Week 15 – Committee Reports

April 23, 2008

 

AGRICULTURE

COMMERCE

EDUCATION

GOVERNMENT OVERSIGHT

JUDICIARY

NATURAL RESOURCES & ENVIRONMENT

STATE GOVERNMENT

VETERANS AFFAIRS

WAYS & MEANS

 

 

STAFF CONTACT:    Sue Monahan

 

HF 2688 — Odor Mitigation

 

FLOOR ACTION & COMMITTEE ACTION:

 

HF 2688 requires Iowa State University to consult with the state Department of Natural Resources and the state Department of Agriculture and Land Stewardship to establish and administer a research effort to mitigate odor emitted from livestock operations involving swine, beef or dairy cattle, chickens or turkeys.

The purposes of the research effort are to accelerate the adoption of affordable and effective odor mitigation technologies and strategies by livestock producers, expand the number of affordable and effective odor mitigation technologies and strategies available to livestock producers, and provide research-grounded information regarding odor mitigation technologies and strategies that are ineffective or cost-prohibitive. 

The Senate adopted two amendments on the floor. One amendment establishes a cost-share program for livestock mitigation efforts. In addition, the amendment strikes contingent language for funds to be appropriated by the Legislature for the purpose of carrying out all provisions of the bill. A second amendment was adopted clarifying confidentially. The amendment protects the public’s right to know and the producer’s right to privacy.  [4/23 Floor: 29-17, Gaskill, Houser, McKibben, Putney excused] [4/22 Committee: Short form]

 

 

STAFF CONTACT:    Julie T. Simon

 

*SF 2306 – Long-term care insurance provisions

SF 2308 – Notification of breach of security   

 

FLOOR ACTION:

 

SF 2308 provides for the notification of a breach in the security of personal information. This applies to retailers who conduct business in Iowa as well as state agencies, and requires them to immediately notify Iowa residents regarding personal information that was or may have been acquired by an unauthorized individual.  Notice must be made immediately unless a law enforcement agency determines that the notification will impede a criminal investigation.  The House amended the proposal and added a criminal penalty provision for disclosure of personal information by public officials.  The Senate struck the criminal penalty section which was beyond the scope of the legislation. The House insisted and a Conference Committee was appointed

The Conference Committee report did not include the criminal penalties section, but did include a request for an interim study committee on disclosure of personal information by public officials, public entities and affiliated organizations.  On April 17, both the Senate and the House adopted the report. The bill then passed the House 95-0.  [4/17: 49-0]

 

* HF 2694 by Appropriations is the companion to SF 2306, which passed the Senate 43-0 on March 21, and was approved by the House Commerce Committee on March 27, but omitted from the Unfinished Business calendar.  The bill repeals existing provisions regulating long-term care insurance and creates new ones, provides for penalties and an appropriation.  These new provisions apply to policies delivered or issued for delivery in Iowa after June 30, 2008.

The bill includes new and additional definitions, and expanded disclosure and performance standards that set prohibited policy practices and permissible treatment of pre-existing conditions, prior hospitalizations, and institutionalizations.  The standards also allow applicants the right to return a policy and to receive a refund.

The bill contains requirements for prompt payment of claims when there are no circumstances preventing such payment.   It requires insurers to notify an insured making a claim under a long-term care insurance policy when the insurer denies the payment of benefits because the insured's benefit trigger has not been met.  The insurer must provide an internal review process to the insured to appeal the insurer's initial benefit trigger determination.  If the internal appeal decision upholds the denial of benefits, the insurer must notify the insured of any additional internal appeal rights and the insured’s right to request an independent review of the benefit trigger determination.

The bill appropriates $60,000 from the General Fund for one full-time position for the Senior Health Insurance Information program in the Insurance Division. The program will assist in the dissemination of objective, non-commercial educational material and raise public awareness of sensible consumer choices in considering the purchase of various insurance products designed for the health care needs of older Iowans.

The provisions referring to and enacting the independent review process of benefit trigger determinations take effect January 1, 2009.  [4/23: 48-0]

 

 

STAFF CONTACT:    Bridget Godes

 

HF 2197 – Textbook information provided at higher education institutions

 

FLOOR ACTION AND COMMITTEE ACTION: 

 

HF 2197 requires institutions of higher learning and community colleges to provide students with specific textbook information. Senator Quirmbach offered an amendment that changes “requiring” to “encouraging,” and lists legislative intent to have institutions provide textbook lists to students as soon as possible before the start of classes. [Floor--3/31: 49-0 (Courtney—excused)]  [4/22:  Conference Committee Report – 48-0 (Angelo, Houser—excused)]

 

 

STAFF CONTACT:    Bridget Godes

 

HF 2674 – GEMS Continued Appropriation

SSB 3293 – Student Debt

 

FLOOR ACTION

 

HF 2674 provides that the annual $35,000 appropriation to the office of grants enterprise management of the Department of Management for grant identification and writing assistance to state agencies is extended through the fiscal year beginning July 1, 2009.  Under current law, this annual appropriation ends June 30, 2008.  [4/23:  48-0 (Angelo, Houser—excused)]

 

COMMITTEE ACTION

 

SSB 3293 was amended with a strike-all amendment that makes it conform to the House version.  The House and Senate Oversight Committee worked together on this issue and have agreed to the same language.  SSB 3293/HF 2690 is a bill that provides better information to students and borrowers on financing their higher education.  The bill stresses the institution / lender relationships and appropriate code of conduct provisions.  The bill will shed sunshine on the financial aid that students are receiving and how they receive it, with the goal of providing better protection and guidance to Iowa students and their families.   The bill addresses these issues:

  • Open Meetings, Open Records by Secondary Market -- The bill requires the recipient of the 16 percent state bonding capacity for student loans to comply with open meetings and open records laws as part of the condition of receiving the allocation.
  • Annual Review by Superintendent of Banking -- The state superintendent of banking will perform an annual review of the student loan secondary market.  As part of that review, the student loan bond issuer’s total assets, loan volume, and reserves will be covered. 
  • Financial Information Code of Conduct -- Each financial aid office of a covered institution will adopt a code of conduct consistent with the federal laws. 
  • Prohibitions -- Lenders cannot offer or provide any gift in exchange for any advantage or consideration of its educational loan products.  An institution or institution employee can not solicit, accept, or receive any gift from or on behalf of a lending institution in exchange for any advantage or consideration provided to a lending institution for its educational loan products. 
  • Misleading Identification of Lending Institutions' Employees -- No employee, agent or representative or a lending institution can staff a covered institutions financial aid office.  A lending institution can not use any misleading or misguiding marketing practices in order to gain an advantage over potential or prospective borrowers. 
  • Loan Disclosure, Loan Bundling -- A covered institution must inform borrowers of all state and federal government financing options, including the information on terms and conditions of available loans that are more favorable to a borrower prior to providing any private or alternative educational loan options.  Private educational loans can not be bundled in financial aid packages unless a borrower is ineligible for federal or state assistance or refuses to file a free application for federal student aid (FAFSA). 
  • Standards for Preferred Lenders -- A covered institution has to provide and make available a preferred lender list that includes these standards: disclose the process for selecting lenders on the list, state that a borrower has the right and ability to select the education loan provider of their choice, show there was no favored placement of a lender, review and update annually, and a lending institution has to comply with disclosure requirements of a loan to be placed on the list.
  • Penalties -- If a covered institution or lending institution is found to have violated a provision of this law, they may be liable for a penalty up to $5,000 per violation.  If an employee is found to have violated a provision of this law, they may be liable for up to $2500 per violation.  The nature and severity of the violation will be taken into consideration, and there is an appeal process. 
  • Student Lending Education Fund -- Creates the fund in the state treasury for the deposit of all funds generated from penalties incurred for violating the provisions of the student debt law.  The attorney general will make the funds available to support programs that educate students about the options for financing an education, including student loans, and may reimburse students that received inflated loan prices.
  • Rules and Regulations -- The attorney general and any official or agency charged with enforcing this law will create rules and regulations necessary for enforcing the implementation of the chapter. 
  • Review -- The secondary market will be subject to an annual review by the Legislature, Superintendent of Banking, Auditor, and Governor.  [4/22:  Short Form]

 

 

STAFF CONTACT:    Cathy Engel

 

HF 2628 - “Stun Gun” as a Dangerous Weapon

 

FLOOR ACTION

 

HF 2628 adds “taser” type devices to the definition of a dangerous weapon for criminal code purposes.  In addition, the House amended the bill and the Senate concurred with the House amendment, which states that a bow and arrow is not a dangerous weapon when used for hunting or any other lawful purpose.  [4/21:  47-2, Behn and Black voting “no,” Houser absent].

 

 

STAFF CONTACT:    Jace Mikels

 

SF 517 – Energy related provisions of the state building code and energy bank updates

SF 2386 – Energy efficiency planning and reporting

HF 2177 – Placement of transportation tags on antlered deer 

 

FLOOR ACTION:

 

SF 517 returned to the Senate with a strike-after amendment by the House.  The House amendment provides for the statewide application of energy standards in the state building code, and clarifies that old buildings will not need to be retrofitted to meet the code.  It also requires the development of standards for sustainable design or “green buildings.”  Also, the bill updates the terms of the Department of Natural Resource’s Energy Bank program, which helps local governments, school districts, and non-profits that want to make energy-efficient upgrades to their facilities.  [4/21: 49-0]

 

SF 2386 establishes an Energy Efficiency Standards and Practices Commission within the Department of Public Safety, which has jurisdiction over the state building code.  The commission will review current energy efficient standards, develop recommendations for new energy efficiency standards applicable to new construction, and incentives to encourage the building of projects that exceed current state and local building codes.  The bill also requires the Iowa Utilities Board (IUB) to forward reports regarding energy efficiency efforts of gas and electric utilities to the General Assembly.

On second passage, the Senate adopted a House amendment that required municipal utilities and RECs to assess the maximum energy efficiency available, and that each utility shall establish an energy efficiency goal.  The reports will be reviewed by the Iowa Utilities Board.  The amendment also asks the Iowa Utility Association to assess the potential of meeting a 25 percent renewable energy standard by 2025 on a cost-effective basis, and modifies the membership of the energy efficiency standards and practices commission.  [4/21: 45-4 (Connolly, Hancock, Lundby, and Schoenjahn “no”)]

 

HF 2177 provides that one transportation tag shall be affixed to the antlers of an antlered deer, in addition to attaching another transportation tag to the deer in the manner proscribed by the Department of Natural Resources.  Hunters are required to tag any deer harvested, and the tag is required to be attached to the deer carcass.  [4/22: 47-3 (Black, Johnson, and Noble “no”)]

 

 

 

STAFF CONTACT:    Julie T. Simon

 

*SF 2373 – Public retirement omnibus

SF 2414 – Ban on use of campaign funds as compensation to a candidate 

SF 2427 – State agency lobbying activities

 

FLOOR ACTION

           

SF 2414 limits the use of campaign funds to campaign purposes, educational and other expenses associated with the duties of office or constituency services.  The use of campaign funds for personal expenses or personal benefit is prohibited. This proposal adds paying the candidate a salary, gratuity, or other form of compensation to the list of prohibited uses of campaign funds.

A willful violation of any provision of the campaign finance chapter is a serious misdemeanor punishable by confinement for up to one year and a fine of $315 to $1,875.  Civil remedies are also available for a violation of Chapter 68A or rules of the Iowa Ethics and Campaign Disclosure Board (ECDB), ranging from a reprimand to a civil penalty of up to $2,000.

Charlie Smithson, ECDB Director and Legal Counsel, noted that SF 2414 removes a source of confusion for both the regulated community and the Board. ECDB has had at least two candidates from 2006 use campaign funds to pay for a salary. Smithson has gone on record saying this is a policy issue the Legislature needs to review and decide either to permit or prohibit, so that the law is clear.

Currently any candidate or officeholder, regardless of income level, may use campaign funds to pay a salary to the candidate for campaigning.  It is difficult to determine when someone is truly "on the clock campaigning" and not using funds for personal benefit or for some other purpose prohibited under the campaign laws. Using campaign funds for salary also creates potential liability problems for candidates, such as payroll taxes and federal identification numbers. 

Smithson said it is clear by current prohibitions in the law that it is the intent of the General Assembly that campaign funds are not intended to be additional sources of money that supplement the living expenses of a candidate. 

The bill takes effect upon enactment.  [4/21: 47-2 (Hatch, Lundby)]   

 

* SF 2424 by Appropriations is similar to SF 2373 by State Government.  SF 2424 makes changes to the state’s public pension systems: the Peace Officers Retirement System (PORS); Iowa Public Employees’ Retirement System (IPERS); “411,” the statewide fire and police retirement system; and the Judicial Retirement System (JRS).       Changes to the various systems include:

PORS  

 

IPERS   

            more than one-half percentage point from previous year’s rate. For members in             regular service, the contribution ratio is 60/40. (While current law provides for   an actuarial determination of the rates for members in each of the special service     categories, the contribution rate for members in regular service is fixed.) 

 

“411” 

 

JRS 

 

Miscellaneous Provisions   

 

The Director of the Department of Administrative Services (DAS) will establish a tax-sheltered investment program (in accordance with section 403(b) of the Internal Revenue Code) to offer to eligible public employers in the state.  There will be a trust fund in the State Treasury under the control of DAS for deposit of moneys received.  

This division also rewrites language concerning annuity contracts for community college,  area education agency (AEA) and school district employees to permit the college, board or school district to establish a plan (in accordance with the Internal Revenue Code) to allow eligible employees to choose one or more investment contracts.

They may establish a plan (in accordance with section 403(b) of the Internal Revenue Code) allowing eligible employees to select one or more investment contracts (defined as a custodial account utilizing mutual funds or an annuity contract).  The investment contracts in the plan must be either 1) selected pursuant to a competitive bidding process conducted by the employer in coordination with employees, or 2) be in the DAS tax-sheltered investment program.   

The determination of whether to select investment contracts by competitive bid or by participation in the DAS program will be by agreement between the employer and employee organizations representing employees. Currently, that selection is at the discretion of the employee.  These provisions take effect January 1, 2009.

The DAS option may be better for smaller groups who may not have the resources or numbers to do the competitive bidding, and larger cities may prefer to set up their own plans, but will have the same competitive bidding procedures.   Employees will have portability without penalties if their current providers do not remain on the list of eligible companies.  

The bill establishes a transition period, effective upon enactment, that provides for the selection of investment contracts in a plan offered by a community college, AEA board, or school district, applicable to calendar year 2009.   During that time, the investment contracts in the plan will either be those included in a deferred compensation or similar plan offered by DAS, or no more than five companies authorized to issue investment contracts as selected by the applicable employer and no more than three companies as selected by the employee organizations.  The determination of whether to select investment contracts by determination of the applicable employer and employee organizations or by utilizing investment contracts selected by DAS  will be by  agreement between the employer and employee organizations representing employees by August 15, 2008.

The bill authorizes the applicable employer to take steps to establish a 403(b) plan meeting the requirements of this bill by January 1, 2009. DAS will establish its tax-sheltered investment program by January 1, 2010.   DAS will select vendors authorized to participate in the program.  The employee organizations and employers may assist DAS in the initial competitive bid process relative to vendor selection.  [4/17: 39-8-2 voting present (Appel, Putney), McKibben absent]

 

SF 2427, a Leadership bill (Gronstal/Wieck), prohibits an executive branch state agency from using or allowing its public funds for a paid advertisement or public service announcement 30 days prior to or during a legislative session to encourage the passage, defeat, approval, or modification of a bill that is being considered or was considered during the previous legislative session.  A person who knowingly and intentionally violates the new provision is guilty of a serious misdemeanor and may be reprimanded, suspended, dismissed or otherwise sanctioned. A serious misdemeanor is punishable by confinement of up to one year and a fine of $315 to $1,875.

The bill was a result of Republican protests about the recent “Everyone has the right to breathe smoke-free air” media campaign, sponsored by the Iowa Department of Public Health under the direction of Thomas Newton.   Republicans believed this was an inappropriate use of state funds, and threatened to block Newton’s Senate confirmation. A governor’s appointee must have at least 34 votes to be confirmed.  Minority Leader Wieck said some Republicans would vote for Newton if the Governor signs this bill into law. Wieck said Newton “is very knowledgeable in the field that he works in and that we're probably fortunate to have him here in the State of Iowa.”   [4/21: 46-3 (Behn, McKinley, Zaun)]  

 

COMMITTEE ACTION

           

SF 2427 – State agency lobbying activities. Leadership bill by Gronstal/Wieck. State Government met as a subcommittee of the whole to discuss the proposal before voting as a standing committee.  See Floor Action.  [4/21: short form]  

 

 

 

STAFF CONTACT:    Julie T. Simon

 

SF 2134 – County veterans affairs offices

 

FLOOR ACTION

 

SF 2134 is an Iowa Department of Veterans Affairs (IDVA) proposal.  Currently, county commissions of veteran affairs may employ an executive director and other necessary administrative or clerical assistants when needed.  This bill requires that county commissions employ a director, or administrator, and other necessary administrative or clerical employees.  It also:

The bill describes the duties of the executive director, administrator, and clerical assistant, including informing members of the armed forces, veterans, and their dependents of all federal, state, and local laws enacted for their benefit, and helping all Iowa residents who served in the armed forces and their relatives, beneficiaries, and dependents receive any compensation or other aid or benefit to which they may be entitled.

The bill allows two or more county boards of supervisors to share the services of an executive director or administrator.  Each commission will establish an office that must be open at least 20 hours each week.  The bill prohibits charging any individual for any service provided by the IDVA or county veterans’ affairs offices.

The House amendment enhanced training and certification requirements for executive directors and administrators so that they are fully educated and updated on benefits and programs available to the veterans.  In addition,  each executive director and administrator must be proficient in general computer, e-mail and Internet use to access information regarding facilities, benefits, and services available to veterans and their families. The bill passed the House 97-0.   Note: This vote is the result of a procedural MTR after April 16 concurrence and passage. [4/21: Concur 49-0]

 

 

 

STAFF CONTACT:    Kris Bell

 

SF 2421 – Charter City Sales Tax

HF 901 – Security Personnel Training

HF 2663 – Secure an Advanced Vision for Education

HF 2669 – Collection and Recycling of Mercury-Added Thermostats

HF 2673 – Tuition Plan Inheritance Tax

HF 2685 – Well Drilling Wastewater

HF 2687 – Brownfield and Grayfield Development

             

FLOOR ACTION:

 

SF 2421 authorizes special charter cities of 75,000 or more in population to impose a 1 percent local sales and services tax on the same basis as the state sales tax or in the case of the use of natural gas, natural gas service, electricity, or electricity service on the same basis as the state use tax. [4/21: 29-20 (Angelo, Appel, Behn, Boettger, Bolkcom, Dearden, Gaskill, Hahn, Hartsuch, Johnson, Kettering, McKibben, McKinley, Noble, Putney, Seymour, Ward, Wieck, Zaun, Zieman no; Houser excused)]

 

HF 901 allows employers to require security personnel at establishments that sell liquor to attend training.  It also sets up a pilot project requiring at least one certified designated security employee.  [4/23:  36-12 (Behn, Boettger, Hahn, Hartsuch, Johnson, Kettering, Kreiman, McKibben, McKinley, Seymour, Wieck, Zaun “no”; Angelo, Houser excused)]

 

HF 2663 repeals the Local Option Sales and Services Tax (LOST) for school infrastructure purposes and changes the state sales and use tax from 5 to 6 percent.  The increased revenues are deposited into a new Secure and Advanced Vision for Education Fund (SAVE) to be distributed to all school districts.  These state revenues are to replace existing revenues from the School Infrastructure Local Option taxes (SILO).  All existing local sales and services taxes are repealed.  A statewide amount per pupil will be calculated annually.  [4/22:  34-15 (Behn, Dearden, Hahn, Hartsuch, Horn, Johnson, Kettering, McKibben, McKinley, Noble, Putney, Ward, Wieck, Zaun, Zieman “no”; Angelo excused)]

 

HF 2669 prohibits the sale or installation of mercury-added thermostats after July 1, 2009, and establishes a collection program for used mercury-added thermostats.   [4/17:  49-0 (McKibben excused)]

 

HF 2673 exempts from the state inheritance tax the value of any interest in an Iowa educational savings plan that is established pursuant to Code chapter 12D and any other section 529 of the Internal Revenue Code plans.  The exemption applies to such plans in existence on or after July 1, 1998.  [4/22:  short form (Angelo, Houser excused)]  [4/22:  45-0 (Angelo, Houser, Lundby, McKibben, Putney excused)]

 

HF 2685 requires the federal Environmental Protection Commission (EPC) to adopt rules regulating the discharge of wastewater from water drilling sites.  During the well drilling process, there may be times when a large amount of water (the wastewater defined in the bill) is discharged from the well site.  This bill charges the EPC with adopting rules to ensure the wastewater is handled properly.  The bill sets the guidelines for the rules and allows the Department of Natural Resources to collect fees for any general permits to enforce the guidelines of the program.  [4/22: short form (Angelo, Houser excused)]  [4/22:  45-0 (Angelo, Houser, Lundby, McKibben, Putney excused)]

 

COMMITTEE ACTION: 

 

HF 2687, as amended, creates an income tax credit for development of specified distressed property labeled Brownfield and Grayfield sites. The bill provides for enhanced tax credit levels for qualified properties reaching specified levels of “green” development.  [4/22:  short form (Angelo, Houser excused)]