June
2012
www.iowahouserepublicans.com
Inside this issue:
Appropriations
Appropriations
1
Agriculture
2
Commerce
4
Economic Growth
4
Education
5
Environmental Protection
6
Human Resources
7
Labor
8
Natural Resources
8
Public Safety
9
State Government
10
Veterans Affairs
11
Ways and Means
11
Governor Signs the Standings Bill with One Item On Friday, May 25, the Governor signed House File 2465, the Standing Appropriations bill for FY 2013 with only one item veto. The bill reduces appropriations that are required by Code, reduces AEA funding by $20 million, extends the sunset of the K-12 Early Intervention Block Grant program, makes policy changes and contains several corrective provisions. The Governor vetoed the following provision: Division X - City Franchise Fees - Beginning July 1, 2012, a city that is subject of a judgment or court-approved settlement, which includes a payment , to set a franchise fee not more than 7.%. The amount collected in excess of 5% shall be used to pay the restitution/settlement. A city may assess and collect a franchise fee in excess of 5% for a period not to exceed seven consecutive fiscal years. This division is repealed 7/1/2030. The House language requires a simple majority referendum vote of citizens to approve the franchise tax increase.
for the Homestead Tax Credit was increased by $20.8 million, which means it is funded at $173.5 million, the highest level since FY 2001. Federal Consent Decree Expenditures / Reporting – A mortgage servicing settlement fund and a Banking Division Mortgage service settlement fund are established. The DOJ is authorized to make expenditures of money in the mortgage services settlement fund that are consistent with the consent decree from the mortgage settlement. The Banking Division Mortgage Service Settlement Fund will appropriate money to the banking division to be used to support state financial regulations, including real-estate and real estate appraisals, mortgage lending and mortgage servicing oversights, state charted banks, and financial literacy efforts. This money shall remain available for expenditures until June 30, 2015.
The language transfers $6 million of the mortgage funds to the Rebuild Iowa Infrastructure Fund and $1,000,000 is appropriated from the mortgage servicing settleIn his veto message, the Governor stated ment fund for FY13, to be used in the that he struck the entire provision because banking division and mortgage servicing he wanted it to be part of a comprehensive and settlement fund. An initial report is and holistic approach to property tax redue to the GA 1/15/13. form. He used similar language in 2011 when he vetoed the increase in the IPERS Retirement Exclusion for LicensEarned Income Tax Credit. If the City of es Health Care Professionals – Extends Des Moines wants to raise the franchise the through July 2014, the ability of retired fee, either with a referendum or not, it will licensed health care professionals to be have to come back to the Legislature in exempt from the four-month bona fide 2013. retirement before returning to work as a license health care professional for a pubHere are some of the important provisions lic hospital without affecting their retirethat the Governor signed: ment benefits. This issue is trying to address the shortage of health care profesFully funds the Ag Land Tax Credit and sionals. increase the Homestead Tax Credit. Increases funding by $6.7 million for the Early intervention block grant: ChangAg Land Tax Credit to $39.1 million, which es the sunset date on the early intervenmeans the Ag Land Tax Credit, Elderly tion block grant from July 1, 2012, to July and Disabled Tax Credit and the Military 1, 2013 Service Tax Credit are all fully funded for (Continued on page 2) the first time since FY 2000. The funding
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House Republican Newsletter (Continued from page 1)
ficer, sheriff, deputy sheriff or fire fighter killed in the line of duty. The child must be under the age of 26 (or 30 if a veteran), and not be a convicted felon. Any other tuition assistance a qualified individual receives shall be applied first. Children of deceased veterans are covered under federal law.
Iowa Reading Research Center: The Ed Reform bill establishes an Iowa reading research center to be a clearinghouse for reading tools, strategies, models, assessments, professional development strategies, data reports, and intensive summer Employee Stock Ownership Plans -- The reading programs to enhance K-3 reading. This section appropriates $2 million for section adds language to tax code to specify that 50% of the net capital gain from the the reading center. sale of a business to a qualified Iowa ESOP For-profit private colleges – Increases the plan (providing the ESOP then owns at least 30% of outstanding employer securifunding for for-profit colleges by $500,000, for a total of $2.5 million, which is $1.5 mil- ties) is excluded from state income taxation. ESOPs involve the sale of a business to its lion less than FY 2012. employees so that they become employee Tuition for children of fallen police, owners. peace officers, and sheriffs: Requires For the past two sessions House Republiprivate colleges, community colleges and regents universities to provide scholarships cans have insisted on approving a budget that spent no more than the state takes in, for the child of a police officer, peace of-
is sustainable and funds Iowans’ priorities, and gives the taxpayers a seat at the table. And in the end, that is exactly what the Governor signed into law. Once the Taxpayer Trust Fund receives the first $60 million after the cash reserves are filled to 10 percent, any additional revenue above that amount will roll over into the FY 2013 ending balance. When session adjourned, the FY 2013 ending balance was projected to be $322 million. Due to revenue coming in above projections, the new estimated ending balance will exceed $400 million. House Republicans believe this is another overpayment by taxpayers and should be returned to the hardworking taxpayers of Iowa in the form of broad-based tax relief.
Actual Revenue for FY 2012 Well Above REC Estimate On Friday, Tuesday May 1, Legislative Ser- grew by 6.9 percent compared to last fiscal vices Agency released the revenue memo showing actual revenue growth through the first 10 months of FY 2012. There was “...ending balance will good news as actual revenue exceeded the REC estimate for the entire year and April exceed $400 million.” growth was a whopping 35 percent above April, 2011. Year-to-date revenue grew by $206 million, or 4.5 percent compared to FY 2011. This is almost double the REC estimate of 2.6 percent ($153 million for the entire year). When the law change regarding the Health Care Trust Fund is considered, revenue
year. Personal income tax receipts were the primary driver of the increase, increasing by $161.5 million, or 5.8 percent compared to FY 2011. This is significantly above the
Agriculture
REC estimate of 4.5 percent. While a much smaller component of general fund revenue, corporate income tax receipts were also well above the REC estimate. Corporate taxes increased by $105.5 million, or 38.7 percent above FY 2011. The REC estimate for corporate income tax receipts is 25.5 percent. Meanwhile, sales and use tax receipt increased by $87.7 million, or 4.6 percent. This is above the REC estimate of 3.2 percent.
(Contact Lew Olson at 1-3096.)
IDALS Secretary Northey Touts 2012 Legislative Session Wrap-Up On Tuesday, May 29, 2012, the Iowa Department of Agriculture and Land Stewardship issued a press release in which Iowa Secretary of Agriculture Bill Northey said that the 2012 Iowa legislative session was a success for the Iowa Department of Agriculture and Land Stewardship (IADLS) and thanked the bipartisan support for restoring some funding to the Department after significant cuts in recent years. IDALS received a $584,000 increase in the general fund appropriation and a $550,000 increase to administer soil conservation programs through the Environment First fund. The Department also received an additional $350,000 for conservation cost
share, which is matched by landowners to build conservation practices, $1.55 million for agriculture drainage well closure and $1 million for the Water Improvement Review Board (WIRB). Governor Branstad signed the appropriations bills (House File 2336 and House File 2465) last Friday evening. IDALS’s general fund appropriation has been cut from $21.2 million in fiscal year 2009 to $16.5 million in the current fiscal year, or a 22 percent reduction. As a result, IDALS reduced its staffing by a total of 70 employees over that time period and is at the lowest staffing levels in 25 years. The $17.5 million general fund appropriation for IDALS for fiscal 2013 will be used to
backfill some of the losses in the Department’s Weights and Measures and Animal Industry Bureaus. Funds would also be used to meet mandatory salary and health insurance costs facing the Department. The Department’s Environment First funding has been cut from $15.8 million in fiscal year 2009 to $12.4 million in fiscal year 2012, which is a 21.5 percent reduction. The $550,000 increase for soil conservation administration will help IDALS to address the twenty-one field offices are currently without a state secretary and fourteen technicians that have been lost in the last two (Continued on page 3)
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House Republican Newsletter This session the legislature also passed and the Governor signed SF 2311, which years. The additional funds for cost share, was a technical bill that will modernize and update language in Iowa code to allow the ag drainage well closure and WIRB will support program that provide assistance to Department to become more efficient and farmers and landowners to install conserva- eliminate unneeded requirements and outtion practices and do other work to prevent dated practices. The bill also included an soil erosion and improve water quality. (Continued from page 2)
additional objective of the department to encourage, promote, and advance biofuels.
USDA & Partners to Invest Nearly $32 Million in Mississippi River BasinWater Quality & Wetlands Projects On Tuesday, May 22, 2012, the United States Department of Agriculture (USDA) issued a press release in which Agriculture Secretary Tom Vilsack announced that USDA's Natural Resources Conservation Service (NRCS) and its partners will invest nearly $32 million this year in financial and technical assistance for five water quality and wetlands improvement projects in seven Mississippi River Basin states. When fully implemented, the projects will prevent sediment and nutrients from entering waterways, decrease flooding and improve bird
and fish habitat. NRCS estimates that this investment will restore 11,400 acres to wetland habitat. Iowa landowners interested in applying for funding should contact their local NRCS office (http://go.usa.gov/m2Y ). Signup dates may vary based on the individual project.
ments under MRBI with 47 landowners in the Mississippi River Basin, investing $17.8 million in long-term conservation easements and wetland restoration projects. Learn more about the WREP at http://go.usa.gov/ m24 and find out about other NRCS programs and initiatives at http://go.usa.gov/ m22 .
NRCS provides funding for these new projects through its Wetlands Reserve Enhancement Program (WREP), part of the agency's Wetlands Reserve Program. Since 2010, NRCS has formalized WREP agree-
USDA Advances Water Quality Conservation Across U.S. Agricultural Producers Located in Selected Watersheds Able to Participate On Tuesday, May 8, 2012, the United States Department of Agriculture (USDA) issued a press release in which Agriculture Secretary Tom Vilsack announced the launch of a new National Water Quality Initiative committed to improving one to seven impaired watersheds in every U.S. state and territory. The 157 selected watersheds were identified with assistance from state agencies, key partners, and USDA's Natural Resources Conservation Service (NRCS) State Technical Committees. NRCS will make available at least $33 million in financial assistance to farmers, ranchers and forest landowners this year to implement conservation practices to help provide cleaner water for their neighbors and communities. Three Iowa watersheds were selected:
Upper Chariton- Lower South Fork Chariton River (HUC-12 #102802010108); North Raccoon- Wall Lake Inlet (HUC12 # 71000060401); and
Lake Red Rock- Badger Creek (HUC-12 # 71000080402).
The financial incentives will use funds from the Environmental Quality Incentives Program, and NRCS will provide financial and technical assistance to producers for implementing conservation practices such as cover crops, nutrient management, filter strips and terraces. To deliver the initiative, NRCS worked in collaboration with local partners and state conservation and water quality agencies to identify watersheds where on-farm investments have the best chance to improve water quality. NRCS also will work with state and federal partners, such as the U.S. Environmental Protection Agency and the U.S. Geological Survey, to assess results over the long term. The initiative will build on ongoing efforts in the Mississippi River Basin, Great Lakes, Chesapeake Bay and other landscape conservation initiatives across the Nation. All eligible applications must be submitted by June 15, 2012 in order to be considered for this fiscal year's funding opportunity. However, NRCS accepts applications for financial assistance on a continuous basis throughout the year. Producers can view an online map or check with their local NRCS office to see if they are located in a selected watershed. This summer, NRCS will notify all applicants of the results of the
competitive selection process and begin developing contracts with applicants approved for funding. For more information about the National Water Quality Initiative, visit: http://www.nrcs.usda.gov/wps/
portal/nrcs/detailfull/national/programs/ financial/eqip/? &cid=STELPRDB1047761
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House Republican Newsletter
Commerce
(Contact Brad Trow at 1-3471.)
Nation Awaits Word for the Supreme Court, Feds Continue to Push States on Health Insurance Exchanges With less than a month to the end of the United States Supreme Court’s session, the country awaits the Court’s decision on the constitutionality of the federal health care reform law. In the meantime, states are still being faced with a growing crunch from federal officials to move forward
But this new date does not only apply to those states deciding to set up their own exchange – it applies to everyone, even those states that decided to let the federal government. They will still be required to give notice to the federal government at least by November 16, and possibly sooner.
access to its system so that states can check the reported income of a person. But there is no agreement yet between HHS and IRS on the sharing of data, let alone a contract for the construction of the IT system to make this happen.
States face their own issues with their IT systems. A survey by the Kaiser Family Deciding on what pathway to choose for the Foundation in January found only one state Exchange – state run, state/federal model, had a fully automated Medicaid eligibility or federally-run – may be the easy part. system that allowed for real-time processing Implementation of the law’s requirements of applications – Oklahoma. Most states are already proving to be extremely difficult, are like Iowa, trying to replace a mainframe even for the states that are working to fully eligibility system that was built around the comply with the law. Those involved in time that Apple unveiled the Apple II comThe health reform law sets out a deadline building exchanges are admitting that the IT puter. for states to meet in order to be certified to requirements of the system may be far operate a health insurance exchange. The more complicated than anyone envisioned. It is possible that states will get a reprieve from these issues, if the Supreme Court law requires HHS to approve or conditionalthrows out the individual mandate requirely approve a state’s exchange by January 1, Exchanges are required to work with a number of various computer systems to do ment in the health care reform law. If it 2013. The Department has now set out a stands, state agencies and contractors will new date for which a state must approve its their work of enrolling people into health care plans, while also determining eligibility be faced with a serious time crunch to comexchange plans – November 16. On that ply with the law’s requirements. for subsidization of premiums. This redate, a state must submit a completed Exquires working with a variety of computer change Blueprint that will show how the state’s entity will meet the legal and opera- systems which currently cannot communicate with each other. The IRS is to provide tional requirements of the exchange. In mid-May, the Department of Health and Human Services put out its latest update on what actions states need to take on the issue of health insurance exchanges. And this directive includes some new deadlines that states have to meet, no matter what they decide to do on exchanges.
Economic Growth
(Contact Louis Vander Streek 1-3626.)
Iowa’s Unemployment Drops Again, Now at 5.1% Iowa Workforce Development announced last week that Iowa’s unemployment rate had dropped to 5.1% for the month of April, down 0.1% from the previous month. Total nonfarm employment saw an increase of 5,800 jobs compared to March. The nearly 6,000 gain was only second behind Indiana (+17,100) for the most jobs gained from March to April. Iowa’s unemployment rate continues to be one of the lowest in the nation. Currently, the national average unemployment rate is 8.1%. The other states with better unemployment rates than Iowa are: Oklahoma (5.0%), New Hampshire (5.0%), Vermont (4.6%), South Dakota (4.3%), Nebraska (3.9%), and North Dakota (3.0%). Three states still have double digit unemployment rates: Nevada (11.7%), Rhode Island (11.2%), and California (10.9%).
Nonfarm employment saw a gain of 5,800 jobs from March to April as the numbers grew from 1,490,500 to 1,496,300. Four sectors posted four-digit gains in employment: ‘construction’ (+2,700), ‘professional and business services’ (+1,500), ‘government’ (+1,100), and ‘manufacturing’ (+1,000). Only three sectors of employment saw losses from the previous month: ‘trade, transportation and utilities’ (-1,100) ‘leisure and hospitality’ (-200), and ‘education and health services (-100).
“...one of the lowest in the nation.“
As has been the case recently, Lyon County continues to have the lowest unemployment rate in the state (2.5%), and is followed by Sioux County (3.2%), and then Shelby and Taylor Counties (both at 3.5%). All counties in Iowa have unemployment rates below the 8.1% national average. Only two counties saw an increase in their Despite posting rate decreases from March unemployment rates in March, and both to April, the three counties with the highest gains were quite small: Fremont County rate are: Hamilton (8.0%, but a decrease (6.0% to 6.1%) and Henry County (6.9% to of .5% from the previous month), Lee 7.0%). The counties that saw the most relief (7.4%, but a decrease of .8% from the preby means of percentage from March to April vious month), and Jasper (7.1%, but a dewere: Allamakee (8.7% to 6.6%), Howard crease of 1.4% from the previous month). (6.8% to 5.1%), and Clayton (7.2% to 5.6%).
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House Republican Newsletter
Education
(Contact Jason Chapman at 1-3015.)
Legislature Passes Education Reform existing districts with programs, and a A bill bringing some minor education reform three year sunset finally made it through the legislature the last day of session. The bill, nearly a year in the making, began as a conversation last Requires the DE to develop a model online learning program for school dissummer when the Governor convened an tricts Education Summit bringing together Iowa’s education community and education experts from around the country and culminat- Expansion and codification of Iowa Learning Online, and allowing noned with a conference committee report that publics to access online classes passed both the House and Senate on May th 8 with bipartisan support. The executive director of the Board of The bill was a much scaled down version of Education Examiners is to be appointthe Governor’s original vision that he subed by the Governor mitted to the legislature in January. After 5 Strengthens the teaching profession by subcommittees totaling nearly 12 hours, 3 requiring that students in practitioner days of committee consideration, and a preparation programs score above the public hearing, the House whittled the 130 25th percentile nationally on perforpage bill down considerably, making a final mance assessments and extends the concession in April by removing several student teaching experience from 12 to more contentious items to find a middle 14 weeks ground with the Senate. The final result is a modest proposal that lays the ground work for future discussion about education reform in this state and contains a hint of some possible groundbreaking movement for the future of education, specifically competency-based education.
Project Lead the Way career technical
Here is what remains in the final bill after the dust settled:
Establishes a continuous improvement
Competency-based education, credit can be offered for obtaining competencies
Codifies the Iowa Assessment as the test to be used for 4th, 8th, 10th, and 11th grade testing
Annual evaluations for teachers and
courses are eligible for supplementary weighting
Defines, establishes authorization, and sets up training programs for School Administration Managers (SAMs)
“Annual evaluations for teachers and administrators”
Makes kindergarten compulsory for enrolled students, however, parents can withdraw enrollment at any point The conversation will continue into the future through several studies and task forces established:
Competency-based education task force (report due January 15, 2013)
Educator evaluation task force (report due October 15, 2012)
Iowa Teaching Standards and Criteria Review Task Force (report due November 15, 2012)
Teacher performance, compensation, career development task force (report due October 15, 2012)
Instructional time task force (report due
October 15, 2012) plan at the Regents universities, requir Online learning interim study (report ing them to assess their programs due December 14, 2012) Establishes college readiness and awareness programs for potential first- The final bill passed the Senate 31-15 and the House 87-9. It was signed by the Govgeneration college students and unernor on May 25th. derrepresented populations
Rewards teachers for achieving national board certification
administrators, with every 2nd and 3rd Reinvigorate early literacy programs, year for teachers being peer reviews building on existing programs, and which cannot be the basis for intensive creating a path for progression through assistance, employment, or compensaearly grades. Establishes retention for tion decisions non-proficient students, who aren’t eligible for a good cause exemption, Online learning as exclusive means of that do not enroll in a summer reading instruction, but with cap of 900 stuprogram at the end of third grade. dents statewide, limiting it to the two
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House Republican Newsletter
Bipartisan Agreement on Education Funding Reached After several back and forth passes of the Education Appropriations bill, the House and Senate finally agreed on a spending package for the Department for the Blind, the College Student Aid Commission (including tuition grants), the Department of Education (including the State Library, Early Childhood Iowa, Community Colleges, Vocational Rehab, and Iowa Public Television), and the Board of Regents. The conference committee report met in between the original House and Senate proposals, landing on a nearly $47 million increase over FY12 numbers. The largest increases included the Regents universities, which saw a $23 million increase, and the Community Colleges, which saw a $23.5 million increase Here’s the breakdown of increases: $314K to National Guard Tuition Benefits $2 million to Iowa Tuition Grant
$148K to Vocational Education Administration
$312,000 increase to Iowa Public Television
$500,000 to the State Library through Enrich Iowa
$23 million increase to the Regents, broken down:
$500,000 increase to iJAG (Jobs for America’s Grads)
$18.5 million to General Aid $6.6 million to University of Iowa
“...$47 million increase over FY12 numbers. “
$5.2 million to Iowa State $6.3 million to UNI $3 million to UNI Math and Science Collaborative (STEM)
$23.5 million increase to Community Colleges, broken down:
$1.5 million to a new line item University of Iowa Flood Center
$13.5 million to General Aid
One line item received a decrease over FY12 numbers:
$3 million to Workforce Training $2 million to GAP Tuition Fund $5 million new line item for Skilled Workforce Shortage Grant
Environmental Protection
For-profit Tuition Grant received a $2 million decrease The final bill passed the Senate 28-19 and the House 92-5. The Governor signed the bill on May 25th. (Contact Lew Olson at 1-3096.)
DNR Offers Small Livestock Producers a Chance to Check and Improve Water Quality On Thursday, May 10, 2012, the Iowa Department of Natural Resources (DNR) released its weekly electronic newsletter “EcoNewsWire” which contained an article announcing that small livestock producers would have an opportunity to evaluate the water quality performance and impact of their livestock operations. The article noted that spring rains bring the proverbial flowers, but it they can also create runoff problems for unroofed livestock operations. Hence, beef and dairy farmers have an opportunity to evaluate and test how runoff from their cattle yards affects waters below
the yard. There are new resources, too, for farmers with small and mid-sized operations who want to improve runoff management and water quality. A coalition of commodity groups, educational and public agencies has joined to provide practical and affordable materials and water test kits for farmers. For many farmers with small and mid-sized operations, visually inspecting the cattle yard, and testing for ammonia in waters that run below the cattle yard can ease concerns about meeting state regulations on water quality. While there may be other potential problems, like high bacteria levels, ammo-
nia tests are fast and simple to do. A free video and fact sheet on how to test the waters are available on the Iowa Manure Management Action Group’s (IMMAG) and Iowa Department of Natural Resources’ websites at www.iowadnr.gov/afo/. The test kits can be checked out at about 20 Iowa State University Extension and Outreach offices. Find the location nearest you on the IMMAG website at www.agronext.iastate.edu/immag/ smallfeedlotsdairy.html, or call the local Extension office for more information.
DNR Extends Public Comment Periods for Two Administrative Rules Proposals The Iowa Department of Natural Resources air quality has been extended. (DNR) announced that the public comment period for proposed rules on violations of environmental rules and rules dealing with
The first set of proposed rules are DNR’s new Chapter17 (567 Iowa Administrative Code). This rule making retains DNR’s (Continued on page 7)
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House Republican Newsletter has not returned to compliance, DNR may issue a Notice of Violation (NOV). A NOV responsibility to protect public health and will most often be used when environmental the environment, but provides regulated harm or a threat to human health or safety entities and the public with expanded trans- has occurred or is imminent, the regulated parency, clarity, consistency and fairness in entity is a repeat offender, the corrective addressing potential violations of Iowa’s action is deemed an emergency, or any environmental statutes and rules. Many of time the violation is considered significant. the aspects of the proposed rules or similar Option to respond-- Upon receiving a writprocedures have been used by DNR for ten inquiry, letter, or notice from DNR as many years, and this rule making simply described, the regulated entity has the opformalizes this practice. DNR believes that tion to respond to the department even if a this revised approach will result in increased and improved cooperation with the response is not specifically requested. A regulated community, prompt and effective Letter of Non-Compliance (LNC) or Notice of Violation (NOV) will typically suggest a resolution of violations, and reduced and written response and corrective action from prevented occurrences of environmental the regulated entity within a specified time noncompliance. The following compliance period. and enforcement procedures are available and may be considered in those instances where it is necessary to undertake a compli- Department discretion-- At DNR’s sole ance or enforcement initiative in the follow- discretion, it may follow the compliance and enforcement procedures described in this ing escalating manner: chapter, commence with an LNC or NOV, Informal meeting-- DNR staff may attempt forego these options and commence with an administrative action (Chapter 10), or the to resolve a potential violation or obtain department may request referral to the Atadditional information with an informal torney General. meeting. (Continued from page 6)
Letter of Inquiry (LOI)-- If an informal meeting is not practical or is insufficient, DNR may issue a Letter of Inquiry (LOI). The purpose of the LOI is to allow the regulated entity the opportunity to provide information that would be helpful for a determination of whether a violation has occurred.
The DNR held a public hearing on April 23, 2012, and is extending the public comment period deadline to August 16, 2012. The DNR is extending the comment period to allow more time for stakeholders to provide comment. The DNR plans to hold additional public hearings. The dates and locations of the additional hearings will be announced at a later date. The DNR welcomes all public comments. Please provide any written comments to Christine Paulson at 515-2425154 no later than 4:30 p.m. on Thursday, August 16, 2012, by e-mail to
[email protected], by fax to 515242-5094, or by delivery to Iowa DNR Air Quality Bureau, 7900 Hickman Road, Windsor Heights, Iowa 50324.
Letter of Non-Compliance (LNC)-- If the information available to DNR indicates a violation has occurred, the department may issue a Letter of Non-Compliance (LNC). This letter is used to address violations of a less significant nature, such as a single incident of late reporting. A LNC will most often be used when no environmental harm or threat to human health or safety has occurred or is imminent, the regulated entity is To access the published notices and for not a repeat offender, the corrective action more information, click on the following is not deemed an emergency, or any time links: the violation is considered insignificant. Notice of Violation (NOV)-- When the other compliance and enforcement activities described previously are not appropriate for the violation, or when the regulated entity
1240 or page 12 of this specific pdf) Amended Notice of Intended Action extending the public comment period to August 16, 2012, published in the Bulletin on May 15, 2012 (https://www.legis.iowa.gov/ DOCS/ACO/IAC/LINC/05-162012.Bulletin.pdf page 1488 or page 26 of this pdf) DNR Public Input (http://www.iowadnr.gov/ InsideDNR/RegulatoryAir/ StakeholderInvolvement/PublicInput.aspx ) The second rule is in regards to air quality rule changes to reduce regulatory requirements by limiting emissions testing to federal test methods. The rule changes allow portable plants like concrete batch plants to have less lead time and use email to submit relocation notices, providing more flexibility for owners and operators. The DNR received a request to extend the comment period to allow more time for stakeholders to provide comments. In response to this request, the DNR is extending the deadline for public comment from May 18, 2012, to July 3, 2012. To review the proposed rule changes, go to the DNR’s air quality public input website (scroll down to Administrative Rules) [http://www.iowadnr.gov/InsideDNR/
RegulatoryAir/StakeholderInvolvement/ PublicInput.aspx]. Or go to the DNR’s air regulatory website at http:// www.iowadnr.gov/InsideDNR/ RegulatoryAir.aspx. Click on Stakeholder Involvement on the menu on the left side, and then click on the link for Public Input. The DNR held a public hearing on Friday, May 18 and is not scheduling any additional hearings at this time. Other than extending the comment period, the DNR is currently not proposing any changes to the rulemaking. The DNR must receive all written comments no later than 4:30 p.m. on Tuesday, July 3, 2012.
For questions or to provide comments, Notice of Intended Action published March 21, 2012, in the Iowa Administrative Bulletin please contact Christine Paulson. Her contact information is listed in the above article. (https://www.legis.iowa.gov/DOCS/ACO/ IAC/LINC/03-21-2012.Bulletin.pdf page
Human Resources
(Contact Brad Trow at 1-3471.)
Illinois Enacts Major Medicaid Reform, Again The state of Illinois once again is making an new set of controversial cost containment aimed at closing a $2.7 billion gap in Mediattempt to reign in the cost of its Medicaid provisions. The package, coupled with a $1 program, with the passage last week of a per pack increase in the cigarette tax, is (Continued on page 8)
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House Republican Newsletter
The impact of these cuts will likely be felt beyond the Land of Lincoln. With Illinois’ poor performance in Medicaid, surrounding states have seen Illinois residents come caid spending. Providers do not emerge unscathed from across the border to receive health care. this process, either. Nursing homes and As the state had delayed payments and The program changes in the latest bill repcertain hospitals would have their daily Illinois providers stopped providing care resent major changes to services for adults. rates cut by $240 million. Other provider under Medicaid, the migration for health Only emergency dental care for adults groups would receive payment reductions care has picked up. Will the latest change would be covered by Medicaid. The proas well. In return for this, the Illinois legisla- force more to cross the border? Only time gram would also only cover four prescripture would enact a law prohibiting the state will tell. tions per month for a Medicaid enrollee, from carrying Medicaid bills from one fiscal raise co-pays for services to their maximum year into another. This process of delayed levels, and eliminate a state-only prescrippayment was the preferred method of baltion subsidy program for senior citizens. ancing Illinois’ Medicaid budget for years. Beyond this, Illinois would implement addi(Continued from page 7)
tional eligibility screens to ensure ineligible citizens are not being covered by the program.
Labor
(Contact Louis Vander Streek 1-3626.)
Governor Signs High Quality Jobs Bill Both the House and the Senate passed HF 2473, the High Quality Jobs bill, with overwhelming bi-partisan support on May 9, the last day of session. The Governor signed the bill into law on May 25. The bill builds off of the current, and highly successful, High Quality Jobs Program that the Iowa Economic Development Authority oversees. The HQJ program currently consists of business incentives in the form of tax credits and tax rebates. IEDA makes awards to business that are locating or expanding in the state that also meet a number of criteria about the jobs the businesses create. These credits and rebates are capped at a maximum of $120 million per year. HF 2473 will now add a cash component to the existing program. Previously, cash-based incentives were awarded by IEDA out the Grow Iowa Values Fund Program, which was repealed last year. The bill allows for IEDA to provide aid to a Business Engaged in Disaster Recovery, which is a business located in an area declared as a disaster area by a federal official, that has sustained substantial physical damage, that has closed as the result of a natural disaster, and that has a plan for reopening that includes employing a sub-
stantial number of the employees the business employed before the natural disaster occurred. This is new authorization and sought by IEDA to be able to respond in disaster situations without new authorization provided by the legislature (as was needed for the recent floods).
Jackson – Jasper – Jefferson – Lee – Marshall – Monona – Montgomery – Page – Scott – Tama – Van Buren – Wapello – Webster – Winnebago – Worth – Wright
Another change brought by the bill includes the use of a laborshed wage. Previously, a regional or county wage was used for calcuThis bill allows for the providing of tax inlating wage thresholds. This is being centives or project completion assistance to changed to a laborshed wage, which is supbusinesses in economically distressed are- posed to be a more accurate representation as even if the business does not meet the of a geographic area. Also, regional and 120% wage component. The business, county wage calculations excluded agriculhowever, must still meet the 100% qualifyture, mining, and government sectors while ing wage threshold. This will make it more including retail. IEDA proposes to include likely for businesses in these economically agriculture and mining (leaving government distressed areas to locate or expand, where excluded) and excluding retail, as those they otherwise might not have. businesses are ineligible to receive financial assistance under HQJ. The bill defines an ‘economically distressed area’ as a county that is in the bottom 25 There was no appropriation made for the cash component in the same bill, however, Iowa counties as measured by either the $15 million was appropriated in HF 2337, average monthly unemployment level for the most recent 12 month period or the av- the Economic Development budget bill. Lastly the self-funding mechanism, which erage annualized unemployment level for was a proposal to allow IEDA to keep 2.5% the most recent 5 year period. IEDA data shows that this would currently include a list of the withholding dollars on incented jobs, was removed from the bill before it was of 30 counties. Allamakee – Appanoose – passed. Chickasaw – Clarke – Clayton – Clinton – Davis – Des Moines – Dickinson – Fayette – Floyd – Hamilton – Hancock – Henry –
Natural Resources
(Contact Dustin Blythe 1-3452.)
Governor Branstad Rescinds Lead Shot Ban by Executive Order Last summer, the Natural Resource Comrules implementation for one year giving the mission while setting up the inaugural dove Legislature time to address the issue. hunting season passed an administrative rule that outlawed the use of lead shot while hunting mourning doves. The Administrative Rules Review Committee then delayed the
The Iowa House passed HJR 2001 with bipartisan support overturning the NRC action. However, the Iowa Senate adjourned without ever bringing the issue up on the floor for a vote. (Continued on page 9)
Page 9 During a Statehouse signing ceremony the Governor said “We’re going to be very zealGovernor Branstad said he could have tak- ous in protecting the rights of the citizens of en action last year but wanted to let the this state to have the laws decided by the Legislature address the issue during the Legislature, not my administrative fiat.” The 2012 session. When the Senate failed to Governor went on to say that the NRC exact, Governor Branstad used a provision in ceeded its authority – as the Iowa House the Iowa Code that allows him to rescind an had rejected that idea when the dove bill adopted rule by executive order within 70 was originally debated. days of the rule becoming effective. (Continued from page 8)
The signed executive order now means hunters can use lead shot during Iowa’s 70 day dove-hunting season that begins September 1.
Public Safety
( Contact: Amanda Freel 1-5230)
Synthetic Drugs Becoming More Dangerous This week people all over the world were shocked by the grotesque crime that occurred in Miami, Florida. Police report that one man attacked another and began to bite his face. When police tried to intervene the man growled at them and continued the vicious attack. After several warnings, police were forced to shoot and kill the attacker. The victim is currently in a hospital with horrific injuries. Officers on the scene reported the exceedingly strange behavior of the attacker. Many officers were disturbed at the viciousness of the attack, some have called it the bloodiest and goriest crime scene they have ever seen. As the investigation, began many wondered what could cause a person to act in such a aggressive manner, although the investigation is ongoing, officers involved believe the attack may have been caused by the use of by a synthetic drug commonly referred to as “Bath Salts”.
seizure of Bath Salts as a recreational drug was reported in Germany, and by 2008 Bath Salts had made their way to America.
stop him.
After listening to experts, the Iowa Legislature banned the chemical formula for Bath This synthetic drug can be smoked, snorted Salts in 2011. Bath Salts, and several other synthetic drugs, are now classified as or injected and is widely available online, schedule I controlled substances. These and prior to 2011 it was available in many substances have high potential for abuse; stores in Iowa. Producers of Bath Salts ofand have no accepted medical use. If a ten disguise the drug as plant fertilizer and person is found in possession of any of may even put a disclaimer on the package these drugs they can be charged with a “not intended for human consumption”, serious misdemeanor for a first offense. A however these producers know how this serious misdemeanor is punishable by up to drug is really being used. The drug is sold a year in jail and a fine of at least $315 but under many names, including: “Ivory not more than $1,875. Possession with the Wave,” White Lightning,” “Blue Silk,” “Bloom,” and “Lunar Wave.” No matter how intent to distribute is an aggravated misdethe drug is labeled, the effects are unfortu- meanor and carries a maximum prison sentence of 2 years and a fine between $615 nately the same. and $6,250. Individuals who have used Bath Salts report Even though Bath Salts have been banned many symptoms, including: chest pains, in the state, it is important Iowans recognize agitation, increased heart rate, hallucinathe danger these drugs still pose in the tions, extreme paranoia, delusions and increased blood pressure. Additionally, some community and alert local Police departBath Salts are a relatively new and very ments if they suspect this drug is being sold dangerous synthetic drug. In the 1960’s, the doctors have compared the effects of bath anywhere. chemical compound was originally designed salts to that of LSD and cocaine. In the case of the attack in Miami, Police officers to help people with chronic fatigue, but the side effects and dependency made the drug reported that even after being shot the attacker continued and it took four shots to useless for this purpose. In 2007 the first
Two Fallen Peace Officers Honored During Peace Officers Week duty were honored last week at Peace Officers Memorial ceremony. Two officer’s names were added to the memorial. The Iowa Peace Officers Memorial Plaque currently lists the names of 166 officers. Below is information provided by the Department of Public safety on the officers and their Being a peace officers comes with risks and service to the State of Iowa. those who have lost their lives in the line of May 13-19th, 2012 was National Peace Officers Week. Iowans took time to honor the men and women who serve this great state. One of the many reasons Iowa has such a low crime rate is because of the dedicated officers who serve.
State Trooper Mark Toney: Iowa State Trooper Mark Toney was killed in an automobile accident on U.S. Highway 65/69, south of Indianola, at about 4:40 pm. Trooper Mark Toney was serving the citizens of Iowa when his patrol car left the roadway and overturned several times, (Continued on page 10)
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Sharron , and his parents
landing in a field. The vehicle burst into flames during the accident. Trooper Toney served the Iowa State Patrol for 24 years. He is survived by his two sons Darin and Adam Toney, fiancée Lisa Sickles, brother David Toney, sisters Debbie Wiseman and
Officer Roger Hildreth: Des Moines Police Officer Roger Hildreth suffered a fatal heart attack while running on a treadmill in the department's gym. He had just completed responses to a burglary in progress call and a call involving two
State Government Governor Vetoes Entire Government Efficiency Bill Senate File 2338 required DAS to analyze State employee work stations and office standards by September 30, 2012. The objective was to make recommendations for improving employee density, proper allocation of individual and group work space, and improving worker health and safety. This provision required DAS to submit a report to the Capitol Planning Commission and the Legislative Fiscal Committees by October The bill required government agencies to be 30, 2012. more efficient in several ways. It encourSenate File 2338 also amended the code aged all agencies to utilize duplex printing and required that DAS complete an invento- so that the state Auditor could no longer charge the following commodity groups for ry of information technology and report to the legislature on how upgrades or changes their audit: (they started being charged in 2010) could make the state’s IT more efficient. The bill also required state agencies to pro Iowa Sheep and Wool Promotion vide notices via email or their website inBoard (billed $5,400) stead of through taxpayer-funded mailings. Mailings would only be permissible if re Iowa Egg Council (billed $8,400) quired by federal law or legal action. Last week, Governor Branstad vetoed Senate File 2338 (Government Efficiency Bill) in its entirety. The bill passed through the House and Senate unanimously back in April. It was estimated by the Legislative Service Agency to save the state between $111,365 and $3,515,365. There had been several versions of the bill, but the final product was a bipartisan effort.
Senate File 2338 also called for the establishment of a Medication Therapy Program for state employees (other than the regents). It defined medication therapy management as a systematic process performed by a licensed pharmacist, designed to optimize therapeutic outcomes through improved medication use and reduced risk of adverse drug events. A pilot program was implemented in FY 2011 and DAS entered into a contract with a private vendor. The bill required DAS to enter into another contract via an RFP for MTM services for employees that meet the eligibility criteria. The contractor was required to provide annual reports to the General Assembly concerning cost savings, estimated cost avoidance, and return on investment. Any shortfall between the calculated cost avoidance and the program’s cost would have been refunded to the State by the contractor.
Turkey Marketing Council (billed $7,700)
Corn Promotion Fund (billed $10,700)
dogs loose in a neighborhood before collapsing. Officer Hildreth was a U.S. Navy veteran and served with the Des Moines Police Department for 18 years. He is survived by his two daughters, Rachel Hildreth and Hope Hildreth; his brother Richard, JaAnne and Susan, sister (Contact: Kristi Kielhorn, 2-5290.)
The government efficiency bill also changed how agencies would have stored their records with the Department of Cultural Affairs. It would have allowed the DCA to charge state agencies for the retention and storage of records—with the hope that state agencies would be more selective and efficient about which records they sent to storage. Senate File 2338 also included a proposal from the Governor’s Road Use Tax Fund Efficiencies Report. It would have allowed eligible, safe drivers and non-operator ID card holders who are 18 to 65 years of age to renew their driver’s license or nonoperator identification (ID) card online every other renewal. Finally, the government efficiency bill would have done several other small things such as eliminating the Iowa Jobs Board, Farmworks Matching Funds, Farm to School Council, Chapter 15C—World Trade Center, and Chapter 15D—Midwest Nuclear Compact.
The rationale for the governor’s veto focused mostly on the Medication Therapy Because of the veto—these groups will Management proposal. It suggested that have to continue to pay for these audits. the MTM program could cost more than it would save, and that employee benefits One of the bigger divisions of the governshould be bargained for and not codified in ment efficiency bill was the creation of a law. The governor’s veto letter also states Department of Homeland Security and that many of the efficiencies set forth in the Emergency Management separate from the bill (reduction in printing/paper, energy savDepartment of Public Defense. Currently, ings, and reducing work space) are already the Department of Public Defense is comoccurring at his request. The governor goes posed of the military division and the home- on to say that he wants to do a comprehenland security and emergency management sive review of all boards and commissions division. The bill would have transferred the and eliminate any that are unnecessary or homeland security and emergency manage- duplicative. ment division into their own agency— separate from the Department of Defense. (Continued on page 11)
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https://governor.iowa.gov/wp-content/ uploads/2012/05/sf.2338.veto_.pdf.
The entire veto letter can be found here:
Veterans Affairs
(Contact: Jill Jennings, 1-3440.)
Senate Committee Unanimously Rejects Proposed Air Guard Cuts Last week the United States Senate rejected the Air Force’s proposed cuts to the Air National Guard, and instead recommended fully funding the Guard’s equipment and personnel needs in 2013.
ary included a cut of 5,100 guardsmen, along with cutting or moving airframes used by the Guard, including the C-27J and C130 cargo aircraft.
The committee recommends adding money In February the Air Force released its budg- to the Army’s budget request to keep the M1 Abrams tank production line open. et request which has been fought by Air National Guard advocates and the country’s The defense bill also: governors to undo the service’s proposed cuts. Delays the plan to temporarily shut The bill passed last week includes providown the Joint Systems Manufacturing sions that would protect the Iowa Air NaCenter in Lima. The plant, also called tional Guard’s 132nd Fighter Wing in Des the Lima Tank Plant, would have Moines from the elimination of its F-16 airclosed under an Obama budget procraft and the loss of hundreds of airmen. posal. The legislation would approve $631.4 billion for defense spending in fiscal 2013, which begins Oct. 1st. It would also increase funding to the National Guard and in other areas, the committee recommended roughly 150 changes to the president’s request, including adding a national commission that would make recommendations on future force structure decisions within the Air Force. The Air Force’s budget proposal in Febru-
Requires for the Pentagon to make reductions to civilian personnel, the bill would require the defense secretary to reduce civilian staff by 5 percent over five years, saving more than $5 billion. States the Air Force can retire its C-5 transport aircraft.
ble under defense contracts at $237,000.
Recommends increasing funding by $210 million for the Israeli rocket defense system known as Iron Dome. Does not recommend a third missile defense site on the East Coast, but it would request that the Pentagon do an assessment. Does not include new detainee provisions, which remains the most divisive issue within the bill in both the Senate and the House. States funds to Pakistan would be restricted until the country opens up its supply lines to Afghanistan, which have been closed since November, when NATO forces killed 24 Pakistani soldiers in an airstrike. Pakistan continues to demand an apology for the incident.
The defense bill will now move to the Senate floor.
Capps executive pay that is reimbursa-
Ways and Means
( Contact: Dustin Blythe, 1-3452.)
Kansas Governor Signs Income Tax-Cut Bill –Oklahoma soon to follow? Kansas Gov. Sam Brownback signed into law a tax plan that will reduce the top individual state income-tax rate to 4.9% from 6.45% in 2013. The plan also eliminates income taxes on non-wage income for small businesses.
Critics of these plans are coming from the usual places, but also have divided Republican’s in some cases. Teachers unions, welfare groups and local Chambers of Commerce all have come out strongly against the Oklahoma plan, while in Kansas the tea -party faction and centrist Republicans were Nebraska passed cuts in income-tax rates the ones divided over the bill. The tea-party this year and Oklahoma Gov. Mary Fallin is advocates argued that lowering tax rates proposing to reduce the top income-tax rate can lure companies, ignite new business to 4.5% from the current 5.25%, then phase and draw new residents, while the centrists it out entirely by 0.25 percentage points a argued that the plan was reckless and year over 14 years. The Midwest is bracket- would require additional cuts in spending. ed by South Dakota and Texas that don’t In Oklahoma, revenues are up 8% and the have an individual income tax while other Midwest states such as Iowa and Minneso- fear is if the rates aren’t cut, that money will ta have top rates of 9% and 7.85% respec- be spent by government. In addition, the GOP holds the House, Senate and Govertively.
norship in Oklahoma so the pressure is on to deliver a meaningful tax cut. The House Republicans passed an across the board 20% income tax reduction in 201, but the bill was never taken up in the Senate.
