Posts for January 29, 2010

ECONOMIC DEVELOPMENT INCENTIVES AMENDMENTS ON FAST TRACK

January 29, 2010 – “UMA on the Hill”

It is not usual for a bill to pass the house of origin and be approved by the opposite house in the first week of a general session. But, that is what Representative Wallis has accomplished this week with his HB-24 Economic Development Incentive Act Amendments.

UMA testified in favor of the bill earlier this week in the House that improves incentives for existing businesses in Utah by waiving the new employee requirements and focusing on investments in new plant. UMA again this afternoon testified in favor of the bill as a starting place for addressing the needs of existing manufacturers to have help to expand. It focuses on the Aerospace industry for starters and establishes a $10 million threshold.

UMA president Tom Bingham in supporting the bill in committee said, “This is a good start to addressing the needs of businesses who got us here and who have carried this economy for many years. It is not enough to incent out of state entities to come to Utah. This measure starts to provide a level playing field for existing businesses,” he said.

Bingham also told the committee that we need to much more to help keep businesses in Utah when they are being consolidated from a national corporate headquarters and they need to compete with other areas of the country to bring more of a parent company to Utah rather than take Utah’s portion somewhere else.

The bill was reported out of committee favorably to the Senate calendar for consideration next week.

Week one is in the can. We will pick it up on Monday after the UMA Legislative Committee meets to consider new additions to the list of bills.

HOUSE COMMITTEE SAYS NO TO NATIONALIZING WORKERS COMPENSATION SYSTEM

January 29, 2010 – “UMA on the Hill”

Representative Mike Morley presented a resolution HJR-10, Joint Resolution Opposing the Establishment of a federal Commission of State Workers Compensation Laws, to the House Business Labor Committee this morning that opposes federalizing workers compensation programs. A bill in Congress sponsored by a California Congressman would move the state’s workers compensation programs to a nationalized program.

The obvious motivation for such a move is that bankrupt programs, like that in California, would benefit by combining with programs, like Utah’s that are fiscally sound, creating a national bailout.

Before the bill was passed unanimously to the full House for a vote, UMA president Tom Bingham testified in favor of the resolution on behalf of UMA and as a member of the Workers Compensation Advisory Council. He told the committee, “Utah’s workers compensation program is actuarially sound and well run. It makes no sense to turn that program over to a California Congressman who has already bankrupted the program in California.”

WHAT’S NEXT FOR HEALTH CARE?

January 29, 2010- Jeri G. Kubicki, Vice President, Human Resources Policy

While the President’s much-anticipated State of the Union address on Wednesday night provided little strategic clarity for health reform, this week’s behind-the-scenes activity – led by House Speaker Pelosi (D-CA), Senate Majority Leader Reid (D-NV) and Senator Baucus (D-MT) – illustrates that ambitions for moving a comprehensive bill are far from over. Despite majority public opposition to the current health reform bills, the President is still very supportive of the policies on the table and procedural maneuvers, such as reconciliation, to pass a bill this year. Although the President “welcomed” input from the minority to help accomplish the goals of reducing the deficit and the uninsured, strengthening Medicare and insurance reform, it is highly unlikely that bipartisan consensus can be reached on the appropriate path forward.


Senate

Senate leaders emerged from a meeting Thursday with a renewed commitment to get health reform “done” this year, even if activity spills into the spring or summer. Leader Reid and Senator Baucus are busy “selling” the House’s plan with a particular focus on key moderates such as Senators Snowe (R-ME), Collins (R-ME) and Graham (R-SC) and soon-to-be retiree Senators Gregg (R-NH), Bond (R-MO) and Voinovich (R-OH). Initial reports indicate that the current demands are too steep and moderate Senators Bayh (D-IN), Lincoln (D-AR) and Landrieu (D-LA) have publicly denounced reconciliation as the best option. Others, including Senator Nelson (D-NE), are open to a reconciliation package with the “right” ingredients but are urging Republicans to join in developing a bipartisan measure.

House

Speaker Pelosi has been busy working a multi-pronged strategy for moving a comprehensive health bill. While she admits she does not have sufficient votes to pass the Senate bill, she continues to pursue this path as a way forward. Additionally, staff have developed their initial wish list of “must have” items in a reconciliation package for consideration by the Senate, including: changes to the excise tax for Cadillac plans – likely with a carve-out for collectively bargained health plans, cuts to Medicare Advantage, expanding Medicaid subsidies, closing the gap in senior prescription drug coverage and eliminating the Medicaid expansion kickback to Nebraska.

Pelosi is also shopping the idea of passing several stand-alone bills and is hopeful she can gain some Republican support for measures such as: repealing the insurance industry antitrust exemption – which would deter price setting, establishing medical loss ratios for insurance companies that would mandate the minimum required premium spend on medical expenses, mandating that pre-existing conditions be covered and deterring insurance cancellation.

Administration

Back at the White House, Chief of Staff Rahm Emanuel insists that although there is much uncertainty with the process of moving health reform forward, “not doing it is not part of this conversation.” Emanuel noted that it is still possible for lawmakers to pass the overhaul the President wants but that the economic agenda – a jobs bill, a deficit reduction measure and a financial regulatory overhaul – is now priority before health reform.