Iowa House Republican Caucus Newsletter 4-11-20131

7/28/2019 Iowa House Republican Caucus Newsletter 4-11-20131

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Inside this issue:

Appropriations 2

Agriculture 2

Commerce 4

Economic Growth 4

Education 4

EnvironmentalProtection

6

Human Resources 7

Judiciary 8

Natural Resources 8

State Government 9

Transportation 9

Veterans Affairs 9

Ways and Means 10

Thursday, April 11, 2013 www.iowahouserepublicans.com

Compromise on Education

Reform

In an effort to come to resolution on the

education reform plan which is currently

before a House and Senate Conference

Committee, House Republicans offered a

compromise. The plan saves taxpayer

money, allows schools to plan ahead for

the long term, and implements policychanges focused on achievement-driven

reforms.

House Education Committee Chairman,

Rep. Ron Jorgensen (R-Sioux City) of-

fered the compromise plan during the

conference committee. The details in-

clude:

Keep intact policy language and

appropriations for House File 215.

2 percent increase in allowable

growth for Fiscal Year 2014, plus aone-time payment equivalent to 2

percent allowable growth.

4 percent increase in allowable

growth for Fiscal Year 2015.

This compromise plan offers flexibility for

school districts, accountability for parents

and protection for taxpayers. House

Republicans are hopeful that the Senate

Democrats will take our compromise

under serious consideration and we can

resolve this issue as soon as possible.

The House previously passed $87.5 mil-

lion in Fiscal Year 2014 and $119.3 mil-

lion in Fiscal Year 2015. The Senate

originally passed $135 million in Fiscal

Year 2014 and $305 million in Fiscal

Year 2015. The House compromise plan

is $144.7 million in Fiscal Year 2014 and

$195 million in Fiscal Year 2015.

Moving a Responsible State

Budget

Two years ago, Iowa faced a $900 mil-

lion budget shortfall. Today, we have an

ending balance of $688 million and our

budget reserves are full. This is a funda-

mental change in legislative decision

making, driven by Iowans. This is a sig-

nificant departure from how governmentoperated in the past where every dollar

was spent, even some we didnt have.

House Republicans have instilled a fun-

damental culture change and we will not

retreat now. As we begin moving budget

bills through the House, we will remain

committed to the principles used to get

our fiscal house in order:

We will not spend more money than

the state takes in;

We will not use one-time money topay for on-going expenses;

We will not intentionally underfund

entitlement programs to balance the

states budget;

We will return unused tax dollars to

Iowas taxpayers.

The overall amount of revenue that is

available to be spent in Fiscal Year 2014

is $7.1822 billion. This amount includes

the $688.1 million in the ending balance

that is an overpayment by Iowa taxpay-

ers. The amount of ongoing revenuethat is available is $6.5377 billion. The

Fiscal Year 2014 proposal by House

Republicans spends $6.4139 billion.

This is a 3 percent increase over last

years spending level and it protects pri-

ority services in the areas of education,

health and human services and public

safety.

The House Republican budget spends

98 cents for every dollar of state reve-

nue.

House Republican Talking Points


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Page 2House Republican Newsletter

On Monday April 8, 2013, the Iowa Depart-

ment of Agriculture and Land Stewardship

issued a press release in which Iowa Sec-

retary of Agriculture Bill Northey an-

nounced that retail and wholesale distribu-

tors of fuels interested in installing new

equipment to handle the distribution of

higher blends of ethanol and biodiesel

should consider applying for assistance

through the Iowa Renewable Fuels Infra-

structure Program. Applications must be

received by April 30 to be considered at the

May 14 meeting of the Iowa Renewable

Fuels Infrastructure Board, which approves

all applications.

The program has cost-share funds availa-

ble to cover up to 70 percent of the cost of

IDALS Announces Cost Share Assistance Available Through Renewable FuelsInfrastructure Program

Agriculture (Contact Lew Olson at 1-3096.)

General Assembly Gives Final Okay to Two Ag Measures

On Monday, April 8, 2013 and on April 9,

2013, final legislative consideration wasgiven to two agricultural measures when

SF 316 passed the House by a unanimous

98-aye vote and when HF 312 was ap-

proved by the Senate on a unanimous 49-

aye vote respectively. SF 316 tweaks ex-

isting state farm tenancy law to require

termination notice of all cropped farmland

not operated under a cost-share agreement

regardless of farm parcel tract size be pro-

vided in writing by September 1st of a year

if the land will not be leased to the current

farm tenant for the next crop year and the

existing contract didnt specify a termina-tion date of the agreement. Existing law

exempted tracts of 40-acres of less. The

bill does however still exempt tracts of lessthan 40-acres of farmland leased for pri-

marily animal feeding operation purposes

from the general notification provisions.

The other agricultural bill that got a final

legislative consideration was House File

312 which the Senate passed on Tuesday

by a unanimous 49-aye vote. HF 312

amends the existing Code language requir-

ing DNR to establish certification standards

for manure applicators to expand the scope

of such education/continuing education to

additionally include topics that emphasizepractical and cost-effective methods to

prevent manure spills and limit the impact

of manure spills. The bill instructs DNR toprovide that the continuing instructional

course be made available via the DNRs

internet site, the internet site of an instruc-

tor teaching this course, and/or ISU exten-

sions internet site and be available to per-

sons required by DNR to take such instruc-

tion for certification of manure applicator.

HF 312s online manure applicator certifica-

tion provisions are contingent on the legis-

lature providing DNR with the estimated

$250,000 needed to develop and put this

educational material online.

Appropriations (Contact Brad Trow at 1-3471.)

Growth in Medicaid Threatens Education Funding, Rest of State Budget

As Iowans discuss the issue of Medicaidexpansion, a number of topics have arisen

in the conversations. But one critical issuehas yet to be addressed Medicaids long-term impact on the state budget and Iowasability to fund our education system.

From Fiscal Year 2000 to Fiscal Year 2012,state funding for K-12 education grew by atotal of $810 million. During the same peri-od, the states share of Medicaid costs grewby $674 million. That might seem like not areason for concern today while Iowa is ex-periencing strong state revenue growth.But in FY 2000, the state budget was$4.764 billion, the state spent $1.7 billion onK-12 school aid and just $445 million on

Medicaid. In FY 2012, the state budget was$6.012 billion, K-12 education received $2.5billion, and the states share of Medicaidhad grown to $1.12 billion.

The growth in Medicaid can be seen in theaverage annual growth. While schoolspending has averaged an annual growthrate of 3.58 percent between FY 2000 and

FY 2012, the states share of Medicaidcosts has grown by 8.08 percent annually.

Growth in the Medicaid program has re-cently been compounded by the shift in thefederal Medicaid match rate. Thatmeasures states against each other, andplaces a higher cost burden on states withstronger economies. Because of the statesstrong agricultural economy over the pastfew years, Iowas share of Medicaid ex-penses have grown significantly. BetweenFY 2010 and FY 2014, the amount of Medi-caid costs that has been shifted to the stateis nearly $200 million. By comparison, thatis more than what the state spends on IowaState Universitys General appropriation or

Community College funding in the Educa-tion budget.

Even before any consideration of MedicaidExpansion occurred, there was growingconcern that Medicaid has the potential toconsume all growth in state revenue in thevery near future. For FY 2015, the state isalready expecting another significant shift in

Medicaid costs to the state thanks to theMedicaid Match rate.

Then there is the impact of provisions in thePersonal Protection and Affordable CareAct (otherwise known as Obamacare) thatthe state is required to implement. Thou-sands of Iowans currently eligible for Medi-caid but not currently enrolled will join theprogram as the personal mandate goes intoeffect in 2014. And Congress raised prima-ry care reimbursement rates for Medicaid tothe Medicare level for 2 years. After that,primary care providers will expect states toreplace the short term federal money thatwas provided.

It is possible in the next five years that thestate will reach a point where all new reve-nue will be required to fund the growth injust one program Medicaid. That potentialshould make Iowans involved in education,public safety, economic development or anyother state program to think twice aboutcalling for Medicaid expansion.


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Page 3 House Republican Newsletter

converting old equipment, such as under-

ground tanks or retail pumps, to new equip-

ment designed to handle higher blends of

ethanol and biodiesel. Grants to retail dis-

tributors are limited to a maximum of

$50,000 per project and retailers must

commit to selling renewable fuels for at

least five years. Smaller grants of $30,000

are available for those only making a three

year commitment. Wholesale fuel distribu-

tors are also eligible for grants to offset the

cost of new bulk storage and distribution

equipment that can be used with higher

blends of renewable fuels. Up to $100,000

is available, but requires a 50 percent

match by company and a five-year commit-

ment to handling renewable fuels.

The Iowa Legislature provided $3 million to

the program for fiscal 2013 and nearly $1

million remains for this final application

period. Funds not awarded this year can

be carried into the next fiscal year. All

grant applications must be approved by the

Renewable Fuels Infrastructure

Board. The board contains eleven mem-

bers who are appointed by the Governor.

More information about the program, in-

cluding guidelines and application forms,

are available at www.IowaAgriculture.gov

by clicking on the Renewable Fuels Infra-

structure Program link under Hot Topics.

The Iowa Legislature gave responsibility for

the Renewable Fuels Infrastructure Pro-

gram to the Iowa Department of Agriculture

and Land Stewardship in 2011.

(Continued from page 2)

On Tuesday, April 2, 2013, the Iowa De-

partment of Agriculture and Land Steward-ship issued a press release in which IowaSecretary of Agriculture Bill Northey en-couraged Iowa farmers to consider partici-pating in the Smithsonians National Muse-um of American Historys Agricultural Inno-vation and Heritage Archive. The Smith-sonian announced the initiative last monthto preserve and document the nationalagricultural heritage and farm innova-tion. The full release from the Smithsonianon the project follows Northeysquote. More information can be found athttp://americanhistory.si.edu/agheritage.

The Smithsonian press release followshere:

National Museum of American History

Announces Initiative to Preserve

Agricultural Heritage and Document

Farm Innovation

The Smithsonians National Museum of

American History unveiled a new website

where the public can upload stories about

technologies and innovation that have

changed their work lives in agriculture

stories about precision farming, food-borne

illness tracking, environmental concerns,government practices, irrigation, biotech-

nology and hybrid seeds. This spring, the

museum is launching the Agricultural Inno-

vation and Heritage Archive, reaching out

to farmers, ranchers and American agri-

business to preserve Americas agricultural

heritage and build a collection that reflects

modern agricultural practices. Curators are

seeking stories, photographs and ephem-

era to record and preserve the innovations

and experiences of farming and ranching.

For details and to participate, the publicmay visit http://americanenterprise.si.edu.

As an example of the agriculture stories the

Smithsonian is seeking, the museum will

accept a donation of road signs related to

no-till production and organic farming from

Jim Rapp, a corn and soybean farmer from

Princeton, Ill. The story of agriculture is

important and complex, said John Gray,

director of the museum. In Jeffersons

time, 96 percent of Americans were farm-

ers; today, that number is less than 2 per-

cent. Despite this drop, productivity hasskyrocketed and agriculture has evolved

into a technology-driven profession with the

cab of a tractor akin to a traditional CEOs

office. This new collection of stories, pho-

tos and objects will play a role in the

American Enterprise exhibition, an 8,000-

square-foot multimedia experience that will

immerse visitors in the dramatic arc of the

nations story, focusing on the role of busi-

ness and innovation in the United States

from the mid-1700s to the present. The

exhibition is scheduled to open in May

2015.

The American Enterprise project budget is

$20 million, which includes the exhibition, a

virtual exhibition on the Web, a rich array of

programs and demonstrations as well as

an endowment for a Curator of American

Business. Recent gifts in support of the

American Enterprise exhibition include a

$2 million gift from Monsanto Company and

a $1 million gift from the United Soybean

Board. American agriculture has gone

through a tremendous transformation in thepast seven decades, becoming a high-tech

industry, deeply affecting not just farmers

themselves but every American and the

American experience in general, said Pe-

ter Liebhold, curator and chair, Division of

Work and Industry.

The exhibition will tell the story of the na-

tions business, centering on themes of

opportunity, innovation, competition and

common good with examples drawn from

five areas: agriculture, consumer finance,

information technology/communication,manufacturing and retail/service. Chrono-

logical in organization, American Enter-

prise will use objects, graphics and inter-

actives to examine how the United States

moved from a small dependent nation to

one of the worlds most vibrant and trend-

setting economies. Visitors will explore the

development of American agriculture

through objects such as Eli Whitneys cot-

ton gin, a 1920s Fordson tractor and an

Agacetus gene gun, which represent ma-

chines and innovation that increased

productivity and science that gave insightto the genetic structure of plants. Agricul-

ture has employed science and technology

to dramatically increase production and

choice while lowering prices, but these

changes have also altered the experience

of farmers and the public in unexpected

ways.

The initial objects donated to the Agricultur-

al Innovation and Heritage Archive project

IDALS Secretary Northey Encourages Farmers to Participate in SmithsonianNational Museum of American History Agricultural Archive Initiative
http://www.iowaagriculture.gov/http://americanhistory.si.edu/agheritagehttp://americanenterprise.si.edu/http://americanenterprise.si.edu/http://americanenterprise.si.edu/http://americanhistory.si.edu/agheritagehttp://www.iowaagriculture.gov/


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Education Contact Jason Chapman at 1-3015.)

House Proposes Education Reform CompromiseHouse Republicans offered a compromise

to Senate Democrats on Education Reform

this week that hopefully moves move the

conference committee to resolution. The

Senate responded to the offer that they

would consider, but thought the Houses

language on education reform might be too

much to accept. The proposed plan saves

taxpayers money, allows schools to plan

(Continued on page 5)

Commerce Contact Louis VanderStreek at 1-3626.)

Feds Announce Another Component of Obamacare to be Delayed

The federal government announced that

full implementation of the Small Business

Health Options Program, which is known

as SHOP, will be delayed until 2015. The

required provision, which is meant to allow

small-business employees to have a great-

er variety of insurance options, was sup-

posed to have taken effect in 2014. Thedelay will take place in the 33 states that

the federal government will be running in-

surance exchanges, including Iowa. The

Obama administration cited operational

changes as the reason for the delay in

implementing the provision.

The SHOP provision of the Affordable Care

Act is supposed to allow small businesses

(those with 50 employees or less) a mar-

ketplace via the exchange to offer insur-

ance plans to their employees. Most small

businesses only offer one insurance plan,

lacking the volume of larger businesses to

shop around in order to offer a variety of

insurance plans. The SHOP was supposed

to allow an employee of a small businessthe choice of insurance plans that could

then still be paid for by the employer. Theo-

retically, the small business would then

have written a single check to the SHOP,

which would have distributed the appropri-

ate funds to the various insurance compa-

nies covering the employees.

The Obama administration had previously

delayed implementation of another compo-

nent of the federal healthcare law when it

was announced that the Basic Health Pro-

gram implementation would be delayed

from 2014 until 2015. The BHP is an op-

tional coverage program that is meant to

help ensure that everyone has health care

insurance coverage. The BHP is intendedto bridge the gap between those eligible for

Medicaid and those who are able to pur-

chase their own coverage via the Ex-

change. The BHP would allow states to use

federal tax subsidy dollars to offer subsi-

dized coverage for those with incomes be-

tween 139%-200% of the federal poverty

level.

The Iowa Innovation Corporation releasedthe results of a study conducted by Econ-sult Solutions, Inc. highlighting the fiscalimpact of Iowas Demonstration Fund. TheDemonstration Fund is a state run programdesigned to provide direct financial assis-tance to businesses at the middle stages ofdevelopment. The businesses receive theassistance in the forms of grants, loans, orroyalty agreements in order to help proto-type and concept development activitiesthat have a clear potential to lead to com-mercially viable products or services.Awards are limited to $150,000 for a singleproject.

The report shows that the state is currentlyexperiencing an annual return on invest-ment in the amount of $2.1 million. Overthe five year lifespan of the program, the

state has awarded $13 million via 127awards to 114 different businesses, whichrepresents a return rate of 16%. The statewill likely see a year over year return onthese investments, and the amount that thestate is to benefit is likely to grow as well.

The study was conducted by a survey ofcompanies receiving Demonstration Fundawards. Of the businesses still in existence(nine have closed their doors since theyreceived an award), almost 80% of themresponded to the request for follow-up infor-mation. Of those who responded, it can be

seen that the direct result of the awardswas an increase in personnel of over 650employees and an $80.5 million increase inannual revenue as compared to pre-investment levels. The types of businessesreceiving the most awards operate in thefollowing areas: professional, scientific, andtechnical services, publishing industries,and computer and electronic product man-ufacturing.

Businesses eligible to receive assistancemust be an Iowa-based company operatingin the industries of advanced manufactur-ing, bioscience, or information technology.These businesses apply to the Iowa Eco-nomic Development Authority, who per-forms due diligence about the business withthe help of the Technology and Commer-cialization Committee.

represents a returnrate of 16%

Report Highlights Fiscal Impact of Demonstration Fund

Economic Growth Contact Louis VanderStreek at 1-3626.)

came from Tennessee Farm Bureau mem-

ber Pat Campbell of Cleburne Jersey Farm,

a multigenerational dairy farm founded in

the 1870s in Spring Hill, Tenn. Campbell

donated a selection of photographs, a com-

puter cow tag and reader unit to show the

change in dairying from a hand-labor inten-

sive process to a modern computer-run

operation, as well as his personal recollec-

tions about how changing technology has

altered his work life and has led to greater

efficiency and safety. The National Muse-

um of American History is currently reno-

vating its West exhibition wing, developing

galleries on business, democracy and cul-

ture. For more information visit http://

americanhistory.si.edu. The museum is

located at 14th Street and Constitution Av-

enue N.W., and is open daily from 10 a.m.

to 5:30 p.m. (closed Dec. 25). Admission is

free. For Smithsonian information, the pub-

lic may call (202) 633-1000.

http://americanhistory.si.edu/agheritagehttp://americanhistory.si.edu/agheritagehttp://americanhistory.si.edu/agheritagehttp://americanhistory.si.edu/agheritagehttp://americanhistory.si.edu/agheritagehttp://americanhistory.si.edu/agheritage


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ahead for the long term, and implements

policy changes focused on achievement-

driven reforms. The proposal calls for the

policy in House File 215, as passed by the

House, with 2% Supplemental State Aid inFY14 and 4% in FY15. With an additional

one-time equivalent payment of 2% in

FY14.

Original Proposals

The House passed HF 215 on February

20th and sent it to the Senate that day.

The Senate amended HF 215 on April 4th

and sent the bill back to the House. While

there are similarities between the two ver-

sions of the bill, the differences are signifi-

cant at the moment.

On the funding side of things, the House

included in HF 215 2% Supplemental State

Aid (SSA), a new allowable growth formula

which has the state pay for what would

previously have been a property tax in-

crease. The SSA and property tax amount

would be $77.3 million in FY14 and $51.3

million in FY15. The education reform ef-

forts in the House bill cost $10.2 million in

FY14 and $68 million in FY15.

The Senate included 4% allowable growth

in their bill for both FY14 and FY15, costing

$136.2 million and $114.6 million, respec-tively. For the education reform cost, they

are a bit misleading in the bill. They pro-

vide many things that need funding but put

in language stating contingent upon appro-

priation. This makes it a little hard to gage

the costs. But what they do have is

$75,000 in FY14 and $190.5 million in

FY15. The total costs are in the chart be-

low.


allows schools to plan

ahead

The New House Proposal

The new House proposal seeks to find

compromise with the Senate on the funding

side of things, while maintaining that the bill

as passed by the House accomplishes

education reform in a meaningful and

thoughtful way. HF 215 as passed by the

House had the support of nearly all educa-

tion associations and many businesses.

With the House language, the House would

then meet the Senate on their allowable

growth number, but with a slight change.

The offer proposes in FY14 2% plus a 2%

one-time equivalent payment and in FY15

4%. Heres how that would look:

House FY14 FY15 Senate FY14 FY15

Reform costs $10.2 million $68 million $75,000 * $190.5 million *

2% Suppl. State Aid $69 million $43 million 4% AG $136.2 million $114.6 million

Property Tax Relief $8.3 million $8.3 million - -

Total $87.5 million $119.3 million $136.2 million * $305.1 million *

* The senate numbers are minimums, given the contingent upon appropriation used 9 times in FY14 and 6 times in FY15

New House Proposal FY14 FY15 FY14 FY15

2% / 4% SSA $69 million $111 million 4% AG $136.2 million $114.6 million

2% one-time paymnt $57.1 million -

Property Tax Relief $8.3 million $17.1 million

Reform costs $10.2 million $68 million

Total $144.6 million $196.1 million

The House previously rejected the Sen-

ates version of education reform. The

Senate stripped out nearly all the accounta-

bility that existed in the House bill, removedall parental choice, homeschool, and pri-

vate school provisions, and added various

pieces of legislation that the House has not

supported over the last several years. Ad-

ditionally the costs are around $40 million

more than the House version and the com-

plexity of their system essentially makes it

impossible for the program to have any

lasting integrity.

House Republicans believe House File 215

provided a strong path towards educational

excellence. The center piece of the bill, the

Teacher Leadership Pathways program,

was designed to raise the stature of the

teaching profession and provide a moreattractive career option for graduates. The

bill infused $145 million into the career

pathways over a three year span to help

districts promote their best teachers to

leadership positions. It provided accounta-

bility with teachers and administrators un-

dergoing annual evaluations, with student

outcomes figured into the discussion. The

evaluations will focus on teacher develop-

ment, ensuring a stronger teaching force.

It also looked to include those outside of

the traditional public school classroom, by

providing opportunities for home school

parents to teach their children without bur-

densome regulations and impassive state

control and for private schools to focus onbettering their practices by raising their

standards even higher through accrediting

agencies that demand results and share

the schools mission. The bill funds its

commitments and now with a compromise

on Supplemental State Aid, the legislature

can be proud that it will provide schools

with ample funds to ensure the results Io-

wans expect in our schools and for our

children.


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Environmental Protection (Contact Lew Olson at 1-3096.)

Three Environmental Protection Bills Receive Final Legislative Consideration

On Tuesday, April 9, 2013, three legislativemeasures dealing with environmental pro-tection issues were passed in their finalforms by unanimous votes of Respectivechambers of second consideration. SF 388was considered and passed by the Iowa

House on a unanimous 99-aye vote. Thisbill proposes to amend existing Iowa law toallow the reconstruction of the Delhi damthat overtopped by unprecedented floodingto allow such a facility to use the floodeasement that applied to the dam beforedisaster as long as the former normal poolelevation in not exceeded by the recon-structed spillway elevation and the floodeasement or ownership are required to thetop of the spillway elevation. This legisla-tion was instigated because current IowaAdministrative regulations were crafted insuch a manner that foresee the manner inwhich a dam reconstruction might retain an

aspect of a dam that no longer was the de-termining factor of how high a flood poolmight go, and so the agency felt it could notgo ahead with the permit approval for thereconstruction. This legislation gives DNRthe legal authority to revise it administrativerules to account for the novel reconstructiondesign that is proposed for the blown-outdam in Northeast Iowa.

The second bill that got a final okay was

House File 311, which was approved by theSenate on a unanimous 49-aye vote. Thisbill is a Department of Natural Resources(DNR) departmental bill that proposes fourchanges to the Code of Iowa with the intentto reduce burdensome regulations by in-

creasing conformity to federal law; and im-prove permitting assistance to clients apply-ing for water withdrawal permits. The billproposes to reduce the number of newspa-pers from two to one, in which a public no-tices concerning an application for coverageunder three National Pollutant DischargeElimination Permit System (NPDES) stormwater general permits must be publish inbefore DNR can approve such permits.This should reduce the amount of time thata person wishing to do construction workmight have to wait as a growing number ofIowa communities are principally served bynewspapers that are published with increas-

ing length of time between editions. HF311 also proposes to amend 455B.186 toexplicitly clarify that the proper use ofaquatic pesticides is not prohibited in Iowaand amends another DNR Code provisionsconcerning permit for water diversion, stor-age and withdrawal (455B.265) to requireDNR to allow an applicant an extension oftime to submit more information to resolve acontested or complex application. The finalaspect of HF 311 amends Iowa law to re-

move a requirement that homeownersseeking access to the Onsite WastewaterAssistance Program, which provides finan-cial assistance to repair and upgrade resi-dential private wastewater treatment sys-tems such as home septic systems, must

reside outside the boundaries of a city.This change will allow homeowners in un-sewered municipalities to access this stateassistance.

The third bill getting final legislative okay onTuesday was Senate File 388 that was ap-proved by a unanimous 99-aye vote by theIowa House. This bill removes an existingexplicit prohibition against using Water Re-sources Restoration Sponsor program thatcurrently prohibits a proposed sponsor pro-ject from including any parking lot aspectsto allow for a parking lot projects if it is con-structed in a manner that improves water

quality and construction is consistent withfield office technical guide published by thefederal Natural Resources Conservationservice of the United States Department ofAgriculture, or the Iowa Stormwater Man-agement Manual published by the IowaDepartment of Natural Resources. Thislegislation is intended to open the door tosponsored project funding for emergentpractices and technology that can signifi-

(Continued on page 7)

Senate Releases Education Budget NumbersThe Senate this week acted on the Educa-

tion Budget. Its expected to be considered

in the Appropriations Committee early next

week, with possible Senate Floor action at

some point during the week. The Senatenumbers are down from their original tar-

get, but still $50 million above the Gover-

nors proposal and $69 million above the

House passed bill.

Here are the big numbers:

$861 million FY13 (Current Year)

$894.9 million House passed bill

($33.9 million increase over FY13)

$914.4 million Governor recommen-

dation ($53.3 million increase over

FY13)

$964.2 million Senate proposal($103.2 million increase over FY13)

The major differences between the House

and the Senate revolve around education

reform dollars, community college funding

as provided in Senate File 429, and funding

for the Regents for Tuition Set-Aside re-

placement funds. These pieces accountfor $60.3 million of the $69.2 million differ-

ence, nearly all of the differences between

the two chambers. These pieces are bro-

ken down below:

Education Reform

$5 million Teacher Shortage Loan

Forgiveness

$3.5 million Education Reform gen-

eral

$12 million Early Literacy efforts

$825,000 Competency-Based Edu-

cation

Community College Provisions in SF 429

$6 million Community College Gen-

eral Aid (Not in SF 429)

$3 million Work-based Learning In-

termediary Network

$7.5 million Workforce Training and

Economic Development Funds $5 million PACE and Regional Sec-

tors

$7.5 million Adult Literacy for the

Workforce

Tuition Set-Aside Replacement

$10 million

Total$60.3 million

The House will receive the bill back from

the Senate after they amend it on the Floorand the bill will likely head to a conference

committee later in the session.


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On Thursday, April 4, 2014, the Iowa De-

partment of Natural Resources (DNR) is

requesting public comment on the State of

Iowas state implementation plan (SIP) for

the national ambient air quality standards

(NAAQS) for nitrogen dioxide (NO2). The

state implementation plan has been written

to fulfill the requirements of Section 110 of

the federal Clean Air Act (CAA). Section

110(a) of the CAA requires each state to

adopt and submit a plan for the implemen-

tation, maintenance, and enforcement of

each NAAQS within 3 years of promulga-

tion to the Administrator of the U.S. Envi-

ronmental Protection Agency (EPA).

An electronic copy of the SIP may be

viewed at www.iowacleanair.com, click on

Stakeholder Involvement, and select Public

Input. Any person may make written com-

ments on this proposed SIP revision on or

before May 8, 2013. Written comments

should be directed to Wendy Walker, De-

partment of Natural Resources, Air Quality

Bureau, 7900 Hickman Road, Suite 1,

Windsor Heights, Iowa, 50324, fax 515-242

-5094, or by electronic mail to Wen-

[email protected]. A public hearing

will be held on May 8, 2013 at 1:00 p.m. in

the conference rooms at the Iowa DNRs

Air Quality Bureau office located at 7900

Hickman Road, Suite 1, Windsor Heights,

Iowa. All comments must be received no

later than May 8, 2013. Any person who

intends to attend the public hearing and

has special requirements such as those

related to hearing or mobility impairments

should contact Wendy Walker at 515-281-

6061 to advise of any specific needs.

A responsiveness summary will be pre-

pared by the Iowa DNR following the close

of the public comment period. The respon-

siveness summary will include any written

or oral comments received during the pub-

lic participation process and the Iowa

DNRs response to the comments. The

completed responsiveness summary will be

forwarded to EPA and made available to

the public upon request.

DNR Seeks Public Comment Period for the 2010 Nitrogen Dioxide StateImplementation Plan

Human Resources (Contact Carrie Kobrinetz at 5-2063.)

Governor Introduces the Healthy Iowa PlanLast Thursday, the Governor released his

alternative to Medicaid expansion, the

Healthy Iowa Plan, House Study Bill 232.

The bill requires approved members to

contribute some amount of money for the

plan, although the amount required chang-

es based on income. The plan creates my

health rewards accounts, which would be

used for payment of required contributions,

cost sharing, and health improvements by

members. Members are offered cost in-

centives for their plans if they completed

various things such as efforts to quit smok-

ing or nutrition counseling. Below are

some highlights of the bill:

The purpose of the Healthy Iowa Plan is to

establish and administer a plan to promote

increased access to health care, quality

health outcomes, and the use of personal

responsibility measures that encourage

people with incomes below 100% of the

federal poverty level to be cost-conscious

consumers of health care and to participate

in healthy behaviors. The plan will be ad-

ministered by DHS.

People ages 19-64 will be eligible for the

Healthy Iowa plan benefits if they meet the

following criteria: the person is a U.S. citi-

zen, the person is a resident of Iowa, the

person has a social security number, the

person has a household income at or be-

low 100% of the federal poverty level, and

the person fulfills all other conditions of

participation in the plan, including financial

participation. The following people are not

eligible for the Healthy Iowa Plan: a person

eligible for Medicaid, a person receiving

Medicare, and a person who is pregnant

and eligible for Medicaid

Following enrollment in the plan, a member

is eligible for benefits for a 12 month peri-

od. The bill requires DHS to review the

members eligibility on at least an annual

basis. Members of the plan get to choose

their primary care provider. In addition,

providers have to be within 30 minutes or

30 miles of the persons place of residence.

Benefits under the plan include: preventa-

tive care services, health home services,

physician services, inpatient and outpatient

hospital services, emergency transportation

services, prescription drugs, diagnostic

services, durable medical equipment and

medical supplies, rehabilitative services

(including therapy), home health services,

mental health and substance use disorder

services, and podiatry services.

There is a public hearing scheduled for

Tuesday, April 16th at 5:30PM to discuss

the Senates Medicaid expansion bill and

the Governors plan. The subcommittee

process on these issues began on

Wednesday and will continue into next

week.

cantly treat and conserve water quality fromwater that would run-off during precipitationevents from parking lots. Some of the tech-nologies that might be allowed by this

change could include permeable parkinglots where a significant portion of precipita-tion can flow through the pavement ratherthan running off; or constructing parking lotsin a manner where potential runoff is chan-neled into a receiving pond where sediment

can settle and some nutrient could be de-tained before moving downstream in a wa-tershed or where the parking lot run-off wa-ter can cool before it is discharged intostream.

http://www.iowacleanair.com/mailto:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]://www.iowacleanair.com/


8/10


House Passes Natural Resources Bills

This week, the House passed three Natural

Resources bills: SF 146, SF 389, and SF

272.

Senate File 146 relates to watercraft regis-

tration fees. Currently, boat registration

fees go into the state fish and game protec-

tion fund for the enforcement of navigation

laws and water safety and a portion of

those fees go to controlling aquatic inva-

sive species. The bill extends the provision

allowing a portion of the funds to go to pro-

grams to control aquatic invasive species

until 2023. The bill passed 99-0.

Senate File 389 passed 89-9. Currently,

people born after January 1, 1972 cannot

obtain a hunting license unless they com-

plete a hunter safety and ethics education

course. The bill creates an exception for

residents who are 18 or older. They may

obtain a certificate of completion without

completing an in-person demonstration.

This would allow people to complete the

course online.

Senate File 272 is a DNR bill. Currently,

an application for a certificate of title for a

snowmobile or ATV must either be signed

or sworn to by a notary or include the appli-

cants signed certification that statements

made in the application are true. The bill

strikes the language relating to notarization

of the application and requires only the

signed certification by the owner. The bill

also repeals the restore the outdoors pro-

gram whose purpose is to provide funding

for new and existing vertical infrastructure

projects in existing state parks and other

public facilities.

Judiciary (Contact Amanda Freel at (1-5230.)

Iowa Republicans Fight to Protect Private Property Rights

For the second time this session, the Iowa

House has passed legislation to strengthen

private property rights for Iowans. Tuesday,House Republicans amended Senate File

272 to include language that would protect

private property from being taken by emi-

nent domain for the creation of a recrea-

tional lake. This common sense approach

to property rights was approved with over-

whelming bipartisan support, the final vote

was 96-2.

This isnt the first time House Republicans

have stood strong on private property

rights. Earlier this year, Representative

Bobby Kaufmann, worked with Republicansand Democrats to develop House File 219.

Under current law, state entities can take

private property, with pay. Those who lose

their land can attempt to fight the taking in

Court, but State law allows a taking for

various reasons. House File 219 and the

amendment passed on Senate File 272,

provide additional protection for property

owners while still allowing necessary con-

demnations.

Under HF 219 and the amendment to SF

272, a government entity cannot condemnland to create a lake for recreational pur-

poses. It does not prevent condemnation

for drinking water, but does require the

entity condemning the land to prove thatthe amount of land needed for the lake is

needed for drinking water and not for recre-

ational purposes. If a person wants to sell

their land for the creation of a recreational

lake, that would be allowed. Additionally,

the proposal allows those who are losing

their land for the creation of a lake to chal-

lenge the amount of land needed and to

bring in a second engineer to evaluate wa-

ter needs for the area.

Both HF 219 and the Amendment on SF

272 have received overwhelming supportfrom both Republicans and Democrats in

the House, in fact, many Democrats spon-

sored HF 219 along with Republicans. Un-

fortunately, Senate Democrats have re-

fused to protect private property rights and

have failed to even hold a subcommittee

for the legislation. House Republicans unit-

ed with House Democrats are working to

ensure this important issue is not ignored in

the Senate.

Some opposed to the eminent domain lan-

guage have voiced concern that this willhurt communities during a drought and

prevent the creation of a lake for drinking

water. This legislation does nothing to im-

pact the creation of lakes for drinking wa-ter, it only ensures that the land taken is

what is needed for the creation of a lake to

provide drinking water and not expanded to

create large recreational areas if the land

owners do not willingly sell the land. None

of the language in either HF 219 or in the

Amendment to SF 272 prevents lakes from

being created.

Property owners in Iowa work hard to af-

ford their land, House Republicans believe

that land should not be taken, against the

land owners will, for the creation of recrea-

tional lakes. Protecting the rights of private

property owners is a bipartisan idea every-

one should be able to support. House Re-

publicans hope that by providing the Sen-

ate with an additional chance, they will step

up to protect the individual property owner.

Natural Resources (Contact Carrie Kobrinetz at 5-2063.)

cannot condemn land to

create a lake for recreational

purposes


9/10


Transportation (Contact Kristi Kielhorn at 2-5290.)

Federal VA Backlog Drawing Criticism

Veterans Affairs (Contact Colin Tadlock at 1-3440.)

This past week, several Washington law-makers have become highly critical of thefederal Department of Veterans Affairs han-dling of the VA claims backlog. Some have

asked the Department for an explanationand a plan to fix the problem, while othershave called for Secretary Eric Shinseki toresign as head of the Department.

With a backlog of nearly 1 million claims,the VA created the Veterans ManagementBenefits System (VMBS), an electronic sys-tem which the agency is phasing in at itsregional offices in an effort to reduce theamount of claims. Unfortunately the system

has itself been plagued with problems thathave instead lengthened delays

Lawmakers have been getting very impa-

tient with the VA system and have madetheir concerns vocal. Rep. Jeff Miller (FL),Chairman of the House Veterans AffairsCommittee, has called for the resignation ofAllison Hickey, the VAs head of benefits.Time Magazine recently published an edito-rial insisting that Secretary Shinseki resign.And on Tuesday, US House Speaker JohnBoehner sent a letter to Secretary Shinsekisaying that that he hasn't seen any evi-dence a new computer system has led to

any improvements or will eliminate thebacklog and that he would like to quicklysee a plan that provides specific bench-marks, deadlines and progress measure-

ments on how the VA is addressing theirproblems.

Waiting for disability benefits can be devas-tating for veterans and their families. Nearly20,000 veterans died last year waiting tohear about their claims, and the suicide rateamong veterans rose to an alarming 22 perday in 2010, according to a recent VA re-port.

State Government (Contact Kristi Kielhorn at 2-5290.)

IPERS to Invest in Estate Debt Funds

Last week IPERS announced it will commit

investments of $150 million to Blackstone

Real Estate Strategies II and another $50million to Principal Real Estate Debt Fund,

managed by Principal Real Estate Inves-

tors. Both are high-yield real estate debt

funds that IPERS believes will show a re-

turn. Similar to mezzanine financing, the

funds IPERS is investing in will provide

high-interest loans to fill the lending-to-

equity void left by institutional lenders,

which provide long-term, lower-interest

loans that are secured by a first lien.

These types of loans typically are made at

65 percent of value and are based on ap-

praisals that often run 25 percent lower

than those made prior to the downturn in

the economy in 2008. Gap financers typi-

cally have little opportunity to recoup their

investments if a project fails. As a result,

the funds charge significantly higher inter-

est rates that provide quick rewards. IP-ERS investment will aid commercial real

estate borrowers by investing in funds that

will fill the gap between conventional fi-

nancing and borrower equity and will hope-

fully make money for the retirees of IPERS

in the process.

Changes to Iowa Drivers Licenses and Fees Saves Road Use Tax Fund Millions

Senate File 224 passed the House this

week by a vote of 99-0. The bill does sev-eral things regarding the fees for and validi-

ty of Iowa drivers licenses and non-

operator identification cards.

The bill changes the fee for a non-

operators identification card from five dol-

lars to eight dollars and changes the period

of validity from five years to eight years. It

also removes a provision that gave non-

expiring, non-operator identification cards

to anyone age 70 or over but provides for

the issuance of a non-operators identifica-

tion card without fee to a person whosedrivers license if voluntarily surrendered

due to physical or mental inability to drive.

The bill extends the validity of drivers li-

censes from five years to eight years for

drivers between the ages of 17 years, 11months and 72 years (but not beyond a

persons 74th birthday). The fee for the

drivers license changes in accordance with

the current practice of the fee being tied to

the years of validity. This change is esti-

mated to yield a savings of $1.8 million per

year for the Road Use Tax Fund.

Senate File 224 also establishes a single

drivers license or non-operator identifica-

tion card replacement fee of $10. Currently,

the fee for a replacement of a drivers li-

cense or non-operators identification cardis $3 (for those lost or destroyed) or $1

(voluntary replacement). This change will

result in a savings of $2.3 million per year

to the Road Use Tax Fund.

Finally, the bill amends a code section thatallows honorably discharged veterans to

have their veteran status noted on their

drivers licenses. This is currently only an

option at renewal. The bill makes changes

to allow this status to be added to a drivers

license when a duplicate license is ob-

tained for the same fee as other duplicate

licenses provided in the bill. The same pro-

visions apply with regard to non-operator

identification cards.

The bill now heads back to the Senate for

further consideration.


10/10


Ways & Means (Contact Dustin Blythe at 1-3452.)

House File 336 A capital gains exemp-

tion for Iowa businesses passed on April 9,

2013 with a vote of 23-2. The bill creates anarrow exemption from Capital Gains taxes

for employee-owners of Iowa based com-

panies that have been operating for ten

years or more. This legislation is modeled

after the Nebraska legislation that was

passed three years ago. The bill impacts

small business owners, middle class, and

upper middle class Iowans who depend on

their stock investments that have been

purchased over the course of their career

to fund their retirement. The bill is narrowly

tailored to only allow stocks invested in

home-grown Iowa-based business to quali-fy.

House File 349 - The legislation deals

with the assessment of real estate used in

algae production and passed on April 9,2013 with a vote of 25-0. The bill adds

property that is used directly in the cultiva-

tion and production of algae to the defini-

tion of agricultural property. Used for ani-

mal feed, food, nutritionals or bio fuel pro-

duction and the real estate must be an en-

closed pond or land containing a photo

bioreactor.

HSB 180 - The bill deals with hydroelec-

tricity conversion property and passed on

April 9, 2013 with a vote of 25-0. Currently,

Code section 423.3, subsection 54, pro-vides a sales tax exemption for the sales

price of wind energy conversion property to

be used as an electric power source and

the sale of the materials used to manufac-

ture, install, or construct wind energy con-version property used or to be used as an

electric power source. The bill makes this

provision equally applicable to hydroelectric

conversion property.

Lake Red Rock has plans to build a power

plant that would provide power to up to

18,000 homes.

impacts small business

owners

Three Ways and Means bills move to the House Floor in Bipartisan Fashion

Documents

Iowa House Republican Caucus Newsletter 4-11-20131