributions at the tip wage ($2.13/hr)level; tips to realize the minimum wage ($7.25/hr) for which both contribute to Social Security taxes; on excess tips the employer pays both the employer and employee Social security taxes (for federal purposes, the paid taxes on excess tips are a business expense) deducted from gross income or a tax credit; a deduction reduces federal gross income but cannot be a deduction on the Kansas return or taken as a tax credit to reduce tax liability. While the contributions to the Social Security account of the employee are important, I don’t know how easily this entire topic can be tracked. I hope you were able to follow my summary.

HB2740: relating to amnesty from assessment or payment of penalty and interest with respect to certain taxes due prior to December, 2009. This amnesty bill, sponsored by Rep. Marvin Kleeb, focuses on individuals or small business owners who fail to file income taxes. It was modeled on a similar bill passed in 2003. He contends that in 6 months (July-Dec, 2010) $10 million could be collected at a cost of $ 925,700 thereby a net gain in revenue of over 9 million dollars. Since then the Dept. of Revenue has a Collections team that aggressively pursues payment of delinquent taxes, Secretary Wagnon indicated that collected revenues would be less than anticipated. Going throughout the state to identify non-filers would have less return for effort than the collection team negotiating settlements with known delinquent taxpayers. Payment of taxes would likely be by installment plan (not in full) and thus such payments may not be credited to the 2011 fiscal year.

HB2687 relating to income tax refunds; penalties. This bill, sponsored by Arlen Siegfreid, adds a penalty of 1 percent to a delayed payment of a refund due to overpayment of taxes after Dec. 2009. This monthly penalty would be capped at 24 months. The working of this bill led to an understanding of how the state handles refunds. For paper returns, processing of the return leading to a refund may take up to two months. For electronic returns, refunds are made within a week. If the refund is mailed after two months, interest (currently the rate is 8 percent) is paid retroactively to April 15. This penalty proposal would be activated on June 15 (raising the total interest return to 9 percent). The motion to insert HB2687 into SB 429 and pass out of committee FAILED. I voted NO because the state’s payment of interest on refunds (currently 8 percent) seems sufficient. Taxpayers should be made aware of the interest paid by the state when refunds are delayed beyond 60 days.

SB100 exempting from sales tax any fees or charges for participation in guided and non-guided hunts; sales of game birds. This bill was heard but not worked. I learned a sales tax would yield nearly $500,000 in additional revenue.

HB2578 (passed out of Committee and passed by the House) is now identified as H substitute for SB312.

HB2689 (passed out of Committee and passed by the House) is now identified as H substitute for SB255.

Health & Human Services

HB2288 was inserted into SB249 and is now identified as H substitute for SB249. This bill enacts healthcare price transparency. During the hearings, several pointed out the complexity and limitations of healthcare pricing. After 40 minutes of working the bill, the motion to pass the bill out of committee FAILED. I voted NO because I was convinced that this statute, as written, is too general and does nothing about controlling the costs of medical care.

HB2575 was inserted into SB83 and is now identified as H substitute for SB83. This bill was passed out of committee and passed by the House. The Senate added an amendment and passed the amended bill.

HB2590 was inserted into SB44 and is now identified as H substitute for SB44. This bill prohibits the repair, maintenance or inspection of medical gas piping systems by persons who are not licensed or meet qualifications for city or county certification. City or county also set minimum qualifications for medical gas installers.

HB2610: enacts the medical marijuana act for the legal use of marijuana for certain debilitating medical conditions, providing for the registration and functions of compassion centers; issuance of identification cards; administered by Dept of Health and Environment. This was an informational presentation (not a hearing) with a number of persons testifying on the need for legal access. The benefits for alleviating pain and other symptoms were described by several participants.

SB447 concerns the licensure of family child care homes in Kansas and for the elimination of the category: registered facilities; requiring all family child care homes to be licensed. At this hearing we heard about frequency of inspections (currently licensed facilities are inspected annually). To inspect the 2600 currently registered facilities will take 3 years during which time self evaluations would be submitted by facilities currently licensed. There were many specifics discussed: provider qualifications, licensure of providers, provider education and risk assessment measures. We heard from parent consumers as well as a licensed provider. The hearing was not closed and may be resumed next week if schedules allow.

Aging & Long Term Care

HB2673 creates a provider assessment tax on all licensed beds within skilled nursing care facilities in Kansas; establishes the Kansas Health Policy Authority (KHPA) as the state agency to calculate and implement/establish a Quality Care Fund where all tax and penalties collected through this assessment program would be deposited; establishes a Quality Care Improvement Plan. Exempted from this tax are the Kansas Soldiers Home and Kansas Veteran’s Home. I do NOT support this bill. The minimum annual tax per bed is currently set at $1335 which will generate over 30 million dollars as the state match to draw about 70 million dollars creating a Quality Care Fund with 100 million dollars (the maximum could be as high as $2550 per bed per year). In committee, I argued that such an added charge would hasten the depletion of assets in the private pay group and push more residents onto Medicaid. While the current federal match is 70 percent, this will revert to 60 percent or, in my opinion, even less in the not too distant future. The assessments would be due quarterly and a delinquent penalty of the $500 or 2% of the assessment per day (the lesser amount); no refunds for reducing the bed number; and there is no guarantee that a facility will have increased reimbursement to offset this expenditure (the formula requires that there be winners and losers). I am not confident that the Fund would not be swept should a shortfall in State revenues occur. This year the state match for Medicaid was cut 10 percent with the accompanying loss of federal match. I do not think that this type of need is limited to 2010. The depletion of assets last year prompted the passage of legislation the permits transfer of life insurance to the state to cover cost of skilled nursing care. The cost of living longer will become increasingly more important to Baby Boomers who are pursuing healthy life styles, expect quality services and find asset preservation a challenge.

Economic Development & Tourism

HB2616 concerns revisions to the Kansas professional regulated sports act (martial arts); pertaining to violations, civil penalties, fees, rules and regulations as well as the powers of the state’s Athletic Commission. All revenues (violation fines, fees on gross receipts) would be credited to the Athletic Fee Fund (previously 20% ($ 25,000) went to State General Fund. This bill passed out of committee by voice vote.

Upcoming Events

While in Overland Park next weekend, on Saturday I will be speaking at the Eggs & Issues breakfast sponsored by the Overland Park Chamber. At 10 a.m. I will be at the Matt Ross Community Center to participate in the community forum organized by Senator Owens.

If you want to subscribe to this newsletter, send an e-mail or enroll on the website.

As always, you can contact me by e-mail (dfurtado08@gmail.com ) or by phone (913-341-3072) or in Topeka (785-296-7677). You can leave a comment on the web page: www.doloresfurtado.org

Week March 8-12, 2010 Issue 10

Dolores Furtado’s Legislative News Week of March 8 -12,2010 Issue 10 This week was a busy one with many bills worked in committees as well as in the House. The highlight of the week occurred on Friday, March 12 at 10 a.m. with the Governor’s signing of the Clean Air Act. People from many organizations who had worked on this project were present and added to the celebrative atmosphere. Senator David Wysong who started the effort over 4 years ago was among those who witnessed the signing. The House leaders , Lisa Benlon (got 45 Democrats votes)and Charlie Roth ( got 23 Republican votes,) were also recognized. I enjoyed seeing many of our Johnson County residents who began their work in Johnson County over 6 years ago. It was a wonderful occasion for the many Kansans who, through their testimony and communications, pushed forward the effort to achieve a statewide smoking restriction.

In the HOUSE

Among the bills that passed unanimously:

SB398: amending the Kansas Corporation Code

SB489: concerning contact lenses and ways for distant delivery

H sub HB2345: allowing incorporation of long term care insurance into annuities

HB2676: concerning employment security law

HB2691: concerning budget estimates of state agencies

SB451: concerning municipal bonds accepting cash for good faith deposits

HB2323: concerning water service and property annexation

SB376: concerning reference name change

SB396: concerning the laboratory equipment fund for use by Dept. of Agriculture

SB440: relating to registration of insignias with Secretary of State

Bills with fewer than 5 nay votes for which I voted YES:

HB2678: memorializes a segment of U.S.Highway 59

HB2704: facilitating consolidation by small school districts

SB438: eliminating requirement that business trusts file balance sheet with Secretary of State

HB2283: concerning water service and property annexation

SB497: Clarifying language on non-criminal sporting/working knives (non switch-blade)

Bills that passed with my vote explanation:

HB2560: concerning Kansas Real Estate Brokers’ and Salespersons’ Licensure Act. Passed.

I voted YES in support of changes regarding hearings and increased fee caps for licensure.

SB 409: establishing passenger rail service south to Oklahoma through to Fort Worth. Passed.

I voted YES in support of promoting passenger rail service.

HB2390: regarding insurance coverage and use of credit scores. Passed.

I voted YES for consumer protection during these tough economic times.

H sub SB200: creating a 1% privilege fee on Health Maintenance Organization. Passed.

I voted YES because the HMOs requested this fee for use for state Medicaid match.

My Committee Activities

Taxation

The week started with testimony in opposition to HB2682. According to the Department of Revenue the fiscal impact of the income tax deductibility of employer contributions and employee deductibility of premium payments for the purchase of individual health insurance plans would fall between $ 27 and $108 million dollars in lost income tax revenue. This broad range depends on the extent of deductibility of premiums and employer contributions. The Insurance Department’s concern is the potential erosion of small group plans now offered to clustered small businesses. Another concern is the appeal of individual plans to young, healthy workers would likely cause premiums for group plans to increase to cover older employees or employees with pre-existing conditions. This situation concerns me when demographics show that unemployed older adults may need to work or want to defer retirement. Even with Medicare Part A coverage, the costs of the supplements are considerable.

HB2578 provides for certain counties facing a significant shortfall in revenue from property taxes paid under protest or other unanticipated disaster to obtain a 4 year loan(up to $ 50 million)from the Pooled Investment to be paid back with interest. Bill passed out of committee favorably by voice vote. Taxation

HB2630 links, in an inverse fashion, property appraisals and mill levy in order to maintain a constant revenue level and thereby limit spending by county and city governments. New construction and indebtedness obligations are exempt and state mill levy is unchanged A lengthy discussion plus added amendments resulted in a bill that permits budget growth by allowing an increase that reflects the percent increase of the national Consumer Price Index Urban; require publication of proposed budget for residents to review; any increase in property taxes could be subject to a protest petition within 60 days (signatories to come from 5% of voter participants in most recent past general election for Secretary of State) basis for voter approval in an election. The bill passed 13-7. I voted YES because I thought that local governments could plan budgets within the constraints described in the amended bills. However, subsequent discussion alerted me to the possibility that in the House amendments could be introduced which would take us back to the original bill or worse!

HB2519 Motion to reconsider withdrawn.

HB2593 doubles the gallonage tax on beer, wine and liquor including inventory that is projected to render $37 million annually. The proposed tax revenue would be split between Developmental Disabilities and Mental Health. Motion was made by Kay Wolf to move HB2593 without recommendation. The discussion focused on the likelihood of a fund sweep by Appropriations and on the impact of such a tax on sales along border counties. Motion made to table indefinitely was passed by voice vote.

HB2630: Motion to reconsider was introduced. Discussion included role of elected local officials; inclusion of Community Colleges, vocational-technology schools and school districts. Motion to reconsider passed by 12-8 vote. I voted YES because I believe locally elected County Commissioners and City Council members should set budget priorities. Locally elected officials are more directly held accountable by their voters than are the 63 Representatives and 21 Senators who approve a bill that limits spending by counties and cities.

HB2496 is about tax credits for historic preservation projects. Arlen Siegfreid introduced House substitute for SB430 saying it dealt more favorably with cuts and caps. These projects were portrayed as job creators and a quick return on investment. The bill was amended to include the Kansas Center for Entrepreneurship in Wichita. The bill was passed by voice vote.

HB2682 deals with small business health insurance plans. If an employer does not offer a group plan, an employer can make a contribution to the employee’s individual purchased plan (paying either a percentage of salary or a specific monthly contribution). Both employer and employees can deduct the premium costs from their income tax liabilities. Even if the employer offers a small group insurance plan, employees who choose to purchase the individual private pay plan and get the tax deduction may get the employer contribution. I don’t like the option because of the unintended consequences. With individually purchased plans, the risk remains with the individual (premiums can precipitously increase with an illness). To leave the plan with a pre-existing condition makes future purchases of insurance too costly or impossible. The proponents of this option included Arlen Siegfreid, Marvin Kleeb and Kay Wolf. Opponents included Lisa Benlon, Gene Rardin and myself. The vote to pass the bill out of committee was 11-9.

Health & Human Services

HR6017 acknowledges that obesity among African Americans, Latinos and American Indians is a national issue. In Kansas we need to develop outreach programs that emphasize nutrition, physical activity and the health consequences associated with obesity.

SB491 The hearing on this bill focused on issuance of Special Permits (for 90 days supervised by licensed respiratory therapist) and Temporary License (licensure for up to a year until satisfying the Board exam). This discussion was very convoluted and raised more questions about the topic relative to licensure of all medical providers.

HB2288 concerns transparency in the pricing of medical procedures to enable a potential consumer of services to obtain an estimate of the costs and thereby make an informed decision. The barriers to such a change include antitrust laws prohibiting discussion of charges among the providers; insurance coverage contracts that include but not limited to deductibles, co-pay and proprietary information regarding negotiated prices by different insurance companies; the economic status of consumer; bankruptcy. After 50 years of Insurance companies, progress in this area will be slow.

SB500 makes a technical correction to existing statute to allow health care providers with doctoral degrees to retain use of the academic title (or initials) on business cards and stationary. SB475 regulates the licensure of funeral directors for disposal of human dead bodies; permits cremation by licensed personnel in the crematorium; and acknowledges role of persons who interact with families in arranging for cremation without the involvement of the funeral director.

HB2118 requires that social workers take 6 hours of safety awareness training as a component of their 40 hour continuing education requirement. Further training in safety awareness are to be included in the Continuing education courses.

SB490 concerns the licensure of physical therapists. This bill creates two new licensure categories: exempt and federally active.

SB491 concerns issuance of temporary licensure for respiratory therapists.

SB508 concerns distinct requirements for suppliers who sell healthcare discount cards. Both annual notices and suriety bonds must be filed with the Secretary of State.

SB262 amends the statutes that deal with Emergency Medical Services. Titles and scope of practice descriptions are among the changes.

Aging & Long Term Care

House substitute for SB43: A gut and go procedure was utilized to work HB2118 to require social workers to have 6 hours of safety awareness training as part of the Continuing Education Units needed to licensure. Bill passed favorably by voice vote.

Economic Development & Tourism

SB54 concerning the creation of a Capitol Preservation Committee to oversee and approve future proposal s for artistic displays and redecoration/reconfigurations within the capitol or surrounding grounds upon completion of the current reconstruction project (January, 2013). The subcommittee report was amended and passed favorably by voice vote. A presentation on the Post Legislative audit findings on tax credits and sales tax exemptions was made to the committee.

While in Overland Park this weekend, on Saturday I attended the Eggs & Issues breakfast sponsored by the Overland Park Chamber; I had a great chat with a constituent on a variety of topics at the HyVee on Saturday afternoon and on Sunday attended the movie:” What’s the Matter with Kansas?” sponsored by MainStream Coalition. If you would like for me to talk to a group please contact me. There is much to talk about and I do want your views and opinions.

I want to thank the subscribers who are sharing my newsletter with friends, neighbors and other Legislators. The feedback has been encouraging. I will continue with my format.

As always, you can contact me by e-mail (dfurtado08@gmail.com ) or by phone (913-341-3072) or in Topeka (785-296-7677). You can leave a comment on the web page: www.doloresfurtado.org

Week 8 (March 1 -5, 2010) Issue 9

Another week consumed by committee meetings and very little work in the House. On Tuesday, I ended my day wondering if the democratic process is working. Let me explain. In Tax Committee we were working the Tax Exemption bill (HB2549). Moves made by Rep. Arlen Siegfried puzzled me. He moved an amendment to keep the non-profit charitable organizations exempt from sales taxes. After a brief discussion the amendment passed. Rep. Siegfried then moved that HB2549 be reported to the House adversarially (that kills the bill). That action was immediately followed by the Vice Chairman offering a substitute motion to pass the bill without recommendation. Why amend a bill (to remove a component) if you intended to kill the entire bill (keeping everything tax exempt)? What was the role of the Chairman Carlson in what appeared to me as orchestrated moves by these members? In the afternoon in the Health & Human Services Committee meeting, the working of HCR5032 to amend the Kansas Constitution to protect Kansans from having to buy health insurance started oddly. Within 10 minutes into the meeting, Rep. Scott Schwab moved to report the bill to the House as passed favorably. The Chairman’s pensive response: the Committee should discuss the bill and she asks the motion maker to withdraw the motion. After a lengthy discussion HCR5032 passed favorably on a 12-10 vote.

I hear talk about transparency and accountability in government; people complain about their government and people speak negatively about the politicians. I submit orchestrated moves, such as happened last Tuesday, invite cynicism about the governing process. However, as one person said to me in an effort to alleviate my concerns, democracy may be messy but consider the alternatives!

In the House

This past week the House passed 4 bills that now go to the Senate:

HB2538 concerning the promotion of employment across Kansas act; relating to qualifications for benefits under the act passed (87-34). I voted YES to keep jobs coming to Overland Park and Johnson County, however, the cost to the state is significant (estimated $ 93 million over 5 years). The benefit to the employer is to retain 95% of income taxes withheld from each new or retained employee’s salary for up to 10 years. This act creates a class of jobs: government subsidized private jobs. Look up bill for additional details to appreciate the extent of this new benefit.

HB2544 concerning the state public trust for certain communities within superfund sites. Passed. I voted YES to deal with the disposal of properties within a superfund site.

HB2649 designating little blue stem (Schizachyrium scoparium) as the state grass of Kansas. Passed. I voted YES for the recommendation based on research by middle and high school students from Johnson County.

HB2698 authorizing the Secretary of State to grant an easement to the city of Ogden in Riley County. Passed unanimously.

My Committee Activities

Taxation We started the week with an informational meeting on Insurance companies Taxes and Tax Credits. Bob Tomlinson, Deputy Insurance Commissioner, provided a history of how premiums are taxed (over the years between 1 and 2 percent) and awarding insurance companies tax credits (up to 15% of the salaries of employees based in Kansas. Imposing caps or limits on both of these allows for companies to balance the salary levels that serve the company’s best interest. The tax credits can be shifted to more profitable subsidiaries outside of the state thereby reducing their tax liability to the state. It is complex and hard to follow. The bottom line is that in 2008, tax credits amounted to $52 million. He emphasized the nearly 10,000 Kansas jobs. We were not t old how much the 1.25% tax on premiums yields, however, the revenue stays with the Insurance Commissioner and does not go into the state general fund.

HB2549 regarding sales tax exemptions includes the exemption of residential utilities, Lottery tickets (multistate compact excludes charging sales tax), admissions, non-profit organizations, churches and the list goes on. You often hear that we lose $ 4.2 billion in sales tax, however, that number reflects taxing raw materials, labor services etc (these account for $ 3.0 billion). The revenues lost by retail sales tax exemptions amount to $ 1.2 billion. Amendment #1 dealt with exempting labor services on tangible personal property (about $2.3 million); amendment #2 removed non-profits from the bill ($10 million)passed and then was followed immediately by the motion to report the bill adversarially. This was followed immediately by a substitute motion to pass the bill without recommendation. The substitute motion was passed on a voice vote.

HB2496: related to tax credits for historical restoration introduced by Rep. Siegfreid. This bill proposes tax credits of 25% for-profit projects and 30% for non-profit projects. The emphasis was on jobs requiring skills, not out-sourced, generate other revenues (sales tax and income tax). Opponents described large projects accessing a variety of government supports in addition to tax credits.

HB2689 authorizes Kingman County to place on the November ballot a 1% sales tax proposal for jail and infrastructure improvements. Passed by voice vote.

HB2725 authorizes Pottawotamie County to place on the November ballot a 0.5% sales tax proposal for infrastructure improvements. Passed by voice vote.

HB2682 regarding small business employer health insurance benefits for employees. This bill proposes that small businesses (20 or fewer employees) have the option to offer a group plan or to provide cash (same percentage or same cash amount) to employees who purchase an individual insurance plan. The employer contribution either way is tax deductable (deduction worth $ 27 million). Interjected into the presentations were Cafeteria plans, High deductibles, Health Savings Accounts and Health Reimbursement Arrangements. In Kansas about 175,000 people buy low cost individual plans. In these situations, the risk is not shared (as in group plans) leading to increased premiums as you age or become ill. Since salaries are likely to increase less than premiums, the employer contribution declines as the premium goes up which pushes the employees into HSAs, high deductible catastrophic coverage.

Health & Human Services

HCR5032 would amend the Kansas Constitution by adding Article 16 which would preserve the freedom of Kansans to provide for their health care. The main points being no law or rule to compel participation in any health care system or to purchase health insurance; paying cash for lawful health care services would be without penalties and fines. Attempts to amend the resolution failed on 12-10 votes ending with the motion to pass favorably (12-9). I voted NO because I take amending the Constitution very seriously. I believe government cannot achieve compliance through mandates and also believe this bill is about state sovereignty, federalism and freedom not about health care insurance.

SB449 concerning requiring a doctoral degree with 1800 clinical hours for licensure as audiologists.

SB489 makes language changes in existing statue regarding delivery of contact lens to include mail, FedEx, UPS etc.

HB2118 concerning the inclusion of 6 hrs of safety awareness training as part of the mandated Continuing Education Units for licensed social workers.

HB2650 expands categories of Physical Therapists to include Federal Active, Exempt in addition to the existing Active and Inactive categories. This expansion is to accommodate malpractice coverage provided through the Federal or State Tort Claims acts. The Active status requires that the licenised individual purchase individual malpractice insurance while the Inactive status is licensed without malpractice insurance.

Aging & Long Term Care

HB2118 is the same bill heard in Health & Human Services. This is another example of politics dominating the process.

A presentation made by Loren Snell from the Attorney General’s office on abuse of the Durable Power of Attorney. Hearings have been scheduled in the Senate (SB45) introducing procedural changes that can make violations a criminal prosecution rather than a civil one.

Economic Development & Tourism

SB54 concerns the creation of a Capitol Preservation Committee for the purpose of approving art (permanent or revolving) within the capitol building and surrounding grounds beginning January, 2013.

Presentations by Secretary Hayden (Parks and Wildlife) and by the Tourism Director of Geary County indicate that Tourism, involving outdoor activities in Kansas, is increasing in popularity.

Reminder:

My March chat over coffee will be held on Saturday, March 13 from 1 to 2:30 p.m. at the HyVee Grocery Store coffee/lunch area on 91st Street just east of Metcalf. Hope you will come to talk about issues and to give me your reactions to some of the bills we are covering.

Week 7 (February 24 – 26, 2010) Issue 8

There were two bills that were debated for hours during this short but busy week. I decided to speak in each debate (the other option is to spontaneously respond to what was being said), so, I had to take the time to prepare. I learned how one goes about offering an Amendment to a bill. The process starts with going to the Reviser assigned to the Committee. Copies of the Amendment have to be signed before handing them in upon recognition by the Chairman. After you explain the Amendment, you stand for questions. Although no one asked me a question, several spoke in opposition or in support of the amendment. After nearly an hour, the discussion ended, I closed and moved the Amendment and the vote was taken. Althou gh my attempt to amend failed, I was glad to have participated in the debate.

In the HOUSE

HB 2221, the Clean Air Act, was introduced on Thursday. As a proponent I made reference to my 31 years spent teaching future physicians about the frequency with which respiratory tract infections repeatedly occur in the course of a lifetime. While Legislators enjoy working in a smoke-free environment, many Kansans with colds or sinus infections are not as fortunate. My next argument for good public policy was to use the restriction of speed on streets (for public safety) as analogous to the restriction of smoking (for the health of the public). I made the news on Channel 13 that evening.

HB2538, cash incentives to employers who offer new jobs at the median county wage or higher, was debated for hours. The essence of my Amendment was to address the need for consistency within the bill (originally, the use of average and median were intermingled). The change was made to use only median throughout the bill. My amendment to use average instead of median failed, however, my objective for consistency was met. Final action on this bill will occur on Monday.

My Committee Activities

Taxation:

This committee met on all three days. Testimony on HB2578 (for a county to obtain a loan from the pooled money investment board) exposes an unintended consequence of exempting machinery and equipment from property taxes. A large business in Montgomery County has protested their property tax bill claiming that 80% is machinery and equipment and thereby exempt. The case is being heard by the Court of Tax Appeals and is anticipated as likely to be heard by the Kansas Supreme Court. To cover the potential liability of having to refund taxes, the county is faced with the need to dramatically raise the property tax for individuals/businesses OR to get a loan in order to incrementally raise the taxes over 4 yea rs (the duration of the loan). If the Courts rule in favor of this company, it can be anticipated that many more claims will follow.

Testimony on HB2630 proposes to limit county property tax revenues to the previous year’s revenue level. The need to exceed would have to be approved by the voters. As a former County Commissioner I had to prioritize within the constraints of the budget. I cannot support having the state limit the authority of elected county commissioners. In my opinion, those who reside in the County have more power over 7 County Commissioners than over 63 Representatives and 21 Senators.

The last bill heard was HB2593 that would double the gallonage tax on beer, wine and liquor. The $22 million generated would be ear-marked for the Developmentally Disabled and for the Community Mental Health programs.

Health & Human Services

We met once this week and heard an informal presentation on HB2447 grants licensure to advance practice registered nurses under the Board of Nursing. This was not a hearing which means that the change will probably not happen this year. A presentation on HB2673, assessing a fee on nursing homes, was informational (see below).

Aging & Long Term Care

A hearing on HB2673 assesses a quality assurance fee, that is, a uniform bed tax. This proposal, an amended Medicaid plan, has a federal match. The Kansas Health Policy Authority would administer this Quality Care Fund (for a 1% fee) and would, in turn, have the distribution managed by the Kansas Department on Aging. A $4/day nursing home bed tax amounts to $ 2550/bed/year or $ 51.3 million to be matched by 129.1 federal dollars for a total of $ 186.4 million annually. The bill states that this assessment would sunset after 4 years, however, proponents with facilities in other states indicated that a fee sunset has not happened. This hearing continues next week.

Economic Development & Tourism

A presentation by Tom Thorton, President and Chief Executive Officer of the Kansas Bioscience Authority, emphasized the enhanced national visibility of this Authority. The National Bio and Agro Defense facility has attracted two more federal labs into Kansas. Collectively, these facilities will have a $ 3.65 billion economic impact for Kansas. For every state dollar invested, the return to the state’s economy is $ 7.52.

About 20 residents attended the Saturday, February 27th Community Forum at the Matt Rose Community Center. The two hour discussion focused on the challenges facing the Legislature. While our answers were descriptive and informative, all realize that, what we have is a work in progress.

I want to thank the subscribers who are sharing my newsletter with friends, neighbors and other Legislators. The feedback has been encouraging. I will continue with my format.

As always, you can contact me by e-mail (dfurtado08@gmail.com ) or by phone (913-341-3072) or in Topeka (785-296-7677). You can leave a comment on the web page: www.doloresfurtado.org

Week 6 (February 15 – 19, 2010) Issue 7

This week, the halfway point of this session, is referred to as the Turnaround Deadline. The House was in session from Wednesday through Friday. Bills passed by the House now go to the Senate and Senate bills come to the House. The process of Committee hearings, possible amendments and debate starts over again. Any new legislation from the House comes via exempt committees (Appropriations, Taxation, State & Federal). If you listened to the debate you may have heard bills being referred to these committees. Once they are “Blessed” bills the next move is to re-referred to the Committee of origin for working the bill. In other words, there are ways to get around every deadline!

In the HOUSE

During this past week the following bills were passed in the House. There were so many that I have organized them in groups according to the level of support. If you want to know more go to the Ks Legislature website and enter the bill number to read the entire bill or you can track the bill and go to the House Journal if you are interested in the votes made by the various members of the House.

The following bills were passed UNANIMOUSLY by the Representatives who were present for final action:

HB2432 Concerning crimes related to justified threat or use of force

HB2448 Concerning Pharmacy Act and administration of vaccines

HB2473 Prohibiting surcharge on use of debit cards

HB2485 Concerning transport of goods or passengers

HB2509 Concerning work release of sexually violent predators

HB2510 Purchasing a temporary registration to operate truck/tractor

HB2517 Concerning crimes relating to domestic violence

HB2555 Memorializing part of K-14 highway

HB2557 Concerning reference to inheritance tax

HB2566 Changing food, drug, cosmetic act regulation to Dept. of Agriculture

HB2572 Concerning Information technology Consolidation where feasible

HB2581 Concerning criminal procedures and correction supervision fees

HB2582 Concerning crimes related to property

HB2584 Concerning the practice of Optometry

HB2588 Concerning prepaid funerals and limitations on irrevocable trusts

HB2589 Concerning prearranged funeral agreements

HB2604 Concerning crime and work release

HB2605 Concerning court fees and laboratory fees

HB2608 Concerning assessment of certain financial institutions

HB2609 Relating to banks and banking concerning general powers

HB2619 Concerning duties of registered nurse anesthetists

HB2631 Concerning Kansas owned real estate reporting requirements

HB2650 Memorializing a segment of US 75 highway

HB2652 Concerning the Kelsey Smith act

HB2656 Concerning civil procedure codes

HB2661 Concerning drug crimes

HB2668 Concerning crimes and recodification

HB2676 Amending Employment Security law regarding contribution rates, penalties & interest

SB 357 Regarding Beloit Juvenile Corrections facility. Sent to Governor

Bills passed by the House with the support of 90% (100 or more votes including mine):

HB2408 Periodic review network security used by State agencies

HB2453 (Sub): Concerning distribution of drugs near child care facility

HB2471 Snake annexation by Mulvane

HB2547 Amending the vehicle dealer and manufacturers licensing act

HB2575 Licensure of Naturopathic doctors

HB2577 Addition Councilors Licensure Act

HB2595 School District transportation of out of district students

HB2601 School District changing high density at risk pupil weighting

HB2637 Requiring the court to charge fee for storing DNA data

HB2638 Granting law enforcement powers to Horse Thief Reservoir trained employees

HB2660 Regulation of recreational off-highway vehicles

HCR 5026 Requesting Supreme Court to survey/study court system

The following bills were passed with a majority vote. I have explained my vote:

HB2442 Establishing the Kansas streamlining government commission

I voted NO because I will oppose unnecessary expansion of state government

HB2506 Concerning crimes and relating to using proportionality sentencing by Kansas parole board

I voted YES for proportionality.

HB2410 Relating to eligibility of at risk students for free lunch program

I voted NO because lack of documentation would further reduce funding by $3.3 million (estimate by the Board of Education).

HB2508 reduces the deferred time for certain parole hearings from 10 years to 5 years.

I voted YES for more frequent hearings because sentencing guidelines change.

HB2585 waives the marriage fee for couple who sign poverty affidavit.

I voted YES because I don’t believe this waiver will be used much, however, two poor people may inspire and help each other move away from poverty.

HB2667 places all existing domestic relations statues into one location in the Kansas Statutes. This bill was amended by Representative Anthony Brown to include a covenants marriage pledge.

I voted NO because of the Amendment. I don’t believe we can or should legislate commitment.

HB2280 deals with state aid in capital improvement and capital outlay funding for school buildings.

I voted NO because I listened to the debate. Smaller school districts rely on state aid. To reduce state aid from 25% to 15% at a time when consolidation may require capital outlay did not seem right to me.

HB2478 regarding county approval of certain annexations by cities.

I voted NO because our county and cities have successfully dealt with annexation and Overland Park is satisfied with the local process.

HB2561 allows transit buses to travel on right shoulder of certain highways.

I voted YES because we need to offer incentives for residents to use bus transit in Johnson County especially along I-35.

HB2239 creating a uniform accounting system for recording and reporting receipts and expenditures by each School district.

I voted NO because this concept was poorly described, has a $ 150,000 start up cost and potentially will cost each school district much to implement in the name of transparency.

HB2238 amending the fairness in private and public construction contract acts regarding retainage.

I voted NO based on input I received from the city of Overland Park that the current system is working and no widespread problems exist

Bills that FAILED to pass:

HB2515 Concerning cities and counties and residential fire protection sprinkler systems.

Bill failed on a 60 to 62 vote.

I voted NO because building and safety codes are best handled by local government.

The failed list is short because when a bill is in trouble, the strategy is to pass over or to refer the bill back to committee. Be assured there were many more votes on amendments, many opportunities to explain your vote as well as to change your vote.

The second half of the session provides each Chamber an opportunity to scrutinize that which has moved forward. It is also a time to add failed bills as amendments. However, most of the legislation introduced during the first half will not become law.

I thought I would share how much agreement exists at this time in the process (as reflected in the number of bills with 80 to 100 percent approval). Things will change starting this week!!!

My committee activities:

Taxation:

This week questions and comments were exchanged following testimony by opponents to HB2549 (tax breaks). The opponents really don’t want the 5.3% state sales tax added to Utility bills (electricity, gas and water). They emphasized the regressive nature of sales taxes and the burden on the homeowner who cannot afford weatherization of the house. Questions and comments by Committee members explored the impact on consumers. Another argument is the concern that the sales tax burden will exceed that of property or income taxes.

HCR:5028: a resolution establishing a 3 year moratorium on granting new tax exemptions, tax credits or economic development incentive programs including employer withholding taxes was introduced. It also included a review of exemptions every 3 years . The Committee discussion characterized this Resolution as worthless and a concept that hinders incentives for economic development. I pointed out that all exemptions are awarded in perpetuity. There are no policies to guide the Committee when requests for exemption are received. The motion to report the Resolution out of committee favorably FAILED.

HB2621: would repeal certain tax credits and would prohibit future transferability of certain tax credits which, if approved, would generate $ 860,000. Three out of 4 in each category were eliminated. The Individual Development Accounts and Angel Investment Credits were retained. The latter credits can be transferred one time with approval from K-TECH. Tax forms must be filed electronically. The net gain in revenue from the credits that have been eliminated is $ 60,000.

The need for criteria for granting exemptions, for regular review of exemptions and a more detailed accounting of the lost revenues (actually expenditures) is real and must be implemented!

HB2520: would insert the federal Internal Revenue Code definition of willfulness into the state sales tax and withholding personal responsibility statutes. This change is estimated by the Dept. of Revenue to increase collections by 5% or $ 438,000 in 2011.

I supported changing the definition of willfully to be identical to that in federal tax laws. I also learned that individuals who fail to collect or fail to pay over collected taxes (keeping the money for other uses) are inclined to fight the case in Court. Interpreted of the Kansas definition of willfully has been more restrictive than the Federal definition.

HB2519: changes the Retailers’ Sales Tax Act to maintain compliance by Kansas with the Streamlined Sales & Use Tax agreement. Kansas is a member of the compact and benefits from voluntary collection and remission of sales and use taxes on remote transactions ($ 30 million). Rep. Siegfried was disturbed by the difference in amount of taxes collected by in-state businesses ($ 105 million) as compared to out of state voluntary collection of $ 30 million. He moved to amend the bill to allow businesses to choose to collect either origin or destination sales taxes. Such a change will disqualify Kansas as a Full Member of the Compac t. The vote was 11 to 10 to pass the bill as amended.

I opposed the motion because we cannot afford to lose the $ 30 million voluntarily collected on remote transactions until the federal government passes a national streamline and use sales tax. Kansas joined the compact 8 years ago and to drop out now with the hope that the Federal government will impose a national streamline/use tax is not realistic.

Health & Human Services:

At last we worked several bills in order to have them introduced in the House prior to Turnaround.

HB2448: amends current law to allow a pharmacist (certified in vaccine administration) or a pharmacy student or intern (supervised by a pharmacist certified in vaccine administration) to administer an influenza vaccine to a person 6 years of age or older. A record of immunization is to be provided to the vaccinees’ primary care provider by mail or electronically.

In the discussion, I supported allowing vaccine administration to 12 through 17 year olds (tetanus booster for rusty nail injury) and opposed requiring the pharmacists immunization data be reported to the Kansas Dept. of Health & Environment (KDHE) as well as to Legislative Health Committees (for years, data has been collected by County Health Dept. and reported to KDHE. Legislators currently have access to immunization rates).

HB2619: amends current law regarding the scope of practice allowed for registered Nurse Anesthetists (RNAs). RNAs can order medications, diagnostic studies and take appropriate action during the peri-anesthetic or peri-analgesic interval.

I supported the need for these RNA authorizations in Kansas facilities where an anesthesiologist is not available.

HB2575: changes the regulatory status of naturopathic doctors with the Board of Healing Arts from registrants to licensees.

I supported the change because to the public, licensure conveys professionalism, standards and oversight.

HB2577: creates the Addictions Counselor Licensure Act to be regulated by the Behavioral Sciences Regulatory Board which will develop the rules and regulations.

I supported the request for licensure by current addiction counselors. The public benefits from knowing that professionals are licensed.

HB2589: deals with pre-financed funeral agreements including the fee/expenses imposed by the financial institutions where funds are deposited.

HB2588: increases the maximum amount that can be placed in an irrevocable pre-financed funeral agreement from $ 5000 to $ 7000.

HB2584: allows optometrists to dispense prescription medicated ophthalmic lenses for no more than 24 hours or other minimal time before the prescription is filled by a licensed pharmacist.

I supported the above 3 bills because they are straight forward advances.

SB62: is about having institutions of higher education develop tuberculosis prevention and control plans that include screening (history: health, travel, exposure) and checking high risk students for infection.

I supported this because it is always good to have a plan to deal with a highly communicable infectious agent.

All of the above bills were passed out of Health & Human Services Committee.

Aging & Long Term Care

I was responsible for scheduling a discussion with testimony on community based Mental Health Services for Older Adults. Social workers, case managers and faculty members from the University of Kansas and from Kansas State University assembled to discuss what is happening now that might help us plan for the future. Several groups have started outreach programs and assessment of services needed by seniors. The University curricula include courses in geriatrics and in mental health as well as practicum experiences. These have been funded by grants from the Hartford Foundation and also federal funds. This initial discussion was useful and must continue. I have requested that these experts list the mental health needs of adults as they age (longitudinally from 60, 70, 80 or 90 years of age; to characterize the skill s/experience of providers; and to project the costs of educating, training and delivery of services. The urgency is, in part, driven by the Baby Boomers turning 65 starting January 2011. I hope to schedule another hearing during this session and a figure out a way to keep the conversation going until a plan emerges.

Economic Development & Tourism

The committee did not meet this week.

I want to thank those of you who came to the Chat over Coffee last Saturday. I will schedule another session on the second Saturday of March at the Hy-Vee on 91st just east of Metcalf.

REMINDER: Our next forum is Saturday, February 27 at 10 a.m. at the Matt Ross Community Center in downtown Overland Park. I encourage you to attend and share your opinions. As always, you can contact me by e-mail (dfurtado08@gmail.com) or by phone (913-341-3072) or in Topeka (785-296-7677). If you want to leave a comment on the web page: www.doloresfurtado.org

Week 5 February 8 – 12, 2010 Issue 6

This week has been filled with Committee Hearings because bills heard in most committees need to be passed out of Committee in order to get on the House Calendar for consideration during the 2010 session. Although exempted Committees are not limited by this rule, the frenzy to get through as many hearings as possible appears to affect all!

Overall, I had 14 Committee meetings, several impromptu meetings and 5 House sessions. I won’t even count the total number of bills that surfaced in these meetings.

In the HOUSE

This week the house debated 13 bills. When Amendments are introduced, a separate vote is taken and recorded. Only rarely are these close votes so I will not dwell on these changes unless significant.

HB 2437 relates to charging a fee for obtaining a distinctive license plate supporting Kansas Arts.

Passed - I voted YES for fees to cover manufacturing costs.

HB 2486 concerns keeping school buses for up to 25 years that pass an annual safety inspection.

Passed - I voted YES to extending the lifetime for buses in otherwise good condition.

HB 2535 memorializing a segment of K61 Highway

Passed - I voted YES along with 120 other members.

HB 2436 memorializing a bridge on US 71 in Marshall County

Passed unanimously.

HB 2456 relates to extending the time to file a decedent’s will and affidavit.

Passed unanimously.

HB 2455 concerns trust and trustee taxes on payments and income.

Passed - I voted YES for this clarification for tax purposes.

HB 2433 related to acquisition of supplies, equipment and services by state agencies involving programs under the Secretary of Corrections.

Passed - I voted YES based on savings realized in the pilot study involving two Regent’s universities .

HB 2454 concerns extending sentences for criminals who wear ballistic resistant clothing because such hamper and endanger law enforcement officers at the scene of the crime.

Passed unanimously.

HB 2469 relates to use of sentencing guideline grids.

Passed unanimously.

Sen sub for

HB2222 concerns budget cuts for the current 2010 fiscal year. This budget reflects the allocations made by the Governor (segments needed Legislative approval). The items that were changed by the House were:

(1) Carryover balance in Legislative budget: Governor swept 2.2 million dollars; Senate restored 1 million; the House removed the 1.0 million.

(2) House authorized taking the 10 percent cut of state general fund grant award and not from Medicaid funds. Restoring the Medicaid funding by the state restored the 70 percent federal match (restored 5.5 million dollars).

(3) House introduced a 5% cut in the salary of all elected officials, district judges and a limited number of other administrative personnel. Saves 1.5 million dollars.

Passed. I voted YES in support of the cuts made by the Governor. The bill now goes to Conference (3 Representatives; 3 Senators) to negotiate their differences. We all await the April Consensus Revenue Report that will project revenues for the next 6 months. Let’s hope that further cuts will not be needed.

HB 2554 concerns the management of revitalization bonds (foster employment) and energy conservation bonds for solar or wind energy businesses by the Dept. of Commerce.

Passed - I voted YES because the changes are clarifications of the existing statute.

HB 2491 to include children’s health insurance to the list of creditable coverage plans described in the statute.

Passed - I voted YES to the listing of all coverage plans offered in Kansas

HB 2445 concerns communication between military and surrounding municipalities about land use surrounding the installation. Municipalities have final say.

Passed - I voted YES to fostering good relations through regular communications.

COMMITTEE WORK

Taxation

HCR 5028 is a resolution that creates a 3 year moratorium on State tax exemptions (property, sales, tax credits and economic development incentives) in order to initiate a policy that mandates a review of every exemption every three years. Immediately members of the Tax Committee cried out that such legislation would impair future Legislatures. Not so, all it takes is an amendment to the resolution.

This resolution proposed by the Department of Revenue tries to address the erosion of the tax base.

Sales tax exemptions have increased from 30 to 96 (3 billion to 4.2 billion $)Tax Credits have increased from 6 to 43 (410 million to 594 million $) and Property Tax exemptions 19.4 b to 23.3 billion dollars (all are annual amounts). Add the diversion of income tax revenues to provide cash incentives to promote economic development and the erosion of the tax base is most evident. The revenues continue to decline due to the combination of tax breaks and the recession. To stabilize revenues without raising taxes we must reconsider every tax exemption as a potential source of that much needed revenue. Without added revenue, cuts in expenditures will be a likely path to a balanced budget. This proposed 3 year moratorium would allow much needed policies to be developed for these expenditures and how the costs compare to services delivered by the state agencies. Individual Development Accounts, Angel Investments and Community Service Tax Credit Programs were discussed. Because transferability of tax credits is hard to track, there is a need to limit the number of transfers. Refundable tax credits are valuable in situations when the possessor of the credots has no Kansas Income Tax liability. Not all programs are capped.

HB2549 Sales Tax Exemptions are catalogued by category: specific 501(c)3 non- profit organizations; list of non profits by activity; religious organizations and event admission/membership tickets. There is no policy or criteria for giving exemptions and no sunset or review/reapplication process. The KACIR (Kansas Advisory Council on Intergovernmental Relations) recommends that criteria for exemption are needed. Organizations that provide services that otherwise would have to become a state agency service should continue to have the tax exemption.

The following bills were passed out of committee:

HB2463 Bill creates a Commission to study the Kansas Tax Structure over the next years.

HB2621 Bill concerning income taxation repealing certain tax credits and future transferability.

HB2538 Bill dramatically expands the PEAK legislation (passed in 2009) expands the definition of a quality job as one that pays a wage equal to or greater than the MEDIAN wage in the county. In addition, such businesses can also apply for IMPACT cash start up funds. An administrative fee (up to $1000) proposed by the Dept. of Commerce met with some resistance.

Health & Human Services

HB2619 concerning duties of certified nurse anesthetists to include ordering/administering of medications needed for the anesthesia plan of care. The details of such a practice plan have to applicable to hospital settings with or without the presence of an anesthesiologist. The nurse anesthetist could be responsible for managing patients during the peri-operative interval.

HB2448 concerns the administration of vaccines by pharmacists educated and trained in vaccine administration. The restrictions include administering influenza vaccine to children 6 yrs of age or older and administering any other vaccines to persons 12 yrs of age or older. Physicians will be notified immediately. Opponents to this bill were concerned about the continuity of care, reactions to vaccination, interrupting the movement to have persons have a medical home. I think the utilizing pharmacists will increase access at a reasonable cost.

HB2577 concerns the licensure of addiction counselors to include diagnosis and treatment of substance abuse disorders. The hearing is to be continued next week.

HB2642 concerns the banning of smoking in Kansas. This bill is weak. I will characterize it as a very weak alternative to the bill heard and worked in 2009. Among the options that are problematic: to opt-out the cost to the business is $1/sq. ft; restricts smoking in a private car; over-rides the more strict ordinances passed by cities and resolutions passed by counties (39 exist already).

HB2584 concerns the prescription of medicated contact lens by pharmacists. This FDA approved product will be kept by optometrists in limited supply. The long term prescription will be filled at the pharmacy.

HB2490 provides certification for medical gas installers in new offices within cities and counties. This legislation is in response to a tragic mix-up in gas administration. This law would make a medical gas installer t be certified by the county and city to do this work.

Aging & Long Term Care

The hearings this week focused on workforce issues: creating jobs for the developmentally disabled. Training and a supportive coach are essential components in sustaining employment of each individual. More and more companies are seeking to hire the disabled. NBC News reported about a Walgreen’s Distribution Center where 40 percent of employees were disabled. They also documented that efficiency at this center had increased by 20 percent. Kansas State Use law seeks business contracts that provide work for the disabled and that also builds a customer base for their products. The Community Employment Service Act (due to expire in 2014) trains employment specialists and coaches. K-TECH also participates. At Vision, Inc. half of the employees are visually impaired. Most of these employees are referred by Vocational Technology Rehabilitation from 16 states other than Kansas. The Commerce and Labor Departments collaborate in finding employment for disabled veterans. There are a number of private organizations that provide employment and a coach. The main challenges include: the availability of transportation; sufficient coach support; navigating the earning limits and limits on benefits. An unemployment rate of 75% continues even though the developmentally disabled want to have a job. Two individuals shared their success stories.

Economic Development & Tourism

SB54 concerning the creation of a capitol preservation committee to oversee the state capitol and grounds after the current renovation project is completed (July 2012). Requests to use private funds to create murals honoring Brown vs Board of Education and also the Buffalo Soldiers have been submitted. This Act would describe the members of the committee and charge to the committee to develop policies that preserve the historic status of the building and grounds.

The Department of Commerce presented an update on the use of STAR Bonds (sales tax revenues generated by the project are used to pay off the bonds). Projects are underway throughout Kansas.

Wyandotte County is using this tool for several economic development projects (It should be noted that a 3/8 cent increase in the local sales tax will be on the April 2010 ballot).

The meeting at the Price Chopper Coffee shop on Saturday, February 13 included a good discussion on the need for funds to keep supporting important services to the disabled and for the elderly. I will also note that we talked about filing income tax returns and that the $ 25 fee for filing paper returns will not proceed. Many seniors have contacted us as well as the Dept. of Revenue to express their dismay.

Based on this first successful try, I will schedule another Coffee Shop chat at the HyVee on 91st just east of Metcalf for the second Saturday in March. Hope to see you there.

The next Community Forum at the Matt Ross Community Center in downtown Overland Park is scheduled for Saturday, February 27 at 10 a.m.

As usual, I welcome your opinions and encourage you to e-mail suggestions to Dolores.Furtado@house.ks.gov or dfurtado08@gmail.com or call me at 913-341-3072 or at the office in Topeka 785-296-7677. There is much to report and many e-mails from throughout the state, so, give me a bit of time to respond. If you want to read the bills go to www.kslegislature.org and enter the bill number. I am here to help you understand what we are doing.

Stay turned for next week.

Dolores

This week was filled with Committee hearings, House debates and votes on 12 bills and an increased number of impromptu meetings. A quick meeting and a short conversation delayed my entry into the House Chamber with just enough time to hear it announced that I would lead the Pledge. I made it to the front (the well) in record time.

In the HOUSE

Consent Calendar (No debate): Passed

HB 2500 Concerning municipal insurance pools

HB 2503 Concerning inspection of correctional facilities by Secretary of Corrections

Corrections Conference Committee Report (No Debate):

HB 2195 Related to transfer of records by facsimile or electronically Passed on Feb 3; on Feb 4 motion to create new Conference Committee

Bills debated next day final action (recorded vote); if passed, bill moves to the Senate:

H sub SB48 Implementation of phase III of E-911 as agreed to by local governments and service providers. Fees adjusted to make land and cell phones rates the same. Revenue estimate $ 1.4 million.

Passed - I voted YES to continued upgrades to E-911 service.

HB2411 Add synthetic cannabanoids to controlled substance list

Passed - I voted YES to making over-the-counter purchase of these intoxicating drugs illegal

SB 298 Placement of identifying signs on capped gas and oil wells

Failed - Majority considered $ 50 cost of sign installation on each of 75,000 wells too expensive.

I voted YES for uniform identifying signage; for safety considerations (leaks in soil, water); future carbon dioxide storage in wells (monitor leaks into air).

H sub SB324 Home inspectors insurance liability to be limited to $ 2000/aggregate structure.

Failed - Majority considered liability of $2000/ aggregate too low

I voted NO - I want to keep liability at current level of $10,000.

HB 2160 Dealing with delayed payment by mortgage holder to homeowners for repairs due to natural disasters

Passed - I voted YES home repairs are costly; timely payments avoid costly penalties

HB 2082 Penalty for misrepresentations by performance artists.

Passed - I voted YES for consumer protection.

HB 2412 Releasing terminally ill inmates (with less than 30 days to live) to family

Passed - I voted YES to satisfying a compassionate request by family and signed by a physician and a member of the Parole Board.

HB 2440 Notifying victim’s family when inmate is committed to the custody of Social Rehabilitation Services

Passed - I voted YES for victim’s right to know.

HB 2476 Adds $ 5 surcharge to court docket fee for one more year; also a $100 fee for expungements in certain cases.

Passed - I voted YES to providing judiciary with funds to support staff salaries.

You can look up the individual votes by going to www.kslegislature.org to search House Journal for February 2, 3 or 4, 2010.or to read the bills enter the bill number.

COMMITTEE WORK

Taxation Introduction of bills continued this week. The following bills were heard:

HB 2521 introduced by Secretary Wagnon (Revenue) to promote electronic filing of tax returns and to impose fees for those who file paper returns ($ 25 for paper income tax returns; $ 10 for refunds issued by paper checks). The processing/review of paper returns is much more labor intensive. About 90 percent of income tax returns are filed electronically. Sales Tax returns are filed electronically or via telefile. The public response to the proposed changes focused on the $ 25 fee for individuals who file paper returns (about 144,000 returns) and the $10 fee to have a check mailed (absence of a checking account). Revenue recommends dropping the $25 for individuals and $10 for checks. Any collected fees would be credited to a Taxation Processing Fund for use in improving the tax collection system.< span style=""> Intangible Taxes are to be collected by the County Treasurer using forms electronically provided by Revenue Dept. The impetus behind these changes is cuts to the department’s budget. Electronic filing reduces personnel and cuts paper/printing costs. More aggressive collection of delinquent taxes will continue.

I am pleased with the modifications to the bill in response to public input. Realizing additional revenues through collection of delinquent taxes will bring much needed additional revenue.

HB 2520 amends an existing statute by adopting the federal definition of “willfully” as applied to sales and withholding taxes held by businesses for submission to the state. The existing state definition of willfully was interpreted by the Court of Tax Appeals as more restrictive than the federal definition. The intent in the failure to remit that money held in trust by the business is at issue.

HB 2519 amends an existing statute to bring Kansas into conformity with procedures adopted by the multi-state compact regarding collection of streamline sales and use taxes.. The changes clarify definitions of junk mail, direct mail; good faith transactions, remote sales etc. Kansas, as a compact member, must conform to the agreement.

HB 2465 Technical amendments needed to correct references to refundable and non-refundable tax credits in an existing statute.

Bill passed favorable out of committee.

HB2464 Revenue Dept. request to charge a $10 administrative fee for creating an installment payment plan for delinquent taxpayers (tax, penalties and interest). What seemed a reasonable request turned into a discussion that co-mingled past delinquent taxes, current unemployment and future tax delinquency. The motion to table ensued and the bill is now dead. (In my opinion, this bill is not worthy of such a prolonged discussion.)

HB 2538 expands the Promoting Employment Across Kansas (PEAK) bill passed in 2009. The GM plant expansion in Fairfax utilized PEAK to realize a cash incentive associated with creating 950 quality jobs (for every job that pays more than the average salary in Wyandotte County, 95% of the employee’s withholding taxes stay with the company). The new bill defines a quality job as one that pays the median (not average) wages, which in every county is several thousands of dollars less than the average. In addition, companies would be able to cluster new employees such that the median salary of the cluster exceeds the median to realize the benefit. A new business includes expansion of existing businesses and in a merger acquisition when the new owner benefits from the program for employee retention. Bene fits to the company can last up to 10 years. Eligibility is determined by the Secretary of Commerce. In the past year, companies that sought up front money through the IMPACT program (up front cash) could not apply for the PEAK program. This bill allows companies to enroll in both. The proponents (Economic Development groups) from throughout the state support this bill because of the added flexibility as well as enhanced competitive advantages it gives Kansas. Opposition came from Secretary of Revenue arguing it was premature with only 7 months of PEAK to judge the effectiveness between cash incentives for new job creation and the diversion of much needed revenues for the state.

Health & Human Services: The Committee heard testimony on the following 4 bills:

SB 62: calls for post-secondary educational institutions to develop policies for screening students for tuberculosis. Initial risk assessment is a history of exposure/infection provided by students. High risk students will be evaluated for infection, which, if active, will be treated. All costs are covered by student insurance plans.

HB2220 deals with licensure of child care facilities. Currently licenses are issued for 1 year and renewed annually. This bill would change the licensure interval to 3 years. Annual inspections for safety, quality of environment and educational programs will continue. There is no increase in the annual licensure fees.

HB2223 deals with registered child care facilities. This bill would eliminate the “registered” and require licensure. Currently, the registration process consists of an application ($ 5.00) and an initial safety inspection. The only mechanism for a follow-up inspection is after the filing of a complaint. I support the request because it is important to have annual inspections for quality assurance.

SB 262 deals with curricular guidelines and certification tests for personnel in Emergency Medical Services to meet national standards. The EMS Board recommends these changes for classification in 4 Attendant levels. Personnel will take the required courses to be offered throughout the state. This transition would occur starting Jan 1, 2011 through Dec. 31, 2013. Testimony in support of this standard included educators from both Hutchinson and Barton County Community Colleges and local directors who expressed that national standards help recruitment and retention. Smaller units that use volunteers testified in support of additional training.

Aging & Long Term Care

Hearings were held on the status of the Ombudsman’s office now under the direction of Belinda Vierthaler. This office, established in 1980, handles complaints regarding nursing home care. There are 7 satellite offices located throughout the state. Her current focus is on increasing visibility; recruiting volunteers and expanding the oversight role of this office. Younger persons willing to undergo 30 hours of training would be ideal volunteers. The budget cuts have resulted in the elimination of the volunteer co-coordinator position. Education of nursing home management and staff about prevention of involuntary discharges (for behavioral not financial reasons) is much needed.

In Kansas there is also a need for an Ombudsman to handle complaints from community based long term care homes. Abuses are currently investigated by Adult Protection Services. The creation of an advisory committee and/or a Legislative Committee might be a way to attain such an Ombudsman program.. Now is the time to advance public policies that address the safety of these at-risk Kansans (the frail elderly and the developmentally disabled). These needs should not being held hostage to today’s revenue shortfall.

Economic Development & Tourism Kevin Carr, interim CEO of K-TECH, described efforts (grants, business plan development and general advice) that support non-bioscience technology endeavors with business potential.

The committee heard four bills:

HB 2434 would convert the state managed Prairie Spirit trail (51 mile hiking/biking train from Ottawa to Garnett) to a state park. Advantages include marketing, eligibility for federal funding as well as potential economic development along the trail.

HB 2551, 2553, 2554 were requests from the Commerce Department for authorizing technical changes regarding bond issuance for Enterprise Zones and certain facilities, waivers and code changes.

All four bill passed out of committee.

As usual, I welcome your opinions and encourage you to e-mail suggestions to (dolores.furtado@house.ks.gov or dfurtado08@gmail.com or call 913-341-3972 (H) and 785-296-7677. There is much to report. If you want to read the bill go to www.kslegislature.org .

REMINDER: I will be at the Price Chopper at 87th & Antioch at 12:30 to 2:30 on Saturday, February 13 in the corner coffee shop area. Come to talk or listen. I look forward to seeing you there.

During this third week we have had recorded votes and more hearings as described below. I welcome your thoughts on any of the topics. You can contact me through e-mail (dfurtado08@gmail.com) or by calling me 785-296-7677 (O) or 913-341-3072 (H).

In the HOUSE

The first bill of the 2010 session, HB 2414, was on the consent agenda (no debate). Passage of this bill authorizes the State Board of Regents, on behalf of Fort Hays State University, to sell 120 acres to the city of Hays for a sports complex and golf course. Revenue will be credited to a Restricted Fee Fund for use by the University Farm. The vote passed 117-0 and now goes to the Senate.

Committee work:

Taxation: Testimony was presented by the opponents to the Governor’s proposal to increase the sales tax by 1 percent for three years. Loss of jobs in the private and public sectors, loss of car sales, increased cost of goods and services were described as negative impacts to an increase. At the conclusion of the session, the Committee Chairman announced that we would be given an opportunity on Tuesday to question the proponents (who testified 5 days previously). The questions from Committee members focused the Local Option Budget (LOB); the cost of performance evaluations (No Child Left Behind); exempting groceries (would reduce revenue by 268 million dollars); declining support of veterans (armory closures) and declines in the appraised value of property (reduced income from state and local pro perty taxes designated for K-12). My question was regarding the projected Medicaid costs in 2011. Currently the state pays 30% to get a 70% federal match. This will last for 6 months when the ratio will revert to a 40/60 state/federal match. To balance the 2010 budget the Governor cut Medicaid by 10 percent, however, full funding is intended for the 2011 budget (the state’s share amounting to 78 million dollars). I wanted to keep the sales tax as a potential source for funding (a cent or fraction thereof to be reviewed at the end of the year for possible renewal). I believe the funding situation that currently exists has created uncertainty about jobs and anxiety about spending. This combination slows down recovery.

The hearing was closed and the Committee proceeded to work the bill. The motion was made to report unfavorably on HB 2475, that is, to report to the House that the bill was not passed by the Taxation Committee. A substitute motion was made to table the bill arguing that it was premature to eliminate any revenue source until we had reviewed all potential sources of revenue and until the April revenue consensus report identifies just how much revenue is needed to balance the budget. The substitute motion FAILED by a 12-9 (party line vote). I voted NO because I wanted to retain the sales tax as an option. Just how much will be needed to stabilize funding of social services and education is unknown at this time. Many of you have written me supporting the sales tax increase to fund social services and education.

Discussion reverted to the original motion. I requested additional data to compare the impact of the 2000-09 tax cuts on job creation in the private and public, a calculation similar to that used to project job losses that follow a 1 percent increase in sales tax. Legislative Research responded that it would take time to process the data in the simulation model and compare to actual numbers but they will try.

The original motion PASSED by a 12-7 vote. I ABSTAINED because I felt the data I requested was essential to making an informed decision. The committee report was introduced in the House at 11 a.m..

HB 2463 introduced by a member of the Tax Committee was heard on January 28. This bill creates a Commission to study simplification of the Kansas tax code and to study if broadening the taxpayer base would lead to a decrease and/or elimination of existing taxes. It is proposed that the Commission be made up of 11 Legislators (6 from the House and 5 from the Senate); with 5 meetings a year for two years at different sites in Kansas (one in each of the Congressional district ending again in Topeka). The fiscal note: $ 37,945.

The Kansas Tax Code is reviewed about every 10 years or so. The timing is o.k., however, I would like your opinion on the proposed composition of the Commission; the scheduling of hearings across the state (two day meetings) and the cost (increased spending). Tell me what you think about this proposal.

Aging & Long Term Care: Hearings continued on the impact of the 10 percent cut in Medicaid. This week was focused on services to the Physically Disabled (Brain traumas). We heard: (1) a waiting list has started because of the freeze in accepting new clients who need early intervention services; (2) staff reductions has led to a decline in the level of care (staff are considered the infrastructure for providing integrated services); (3) Nursing homes beds are unavailable for the physically disabled on Medicaid due to closure of nursing homes; the cutting back on staff; increased case loads which, in turn, affects quality of care for all. Anyone can suddenly become physically disabled due to accidents, strokes etc. so this situation should be of interest to all.

Future workforce needs: Plans to deal with projected workforce shortages as early as 2016 are on hold. Based on the shifting demographics, it is anticipated that by 2050 there will be a 75% increase in 50-64 year olds; a 100% increase in 75-84 year olds and a 400% increase in people over 85 year olds. We need to support the development of a workforce plan to deal with this shift.

The Committee introduced two bills (the deadline to do so is Monday, February 1): (1) Elder Abuse and (2) Geriatric Mental Health. The Attorney General has introduced the bill (SB 45) that makes willful exploitation of the Power of Attorney a crime. Geriatric Mental Health will be incorporated into HB 2057 carried over from the 2009 session. While this bill calls for a 1.8 million dollar fiscal note, I think we need to begin phasing in the program. Preparing a workforce plan that includes education and training in geriatric mental health should proceed the funding for delivery of community based services.

Economic Development & Tourism: This week we heard from the Department of Commerce. Presentations were made by Acting Secretary Thornton and other program directors. Workforce assistance is available on-line (job postings exceed 13,000) centers throughout the state offer individual assistance and technical and community colleges offer training opportunities. The Summer Youth program (federally funded) raises awareness about opportunities in technical colleges for training in green construction and green energy jobs that will emerge in the near future. The Commerce department markets Kansas products abroad. The department shared a video that describes attractions within Kansas. Film makers (movies, television, documentaries) are sought to come to Kansas. Another program focuses on rural Kansas helping market events in communities. The Department of Commerce remains very much involved in getting businesses to come to Kansas, promoting economic development throughout the state and in attracting individuals to experience Kansas.

The Community Forum on Saturday, January 30 attracted about 30 constituents who were eager to discuss revenues, taxes and the impact of budget cuts on K-12 education and services for the disabled. The next forum is on the last Saturday in February.

I am honored to be your representative. I will meet at the Price Chopper on 87th and Antioch, on Saturday February 13 from 12:30 to 2:30. Do drop by to talk or to listen. To read previous issues of my newsletter, go to www.doloresfurtado.org and click news.