The end of the 2005 legislative session is approaching quickly.  I have spent much of my week in conference committee negotiations on open records, ethics, and elections bills.  We have made great strides on reform, especially in the area of ethics. 

Education Finance

The House and Senate conference committee on school finance reached an agreement that includes $116.9 million in new money for next year.  It is always difficult to compromise and to vote for a negotiated plan, but this plan addresses the problems as set out by the Supreme Court.  The plan includes an additional $17.7 million for special education, $26 million for at-risk, and $11 million for bilingual students. 

The plan is also a major improvement over the Governor’s plan, which would have called for a large tax increase in Miami County and throughout the state.  The proposal passed provides for nearly the same funding as the Governor’s plan, but does so without any tax increase.    

According to projections by the Kansas Legislative Research Department, Louisburg will receive an additional $279,923, Osawatomie an additional $300,050, Paola an additional $424,737, and Spring Hill an additional $297,366.  The bill moves the base state aid per pupil (BSAPP) to $4,107.  The bill also includes language that will allow districts with a high cost of living to raise additional funds to increase teacher salaries, allowing districts such as Louisburg and Spring Hill, the means to retain quality teachers.

Additional Funding Breakdown by District

District             BSAPP            At Risk             Special Ed.                   Total

Louisburg         198,076           21,532             60,324                         279,932

Osawatamie     172,040           86,551             41,459                         300,050

Paola                260,452           70,085             94,200                         424,737

Spring Hill        206,506           27,865             62,995                         297,366

Tort Reform

According to the Institute for Legal Reform, the legal climate in Kansas has slipped from 16^th to 9^th in the past year.  Kansas leads the country is loss of non-farm jobs.  The U.S. Bureau of Labor Statistics states that Kansas has recently lost 12,600 non-farm payroll jobs.

Over the past year, mass layoffs in Kansas have doubled.  Furthermore, 3,000 unemployment insurance claims were reported in January alone compared with less than 1,000 claims a year earlier.

To help combat the problem, the House passed Senate Bill 102, a tort reform measure that addresses the issue of collateral source.  The collateral source rule of the common law says that evidence may not be admitted at trial to show that plaintiff’s losses have been compensated from other sources, such as insurance, or workers compensation.  Essentially, a plaintiff can now recover damages twice.  As a result, 35% of total payments to medical malpractice claimants are for expenses already paid from other sources.

If the Senate passes SB 102 and receives the Governor’s signature, Kansas will join the ranks of the twenty-five states that have modified or abolished the collateral source rule.

Adoption Task Force

The House passed HB 2394, which creates a task force charged with providing statewide policy recommendations encouraging adoption.  The task force will consider several factors when determining the effectiveness of the current adoption tax credit.

The task force will determine if the current tax credit adequately offsets adoption expenses incurred by adoptive parents.  If will also determine and examine the issues faced by birth parents weighing options when confronting an unintended pregnancy.

The task force will be required to provide a report outlining public policy recommendations that encourage adoption to the Kansas Legislature by December 1, 2005.

News from Senator Terry Bruce

Eluding a Police Officer

House Bill 2180 amends Kansas law to include fleeing or attempting to elude a police officer as an inherently dangerous felony.  This bill is intended to impose stronger, appropriate punishments for individuals who cause the death of another person while attempting to flee or elude a law enforcement officer.  Two separate punishment levels are included in the bill.  The worst offenders who engage in the most hazardous conduct could receive life imprisonment.

By adding attempting to elude a police officer to the list of inherently dangerous felonies, proponents suggest that it will protect drivers and pedestrians.  Secondly, they feel this measure will deter offenders from fleeing, decreasing public safety hazards.  This bill passed the Senate with a vote of 38-1 and was enrolled and presented to the Governor for signature. 

CHDO Tax Exemption

House Bill 2082 passed the Senate 37-0 and will now be reviewed by a conference committee consisting of legislators from both the Senate and the House.  The main effort is this bill is to provide a property tax exemption beginning in 2005 fro properties, used for housing of elderly, disabled, or low-income persons.  A tax exemption would be granted only is the property is solely owned and operated by not-for-profit community housing development organizations recognized by the Kansas Housing Resources Corporation.

In order to qualify for the exemption, the property also would be required to be low-cost housing offered at or below fair-market rent.  The facility must also meet housing quality standards promulgated by the U.S. Department of Housing and Urban Development.

Workers Compensation Act

HB 2141 strengthens the Workers Compensation Act by establishing guidelines for the determination of whether adequate burden of proof requirements are met.  This process determines whether the employee used, had possession of, or was impaired by alcohol or drugs while working.  Kansas Workers Compensation State law denies compensation when an injury, disability, or death was contributed to by the employee’s use or consumption of alcohol or drugs. 

Our workers compensation system is a framework negotiated between employers and employees.  Employers pay 100% of health care costs for all work place injuries unless an employee is intoxicated or impaired by drugs, and that impairment contributes to the accident.  Over-the-counter medication and prescription drugs do not disqualify an employee.  The drug testing standards mirror federal regulations to ensure false positives cannot occur from harmless activities like eating poppy seed muffins.  Safeguards in the law make sure someone who deserves workers compensation benefits receives them.

Essentially, HB 2141 clarifies the probable cause standard an employer must meet in order to admit test that prove the injured employee was intoxicated of under the influence of illegal drugs.  The only people inconvenienced by this bill are people injured on the job while drinking or using illegal narcotics.  The people this bill protects are the clean and sober Kansas workers and businesses who pay for unjust claims.

Kansas Incorporated

Substitute for SB 260 eliminates Kansas Inc. and redirects their assigned duties.  The evaluative functions would be turned over to either the Legislative Post Audit or the Kansas Department of Revenue.  The Kansas Department of Commerce would assume the role of addressing policy issues.  Each project pursued by a city shall be reported exclusively to the Secretary of Commerce annually, as opposed to Kansas Inc.  The Secretary will compile the information and submit an annual report to the governor and the legislature.

Opponents of the measure suggest Kansas Inc. lacked appropriate funding to execute its assigned duties.  As such, the organization should receive more funding rather than be eliminated.  Proponents claim the agency did not comply with all of the statutory requirements of the agency and the money spent on it should go elsewhere.  The bill also delineates that an evaluation shall be done in 2006 and every four years thereafter by the division of post audit.  This bill passed the Senate with a vote of 31-7 and was referred to the House Committee on Economic Development for their consideration.

Health Savings Accounts

Substitute for SB 257 passed the Senate 39-0 and has been referred to the House Committee on Taxation for their review.  This bill, part of the Republican Party Health Plan, would amend four statutes that are a part of an act under which refundable tax credits may be claimed by certain small employers who contribute to health benefit plans made available to eligible employees.  Basically, the proposed amendments change the schedule of tax credits and add health savings accounts to the employer contributions that qualify for a tax credit.

A health savings account is a pre-tax account used to pay health care costs.  Participants enroll in a relatively inexpensive high-deductible insurance plan and open an account to cover current and future medical expenses.  All the money deposited, as well as the earnings, is tax-deferred and rolls over to the next year if left unused.  The money is then available to cover qualified medical expenses void of taxes. 

Substitute for SB 257 provides clarification by adding a definition of health savings account.  The definition states that a health savings account is a trust created or organized as an account exclusively for the purpose of paying the qualified medical expenses of the account beneficiary.  Furthermore, the written governing instrument creating the trust must meet the requirements specified by the Medicare, Prescription Drug, and Improvement and Modernization Act of 2003.

It is always a pleasure to see friendly faces at the Capitol, so please let me know if you are in the area and would like to stop by.  Again, thank you for your continued support and if you have any questions or concerns, please do not hesitate to contact me.