Jeff City Report April 26: Stimulus funds take three, Mo Court Plan, Blunt
This week car dealers showed their muscle by passing a bill to permit them to charge every consumer $200 in paperwork fees on every car sale. It was a tiny but important consumer issue. Now it goes to Nixon who has it as a stand alone issue to consider whether he will sign it.
And House Republicans changed course yet again on Stimulus money for Missouri. This next week promises to be a circus and the deadline for passing the budget is creeping ever closer. Rumors already are going around about a special session for the Budget.
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Roy Blunt called a Zero as Senate Candidate by Wash Post
Now the House Republicans have again changed course of the Federal Stimulus funds
Speaker Richards announces that House Republicans will seek to use the Stimulus funds for a Tax "Rebate"
First, House Republicans wanted to send the money back to Washington. That didn't sell. So for weeks now they have been busily crafting bills to spend One Billion dollars on a long wishlist for lobbyists and Republican legislators. Now they have changed course a third time. They have announced they will seek to declare a tax rebate in the form of a tax cut in the income tax. Details will be revealed tomorrow but this week Speaker Ron Richards declared that the OMB budget office in DC has said the scheme is "illegal" but they will seek to do it anyway.
Senator McCaskill jumped in this weekend. Here is good coverage of her position.
Car Dealers pass $200 Paperwork fee for consumers
Senate Bill 355 will authorize a $200 fee on all auto sales
GENERAL ASSEMBLY APPROVES FEES REJECTED BY COURT
The House of Representatives on April 21 gave final approval to bill giving automobile and boat dealers the legal authority to charge customers fees of up to $200 for completing documents related to sales. The Missouri Supreme Court in 2007 ruled that a business that charges fees for documents prepared by employees who aren't lawyers is engaged in the unlicensed practice of law and subject to class-action lawsuits seeking repayment of fees plus damages. The case is Carpenter vs Countrywide Home Loans a March Missouri Supreme Court case.
SB 355, which now goes to the governor to be signed or vetoed, seeks to carve out an exception to that rule for vehicle dealers, many of whom charge extra fees to offset expenses and supplement profits. The House passed the bill on a 128-28 vote. The Senate earlier had approved it by a vote of 23-11.
The Missouri Constitution grants the judiciary the sole authority to determine what constitutes the practice of law. The text of SB 355 acknowledges this but declares that the General Assembly believes charging for document preparation by non-lawyers doesn't constitute the practice of law. The bill further says that if a court disagrees and invalidates the fees, customers can't recover the fees or damages. Under court precedent, however, if the court were to strike down the fee portion of SB 355, it would likely also invalidate the provision protecting vehicle dealers from lawsuits.
Roy Blunt's Senate race takes huge hit as his finance reports are termed a Zero by the Washington Post. Steelman announces committee to run.
"ZEROS
Roy Blunt: For a former member of the House Republican leadership who is allegedly the pick of the Missouri party establishment for the state's open seat race, Blunt's $542,000 did not impress -- especially when compared to the $1 million plus Secretary of State Robin Carnahan (D) collected in the same time period. If there was any doubt whether former state Treasurer Sarah Steelman would run for the GOP nod, there shouldn't be now."
Sure enough Steelman later in the week announced new websites and new staff to run for the Senate..
I was on Public TV show re Missouri Court Plan this week.
Bryan Stevenson, the Chair of the House Judiciary Committee, and I were the guests on Jefferson City Review this week. The public television talk show this week was on House Joint Resolution 10 which seeks to change the way judges are chosen in Missouri. I took the simple position that the Plan, which is a national model, does not need to be changed. Guess what? Stevenson disagreed.
The House narrowly passed the resolution recently but it is widely thought that the issue will die in the Senate. But the proponents of politicizing judge selection keep coming back on this issue so I expect it will be with us for a while.
Join me on Twitter.... @JohnBurnettKC
Thank you for the opportunity to serve.
State Rep John Burnett







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