SPECIAL SESSION ENDS

JEFFERSON CITY - State legislators have brought to a close a special session designed to address problems caused by river flooding this summer, after passing four pieces of legislation.

Although the House and Senate completed its work Thursday night, lawmakers have not formally adjourned. They want to keep the special session open because of the threat of new flooding.

"We did not fully adjourn because we have 60 days for the special session and we will be available to come back if we have to for another flood emergency," said Rep. Larry Thomason, D-Kennett, the House majority whip.

Area legislators agreed the session went well and expressed satisfaction that everyone went to Jefferson City, dealt with the problems at hand as quickly as possible and then came home.

"I was extremely pleased that members from both parties worked together to pass the funding necessary to match the federal flood assistance without a tax increase," said Sen. Peter Kinder, R-Cape Girardeau. "As the rain continues and the water levels rise, we must be prepared to assist the people whose lives have been badly damaged by the flood of 1993."

Rep. Mary Kasten, R-Cape Girardeau, added: "I think we provided some pretty good relief for flood victims. Some of the other issues may have to be resolved later, but we did a good job addressing immediate needs that the special session was called for."

The General Assembly approved bills to fund flood repairs for state facilities; give bonding authority to the state highway department of up to $25 million; allow property owners affected by the flood until July 1 to pay property tax bills; and provides state-backed flood insurance for certain businesses, primarily in St. Louis County.

Rep. Dennis Ziegenhorn, D-Sikeston, was involved with a controversial bill in his role as chairman of the House Insurance Committee.

The bill, sponsored by Sen. Tom McCarthy, R-Chesterfield, passed the Senate and came to Ziegenhorn's committee. The bill was designed to fill the gap in flood insurance protection for businesses wanting to rebuild that suffered flood damage.

He explained that banks would not make loans to businesses to rebuild unless they were insured. But federal flood insurance provided only $250,000 coverage on property and $300,000 on contents, and private insurers were offering coverage with $1 million deductible.

"There was a $750,000 gap that needed to be filled there," said Ziegenhorn. "The bill that passed in the Senate said all property insurance policy holders could be assessed 1 percent on their premiums, if the flooding occurs again."

Ziegenhorn and other House members argued that such an assessment, which would generate $45 million, was in effect a tax increase for all citizens.

"It would not have been right at all for that to have passed," said Ziegenhorn. "We feared this would be precedent setting; we did not want to charge people to provide insurance for an area where they do not live in and would receive no benefits from."

On the other hand, the state stood to lose 4,500 jobs if businesses in the Chesterfield area were unable to rebuild and have some kind of insurance protection.

Under an alternative plan, the Office of Administration will oversee a program that will enable businesses to purchase the coverage they need through the state. Ziegenhorn said rates are about five times what the normal flood insurance rates would be, but he believes it will preserve the jobs.

"This coverage is not for new construction, only for rebuilding of existing buildings," said Ziegenhorn. "This will only apply to areas where there is protection by a 100 year flood levee."

He added, "The bill was dead when it came over to us. In its original form the bill was killed by our committee. But we felt like we needed to help the people in some way and try to save those 4500 jobs, so we came up with an alternative plan."

Kasten and Kinder say they are pleased with the property tax extension bill that was passed. Flood victims can pay their tax bills on July 1 instead of Dec. 31 and not be penalized. The bill also provides a method for levee districts to collect funds to rebuild levees by issuing tax anticipation notes.

Kasten, who is a member of the House Budget Committee, served on a special subcommittee that looked at funding alternatives before the special session was called. She also served on a conference committee that resolved differences between House and Senate versions of the appropriations bill.

The appropriations bill totaled $44 million that will be needed to pay for costs of fighting this summer's flood and for clean up and repair to public facilities. The state Rainy Day Fund will provide $16 million of this funding.

Ninety percent of the state's flood damages are being paid by the federal government.

"In our conference committee, we scrutinized costs very closely and I feel like we have a final appropriations bill that makes wise use of the state's resources," said Kasten.

Although the highway department's bonding authority is limited to $25 million and designed to enable it to meet time limits on spending federal disaster funds, the department may seek legislative approval to use bonds to speed up work on its 15 year construction plan.

Rep. Mark Richardson, R-Poplar Bluff, said he was pleased that legislators kept their focus on flood problems.

Said Richardson: "What we needed to do was come up here and take care of the flood victims -- do what we need to do and then go home. We finished the work we were called to do and now it's time to be back in our districts where we belong."

Legislators will return to work for a four and a half month regular session in January.