Iowa Senate Democrats

Fighting for a Better Deal for Iowans.

  • Putting unconstitutional law on hold is good news for Iowa

    Iowa Senate News Release
    For Immediate Release:  June 1, 2018  

    Statement from Senate Democratic Leader Janet Petersen
    on injunction to halt implementation of 6-week abortion ban

    “Governor Reynolds and other Iowa Republican politicians sent a horrible message to everyone in the United States when they passed this unconstitutional law.  This dangerous law devalues women and girls and would further reduce access to quality, affordable health care across our state.

    “Governor Reynolds and other Republican politicians in the Statehouse have no right to dictate personal, private decisions that Iowa women should make about their own health care. They are not health care experts.

    “Their law is dangerous.

    “Their law is unconstitutional.

    “Their law devalues Iowa women.

    “Thanks to Planned Parenthood of the Heartland, the Emma Goldman Clinic and ACLU of Iowa for standing up for the rights of Iowa women, especially those living in small towns and rural parts of our state. They are doing a great job protecting the rights and health care decisions of Iowa families.”

    -end –

  • Ways & Means Committee – All-Bill Summary 2018

    All bills passed by the Legislature and sent to the Governor for her signature during the 2018 session. 

    SF 2388 – Ending central assessment of telecommunication property; transfer to local assessment and valuation
    SF 2389 – DNR authority to set pricing for camping and rental fees
    SF 2390 – Food safety and hotel sanitation fees and inspections
    SF 2400 – Local government risk pools
    SF 2407 – Knoxville Raceway sales tax rebate update
    SF 2417 – GOP tax scheme
    HF 631 – Hunting and fishing fee increases
    HF 2370 – Post-adoption information
    HF 2446 – Utilities Board omnibus/voice over the internet protocol service regulations
    HF 2478 – Exempt sales tax for construction equipment purchased for lease or rental
    HF 2500 – Workforce housing deadline extension

     

    SF 2388 would eliminate the current system for assessing telecommunication facilities that applies to wire-line telephone and Internet service providers and replace it with a traditional assessment process on a local basis. Wire-line service providers have been centrally assessed by the Department of Revenue on a number of factors to determine the value. The property includes wires and other transmission equipment. The property tax paid is distributed proportionally to the jurisdictions where the transmission infrastructure is located. The bill modifies cable television property assessment so that it is valued in the same manner and on comparable property as wireless and wire-line telecommunications companies under the legislation.

    Telecommunications property will be locally assessed with the valuation limited to the value of real property associated with the utility. This new procedure is projected to lower the taxable valuation of telecommunications property by an estimated $885 million and reduce property taxes to local governments by nearly $30 million. The tax reduction has a three-year phase-in, which is accomplished by providing an additional exemption under the central assessment system before transitioning to the local system for assessments after January 1, 2022.

    Under the bill, cell towers are not considered telecommunications property and will not be assessed under Chapter 433. Cell towers are assessed locally as real property. However, the bill does provide a phase-out of property taxes on cell towers.

     

    SF 2389 would give the Department of Natural Resources (DNR) authority to adjust fees for campsites, cabins and other facilities in state parks and management areas. The department previously established fees through the administrative rulemaking process, which can take more than six months. Under SF 2389, DNR will set rates for campsites, including offering package deals and discounts, to more effectively market the sites.

     

    SF 2390 changes food safety and hotel sanitation fees and inspections based on recommendations from the Department of Inspections and Appeals (DIA), Department of Public Health (DPH) and regulated establishments, including restaurants, schools, hotels and banquet facilities.

    The food inspection program was designed to be self-supporting with fees covering the costs of the program. This allowed local governments to run programs and provide services at a local level. Without a fee increase, local governments haven’t been able to afford the program, so more responsibilities shifted to the state. The fee increase will allow more local governments to resume inspections. Fee increases don’t apply to schools and licensing requirements don’t apply to education events with food vendors.

     

    SF 2400 allows library districts to participate in the Iowa Community Assurance Pool (ICAP), a local government risk pool. The bill also updates Iowa law for townships, 28E organizations, emergency management agencies, empowerment boards, transit authorities and county fairs to provide allow them the same coverage under the risk pool as cities and counties, including coverage against employee theft.

     

    SF 2407 updates the existing sales tax rebate for improvements at Knoxville Raceway by simplifying the process for claiming the rebate and changing the maximum rebate to $1.8 million (instead of 25 percent of project costs or a maximum of $2 million).

     

    SF 2417 – GOP TAX PLAN

    Overall tax bill impact

    The Republican tax plan is a major transformation of Iowa’s tax system that will eventually reduce revenues by more than $1 billion annually.

    Lower revenues initially come from reductions in individual and corporate tax rates, along with expanded expensing deductions for farmers and small businesses and a new tax deduction for most businesses organized as LLCs and S-corporations. We’ll see even greater reductions in the future when the plan changes what income is subject to tax for individuals and major reductions in the top tax rates. The bill also expands Education Savings Accounts for private K-12 education expenses, expands Iowa’s sales tax to more online sales, and makes a number of changes to existing tax credits.

    These tax cuts will cripple Iowa’s ability to train more skilled workers, to increase family incomes and to help create more opportunities for our children and grandchildren. Iowa will be in a state of constant budget crisis, with state resources decreasing over time.

    This bill reduces general fund revenue by more than $100 million in FY19 and by more than $261 million in FY20. In tax year 2024, the bill is projected to reduce individual and corporate income taxes by more than $1 billion.

    Reduced revenue will lead to cuts in state spending on many programs, which may in turn increase local property taxes. More school districts will be subject to the “budget guarantee” and will be forced to rely on local property tax increases to balance their budgets. Public safety and mental health service shortfalls will also fall on local governments and property taxes.

    A portion of the revenue loss is made up by modernizing the state sales tax system to more effectively collect taxes for online purchases. The bill also expands the state sales tax to include digital goods and services, taxis and ride-sharing companies, and room rental services (VRBO and Travelocity). It also changes the definition of “manufacturer” to overturn an Iowa Supreme Court decision (Sherwin Williams). The net impact of sales tax changes in the bill is around $67 million in FY19 and $117 million in FY20.

    Business tax credit changes are projected to have a minor impact on overall revenues in the near term. The limitations on who can claim the Research Activities Credit and “base year” calculations will reduce awards through the program, but not substantially. The bill does include a five-year extension to the deadline for certifying qualified investment funds under the Innovation Fund program and a one-year extension to the Targeted Jobs Withholding Tax Credit program in certain cities (i.e., Sioux City, Council Bluffs, Burlington and Fort Madison).

    The bill also eliminates income tax credits that supported geothermal energy system installations. This program has created jobs across the state and supported renewable energy and energy efficiency improvements to homes, farms and businesses.

    Individual income tax changes

    Initially, the income tax changes in the bill will:

    • Leave the existing income tax system and brackets in place but will reduce the rates for tax year 2019.
    • Couple Iowa’s tax code with the federal changes that expand the Earned Income Tax Credit and teaching expense deductions for tax year 2018.
    • Phase in increases for Section 179 expensing. For tax year 2018, the limit is raised to $70,000/$280,000 annually for individual income taxes only, not corporate. The bill also institutes a K-1 tax form “fix,” which means the limit on expensing is extended to every member of a business rather than having all partners cumulatively limited to the expensing threshold. Additionally, the legislation does not couple with federal changes that eliminated “like-kind” exchanges from qualifying under Section 179. Those exchanges and the K-1 “fix” will end in tax year 2020. A K-1 is the form that reports the amounts that are passed through to each party that has an interest in a small business entity.
    • Expand qualifying education expenses for 529 savings plans to include private K-12 education beginning in tax year 2018.
    • Provide for general individual and corporate tax code coupling for tax year 2019. Section 179 expensing increases to $100,000/$250,000 for individual and corporate returns.
    • Include the new qualified business deduction (QBID), which provides businesses that file under the individual income tax system (LLCs, S-Corp, partnerships, etc.) a major new deduction on federal income taxes. This deduction is equal to 20 percent of the qualified income from the business. The deduction is phased in over four years beginning in tax year 2019.
      • With the QBID, individuals can deduct 20 percent of “qualified business income” from a partnership, S corporation or sole proprietorship, as well as 20 percent of qualified real estate investment trust (REIT) dividends, qualified cooperative dividends and qualified publicly traded partnership income.
    • Fully couple Iowa’s tax code with federal tax changes for tax year 2020, and automatically couple Iowa’s tax code with federal changes in the future. Previously, Iowa only coupled with federal tax changes by passing legislation to implement the changes.
    • Not couple Iowa’s tax code with “bonus depreciation” provisions. Iowa has routinely not coupled with this provision.

    Beginning in tax year 2023, the bill could change Iowa’s individual income tax system dramatically, assuming two conditions are met: 1) General fund net receipts for FY22 (or after) exceed $8.31 billion; and 2) Net general fund receipts grow at least 4 percent above the year prior (equal to or more than 104 percent of previous year’s net receipts).

    • The basis for determining Iowa taxable income will be calculated on federal taxable income. This will incorporate all federal tax deductions into the Iowa tax code.
    • Many of the Iowa specific adjustments to taxable income are eliminated. A summary of those adjustments is below.
    • The state standard deduction is removed. The federal standard or itemized deductions will be factored into the tax code by using federal taxable income as the base.
    • A new deduction for businesses is created for payments on the principal or interest of a qualified education loan incurred by an employee.
    • Federal deductibility is eliminated, brackets are reduced and rates for tax year 2023 are lowered.
    • The individual alternative minimum tax and the associated credit are repealed. This tax is paid by a small number of filers who can then get a credit for the tax paid in later years if the Alternative Minimum Tax is in excess of tax liability.

    Corporate income tax

    Tax rates for corporations will be reduced beginning in tax year 2021:

    • The 50 percent federal deductibility provision in Iowa’s tax code is eliminated.
    • Iowa’s tax code will fully couple with federal tax changes for tax year 2020, and automatically couple with federal changes thereafter. Currently, Iowa only couples with federal tax changes by passing legislation to implement the changes.
    • Iowa’s tax code will not couple with “bonus depreciation” provisions. Iowa has routinely not coupled with this provision.
    • The corporate Alternative Minimum Tax is repealed.

    Tax Credits

    The bill makes many changes to tax credits and tax incentives. These include:

    • Revising the Taxpayer Trust Fund and eliminating the Taxpayer Trust Fund tax credit. The fund is revised to hold money from “excess revenues” and be available to finance future tax policy changes, including, but not limited to, increasing the general retirement income exclusion or reducing tax rates. The fund has received money when general fund revenue exceeds REC estimates, up to $60 million. The bill eliminates the cap on transfers.
      • The Taxpayer Trust Fund tax credit has been issued twice since it was created in 2013. Tax credits are issued only when the fund has a balance in excess of $30 million.
    • Extending the Targeted Jobs Withholding Tax Credit by one year. The program was to expire June, 30, 2018.
    • Providing a five-year extension for certificating a qualified investment fund under the Innovation Tax Credit program.
    • Placing a number of restrictions on the use of Research Activities Credits by:
      • Specifying industries that can claim the credit. Eligible businesses are in manufacturing, life sciences, software engineering, or aviation and aerospace.
      • Prohibiting those in agricultural production, commercial and residential repair and installation, including HVAC, plumbing, security and electrical systems, from claiming the credit.
      • Restricting the state credit to businesses that also claim and are allowed the federal RAC credit.
      • Prohibiting a business from receiving a refund or carrying forward supplemental RAC credits issued under the High Quality Jobs Program.
      • Defining “base amount” to determine expenditures a business can claim under the program. This is meant to restrict the base amount to what was intended by the original legislation.
    • Repealing the alternative minimum tax credit, which is unnecessary with the repeal of the AMT, and providing for transition period.
    • Expanding student eligibility for tuition grants under the Student Tuition Organization tax credit program. The threshold for eligibility is increased from 300 percent of the federal poverty level to 400 percent of the federal poverty level. The tax credit program cap is increased by $1 million to $13 million annually for tax year 2019.
    • Repealing the geothermal heat pump tax credit beginning in tax year 2019.

    529 plans – Education Savings Account expansion

    The bill incorporates the recent federal expansion of qualified expenses under 529 college savings plans to include private K-12 education expenses. Maximum contributions for this purpose are $10,000 annually.

    The 529 saving plan was established to encourage savings for higher education with contributions limited to $3,000 per year. The plans are invested in qualified securities and are designed to accumulate value while a child ages in order to pay for college. This new method will allow payment of expenses in the same year, essentially creating a tax deduction for private education expenses.

    Sales/Use Taxes

    The main provisions of this portion of the bill provide for collecting sales taxes on Internet purchases by  Iowans by expanding what is considered the nexus of the sale to include sales sourced to a person located in Iowa. Previously, nexus was restricted to the physical location of the seller; sellers located outside of Iowa were not obligated to collect and remit sales taxes. This issue is the subject of a case argued before the U.S. Supreme Court in April 2018.

    The bill also makes digital products and information services subject to Iowa’s sales and use tax. This extends the tax to digital downloads of movies, music and books, as well as software. Information services include such streaming services  as Netflix and Hulu, such genealogical research services as Ancestry.com, and other services that involve sending digital information to an end user. The Department of Revenue has asserted that such streaming television services as Netflix and Hulu are already subject to state sales tax requirements that apply to cable video services.

    The bill extends the sales tax to taxi services and ridesharing platforms, and creates exemptions for public transit, paratransit, and emergency and nonemergency medical transportation

    The bill expands sales taxes to services that facilitate the rental or use of lodging and automobiles. This would require ridesharing companies like Uber/Lyft, AirBnB/VRBO and others that assist in these transactions to collect and remit sales taxes. These companies are jointly liable for taxes owed on services they assist in accommodating. This means such booking services as Travelocity are liable for taxes owed on hotel rooms reserved using their platform in the event the hotel does not remit the taxes owed to the state.

    The bill restricts a “manufacturer” to standards in force prior to an Iowa Supreme Court decision in a case involving Sherwin Williams. This eliminates many businesses from claiming the manufacturer exemption from sales tax on purchases of equipment and scales back Iowa’s sales tax exemption on manufacturing equipment.

    Local Option Sales Tax (LOST) Election Approval changes

    The bill strikes provisions in state law for LOST elections conducted in Polk and Johnson counties after January 1, 2019. Existing law requires contiguous cities to vote to approve the implementation of a LOST. This provision makes cities such as Des Moines, West Des Moines and others in metro ineligible to implement LOST, even if the city’s voters approved the measure.

    Miscellaneous Administrative changes for the Department of Revenue

    The first three divisions of the bill contain a number of administrative changes proposed by the Department of Revenue. These include:

    • Establishing consistent interest accrual procedures across tax types administered by the department.
    • Expanding tax fraud penalties beyond credits and refund claims to include reimbursements, rebates or other payments.
    • Providing the department the authority to share information with the Attorney General’s office and law enforcement in cases of suspected tax evasion.
    • Codifying a recent Iowa Supreme Court (Bass v. JC Penney Inc.) ruling regarding class actions and private right of actions for overpayment of taxes collected by a private entity. LSA legal update on the case.
    • Dictating that the department will be the point of contact on behalf of political subdivisions and the state to ensure accurate geographical boundary information is provided to the U.S. Census Bureau.
    • Improving the procedure for collecting the prepaid wireless service excise tax and the water service excise tax.
    • Providing that political checkoff funds received by Revenue will be deposited into the General Fund. The checkoffs were eliminated last year but some amended returns are being submitted with money set aside for the checkoff.

    Changes to Individual Income tax adjustments

    The bill changes existing deductions for calculating Iowa taxable income:

    • The cost of purchasing health insurance for a spouse or dependents (only impacts Iowans taking the federal standard deduction). The adjustment will remain, but it is limited to Iowans 65 and older with incomes less than $100,000 who purchase health insurance for their spouse or qualified dependents.
    • Net capital gains deduction, including the 50 percent deduction for capital gains associated with a qualified Employee Stock Ownership Program. The new capital gains deduction is limited to farm real estate transactions only. The deduction is available for transfers of real estate to lineal relatives as well as two levels of consanguinity, which includes brothers and sisters and their children. Provisions attempt to prevent using this qualified transaction as a way to avoid paying capital gains taxes by transferring the property to a qualified relative who then sells the property to a non-qualified person.

    The bill eliminates or phases out these deductions for calculating Iowa taxable income:

    • Employment of disabled individuals and former prisoners
    • Organ donation
    • Restitution/compensation for property taken through involuntary condemnation/eminent domain
    • Income earned by non-residents who conduct emergency response work for utilities in the event of a disaster
    • Tax expenses for a fiduciary in executing an estate
    • Restitution for Agent Orange exposure, those kept in Asian-American internment camps during World War II and those victimized by Nazis
    • Income earned during active duty in Desert Storm, Bosnia-Herzegovina peace keeping and the second Iraq war

    The bill appears to remove income from these provisions in calculating Iowa taxable income:

    • Certain intangible drilling and development costs described in IRC §57(a)(2).
    • The percentage depletion amount with respect to certain oil, gas or geothermal wells described in IRC §57(a)(1).75
    • The depreciation taken on a speculative shell building, defined in Iowa Code section 1(27), that is owned by a for-profit entity receiving the proper tax exemption, unless the taxpayer is not using the building as a speculative shell building. For state income tax purposes, depreciation is computed and subtracted from federal adjusted gross income as if the building was classified as 15-year property.

     

    HF 631 would give the Department of Natural Resources (DNR) authority to establish fees for hunting and fishing licenses and permits. The fees had been established in Iowa Code and could only be changed through legislation. Now, the Natural Resources Commission (NRC) can set fees through administrative rulemaking.

    Hunting and fishing fees are deposited into the Fish and Game Protection Fund. This fund is constitutionally protected; it can only be used to regulate or advance fishing, hunting and trapping in Iowa, and to administer programs that protect, restore and manage fish or wildlife. In the past, fees did not keep up with the department’s costs to provide services. That led to cuts to conservation law enforcement staff and projects to improve wildlife habitat and recreational opportunities.

    As passed by the Legislature, a person issued a youth deer-hunting license with an unused tag can hunt in other deer-hunting seasons. A youth hunter can only use the approved “method of take” or weapon during that season.

     

    HF 2370 requires the State Registrar of Vital Statistics to send a list of available post-adoption services to adoptive parents, along with the new birth certificate. The list of services is to be provided by the Department of Human Services.

     

    HF 2446 clarifies and updates Iowa Code by deleting references in Utilities Board regulatory sections that are obsolete and repeals requirements for studies that have been completed and the reports properly filed with the Legislature. In addition, two Utilities Board orders that establish regulations for voice over the internet protocol (VoIP) phone service are put into Iowa Code.

     

    HF 2478 clarifies that leased or rented construction equipment is not subject to sales tax when it is resold by the retailer who was renting or leasing the equipment.

     

    HF 2500 allows the director of Iowa’s Economic Development Authority to grant an extension of up to one year for completing projects awarded credits under the Workforce Housing program. Projects were to have been completed within three years of registration, but some projects were in danger of missing their deadline.

  • Veterans Affairs Committee – All-Bill Summary 2018

    All bills passed by the Legislature and sent to the Governor for her signature during the 2018 session. 

    SF 2200 – Veterans benefits services, events disclosure
    SF 2201 – Public Defense omnibus technical updates
    SF 2366 – IDVA omnibus
    HF 2420 – Iowa national service corps program
    *    HF 2502 – Standings: School residency for children of active-duty parents

     

    SF 2200 is a recommendation by the Iowa Attorney General to strengthen laws applicable to for-profit veterans’ benefits services that provide advice or assistance for a fee.

    A person who advertises or promotes an event, presentation, seminar, workshop or other public gathering on veterans’ benefits or entitlements must include a disclosure and disseminate it verbally and in writing at the beginning of the event. The written disclosure must be in the same type size and font as the term “veteran” or any variation of that term used in promotional materials or at the event. The disclosure must be in this format: “This event is not sponsored by, or affiliated with, the United States Department of Veterans Affairs, the Iowa Department of Veterans Affairs, or any other congressionally-chartered or recognized organization of honorably discharged members of the Armed Forces of the United States or any of their auxiliaries; products or services that may be discussed at this event are not necessarily endorsed by those organizations; you may qualify for benefits other than or in addition to the benefits discussed at this event.”

    The disclosure is not required if a government agency for veterans or an officially-recognized organization of veterans has given permission to use the agency’s or organization’s name for the event, or if the event is part of an accredited continuing legal education course. The provisions do not apply to government employees or volunteers acting in their official capacity. The Attorney General can obtain injunctive relief for unfair practices and recover a civil penalty of up to $40,000 per violation. Any civil penalty recovered will go to the Iowa Veterans Trust Fund. The prohibition does not apply to those authorized under the federal “Veterans Benefits” provisions in U.S. Code Title 38, such as those who gather personal or financial information to prepare documents for veterans.

     

    SF 2201 is a recommendation by the Department of Public Defense. It authorizes the Adjutant General to establish and manage self-funded Morale, Welfare and Recreation facilities and activities for the Iowa National Guard, similar to those operated by the U.S. Armed Forces on military reservations and air bases, and designate suitable buildings and land on National Guard properties. For example, this would allow food trucks to offer services at Camp Dodge in Johnston. The bill also requires law enforcement officers to assign a case number to a sexual assault allegation and initiate an investigation. This more closely mirrors federal military requirements while preserving the discretion of local law enforcement to close a case that does not meet evidentiary requirements for prosecution. The Iowa State Bar Association supports this change.

     

    SF 2366 is based on recommendations from the Iowa Department of Veterans Affairs and the Iowa Commission of Veterans Affairs. It increases the number of members on the Commission from nine to 11. The new members will represent the Paralyzed Veterans of America and the Iowa Association of County Commissioners and Veteran Service Officers. The appointees are selected from names submitted by the organizations. The bill increases the amount that may be spent each fiscal year from the Veterans Trust Fund from $300,000 to $500,000, which is transferred to the fund from the Iowa Lottery Authority from lottery revenues. It also authorizes the Trust Fund to grant up to $1,000 to qualified individuals for rental housing assistance (e.g., application fees) or one-time monetary assistance to prevent homelessness. This does not include rent payments, which is under Housing and Urban Development and other federal programs.

     

    HF 2420 allows the Iowa Commission on Volunteer Service to establish an Iowa National Service Corps program to provide opportunities for state agencies, political subdivisions of the state, and private, nonprofit organizations to meet state and local needs and provide opportunities for volunteer service. Certain existing programs and service positions are automatically part of the Iowa National Service Corps program. Participants are exempt from the state merit system and ineligible for unemployment compensation upon completing service. State agencies or political subdivisions will establish hiring preferences for Iowa National Service Corps or AmeriCorps participants. Funding is available through the Iowa summer youth corps established in Code section 15H.5. Funds may also come from the private sector, local, state and federal government sources, or other available funds.

     

    *HF 2502 – Standings, Division XX – School residency for children of active-duty parents: Allows a parent or guardian on active duty and stationed at, residing or domiciled at Rock Island Arsenal to enroll a child tuition-free in a public school district in Scott County, which is contiguous to that out-of-state federal military installation. The parent or guardian must transport the child to and from a point on the regular school bus route without reimbursement. The student would be counted as a resident for purposes of school funding.

  • Natural Resources & Environment Committee – All-Bill Summary 2018

    All bills passed by the Legislature and sent to the Governor for her signature during the 2018 session. 

    SF 512 – Water-quality funding for watershed improvement and infrastructure
    HF 2303 – Updates to various programs administered by DNR
    HF 2365– DNR conservation and recreation policies
    HF 2440 – Water-quality clean-up bill
    HF 2464 – Fees allowed under Land Recycling Program administered by DNR

     

    SF 512 is based on a Branstad proposal to provide additional water quality funding. It was favored by Farm Bureau, Corn Growers, Pork Producers and other predominantly agricultural groups. Agriculture Secretary Bill Northey also advocated for this legislation, seeing it as the proposal most likely to become law. Key elements of the bill include:

    Water Service Excise tax and Water Quality Financial Assistance Fund – The Water Quality Financial Assistance Fund (WQFAF) will receive money from a water service excise tax, which replaces Iowa’s sales tax on water service that is deposited into the state’s general fund. The excise tax is 6 percent. Transfers to the WQFAF are being phased-in over three years, with half of the money going to water-quality assistance and the remainder staying in the general fund. The excise tax will be repealed on January 1, 2030. It is projected to generate approximately $130 million for the WQFAF.

    Funding from the RIIF for water quality infrastructure – $15 million will come from the Rebuild Iowa’s Infrastructure Fund beginning in FY21. This money is currently being used to repay Vision Iowa bonds. It will be deposited into the Water Quality Infrastructure Fund (WQIF) to provide financial assistance for landowners to install in-field and edge-of-field structures through the Water Quality Infrastructure Program (WQIP). Diversion of RIIF funds will end July 1, 2029, or the date the sales tax is increased (thus triggering funding of the natural resources trust fund), whichever comes first. If the sales tax doesn’t increase before the sunset, RIIF will generate $135 million for projects.

    Issues not included in the bill

    • No timeline for achieving the goals outlined in the Nutrient Reduction Strategy.
    • No monitoring requirements or benchmarks for projects that receive funding.
    • No requirement that projects be part of a qualified watershed improvement plan, which would include watershed assessments, timelines for implementation, prioritizing projects and measuring progress to meet goals.
    • No targeted funding to address issues within a watershed. Governor Reynolds highlighted this “watershed approach” at her weekly news conference May 29. Iowa Agriculture Secretary Naig and Sean McMahon of the Iowa Agriculture Water Alliance joined her to highlight the importance of this approach: “The watershed approach enables farmers and other stakeholders to target the best conservation practices where they will be most effective,” McMahon said. “This helps us make the best use of taxpayer dollars while meeting local needs and improving water quality in accordance with the goals of the Iowa Nutrient Reduction Strategy.”
    • No assessment strategies or best management practices to ensure funded projects and water quality efforts adhere to proven successful approaches.

     

    HF 2303 updates programs administered by the Department of Natural Resources (DNR), including:

    • Transferring the duties for the state’s Geological Survey program to the University of Iowa. The university has operated the program through its center for Hydroscience and Engineering under contract for the last few years. This aligns the duties of the Geological Survey with the areas of expertise within the center.
    • Removing a “random inspection” requirement for DNR oversight of delegated permitting programs for sanitary sewer and water supply systems. DNR reviews every permit issued by the delegated authority, making random inspections unnecessary. The requirement was noted in the state auditor’s review of DNR programs.
    • Clarifying DNR’s enforcement authority over recycling businesses to ensure they’re engaged in legitimate recycling and not causing environmental contamination by stockpiling solid waste at an unapproved site.
    • Aligning reporting requirements for the Environmental Protection Commission (EPC) with those for DNR. DNR reports have been required on a biennial basis, while the EPC has reported annually.
    • Removing references to the redemption center grant program, which received a one-time appropriation in 2009. If the program were to receive funding in the future, the associated rules must be updated to account for changes since 2009.
    • Clarifying that the new requirements on recycling facilities did not apply to scrap metal dealers.

     

    HF 2365 clarifies that Iowa Department of Natural Resources can enter into agreements by giving the department explicit authority to do so, instead of implied authority. The bill also dissolves the Mississippi River Partnership Council and the Brushy Creek Recreation Trails Advisory Board. The Mississippi River Partnership Council had not met since 2010, and the council’s functions can be handled by other entities. The Brushy Creek Trails Board had not been active and there was a shortage of interest in membership.

     

    HF 2440 addresses problems with SF 512 (the water-quality bill). The House made changes to SF 512 through separate legislation rather the original bill. This allowed SF 512 to more quickly reach the Governor for her signature.

    Highlights of HF 2440 include:

    • Providing access to funding for a portion of the costs associated with monitoring discharge to industries required to reduce nutrient discharge from their wastewater treatment facilities.
    • Removing a provision that required drainage districts to use money from the Water Quality Infrastructure Fund to install edge-of-field infrastructure to improve water quality. The language could be construed as a mandate to install edge-of-field structures. That was not intended, since the bill deals with voluntary measures to improve water quality.
    • Ensuring consistency for references to the Iowa Nutrient Research Strategy. SF 512 created a code section with a definition of the Iowa Nutrient Reduction Strategy, but that definition was not used consistently in the bill.
    • Allowing rural improvement zones to be among the government entities that are members of a watershed management authority.
    • Giving priority funding to projects that improve surface water that are on the impaired waters list and are used for drinking water.
    • Authorizing an additional two years to use money appropriated in 2015 for a data-collection project administered by Iowa State University. The funds can be used for education and outreach on in-field agricultural practices to encourage adoption of the practices.
    • Updating dates in the bill to reflect that the bill passed the Legislature in 2018, instead of 2017.

     

    HF 2464 increases fees the Department of Natural Resources (DNR) can collect under the Land Recycling Program (LRP) from up to $7,500 to up to $25,000. Site developers who voluntarily enroll in the LRP pay the fees. The increase will allow DNR to recoup more of the costs they incur from the program. Almost half of the sites issued certificates through the LRP program exceed the existing fee cap, so approximately $30,000 per year must be covered by the DNR’s Hazardous Waste Remedial Fund. Very few projects would exceed the new fee cap level.

    The Land Recycling Program allows site developers to receive the state “signoff” when they complete a site cleanup. Upon DNR review and verification, the developer is issued a “No Further Action” certificate, which helps them prove that known environmental contamination has been addressed. This adds value to the site for future development opportunities. Fees collected by the DNR in association with site development are limited to actual costs incurred for services rendered, and are a small part of the overall costs of environmental cleanup. This increase is unlikely to impact a company’s decision to participate in the program.

  • Human Resources Committee – All-Bill Summary 2018

    All bills passed by the Legislature and sent to the Governor for her signature during the 2018 session. 

    SF 359 – Fetal tissue and six-week abortion ban
    SF 360 – Newborn Safe Haven Act
    SF 2203 – Limited nurses authorization
    SF 2228 – Licensure of genetic counselors
    SF 2298 – Pharmacy regulation and wholesaling
    HF 2285 – Ground Emergency Medical Transportation (GEMT)
    HF 2309 – Dual enrolled Medicare/Medicaid hospice benefit
    HF 2356 – Direct primary care agreements
    HF 2377 – Opioids
    HF 2414 – Child support and public coverage
    HF 2427 – Free Clinics access to SING
    HF 2444 – Child care mandatory reporting
    HF 2445 – Mental health billing process for county of residence
    HF 2449 – Department of Aging substitute decision maker
    HF 2451 – Department of Aging policy bill
    HF 2456 – Complex mental health needs 

     

    SF 359 indicates all cells and tissues external to the fetal body (cord blood) are exceptions to “fetal body parts”; bans abortions after the first six weeks of pregnancy; updates “medical emergency” to preserving the life of a mother whose life is endangered by a physical disorder, illness or injury (this does not include the psychological or emotional condition of the mother, family circumstances, woman’s age or serious risk to the future health of the mother); adds a definition of “medically necessary” that includes a pregnancy resulting from rape (IF reported to law enforcement or a family physician within 45 days of the incident), a pregnancy resulting from incest (IF reported to law enforcement or a family physician within 140 days of the incident), a miscarriage or a fetal abnormality (IF the physician determines that the fetus would not live).

    Abortion is prohibited if there is a detectable heartbeat except in cases of a medical emergency or medical necessity. This law will not apply if the fetus is 20 weeks or more post fertilization. In those cases, the 20-week abortion law passed in 2017 will apply.

     

    SF 360 expands the Newborn Safe Haven Act to allow a parent to relinquish physical custody of a newborn up to 30 days old without fear of prosecution for abandonment, and adds a procedure for a confidential call to 911 to dispatch a first responder to pick up the infant and deliver the infant to a medical facility.

     

    SF 2203 allows the Board of Nursing to issue a limited nursing authorization to complete a clinical nurse refresher course. This is for nurses who have not held a valid license within the last five years. Limited authorization allows the nurse to be in a clinical environment for training required for licensing. Currently, 18 other states allow this. This provision is not expected to be widely used because most nurses don’t let their licenses expire.

     

    SF 2228 establishes licensing for genetic counselors under the Board of Medicine, including scope of practice, requirements for licensure, continuing education and discipline. Genetic counselors are health care professionals who help people with genetic conditions or health concerns. They work in a variety of settings, including hospital clinics, diagnostic and research laboratories, advocacy organizations, government and industry. There is no fiscal impact.

     

    SF 2298 adds a certified pharmacy technician to the Board of Pharmacy; updates wholesale transactions to be in compliance with the federal Drug Supply Chain Security Act; creates a new category of “third-party logistics” provider; and amends the section on “limited drug and device distributor” for those that don’t meet the definition of wholesaler (e.g., medical gas distributors, medical device distributors, veterinary drug distributors, manufacturer/repackager, dialysis solution distribution). This separation of licensure categories ensures compliance with federal law and protects entities from being subject to federal minimum standards for wholesalers when they do not meet the definition of a wholesaler.

     

    HF 2285 allows Medicaid providers to track actual costs of Ground Emergency Medical Transportation and use the unreimbursed portion as the state match to draw down federal funds without additional state appropriations. The extra funds would provide supplemental payments to service providers.

     

    HF 2309 deals with reimbursements for dually eligible hospice patients. Payment will go directly to the nursing facility without passing through the hospice agency.

     

    HF 2356 addresses Direct Primary Care Agreements. Also known as concierge medicine, individuals can contract with health care providers to get a certain set of primary care services for a monthly fee.

     

    HF 2377 addresses Iowa’s opioid crisis. Under the bill, prescribing practitioners must register for the Prescription Monitoring Program (PMP); information in the PMP must be submitted within one business day; a surcharge can be added to registration fees to administer the PMP; electronic prescribing will be required for all opioids by January 1, 2020; an annual report will be sent to prescribers detailing their history of prescribing controlled substances; the Pharmacy Board may establish penalties for those who prescribe too much of a controlled substance; more substances are added to Schedule I and II; and Good Samaritan language allows a person to seek help for themselves or another individual using drugs.

     

    HF 2414 requires the Child Support Recovery Unit to consider public health coverage, such as hawk-i or Medicaid, when determining a medical support obligation. Currently, it only considers private health coverage. The bill also aligns Child Support Recovery code sections with federal law updates from January 2017; defines cash medical support, health care coverage and public coverage. This should cause less disruption for children and families.

     

    HF 2427 allows the Free Clinics of Iowa to electronically access the SING (background check) system. Currently, they can access the data but part of the background check process is on paper, which may stretch it out one to two months, sometimes causing volunteer health care providers to lose volunteers.

     

    HF 2444 deals with mandatory reporting for child care workers. It expands mandatory reporting requirements to those that work in a children’s residential facility and expands the list of offenses that ban people from working in child care to those on the sex offender registry and those with an arson conviction; aligns Iowa Code to federal law; and adds to mandatory child abuse providers an employee, operator, owner or other person at a children’s residential facility (chapter 237C). A person who refuses a background check cannot be involved with child care.

     

    HF 2445 allows services provided at a state hospital to be billed directly to the Mental Health and Disability Services region instead of the county auditor. This will make the billing process more efficient. The bill eliminates the outdated term “homemaker-home health aide.” It also makes updates to “county of residence.” County of residence is the county where a person lives when they apply for or receive services. The person should have established an ongoing presence with the declared, good-faith intention of living in the county permanently or indefinitely. The county of residence of a person who is homeless is the county where they usually sleep.

     

    HF 2449, a Department of Aging code clean-up bill, changes the name of the Office of Substitute Decision Maker to the Office of Public Guardian, and clarifies that local offices may use their own attorney if they wish.

     

    HF 2451 clarifies programs within the Department of Aging, adds flexibility to distribution of state funds to Area Agencies on Aging by changing “formula” to “method,” and adds language conforming to federal laws.

     

    HF 2456 addresses mental health reform based on the Complex Needs Workgroup recommendations. The bill allows disclosure of mental illness from mental health professionals to law enforcement; updates the commitment laws and process; allows for commitment hearings via video conferencing; allows contracting with a transportation agency for secure transportation of patients; changes Core Plus services to Core Services that are required; requires regions to provide start-up costs; directs regions to develop 22 Assertive Community Treatment teams, six Access Centers, Intensive Residential Service Homes and a 24-hour crisis hotline; requires a review of the commitment processes; requires a report on the role of tertiary care psychiatric hospitals; and requires a fiscal viability committee in 2018.

  • Commerce Committee – All-Bill Summary 2018

    All bills passed by the Legislature and sent to the Governor for her signature during the 2018 session. 

    SF 2169 – Alcoholic beverages licensee liability
    SF 2177 – CRA security freezes
    SF 2257 – Marketplace contractors
    SF 2262 – Final-stage motor vehicle manufacturers
    SF 2311 – Public utilities regulation
    SF 2316 – Domestic stock insurers; insurance transactions VETOED
    SF 2349 – MEWAs; Health benefit plans
    HF 2171 – Electronic ‘stop payment’ option
    HF 2175 – Mezzanine loans in life insurance legal reserve
    HF 2234 – Foreclosure timeline; judgment on rent claims
    HF 2236 – Insurance Division ‘service of process’ clean-up
    HF 2237 – Insurance Division Code clean-up
    HF 2238 – Insurers as victims of fraud
    HF 2239 – Insurance Division regulated industries clean-up
    HF 2286 – ‘Time of Sale’ real estate ordinances
    HF 2305 – Telemedicine health insurance coverage
    HF 2307 – Process for certain utility sales
    HF 2382 – Engineering, Land Surveying Examination Board
    HF 2446 – IUB omnibus
    HF 2458 – Future Ready Iowa

     

    SF 2169 limits the liability of an alcoholic beverage license or permit holder for certain alcohol-related injuries, commonly known as Dram Shop. Currently, the holder, regardless of whether the license or permit was issued by the Iowa Alcoholic Beverages Division (ABD) or by the licensing authority of any other state, is liable for all damages caused by an intoxicated person if the holder served alcohol to them when the holder knew or should have known the person was intoxicated, or who sold to and served the person to a point where the holder knew or should have known the person would become intoxicated. Under the bill, damages are available to an innocent third party, and a license or permit holder is liable only if the establishment sold and served beer, wine or intoxicating liquor directly to the intoxicated person, provided the person was visibly intoxicated at the time of sale or service.

    As passed by the Legislature, the bill also:

    • Adds a cap of $250,000 in a civil action for each plaintiff, unless a jury determines that there is a substantial or permanent loss or impairment of a bodily function, substantial disfigurement or death, and such limitation would deprive the plaintiff of just compensation for injuries sustained.
    • Directs *ABD to conduct a study every two years on minimum coverage requirements, including a comparison of Dram Shop requirements in other states, other relevant issues, and ABD findings and recommendations. The first report to the Legislature is due January 31, 2019.

    NOTE: HF 2502 – Standings, Division VIII – Dram Shop: Implements changes requested by LSA on ambiguity of the cap on non-economic damages, so as not to be perceived to be the cap on all recoverable damages. It also states that the liability insurance evaluation will be done by the Insurance Division, not by ABD.

     

    SF 2177 eliminates fees to place, temporarily lift or remove a credit freeze, and creates communication methods other than certified mail that credit reporting agencies (CRAs) must accept, including first-class mail, telephone and secure electronic methods. The legislation also shortens the time from five to three days for the CRA to put the freeze in place, and requires the CRA to provide the customer with contact information for the other CRAs (e.g., Equifax, Experian and TransUnion). The Iowa Attorney General strongly supports the proposal, which is similar to legislation in many other states. Provisions to expedite and process security freeze requests must be in place by January 1, 2019. Other provisions would take effect July 1.

     

    SF 2257 defines a marketplace contractor as an independent contractor who enters into a written agreement with a marketplace platform (e.g., online booking) to use its digital network to connect with those who want to hire a contractor for services, such as home repairs. The most notable is Handy Technologies, a company that offers a variety of services, including residential cleaning, handyman repair, furniture assembly, and plumbing and electrical work. It exempts real estate brokers and real estate agents, as well as delivery service providers (e.g., UPS, FedEx) who only transport sealed boxes, parcels, freight and envelopes for a fee. When providing services that require an Iowa license, the marketplace contractor must obtain the license and make it available to customers.

     

    SF 2262 allows a final-stage motor vehicle manufacturer to be licensed as a motor vehicle dealer of incomplete motor vehicles only, if it manufactures multi-stage manufactured vehicles. This streamlines the sales process for dealers of special manufactured equipment, such as service trucks, cranes, concrete pumpers, garbage trucks, and other construction and municipal vehicles.

     

    SF 2311 significantly deregulates gas and electric public utilities in Iowa. It removes or restricts oversight by the Iowa Utilities Board (IUB) on a wide range of issues, including energy efficiency, rate increases, coal plant emissions controls and consumer protections. It requires the IUB to review energy efficiency plan modification requests within 60 days of filing; issue orders approving or rejecting regulated emissions management projects within 90 days of filing; review any tariffs or rates imposed by rate-regulated public utilities within 30 days of filing; and specify in advance the ratemaking principles that will apply whenever a rate-regulated public utility requests advanced ratemaking for construction, investment or implementation of an emerging energy technology. It also authorizes the IUB to initiate a formal proceeding if reasonable grounds exist for investigating a public utility’s request to modify an energy efficiency plan to achieve projected annual costs below a two-percent threshold. To perform the duties associated with the legislation, including the shorter time frame for existing duties under current law, the IUB would need to hire two additional technical staff, at a cost of $228,924 annually.

    The bill exempts electric cooperative corporations and electric public utilities with fewer than 10,000 customers from regulated rates. It also prohibits the IUB from requiring gas and electric public utilities to adopt energy efficiency plans that result in projected annual costs in excess of two percent of the utility’s annual rate revenue.

    The energy efficiency caps will result in fewer programs offered, such as popular rebate programs to install efficient commercial lighting or replace inefficient commercial heating and cooling systems, fewer measures in programs, or fewer incentives available for measures and programs, or a combination of all of these. Caps could also result in cancellation of incentives or programs mid-year and create significant uncertainty about the availability of rebates for efficient equipment, such as a new HVAC system (residential or commercial). Making efficiency programs lower quality and less workable will mean lower participation and higher energy costs for consumers and businesses.

    The bill takes solar price discrimination oversight of municipal utilities away from the IUB and makes other kinds of discrimination legal. While there is a section in the code that prohibits municipal utilities from discriminating against solar by charging higher rates, there are no parameters defined or bases to challenge a municipal utility for discriminating against a person who wants to install solar as it relates to time to respond or inter-connection fees for solar customers to connect with the utility. The only recourse for the solar customer is to challenge the action of the municipal utility in court.

    Iowa has some of the lowest energy rates in the Midwest and the country, while developing one of the strongest clean energy economies. Energy efficiency and rebate programs have saved Iowa consumers billions of dollars, avoided the need to build costly new power plants, attracted businesses looking for low electric rates and created thousands of Iowa jobs. This bill undermines many of the policies that have led to Iowa’s cost-effective clean energy leadership. For example, it separates energy efficiency and demand-response programs. The Iowa Consumer Advocate (Utilities) has expressed concerns about many facets of the proposal, and Iowa families and businesses will likely see substantial utility rate increases.

     

    SF 2316 applies to transactions by domestic stock insurers, small employer group health insurers, and universal life insurance. The bill allows them to divide into two or more insurers, and provides a process for regulatory approval for such actions. The insurer must file its plan with the Iowa Insurance Division and meet various requirements. The Division will determine whether to approve the plan. The proposal is modeled after Connecticut law, and does not apply to mutual insurance companies.

    As passed by the Legislature, the bill:

    • Prohibits requiring a W-2 and tax statement for employee eligibility, and sole proprietors, partnerships and independent contractors are not required to have a W-2 to receive a medical plan as a small employer.
    • Requires a written notice to a policyholder at least 30 calendar days prior to termination of a universal life insurance policy, in an envelope that indicates it contains important information. VETOED

     

    SF 2349 relates to association health plans, a type of multiple employer welfare arrangement (MEWA). The arrangement is established by a trade, industry or professional association of employers that has a constitution or by-laws, is organized and maintained in good faith with membership stability. In the 1980s, there were significant problems with MEWAs across the country. Many were not properly capitalized and failed, leaving people with millions of dollars in unpaid health care claims. As a result, Congress gave states authority to regulate MEWAs. Under current Iowa law, no new MEWAs can be created. The only ones that exist are run by the Iowa Bankers Association and the Iowa Petroleum Marketers. The U.S. Department of Labor is in a lengthy rule-making and public-comment period on a proposal to modify MEWAs. The bill loosens Iowa law and directs the Iowa Insurance Commissioner to promulgate rules for association health plans consistent with U.S. Department of Labor regulations. Some believe that, while MEWA options are promising for Iowa, it would be prudent to wait until federal rules and guidelines are complete.

    NOTE: HF 2502 – Standings, Division XII – Multiple Employer Welfare Arrangements: Requires those forming a MEWA to be a non-profit entity; repeals the emergency rulemaking authority; exempts MEWAs in Iowa from having to comply with Department of Labor changes; and states that a MEWA registered before January 1, 2018, (applicable to  the Iowa Bankers Association and the Iowa Petroleum Marketers) is not considered a MEWA unless all members elect to be treated as such (May 5, 2018). – ITEM VETO

    The House passed the bill 69-30 with an amendment that incorporates SF 2329, relating to health benefit plans, which passed the Senate 40-9 and was on the House Unfinished Business Calendar. The amendment allows certain agricultural organizations to offer their members “health benefit plans” and requires any plan be provided through a self-funded arrangement and administered by a domestic third-party administrator that holds a certificate of registration from the Iowa Insurance Commissioner. This allows those who do not qualify for a health insurance subsidy to join the Iowa Farm Bureau and, as a benefit of membership, buy health coverage plans that are not ACA-compliant. The third-party administrator must have provided more than 10 consecutive years of previous health care administrative services for the agricultural organization, which limits this to health plans provided through Wellmark Blue Cross and Blue Shield. The plans “shall be deemed to not be insurance” and so are not subject to state and federal insurance regulations. One concern is that Farm Bureau and Wellmark could cherry-pick younger, healthier customers, leaving less healthy and older Iowans in the individual market, where Medica is the only provider in Iowa. This could further increase Medica premiums and further destabilize Iowa’s individual health insurance market.

     

    HF 2171 allows a person to electronically stop payment on a check. In Iowa, a customer’s “stop payment” order is effective for six months, but lapses if the original order is verbal and not confirmed in writing within 14 days. The stop payment can also be renewed for another six months if the bank receives written notice that the order is effective. Email is a dorm of written notice. The bill was supported by the Iowa Bankers Association, Iowa Credit Union League and Community Bankers of Iowa.

     

    HF 2175 modifies the maximum value of a life insurance company’s or life insurance association’s investments in CM3 classified mezzanine loans as a percentage of its legal reserve. Iowa law allows companies to invest up to 3 percent of their legal reserve in mezzanine loans. Currently, no more than 2 percent can be invested in CM3 loans, requiring companies to invest in riskier CM4 mezzanine loans. The bill increases the cap on CM3 loans from 2 percent to 3 percent.

     

    HF 2234 shortens the timeframe for residential foreclosures. The federal Dodd-Frank Act added a 120-day waiting period before a financial institution can start a foreclosure proceeding. Taking that into account, this proposal shortens Iowa’s foreclosure waiting periods (12 months to six months, and six months to three months.) The three-month waiting period applies to foreclosures in which the financial institution agrees to forgive the debt, which is the situation in most Iowa foreclosures. The six-month waiting period applies to the few foreclosure cases in which the financial institution does not waive the debt. The three-month and six-month wait times do not begin until the 120-day Dodd-Frank waiting period has expired. Even with this legislation, Iowa will continue to have one of the longer foreclosure timeframes in the country.

    As passed by the Legislature, the bill removes the five-year limit on claims for executing judgments for rent, leaving the limit on judgements of record at 20 years. If the judgement comes from a court not of record, the statute of limitations is 10 years. A landlord could bring a claim for rent within five years and would have 20 years to collect the judgment if the court that decided the case was a district court. A landlord could bring a claim for rent within five years and would have 10 years to collect the judgement if the court was a small-claims court. The statutory limit of two years for claims transferred to a third party remains.

     

    HF 2236 provides greater clarity and consistency in the “service of process” provisions under the Iowa Insurance Division’s regulatory authority. The changes were made following the Division’s five-year review of its administrative rules. Supporters include the Iowa State Bar Association, the Federation of Iowa Insurers and the Independent Insurance Agents of Iowa.

     

    HF 2237 is a recommendation by the Iowa Insurance Division that eliminates the words “or long-term care” from Iowa code section 507B.4 to be consistent with Iowa code section 514G.102, and repeals an outdated requirement in 505.32 to establish a clearinghouse. The healthcare.gov website fulfills this function and is linked to as needed throughout the Insurance Division website.

     

    HF 2238 specifies that an insurer can be a victim for purposes of restitution if insurance fraud has been committed against the insurer. It clarifies that when an insurer pays a victim’s insurance claim, the insurer is not the victim and has no right of subrogation.

     

    HF 2239 updates the Securities and Regulated Industries Bureau at the Iowa Insurance Division. It removes an unnecessary Iowa Code reference to NASDAQ; aligns Iowa’s crowdfunding portal law to reflect rule changes at the federal level; and updates references to the Financial Industry Regulatory Authority in Iowa Code covering viatical settlements.

    The bill also amends Iowa Code (523A.207) that covers pre-need funeral arrangements. Changes will provide consumer protections and simplify the reporting process to make it more workable for businesses. Previously, a CPA report was required for the sale of a business or the assets of a business involving pre-need funeral arrangements. Now, the Insurance Division can waive the report for good cause, and an agreed-upon procedures methodology may satisfy the requirement instead.

     

    HF 2286 deals with “time of sale” mandates that local municipalities may impose on home sales. Some local governments in Iowa have passed ordinances that create mandates for homeowners and/or buyers during a real estate transaction. Examples include sump pump hook-up inspections, utility inspections, energy efficiency audits and home inspections. This bill prohibits time-of-sale mandates for real property transactions. The legislation does not completely restrict a city’s ability to require certain inspections, but it specifies that these inspections cannot hinge on the point of sale.

     

    HF 2305 relates to insurance coverage for health care services delivered by telehealth, health care services delivered through interactive audio and video. Telehealth does not include services delivered through an audio-only telephone call, e-mail or fax. A health insurer must provide the same coverage for services, including for mental health conditions, illnesses, injuries and diseases, whether in person or by telehealth. The Insurance Commissioner may adopt rules to administer the Code section. The new law applies to third-party payment provider policies, contracts or plans delivered, issued for delivery, continued or renewed in Iowa on or after January 1, 2019.

     

    HF 2307 establishes a process for selling a city utility to another party, and requires the Iowa Utilities Board (IUB) to approve the acquisition of a water utility by an investor-owned utility already regulated by the IUB. Iowa American Water Company is the only investor-owned, rate-regulated water utility currently in the state. It provides water in most of Scott County, including Davenport and Bettendorf, as well as in the city of Clinton.

    The Utilities Board must approve any acquisition in the interest of existing and new ratepayers. A community can receive fair market value for those acquisitions. Previously, the Utilities Board only reimbursed for book value (depreciated value of the assets), which is often much less than current debt. A sale of a municipal utility requires voter approval. The process ensures transparency so that the community has the information necessary for a thorough review prior to any action.

    Key stakeholders, including the Iowa Association of Municipal Utilities, Iowa Rural Water Association, the IUB and the Iowa American Water Company helped craft the proposal. The Office of Consumer Advocate (Utilities) sees no problem with the legislation.

     

    HF 2382 allows for three licensed professional engineers and two licensed professional land surveyors on the Engineers and Land Surveyors Board. The board includes seven members, two of whom are lay people. An individual licensed as both a professional engineer and a professional land surveyor can only satisfy the requirements for one seat on the board. The Iowa Banking Division’s Professional Licensing Bureau includes the Engineers and Land Surveyors Board.

     

    HF 2446 clarifies and updates Iowa Code by deleting references in Utilities Board regulatory sections that are obsolete and repeals requirements for studies that have been completed and the reports properly filed with the Legislature.

     

    HF 2458 is an initiative known as “Future Ready Iowa,” which aims to build the state’s “talent pipeline.” It was created after Iowa received a National Governor’s Association grant, and a “Future Ready Iowa Alliance” developed and recommended a plan to ensure 70 percent of Iowa’s workforce has education or training beyond high school by 2025. Currently, 55 percent of jobs available in Iowa are “middle-skill” jobs that require more than a high school diploma but not a four-year degree: an associate’s degree, a training certificate or an apprenticeship. Only 32 percent of Iowa workers meet this skill level.

    The legislation creates a new program under the Economic Development Authority to encourage more small- and medium-sized apprenticeship programs. It also creates a volunteer mentor program; a summer youth intern pilot program for at-risk youth; an Iowa Employer Innovation Program focused on training for high-demand jobs; and a Skilled Workforce Grant Program for state universities or accredited private colleges. The Department of Workforce Development and community colleges will identify and create a list of high-demand jobs for these programs.

    —

    NOTE: health care coverage for peace officers’ surviving families

    HF 2351 addressed health care coverage for peace officers’ surviving families. It was funneled on March 15 in Senate Commerce, when Sen. Chapman cancelled the committee meeting.

    HF 2502 – Standings, Division XVII – Health Care Coverage for Surviving Spouse & Children: Requires the continuation of existing health care coverage or reenrollment for surviving spouse and surviving children of an eligible peace officer or fire fighter. The city or county may pay the cost of the coverage. Otherwise, the surviving spouse may the cost.

  • Statement from Senate Dem Leader on signing of GOP tax scheme

    Iowa Senate News Release
    For Immediate Release:     May 30, 2018   

     

    “Instead of addressing Iowa’s budget crisis, Governor Reynolds and legislative Republicans are putting our state at greater financial risk with a tax scheme that is a bad deal for most Iowans. The legislation being signed into law today is bursting with giveaways to millionaires, wealthy corporations and people who don’t live in Iowa.

    “It will raise property taxes on Iowa families, seniors and small businesses; and it will result in deep, deep cuts to health care services, job creation and education, and public safety.

    “Senate Democrats came into the 2018 session promising to support tax reform that would (a) make the tax system fairer for working families and small businesses; (b) make Iowa businesses more competitive; (c) take into account our current budget crisis; and (d) tackle corporate tax giveaways, the fastest growing part of the state budget.

    “By every measure, the tax plan approved in the 11th hour of the 2018 session failed every one of those tests.”

    -end –

  • Local Government Committee – All-Bill Summary 2018

    All bills passed by the Legislature and sent to the Governor for her signature during the 2018 session. 

    SF 481 – “Sanctuary city” ban
    SF 2226 – Groundwater hazard statements with county recorder
    SF 2227 – County resolution publication
    SF 2291 – Assessor notices
    HF 2258 – Flood mitigation funds
    HF 2340 – Fence law changes
    HF 2371 – Exempting state/municipalities liability honeybees on public property
    HF 2372 – County supervisor district plans
    HF 2379 – Municipal utility retirement systems 

     

    SF 481 deals with enforcement of immigration laws. The bill holds county or city public safety officers liable for unconstitutional detention pursuant to ICE detainer requests with financial penalties for noncompliance.

     

    SF 2226 relates to formatting requirements for groundwater hazard statements filed with a county recording office.

     

    SF 2227 allows a county auditor to print a summary of all resolutions instead of the complete text of resolutions adopted by the board of supervisors. Currently, the entire text of the resolution must be printed.

     

    SF 2291 gives counties and property owners another option for providing assessor notices. If an assessor is required or authorized by Iowa Code to send an assessment, notice or other information by mail, they may instead provide the information electronically. Private information and addresses are protected in the bill.

     

    HF 2258 allows the flood mitigation fund to reimburse costs of approved projects incurred after project approval. Local governments may use these funds to reimburse other city funds to pay for projects. Currently, government entities can seek approval for flood protection projects and the use of certain sales tax increments from the fund.

     

    HF 2340 expands governing provisions for constructing or maintaining fences on the property boundary between adjoining landowners.

     

    HF 2371 exempts state and municipal property from liability for honeybee hives purposely placed on public property, as long as the hive owner and the state acted in good faith.

     

    HF 2372 makes changes to the redistricting process for county boards of supervisors:

    • A districting plan can only be changed after six years and only by a special election.
    • County districts must be drawn using the Legislative Services Agency, similar to the Legislature’s redistricting process.
    • A supermajority vote by residents is required for counties to return to plan three.

     

    HF 2379 allows only new municipal utility employees covered by IPERS to continue in their IPERS coverage. This was reviewed and approved by IPERS staff and legal counsel.

  • Agriculture Committee – All-Bill Summary 2018

    All bills passed by the Legislature and sent to the Governor for her signature during the 2018 session. 

    HF 2281 – Fish confinement feeding operations
    HF 2422     – Noxious weed update bill
    HF 2407     – Lake pesticides
    HF 2408     – Sale of eggs by grocery stores 

     

    HF 2281 amends the animal agriculture compliance act to assign an equivalency factor of .00006 to fish weighing less than 25 grams. Fish weighing more than 25 grams retain assignment of .001.

     

    HF 2407 creates a new civil penalty for applying pesticides in natural lakes without a license.

     

    HF 2408 codifies the Women, Infants & Children (WIC) benefit that grocery stores maintain a sufficient inventory of conventional eggs.

     

    HF 2422 allows the Iowa Department of Agriculture and Land Stewardship to add a weed to the list of noxious weeds without legislative approval. The bill also creates a state weed commissioner.

  • Governor: Reveal the numbers behind Medicaid savings claims

    IOWA SENATE NEWS
    For Immediate Release: May 29, 2018

     

    DES MOINES – Senator Pam Jochum of Dubuque has accepted Governor Reynolds’ offer to provide the numbers behind alleged Medicaid savings of hundreds of millions dollars.

    “This is not about the politics, it’s about the numbers and Iowa families,” said Jochum, a legislative leader on health care issues. “That’s why I have accepted Governor Reynolds’s offer to meet with Medicaid Director Mike Randol and go over the numbers.  This meeting should, of course, be open to the public and news media.  Iowans have a right to know where and how their tax money is being spent.  We are talking about hundreds of millions of taxpayer dollars, the financial survival of the state’s health care providers, and the lives of 600,000 Iowans and their families.”

    Republican claims about the financial impact of Medicaid privatization have varied dramatically.*  When the Des Moines Register filed an open records  request for the facts, the Reynolds Administration released a one-page letter that was also sent to Senator Jochum.  The Register was offered more information, but only on “background.”

    “If money has been saved, I want to know how that happened,” said Jochum.  “Did for-profit Medicaid suddenly improve the health of Iowans with serious health care challenges? My best guess is that  most of the ‘savings’ came from failing to pay Iowa health care providers and forcing Iowa families to accept lower quality care.”

    The Republican budget approved during the 2018 session did not include a firm estimate of the cost of Iowa Medicaid for the coming year.

    “We all know for-profit Medicaid has been a disaster for Iowa families and health care providers,” said Jochum.  “I believe it has also been a disaster for the state budget.  Governor Reynolds, I look forward to a public review of the hundreds of millions of dollars Iowa has spent on privatized Medicaid and the reforms that will start fixing Iowa’s Medicaid mess.”

     

    * Reynolds Administration Claims Regarding Privatized Medicaid Costs

    Claimed Savings Date Source
    $232  million by FY 18 January 2015 Branstad/Reynolds Administration
    $47.1 million for FY 18 December 2017 Reynolds Administration
    $140.9 million (either annually OR  cumulatively) May 2018 Reynolds Administration

     

    -end-