Public Policy Update

As we grow closer to the start of the 81st  Legislative Session, important work continues in the CLC.  In the following update are summaries of Electronic Take-Back Efforts, Churches Politics and the IRS Rules, Lottery Sales Down State-Wide, Gambling Session Watch, Health Insurance Reform, Review of Texas Department of Insurance, and Increase in Medicaid Reimbursement Rates Needed. 

Electronic Take-Back Efforts
A growing concern for the environment is the proper disposal of our electronics. Whether it be cell phones, iPods, computers or TVs we all know our electronic devices have a limited life and with technical advances quickly become obsolete. Many of these products contain materials such as lead, mercury and environmentally harmful brominated flame retardants.  A recent study found that lead from improperly disposed electronics ended up in contaminated children’s jewelry manufactured in China and imported to the US.
Read more about the harmful effects of E-Waste…(.pdf)

Many people are concerned and want to know just how to properly way get rid of these products. In 2007 the Texas legislature passed HB 2714 that requires the producers of computer equipment provide consumers with convenient and responsible recycling for their electronic waste.
Read more about recycling your old computer…

A number of organizations and corporations are calling for more legislation promoting “producer responsibility.” When manufacturers of electronics have to take into account the end of the usefulness of their products, not just the production, they are likely to create more environmentally friendly products that can be easily recycled, refurbished or upgraded. 

In February of next year a sweeping change in television will take place. All broadcasts in the US will be exclusively digital. While this does not affect consumers with cable, and old TVs can receive the signal with the help of a converter box, the change will still result in a number of discarded old analog TVs.  In the upcoming session the CLC will be working with The Electronics Take Back Coalition to help extend the law that applies to computers to include TVs.

Churches Politics and the IRS Rules
The 2008 presidential campaign season has reached a fever pitch. This year, as in past years, Christians are wondering about the proper place of churches in the political process. Churches as 501(c)(3) nonprofit corporations are strictly prohibited from intervening in any campaign for or in opposition to any candidate for office. Of course this bar does not apply to individual Christians and fortunately there are still many things churches can do to promote faithful citizenship.  While the CLC encourages churches to let their voices be heard concerning public policy issues, intervening in partisan political races can get churches into plenty of hot water.

The CLC has compiled a helpful guidbook (.pdf) from the IRS about just what kind of activities churches can conduct, and what is prohibited. Since the rule is not always black and white and the IRS will look at all the facts and circumstances surrounding the church activity, most of the guidance comes in the form of example scenarios. The CLC has also produced a very simple one-page can and can’t do guide(.pdf)

Gambling

Lottery Sales Down State-Wide
The Texas Lottery’s fiscal year ended August 31, 2008 with both sales and revenue down.  This is significant considering many state lotteries reported record sales during this same period.  This is the first decline experienced by the Texas Lottery after six consecutive years where transfers to the state grew. Sales in the current fiscal year that began September 1st have continued the downward trend and are already approximately 15% down from the previous year. Proponents of expanding gambling in our State have complained that sales and participation levels in the Texas Lottery are declining because expansion opponents have blocked all attempts to expand the lottery.  This is excellent news and a welcome trend!  We look forward to continuing our message that the State should not operate a lottery that preys on the poor and less fortunate citizens of our State.

Session Watch
With the legislative session approximately 90 days away, we are preparing for another strong push from special interest entities to introduce casino style gambling into our State.  A recently formed organization called “Horse” looks like they will lead the way on the argument of placing video lottery terminals at horse and dog tracks this time around.  We are also expecting to see full-blown casino legislation; as well as, attempts to legalize keno, poker, electronic raffles and sweepstakes games just to name a few.  However, the introduction of Indian Casinos in our State probably presents the most clear and present danger that we will face in the upcoming legislative session. 

Health Insurance Reform
As the legislative session approaches, health insurance remains a critical issue due to the high number of Texans without coverage.  Legislators, advocacy groups and industry stakeholders are looking to bridge the gap and find solutions for lowering the number of uninsured.  The CLC is looking to foster public / private partnerships where health care providers and state government work together to create policies with lower premiums that provide access to quality care for those who cannot access our health care insurance system due to cost.     

Review of Texas Department of Insurance Creates Opportunity for Reform
A top to bottom review of the Texas Department of Insurance (TDI) occurring now and a bill to be filled during the legislative session has given advocates the opportunity to seek meaningful reform of the agency. A large group has called on TDI to enact real rate oversight, to strengthen the Office of Public Insurance Counsel (OPIC) which is designed to act as an independent advocate for policy holders, to strengthen its mission to include a focus on consumer protection and to ask TDI to promote health insurance coverage in Texas. Insurance regulation is an issue that is sure to get plenty of attention during the next legislative session especially in the wake of such devastating storms along the Texas coast. The CLC will work to keep you up to date on the developments.

Increase in Medicaid Reimbursement Rates Need to Provide Care to Elderly Texans
In the past year Nationwide, the fractures of the healthcare system are affecting the need for affordable, long-term care. In Texas, our aging population is growing, but more than 53 Texas nursing homes have closed in the last 24 months; about 40% of the closures are in rural areas. This is a crisis.  Much of the problem is caused by a low rate of reimbursement to nursing homes that provide care to residents who are on Medicaid. The daily rate of reimbursement is only $107.00 per patient but it costs $120.00 on average to care for a resident each day. The state of Texas is carrying a growing burden for Medicaid funding with health care costs consuming more and more of the state budget, a Medicaid shortfall of $1.2 billion is expected by December 2008. Texas ranks 49th in daily Medicaid funding and seventy percent of the nursing home residents are Medicaid eligible. New service models and funding formulas are needed to protect medical services and prevent more nursing homes from closing due to lack of adequate minimal funding.
 

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