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‘Desperate times’: Independent pharmacies fear closure, due in part to pharmacy benefit managers

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mississippitoday.org – Gwen Dilworth – 2024-10-08 12:13:00

Turnage Drug Store survived both world wars, the Great Depression, the rise of chain pharmacies and the decline in popularity of the soda fountain. 

But the 119-year-old Water Valley pharmacy may now be facing its greatest threat yet: untenable reimbursement rates and non-negotiable contracts from pharmacy benefit managers, said co-owner Robert Turnage. 

Turnage is one of many independent pharmacy owners in Mississippi who fear that if more stringent regulations are not imposed on pharmacy benefit managers, their businesses – some of the most accessible health care providers, particularly in rural parts of the – may be forced to close. 

“Everyone here is on the verge of closing their doors if something drastic is not done,” Bob Lomenick, the owner and pharmacist at Tyson Drugs, Inc. in Holly Springs, told lawmakers at the House Select Committee on Prescription Drugs meeting Aug. 21 at the Capitol. The meeting room was filled with independent pharmacists who came from around the state to plead their case with legislators.

Pharmacy benefit managers are private companies that serve as the middlemen between pharmacies, drug manufacturers and insurers. They negotiate pricing and conditions for access to drugs, prescription claims and manage retail pharmacy networks. 

A Federal Trade Commission report published in July sounded alarm bells about the companies’ “extraordinarily opaque” business practices and the considerable influence they exert upon independent pharmacies, or retail pharmacies not owned by a publicly traded company or affiliated with a large chain. 

Pharmacy benefit managers’ anti-competitive business practices have increased prescription drug costs and diminished access to medicine and patient choice about which pharmacy to patronize, the report said. 

U.S. Congress is also investigating the impact of pharmacy benefit managers’ business practices. 

There are about 380 independent pharmacies in Mississippi, said Robert Dozier, the executive director of the Mississippi Independent Pharmacy Association, an organization that advocates for the interests of 180 pharmacy members.

A significant portion of Mississippi’s population, especially in rural areas where chain pharmacies are less likely to exist, is reliant on independent pharmacies, said Meagan Rosenthal, an associate professor in the of Mississippi’s Department of Pharmacy Administration. 

A pharmacy closure in a rural area is likely to create a pharmacy desert, or an area with limited or no access to a pharmacy. Research has shown that pharmacy closures have negative impacts on patients’ health, especially in medically underserved areas.  

Over 300 pharmacies closed nationwide in 2023, said Joel Kurzman, the director of state government affairs for the National Community Pharmacists Association, a national organization that advocates for independent pharmacies. 

“It’s a startling figure,” he said. 

Pharmacy technician Drew Luckett processes a prescription at Brandon Discount Drugs in Brandon, Miss., on Thursday, Oct. 3, 2024. Independent pharmacies are facing financial challenges due to reduced reimbursements from the companies that serve as middlemen between pharmacies, drug manufacturers and insurers. Credit: Eric Shelton/Mississippi

Shrinking reimbursements

Sharon Bonck, a pharmacist at Sartin’s Discount Drugs in , said the rates pharmacies are paid for dispensing prescription drugs to with health insurance have dwindled over the past 10 years. In the past two or three years, however, the rates have become “disastrous” for business. 

Some prescriptions yield negative, or “underwater,” reimbursements, or payments from health insurance plans that are less than the pharmacy’s cost to acquire the drug. Others don’t earn a profit high enough to meet the pharmacy’s average operating expenses.

Pharmacy benefit managers set reimbursement rates for pharmacies by contract. But independent pharmacies often do not have the leverage to negotiate the terms of the contracts.

“I’ve never, never, not one time, been able to negotiate a contract,” said Lomenick. “It’s take it or it. If I don’t take it, I won’t have patients coming into my store.” 

Independent pharmacies are faced with a difficult decision: sign a contract that may not adequately compensate them for their service, or turn it down and lose customers. 

As reimbursement payments for some health insurance plans have waned, pharmacists have begun to more often choose the latter. 

Russell Love, the owner of Love’s Pharmacy, a chain of three pharmacies on the coast, said he stopped filling prescriptions for patients with TRICARE, a health insurance program for military service members and their families, and Magnolia Health’s Ambetter health insurance this year, also due to low reimbursement rates. Beginning in 2025, he will not accept Medicare Part D plans. 

“A lot of can’t get their meds at their local pharmacy,” said Todd Dear, associate director of the Mississippi Board of Pharmacy, at the legislative committee hearing Aug. 21. 

TRICARE prescription claims are managed by Express Scripts, one the three largest pharmacy benefit managers in the country. Together, CVS Caremark, Express Scripts and OptumRx managed 79 percent of prescription drug claims for about 270 million Americans in 2023, according to the Federal Trade Commission’s report. 

These three pharmacy benefit managers also own mail order and specialty pharmacies, health insurance plans, health care providers and companies that market and sell drugs, giving them “significant power over prescription drug access and prices,” wrote the federal agency’s findings. 

The report also indicated that in some cases, pharmacy benefit managers reimburse their affiliate pharmacies at higher rates for specialty, high-cost drugs than for unaffiliated pharmacies.

Express Scripts executives told lawmakers that pharmacy benefit managers work to negotiate rebates with drug manufacturers that result in cost savings for employers who sponsor health plans. 

“Pharmacy access is vital,” said Tony Grillo, Express Scripts’ vice president for supply chain finance. “We do need these independent pharmacists. There are a lot of communities in the state that are small and rural. There’s a lot of communities in this country that are small and rural. We need these pharmacies in our network. It’s not in our interest to put these folks out of business.”

Low reimbursement rates also impact what drugs can access at independent pharmacies, like brand name drugs for diabetes and weight loss, including insulin, antidepressants and inhalers. 

GLP-1 drugs, which are used to treat type 2 diabetes and weight loss, have some of the most untenable reimbursement rates, said pharmacist Michelle Little, the owner of Pharmacy in Hattiesburg. The loss for pharmacies, paired with supply shortages, makes them difficult for patients to access.

Mississippi has some of the highest diabetes and obesity rates in the country. Fifteen percent of Mississippians have been diagnosed with diabetes, and 40% are obese. 

Little said she has been forced to turn patients away due to low reimbursement rates. 

“It breaks our heart,” she said. “…We’re not able to service our patients and customers like we have been in the past.”

Ryan Harper, owner of Brandon Discount Drugs, reviews a prescription at Brandon, Miss. pharmacy on Thursday, Oct. 3, 2024. Independent pharmacies like his are struggling financially because the companies that serve as middlemen between pharmacies, drug manufacturers and insurers have lowered the payments they receive for filling prescriptions covered by health insurance plans. Credit: Eric Shelton/Mississippi Today

Limited health care access

Pharmacies may choose not to fill a prescription due to low reimbursement rates, but in other cases, pharmacy benefit managers restrict which pharmacies insured patients can visit by creating pharmacy networks. 

Robert Turnage said some of his long-time patients’ insurance plans no longer allow them to fill their prescriptions at Turnage Drug Store. For Water Valley residents, that means a 60-minute round trip drive to Oxford, the closest town with major chain pharmacies. 

“That absolutely has consequences for patients,” said Rosenthal, who said patients may choose to go without their medication to avoid driving long distances. 

Pharmacies that participate in pharmacy benefit manager-designed networks usually agree to accept lower payments in exchange for a higher volume of patients, who are required to use an in-network pharmacy. 

Pharmacists fear being kicked out of pharmacy benefit managers’ networks as retaliation for lodging complaints with the Mississippi Board of Pharmacy, the board’s executive director Susan McCoy told lawmakers Aug. 21.

But more and more, she said, pharmacists are coming forward due to the precarious position of their business. 

“It’s getting desperate times,” McCoy said. “Our pharmacies are starting to come to us and say, ‘you know, it doesn’t matter if I get retaliated against, because I’m not going to be here anyway. Go ahead and do what you need to do to take action against the PBMs.’” 

Reform attempts in Mississippi

Three states have passed laws setting reimbursement floors for prescription drugs and requiring transparency of drug pricing, said Kurzman. Several other states have regulations for their state health plans. 

The Mississippi Legislature passed a law in 2020 that gave the Mississippi Board of Pharmacy additional authority to ensure that pharmacy benefit managers are following the law, including levying fines. 

The board completed an audit of Optum Rx this year – the first pharmacy benefit manager the board has audited – but has not yet released its findings.

It took several years for the board to hire staff to carry out the law and receive approval for budget increases due to the high cost of audits, said McCoy. 

But independent pharmacists say the law isn’t enough – setting minimum reimbursement rates and increasing price transparency are desperately needed reforms to ensure that pharmacies stay afloat. 

For the past several years, state lawmakers have proposed legislation to further regulate pharmacy benefit managers.

In 2023, a bill that would have set minimum reimbursements for prescriptions at the national average drug acquisition cost, or NADAC, died in the House Insurance Committee, chaired by Rep. Jerry Turner, R-Baldwyn. 

NADAC is a price index that approximates the amount pharmacies pay for prescription drugs. 

But pharmacists argue NADAC as a baseline is not enough, because it does not factor in pharmacists’ dispensing and operational costs. Arkansas, which uses a NADAC pricing model, will require pharmacy benefit managers to include dispensing fees in their reimbursements to pharmacies, as a result of an emergency rule passed in September.

A 2024 bill that would have increased pricing transparency and prohibited pharmacy benefit managers from retaliating against pharmacies or charging insurance plans or patients more than the amount they paid pharmacies for a prescription died during the legislative session.

The House Select Committee on Prescription Drugs will make recommendations to the state Legislature after several more hearings. 

“I’m optimistic that the State of Mississippi is going to do something,” said pharmacist Chris Bonner, the owner of Chris’ Pharmacy in Columbus. “It’s going to be too late for some people if they don’t do something soon.” 

This article first appeared on Mississippi Today and is republished here under a Creative Commons license.

Mississippi Today

On this day in 2009

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mississippitoday.org – Jerry Mitchell – 2024-10-09 07:00:00

Oct. 9, 2009

Obama accepts the Noble Peace Prize in 2009 Credit: Wikipedia

Barack Obama was awarded the Nobel Peace Prize for “his extraordinary efforts to strengthen international diplomacy and cooperation between peoples.” 

The Nobel praised Obama’s “dialogue and cooperation across national, ethnic, religious and political dividing lines. As President, Obama called for a new start to relations between the Muslim world and the based on common interests and mutual understanding and respect. In accordance with a promise he made during his election campaign, he set in motion a plan for the withdrawal of U.S. occupying forces from Iraq.” 

Nobel officials also praised his for a “world from nuclear weapons.” 

He was the third African American to win the award. The previous winners were Martin Luther King Jr. and Ralph Bunche.

This article first appeared on Mississippi Today and is republished here under a Creative Commons license.

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Mississippi Today

Powerful lawmaker helped steer millions in state dollars for his neighborhood, golf course

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mississippitoday.org – Geoff Pender and Taylor Vance – 2024-10-09 04:03:00

House Ways and Means Chairman Trey Lamar has helped steer more than $7 million in state money to improve the affluent country club neighborhood and private golf course area where he lives in north Mississippi. 

In the process, he also purchased more property for himself around the projects. 

The state-funded projects included $2.5 million in upgrades to the county road through his neighborhood and another $2.4 million project on and around the golf course. The stated reasoning for the golf course project is that the road project made it flood — a contention that the county engineer and road project contractor disputed in interviews with .

The work included building a traffic roundabout on Country Club Road — an unusual feature for a rural-suburban street — and 10 speed humps in a 1.6-mile stretch. It also included widening the road so golf carts can more easily travel, according to the county engineer. The work also included building a new lake and concrete golf cart paths and bridges on the private golf course. 

Lamar also helped steer another $200,000 in state money for the nearby city of Senatobia to buy the small water system that serves the Back Acres Country Club neighborhood in Tate County. He then helped steer another $2 million from the state to improve the system, which serves about 200 houses.

Lamar purchased a 4.5-acre piece of property where the roundabout was to be built, and he bought a strip of land bordering his backyard from the water system owner after the city bought the system.

Lamar, as House Ways and Means Committee chairman and former vice chairman, holds great sway over the state’s $7 billion budget. He’s also become the House’s de facto arbiter of “Christmas tree” bills. These are measures full of hundreds of millions of dollars worth of legislators’ pet projects for their districts. As a result, Tate County, Senatobia and his neighborhood have benefited greatly, receiving tens of millions of state dollars — dwarfing spending in similar rural areas across the state.

Lamar in an interview with Mississippi Today defended the spending on his neighborhood. He said the road project was badly needed for safety for a “very dangerous road.” He said the road project then caused on the golf course and surrounding yards and the county was responsible for fixing it.

Lamar said the small water system serving the neighborhood was in terrible shape and the source of many complaints. He noted the state Public Service Commission signed off on Senatobia taking over service.

He said his purchase of property around the state-funded projects was incidental and “like any other sale or purchase … between two private entities.” He insinuated his wife handled the transaction for the roundabout property, although state records indicate he did. 

Lamar cut a second interview with Mississippi Today short, saying he would not answer further questions. But he sent a written statement saying that, “After helping with thousands of projects across the state, this result is inevitable” — that he or his family would own property “in the vicinity of a public project.”

He refused to answer any questions about his helping secure an additional $400,000 in state money to improve a quiet, already well-paved cul-de-sac in Northeast Jackson where he also owns a home.

“Any potential innuendo of wrongdoing is baseless and only diverts time and effort away from the real progress that we are making,” Lamar said in the written statement.

Country Club Work

Here is what county officials asked contractors to do on a project to upgrade Country Club Road in Tate County, according to the final plans of completed work submitted by the county engineer: 

  • Widened and overlaid roughly 2 miles of Country Club Road.
  • Constructed a roundabout along the road.
  • Removed and replaced roughly 1,600 square yards of concrete driveways.

After Tate County officials completed the first project to upgrade Country Club Road, they spent roughly $2 million more to improve drainage and flood control on the Back Acres Country Club and homes in the Back Acres subdivision.

According to revised bidding documents that outlined the scope of work for the project, here is some of the work contractors were expected to complete:

  • Clear and grub 22 acres of land.
  • 1,560 square yards of asphalt.
  • Replace roughly 270 square yards of concrete driveway.
  • Remove and replace 6 golf cart bridges.
  • Use 9 tons of commercial fertilizer. 
  • Use 12 acres of seeding.
  • Use 48 tons of vegetative material for mulch.
  • Use 18,000 square yards of solid bermuda sodding.
  • Create 3 retention structures and 1 detention structure.

But there has been debate and questions from local about whether the Country Club Road project completed early last year was really needed or whether the project was overkill. They’ve also questioned the work on and around the private golf course and whether the road project really exacerbated country club flooding. 

Locals created a Facebook page called “TateCounty Watchdogs,” with its posts and comments centered on the state-funded county work at the country club.

The watchdog group has questioned why, if the road project caused flooding on the golf course and surrounds, taxpayers funded the more than $2 million fix instead of the county going after surety with the contractor or engineer to it.

Numerous current and past Tate County supervisors declined to answer such questions or did not respond to calls requesting interviews. Others said they know very little about the country club projects.

There was a common theme among many of the dozens of residents and county and state officials including lawmakers Mississippi Today interviewed or attempted to interview: They cited fear of the powerful lawmaker Lamar in declining to comment on the record. 

For fellow lawmakers, Lamar holds the purse strings in the House for projects in their districts. For locals, Lamar’s family is a prominent one. His family law firm serves as legal counsel for Tate County, including the county board of supervisors that approved the projects in question. Lamar’s father served as county attorney before the county contracted the work with the firm. Lamar’s mother is a former state Supreme Court justice and Institutions of Higher Learning college board member.

‘Mother Nature caused the flooding’

Country Club Road and Back Acres Country Club in Tate County.

Tate County Engineer Kevin McLeod, whose firm designed the Country Club Road and golf course projects, said the road “was mainly a safety and maintenance project.”

“Safety in that speed bumps were added, it was repaved and we added a 4- or 5-foot paved shoulder on one side so golf carts could travel safely,” McLeod said. “At public meetings, people were saying golf carts were using the road but it wasn’t wide enough for them to travel safely.”

McLeod said that despite “some residents who think that’s the case,” the road project did not cause flooding.

“The road project did not cause flooding,” McLeod said. “Mother nature caused the flooding.” He said that as the project was nearing completion, the area had two massive rains, “where even the best areas would flood.” He said residents mistook the historic deluges as the project causing more flooding. 

“Soon after that we got phone calls — not many, but a few — from people who said it never did this until the road project started,” McLeod said. He said a retention pond on the front nine holes of the golf course had a bad standpipe. He said two main ditches through the country club, one through the front nine holes and one through the back nine, “had not been maintained in years.”

Bram Billingsley, owner of Ste-Bil Grading that did the Country Club Road project, said he built the road as designed and, “I find it hard to believe that what we did caused all this drainage work on the golf course.”

“All I know is we did the work as designed, or the county wouldn’t have paid us,” Billingsley said. “Now we’re being blamed … If they think it’s the fault of the contractor, then yes, the county should have done something. We’re bonded 100% on performance and payment. If we were outside our lines, then file a claim on our bond. That would be 1-2-3, just like a blank check. But they didn’t do that.”

According to minutes of the Tate County Board of Supervisors, the county received two letters the road project was causing flooding, one from a homeowner and one from the Back Acres Country Club. The letters had identical wording and called for the county to fix the flooding.

But the county did not file a claim against the contractor for the road work. Instead, Lamar and the Legislature stepped in again, with an additional $2.4 million in state dollars for work to fix drainage on and around the golf course.

County Engineer McLeod said he wrote up an estimate for the drainage work, “the county sent it in, it got put on a list and they were lucky enough to get some funding for it.”

Lamar and McLeod said the county received easements for all the work it did at the country club and in neighbors’ yards. McLeod said all of the curbed concrete golf cart paths the county built “were put in to raise them up so they could act as a levy to slow the water down behind them,” not for ease of golfers getting around.

A representative of the contractor that did the golf course work did not return calls for an interview.

Tate County District Attorney Jay Hale, a former Back Acres Country Club board member who still helps the club board with legal issues, said his sister was the homeowner who wrote the complaint letter because her property had severe flooding from the road project.

“We put the county on notice that they had caused a problem,” Hale said. “… My sister and brother-in-law were getting ready to sue the county. There were numerous complaints from residents. They flooded the country club with that project. It’s moving the same amount of water, but much faster. My sister had videos of water flying down her property. At one point her pool was about to go underwater.”

Hale said Country Club Road was in bad shape and he believes the initial project was needed, though he added, “I guess that’s probably up for debate.” But he said the county was responsible for fixing the drainage afterward.

“None of the country club members wanted (the drainage project),” Hale said. “They understood it was needed for drainage, but it shut down the golf course, at least nine holes at a time, for a year.”

Jason Carter, current Back Acres Country Club board president, said, “This wasn’t a beautification project.”

Hale and Carter said the concrete golf cart paths the county built with state funds — about $200,000 worth — were to replace paths the county destroyed with its drainage work. They said the club liked the way the new paths looked, so it shelled out about $30,000 of its own money to rebuild others on the course to match. They said residents questioning the work could have confused the club’s work with the taxpayer-funded work.

Hale said some of the questions and complaints about the work could be simply because it was done for a country club neighborhood.

“There are about 300 members, out of 28,000 people in the county,” Hale said. “I guess people don’t like seeing money put into where it went.”

Watchdogs take note of ‘Trey Way’

Lamar’s scoring lots of tax dollars for his neighborhood and district has in recent years drawn the ire of some fellow lawmakers. But it has also raised questions and attracted scrutiny from his own constituents.

The TateCounty Watchdogs Facebook page was formed in June, about the same time Mississippi Today started receiving messages and questions about the work.

Some locals have nicknamed Country Club Road “Trey Way.” They’ve questioned the government doing work in and around Back Acres Country Club and whether work on the golf course was more about golfing than drainage.

“This project is spending just over $2.1 million dollars on the Back Acres Country Club private golf course,” the initial Watchdog post said. “Over $200,000 is being spent on golf cart paths per itemized listing.” 

A later post said: “The next step is to inspect the premise under which all this Tate County money was spent on a private golf course, rather than the abundance of the public property issues we have … Who is the responsible contractor, and why was his bond against surety company not pursued?”

Another post said: “It is common knowledge the back 9 flooded before the road project. If the damage was caused by the county road project, why can’t the county explain which contracted party is responsible?” One local commenter on the page said, “Country Club road was the best road in the county before they did the work.”

But the administrator of the TateCounty Watchdogs page, contacted through private message, declined to identify themselves or speak about the issues on the record. Numerous other residents contacted shared that trepidation.

Residents early last year did publicly voice complaints and sign a petition to the county about the large number of large speed humps on the improved Country Club Road – 10 in less than two miles. They said the speed humps, roundabout and two three-way stops were ridiculous and could impede first responders to traverse the road. Lamar addressed residents at a hearing about the speed humps and said they were needed for traffic safety. But after the complaints, the county came back and milled off half of the speed humps.

The roundabout at the entrance of Country Club Road — the first of three state-funded roundabouts for the Senatobia area.

Residents have had trouble getting answers from county . Several present and past county leaders contacted by Mississippi Today brushed off questions, claimed they knew little about the projects or didn’t return calls and messages. About a month after Mississippi Today submitted written questions, the county supplied some written statements but did not answer some main questions.

Tate County Supervisor Leigh Ann Darby represents the area. She notes she took office in January and “this project predates me.”

Darby said she knows little about the projects, but is aware of the questions being asked about them, including why the county didn’t go after contractor surety if the road caused flooding.

“I would say, yes, a lot of money was funneled into that project for a public road, then was rolled over into the golf course,” Darby said. “I know that question has been posed numerous times. I have not heard a definitive answer to that.”

Darby said she joined the Back Acres Country Club long ago but has not been an active member for years.

“I was not involved in any aspect of obtaining that money,” Darby said. “I don’t play golf. My family doesn’t, and I don’t even travel that road often … But I am for complete transparency, and I am raising questions, too … I saw the public records request you sent up here … I am for complete transparency and I don’t want Tate County hiding anything.”

Current Tate County Board President Tony Sandridge was a supervisor when the projects were approved, but he said he also knows very little about them.

“If it’s not in District 3, I’m really not sure about it,” he said. 

Supervisor George Stepp said he is new to the board and knows little about it other than, “It was all state funded, no money from the county – I can tell you this … I try to stay away from some of this. I don’t get too involved.”

About a month after receiving written questions from Mississippi Today, the Tate County Board of Supervisors responded in writing with a letter signed by Sandridge, but the responses left much unanswered.

“Current elected officials and staff do not have the knowledge to answer questions surrounding the history of this project other than what is recorded on the county’s official minutes,” the written response said. “… Tate County, to our knowledge, has never made a finding as to the cause of the flooding. Whether the flooding existed prior to the road project, worsened after the road project, or was caused by extreme weather that are the acts of God, the Tate County Board of Supervisors realized a problem existed …”

The statement said the two letters received about flooding “are the only two formal complaints ‘as a result of the project’ made to the county and spread on the minutes” but one other nearby neighbor in 2022 complained to the board about drainage.

The statement did not answer why, if the project caused or exacerbated flooding, the county did not hold the contractor or engineer accountable. Instead, Sandridge wrote, the county was doing work “necessary to promote the health, comfort and convenience of the inhabitants of Tate County.”

The county’s response noted that when the initial, partial state funding for the project was secured, the county was under the “beat system” where each supervisor manages roads in his or her district, and that former Supervisor Cam Walker who retired in 2019 was in charge of that district.

Walker, whom Mississippi Today had been unable to reach for comment, provided a brief written statement as part of the county’s response. He said the road was dangerous and he had been working to improve it since at least 2006, but was unable to secure funding. He said he attended at least two public hearings when he was in office where citizens demanded the road be “improved and made safer.”

‘That’s a private transaction’ 

Rep. Trey Lamar’s house on Country Club Road in Tate County.

Lamar built his home on Country Club Road on the outskirts of Senatobia in 2015. 

In 2018, as the Legislature struggled to find money in austere times for badly needed infrastructure improvements statewide, Lamar helped secure $1 million for overhauling Country Club Road. The money sat in the county’s bank account for a while. In 2020, Lamar helped steer another $1.5 million to the road.

In 2018, Lamar defended funding for the project after it was temporarily axed from the legislative spending bill and a reporter asked about it being the road on which he lives. He said it’s a main thoroughfare that badly needed safety improvements and at least two people had been killed on it. Records show there were two traffic deaths on Country Club Road – one in 2004 and one in 2016.

Lamar said at the time, “I don’t apologize for working to help my people. That is my job.”

In 2022, Lamar helped create the Tate County Erosion Control and Repair Fund with state legislation. To date, the country club golf course area work is the only project that has been completed through the fund.

Lamar said there is nothing untoward about him buying property related to the Country Club Road project or the city takeover of the neighborhood water system after helping fund them with state dollars. 

JT Delta Company LLC bought the 4.5 acres on the north of what was to become the new roundabout on the road after the state funding was approved. Lamar said, “My wife owns that LLC … and it’s a real estate company.” But state records show Trey Lamar as the only officer and registered agent of the LLC, and it appears he handled the paperwork for the purchase.

“That’s a private transaction,” Lamar said. “It had nothing to do with the county, so it’s like any other sale or purchase of real estate between two private entities … That project was already decided on when that purchase was made. I don’t design roundabouts or design intersections. So that’s something that would have been done by the county and the county’s engineer.”

Lamar said that after the city of Senatobia bought the small New Image water system serving the country club neighborhood, it hooked the area up to the city system and didn’t need the small strip of property the small system owned adjacent to Lamar’s backyard. 

“It’s, I don’t know, a tenth of an acre,” Lamar said. “So when the city purchased that system, they abandoned that well, and I think they sold the equipment that was there … That system was owned by one gentleman … and left him owning a tenth of an acre or whatever … I purchased that in a private transaction … that had nothing to do with the water system.

“I’m not on city water,” Lamar said. “I wasn’t on the New Image system … I’m on a private well.”

Lamar said he made the land purchases after the state funding and projects were approved.

State law prohibits public officials from using their official positions to obtain, or attempt to obtain, financial benefit for themselves.

cards visualization

State Ethics Commission Director Tom Hood, speaking generally and not about Lamar or the country club projects and land deals, said a public official helping secure improvements to his neighborhood or street would not necessarily pose a legal issue. He noted a past Ethics Commission ruling that said a city could extend its water system to land owned by a mayor.

“If you’ve got to speculate about something affecting property value, then that’s not enough,” Hood said. “If there’s no pecuniary benefit, then there’s no violation. You have to prove monetary benefit to somebody caused by the government action … Even going from a gravel road to a paved road, if the only benefit is you don’t have to wash your car as much — those are difficult questions.”

Hood said a public official purchasing property around a public project also wouldn’t automatically pose an ethical question.

“That could be a problem if they were using nonpublic information for the purchase,” Hood said. “But if the information was already public, that statute wouldn’t apply … The short answer on these situations is: it depends.”

Meanwhile, TateCounty Watchdogs, which recently had more than 2,200 followers, posted: “In our opinion, even if it was all ‘State money,’ that is no justification to use public monies in this way. Every working Tate Countian pays income tax in to the state of Mississippi. The state then allocates some of that money back out to the counties for roads, infrastructure and whatnot. If our County is placing these dollars into private properties, it will require that much more in County taxes for Tate County to meet her obligations.

“Stay tuned to avoid being taken advantage of as you live your life in and around Tate County,” the post concluded.

READ MORE: Click here to return to the series summary

This article first appeared on Mississippi Today and is republished here under a Creative Commons license.

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Mississippi Today

Quiet, well-paved Jackson cul-de-sac to get makeover thanks to powerful lawmaker who bought home there

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mississippitoday.org – Taylor Vance and Geoff Pender – 2024-10-09 04:02:00

In a capital infamous for its crumbling roads and lack of money to fix them, a powerful lawmaker helped steer $400,000 in state taxpayer funds to repave a small, already well-paved northeast cul-de-sac where he owns a house.

Simwood Place, located in the affluent LoHo neighborhood of northeast Jackson, is a sleepy residential street home to 14 colorful, single-family homes. It’s tucked away behind The District at Eastover, a multimillion-dollar retail along Interstate 55 that boasts high-end shops and restaurants.

This isn’t the typical kind of road the state of Mississippi would usually get involved in. But House Ways and Means Chairman Trey Lamar, one of the most influential leaders at the state Capitol, owns one of the 14 homes on the street.

The entrance to Simwood Place in Northeast Jackson — before the $400,000 taxpayer-funded repaving project has begun.

Lamar is a top lieutenant of House Speaker Jason White and the House’s point person for deciding how state money is doled out in the ‘s annual local projects bills, commonly called the “Christmas tree bill.”

Public land records show that Lamar’s business, JT Delta Company, purchased a Simwood Place home in August 2023. Just a few months later, in the next legislative session held in early 2024, the $400,000 Simwood Place repaving project was approved by state lawmakers. This appropriation, tucked into a lengthy bill, later surprised some lawmakers and local city leaders.

Democratic Sen. David Blount and independent Rep. Shanda Yates, the two state lawmakers who represent that part of Jackson, told that they did not ask legislative leaders to appropriate money for the project, which is usually how local projects receive funding. 

“This was not one of my projects,” Yates said. “I don’t know anything about it.” 

Lamar declined to answer any specific questions about the Simwood Place appropriation, abruptly ending a telephone interview with Mississippi Today about state dollars he’s secured for various projects and the property he owns near those projects. Mississippi Today subsequently sent Lamar a list of written questions about the Jackson property, and he also declined to answer those.

However, he told Mississippi Today in a general statement that it was “inevitable” that his family members would own private property near public road projects.

“Any potential innuendo of wrongdoing is baseless and only diverts time and effort away from the real progress that we are making,” Lamar said.

Mississippi law states that public cannot use their official office, either directly or indirectly, for “pecuniary benefit” or to somehow enrich themselves. 

State Ethics Commission Director Tom Hood, speaking generally and not about Lamar or the Simwood Place project, said a public official helping secure improvements to a street where they own a home would not necessarily pose a legal issue. 

“If you’ve got to speculate about something affecting property value, then that’s not enough,” Hood said. “If there’s no pecuniary benefit, then there’s no violation. You have to prove monetary benefit to somebody caused by the action … Even going from a gravel road to a paved road, if the only benefit is you don’t have to wash your car as much — those are difficult questions.”

Legislative leaders keep tight control over what gets added to the final Christmas tree bill, which becomes a powerful political tool for keeping rank-and-file members in line with the leadership’s policy agenda. 

But it’s become increasingly common in recent years for the top lawmaker who controls excess funds like Lamar, to have large power over how much money they can steer toward their personal pet projects. 

Jackson-area lawmakers have asked legislative leaders for years to help fund local road projects, and they claim those requests have continuously fallen on deaf ears, making the Simwood Place project even more notable.

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The legislation that allocated the funds for the Simwood Place project routed the money through the Capitol Complex Improvement District’s Project Advisory Committee, a board composed of local and state appointees who recommend to lawmakers which Jackson-area projects they should fund.

The CCID is a carveout of the capital city that receives extra state funding and police protection, and Lamar has passionately and successfully pushed to expand that district further into the city, the area of Jackson where his home is located.

During the 2023 session, Lamar successfully led the effort to pass legislation that created a separate CCID court system within Jackson — the Blackest large city in America — that will be entirely appointed by white state officials.

In October 2023, the CCID’s project advisory committee published a prioritized list of infrastructure projects that used an objective scoring . The master plan did not identify Simwood Place as one of its priorities.

Rebekah Staples, the CCID committee chairwoman, told Mississippi Today that the Legislature used the organization as a pass-through for several infrastructure projects the committee members didn’t ask for, though she didn’t think that process was necessarily bad. She’s currently reviewing those projects.

While she respects the Legislature’s power to appropriate state dollars, Staples said one of her main goals going forward is to ensure lawmakers are informed of the committee’s scoring process and how it prioritizes road projects.

Ward 7 Jackson City Councilwoman Virgi Lindsay represents Simwood Place at the local level and is a member of the CCID committee. She said she did not ask lawmakers to spend money repaving the road and knew almost nothing about the project.

“If I had asked for this, I would have worked it through the city’s Public Works Department or the 1% sales tax committee,” Lindsay said.

The Department of Finance and Administration, the entity that will eventually disburse the money for the Jackson repaving project, has yet to release the funds to the CCID committee, so the work to improve the road has not begun.

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This article first appeared on Mississippi Today and is republished here under a Creative Commons license.

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