Caucus Newsletter 5 2 2013

Thursday, May 2, 2013 www.iowahouserepublicans.com House Republican Talking Points Democrats Surpass Their Own Budget ...

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Thursday, May 2, 2013

www.iowahouserepublicans.com

House Republican Talking Points Democrats Surpass Their Own Budget Targets

The House Republicans’ budgets outline principles used to get the state’s fiscal house in order: In February, House Republicans and  Republican budgets do not spend Senate Democrats each released their more money than the state takes in; budget targets. At that time, Senate  Republican budgets do not use oneDemocrats proposed spending $6.9 biltime money to pay for on-going exlion in Fiscal Year 2014 ($487 million penses; more than House Republicans) resulting  Republican budgets do not intentionin an 11 percent increase in state Genally underfund entitlement programs eral Fund spending over last year’s level. to balance the state’s budget; The Senate proposal spends $1.05 for  Republican budgets will return unevery dollar of state revenue. used tax dollars to Iowa’s taxpayers. By contrast, the House Republican budget spends 98 cents for every dollar of state revenue. The Fiscal Year 2014 proposal by House Republicans spends $6.4139 billion. This is a 3 percent increase over last year’s spending level and it protects priority services in the areas of education, health and human services and public safety.

Governor’s Statement on Healthy Iowa Plan

“The governor commends House Republicans for taking the first step toward implementing modern health care that focuses on making Iowans healthier. The current Medicaid program is old, bureaucratic, outdated and fails to make Iowans Over the last 20 years, state revenue has healthier. Iowa's most vulnerable deserve health care that offers them the averaged 3.4 percent growth. commitment of better health, which Medicaid fails to do. House Republicans have As budgets have been working through the legislative process over the past few pioneered a new method of health care that strives to make vulnerable Iowans weeks, it has become clear that Senate healthier, while protecting taxpayers. Democrats have already SURPASSED This is a huge win for Iowans.” their own unsustainable budget targets. The budgets that passed the Senate have spent nearly $47 million MORE than what their initial targets laid out. These changes have raised the amount of the Senate’s budget to an 11.6% increase in state General Fund spending over last year’s level, and they still have not acted on the Standings bill. This kind of spending is creates uncertainty and highlights the Senate Democrats’ insatiable appetite for spending more and more of Iowans’ hard earned tax dollars. This kind of reckless spending is what leads to future across the board cuts.

Inside this issue: Appropriations

2

Agriculture

2

Economic Growth

4

Education

4

Environmental Protection

4

Human Resources

6

Judiciary

6

Natural Resources

7

State Government

7

Transportation

7

Veterans Affairs

7

Ways and Means

8

Page 2

House Republican Newsletter

Appropriations

(Contact Brad Trow at 1-3471.)

State Revenue Numbers Rebound in April After an unexpected dip in state revenue in March, General Fund revenue in April rebounded strongly. Through the first nine months of FY 2013, revenue to the state of Iowa has grown by 8.7 percent. In terms of dollars, revenue is $411 million more than the previous year at this point. Amongst the main categories, personal

income tax continues strong growth in FY 2013. Through the first nine months, it has grown by 9.8 percent over the previous year. That increase is $288 million. Corporate income tax collections also remain healthy, with the growth for the year running at 14.8 percent. One area of concern is sales and use tax, which has seen growth of only 2.1 percent so far this fiscal year.

For the month of April, state revenue was 17.6 percent higher that April 2012. This increase is most likely due to Congress’s decision to give farmers an extension on when they had to file their taxes. Still, there was strong growth in areas beyond agriculture in the month.

Budget Bill Status – As of May 1, 2013 1:00 PM Budget Bill

Bill Number

Status

Administration & Regulation

HF 603

CONFERENCE COMMITTEE

Agriculture & Natural Resources

SF 435

CONFERENCE COMMITTEE

Economic Development

SF 430

CONFERENCE COMMITTEE

Education

HF 604

CONFERENCE COMMITTEE

Federal Block Grants

HF 614

Passed by House on April 2, Amended by the Senate on April 17 - ON HOUSE FLOOR

Health & Human Services

SF 446

Passed by the Senate on April 18 - ON HOUSE FLOOR

Justice Systems

SF 447

CONFERENCE COMMITTEE

Judicial Branch

SF 442

Passed by Senate on April 15 - ON HOUSE FLOOR

RIIF (Infrastructure)

HF 638

Passed House on April 23, Amended by the Senate on April 30 – ON HOUSE FLOOR

Standing Appropriations

SF 452

Passed Senate on April 29 – ON HOUSE FLOOR

Transportation

HF 602

Passed House & Senate – SENATE MTR

Agriculture

(Contact Lew Olson at 1-3096.)

Governor Branstad Signs Three Agricultural Bills On Wednesday, April 24, 2013, Governor Branstad signed three bills that were approved by the House Agriculture Committee and the both the Iowa House and Senate. The bills involved were House File 312, House File 457, and Senate File 316. SF 316 tweaks existing state farm tenancy law to require termination notice of all

cropped farmland not operated under a cost-share agreement regardless of farm parcel tract size. Notice must be provided in writing by September 1st of a year if the land will not be leased to the current farm tenant for the next crop year and the existing contract didn’t specify a termination date of the agreement. Prior law exempted

all tracts of 40-acres of less and the new law will only exempt tracts of less than 40acres of farmland leased for primarily animal feeding operation purposes from the general notification provisions. (Continued on page 3)

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House Republican Newsletter

new law provides instead of competitive bid for the lease amounts, that DNR will use past rental history, market factors, and any HF 312 directs DNR to expand the scope DNR specified supplemental conservation of manure applicator continuing education practices expense that might be applicable to include topics that emphasize practical and the measure provides that the term of and cost-effective methods to prevent maThe third bill enacted by the Governor last the beginning farmer lease with DNR shall nure spills and limit the impact of manure either be no more than 7-years or less if Wednesday was House File 457 that dispills, particularly from manure storage based on a conservation supplemental rects DNR to leases for agricultural land structures. The bill instructs DNR to provide that the continuing instructional course that it holds and manages in each county to plan. In the instance that more than one qualified beginning farmer is interested in a when those existing leases expire to offer be made available via the DNR’s internet particular land lease; DNR would select the site, the internet site of an instructor teach- such leases preferentially to qualified beperson who would get the lease by draw by ginning farmers. The new law specifies ing this course, and/or ISU extension’s lot. If no beginning farmer expresses an that DNR cannot lease to any particular internet site and be available to persons interest in a DNR offered land lease, then qualified beginning farmer more than 240 required by DNR to take such instruction DNR could lease that land under existing acres of crop land, but explicitly doesn’t for certification of manure applicator. HF rules to a non-qualified beginning farmer. 312’s online manure applicator certification limit the amount of land that might be provisions are contingent on the legislature grazed under DNR lease. Furthermore, the (Continued from page 2)

providing DNR with the estimated $250,000 needed to develop and put this educational material online on this money is in the House version of FY 2014 IDALS DNR and EFF appropriation measure.

USDA Reminds Farmers that Conservation Stewardship Program Applications Due by May 31 experts.

separate that will be under the applicant's control for the term of the proposed conA CSP self-screening checklist is available tract. CSP offers participants two possible to help producers determine if the program types of payments: is suitable for their operation. The checklist  Annual payment for installing and highlights basic information about CSP adopting additional activities, and imeligibility requirements, stewardship threshproving, maintaining, and managing old requirements and payment types. For existing activities, and the checklist and additional information, The USDA Secretary explained that alt Supplemental payment for the adopvisit the CSP website: hough applications are accepted all year, tion of resource-conserving crop rota(http://www.nrcs.usda.gov/wps/portal/nrcs/ farmers, ranchers and forestland owners tions interested in CSP should submit applicamain/national/programs/financial/csp/) or tions by May 31 to their local NRCS office visit your local USDA NRCS office. Eligible Lands that may enter into the CSP to ensure they are considered for this include—cropland, grassland, prairie land, year's funding. The voluntary program CSP encourages land stewards to improve improved pastureland, rangeland, noninallows producers to go the extra mile in their conservation performance by installing dustrial private forest lands, agricultural conserving natural resources while also and adopting additional activities, and imland under the jurisdiction of an Indian maintaining or increasing the productivity of proving, maintaining, and managing existTribe, and other private agricultural land their operations. Playing a significant part ing activities on agricultural land and nonin- (including cropped woodland, marshes, in conserving and improving our nation's dustrial private forest land. The State Con- and agricultural land used for the producresources, producers enrolled an additional servationist, in consultation with the State tion of livestock) on which resource con12.1 million acres in CSP last year, bringTechnical Committee and local work cerns related to agricultural production ing the total number of acres to more than groups, will focus program impacts on nat- could be addressed. 50 million. Many of the CSP enhanceural resources that are of specific concern ments improve soil quality, which helps for a State, or the specific geographic areland become more resilient to extreme as within a State. Applications will be evalweather. Several other improvements are uated relative to other applications adavailable for producers, including intensive dressing similar priority resource concerns rotational grazing, intercropping and wildlife to facilitate a competitive ranking process friendly fencing. Because of the extreme among applicants within a State who face weather in 2012, more interest and partici- similar resource challenges. The entire pation in the cover crop enhancements is operation must be enrolled and must inexpected this year, according to NRCS clude all eligible land operated substantially On May 1, 2013, the United States Department of Agriculture (USDA) announced that the Natural Resources Conservation Service's Conservation Stewardship Program (CSP) will provide nearly $175 million in funding for up to 12.6 million additional acres of enrollment this year.

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House Republican Newsletter

Economic Growth Survey Shows Midwest Employers Remain Optimistic The results of a quarterly survey released by the QPS Employment Group indicate economic trends in the Midwest may be headed in the right direction. Of the 320 companies surveyed in Wisconsin, Illinois, Iowa, and Kansas City, Missouri, the mast majority said they expected conditions to

either remain the same or to improve. Very few expect conditions to worsen. 46% said that they expect to increase hiring, while only 4% said they would decrease. 48% of employers expect business to improve, while only 3% expect it to decline. When asked about the biggest issues facing the

Contact Louis VanderStreek at 1-3626.)

companies, 52% mentioned the economy, 46% mentioned lack of qualified employees, 37% mentioned healthcare/insurance costs, 18% mentioned material costs, and 17% mentioned government regulations.

Education

Contact Jason Chapman at 1-3015.)

Iowa to Consider National Science Standards This fall, Iowa will be making a decision whether to adopt new science standards for K-12 education known as the Next Generation Science Standards (NGSS). Iowa has been one of 26 states guiding the development of the new science standards. The standards are meant to be a common set of learning expectations in science for students in kindergarten through high school.

standards that are internationally benchmarked and identify science and engineering practices and content with a focus on preparing K-12 students to go to college or to enter the workforce. The standards were released in April and are available for voluntary adoption in states.

ed. Only half of the states are currently even officially considering using them. Moreover, the inclusion of robust standards on evolution and climate change may make adoption a political hurdle.

“standards on evoluƟon and

The announcement this week was that the climate change may make Iowa Department of Education will convene a statewide task force to review the Next adopƟon a poliƟcal hurdle” The NGSS, were developed in a two-part Generation Science Standards. Members process. The first step was the developof the task force will make a recommendament of a frame-work for the standards. tion later this year to the State Board of Iowans wishing to serve on the statewide The second step was state-level input by Education about whether to adopt the voltask force can request application inforthe 26 member states. Involved in the both untary standards as part of the Iowa Core. mation and materials from the Department steps were the National Research Council, by contacting MaLinda Hugh-Reynolds at the National Science Teachers Association, There is some controversy surrounding the [email protected]. the American Association for the Advance- standards, just as there is surrounding the Those who wish to provide comments ment of Science, and Achieve, a group Common Core State Standards, which founded in 1996 by the nation's governors Iowa adopted in 2010 for literacy and math. about Iowa’s review of the Next Generation Science Standards may submit them in and corporate leaders as an “independent, Supporters argue that internationally bipartisan, non-profit education reform orbenchmarked common standards offer the writing to [email protected]. ganization that helps states raise academic promise of increasingly meaningful comTo read the Next Generation Science standards and graduation requirements, parisons of student performance among Standards, visit http:// improve assessments and strengthen acstates. But it remains to be seen how www.nextgenscience.org/. countability.” The goal was to develop widely these new standards will be adopt-

Environmental Protection

(Contact Lew Olson at 1-3096.)

Governor Signs Three Environmental Protection Committee Bills On Friday, April 26, 2013, Governor Branstad signed three bills that deal with environmental protection (House File 541 deals with dam reconstruction standards, HF 311 deals with expediting DNR permit processing; and Senate File 388 deals with eligible Water Resources Restoration Sponsor program projects). HF 54 allows the reconstruction of a dam overtopped by unprecedented flooding to use the flood easement that applied to the

dam before disaster as long as the former 1. normal pool elevation is not exceeded by the reconstructed spillway elevation and the flood easement or ownership are required to the top of the spillway elevation. HF 311 makes four changes to reduce burdensome regulations by increasing conformity to federal law; and improve permitting assistance to clients applying for water withdrawal permits. This measure:

2. 3.

Reduces the requirement that applicant place two public notices to one notice in newspapers for coverage under three National Pollutant Discharge Elimination Permit System (NPDES) storm water general permits; Amends 455B.186 to clarify that the proper use of aquatic pesticides is not prohibited in Iowa; Amends DNR Code provisions concerning permit for water diversion, stor(Continued on page 5)

Page 5 (Continued from page 4)

4.

age and withdrawal (455B.265) to require DNR to allow an applicant an extension of time to submit more information to resolve a contested or complex application; Amends Code section 466.8 and466.9 to remove a requirement that homeowners seeking access to the Onsite Wastewater Assistance Program must live outside a city corporate limit.

SF 388 amends an existing Code provision (455B.199.7.b) dealing with Water Re-

House Republican Newsletter sources Restoration Sponsor program. The Code currently prohibits a proposed sponsor project from including any parking lot aspects to allow for such parking lot projects if it is constructed in a manner that improve water quality and construction is consistent with field office technical guide published by the federal Natural Resources Conservation service of the United States Department of Agriculture, or the Iowa Stormwater Management Manual published by the Iowa Department of Natural Resources. This legislation opens the door to emergent practices and technology that can significantly treat and conserve water quali-

ty from water that would run-off during precipitation events from parking lots. Some of the technologies that might be allowed by this change could include permeable parking lots where a significant portion of precipitation can flow through the pavement rather than running off; or constructing parking lots in a manner where potential runoff is channeled into a receiving pond where sediment can settle and some nutrient could be detained before moving downstream in a watershed or where the parking lot run-off water can cool before it is discharged into stream.

EPA Issues Final Decision on Iowa's 2012 List of Impaired Waters On Friday, April 26, 2013, the United States Environmental Protection Agency (EPA) issued a press release in which it announced that EPA has approved Iowa’s 2012 list of impaired waters requiring Total Maximum Daily Load calculations. IDNR submitted its impaired waters list to EPA on April 1, 2013, for review and approval as required by the Clean Water Act. EPA commends IDNR for its work in pre-

paring the list of impaired waters. In Friday’s decision, EPA approved the removal of 73 water bodies and the addition of 78 water bodies. Today’s action brings the total number of impaired waters on the state’s list to 479. A water body is placed on the impaired waters list when monitoring finds that pollutant levels prevent the lake, river, or stream from attaining its beneficial uses. A water body can be removed from the list if it meets its beneficial uses or if a

pollution reduction plan for a water body is approved by EPA. Beneficial uses in Iowa include human recreation, water supply, and maintaining healthy aquatic life. EPA’s April 24, 2013, decision letter provides a more detailed description of EPA’s review and the basis for this action. The decision letter, including the final 2012 impaired waters list, is available at www.epa.gov/ region7/newsevents/legal.

EPC Moves Stationary Engine Standards Forward On Thursday, April 25, 2013, the Iowa Department of Natural Resources (DNR) issued a press release in which it announced that the state agency is proposing rule changes to adopt the federal air toxics standards for stationary engines commonly known as the RICE NESHAP. “RICE NESHAP” is the acronym for National Emission Standards for Hazardous Air Pollutants (NESHAP) for Reciprocating Internal Combustions Engines (RICE). Upon adoption of RICE NESHAP amendments, the DNR rather than EPA will implement and enforce these regulations in Iowa. This allows the DNR to provide compliance assistance and outreach to affected facilities as soon as possible.

engines, and the RICE NESHAP requirements could increase electricity rates for consumers. In response to the concerns from Governor Branstad as expressed in EO 72 and concerns from other stakeholders, EPA agreed to reconsider the RICE NESHAP. Consequently, EPA updated the standards to provide more circumstances for emergency engines and for engines that participate in electricity management programs to operate under non-emergency conditions. The DNR is now proposing to adopt the amendments to the RICE NESHAP.

Rulemaking Status On April 16, 2013, the DNR requested permission from the EPC to publish a Notice of Intended Action to adopt the RICE Need for Proposed Rule NESHAP amendments. The DNR requestIn 2010, the Environmental Protection Commission (EPC) adopted earlier amend- ed that the EPC adopt the RICE NESHAP by reference so that all compliance deadments to the RICE NESHAP. Executive lines will be according to federal timelines. Order (EO) 72 subsequently rescinded The EPC approved the DNR’s request to adoption of the RICE NESHAP amendpublish the Notice of intended Action and to ments. EO 72 stated the RICE NESHAP accept formal public comments on the prowas too costly for small utilities that mainposal. tain and operate rarely used emergency

More information and instructions for providing public comments For more information and to access the proposed rule changes, go to Air Quality Public Input or http://www.iowadnr.gov/ InsideDNR/RegulatoryAir/ StakeholderInvolvement/PublicInput.aspx (scroll down to Administrative Rules). The DNR will hold a public hearing on the proposal on Tuesday, June 4, 2013, at 10:00 a.m. at the DNR’s Air Quality Bureau offices.

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House Republican Newsletter

Human Resources

(Contact Carrie Kobrinetz at 5-2063.)

House Passes Bill to Provide 69,000 Iowans with Health Care limited to: preventative care services, health home services, physician services, inpatient and outpatient hospital services, emergency transportation services, prescription drugs, diagnostic services, duraPeople ages 19-64 will be eligible for the Healthy Iowa plan benefits if they meet the ble medical equipment and medical supplies, rehabilitative services (including therfollowing criteria: the person is a U.S. citiapy), home health services, and mental zen or alien, the person is a resident of Iowa, the person has a social security num- health and substance use disorder services. ber, and the person has a household inThe purpose of the Healthy Iowa Plan is to come at or below 100% of the federal povAfter passage, Governor Branstad released establish and administer a plan to promote erty level. The following people are not eligible for the Healthy Iowa Plan: a person this statement: “The governor commends increased access to health care, quality House Republicans for taking the first step eligible for Medicaid, a person receiving health outcomes, and the use of personal toward implementing modern health care Medicare, and a person who is pregnant responsibility measures that encourage that focuses on making Iowans healthier. and eligible for Medicaid people with incomes below 100% of the The current Medicaid program is old, bufederal poverty level to be cost-conscious consumers of health care and to participate Following enrollment in the plan, a member reaucratic, outdated and fails to make Iowans healthier. Iowa's most vulnerable is eligible for benefits for a 12 month periin healthy behaviors. The plan requires deserve health care that offers them the od. The bill requires DHS to review the members to contribute a small amount of commitment of better health, which Medimember’s eligibility on at least an annual money for the plan, although the amount basis. Members of the plan get to choose caid fails to do. House Republicans have required would change based on income. pioneered a new method of health care that their primary care provider. In addition, The plan would also create “my health restrives to make vulnerable Iowans healthiwards accounts,” which would be used for providers have to be within 30 minutes or 30 miles of the person’s place of residence. er, while protecting taxpayers. This is a payment of required contributions, cost huge win for Iowans.” sharing, and health improvements by memBenefits under the plan include but are not bers. Members would be offered cost inOn April 30th the House debated a proposal called the “Healthy Iowa Plan.” The bill was introduced by Governor Branstad as an alternative to Medicaid expansion. The bill passed on a vote of 51-49. This legislation will cover people below 100% of the federal poverty level with a benefit plan similar to the state employee benefit package. Below are some highlights of the bill:

centives for their plans if they completed various things such as efforts to quit smoking or nutrition counseling.

Judiciary

(Contact Amanda Freel at (1-5230.)

Iowa Business Specialty Court Begins Hearing Cases On Wednesday, May 1st, the Iowa Business Specialty Court Pilot Project began accepting qualifying cases. The three judges assigned to the court will hear cases on complex commercial litigation with $200,000 or more in dispute.

The Iowa Business Specialty Court will focus on cases where a claim exists totaling $200,000 or more and involves areas including, but not limited to: technology licensing agreements, intellectual property rights, patent rights, breach of contract, fraud, commercial class action, trade seMembers of the Iowa Civil Justice Reform crets, antitrust and business tort claims. By Task Force suggested the creation of the Iowa Business Specialty Court after consid- removing these large and time consuming cases from the general case load, all civil erable review of Iowa Courts. The Task Force was designed to find ways to create cases should see faster trial times. In 2012, there were approximately 36,000 civil casefficiency in the civil court system. Many times, civil cases are delayed because they es filed in Iowa, while not all of these cases are considered not as important as criminal will qualify for the Iowa Business Specialty Court, those that do qualify and are moved cases. However, to the parties involved, will help clear space for smaller cases. these cases are very important and deserve to be heard in a timely manner. The Iowa Business Specialty Court should help Three judges were selected by the Iowa cut down on the time some civil cases have Supreme Court to serve on this specialty court. Each judge selected has trial and to wait to be heard by a judge.

judicial experience in complex commercial cases. Judges Michael Huppert of Des Moines; Annette Scieszinski, of Albia, and John Telleen, of Le Claire will be serve during the pilot project. The Iowa Business Specialty Court will run as a three year pilot project. Other states have implemented Specialty Courts including; Alabama, Arizona, California, Maryland, New York, Oregon Pennsylvania and South Carolina. These Courts have reported success with the model and it is hoped that the Iowa Business Specialty Court will succeed and become a fixture of the Iowa Court System.

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House Republican Newsletter

Natural Resources

(Contact Carrie Kobrinetz at 5-2063.)

DNR Conducts Spotlight Deer Survey The Iowa Department of Natural Resources conducts its nighttime spotlight survey for deer and raccoons each spring. The survey purpose is to estimate deer densities and count raccoons, coyotes, house cats, jackrabbits, bobcats, badgers, skunks, opossums, foxes or other furbearers along defined routes across Iowa. The data is used to follow trends in deer

numbers. It is used for tracking as an index in conjunction with other information like harvest surveys and the bow hunter survey. The spotlight survey has been completed for decades and is an important element of the DNR management plan. This year, the survey may shed some light on the impact of last year’s EHD outbreak on the deer herd. In conjunction with information such as hunter harvest, this survey

will help the DNR gauge where Iowa’s deer herd is after the outbreak.

State Government

(Contact Kristi Kielhorn at 2-5290.)

Online Alcohol Compliance Training Successful—Citations Down The Iowa Alcoholic Beverages Division (ABD) launched an online alcohol seller and server training program called Iowa Program for Alcohol Compliance Training (I -PACT) over one year ago. The program’s goal was to increase compliance with state alcohol laws through education. More than 12,500 users have logged onto the program and received certification. In the year prior to starting the online edu-

cation, 370 sale-to-minor citations were issued across the state. In the first year after I-PACT implementation, 110 fewer sale-to-minor citations were issued. Violations for illegal sales of alcohol to minors include a $500 criminal fine to the clerk, as well as a $500 civil fine to the retail establishment for the first violation. Subsequent violations can result in higher fines, license suspension or even license revocation. In the past year, 10 establishments have

avoided penalties through the affirmative defense by having employees become IPACT certified prior to receiving a sale-tominor violation. The training is available at I-PACT.com. All individuals who sell alcohol for on- or offpremises consumption are encouraged, but not required to take the training. The training is offered free of charge.

Transportation

(Contact Kristi Kielhorn at 2-5290.)

DOT Conducts Study of Vehicle Usage on Iowa Roadways The Iowa Department of Transportation will be working on a study this spring and summer to determine how many cars, trucks and other vehicles are using the state's roadways. This year’s efforts are concentrated in northeastern Iowa. Employees will spend peak hours between 7 a.m. and 6 p.m. at one location counting the morning, noon and evening traffic. They will count and classify vehicles, record vehicle turning

movements, tally helmet usage by motorcyclists, and gather other data necessary to plan the future of Iowa's roadway systems. Some employees will be placing and checking portable traffic recorders in the same general areas. Another data collection method involves capturing images of state highways. This program covers half

of the state yearly and utilizes a van with two mounted cameras that collect 200 images per mile. At the same time, precise location information is collected through a global positioning system. That data is stored along with the images on the van’s onboard computer system. This van may be seen operating on state highways in the northern half of Iowa this year.

Veterans Affairs

(Contact Colin Tadlock at 1-3440.)

VA Withholds Executives' Bonuses over Claims Backlog The Federal Department of Veterans Affairs is withholding bonuses for senior officials who oversee disability claims, citing a failure to meet performance goals for reducing a sizable backlog in claims processing.

who have asked President Obama to try to speed the process.

"We remain confident that VBA senior executives are dedicated to our nation's veterans, and they will continue to lead our drive toward VA's goal: eliminating the claims backlog in 2015," Taylor said.

VA spokesman Josh Taylor said Monday the savings would be used to help reduce the backlog. He didn't provide specifics, nor The backlog has increased dramatically could he say how many people would be over the past three years, and the departaffected or how much the savings would be. In all, records show the department paid its ment has come under intense criticism from The withholdings apply only to Veterans senior executives a total of $2.8 million in (Continued on page 8) veterans groups and members of Congress Benefits Administration (VBA) executives.

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House Republican Newsletter (Continued from page 7)

The VA and other federal departments rou- Political appointees such as Allison Hickey, tinely give bonuses to Senior Executive who oversees the Veterans Benefits AdminService workers and other non-political em- istration, are not offered the bonuses. ployees. The Office of Personnel Management put new limits into place in June 2011. The number of disability claims pending for The VA's total spending for executives bolonger than 125 days jumped from less than nuses reflected those restrictions and 200,000 to nearly 500,000 in fiscal 2011. dropped about 25 percent that year. bonuses in fiscal year 2011. Three staff members received the top payment of $23,091 each.

Ways & Means

(Contact Dustin Blythe at 1-3452.)

Two more bills move through Ways and Means HSB 227 - a sales tax exemption for wastewater treatment or effluent treatment services passed the House Ways and Means Committee with a vote of 24-0. The bill excludes water treatment or effluent treatment services to a paper mill from sales tax. Iowa and South Dakota are the only two states that tax this. The two mills  in Iowa produce paper from 100% recycled fiber. Because of this, they do not have the boilers and waste treatment facilities that a normal integrated paper mill would have. Thus, the mill contracts for services such as effluent treatment from the cities. The tax implications for these two mills are about $300k annually.

SF 432 – this provides changes to the Iowa Code recommended by the Iowa Depart ment of Revenue that would improve the agency’s efficiency. It passed the House Ways and Means Committee with vote of 24-0. Some of the highlights of the bill are: 

Eliminates the requirement that notices

With the exception of the sales and use tax and the environmental protection charge, the Department does not send the 20-day notice for the other taxes it administers.

of assessment issued after the twentieth day of the month include the interest calculations for both the current month and the following month. This change is consistent with current Department practice. Eliminates the requirement that the Department send a notice to sales or use taxpayers if the return is incorrect or insufficient. This additional notice causes taxpayer confusion about the proper timeline for the administrative appeal process. With the exception of the sales and use tax and the environmental protection charge, the Department does not send the 20-day notice for the other taxes it administers. Eliminates the requirement that the Department send a notice to environmental protection charge taxpayers if the return is incorrect or insufficient. This additional notice causes taxpayer confusion about the proper timeline for the administrative appeal process.



Authorizes the Department to use geographic information system (GIS) technology to facilitate the property assessment and equalization process and also provides that the Director may require local assessing authorities to provide information to the Department using GIS file formats.



Allows the Director to provide assessors with multiple locations for taking their yearly examinations and to facilitate the use of an electronic process. This will reduce the travel time and expense that many assessors incur in traveling to Des Moines each year to take the exam. In addition, it will reduce the use of paper and automate manual processes, thus decreasing the Department’s administrative costs.