Caucus Newsletter 9 14 17

September 14, 2017 Appropriations www.IowaHouseRepublicans.com (Contact Brad Trow at 1-3471) Kentucky Governor asks A...

0 downloads 314 Views 1MB Size
September 14, 2017

Appropriations

www.IowaHouseRepublicans.com (Contact Brad Trow at 1-3471)

Kentucky Governor asks Agencies to cut 17 percent out of current year budget Kentucky Governor Matt Bevin this week asked a large section of Kentucky state agencies to reduce their current year spending by 17 percent, as the state faces revenue shortfalls. The Governor’s call would reduce spending by $350 million in the current budget year. Bevin applied the reduction to all state programs, with the exception of school funding, Medicaid, public universities, prisons, and the state’s debt payments. Bevin’s reductions would

“amount to eliminating two months of funding for the remaining agencies.”

The savings from this would be used to cover a $200 million shortfall in revenue projected for the current year and to put $150 million back into the state’s rainy day fund. Legislators said the revenue shortfall was due to actual revenue collections not being expected to meet the projections used to put it together. The budget situation is a second major issue for the state’s legislature to examine this fall. Bevin has already called a special session to address the financial status of his state’s public employee pension plans. Kentucky’s pension plans currently have an unfunded liability estimated to be around $40 billion. Bevin has said that this amounts to $15,000 per resident of the Commonwealth.

Minnesota Supreme Court Issues Confusing Ruling on Legislature’s Budget On September 8, the Minnesota Supreme Court ruled that the state’s constitution does give Governor Mark Dayton the power to veto funding for the Minnesota’s legislature. At the close of the 2017 legislative session, the Democrat governor vetoed the legislative budget as a way to force the Republican-controlled legislature to renegotiate a session-ending deal where Dayton allowed a series of tax and policy changes to go into effect. The short, unanimous opinion stated that Dayton’s actions were in compliance with the constitution. The court then went on to say “Constitutional powers may not be used to accomplish an unconstitutional result.” The meaning of this statement was not

explained by the court. Instead, the court ordered the governor and the legislature to go into a mediation process over the dispute. Currently, the Legislature is funded through September 30 through a temporary agreement with the Governor. The lack of an appropriation puts the state’s bond rating in jeopardy, as previous legislatures had bonded for the building of a brand new Senate office building in St. Paul. The bond payments are a part of the Legislative budget. Both sides agreed to the appointment of a former Minnesota supreme court justice to serve as mediator, with talks expected to begin by the end of this week.

Inside this issue: Appropriations

1

Agriculture

2

Commerce

3

Economic Growth

3

Education

5

Environmental Protection

6

Human Resources

6

Judiciary

6

Labor

7

Natural Resources

8

Public Safety

8

State Government

9

Transportation

9

Veterans Affairs

10

Ways and Means

10

Page 2

House Republican Newsletter

Agriculture

(Contact Lew Olson at 1-3096)

Century and Heritage Farms Recognized During Iowa State Fair On Friday, September 1, 2017, the Iowa Department of Agriculture and Land Stewardship (IDALS) issued a press release in which it noted that Iowa Secretary of Agriculture Bill Northey had recognized Century and Heritage Farm families during a ceremony at the State Fair again this year. To qualify, a family must have owned at least 40 acres for 100 years or more in the case of Century Farms and 150 years or more for a Heritage Farm. This year 354 Century Farms and 119 Heritage Farms were recognized.

families that have owned and worked a farm for 100 years or more. Including this year’s recipients, more than 19,000 farms from across the state have been recognized. The Heritage Farm program was started in 2006, on the 30th anniversary of the Century Farm program and more than 1,000 farms have been recognized. The 2017 Century and Heritage Farms Program ceremony was held at the Iowa State Fair in the Pioneer Livestock Pavilion on Thursday, August 17.

IDALS has partnered with the Iowa Farm Bureau Federation since 1976 to recognize

Spreadsheets that list all the families recognized with a Century or Heritage Farm

Awards can be accessed: Century Farms Heritage Farms Photos were taken of families that came to the ceremony and the final column lists the families for which there is a picture available. All photos are posted on the IDALS’ Flickr page at https://www.flickr.com/photos/ iowaagriculture/albums.

USDA Seeks Public Input on Animal Welfare Act Licensing Requirements On Wednesday, August 23, 2017, the United States Department of Agriculture (USDA) issued a press release noting that the 51st anniversary of the Animal Welfare Act (AWA) occurred that week, and U.S. Secretary of Agriculture Sonny Perdue asked for input from the public to help determine potential updates to the law’s licensing requirements. The Animal and

Plant Health Inspection Service (APHIS), within USDA is tasked with upholding and enforcing the AWA. Each year, USDA issues nearly 6,000 licenses to people who breed, sell, or exhibit animals for commercial purposes. The department is responsible for ensuring that these licensees comply with the AWA’s

humane standards of care, which enables the American public to confidently purchase pets and view animals on public display. The full list of potential changes was published in the August 24, 2017 Federal Register and is available at the Regulations.gov website.

USDA Awards $5.3 Million in Grants for School, Child Care Nutrition Efforts On August 31, 2017, the United States Department of Agriculture (USDA) Food and Nutrition Service issued a press release in which it announced new resources for nutrition education and food service training are coming to schools during this back to school season in 11 states selected to receive a total of $5.3 million in U.S. Department of Agriculture grants awarded today.

lessons for schools and child care providers. States receiving grants include: Arizona, Iowa, Kansas, Louisiana, Michigan, Minnesota, Missouri, Montana, Rhode Island, Virginia and Wisconsin. For more information on the grantees and projects can be found on the Team Nutrition website. Grantees will use these funds for a variety of purposes including training in menu planning, food preparation, nutrition Team Nutrition Training Grants are compet- education, and local school wellness poliitive three-year grants of up to $500,000 per cies. At the completion of the grants, the state awarded annually as part of USDA's best practices and materials developed with Team Nutrition initiative, which provides these grants will be shared with all states so resources, training, and nutrition education that others may also benefit from the invest-

ment. In regards to the Iowa awards, the Iowa Department of Education will support and improve healthy child care environments throughout the State by encouraging healthy habits to start early. They will deliver training to 30 child care centers and approximately 400 family day care homes on updated Child and Adult Care Food Program meal pattern requirements and ways to incorporate locally-grown foods on menus. Team Nutrition’s Grow It, Try It, Like It! nutrition education kit will be used to encourage children to try new foods. Parents and the community will also be engaged to support a healthy child care environment.

Page 3

House Republican Newsletter

Commerce

(Contact Brittany Telk at 1-3452)

IUB Deregulates Landline Telephones Prompting Millenials to Google “Exactly What is a Landline?” Last month, the IUB issued an Order deregulating landline telephone service quality for Iowa customers in Docket No. INU-2016 -0001. The Board also ruled it will continue to perform certain regulatory duties relating to essential communications services. This Board action is based upon the widespread availability of effective competition to the vast majority of Iowans for these services. Deregulation includes nearly all customer service requirements, service quality standards, and provisions relating to discontinuation of service The Board began to evaluate the State’s back in January 4, 2017. In that Order, the Board noted, “It is the policy of the State of Iowa that communications services should be available throughout the state, from a variety of providers, at just and reasonable rates Iowa Code 476.95(1).” The Board also noted, “When sufficient providers enter a market, such that effective competition exists, the Board is required to deregulate that market Iowa Code 476.1D.”

So what does mean, exactly? For customEvaluation of records, Rule 22.2(1) ers, when there are issues with their landGeneral service requirements, Rule line telephone service, they have a choice 22.3 to change to another provider or file a complaint with the Board. If a complaint is filed, Customer relations, Rule 22.4 the Board’s staff will work with both parties to resolve the issues and discuss options Standards of quality of service, Rule for service. And for telephone companies, 22.6 this means they will have to compete for customers by offering quality service. It Protective measures, Rule 22.7 should be noted the landline telephone service certification requirements of Iowa Code Discontinuance of service, Rule 22.16 476.29 have been automatically repealed by a sunset provision and the Board exResale of service, Rule 22.17 pects even more competition; this legislation provides easier entrance for new proThe IUB’s ruling along with all documents in viders in the market. this proceeding, are available to the public The rates for local exchange services have in the Board’s electronic filing system, by been deregulated for several years, but not searching the docket number INU-20160001. service quality regulation. With this Order, the Board takes the next step and deregulates the service, subject to certain exceptions. This deregulation means certain Board rules relating to local exchange telephone service are no longer enforceable:

Economic Growth

Source: Iowa Utilities Board

(Contact Brittany Telk at 1-3452)

Apple’s Deal with Iowa Tax credits and other incentive programs have been hotly debated. The recently announced incentive package for Apple is not any different. On August 24 both the Waukee City Council and the IEDA Board held special board meetings to support Apple coming to the state and building a data center with a $1.3 billion price tag. Apple will purchase 2000 acres of land in Waukee for this data center, and the land will house two state of the art renewable energy data center facilities, in addition to other operational buildings. The city is planning on providing a property tax abatement of 71% over 20 years, esti-

mated value of $188,239,943. As for the IEDA, the Board approved an Investment Tax Credit for $19.65 million, which will be awarded as the amount of sales tax refund. For past data center projects, the IEDA has only done Sales Tax Refund (STR) instead of Investment Tax Credit (ITC). STR is a refund of all sales taxes on construction costs while the ITC is a tax credit calculated based on the total investment in the project and is credited from Iowa income taxes. In general, out-of-state companies that do not have a lot of Iowa income tax liability prefer the STR because they do not have sufficient Iowa tax liability to use the ITC. However, in this situation, Apple determined it

will have sufficient Iowa income tax liability. The IEDA agreed to do ITC but instead of using the typical ITC calculation, the amount was calculated based on STR, which was less, so the total award is comparable/proportional to other data center awards. The project will create 50 incented jobs, and the proposed completion date for both buildings is April 2021.

(Continued on next page)

Page 4

House Republican Newsletter

(Continued from page 3)

In response to the criticism of the incentive package, the IEDA issued a press release and an analysis of the project. This analysis was completed in conjunction with the Iowa Department of Revenue using the Regional Economic Models, Inc. Tax PI model, which is used to analyze the expected impact of the project. In the press release, Director Durham focused on both the hard numbers contained in the analysis and based on certain assumptions:







The direct fiscal impact net of the IEDA’s incentives added over the calendar years 2018-2030 is expected to be $11.80 million in individual income tax revenues, $9.60 million in sales and use tax revenues, but -$18.55 million in corporate income tax revenues; the net direct State fiscal impact is roughly $2.86 million.



The total fiscal impact net of the IEDA’s incentives added over calendar years 2018-2030 is estimated at $18.68 million in individual income tax revenues, $15.85 million in sales and use tax revenues, but -$18.42 million in corporate income tax revenues; the net total State fiscal impact is an estimated $16.12 million.

Total employment is expected to increase by 178 in 2018 and rise to 2,081 in 2020, then drop to 684 in 2022 -this is mainly due to the construction employment increase. The direct employment from the project at 50 employees takes over the employment gains, with the long-term total employ-  ment increase forecasted to exceed 80.

portantly: the invaluable asset of having an international brand like Apple choose Iowa; something she considers “immeasurable.” Further, with Apple joining the other huge technology companies (like Facebook, Microsoft), the State’s place in their type of economy is solidified, and all of Iowa’s assets -such as its infrastructure and commitment to its skilled workforce, make it a great place to do business. Critics have been quick to call this more corporate welfare or accuse the State of “cutting Apple a check,” as there are more pressing Iowa needs. But it would do these critics some good to remember there are no checks being written to Apple, as the awards come in the form of tax credits and exemptions. Apple could potentially receive more in business incentives than what has been outlined in the IEDA’s documents, yet we will not have these numbers until the company files requests to do so.

The estimated net present values of the direct State fiscal impact and the total State fiscal impact, both incorporating expected tax incentive claims, covering calendar years 2018-2030 are $0.91 million and $4.38 million, respec- Source: IEDA tively

Personal income is forecasted to increase by $10.60 million in 2018, increase to $138.89 million in 2020 (due to construction worker wages), then fall to $7.24 million in 2030. While also noting the intangibles, most im-

Page 5

House Republican Newsletter

Education

Contact Jason Chapman at 1-3015)

Iowa Teacher Salaries Improving Annually An article made the rounds last week through a few of Iowa’s larger news sources regarding the salaries of teachers vs. the salaries of employees of a newly planned Costco in the Davenport area. The headlines for these articles asked a simple question meant to drum up controversy: Do Costco cashiers make more than Iowa teachers? The answer is no, they don’t. Costco has two current locations in Iowa (West Des Moines and Iowa City) and is looking to open a third in Davenport. The chain has made a name for itself in providing good wages and benefits for its employees, something which normally garners

praise. Here are some of the numbers on wages for Costco clerks from the West Des Moines location. Beginning clerks earn $13 an hour. This translates annually to about $27,000. The top wage for clerks is $24.25 an hour, which calculates to about $50,400 per year. It usually takes around 10 years to reach this level. In addition to the salary, employees are eligible for a $2500 bonus after a certain number of hours worked, which can be as frequent as every 6 months, potentially earning them an additional $5000 per year. These are indeed good salaries for a retail position.

But how does it compare to Iowa’s teachers? Iowa’s beginning teacher salary is a statutory minimum of $33,500, according to Iowa Code 284.15. And as this is the minimum, many districts are actually above this for beginning teachers. Here are specific numbers for beginning teachers, average salaries, and the highest paid teacher (all full time teachers with teaching positions only) for the locations in which there are, or are proposed, Costco stores:

Minimum

Average

Maximum

Davenport

$35,000

$57,863

$87,210

Iowa City

$42,432

$67,843

$92,676

West Des Moines

$37,070

$63,827

$97,553

Statewide the average teacher salary is on the rise annually, making great gains recently when compared to the national aver-

age. Aside from closing the gap with the a significant achievement for a state ranked national average, as the chart shows, Iowa as one of the best for cost of living: has moved up to 22nd in the nation. This is

*Source: National Education Association (NEA) http://www.nea.org/home/44479.htm

When compared to compensation of Costco earn more, the average salary for teachers employees, beginning teachers in Iowa is higher, and the max salary isn’t even in

the same category. Claims to the contrary are hyperbole at best.

Page 6

House Republican Newsletter

Environmental Protection

(Contact Lew Olson at 1-3096)

DNR Announces Meetings on Water Quality Improvement Plan for Iowa River On Thursday, September 7, 2017, the Iowa Department of Natural Resources (DNR) published its electronic newsletter “EcoNewsWire” which contained an article alerting Iowans interested in the results of a DNR study to improve water quality in the Iowa River and its tributaries can attend one of three meetings across the basin. Citizens are encouraged to bring their questions and ideas to improve the river to the meeting for discussion. Multiple segments of the Iowa River and many of its tributaries are on the state’s list of impaired waters for high levels of indicator bacteria. The current study, or DNR water quality improvement plan, shows where the bacteria comes from and

how these problems can be addressed.  Sept. 20, Eldora Public Library, 1202 The plan explores the amounts and sources 10th St., Eldora of bacteria entering the river system and offers potential solutions to reduce those  Sept. 26, Marshalltown Public Library, levels and work toward fixing the problem. 105 W. Boone St., Marshalltown The document is designed as a guide for local resource agencies, partners, stake Oct. 4, Coralville Public Library, holders and residents to improve the river Schwab Auditorium, 1401 5th St., Corsystem. Staff from the DNR’s Watershed alville Improvement Program will be on hand to answer questions. Those not able to attend the public meeting can receive more information at http:// www.iowadnr.gov/Environment/ The meetings will be held from 6 to 7:30 WaterQuality/WatershedImprovement/ p.m. at the following dates and locations: WatershedResearchData/ WaterImprovementPlans/

Human Resources

(Contact Carrie Malone at 5-2063)

Iowa Medicaid Director Position Opens The Department of Human Services has been experiencing changes in leadership since the retirement of Chuck Palmer in June. Jerry Foxhoven was appointed by Governor Reynolds shortly after Chuck Palmer’s retirement as the director of DHS this summer. DHS announced in late August that Mikki Stier, the Iowa Medicaid director, would be promoted to the deputy director of the Department of Human Services. She will replace former Deputy Director Sally Titus who retired this summer. Before becoming Medicaid director in May 2015, Stier was an executive and spokeswoman for Broadlawns Medical Center. The

department announcement of her new promotion said she has a master’s degree in health administration from the University of Colorado and a bachelor’s degree in occupational therapy from Colorado State University.

That serves over 600,000 lives. Currently, state Medicaid officials are in negotiations with the three managed care companies to determine what rates they will receive as of July 1, 2017. It remains unclear when those negotiations will be complete.

Stier will continue in her role as the Director of Iowa Medicaid Enterprise until the position has been filled. It remains uncertain whether DHS will hire from within the state or seek someone with national experience in managed care.

“Iowa Medicaid is a $4 billion program”

Judiciary

(Contact Amanda Wille at 1-5230)

Cannabidiol Access May be Delayed Because of Attorney General’s Recommendation Iowans waiting for medical cannabidiol may have to wait a full year longer. Iowa Attorney General Tom Miller has cautioned the Iowa Department of Public Health (DPH) against moving forward with a key provision in Iowa’s new medical cannabidiol law. The Attorney General has advised DPH to not implement a section of the new law that requires the state to license two out-of-state dispensaries from a bordering state. While this recommendation is not legally binding, it appears DPH may not license the out-ofstate dispensaries and will wait until 2018 to license in-state growers and dispensaries. House File 524 allows Iowans with qualifying medical conditions to possess medical cannabidiol with a THC level of 3% or less.

Originally, the Department of Public Health was to approve two out-of-state dispensaries to distribute the cannabidiol in Iowa before the end of this year. Following the establishment of the out-of-state dispensaries, the department will use a competitive bid process to select up to two medical cannabidiol manufacturers who must begin providing medical cannabidiol to five instate dispensaries no later than December 1, 2018. Iowans with medical cannabidiol registration cards will then be able to acquire the drug from the in-state dispensaries. As the Legislature was working on the new medical Cannabidiol bill, many advocates were concerned it would take significant

time to get the program up and running in Iowa. In an effort to ensure patients received medical cannabidiol as soon as possible, section 17 was added to the bill to allow out-of-state medical cannabidiol dispensaries from a bordering state to sell and dispense cannabidiol to qualified Iowans. The Department of Public Health was to utilize a request for proposal and license the two dispensaries no later than December 1 of this year. Allowing these out-ofstate dispensaries would ensure Iowans have access to medical cannabidiol quickly and safely. (Continued on next page)

Page 7

House Republican Newsletter spond to medical cannabidiol. However, a medical cannabidiol with low THC may be less problematic than fully legalized recreaIn his recommendation, the Attorney Gentional marijuana which is legal in several eral expressed concern that the new law may bring additional federal scrutiny if med- states. ical cannabidiol was transported across The decision by the Attorney General state lines. While all forms of marijuana, including medical cannabidiol remain illegal “delays Iowans access on the federal level, many states have legalized some form of the drug with little to to medical Cannabidiol no federal interference. With the new administration in place, there is no way to by a full year.” know how the federal government will re-

(continued from page 7)

Labor

Not implementing this small but significant section of the new law will have a negative impact on patients waiting for medical cannabidiol. At this time, the legislature can only wait to see the final decision of DPH and potentially address the issue when session begins next year.

(Contact Mackenzie Nading at 1-3626)

What is Really Happening with Overtime Compensation for State Employees? Earlier this month, the Des Moines Register published an article reporting the state of Iowa has ended overtime for thousands of state workers. The article claims that “Iowa has revoked overtime eligibility for about 2,800 workers,” and “the state has altered how it calculates overtime,” among other potentially misleading statements. This article is referencing recent administrative rules that were filed by the Department of Administrative Services (DAS) and approved by the Administrative Rules Review Committee in June. These rules were a result of changes made this session to the collective bargaining process in the state.

ceeds 40 hours. But not only did the unions demand that every state employee be guaranteed time and a half for working more than 40 hours a week, they also

uating. The classifications that were removed from automatic overtime eligibility (around 167 of them) have always been FLSA exempt, and they include individuals who are employed as attorney’s, adminis“forced the employer trative law judges, tax specialists, IT specialties, and lottery sales representatives. to allow sick and However, what has not been as thoroughly vacations days to reported is that DAS has implemented a waiver process to allow heads of state count toward the hours agencies to apply for an administrative rules waiver. If the waiver is approved, employworked in a week.” ees that were exempt from being eligible for overtime are instead allowed to earn it So for example, an employee could take off again. To date, waivers for overtime have The Iowa Legislature passed, and Governor three days for vacation, then come work the been approved by the Director of the DeBranstad signed, House File 291 in Februlast two days of the week for more than 8 partment of Administrative Services for the ary of this year; a bill that reformed Iowa’s hours a day, forcing the state to pay that Department of Human Services, the Departcollective bargaining laws. Part of the employee overtime for only two days of changes made in House File 291 removed work. Considering the purpose of overtime ment of Corrections, the Iowa Veterans topics such as supplemental pay and over- compensation is to reward work that is nec- Home, and the Department of Homeland time compensation from the list of mandato- essary to the functioning of a workplace, Security and Emergency Managery topics subject to bargaining by both a and not to supplement extra pay on top of ment. Which means the statement that union and employer. DAS enters into a col- vacation days, many viewed this overtime overtime has been taken away from 2,800 lective bargaining agreements with the process as broken. state employees is, at face value, not true. American Federation of State, County, and Municipal Employees (AFSCME) and the The state of Iowa greatly values its public House File 291 allowed for employers to Iowa United Professionals (IUP), which employees, especially those working long represent the majority of state workers hired take control of overtime policies for their under DAS. In previous years, the collective employees. Although it removed overtime hours to ensure the safety of the state. bargaining agreements signed by both par- compensation from the mandatory topic of Proof of this can be seen in a quote, ironibargaining, it did not prohibit the topic from ties had specific overtime guidelines built cally, from the same Register article that discussion. Meaning that if an employer into them, which cost the state millions of attacked DAS for “cutting” overtime comsaw the current overtime agreement as dollars. necessary, they could agree to the compen- pensation. The article states, “Overtime sation rate. However, DAS, which is a state historically has been paid in areas where These past agreements forced the state to agency using tax payer dollars to provide staffing is required 24/7 to maintain public agree to overtime compensation that greatly salaries and benefits to its employees, saw safety. Examples include prison guards or exceeded the standards outlined in the Fedan opportunity to even the playing field residential treatment workers at the eral Labor and Standards Act (FLSA); fedamong employees and revise the way they eral regulation guidelines passed by constate’s two facilities that care for people with supplement overtime pay. gress to ensure employees across the severe intellectual disabilities. country are being treated fairly in the work A claim repeated in the Register’s article is place. The FLSA exempts many employ(Continued on next page) that the state was taking away overtime ment classifications from being eligible for eligibility from many classes of employment. overtime compensation because of the This statement is misleading as information egregious costs associated with providing overtime pay, at the rate of time and a half is need to evaluate what the article is insin(or more), for every hour of work that ex-

Page 8 (Continued from page 8) A Des Moines Register review of the state government’s top 10 overtime earners in the 2017 fiscal year shows most of those workers will remain eligible for overtime because of waivers. Each made $39,000 or more in overtime during the fiscal year that ended July 1. The employees included prison officers, residential treatment facility employees and nurses.”

House Republican Newsletter It was estimated that DAS will save the state upwards of $5 million dollars annually from implementing these new overtime rules. The rules filed by DAS include other provisions as well that address performance, insurance, and discipline. DAS has been working diligently to inform both their management and employees of these new changes, and how they could be impacted. Fact sheets for both can be found by follow-

ing these links: https://das.iowa.gov/sites/default/files/ hr/documents/July17_changes/ FAQs_employees_06-27-17.pdf https://das.iowa.gov/sites/default/files/hr/ documents/July17_changes/ FAQs_employees_06-27-17.pdf

Natural Resources

(Contact Carrie Malone at 5-2063)

Law Allows Pistol Cartridge For Use in Rifles to Hunt Deer House File 475 was passed during the 2017 legislative session. The law gives hunters a new option this fall while deer hunting during the youth season, disabled hunter season and both shotgun seasons. The law allows rifles to be used that are capable of shooting straight walled cartridges. The rifle may be used with this kind of am-

munition to hunt deer during youth deer hunting season and first and second shotgun deer hunting seasons. The person must have a valid deer hunting license and be qualified to hunt. This bill passed the house 96-0 and the Senate 49-0. The law requires individuals caught with a rifle capable of shooting am-

Public Safety

munition not on the approved list while hunting deer to have their hunting privileges suspended for two years and receive a $250 fine. To see a list of acceptable calibers, visit here. Iowa’s youth deer season begins this year on September 16th.

(Contact Amanda Wille at 1-5230)

September is National Preparedness Month Just because Iowa doesn’t have hurricanes, doesn’t mean we shouldn’t be prepared for disasters. September is National Prepared-  ness Month, sponsored by the Iowa Department of Homeland Security and Emergency Management and other state and national  organizations. Iowans should always be prepared for natural or manmade disasters. It’s not difficult, and it could even save your  life

along with extra batteries Extra clothing and bedding (including shoes) Personal hygiene items

important. You should know where your family can go in and outside of the community, if necessary. Finding a list of shelters and hospitals before an emergency will help save precious time. Ready Iowa can provide you with all the necessary information to set up a plan to keep your family safe.

Prescription medication, baby formula, Know the Danger diapers, pet supplies Weather in the Midwest can be unpredictable and Iowans know to be ready for fast Emergency Supply Kit  Plates, cups and other utensils changes. No matter where you live in the state, be prepared for flash floods, extreme No matter where you live, it’s a great idea to have an emergency supply kit that you and  heat, tornadoes and high winds, severe Copies of important documents your family can use in case of a disaster. thunderstorms and winter weather. Being According to Ready Iowa, your kit should prepared in advance will save you time, and  The complete list and an additional money. include the following: check list can be found at http:// www.beready.iowa.gov/be_prepared/ National Preparedness Month is the perfect  water and non-perishable food for each time to prepare your emergency supply kit, build_a_kit.htm person for 3-5 days make and review a plan with your family, and learn the dangers you could face. The Make a Plan  First aid kit Iowa Department of Homeland Security and Emergency Management reminds Iowans If there was an emergency, where would you and your family meet? Who would you “Disasters Don’t Plan Ahead. You Can”  Money (cash, not just credit cards or call? Making a plan ensures everyone checks) knows where to go and how to get in touch with each other and family members out Battery-operated flashlight and a radio, side the area. An evacuation plan is also

Page 9

House Republican Newsletter

State Government

(Contact: Mackenzie Nading 1-3626)

Rebuild Iowa Infrastructure Fund, or Regents Infrastructure Fund? On Thursday, September 7, the Board of Regents held their monthly board meeting in Iowa City. At this meeting the Board approved their five-year capital plan, which included their FY2019 capital request to the Iowa Legislature. Over the past several years, it has become a commonplace for the Regents to submit requests for funding of their construction projects from the Rebuild Iowa Infrastructure (RIIF) budget. Historically, the RIIF would fund one regent project at a time, and once that project was complete another university would be in line to request funding for a project of their choice. This was not a codified practice, but one formed out of logic and fairness. The RIIF is responsible for funding many important infrastructure related projects throughout the state, so it’s important to keep the healthy and viable for the long term. However, over the past few years the practice has changed from one Regents’ project at a time, to each university having one or more funded projects at a time coming from the RIIF.

“In FY 2018 alone, the RIIF provided $48,300,000 to Regents Universities just for building projects.”

The RIIF also provides an annual tuition replacement appropriation that is anywhere between $28 and $32 million, if not more. In FY 2018, the RIIF appropriated a total $181,161,610 throughout the entire state, and $76,572,923 went to the Regents.

There were around 40 separate allocations made from the RIIF in FY2018. Some of these included appropriations for water quality initiatives, rural YMCA’s, Iowa National Guard infrastructure, and major maintenance throughout the state. If the Regents are serious about this proposal, Looking at the Regents approved five-year which one can only assume considering the capital plan, FY 2018 was nothing comBoard approved it last week, the RIIF could pared to what they’re asking for in the futurn into a fund dedicated to Regents conture. In FY 2021, Iowa State is requesting struction projects, instead of providing infrafunding for 4 projects, the University of Iowa structure support to all corners of the state. and the University of Northern Iowa are requesting funding for 2 projects each, and the Iowa School for the Deaf is requesting funding for 1 project. The grand total of the 7 Regents projects In FY 2021 would be $164,649,000. The RIIF has not been growing at a steady rate in the past several years. The state’s gambling and casino revenue has been down so it is not safe to assume the RIIF will be as healthy in FY2021 as it was in FY2018. If the RIIF managed to have about $182 million in available funds for FY2021, after taking the Regents’ request into consideration, there would be only about $18 million left in the fund. Keep in mind, the FY2021 request does not include the tuition replacement allocation that is included every year, which the $18 million left in RIIF wouldn’t come close to covering.

Transportation

(Contact: Ashley Beall 1-3440)

Iowa DOT Renews Corridor Preservation in Council Bluffs The Iowa DOT announced on September 8th, 2017 that they will be renewing the corridor preservation for the Council Bluffs Interstate System Improvements Project that includes Interstate 80 from the Missouri River east-northeast to U.S. 6 (Kanesville Boulevard) in Council Bluffs, Pottawattamie County. This also includes I-29 between 25th Avenue on the north to just south of U.S. 275 and I-480 from the Missouri River bridge on the Iowa Side to the I-29 interchange.

DOT every three years from the date that the notice was put out.

tions must include all relevant information regarding any of the three areas listed above.

A depiction of the corridor preservation area on a map can be found at If for some reason the DOT is proceeding to www.iowadot.gov/ole/otherprojectinfo.html. acquire all or part of the property or property rights of the area and notifies the city or Per Iowa Code 306.19(5), each city and county within the 30 day period, the city or county within the designated preservation county shall not approve any of the three corridor shall provide written notification to applications listed above. The DOT can the Iowa DOT of: (1) an application for a apply for an extension of the 30-day period building permit for construction is valued at and after a public hearing on the matter, an $25,000 or more; (2) a submission of a sub- addition 60-day extension can be granted division plat; or (3) a proposed zoning by the city or county. The Iowa DOT shall The Iowa DOT implemented corridor preservation for the Council Bluffs Interstate change within the area. These notifications begin the process of acquiring property or must be provided to the DOT at least 20 property rights from affected persons within System Improvements Project in 2005, it was than renewed in 2008, 2011, and 2014. days before granting the proposed building 10 days of the Iowa DOT’s written notificapermit, approving the subdivision plat, or tion of intent to the city or county. The notice of this project will be valid for 3 changing the zoning. These written notificayears and is able to be refiled by the Iowa

Page 10

House Republican Newsletter

Veterans Affairs

(Contact Kristi Kielhorn at 2-5290)

Veterans — Quicker Response on Disability Claims The (federal) Department of Veterans Affairs recently announced some specifics regarding their continued efforts to improve response time on services for Veterans and their families. The “Decision Ready Claims” initiative is a disability claims submission option with any accredited Veterans Service Organizations (VSO) that aims to deliver faster claims decisions to Veterans and their families.

new process and are given the tools they need to participate successfully in the program.

The initiative is a collaborative effort between the VA and various service organizations to help Veterans receive faster decisions on their disability claims. The VA is working with participating organizations to make sure they have been trained in the

“resulting in a quicker turnaround by the VA.”

Veterans who submit their claim under the new initiative can expect to receive a decision within 30 days from the time VA receives the claim. The service organizations will ensure all supporting documentation is included with the claim submission—

Ways & Means

The Decision Ready Claims initiative was first implemented May 1 of this year in St. Paul and is now available at all VA regional offices (including those in Iowa). The initiative is currently limited to claims for increased compensation, but the goal is to expand to different types of claims in the future. More information can be found at www.va.gov.

(Contact Kristi Kielhorn at 2-5290)

On Shaky Ground — Sales Tax on Amazon Purchases It is no secret that state budgets are tight with budget cuts fresh in everyone’s mind. With so much consumer activity happening online—it is not surprising that states are trying to figure out how to modernize up their state sales tax base and capture the sales that previously happened in a physical retail location and are now increasingly happening in sales tax free environment on the internet.

from their third-party sellers. South Dakota took a different approach and passed a law that taxed online sales knowing they would be sued immediately (and they were). That case was just recently argued before the South Dakota Supreme Court with hopes that it would make its way to the United States Supreme Court. Cases in other states are also pending.

actually take a vote and pass legislation. That would settle the question once and likely for all. But more likely this will be settled by the Supreme Court. Right now, the precedent is Quill Corp. v. North Dakota. That case clearly stipulates that states cannot collect sales taxes from remote (online) sellers unless a retailer has a physical presence or “nexus” in that state. It is important to note that the case came down in 1992, In addition to all of the unsettled law in vari- when online retailers were not what they ous states, there are conflicting bills in Con- are today. Some states have passed laws to capture gress. The bipartisan Marketplace Fairness this revenue, some have taken cases to Act in the Senate would allow states to recourts over the issue of whether sales tax Amazon actually collects and remits sales can be charged if no physical location exists quire online retailers to collect state sales taxes in 45 states—including Iowa. But what is at issue (like in South Carolina) is (Amazon), and some are waiting around to taxes if they simplify tax administration. the fact that it does not collect and remit Essentially—states could require online see how this all shakes out. vendors to collect and remit sales tax if that when purchases are made that involve a “South Carolina third-party vendor (a vendor just using Amais what the state wanted. Contrast that to zon as a selling platform). the No Regulation without Representation recently sued Amazon Act in the House, which prohibits states For right now—Iowans will just have to wait. from imposing sales tax collection requireclaiming they owe ments on businesses with no physical presence.

$12.5 million in lost sales tax revenues.”

So how does this get fixed? Really, there are two paths. Congress could act. As in