A look back at the 2007-08 session

With the Legislature on a brief summer break, I thought this would be a good time to review some of the major issues the House and Senate have taken up this session.

While the Legislature can point to several accomplishments, there are a few important policy areas where I think we fell short. The following is a brief overview of some of the issues that have been debated this year.

Identity Theft – Perhaps the biggest consumer issue tackled by the Legislature this year was the growing problem of identity theft. A series of high-profile security breaches at companies likes T.J. Maxx and the Boston Globe resulted in the release of many customers’ personal information, leaving hundreds of thousands of Massachusetts residents vulnerable to fraud.

Thanks to a new law signed last week, companies are now required to identify and report security breaches in a timely fashion. Also, consumers can now request a “security freeze” to prevent the unauthorized release of their personal information by the three major credit reporting agencies.

GIC Opt-In - Many cities and towns have been struggling to balance their budgets in the face of rising employee and retiree health care costs. To help municipalities get a handle on these costs, the Legislature has given them the option of purchasing their health insurance through the state’s Group Insurance Commission (GIC).

To join the GIC, 70 percent of a community’s union employees and retirees must approve the plan.  GIC rates are expected to rise by about 5 percent next year (less than half the 11.3 percent increase projected for all other employers), and cities and towns collectively could save as much as $180 million a year by opting in. Joining the GIC may not make fiscal sense for all communities, but it’s good to know this option is available.

Pensions - Another possible source of municipal relief is the new pension law, which allows the state to review the investment performance of local pension funds and assume control of underperforming pension assets to generate higher investment returns.

Initially, I had some reservations about this policy change because it would take control away from local pension boards. As the legislation made its way through the process, however, it was amended to protect communities. The final version defines a local fund as “underperforming” if its assets are less than 65 percent of its liabilities and its average 10-year rate of return is at least 2 percent less than the state’s current rate of 10.51 percent.

Sudan Divestment – Following the lead of 18 other states, the Senate voted in June to withdraw all of the state’s pension fund investments from foreign companies doing business with Sudan. Like the South African divestment movement of the 1980s, this effort is designed to send a strong message condemning the Sudanese government’s genocidal policies.

During the Sudan debate, the Senate Republican Caucus tried to expand this divestment effort to include other nations on the U.S. State Department’s Terror Watch list, including Cuba, Iran, North Korea and Syria. These amendments drew support across party lines, but not enough to pass. A new bipartisan effort is now underway to ensure that state employees and retirees are not unwittingly providing financial support to countries that sanction terrorist activities.

Welfare Reform - Last month, the Senate passed legislation touted as the first major reform of the state’s welfare law in 10 years. Having served on the Conference Committee that put together the landmark 1995 Welfare Reform Law, I have to say I was disappointed with the end result.

Instead of taking steps to ensure that welfare remains a transitional program that promotes self-sufficiency, the proposed changes only perpetuate a system of dependency that has led some to see welfare as a way of life, which it was never intended to be.

Our welfare law was once the national standard. Today, we are far behind many other states in the number of able-bodied recipients meeting their work requirement. Hopefully, the House will put some teeth into this bill when it comes up for debate.

Booster Seats - Under current state law, children younger than 5 years old and weighing less than 40 pounds are required to ride in a car seat, and children between the ages of 5 and 12 must wear a safety belt. Last week, the Senate approved a bill that requires children who have outgrown a car seat to use a booster seat until they turn 7 or are 4 feet 9 inches tall.

Statistics show that children in booster seats are 58 percent less likely to be killed in a car crash than those using a safety belt. If approved by the House and signed by Gov. Deval Patrick, this change should help save lives.

Tax Relief - For the fourth consecutive year, the Legislature approved a sales tax holiday for Massachusetts. Last weekend, consumers were able to purchase many taxable items costing less than $2,500 without having to pay the sales tax. This two-day “holiday” provided temporary tax relief for residents while boosting sales for retailers.

Ironically, while taxpayers get a two-day reprieve from the sales tax, Hollywood producers can get a tax break 365 days a year. That’s because the Legislature passed an expanded Film Tax Credit this year to attract more movies to Massachusetts. If anyone deserves a tax break, it’s the hard-working taxpayers of Massachusetts, not Hollywood.

During the sales tax holiday debate, the caucus offered an amendment to finally repeal the “temporary” income tax increase that took effect almost 20 years ago. Under this proposal, the income tax rate would have dropped to 5 percent by Jan. 1, 2009.

Although the amendment was ruled out of order for “exceeding the scope of the bill,” I want to assure my constituents that I will continue to push for permanent tax relief for the residents of the commonwealth.