An ounce of prevention is worth a pound of cure. That's true in life and law. House Bill 636, which I sponsored, would stop financial exploitation of elderly Missourians before it occurs.
Through decades of work and savings, seniors are the nation's wealthiest demographic . They're also the most likely to suffer from dementia or cognitive deficits. As a result, American seniors are the group most targeted for financial fraud. The Securities Industry and Financial Markets Association estimates that one in five American seniors have been victims of financial fraud.
Missouri law particularly punishes those who exploit seniors and vulnerable adults with enhanced sentences and heavy fines. But financial fraud cases are complicated and rare. They require forensic accounting and few local law enforcement agencies or prosecutor's offices have the necessary financial expertise. In addition, SIFMA estimates that family members, caregivers or "friends" commit 55 percent of financial exploitation.
Typically, the victim doesn't know they've been cheated, or, they may be embarrassed to report it because it involves someone close to them. Or they may fear a caregiver will retaliate.
If they know, the victim routinely lacks the financial sophistication to explain the scheme to law enforcement. And local law enforcement is unlikely to have specialized knowledge necessary to unravel complicated frauds.
HB 636 takes a proactive approach. Instead of reassembling the puzzle, it would empower financial professionals to protect senior savings on the front end by encouraging them to report instances where they have a reasonable belief that financial exploitation is afoot.
The bill would permit professionals to report the suspected fraud to family members, the Department of Health and Senior Services, and the Secretary of State's office so the appropriate parties could conduct an investigation. Once a report is made, the financial professional could freeze suspect disbursements for 10 days.
Washington and Delaware have passed similar laws. Sen. Eric Schmitt has sponsored an identical bill (SB 244). Both bills have the support of seniors' groups, the financial industry, and Secretary of State Jason Kander. Hopefully, Missouri will join the vanguard. The first step on the House side starts Monday afternoon when the Banking committee will hear HB 636.
Right to work
The Missouri House passed right-to-work legislation this week with over 90 votes. House Bill 116 provides that "no person shall be required as a condition or continuation of employment to" join or refrain from joining a union.
I voted yes for two reasons.
First, economic growth - over the past three decades, right-to-work states have grown at significantly faster rates. Likewise, average personal income in right-to-work states has also increased at a significantly faster clip.
Of course, correlation is not causation. Many right-to-work states are in the south. Right-to-work opponents point to raw economic statistics from the south as "proof" that RTW lowers wages. However, the south started prior to the passage of RTW laws with much lower wages and economic activity. They had little industry or transportation infrastructure.
The south remains the poorest region of our country. But it's catching up fast. Anecdotal evidence suggests that while the car industry has struggled in Ohio and Michigan (bailouts anyone?), it has flourished in the south.
Studies controlling for other factors have found RTW improves state economies. A 1998 study by Thomas Holmes of the Minneapolis Fed found that, from 1947 to 1992, in counties within 25 miles of a RTW border, manufacturing jobs increased one-third faster in RTW states than in non-RTW states.
Second, in the recurring battle between forced-collectivism and self-determination, I choose the latter. These competing mindsets are present in a broad swath of bills considered by the General Assembly: health care, education, and right-to-work. Just as I support each individuals' right to keep a health care plan they like and each parents' right to choose the best education for their children, so too do I support giving every Missourian a statutory right to choose the organizations they wish to join free from the pressure of having to do so in order to work.
Ethics bill updates
The House Committee on Government Oversight and Accountability will move quickly on ethics bills. Senate Bill 11, sponsored by Sen. Ron Richard and which passed through the Senate this week, was referred to our committee on Thursday. Among other things, Sen. Richard's bill would (1) end the "revolving door," (2) require lobbyists to accurately report for whom they are working, (3) end gifts hidden through declarations that they are to a group rather than an individual; (4) ban out-of-state travel paid for by lobbyists, and (5) require ethics training for elected officials. We've scheduled the bill for a hearing next Monday. I plan to vote it out of committee the following week.
State employee pay raises
On Thursday, the Appropriations committee for General Administration voted four budget bills out of committee. I offered an amendment to increase state employee salaries by one percent. Of course I realized this would not even keep pace with cost of living. I also knew it would be difficult to garner enough support for even a small increase. In the end, my amendment was rejected in a roll call vote. As a result, I voted no on House Bill 5 - which is where the pay increase would have gone. I will continue to work to try to get a pay increase in this year's budget. We shouldn't be last in the nation in state employee pay. The odds, however, remain long.
State Rep. Jay Barnes, R-Jefferson City, represents Missouri's 60th District.