Health care reform's financial fallout
 
The federal health care reform law passed last month may be a blessing for uninsured Americans but it may also be a big burden for some states. And it is those with the largest uninsured populations, like CALIFORNIA and TEXAS, that could face the biggest financial strains.
 
A number of states are actually feeling pretty confident about their financial prospects under the new law. MASSACHUSETTS falls into that category. Over the next decade, the Bay State, which already has a form of universal health care coverage, will see the federal government take over an increasing proportion of the costs it now incurs providing Medicaid coverage for adults without children. 
 
"On balance, it's definitely a gain," said JudyAnn Bigby, secretary of the state's Office of Health and Human Services. 
 
Ten other states with expanded Medicaid programs (see Bird's eye view) will enjoy similar cost reductions under the final version of the reform plan — US HB 4872, known as the reconciliation bill — approved on March 25. One of those states, MAINE, will receive an additional $154 million in federal financing from 2014 to 2019, according to U.S. Rep. Mike Michaud (D-MAINE). And U.S. Rep. Jerrold Nadler (D) of NEW YORK estimated that his state could see a net gain of $2.1 billion. 
 
"The reconciliation bill does give financial benefits for the expansion states," said Robin Rudowitz, associate director of the Kaiser Commission on Medicaid and the Uninsured, part of the Kaiser Family Foundation. 
 
But the law won't be quite the same boon for states that currently offer only limited Medicaid coverage. In such states, the program is restricted mainly to low-income families, pregnant women, people with disabilities and the elderly. Under the new law, however, starting in 2014, anyone earning up to 133 percent of the federal poverty level — about $29,000 for a family of four — will be eligible for Medicaid. Although the federal government will pick up the tab for all of the new enrollees for the first three years, after that, the states' share will gradually increase until it reaches 10 percent in 2020. 
 
TEXAS' Medicaid program, one of the nation's most restricted, currently covers only working parents who earn less than about 20 percent of the federal poverty level. The program doesn't cover childless adults at all. If the health care law's new income cutoff and 10-percent state contribution requirement went into effect today, an additional one million residents would qualify, costing the state $370 million a year, according to Anne Dunkelberg, associate director of the Center for Public Policy Priorities, an Austin-based research group that supports the law. Dunkelberg said many children who are eligible but not currently enrolled in Medicaid or the State Children's Health Insurance Program might also want to join, costing the state several hundred million dollars more. 
 
Another state that is worried about the potential impact of the new law is VIRGINIA. The state will add 400,000 residents to its Medicaid rolls, costing it an additional $1.1 billion by 2022, according to a projection by the state's Department of Medical Assistance Services. 
 
"We simply cannot afford this expansion," Gov. Bob McDonnell (R) said in a statement. 
 
A provision in the health care reform law prohibiting states from scaling back their Medicaid programs before the mandated expansion occurs has created a more immediate concern for ARIZONA. In 2000, the state's voters approved a measure (Proposition 204) expanding Medicaid to include childless adults with incomes at or below the federal poverty level. But as part of an effort to close a $2.6 billion budget gap, the state recently ended that program, along with the state's Children's Health Insurance Program. The state now has to restore those programs and come up with the billions of dollars needed to fund them. 
 
"Any flexibility we used to have is gone with the new mandate," said Tom Betlach, director of the Arizona Health Care Cost Containment System, which runs the state's Medicaid program. 
 
CALIFORNIA faces yet another problem — on top of the prospect of a flood of new enrollees to its Medicaid program: likely increases in its reimbursement rates for Medicaid providers, currently among the lowest in the nation. The health care law will require states to raise the Medicaid rates they pay primary-care physicians to the same level the federal government pays under Medicare, the health insurance program for the elderly. The federal government will make up the difference the first two years, but then the states will have to cover the expense. For CALIFORNIA, that could be an additional $500 million a year, state officials said. They believe the state will have to raise rates for other outpatient Medicaid providers as well to ensure the supply of providers keeps up with the demand of newly insured. They say that could cost an additional $2 billion a year, a dismal proposition for a state already facing a $20 billion budget shortfall. 
 
"The federal government has to account for states' inability to sustain our current programs, much less expand," said Kim Belshe, secretary of the state's Health and Human Services Agency. 
 
But supporters of the health care overhaul maintain that states will receive billions of dollars in new federal Medicaid funding as a result of the law, and they could also see big cost savings as hospitals become less burdened by the uninsured. States, they say, will come out ahead in the end. (NEW YORK TIMES, CHRISTIAN SCIENCE MONITOR)

Some states win big with health care reform
 
Eleven states stand to gain considerably from the passage of the federal health care reform law, according to state officials and Medicaid experts. The so-called "expansion states" have already expanded their Medicaid programs to cover childless adults, something that will soon be mandated — and federally subsidized — under the new law. The federal government currently reimburses states for 50 percent of the costs they incur in covering childless adults. But that percentage will rise to 75 percent in 2014 and 93 percent by 2020. The savings are likely to total billions of dollars annually.

DELAWARE AND TENNESSEE RACE TO THE TOP: Last week, the U.S. Department of Education announced the first-round winners of its Race to the Top K-12 education reform grant program: DELAWARE, which was awarded about $100 million, and TENNESSEE, which was awarded about $500 million. 
 
"I just get so tired of TENNESSEE always being considered 40-something-th in education," TENNESSEE Gov. Phil Bredesen (D) said when he heard the news. "I intend to spend the rest of the day doing victory laps, doing high-fives." 
 
But many were surprised not only by the fact that just two of the 16 finalists received shares of the $4.35 billion in grant money available, but also by which states didn't. FLORIDA and LOUISIANA, which had been lauded for their innovative plans and were widely considered favorites to win, finished 4th and 11th respectively. 
 
The level of support the reform plans received from their respective school districts and teachers' unions appeared to be one key factor in determining the winners and losers. The Wall Street Journal reported that DELAWARE's and TENNESSEE's plans had near universal support from their local unions, while FLORIDA's "had the backing of only 8 percent of its unions." 
 
That fact had some observers questioning whether big states like FLORIDA and CALIFORNIA, which finished 27th, had any chance of receiving a grant. 
 
"I would hate to think that states that have big problems with great complexity and huge numbers of students will just be written off because they can't show as much coordination as smaller states," said Jack Jennings, president of the Center on Education Policy. 
 
But Jennings noted that the Education Department's decision to limit the first-round payout so much seemed like an attempt to spur competition, placing pressure on states that already have strong proposals to refine them even further. 
 
"It seems [Education Secretary Arne] Duncan wants to establish a very high bar and then have the rest of the states compete further," Jennings said. 
 
In a conference call with reporters, Secretary Duncan also brushed aside the suggestion that lack of union buy-in would disqualify states. 
 
"This is a 500-point competition," he said. "There are no make-or-break categories." 
 
Duncan also said he expected 10 to 15 winners in Round 2, which has a June 1 application deadline. (CHRISTIAN SCIENCE MONITOR, STATELINE.ORG) 
 
STATES TURNING BACKS ON BIG BANKS: The nation's five biggest financial institutions, led by Bank of America, Wells Fargo and J.P. Morgan Chase, hold nearly 40 percent of all U.S. deposits, including those of many state governments. But increasingly frustrated by the big banks' reluctance to lend, states are looking to take their business elsewhere. 
 
Lawmakers in MARYLAND, MASSACHUSETTS, MINNESOTA and NEW MEXICO have introduced legislation that would shift more of their states' money into smaller financial institutions, which have largely avoided the criticism for tight-fistedness that has been directed at the big banks. 
 
"Community banks are more likely to make loans to small businesses," said NEW MEXICO Rep. Brian Egolf (D), who proposed a bill in January (HB 66) to allow the state treasurer to invest up to $5 billion in local banks and credit unions without going through the usual bidding process, as well as award contracts to local financial institutions whose bids are within 10 percent of those of the bigger banks. "It doesn't hurt that we are moving money out of the big banks that nearly destroyed the economy," he said. 
 
The NEW MEXICO House passed the bill on a 65-0 vote, but it died with the end of the session in February. Egolf has vowed to revive the measure next year if it isn't taken up in a special session later this year. In the meantime, state officials have decided to rewrite an investment policy to allow the state to invest some of the proceeds from its bond sales in local banks. 
 
The comments of MARYLAND Rep. C. William Frick (D), who introduced a bill similar to Egolf's (HB 1325), suggest another motivation for the states' move away from big banks. 
 
"The federally chartered institutions come in here and tell us we can't regulate them because of federal pre-emption," he said. "We are powerless to stop them, yet we give them lucrative state contracts." 
 
Another option some states are considering is establishing their own state-owned banks, following the lead of NORTH DAKOTA. The 90-year-old Bank of North Dakota, with $3.9 billion in assets, works with private financial institutions to provide loans to local businesses. It has recently received inquiries from at least 10 states, including CALIFORNIA, FLORIDA, ILLINOIS, MICHIGAN and PENNSYLVANIA. 
 
"We have not seen this much interest in the bank cumulatively in our whole history," said the bank's president, Eric Hardmeyer. 
 
But no matter how unpopular big banks may be at the moment, it is unlikely states will abandon them altogether. As MARYLAND's Chief Deputy Treasurer Bernadette Benik pointed out, state payroll contracts usually "end up going to larger banks...because they need to have branches across the state." (WALL STREET JOURNAL) 
 
BUDGETS IN BRIEF: The Governmental Accounting Standards Board is considering changes to the rules for calculating state and local government retirement-benefit obligations that could add tens of billions of dollars to public pension liabilities. The board will make its initial recommendations in June, and a final decision is expected next year (WALL STREET JOURNAL). • Justice Department investigators are looking into whether potentially illegal payments were made to influence decisions on where the CALIFORNIA Public Employees' Retirement System, the nation's largest public pension fund by assets, invested its money (WALL STREET JOURNAL). • The NEVADA Public Employees' Retirement System has dropped money managers at Goldman Sachs and a unit of Prudential Financial over performance concerns about the management of international stocks for the state's fund. The $22 billion fund reported a 15.8 percent decline last fiscal year (WALL STREET JOURNAL). • State tax revenues rose last quarter for the first time since 2008, according to new data from the U.S. Census Bureau. The increases were driven by property and corporate income tax collections, which were up 5.8 percent and 3.4 percent, respectively, in the last three months of 2009, compared with the same period the year before (STATELINE.ORG). • Government workers earn 45 percent more in pay and benefits than their private-sector counterparts, according to the U.S. Bureau of Labor Statistics. And from 1998 to 2008, public employee compensation grew by 28.6 percent, compared with 19.3 percent for private workers (WALL STREET JOURNAL). • After years of fighting over gambling, the ALABAMA Senate passed a bill last week (SB 380) that would let voters decide in November whether electronic bingo will be allowed in the state. The measure now heads to the House, where the vote is expected to be close (MONTGOMERY REGISTER).

RACE TO REDRAW THE LINES: In 2003, TEXAS' GOP-controlled Legislature approved a controversial mid-decade redistricting plan that ultimately gave Republicans six more seats in Congress. With Census forms in the mail and the 2010 elections looming, Democrats, knowing that whoever wins those upcoming races could have the upper hand in drawing the new lines for congressional and statehouse boundaries in 2011, are using TEXAS' action seven years ago as a rallying cry to get supporters to vote and give money now. 
 
"If we don't shut down the GOP at the ballot box and stop them from redistricting themselves back into power, all our reforms will be dead in the water," said outgoing NEW MEXICO Gov. Bill Richardson (D) in a recent fundraising letter for the Democratic Governors Association that referred to TEXAS' 2003 redistricting as "underhanded" and "deceitful." 
 
Democrats currently control 60 legislative chambers, but 21 of them in 17 states are within just a few seats of changing hands politically. And those 17 states will determine the boundaries of 198 congressional districts. 
 
Which states gain or lose seats as a result of population changes revealed by the Census will also factor into next year's nationwide remap. TEXAS, where Republicans still hold majorities in both legislative chambers, could pick up three more Congressional seats, more than any other state. 
 
Both parties are also aggressively targeting the 37 governorships that are up for grabs this year. The Republican Governors' Association said "it jumpstarted the Republican comeback last year by winning governors' races in NEW JERSEY and VIRGINIA." (STATELINE.ORG) 
 
POLITICS IN BRIEF: CALIFORNIA state lawmakers are still the highest paid in the nation by far, despite an 18 percent pay cut last year, according to a survey by a state panel that is considering another 10 percent salary reduction. Golden State legislators earn $95,291 per year, while their counterparts in MICHIGAN, NEW YORK, and PENNSYLVANIA earn $79,650, $79,500 and $78,315, respectively (LOS ANGELES TIMES). • The two sides in a battle in COLORADO over river rafting have filed a record 24 proposed initiatives for the November ballot. Rafters, who believe they should be allowed to use the rivers they've used for decades, submitted four measures, while private landowners seeking to protect their property rights have filed 20 (DENVER POST). • The administration of VERMONT Gov. Jim Douglas (R) has outlined a sweeping overhaul of Green Mountain State government. The governor's proposals include consolidating the state's school districts from 280 to less than 50 and reducing the state's prison population by reserving prisons for only the most violent offenders (BURLINGTON FREE PRESS).

HEALTH CARE LAWSUITS PIT GOVS AGAINST ATTORNEYS GENERAL: The lawsuit filed by more than a dozen states to block the new federal health care bill is creating significant ill will between some governors and their attorneys general. As with much of the hyper-partisan warfare that engulfed the measure's Congressional debate, politics appears to be the new battle's driving force. 
 
To date, 14 state attorneys general have filed suit to overturn the bill: 13 have banded together in a joint effort while VIRGINIA has filed its own litigation. All claim the new health law's mandate that requires individuals to purchase health insurance is unconstitutional. Of those 14 litigants, only LOUISIANA Attorney General Buddy Caldwell (D) is not a Republican.  
 
While the litigation has been hailed in strong GOP states like IDAHO and TEXAS, it has enraged Democratic governors like WASHINGTON Gov. Christine Gregoire (D), who lashed out at Evergreen State Attorney General Rob McKenna's decision to join the suit.  
 
"I don't know who he represents. He doesn't represent me," Gregoire said. "I don't think he represents a million and a half Washingtonians that will be helped by this. I don't think he represents small business that will be helped by this. I don't think he represents Medicare people who will be helped by this." 
 
Gregoire has voiced support for a proposal from Democratic lawmakers to bar McKenna from using state funds on the suit. A similar proposal is under consideration in COLORADO, where lawmakers are looking at stripping funding to the office of Attorney General John Suthers. Centennial State Dems contend the suit is merely an expensive political boondoggle with almost no chance to succeed. COLORADO Gov. Bill Ritter (D) is also one of four Democratic governors - Gregoire, MICHIGAN Gov. Jennifer Granholm and PENNSYLVANIA Gov. Ed Rendell are the others — to offer their help to U.S. Attorney General Eric Holder in defending the law.  
 
But Dems aren't the only ones sick over the health care litigation. Republican governors like NEVADA's Jim Gibbons are also at loggerheads with Democratic AGs who refuse to get involved in the case. Gibbons last week threatened to seek outside counsel after Silver State AG Catherine Cortez Masto cited the state's precarious budget situation for declining to join the suit. Masto argued that doing so was unnecessary, noting that should the 14 other states win their case the decision would affect all states equally. "Therefore, NEVADA can ride for free at this time by allowing other states to foot the bill," Masto said.  
 
Similar struggles are going on in ARIZONA, where Gov. Jan Brewer has asked lawmakers to find a way around Aattorney General Terry Goddard, who has refused to join the suit, and in MISSISSIPPI, where Gov. Haley Barbour (R) has vowed to join the suit but has so far been blocked by Democratic Attorney General Jim Hood. Barbour has twice given Hood deadlines for determining whether or not to sign on, but Hood has so far remained undecided. He has, however, made it clear it is his decision to make, not Barbour's. Hood recently wrote Barbour a letter warning the governor that "you are not authorized by this office to engage or employ counsel, file suit or intervene in pending litigation at this time while we are completing our review and making our decision whether to file suit."  
 
Although many legal scholars doubt the lawsuit's chances of success, most also acknowledge there is more involved in the litigation than just the new law's constitutional bona fides. The attorney general's office is often a stepping stone to higher office, and several of the AGs on both sides of the issue are in fact considered likely future gubernatorial candidates. One, KENTUCKY's Jack Conway, is already running for the U.S. Senate. That, observers say, is likely to keep the political element of argument healthy even if the suit dies quickly. (DETROIT FREE PRESS, WASHINGTON POST, DENVER POST, SEATTLE TIMES, LAS VEGAS SUN, CLARION LEDGER [JACKSON], ARIZONA REPUBLIC [PHOENIX], CHRISTIAN SCIENCE MONITOR, SALT LAKE TRIBUNE, COLORADO INDEPENDENT) 
 
UT SEEKS EMINENT DOMAIN OVER FEDS: The expanding conflict between states and the federal government took another turn last week when UTAH Gov. Gary Herbert (R) signed HB 143, legislation that would allow the state to use eminent domain power to confiscate federal land in the Beehive State. More than 60 percent of land in the Beehive State is owned by the federal government, something Herbert says restricts economic development. State officials acknowledge their goal is to instigate a legal battle that is ultimately decided by the Supreme Court. Officials also say they know such a case has almost no chance to succeed, but that it is still worth pursuing because a victory could ultimately mean millions in new state tax revenues. (SALT LAKE TRIBUNE) 
 
GOVERNORS IN BRIEF: A federal court temporarily upheld CALIFORNIA Gov. Arnold Schwarzenegger's (R) appeal of an earlier court ruling to end his administration's furloughing of state workers. The ruling keeps "furlough Fridays" intact for about 70,000 state workers. No final decision date on the case was announced (SACRAMENTO BEE). • NEW MEXICO Gov. Bill Richardson (D) ordered National Guard troops to patrol his state's border with Mexico. The order came after the murder of an ARIZONA rancher by suspected drug smugglers from across the Mexican border (NEW MEXICO BUSINESS WEEKLY [ALBUQUERQUE]). • OREGON Gov. Ted Kulongoski (D) said he is leaning toward vetoing SB 1046, which would allow some psychologists to prescribe medications. The governor said he was concerned that the measure did not receive a public hearing (OREGONIAN [PORTLAND]). • A new poll shows that NEW JERSEY Gov. Chris Christie's (R) approval rating has fallen to 43 percent, a 9 percent drop since he took office. The Fairleigh Dickinson University PublicMind survey had a margin of error of plus or minus 3.5 percent (NORTHJERSEY.COM). • WASHINGTON Gov. Christine Gregoire (D) signed a package of bills that collectively boost the benefits for the survivors of police officers and firefighters killed in the line of duty. One of the signed measures, HB 2519, raises a lump-sum payment for survivors from $150,000 to $214,000, and adjusts it for future inflation. The bill also removes a requirement that the officer or firefighter have 10 years of service before being eligible for an annual retirement benefit (SEATTLE TIMES).

BUSINESS: The FLORIDA Senate endorses HB 689, a bill that requires someone seeking to sue a business for slipping and falling in that establishment to prove the business knew there was a danger and did not act to remove it. The measure goes to Gov. Charlie Crist (R) for review (MIAMI HERALD). • ARIZONA lawmakers approve HB 2307, which would exempt any personal firearm, firearm accessory or ammunition made and kept in the Grand Canyon State from federal regulation. It shoots off to Gov. Jan Brewer (R) for review (ARIZONA DAILY SUN [FLAGSTAFF]). • The ALABAMA Senate approves SB 380, legislation that would place a ballot measure before voters in November to determine whether to legalize bingo in the Heart of Dixie. The measure would also create a state gaming commission. It moves to the House (MONTGOMERY ADVERTISER). • MAINE Gov. John Baldacci (D) signs HB 1085, a bill that requires companies offering free trial periods of goods or services to confirm billing information directly from the consumer at the time the consumer accepts the offer, and to clearly inform the consumer of any additional financial obligations that may be incurred as a result of accepting the free offer (BANGOR DAILY NEWS, STATE NET). • OREGON Gov. Ted Kulongoski (D) signs SB 1045a, which bars Beaver State employers from using a job applicant's credit history in hiring, firing or other employment actions (OREGONIAN [PORTLAND]).  
 
CRIME & PUNISHMENT: The ARIZONA House approves HB 2141, which would make assaulting a state park ranger a Class 6 felony punishable by up to a year in jail. The measure is now in the Senate (EAST VALLEY TRIBUNE [PHOENIX]). • The MISSOURI House approves HB 1787, legislation that would broaden the state's "castle doctrine" law to cover people living in apartments and rental properties. The law allows Show Me State residents to use deadly force against intruders into a private home or vehicle. The bill, which also would allow properly-permitted Capitol staffers to bring weapons into the Jefferson City statehouse, faces another vote in the House (KANSAS CITY STAR). • UTAH Gov. Gary Herbert (R) signs HB 150, a bill that allows prosecutors to issue subpoenas without a judge's approval in cases of stalking or child kidnapping. Under the new law, prosecutors can order an Internet or cell phone company to provide them with a customer's name, address, phone number, bank account information and length of service (SALT LAKE TRIBUNE). • Still in UTAH, Herbert also signs SB 277, which requires anyone arrested for a violent crime to submit a DNA sample to a state database (SALT LAKE TRIBUNE).  
 
EDUCATION: The Obama administration awards $600 million in federal Race to the Top grant funding to DELAWARE ($100 million) and TENNESSEE ($500 million), the only two states to receive the federal cash awards. The states beat out 14 other finalists to earn the grants (WALL STREET JOURNAL). • The ILLINOIS House approves HB 4886, a measure that would allow local Prairie State school boards to establish a four-day school week. The bill, which would still require students to attend school the same total number of hours they currently do, heads to the Senate (CHICAGO TRIBUNE). • The SOUTH DAKOTA Legislature upholds a veto by Gov. Mike Rounds (R) of SB 121, legislation that would have forced state education officials to set up programs to promote the education of children who are deaf or have impaired hearing. Lawmakers in both houses voted for an override, but the House vote fell short of the two-thirds majority needed to make the bill law (YANKTON PRESS & DAKOTAN). • WASHINGTON Gov. Christine Gregoire (D) signs HB 2801, which requires Evergreen State public schools to develop and enforce anti-bullying policies. Gregoire also signs SB 6403, which allows state officials to intervene in schools that consistently fail to meet achievement standards (OLYMPIAN). • The ARIZONA House approves HB 2731, a bill that would allow high school students who earn passing grades in core curriculum and pass certain exams to graduate as early as their sophomore year. The diploma would allow them to attend community college or a trade school but would not qualify them for a university. It moves to the Senate (ARIZONA REPUBLIC [PHOENIX]). • INDIANA Gov. Mitch Daniels (R) signs off on new rules that require Hoosier State teachers in grades 5-12 to have at least a bachelor's degree in the subject they teach, with a minor in education. The new rules will be phased in starting in July (POST-TRIBUNE [MERRILLVILLE]). • The GEORGIA House endorses SB 250, which, among other things, requires state education officials to develop model anti-bullying legislation for all Peach State public schools. It returns to the Senate for concurrence on changes made in the House (DULUTH WEEKLY).  
 
ENVIRONMENT: The CALIFORNIA Air Resources Board scraps rules requiring new cars by 2012 to have windshields with reflective coating to help battle global warming. Officials say they will still require automakers to develop ways to cool down their cars' interiors while allowing drivers to use less air conditioning — thus improving fuel economy and emitting less greenhouse gas emissions — but they will let manufacturers work out on their own how they will achieve that goal (SACRAMENTO BEE). • SOUTH DAKOTA Gov. Mike Rounds (R) signs HB 1263, legislation that allows developers of large-capacity wind farm projects that involve electrical transmission lines up to 12 years from the permit date to begin construction. Smaller projects would have five years (SIOUX CITY JOURNAL). • TEXAS officials agree to re-write new clean-air rules designed to reduce industrial air pollution after the federal Environmental Protection Agency rejected those standards on the grounds they would have allowed large manufacturers to skirt requirements of the federal Clean Air Act (STAR-TELEGRAM [FORT WORTH]).  
 
HEALTH AND SCIENCE: The CALIFORNIA Assembly endorses SB 4, which would outlaw smoking at any of the state's 278 state parks or beaches. The measure wafts back to the Senate for concurrence on changes made in the Assembly (LOS ANGELES TIMES). • MAINE Gov. John Baldacci (D) signs HB 1148, a bill that prohibits insurance companies from imposing annual, lifetime or other caps on the amount they will pay for covered medical services (BANGOR DAILY NEWS). • COLORADO Gov. Bill Ritter (D) signs HB 1008, which bans providers of individual health insurance policies from charging different rates to men and women for identical products (BUSINESS JOURNAL [DENVER]). • The GEORGIA Supreme Court strikes down a 2005 Peach State law that imposes a $350,000 cap on noneconomic damages in medical malpractice cases. The court ruled that the law was unconstitutional because it violates a plaintiff's right to a jury trial (ATLANTA JOURNAL-CONSTITUTION).  
 
SOCIAL POLICY: The GEORGIA Senate approves SB 67, which would require written and oral driving tests to be given only in English. The bill moves to the House (ATLANTA JOURNAL-CONSTITUTION). • The NEBRASKA Legislature approves an amendment to LB 1103, which would bar abortion providers from performing the procedure after the 20th week of pregnancy. The bill now moves to the second round of debate (LINCOLN JOURNAL STAR).  
 
POTPOURRI: The MISSOURI House endorses HB 1747, which allows horses to be slaughtered for human consumption. The bill, which is intended to get around federal legislation barring federal meat inspectors from working in horse slaughtering plants, faces another vote in the House before it moves to the Senate (ST. LOUIS TODAY). • WASHINGTON Gov. Christine Gregoire (D) signs SB 6345, a bill that makes it a primary offense to be caught holding a cell phone to your ear while driving, or to be reading, writing or sending text messages. The bill goes into effect on June 10th (OLYMPIAN). • The MAINE House and Senate approve SB 666, legislation that would ban the carrying of guns in any national park located in the Pine Tree State. The measure would exempt active or retired police officers and those with concealed carry permits. It moves to Gov.John Baldacci (D) for review (BANGOR DAILY NEWS).

AND THEN WE'LL FORM THE CIVICS TEAM: With a whopping 50-point lead in the race for the CALIFORNIA GOP gubernatorial nomination, you can't blame former eBay CEO Meg Whitman for being a bit heady these days. But poll numbers aside, Whitman apparently still has a lot to learn about government. As the Sacramento Bee reports, Whitman recently said that if elected she would form lawmakers into "work teams" tasked with implementing her agenda. That immediately drew howls from incredulous opponents, who pointed out that the Legislature is an equal branch of government, not under the power of the governor. "Meg's from Long Island, so she might not know that the Legislature already has teams — they're called committees," said Sterling Clifford, a spokesperson for Democratic candidate Jerry Brown. Clifford further suggested that after dumping $46 million into her campaign to date, Whitman should "set aside a few bucks for a CALIFORNIA civics textbook." Ouch. 
 
OPRAH MUST BE NEXT: Speaking of candidate Brown...yes, that was him sitting next to television know-it-all Dr. Phil last week. Brown's appearance on the good "doctor's" daytime chat fest was ostensibly to highlight the dangers of prescription drug abuse and his efforts to battle the problem as CALIFORNIA attorney general. Of course, as the Los Angeles Times reports, the free TV time was also a major blessing to the iconic Dem as he battles the uber-wealthy Whitman to regain his old job as the Golden State governor. Republicans had their own thoughts on Brown's TV stint, with GOP communications director Mark Standriff chirping that the former and maybe-future gov would soon be "swapping cioppino recipes with [TV chef] Rachel Ray." 
 
GET THAT SOB OUTTA HERE: KANSAS lawmakers may have just about had enough of dealing with those darned SOBs. No, it's not what you think. In this case, SOB stands for "sexually oriented business," such as strip clubs and the like. Rep. Joe Patton has introduced a bill that would force such businesses to set up shop away from schools, parks and other family-friendly locales. It would also bar dancers from being nude or from being within six feet of patrons. Backers have shrewdly adopted the "SOB" moniker to help garner support for their cause. The bill has made it through the House, but not without some resistance. As the Lawrence Journal-World reports, some critics claim the measure could put as many as 2,500 Kansans out of work. There is clearly a lot of nude dancing in the Sunflower State.  
 
NO SLAM DUNK WAS THIS: University of KENTUCKY basketball has always been a really big deal in the Bluegrass State. So it seemed fitting to some when legislation was recently introduced to urge the Basketball Hall of Fame to enshrine former Wildcats basketball coach Joe B. Hall, who led the team to a national title in 1978. The House endorsed the proposal, but the Senate rejected it, saying it was improperly tacked on to an unrelated bill. But as the Lexington Herald-Leader reports, the Republican-controlled Senate's rejection may have had more to do with the fact that Hall is a Democrat who has often spoken at fundraisers for Democratic Gov. Steve Beshear. When asked if Hall's politics played a role in the vote, Senate President David Williams would only say, "With Joe B. Hall, you'll have to ask him. I don't know."