Iowa House of Representatives State Representative

Linda Upmeyer

Address: State Capitol, Des Moines, IA 50319 Phone: (515) 281-3221 E-Mail: [email protected] For the week of March 24—28, 2008

Appropriations

Revenue Estimating Conference to Meet April 4th, Majority Party Looking to Spend Additional Revenue

In an exchange on the House floor this week, Representative McCarthy said the majority party had a balance sheet but would not be sharing it because it would be “meaningless”. This is because the majority party is waiting until after the Revenue Estimating Conference (REC) meets on April 4 to decide if they should scoop any additional revenue that is forecasted.

The REC consists of Charlie Krogmeier (Department of Management Director, Governor’s designee), Dennis Prouty (Legislative Services Agency Director, Legislature’s designee), and David Underwood (retired CFO and Treasurer, AADG, Inc. in Mason City, designee of the other two members).

The REC is responsible for setting the revenue estimate to be used by the Governor and the Legislature when formulating the budget. According to Chapter 8.22A of the Iowa Code:

• By December 15 of each fiscal year the conference shall agree to a revenue estimate for the fiscal year beginning the following July 1. That estimate shall be used by the governor in the preparation of the budget message and by the general assembly in the budget process.

• If the conference agrees to a different estimate at a later meeting which projects a greater amount of revenue than the initial estimate amount agreed to by December 15, the governor and the general assembly shall continue to use the initial estimate in the budget process for that year.

• However, if the conference agrees to a different estimate at a later meeting which projects a lesser amount of revenue than the initial estimate amount, the governor and the general assembly shall use the lesser amount in the budget process for that fiscal year.

The REC gross revenue estimate for FY 08 is 6.9 percent and the estimate for FY 09 is 2.7 percent. Although there are some ominous economic signs on the horizon, year-to-date revenue growth is running at 11 percent above FY 07. Therefore, while the REC might stay at 2.7 percent for FY 09 (or go lower), it will be more than made up for by the expected increase for FY 08.

If, for instance, the REC were to increase the FY 08 estimate to 7.9 percent, it would increase available revenue by $60 million provided they do not increase the estimate for tax refunds. That would allow the REC to lower the estimate for FY 09 to 1.8 percent. This is because 1.8 percent growth on the higher base of 7.9 percent will actually generate just as much revenue as 2.7 percent on a 6.9 percent base.

Since Krogmeier will likely push for the higher estimate for FY 08, he will probably have to agree to lower the FY 09 estimate in order to address Underwood’s concerns about the future of the economy. Conversely, with revenue running above 11 percent, it will be difficult for Underwood to argue that the FY 08 estimate should not be revised upward.

Under this scenario, the majority party would not have to notwithstand the expenditure limitation law (as outlined above) because they would simply be increasing the amount of supplemental appropriations and like last year, allow the money to be carried forward into FY 09. Considering they approved $50 million of supplemental spending in FY 07 which was carried forward into FY 08, this would be one way to increase spending without having to notwithstand the expenditure limitation law.

Despite these additional funds however, the majority party will need one-time proceeds from another round of tobacco securitization ($103.3 million) and shift up to $90 million of general fund spending into the Rebuild Iowa Infrastructure Fund (RIIF) in order to finance the excessive spending approved last year. This level of spending (approaching $1 billion over two years) is simply not sustainable.

House Republicans continue to push for sunshine when it comes to Iowa’s budgeting process in anticipation of the REC meeting on April 4.

Agriculture

DNR Reminds Livestock Producers/Crop farmers to Test Soils Before Applying Manure

On Thursday, March 20, 2008, the Department of Natural Resources (DNR) issued a press release reminding farmers who apply manure this spring that under revised DNR rules that went into effect last September they must sample and analyze their fields concerning the amount of phosphorus and the acidity in the soil before manure is applied. This change in manure application regulation is due to full implementation of the phosphorus index that estimates the potential for this crop nutrient to move from the soil and into our state’s surface waterways, where an excess amount of this element can cause significant degradation of water quality. The phosphorus index takes into account the lay of the land, the distance from a stream and the phosphorus that is in the land. The phosphorus index has been required of livestock producer who built new confinement feeding operation for the last several years, but is not required for everyone who is required to submit a manure management plan. The soil testing aspect of the phosphorus index requires at least one soil sample for each 10-acres in a field that will be fertilized with manure. Producers may keep the result of the test on site, but must use the information to complete a manure management plan (MMP) using a phosphorus index every 4 years. DNR stressed that it will not be granting exemptions or extension of the deadline for P-index-based MMP and failure to meet this timeframe will result in enforcement action with a significant fine.

For more information about this requirement visit the DNR Web site: www.iowadnr.gov/afo/mmp.html#phosphorus or www.iowadnr.gov/afo/files/pindex_fs.pdf. Check the Iowa State University soil fertility Web site for information about soil sampling at extension.agron.iastate.edu/soilfertility/. Finally, more information about the P index can be found in back issues of Odor and Nutrient Management at the Iowa Manure Management Action Group’s Web site at http://extension.agron.iastate.edu/immag/pubsnl.html.

The DNR also issued a related press release n March 20, notifying livestock growers responsible for developing MMP that they can now update the yield data for corn and soybeans which affect the calculation of how much nitrogen from manure might be used by the ensuing crop. Each year the National Agricultural Statistical Service calculates average yields in all Iowa counties. Producers can use the county averages from the last five years to determine their optimum yield for developing a manure management plan for the DNR. Producers can find the updates in Appendix A of the

2 DNR’s manure management plan. It’s available in DNR field offices and on the DNR Web site at www.iowadnr.gov/afo/forms.html .

USDA Secretary Announces New Conservation Security Program Sign-Up

On Wednesday, March 19, 2008, United States Department of Agriculture (USDA) Secretary Ed Schafer announced a sign-up for the Conservation Security Program (CSP). It is available starting on April 18 to approximately 64,000 potentially eligible farms and ranches in 51 watersheds covering more than 23.7 million acres.

"As President Bush has said, those who depend on the land to make a living are the best stewards of the land," said Schafer in a USDA report. "Since the first sign-up in 2004, CSP has offered payments for enhancing natural resources, rewarding those farmers and ranchers who are model conservationists, and providing incentives for other producers to achieve those same high standards of conservation in agriculture." The CSP sign-up is open in the 51 watersheds from April 18 to May 16.

One watershed in Iowa is involved and it is the Middle Iowa with the affective reach beginning just below where Minerva Creek joins with the Iowa (Just West of Albion in Marshall County) to Coralville Reservoir Dam near Iowa City in Johnson County. The Middle Iowa watershed is located in Grundy, Story, Marshall, Tama, Benton, Linn, Jasper, Poweshiek, Iowa, and Johnson Counties in East Central Iowa. More information is available at www.ia.nrcs.usda.gov/programs/csp2008.html. This means that nearly one-million acres (908,299) and an estimated 2,781 Iowa farmland owners are eligible for this CSP sign up.

This is the eighth watershed in Iowa that has been eligible for CSP sign up. The original pilot projects in 2004 involved the East Nishnabotna, and Blue Earth River. In 2005, the Turkey, Upper Wapsipinicon, and North Raccoon watersheds were eligible for CSP sign up. In 2006, the South Skunk, and Little Maquoketa watershed were eligible for CSP sign up. CSP is a voluntary conservation program that supports ongoing stewardship of private, agricultural working lands and rewards those producers who are meeting the highest standards of conservation and environmental management on their operations. Payments can include three components:

1. An annual stewardship component for the base level of conservation treatment

2. An annual component for maintenance of existing conservation practices

3. An enhancement component for exceptional conservation effort. Enhancement activities could include limited pesticide applications, renewable energy generation, and widening existing riparian forest buffers for restoring critical stream habitat. To apply for CSP, NRCS asks potential participants to complete a CSP self-assessment workbook -- http://www.nrcs.usda.gov/programs/csp/ or from local NRCS offices -- to find out if their operation meets the requirements of the program and qualifies for program participation. The self-assessment process is completed using a self-screening questionnaire for each land use to be enrolled.

When this process is completed, the producer submits the CSP workbook to the local NRCS office during the sign-up period and meets with NRCS personnel to go over any additional needed documentation. NRCS will then determine if eligibility requirements are met and provide options for the producer's decision on enrollment category placement. NRCS held the first CSP sign-up in 2004. Today's announcement brings the number of watersheds enrolled to 331 across the nation, covering 247.7 million acres that have been eligible for the program. CSP is offered on a rotational basis in as many watersheds as funding allows.

3 Commerce

House Passes Insurance Mandate Commission bill

On Tuesday night, the House passed a bill that would create a new process in evaluating proposed health insurance mandates. Under House File 2650, a new state commission would review proposals and make recommendations on adopting new requirements for health insurers. While some view this as an opportunity to provide legislators with unbiased information, others see the new commission as another layer of bureaucracy that could end up forcing legislators to take action where it is not warranted.

The Mandate Commission would work as follows: When a bill request would come in to the Legislative Services Agency, the non-partisan agency would make a determination if it contained a mandate. If it did, this would be noted in the explanation of the bill. At the time the bill is filed, the Speaker of the House or the President of the Senate would be prevented from assigning the bill to a committee and would have to refer the bill to the Insurance Commissioner for the Mandate Commission to conduct its review and evaluation.

Once the bill has been referred to the Commissioner, they shall convene the Mandate Commission to do its work. The Commission has 45 days from the time the referral is received by the Insurance Commissioner to perform its duties and prepare a written report. The report will also include a financial analysis prepared by an actuary. The report will include the evaluation of a number of factors grouped into three areas - financial, medical, and public impacts. When the report is concluded, it would be sent back and the bill would start through the legislative process.

During debate on the bill Tuesday night, some of the potential pitfalls in the process would be highlighted. Central among the concerns is the belief that the Legislature would be giving up some of its authority to make these decisions. Another major concern was the loss of independence. If the Mandate Commission recommends the inclusion of a new mandate, will the Legislature be able to say no? Finally, the requirements only apply to bills. Amendments creating new mandates would not be subject to the same process and could circumvent the bill’s intent.

In the end, House File 2650 passed on a vote of 60-39. It now heads to the Senate, where its prospects for passage are unknown.

Economic Growth

Workforce Study Discussed in Committee

Last week the Department of Workforce Development released the results of their comprehensive workforce study. This study was the result of a survey of thousands of Iowa employers and hopes to identify causes and solutions of the looming worker shortage. That same day, representatives from Iowa Workforce Development presented their assessment of this survey to the members of the Economic Growth committee.

The department also noted a difference between what they saw as past issues in economic growth and what the challenges of the future are. Previous concerns facing Iowa’s economic development included population growth and income and infrastructure concerns. The good news about the potential worker shortage is that it focuses on other issues with solutions that could have a huge impact on Iowans. Some of the new challenges include: the increase in agricultural land values and commodities, the creation of jobs many with incomes over $35,000, increase of per capita incomes of 20%, and the planning of countless other new jobs.

4 One of the other issues that the workforce study looked at was the impact of the pending retirement of the “baby boomer generation”. There are several job areas that will be most impacted by pending retirements, including education, manufacturing, and healthcare. These areas require some of the most skill. This may make the open job slots more difficult to fill. Workforce developments estimates of the number of retirees each year from employer reports are as follows:

• 2008: 152,908 retirees • 2009: 77,938 retirees • 2010: 79,443 retirees • 2011: 70,198 retirees • 2012: 77,271 retirees • 2013: 70,391 retirees • 2014: 71,165 retirees

The first year estimate (2008) is higher because individuals who are eligible to retire in 2008 are counted for that year, but NOT for the following year (2009). The 2008 number also includes employees who are currently eligible to retire, but are continuing to work.

The Economic Growth committee passed a bill earlier this year creating a baby boomer study to look more closely at that portion of Iowa’s population. HF 2599 establishes a study group to look a the workforce impact of Iowan’s born from 1946 through 1964: those who are commonly identified as baby boomers. The bill directs Iowa State’s sociology department, in cooperation with the extension service to look at a number of issues relating to baby boomers. The study would identify full and part time residents and their career needs and experiences. The results of the study, if funded, would be reported to the Governor and the legislature in January of 2009. The goal is that it would help tap into another portion of the population to address the pending worker shortage. Many eligible retirees are continuing to work later in life or seeking educational opportunities to continue in their field. With or without the baby boomer study, the retirement-age population will have a critical role to play in Iowa’s economy in the next decade.

Education

Creative Financing: Scooping $4.5 million to Fund the Education Budget

The Democrat target for the Education Appropriations bill is $60 million over the current fiscal year

This sounds like a big increase but remember there’s a $75 million built-in increase for teacher compensation.

Community colleges, the Iowa Tuition Grant, libraries and the Regents are clearly second class citizens in the budget.

Here’s how the Democrats meet their budget target AND give everybody else a little something:

First, transfer $21 million out of the Education budget to other budgets.

• $14 million for Regent’s Tuition Replacement from Education to Infrastructure Appropriation • $7 million for University of Iowa’s psychiatric hospital from Education to Human Services Appropriation

Second, scoop $4.5 million from five sources:

• $1.5 million from local Community Empowerment areas that have more than 30 percent ending balance on hand. This tracks with current administrative rules that require the reversion. • $1.8 million by reducing the allowed 30 percent ending balance to an allowable ending balance of just 20 percent. This means your local empowerment area might loose funding yet at the end of this year. 5 • $300,00 from the Board of Educational Examiners • $750,000 from Community Empowerment Business Partnerships • $100,000 from the ending balance of an old chiropractor loan program

So in reality the Democrats target is $85.5 million in “new” money because they scoop and transfer their way there.

No doubt you’ve heard from your local Community Empowerment area about looming cuts. This is what they are talking about.

Environmental Protection

Beverage Container Recycling Fused Into Environmental Management Measure

On Wednesday, March 26, 2008, the House passed House File 2570 by a unanimous 96-aye vote. HF 2570 creates a designation of Environmental Management System which encourages solid waste management agencies to develop and use responsible environmental management and provides for financial incentives for such action.

One of the amendments adopted to the bill, H-8202 as amended by H-8258, added language establishing a “comprehensive recycling planning task force” to examine the state's current beverage container law and program and potential alternatives and how the beverage container law affects the larger, collective state recycling effort. The amendment’s language would create a 25 voting member task force of interested and affected parties. The task force is charged to complete its duties by January 1, 2009, but may dissolve itself at an earlier date if it finishes it work before this date. The enumerated voting members of this task force are:

• One member selected by the Iowa Recycling Association. • One member selected by the Iowa Society of Solid Waste Operations. • Three members selected by the Iowa Society of Solid Waste operations representing solid waste planning areas of various sizes and from different areas of the state. • One member selected by the Iowa League of Cities. • One member selected by the Solid Waste Association of North America representing private solid waste disposal entities. • The Director of the Department of Natural Resources, or the Director’s designee • One member of the Iowa Environmental Council. • One member selected by the League of Women Voters of Iowa. • One member selected by the Iowa Wholesale Beer Distributors Association. • One member selected by the Iowa Beverage Association representing juice and soft drink distributors. • One member selected by the Iowa Bottle Bill Coalition representing independent redemption centers. • One member selected by the Iowa Association of Counties. • One member selected by the Iowa Farm Bureau Federation. • One member selected by the Association of Business and Industry. • One member selected by the Home Builders Association of Iowa • The Director of the Alcoholic Beverages Division of the Department of Commerce, or the Director’s designee. • One member selected by the Keep Iowa Beautiful. • One member selected by the Iowa Grocery Industry Association. • One member selected by the Iowa Dairy Foods Association. • One member selected by the Petroleum Marketers and Convenience Stores of Iowa. • One member selected by the Iowa retail Federation. 6 • One member selected by the Iowa Wine Growers Association. • The Director of the Iowa Department of Transportation, or the Director’s designee.

Inclusion of this language probably means that the stand-alone beverage container deposit expansion legislation, House File 2537, will die in the second funnel. However, inclusion of this task force language may create a vehicle to reattach beverage container deposit language should majority parties reconsider their termination of the Governor’s proposal to expand the bottle bill coverage and increase of the handling charge.

An indication that the Majority party is keeping it’s options open concerning expansion of the bottle bill and changing the handling fee will be in how quickly the Senate considers the measure and if after passage of the bill by the Senate a motion to reconsider is filed by the majority party member/leader.

Human Resources

Health Care Reform Keeps Moving

Last week, the Senate Appropriations Committee passed House File 2539 on to the floor of the Senate for future debate. In passing the bill, the Senate proposed major changes that dramatically shift the tenor of the bill and the future of health care in Iowa.

One of the central principles that guided the bipartisan work of Republicans and Democrats in the House was any changes had to be doable and sustainable. Senators apparently did not feel bound by that guiding principle as they enacted a series of mandates on Iowans.

The Senate Appropriations amendment to the bill would require all children in Iowa to have health care coverage by January 1, 2011. The Senate amendment also expands HAWK-I eligibility to 300% of the Federal Poverty level (about $60,000 for a family of four) on July 1, 2009. Finally, the amendment creates a new health care program – Iowa Choice – that would offer unsubsidized health care plans to children whose families make over 300% of poverty and to families who earn less than 400%.

In order to make this happen, the Senate amendment includes a multi-year appropriation to HAWK-I. The increased funding starts with $4.8 million in FY 09 and builds to an additional $24.8 million in FY 2011.

Electronic Health Records language also is significantly revised in the Senate amendment. Instead of focusing on building a system that would work in a variety of health care settings, the amendment focuses solely on the development of a information backbone system for hospitals.

While House File 2539 tries to limit the creation of additional boards and commissions, the Senate amendment is full of new state-sanctioned groups. Among these would be the creation of a Office of Health Care Quality, Cost Containment and Consumer Information and a Bureau of Health Care Access. The amendment also provides additional staff and funding for the Department of Public Health to implement many of new health initiatives. The total amount of new dollars for DPH would be $1.3 million under the amendment.

The amendment strikes language directing DHS and the Iowa Medicaid Enterprise to seek federal waivers to implement chronic disease prevention and management efforts in the Medicaid and IowaCare programs. It also requires nonprofit hospitals to report annual compensation for officers, directors, trustees, and other highly-paid employees.

The Senate is expected to debate House File 2539 and the amendment next week.

7

Judiciary

How Much Insurance Do You Carry?

A bill on the house calendar seeks to put in place a process where an individual can request information about another individual’s insurance coverage. HF 2583 allows a “claimant” or their representative, most likely a trial attorney, to make a written request for insurance policy information. When a written request is received by an insurance provider, they would have to pass on this insurance information within 30 days. This would include both the extent and type of coverage an individual has as well as the limits on those policies.

There are a number of concerns about this bill: from privacy issues, to “shopping” for worthwhile lawsuits, to the increased burden on insurance claims departments. The bill would apply in various situations, not just in your average vehicular fender bender. A claimant could request information about your business’s coverage or the amount of malpractice insurance a professional carries.

The disclosed motivation behind the bill was to make the process of bringing a law suit or choosing NOT to file a lawsuit, more manageable. When this information is available prior to filing an individual claimant and their attorney can make better decisions about how to proceed with the subsequent lawsuit. However, insurance policy information, including the limits and extent of coverage are part of the initial fact finding that occurs between parties once a lawsuit is filed. Essentially this bill abrogates that process and requires policy information to be given to one party before a suit is brought.

It’s important to note that this bill does not change the evidentiary rules regarding insurance information in a trial. The Iowa rules of evidence prohibit attorneys from discussing insurance dollar amounts in court when assessing the final damages awarded in a case. Liability coverage also cannot be discussed as a way of showing intent to act in a certain way. This restriction remains unchanged by the contents of this bill.

Several amendments have been filed on the bill, including an amendment that requires that the claimant make a good faith showing of the factual circumstances that they believe give them a reason to file a claim. The bill has been on and off the debate calendar in the House, so it remains to be seen whether this issue will come up for discussion in the House.

Lawyer-less Clients Increasing

In 2005, Iowa court officials responded to public need and released a whole packet of “do it yourself” legal documents. The documents were for use by individuals without children who wanted to file for divorce: this would allow them to put together the necessary paperwork without the need to retain an attorney. The public response was immediate and literally thousands of these divorce packets have been downloaded and distributed. However, is this a good thing?

Some Iowa judges say they are spending a lot of time addressing errors and inconsistencies in cases where individuals represent themselves. Missing signatures, forms from another state, and incomplete documents are some of the common problems that courts are running into. As a result, more judges and lawyers are spending time reviewing, correcting, and explaining which can slow down the whole system. A report on the use of these self-help forms noted that there needs to be a balance between improving citizen’s access to the courts but also minimizing disruption to a system that is already overburdened. In addition, lawyers and judges can face ethical challenges when asked for help by unrepresented individuals.

Access to the forms will only continue to grow and can be invaluable in many situations. Domestic disputes, small claims, and divorces are being handled more and more without the help of an attorney. These simple cases are the 8 most easily navigable for an average lay citizen to use self-help forms. Again, simplifying these cases can help to streamline the whole court system. But when matters get more complex it may be worthwhile, if not essential, to contact an attorney. In addition, many lawyers and firms are now offering simplified services for assistance in these routine matters for a much reduced fee.

On the criminal side of the judicial system individuals may have an even tougher time when they choose to represent themselves. Defendants who make the decision to appear pro-se can face an uphill battle as they navigate the criminal law system. Challenges like plea bargaining and limitations on the communication a pro se defendant can have with the prosecutor can make it incredibly difficult. However, these defendants are often assigned a “stand by” attorney who is available to assist when matters become particularly complicated. The number of individuals who represent themselves in criminal matter remains very low, mainly due to the availability of public defense attorneys.

Labor

Workers’ Compensation – Employee Choice of Doctor – House File 2608

On March 6, 2008, the House Labor Committee approved House File 2608 (formerly House Study Bill 771) on a 10-6 party-line vote.

House File 2608 allows an employee to pre-designate a physician who is a primary care provider, who has previously provided treatment to the employee and has retained the employee's medical records, to provide treatment for a work- related injury.

An employer is required to provide written notice to employees that they can pre-designate a doctor upon hire, and periodically during employment. Additionally, an employer is required to provide notice to an employee upon receiving notice of an injury from an employee who has not pre-designated a doctor of their right to do so.

If the employer fails to provide notification, an injured employee has the right to choose any physician to provide treatment for the work-related injury and that particular treatment shall be considered authorized care.

If the employer or employee is dissatisfied with the care chosen by the other party, the dissatisfied party is required to communicate the basis of dissatisfaction to the other party in writing and the parties may agree to alternate care reasonably suited to treat the injury. If the parties cannot agree to alternate care, the dissatisfied party may make an application for alternate care to the Workers’ Compensation Commissioner. An application for alternate care is an original proceeding and is treated as a contested case.

With the second funnel approaching at the end of this week, it is uncertain if this bill will be debated, however, no bill is truly dead until final adjournment.

Natural Resources

Comprehensive Departmental Bill Voted Through House

The Department of Natural Resources’ bill passed through the Iowa House this Monday. With so many responsibilities within the department’s purview, it’s important to take a look at some of the substantive changes contained in the bill.

9 • Creates a new section in the code that imposes civil penalties for unlawful operation of an ATV in a nursery, public land where prohibited, or outside of trails in park or fish and game area. • There are changes to section 481A.18 which requires reporting a hunting accident. It changes the language to “incident” rather than accident for consistency with other laws. It also requires reporting an incident involving a fall from a device for hunting, such as a tree stand. • There are changes dealing with licenses for members of the military. The changes eliminate the requirement that the individual be a veteran, have served 90 days, or that they are entitled to federal compensation. • Another portion of the bill deals with restrictions on driving over ice, unless a permit has been issued. The restriction is amended to NOT apply to ATV’s, off-road motorcycles or off road utility vehicles. This allows individuals to use their ATV’s when heading out on the ice for ice fishing. • There are a couple changes to the hunter’s education requirements. The first change allows reciprocity in hunter training education programs from other states, country or province meeting the standards of the international hunter education association. It also allows DNR to produce the hunters’ information manual in electronic format for access by the public and also allows the DNR to conduct a departmental approved shooting sports activity course at a public school. • The bill also made substantial changes to a little known program: hunting for the blind. It made changes to the laws on hunting with artificial light. There are new subsections: A person who is totally blind and using a laser sight on a gun or bow is NOT prohibited from using the artificial light if: 1) The total blindness is supported by evidence from an eye care professional. The blind person must carry this certification. 2) The totally blind person must be accompanied by a person at least 18 years of with functioning vision who has the required hunting licenses and has paid the appropriate fees. The adult must remain within arm’s length, be able to identify the target, but shall not shoot the laser equipped gun/bow.

One section in the bill did raise some controversy. Division 2 of the original bill addressed the methods used to establish residency in Iowa. These regulations are important for obtaining resident versus nonresident hunting licenses and privileges. However, it was the DNR’s comments on the bill that raised some eyebrows. Eliminating the use of voter registration because it was too easy to obtain under false pretences. That whole portion of the bill was eliminated on the floor of the House to avoid any controversy and to reaffirm the importance of voter registration.

Public Safety

New Cold Case Unit Established by Justice Budget Bill

On Tuesday, March 18, the House Appropriations Committee approved House Study Bill 773, the Justice Systems budget bill for FY 09. The bill appropriates $522 million from the general fund and 6,292 FTEs for the Department of Corrections, Department of Public Safety and several other public safety programs.

One component of the bill required the Department of Public Safety (DPS) to establish a new cold-case unit to investigate unsolved murders.

According to DPS, there are approximately 150 murder cases that have gone unsolved over the past fifty years. The bill appropriates $200,000 of federal grant money to establish the unit, which will likely be headed by Kevin Winker, a special agent for the Iowa Division of Criminal Investigation.

"We've demonstrated in the past that if we can dedicate time to these cases, we have had success," said Winckler. “The reason these cases go unsolved is because the focus tends to be on fresher cases.”

10 Emily Blomme is the program director of Horizons Survivors Program, a nonprofit group that helps families in about two dozen eastern Iowa counties deal with unsolved murders. Focus on solving the cold cases would help grieving families but also would enhance public safety by potentially removing dozens of killers from the streets, she said.

Brandi Hoffmann agreed with Blomme. Her niece, Evelyn Miller, disappeared from her family's Floyd County apartment in 2005. The kindergartner's body was later found dead in the Cedar River.

More than two years later, no one has been arrested in the murder. It is not classified as a cold case but Hoffmann has had fears that it could someday reach that stage. "I think something like this has been ignored for too long," Hoffmann said of the creation of the cold case unit. "Something like a homicide is unpleasant to begin with but it's especially unpleasant if it goes unsolved."

The language states that should the federal funding not become available, the unit will not be created. However, congressional sources have indicated that the money will be contained in next year’s budget.

State Government

Full House to Consider Gaming Bill

SF 348 provides for a reverse referendum. The committee amendment sets racing dates at Prairie Meadows for some horse breeds and horse purses for all breeds. There are two different parts of the bill, the reverse referendum component and the horse purse and race date codification component. Each is a major change. Below is a description of the changes:

Reverse Referendum Component This section provides that if a proposition to operate gambling games on an excursion boat or racetrack has been approved in two successive elections or more in a county since 1994, the proposition to authorize gambling games is not thereafter required to be submitted to the county electorate.

This means that voters in counties with the following casinos would no longer be scheduled to vote to allow the casino to operate: Isle of Capri in Marquette, Dubuque Greyhound Park and Casino in Dubuque, Diamond Joe Casino in Dubuque, Wild Rose Clinton in Clinton, Isle of Capri Bettendorf in Bettendorf, Rhythm City Casino in Davenport, Catfish Bend Casino in Burlington , Prairie Meadows Racetrack and Casino in Altoona, Argosy IV in Sioux City, Harrah’s in Council Bluffs, Ameristar Casino and Hotel in Council Bluffs, Horseshoe Casino and Bluffs Run Greyhound Park in council Bluffs, Terrible’s Lakeside Casino Resort in Osceola. The votes in the counties with the following casinos would only be scheduled. The voters in the counties with the following casinos would only be scheduled to have a vote to allow the casinos to operate: Wild Rose Emmetsburg in Emmetsburg, Diamond Jo Worth in Northwood, Riverside Casino in Riverside, and Isle of Capri Waterloo in Waterloo would only have one additional successful vote. Current law provides that the proposition to conduct gambling games shall be resubmitted to the county electorate every eight years.

It also provides that if a proposal to operate gambling games has been approved, another election shall not be held sooner than the eighth calendar year following the approval, but in no event prior to calendar year 2015, and then, may only be held each eighth year thereafter. In addition, the bill provides that if any proposition to conduct gambling games in a county passes with 60 percent approval, then no referendum shall be held in that county until calendar year 2022, and then may only be held each fifteenth calendar year thereafter. This means the Riverside Casino will be required to hold a vote in 2015, Wild Rose Emmetsburg, Isle of Capri Waterloo, and Diamond Jo Worth will not be required to their vote until 2022.

The provision that the county may hold a referendum on the proposition to conduct gambling games upon submission of a petition from the county electorate is maintained but is made subject to the bill's requirements on when elections 11 can be held. Current law provides that no election shall be held for eight years after a proposal has been defeated but is silent as to when an election can be held if the proposal to conduct gambling games has been approved.

Horse Purse Component The committee amendment codifies language which says the commission shall authorize racing at Prairie Meadows as long as the casino meets the following race requirements: • Thoroughbred Horses - 711 live racing performances • Quarter Horses – 180 live horse racing performances

Live racing performances do not include quarter horse trials for stake races. The races are subject to availability of the horses and competitive field sizes. The race shall not be conducted if there are fewer than 5 betting interests for a race at the time entries are closed. The number of performances required by this subsection may be modified by written agreement between Prairie Meadows and the specific horse breed affected. The committee amendment does not codify any Prairie Meadows race dates for the Standardbreds. There is an amendment which supporters of the Standardbred industry have filed which requires 170 live horsing race performances at Prairie Meadows.

As for the purse size, for agreements subject to the commission approval beginning on or after January 1, 2006, the agreements shall provide that total annual purses for all horse racing shall be 11% of the net receipts. This is a change from current law.

The bill also codifies an agreement between Prairie Meadows and the Standardbred Horse Owners between January 1, 2008 and January 1, 2011, to provide $1.0 million for standardbred horse races held at county fairs.

Under the committee amendment an additional clarifying amendment, after January 1, 2011 the Standardbred Horse owners will receive $1.0 million dollars per year from the gambling tax receipts. Under the bill, 99F.11 is amended to say 2/10 of 1% of the gaming adjusted gross receipts shall be allocated annually as follows: • 1.0 million shall be allocated to a Standardbred Harness Racing Association for the purpose of standardbred horse races held at county fair racetracks. • The moneys remaining are appropriated to the treasurer of state for allocation as state aid to eligible county fairs.

Other Components There several other signification provisions offered in the form of an amendment. Below is their description:

This committee amendment requires the Racing and Gaming Commission to conduct an economic impact study of the dog and horse industry every four years. The studies for the horse industry begin in 2009 and the studies for the dog industry begin in 2011. The study shall also examine the costs and expenses incurred by licensees in conducting the races. The licensees and representatives of the horse and dog breeds shall provide the commission with any information the commission requests. Failure to do so shall constitute sufficient grounds for the commission to deny a renewal of the license.

A separate amendment requires, at least three weeks before scheduled commission action, the casino to publish in a newspaper of general circulation in the county a notice that it has filed with the commission an application to renew its license and the date and location at which the commission will consider the renewal. The notice shall contain language informing the public that public comments concerning the application may be provided at the time the commission considers and acts upon the application.

A separate amendment would place a moratorium on the number of casinos and would not allow any additional casino licenses to be issued.

12 Transportation

Transportation Budget Bill to be Considered by the Full House

The Transportation Budget passed out of Appropriations committee on Wednesday along party line votes. Republicans noted the lack of a balance sheet detailing the entire budget picture as their reason for opposing the bill. Concerns linger regarding the remaining general fund dollars and how that will be used. Under the Governor’s proposal, $2.0 million in General Fund dollars are requested for the Rail Revolving Grant/Loan Fund.

This bill appropriates approximately $328 million to the Iowa Department of Transportation (DOT) in FY09 from two sources, the Road Use Tax Fund (RUTF), and the Primary Road Fund (PRF). This is an increase of $1.3 million prior to the supplemental appropriation and a decrease of 1 FTE compared to FY 2008. The bill also provides for a $9.7 million supplemental appropriation to pay for the additional costs occurred this winter.

Appropriations from the RUTF The bill compared to last year appropriates $308,113 less money from the RUTF. The main reason for the decrease is last year’s budget included a one-time two year appropriation of $1,000,000 for the development of the international registration plan and international fuel tax administration system. There was also a $390,000 decrease in county treasurer’s support. This number is determined based on the number of licenses they issue.

One large project included is an appropriation for a new over dimension permitting system. This automates the process of issuing permits for oversize and overweight vehicles. The total cost of the project is $2.0 million. The Department plans to ask for the remaining appropriation next year. The money appropriated to the over dimension permits is available until FY12.

Appropriations from the PRF Prior to the Supplemental Appropriation, the bill least year appropriates $1,590,089 more than last year from the PRF. The major increases include an increase of $797,000 for salt, $148,500 for maintenance garage improvements, and $222,000 for workers’ compensation

One change is $2.5 million to replace the Waukon garage versus last year’s appropriation of $2.3 million for the Clarinda garage. The DOT attempts to replace or dramatically improve a garage every year.

The bill does decrease the number of employees by one FTE. However, that individual will be included in the AG’s budget request and the AG will be reimbursed the cost of his salary and benefits therefore the DOT operations budget does not see a change.

2007 Appropriation for Salt The bill includes a supplemental appropriation in the amount of $9,729,426. This money is to be spent on salt and the additional expenses occurred for staff during the unexpected winter storms.

Difference from the Governor’s Recommendations The legislative Democrats did make a couple of changes to the appropriations bill compared to the Governor’s recommendations. The changes are as follows:

• Legislative Democrats did not appropriate $2.0 million in general fund dollars to the Rail Revolving Loan Fund that the Governor recommended • Legislative Democrats did not appropriate $1.0 million for the maintenance for garages that the Governor recommended. • Legislative Democrats increased the appropriation for deferred maintenance of field facilities by $148,500 compared to the Governor’s recommendation. • Legislative Democrats increased the appropriation for ADA updates by $20,000 compared to the Governor Recommendation.

13 The Governor’s bill also did not contain the request for a supplemental appropriation for Salt. When the Department submitted their budget on October 1st they were not able to predict the additional costs.

Veterans Affairs

Full House to Consider Bill Relating to the Sale of American Flags

HF 2559 prohibits a person from selling or offering for sale at retail in this state on or after January 1, 2009 any of the following flags not manufactured in the United States:

• United States Flag • State Flag of Iowa • Flag representing or commemorating United States soldier characterized as missing in action or POW

The bill defines flag to mean a piece of woven cloth or other material designed to be flown for purposes of public display from a pole or mast.

The restriction does no apply to representations or depictions of a flag not meeting the definition of a flag which are affixed or attached to physical objects, works of art or memorabilia.

A person violating this section shall be guilty of a simple misdemeanor. Each sale made in violation of this section constitutes a separate offense.

In addition an amendment has been filed which would restrict beginning July 1, 2008 the state, a state agency, political subdivisions of the state, school district, area education agency, community college, an institution under the control of the state board of regents, other public entity, or a state, county, or municipal cemetery from purchasing any of the above mentioned flags from a manufacturer outside the United States.

Ways and Means

Property Tax Deadline Approaches

The deadline for payment of the second installment of the 2006-2007 property tax is Monday, March 31, 2008.

Property tax statements are mailed once a year and property tax payments may be paid in one full installment or two half installments. The first half is due on September 1 and becomes delinquent after September 30. The second half is due March 1 and becomes delinquent after March 31.

Important Information for Taxpayers

ƒ The U.S. Postal Service postmark is the only date recognized for the date of mailing. The date written on a check or a business metered date is not accepted as proof of the mailing date.

ƒ Interest on delinquent taxes accrues at 1.5% per month

14 ƒ County treasurers throughout the state are encouraging taxpayers, to utilize the online web payment system at www.IowaTaxAndTags.gov. Payments can be made with a credit card or e-Check. The web service is available 24 hours a day, 7 days a week.

Social Security Recipients and Veterans Affairs Benefits Recipients – Assistance on Economic Stimulus Payments

Earlier this month, the Internal Revenue Service announced that they will begin mailing special information packages to 20.5 million recipients of Social Security or Veterans Affairs benefits to help them get their 2008 economic stimulus payment.

The package contains everything the recipients will need to file a 2007 tax form immediately. Each package contains an informational notice, tips for completing Form 1040A, a sample Form 1040A and an actual Form 1040A for the filer to complete.

The package is specially designed for people who may qualify for an economic stimulus payment but who normally aren’t required to file a tax return.

Under the Economic Stimulus Act of 2008, people may be eligible for the minimum payment of $300 ($600 for married couples) even if they do not normally file a tax return. There also is an additional payment of $300 for people with eligible children younger than 17.

However, people must file an income tax return in order to receive the payment.

People who don’t normally need to file also can use Free File – Economic Stimulus Payment, which is available at http://www.irs.gov. Several Free File software providers are making their products available for the simplified filing of a tax return.

To qualify for the minimum economic stimulus payment, people must have at least $3,000 in any combination of qualifying income from retirement, disability or survivors’ benefits from the Social Security Administration; disability compensation, disability pension or survivors’ benefits from the Department of Veterans Affairs; Tier 1 benefits from Railroad Retirement, certain combat pay and earned income from wages, salaries, tips or net earnings from self- employment that are included in taxable income.

The mailing list of 20.5 million names represents Social Security and Veterans Affairs benefit recipients who did not file a tax return in 2006, allowing the IRS to directly target the special package to people likely to qualify for a stimulus payment but who may not otherwise file a tax return this year.

The mailing, called Package 1040A-3, is separate from more than 130 million other economic stimulus letters being sent throughout March to taxpayers who filed tax returns in 2006.

If a taxpayer has not received the IRS package and may qualify for an economic stimulus payment but normally aren’t required to file a tax return, taxpayers can find the Package 1040A-3 online at: http://www.irs.gov/pub/irs- pdf/k1040a3.pdf

Des Moines Register Article From March 26, 2008

Districts Must Have Ability To Make Decisions on Teachers 15

By JACK L. HILL, president of the Iowa Association of School Boards

In Iowa, we claim some of the nation's - if not the world's - best teachers, who work together with their administration and school boards to improve student achievement in their districts. The Iowa Association of School Boards is passionate about ensuring these great teachers have the best conditions in which to teach for high student learning.

The Iowa Legislature has approved a bill that makes sweeping changes to the laws affecting public-employee collective bargaining and the hiring and termination of teachers. If signed into law, HF 2645 will significantly cripple school districts in their authority to improve student achievement in their districts, by, among other things, stripping them of their right to make decisions that affect the quality of teaching in their classrooms.

Under current law, local school boards and administration decide whether a teacher's competence or integrity is lacking and whether the employment contract should be terminated. The board's decision to terminate the contract can be appealed to an adjudicator, whose ruling can be appealed to district court.

This bill removes the ability to appeal that decision to district court. School board decisions, overturned by adjudicators, are regularly upheld by the courts. For example, the Iowa Supreme Court ruled in favor of the school board in Sheldon Community School District v. Lundblad despite its loss at the adjudicator level. The case involved a Sheldon teacher who berated and humiliated students. In response to a student who had written a paper on teen suicide, the teacher had suggested the student "try it" for extra credit. The teacher was repeatedly instructed to improve his behavior and was ordered to take classes to do so. When the behavior didn't improve, the board terminated the teacher.

In Board of Directors of the Fairfield Community School District v. Justmann, the board terminated a teacher's contract for engaging in a sexual relationship with a student. The board lost that decision at the adjudicator level but eventually won at the Iowa Supreme Court.

These cases show how important it is to allow a court to hear a teacher termination case. And, in each of these cases, the performance issue was one of misconduct, not competence. If adjudicators won't support a school board's decision to terminate a teacher who has sexual relations with a student or repeatedly bullies and intimidates his students, how will they rule when it's a competency issue?

In order to improve student achievement, research shows that the quality of the teaching force is paramount. Iowa has spent years and millions of dollars on professional development and mentoring programs to help teachers fine-tune their teaching and classroom management skills.

But, in the rare case when these programs don't work and a teacher just isn't making the grade, districts must have the flexibility to make the decision to terminate that teacher. That decision is never made lightly. Our children's education is too important to sentence them to a year with a bad teacher. We cannot afford to allow an outsider to make decisions which, granted, have a significant impact upon one teacher but have an even more significant impact upon the children in the classroom.

Please encourage the governor to veto HF 2645 in favor of future legislation that's thoughtfully and carefully crafted based on input from all parties affected by it.

Those who respect the collective bargaining process should be open to a collective process of changing the law - both the collective bargaining law and the teacher termination law. By leaving the school board voice out of this amendment and rushing this bill through the process, they are violating the very nature of the process they are claiming to improve.

16