Governor’s veto withstands override attempt

The House of Representatives failed to override a veto by Governor Haley Barbour on House bill 1240.

The bill, titled Child Product Safety, allows claims for alleged defective children’s products to be filed under the Mississippi Consumer Protection Act, which has different standards than Mississippi’s existing products liability laws.

Several people spoke in support of the overriding the veto, but a vote of 72-48 in favor of the override wasn’t enough to garner the 2/3 majority needed.

On Thursday, The Governor issued a veto statement saying the bill would undermine the comprehensive reform designed to end lawsuit abuse that he proposed and the Legislature passed in 2004.

The Select House Committee on Utility Cost Recovery wrapped up business on Wednesday morning as several members stressed the importance of moving forward with Senate Bill 2793, legislation that would create a pay-as-you-go system for construction of base load power generation plants.

Members of the committee encouraged Public Utilities Chairman Tyrone Ellis to address concerns that were discussed during two days of hearings, but they believe the concept is one way to address future energy needs.

“We don’t need to wait on this legislation,” said Speaker Pro Tem J.P. Compretta, who served on the select committee. “This is crucial. If we delay, it is not going to benefit our state.

“Let’s be in the forefront and show leadership in this area.”

Senate Bill 2793 is currently in conference. Ellis said the members of conference committee will be working today to address the concerns of the select committee and make sure “safeguards” are included in the bill. He said he hopes to have something completed by the end of the day to take to the Senate conferees. The conferees on the bill in the House are Ellis, Rep. Ray Rogers and Rep. Earl Banks. The Senate conferees are Sen. Nola Mettetal, chairman of the Senate Public Utilities Committee, Sen. Nickey Browning and Sen. Sampson Jackson.

The legislation would enable the Public Service Commission the ability to allow certain costs on construction and financing to be placed into the rate base before the plant is completed. Current law will not allow the cost to be added to rates until the plant is operational.

Publicly regulated utilities are allowed by law to recover cost from construction of generation facilities.

Tuesday, April 8, 2008

Hearing focus on diverse sources of energy

The Select Committee on Utility Cost Recovery met for more than six hours on Tuesday.

The afternoon session was spent with testimony from Entergy Mississippi and Mississippi Power Company officials.

Each company stressed the need for diversification in energy sources to produce electric power and said they were reviewing all options. Both stressed the need for passage of Senate Bill 2793, a bill that would create a pay-as-you-go system for construction of base load power generation plants.

There were concerns raised by some members of the committee and by North District Public Service Commissioner Brandon Presley that as currently written the bill ties the hands of the PSC.

Monday, April 7, 2008

Hearings begin on utility bill

The Select House Committee on Utility Cost Recovery began hearings on Senate Bill 2793 on Monday.

The committee is looking at proposed legislation that would enable the Public Service Commission to allow publicly regulated electric companies to place the cost of construction of power generation plants into the customer rate base as the plant is being built. Current law does not allow the cost to be placed into the rate base until the plant is operational.

Referred to as the pay-as-you-go bill, utility company officials say the process would save consumers millions of dollars because of the savings in financing costs. Entergy Mississippi is looking into building a Nuclear Power Plant near Port Gibson, while Mississippi Power is considering a clean coal gasification plant in Kemper County.

On Monday, MEC President Blake Wilson testified in favor of the legislation, saying that Mississippi’s utility infrastructure must be competitive, affordable and reliable for continued economic development.

Entergy Mississippi CEO Carolyn Shanks also appeared before the select committee, explaining projected demand for electricity makes it necessary for the company to begin looking at ways to ensure there is reliable affordable energy for its customers.  Shanks said currently the company is able to provide electricity from its nuclear plant for half a cent per kilowatt, compared to 6 cents per kilowatt for electricity generated by gas power plants.

Louis Miller of the Sierra Club spoke against the bill, saying it gives the utility companies a “blank check.” However, the bill only gives the Public Service Commission the authority to determine if prudent expenses that have already been incurred by publicly regulated utility can be added to the rate base.

The hearing will continue at 8 a.m. on Tuesday.

The Mississippi Economic Council recognizes Gov. Haley Barbour’s veto of House Bill 1240 as a sensible understanding of the complexity of the law.

 Unfortunately, legislation may unintentionally go beyond what the title intends. The ambiguity of the legislation, and failure to define what products are involved, goes at the heart of the comprehensive tort reforms that were passed in 2004.

 Tort reform is so important for creating jobs and a better quality of life in Mississippi. This is evident as Mississippi ranked 9^th in the recently released U.S. Tort Liability Index: 2008 Report. The report, compiled by the Pacific Research Institute, shows there is a link between tort reform and greater prosperity. In 2006, job growth in the Top 10 states was 57 percent higher than the 10 worst states, according to the report.

The Conference Committee members have been named for SB 2149, a bill that in its original form replaces elected superintendents with appointed superintendents in low-performing school districts. The new superintendent would be appointed by the local school board.

It would also require school boards to appoint a new superintendent in low-performing school districts that currently have appointed superintendents.

The House sent an amended version of the bill back to the Senate without the change from elected to appointed, but it did restrict a superintendent from running for re-election if his or her district is low performing.

The Senate conferees are Videt Carmichael, Sen. Education Chairman, Gray Tollison and Doug Davis. The House members on the conference committee are Cecil Brown, House Education Chairman, Kelvin Buck and Tommy Reynolds.

The deadline for adoption of conference reports on general bills is April 14.

Wednesday, April 2, 2008

A bill that would make non-gaming attractions built and owned by gaming companies eligible for the tourism tax incentive is headed to conference.

The bill will allow any investment over $10 million that is a qualifying tourism project to receive a sales tax rebate of up to 30 percent of the investment over a 10-year period. The tourism incentive legislation was passed during the 2007 session; however, gaming companies or companies with in interest in gaming were excluded from eligibility.

There are differences between the House version and what was initially introduced in the Senate.

Also, a bill to make adjusts to the Motion Picture Incentive Act will go to conference. The changes are designed to provide incentives for film projects of all sizes.

Tax Commission Joe Blunt explained the state’s tax structure, showing that the majority of the state’s taxes, 43 percent, come from sales taxes. Corporate taxes make up about 7 percent of total collections.

Randy Lander from the tax commission’s office, said corporate income taxes have grown as their collections were almost $450 million before tax credits in 2007. This compares with a little less than $300 million.

In 2007, companies received about $65 million in tax credits with the majority coming in the form of job tax credits.

Lander said the bill increase in tax credits over the past two years is a result of large companies, such as Nissan, coming on line and employing thousands of people.

“From a dollar-for-dollar standpoint, tax credits are much more beneficial than a tax reduction,” Lander said.

The Senate worked for a little over an hour on Friday, passing about 20 appropriations bills from the House.

The majority of the bills that were passed funded commissions and boards, such as the Public Service Commission and the Board of Cosmetology.

The House and Senate also dealt with a number of resolutions, including a resolution that the opening day of the 2009 session will be held in the chambers of the Old Capitol.

The Old Capitol was damaged during Hurricane Katrina and has been closed for repairs and renovations.

Thursday, March 27, 2008

Chambers begin sending bills to conference

 Both the House and the Senate began addressing bills that were sent back from the other Chamber following Wednesday’s deadline.

Most bills will end up in conference; however, some bills were sent to the Governor on Thursday. Most of those bills, such as the country of origin labeling for catfish served in restaurants, passed with little controversy. However, a bill that originally was designed to penalize people for falsely reporting child abuse passed the House with a Senate amendment that included additional restrictions on abortion. The House debated the bill for more than an hour, with many House members begging to let the bill go to conference. In the end, the bill passed by a vote of 79-4. It was held on a motion to reconsider.

Conference was requested on one MEC-backed bill. The House declined to concur and requested conference after the Senate made changes to a bill that would set up a Tourism Task Force. The bill was initiated and is supported by Momentum Mississippi.

Conference reports on general bills is April 14.

Wednesday, March 26, 2008

Two MEC-supported bills moved to the next step in the legislative process.

Senate Bill 2793, which would give the Public Service Commission an alternate method for the costs of construction of new electric power plants, will now go to conference.

The House amended the bill to create a special committee to study the issue. The original Senate language would have given the PSC the authority to approve certain costs be added to the rate base. Currently, the costs of a power plant can only be added to the rate base once it begins producing power.

Also, a bill that calls for removing school superintendents in low-performing districts was addressed. The Senate version called for any elected superintendent in a low performing-district to be replaced with an appointed superintendent.

Tuesday, March 25, 2008