Jackson Free Press

HOUSEKEEPING - A WEEKLY SUMMARY

REPORT FOR THE WEEK ENDING MARCH 2, 2007

JACKSON, MISSISSIPPI

The announcement that Japanese auto giant Toyota will build a manufacturing plant in Northeast Mississippi clearly dominated talk in the State Capitol during the ninth week of the 2007 Legislature.

Once the announcement was made that we had secured the plant, the Legislature went to work on the incentives package. After consideration by the House Ways and Means Committee, the full House and Senate then voted on Friday to approve the $293.9 million package. This means that work on the plant site will begin almost immediately.

The new plant, to be located just northwest of Tupelo where Lee, Pontotoc and Union counties join on the industrial site known as Wellspring, will have the capacity to build 150,000 vehicles annually of Toyota's popular Highlander sport utility vehicle. Production is scheduled to begin by 2010. The new plant represents a $1.3 billion investment by Toyota and is expected to create approximately 2,000 new jobs for the region and indirectly create work for many more. Operations at the plant will include stamping, body weld, plastics, paint, and assembly.

Toyota is pressing General Motors to become the world's largest automaker.

Toyota manufacturing Executive Vice President Ray Tanguay pointed out several factors that led to Toyota's site selection decision. "On my visits to Northern Mississippi, I have talked with area companies and observed their workforce," said Tanguay. "What I observed were people who are educated, ethical and friendly with a strong work ethic—a perfect match for the Toyota Way." He added that the area's existing companies had high praise for the workforce. "They were definitely the best sales people."

Speaker of the House Billy McCoy, who attended the announcement in Tupelo, called Tuesday, Feb. 27 "a great day in Mississippi. I wish all of you could have heard the way the Toyota leaders talked about the things that the Legislature has worked hard for over the last 25 years, like education, economic development and transportation. They talked well of the region and the entire state."

Outline of Toyota Mississippi
Product: Toyota Highlander
Production capacity: 150,000 units/year
Site area: 1,700 acres
Investment: $1.3 billion
Start of production: By 2010
Employment: 2,000

Toyota (NYSE:TM) established operations in North America in 1957. In 2009, Toyota will have the annual capacity to build approximately 2.16 million cars and trucks, 1.45 million engines and 600,000 automatic transmissions in 15 plants across North America. There are more than 1,700 Toyota, Lexus and Scion dealerships in North America, which sell more than 2.8 million vehicles a year. Toyota directly employs more than 41,000 people in North America. With the announcement, Toyota's investment in North America is valued at nearly $19 billion.

Toyota also has pledged to donate $50 million to public schools in Pontotoc, Lee and Union counties over 10 years to help ensure a long-term viable workforce

The House of Representatives passed a bill in 2006 to provide state matching funds to help purchase the Wellspring industrial site. However, the bill failed in the Senate.

Other than the Toyota deal, we in the House of Representatives worked mostly during the week on general bills that had originated in the Senate. We met a deadline of Feb. 27 for our committees to report on those measures and then we began considering them in the full House. On many of those bills, we performed what is known as a "strike-all amendment," meaning we inserted language that the House had passed in an earlier bill.

Included among the bills we passed on the House floor this week were:

> SB 2323 to give teachers a 3 percent pay raise, and teacher assistants a $1,000 raise this year and a $500 raise next year.

> SB 3036 making it easier for victims of domestic violence to get a protective court order.

> SB 2863 setting up a task force to examine the state's trauma care emergency program.

> SB 2962 requiring the Diamondhead Water and Sewer District in Hancock County to request approval of any rate or fee charges to be approved by the state Public Service Commission before going into effect. The group has met criticism recently with its extremely high water "tapping fees."

> SB 2760 providing legal due process for city law enforcement officers who are given notice of suspension or termination from their position.

> SB 2337 providing a state income tax credit for buying private insurance to cover long-term care insurance.

> SB 2764 reorganizing the State Board of Health, with a nine-member board to be appointed. This issue will be decided in conference committee negotiations between the House and Senate, as will many of the issues that we have faced during the session.

The session is scheduled to end on April 1.

HOUSEKEEPING - A WEEKLY SUMMARY

REPORT FOR THE WEEK ENDING MARCH 9, 2007

JACKSON, MISSISSIPPI

The end of the 2007 legislative session is still three weeks away but the light at the end of the proverbial tunnel is in sight after each chamber completed floor work on the other's general bills during the 10th week.

March 7 was the deadline for the first floor action on the "general bills," which are measures that do not involve either the raising of state revenues or the appropriation of funds. We will soon begin finalizing those "money issues" in the next few days, leading up to final adoption of the state's budget for fiscal year 2008 beginning July 1, 2007.

A sure sign the session is nearing an end is that our "legislative calendar," which is a daily publication showing the bills we will be considering on the House floor, is now filled with "concurrence" or "nonconcurrence" items, rather than bills we are seeing for the first time. This means that if we "concur" with the changes made in a bill by the opposite chamber, that bill then goes to the governor for his signature of approval or, in some cases, his veto of disapproval.

If we "do not concur" on a certain bill, it goes to conference negotiation between the House and Senate to see if the differences can be worked out before the session ends. If so, we'll vote on it again.

This week, the House of Representatives was mostly handling general bills and some money bills that originated in the State Senate. Here is a sampling of what we passed:

> SB 2838 to require that used car dealers attend an 8-hour licensing seminar before they can be awarded an initial license to do business. This was described as a "consumer friendly" measure. All existing used car dealers would be "grandfathered in" meaning they are exempt.

> SB 2825 to tighten restrictions on sexual offenders in school zones. They won't be able to loiter within 1,500 feet of a school while students under 18 are present, they must notify school officials of their presence and whereabouts at school events and can't be near children.

> SB 2567 creating a task force to study whether elections for justice court judges should be held in a non-partisan manner, meaning without party primaries.

> SB 2783 directing the state wildlife commission to study deer management zones, including bag limits, antler restrictions and supplemental feeding programs.

> SB 2688 increasing the death benefit to the family of a law officer or fireman killed in the line of duty, whether intentionally or accidentally, to $65,000.

> SB 2818 directing school districts to work with juvenile detention center officials to provide education services to students placed in those centers.

> SB 2056 prohibiting a person from seeking election to more than one office on the same day. We have one statewide candidate this year who is seeking up to 10 offices.

> SB 2897 limiting government contracts to only companies hiring legal citizens or legal aliens.

> SB 2647 allowing 18-year-olds to become notary publics.

> SB 2345 requiring the State Board of Education to develop a pilot project aimed at redesigning high schools to function not only as normal education entities but as workforce development centers for students who desire to enter the workforce immediately upon graduation.

After completing work on the Senate-originated general bills, the House began taking up some of the appropriation and revenue bills that will be part of the FY 2008 budget.

The House performed a "strike-all" amendment on the appropriation bills to send them into conference with the Senate. These spending matters will be decided one weekend before the session ends when most of the final FY budget decisions will be made. One major provision to be finalized is the pay raise for state employees. The House has proposed $1,500 for state workers and the Senate $1,000 or 3 percent, whichever is greater. Both chambers have proposed 3 percent across-the-board raises for school teachers. The House has proposed a $1,000 raise for assistant teachers and the Senate proposed $500. State troopers are due a $3,000 pay raise and $5 million has been added for a new "trooper school."

We also approved the conference report on HB 1471 and SB 2496 restoring emergency transportation services for a group of low-income dialysis patients. All this bill lacks now is Gov. Barbour's signature.

The House also passed resolutions this week commending the lives and service of two Mississippians who have died in the war in Iraq—Sgt. Terrence Dunn and Sgt. Carl Seigart.

HOUSEKEEPING - A WEEKLY SUMMARY

REPORT FOR THE WEEK ENDING MARCH 16, 2007

JACKSON, MISSISSIPPI

The lack of action by the Senate on consideration of a grocery tax reduction and a tobacco tax increase commanded the Capitol's attention during week 11 of the 2007 Legislature. Two more weeks remain before the 90-day session enters the record books.

Despite repeated calls from the public and media—and several polls showing that a wide majority of Mississippians favor such action—the Senate this week let die a proposal by the House of Representatives in HB 247 to cut the sales tax rate on groceries in half and to raise cigarette taxes.

In fact, the House had passed the measure in mid-February by such a large margin that it would have withstood a threatened veto by Gov. Barbour. He had vetoed a similar proposal last year that originated in the Senate, which this year failed to even consider it in committee. The Senate was under a deadline of March 13 for original floor action on the House bill. It didn't happen. The bill was ignored.

On the House floor this week, we send dozens of bills into conference committee negotiation with the Senate, including general bills that had originated in the House but were changed in some manner by the Senate. If our House members agreed with the changes, the bill was sent on to the governor for his signature and if not, the bills were put into conference between three House members and three senators.

Included among the bills going to conference are: HB 202 creating the offense of attempted murder; HB 300 restricting the use of eminent domain; HB 528 making technical changes to the state's Medicaid law; HB 567 to establish a state burn treatment center; HB 351 allowing toll roads in the state; HB 1379 protecting state citizens' jobs from illegal immigrants; and HB 423 for deer hunting over grain. Already in conference were HB 1500 and SB 3050, both dealing with the state's "wind pool" insurance program. Efforts are being made to strengthen it to help the Coast rebuild in the aftermath of Katrina.

Among the bills going to the governor are: HB 1267 creating a task force to study autism; HB 1439 providing freedom of choice on pharmacists for long-term facility patients; HB 1047 allowing cities to tow vehicles for failure to pay fines or warrants; HB 844 governing vehicle protection products; and HB 1076 exempting active duty military personnel from hunting and fishing licenses.

Also headed for conference are the more than 100 state agency appropriation bills, which will comprise the state's fiscal year 2008 budget beginning July 1.

The Joint Legislative Budget Committee met during the week to officially raise the estimate of state revenues for the current fiscal year and the next one beginning July 1. Projections are for state General Fund revenues of $4.671 billion in the current FY 2007 and for $4.941 billion in FY 2008. The state economist said that after a period of strong revenue growth following Hurricane Katrina, we can expect a smaller growth rate in at least the near future. Gaming taxes have come back strong, but still represent only 4 percent of state General Fund revenues.

The House passed a resolution this week in HC 88 urging the federal Centers for Medicare and Medicaid Services to stop their efforts to change the rules regarding Medicaid financing to the detriment of the hospitals and other health care businesses and professionals. Recent changes in federal Medicaid law could cost the state $90 million annually, we were told in passing the resolution.

We also passed SB 3104 raising $5 million through bonds to rehabilitate high hazard dams around the state. It was noted there are dozens of dams in the state that if breached could cause widespread damage to whole communities. Final details will be negotiated in conference.

Mississippi's dwindling number of dairy farms has been a major concern, so this week we passed SB 3199 to provide funds to reimburse milk producers for fuel transportation and other costs associated in the delivery of milk. The state has lost 75 percent of its dairy farms since 1980.

The so-called "big bond bill" providing funds for improvements to facilities occupied by state agencies and our universities and colleges and to create a statewide wireless communications system is in conference in HB 1743 and SB 3201.

A special treat for House members came on Monday when renowned actor Hal Holbrook made an appearance in the House chamber. He was in Jackson to portray author and humorist Mark Twain in a play he's been performing for half a century. Holbrook noted the many changes made in Mississippi's social and racial policies over the years. He had performed in Meridian's renovated opera house earlier and said it was one of the top two theatres he had ever seen, the other being located in Georgia.