May 22, 2012

Senate votes to make deadbeat renters criminals (AUDIO)

The state senate says renters who refuse to pay and refuse to move out should be considered criminals.       Landlords lose a lot of money waiting for deadbeat renters to get out of their properties including the costs of a lawyer to file ouster proceedings in court.  But even after the eviction order is issues, some renters will not leave.

Senator Kevin Engler of Farmington has won senate approval of his plan to put deadbeats in jail for as much as six months and fine them as much as $500. 

Engler says many people think landlords are rich, but many of them are small business people who are put into financial jeopardy when renters don’t leave and months without rent payments while the landlord runs up legal bills trying to get them out. He says the renters are “essentially stealing” from the landlord by staying and not paying.

He says his bill  puts some teeth in the law, although they’re just baby teeth. The bill has been sent to the House. Five weeks are left in the session for the bill to be sent to the governor.

AUDIO: Senate debate 22:06

Governor Nixon and House leaders discuss workplace issue legislation, budget

Governor Jay Nixon has met with leadership in the Missouri House of Representatives to discuss legislative priorities. Several Republicans have said it is the first time they can remember a Governor coming to a meeting of House leadership, and he says it was a productive get-together.

(from left to right) Majority Floor Leader Tim Jones, House Speaker Steven Tilley and Governor Jay Nixon

Republicans in both chambers have said they want to know what the Governor will sign in legislation dealing with workplace issues. Majority Floor Leader Tim Jones (R-Eureka) says Nixon spoke in general terms about those issues, but he feels he has an idea of what the Governor is thinking. “He believes there’s room to come up with a compromise on the second injury fund issue and the co-employee liability issue. I also, though, got the sense on the contrary point that the occupational disease issue to the Governor may be a road block.”

Jones says the House and Senate want all three issues, and a bill passed by the House on Wednesday includes all three.

He says the conversation with the Governor gives him new hope for it. “I think in order for him to sign that bill, that is a vehicle. The Senate now is going to have to do so some hard work in negotiating with the Governor’s office to find the specific language that this Governor will sign.”

House Speaker Steven Tilley (R-Perryville) adds, “My take from the conversation is that the Governor’s willing to work with us and we hope by the end of session we’ll have something that we can pass through both bodies and the Governor will sign.”

The two sides spent a lot of time discussing the budget, which has passed out of the House and is now being worked on by the Senate.

Jones says clearly, the two see differently how it was approached.

“You know the Governor has a different take on working to reduce quasi-entitlement programs. The blind issue came up, also on the issue of removing the “E’s” from different parts of the budget.”

Jones sums up the differences as philosophical, not partisan. “It’s more of a debate between the role and power of the legislature, whose duty it is to pass a budget, and the role and the power of the executive, who has a constitutional duty to then implement that budget.”

Other topics discussed were economic development and the recovery in Joplin from an EF-5 tornado last May. Jones says the meeting lasted until after the House had started its session for the day. Jones says he hopes to see Nixon back at future leadership sessions.

The Governor’s Office declined to speak about the meeting.

New investigaiton sought of state workers’ comp pool (AUDIO)

The state’s biggest worker’s compensation insurance company is drawing scrutiny from state legislators who wonder if it should be sold. 

The legislature established Missouri Employer’s Mutual in 1993 when many small businesses could not afford workers comp insurance. and when competition was limited. The state put up five million dollars  to establish the company. The majority of its board is appointed by the governor. But it operates as an independent non-profit company and controls sixteen percent of the Missouri worker’s comp market. 

Senator Scott Rupp of St. Charles, who has sponsored the bill calling for the new committee, says MEM is a complicated business with a unique status as a government-formed independent agency.

Senator Jim Lembke’s special committee investigated the company last year. He says it’s a mutual company that has never behaved as one

MEM did not pay a dividend until this year–two million dollars.  Senator Eric Schmitt, who favors the sale of the company, says it has $163 million in reserves at a time when the industry standard is $39 million.  He says MEM has outlived its usefulness.

The senate wants a new committee to study whether MEM should be privatized and sold, and what the state’s asking price should be. It has asked to approve the committee’s formation, too.

memsale 41:24

 

 

No Floods possible along Missouri River this year

The longer the warm, dry winter and spring continue in the North and Northwest, the better things look for no floods on the Missouri River. The Corps of Engineerr says runoff from rains and snowmelt into upstream reservoirs during March was below normal for the first time in 16 months. The Corps says it has more than 16 million acre-feet of storage available in its reservoirs. It has started releasing some water into the lower Missouri River to maintain full navigation for shippers.

New business tax cut proposed (AUDIO)

While some legislators meeting in capitol offices trying to find a way to plug a $500 million hole in the state budget, a state senator is trying to make a case for a $100-200-million  tax cut.

The legislature cut the corporate franchise tax last year, a five-year phase-out that will mean 87-million fewer dollars to finance state programs and services. Now Kirkwood Senator Eric Schmitt wants to phase in a 25 percent small business income tax deduction..

That brings Senator Joe Keaveny out of his chair to ask, “That’s going to cut another $200 million out of the budget?”   “If you assume no growth,” responds Schmitt, who says the cut is actually smaller, perhaps by as much as one-half or more. …

Schmitt says business would expand and hire more people if they could keep more of their money.  “Everything we do makes Missouri more competitive,” he says.             

But Keaveny wonders how much more competitive Missouri can get—and at whose expense, nothing Missouri already is rated in some studies in the top ten states in the country in business competitiveness.. “In order to make that next step up, how much is it going to cost?  How much is $200 million gong to get us,” he asks.  

Schmitt has set his bill aside to try to work out some things with another senator who has his doubts, too.

AUDIO: debate 20:46