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Legislative E-Update 2.26.10

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in this update:

1.      Lawmakers Quiz Wellmark On Health Costs

2.      Broader Labor-Fee Measure Sought In Iowa House

3.      Senate Approves Tougher Version Of Texting Ban

4.      Other News: Legislative Briefs

5.      Bill Tracking

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Parts of these articles were excerpted from various news sources, including the Des Moines Register.

1.      Lawmakers Quiz Wellmark On Health Costs

Wellmark Blue Cross and Blue Shield leaders and state lawmakers agreed on one thing this week: Iowans whose health insurance rates are spiking this year are scared, angry and asking questions.

"I would be, too," Laura Jackson, a Wellmark vice president, told lawmakers at a joint meeting of the House and Senate Commerce Committees.

Legislators grilled the Des Moines health insurer and state insurance commissioner about why individual premium rates for 80,000 Iowans are rising an average of 18 percent this year, the largest annual increase in four years. Wellmark cited medical inflation, consumer use and growing chronic disease among Iowans.

Jackson said obesity costs the United States $150 billion each year and "60 percent of Iowans are obese or overweight."   That contributes to chronic diseases such as diabetes and heart disease. Iowa's population also is among the oldest in the nation.

State legislators said some Iowans who buy their own coverage have seen premium costs rising 50 percent and more.

"We have heard from hundreds of Iowans who are deeply concerned about the affordability of health care," said Rep. Janet Petersen, D-Des Moines. "We are here to find out what's driving these outrageous rate increases."

Wellmark said Iowans who buy their own health care insurance will see a base rate increase ranging from 17 to 22 percent. But some Iowans also will see a jump because of age.

"I'm talking with some constituents who have turned 60 and would be happy to have an 18 or 30 percent increase," said Sen. William Heckroth, D-Waverly. He said Iowans who have had Wellmark insurance for years now must pay 60 percent more for premiums or go without insurance. "They're stuck because many of them have had some kind of claim" that would be considered a pre-existing condition, he said.

Patrick Ryan, a senior Wellmark actuary, said older consumers use more health care services. But the company is beginning to adjust rates annually for age instead of hitting consumers with an increase that has accumulated in "five-year bands."

Iowans seeing an increase had average medical expenses in the past three years that went up between 11 and 28 percent, Wellmark reported. But the company did not collect enough in premiums to cover the costs. Ryan said Wellmark had to look at 2009 claims and project what it will need to cover 2010 medical costs.

State Insurance Commissioner Susan Voss said Wellmark lost $178 million in 2008. The U.S. stock market slide meant insurers had less investment income to offset losses. Voss said Iowa's health insurance rates are among the nation's lowest, but are rising rapidly. Insurance rates have increased 12 to 14 percent each of the past four years for all health insurers. She said none of Wellmark's rate increase will go to its new $250 million headquarters in Des Moines. Wellmark will sell long-term assets and borrow for the project.

Jackson said the company has enough reserves to pay medical claims for three months in the event of a pandemic event.

Petersen said Iowans have more questions, including why Wellmark hasn't used some of its $800 million reserves to help offset the rate increase.

"Consumers are still not getting adequate information about why their rates are increasing," said Petersen, who plans to introduce legislation requiring more financial transparency from insurers.

2.      Broader Labor-Fee Measure Sought In Iowa House

All public employee unions could charge nonmembers fees for services under an amendment introduced this week to broaden an already controversial labor bill. The bill being considered by the House is now limited to employees in the executive branch of state government.

If the amendment is adopted, the bill would extend to employees of Iowa's cities, counties and public school districts. But lawmakers said that if the amendment is adopted, the broader scope might kill the bill.

The sudden retirement of a pro-union Democratic representative could also spell doom for the proposal. Without Rep. Roger Wendt, who has advanced lung cancer, there might not be enough votes in the House to pass any controversial union-backed legislation.

Rep. Rick Olson, D-Des Moines, chairman of the House Labor Committee, called the bill's fate a "crapshoot."

"With Roger Wendt not coming back, the complexion of a lot of bills may change. It's very uncertain," Olson said. "Candidly, I think it's just sinking in that Roger won't be coming back this session."

Rep. Mary Mascher, D-Iowa City, introduced the amendment. Teachers union officials had insisted that teachers be included in the legislation.

Supporters say the bill, House File 2420, would let unions for public employees collect a "reasonable reimbursement" from nonunion workers for bargaining services. Nonunion workers are covered by the contracts for wages and benefits that unions negotiate. The bill would also allow unions to be partially compensated for handling grievances.

Opponents say the bill erodes the state's right-to-work law, which prohibits agreements that require the payment of union dues or fees as a condition of employment. In addition, opponents argue that it would allow unions to take legal action against people who have not joined.

House Republican leader Kraig Paulsen of Hiawatha expressed sharp criticism. "It sure doesn't make the bill better," he said of Mascher's amendment. "It makes it worse simply because it's about taking more money from more people."

The House held a public hearing last week on the bill. Dozens of people spoke for and against it. It could be debated by the full House within the next week.

House Majority Leader Kevin McCarthy, D-Des Moines, said it was uncertain whether the amendment - or even the bill itself - had enough support that he would bring it up for debate by the full House

"We haven't even talked about it yet," he said.

Basics of the “fair share” bill:

BARGAINING FEES: The proposed legislation would let a union representing executive branch employees in state government collect a "reasonable reimbursement" for bargaining services. Nonunion workers are covered by the contracts for wages and benefits that unions negotiate. The state would provide the union with a list of the names of all employees in the bargaining unit. The union would then identify each employee who is not a dues-paying member. The state would then deduct from those workers' paychecks a "reasonable reimbursement" for the bargaining services, up to 65 percent of regular membership dues.

GRIEVANCE FEES: Public employees who believe an employer has treated them unfairly or differently from other workers can file a grievance. Union staff must help nonunion workers with research, legal work and meetings with management, or in some cases an arbitrator. This bill would let unions representing executive branch workers collect a fee "for the actual cost of the grievance services" up to an amount equal to 10 percent of regular annual membership dues.

3.      Senate Approves Tougher Version Of Texting Ban

A new version of a texting ban in Iowa would make it illegal to both read or write text messages and e-mails while driving, but drivers could still talk on a phone. Even as the Iowa Senate approved a tougher version than the Iowa House, law enforcement officials said they expect the ban could be difficult to enforce. Iowans could still input a telephone number and make a call under the bill, so it will be hard for a police officer to tell whether the driver is doing that or texting, authorities said.

The House bill's texting ban exempted reading texts. Sen. Staci Appel, D-Ackworth, made an appeal on behalf of children and grandchildren to ban reading texts and e-mails, not just writing them.

"Please do not leave here telling Iowans that it is OK to read their text messages while driving," she said.

After "yes" votes on Appel's amendment slowly crept to the necessary 26 in a surprise turn of events, several senators switched their "no" votes to "yes." The amended bill now goes back to the Iowa House for more consideration.

One Republican senator unsuccessfully argued that lawmakers should pass a simple provision requiring drivers use "common sense at all times when operating a motor vehicle." Sen. Brad Zaun, R-Urbandale, read a list of bad things drivers shouldn't do.

"How about touching your wife or your husband or your significant other or your children?" Zaun said. "Giving them a hug?" He said there's no way to cover all driving distractions.

Meanwhile, Des Moines Police Assistant Chief James O'Donnell said a texting ban might be difficult to enforce. "I'm not sure how we would know if someone is making a phone call or receiving a text or texting," he said.

Drivers usually catch a police officer's attention when they swerve or cross the center line, O'Donnell said. Texting may lead to swerving, but it will be the driving that likely will catch an officer's attention. Linn County Attorney Harold Denton shared the sentiment. However, some Iowans won't text simply because it is illegal - and that will help, he said.

The Iowa Senate voted, 44-6, on House File 2456, a day after the Iowa House approved its narrower version, 65-31.

4.      Other News: Legislative Briefs

Illness forces Wendt to leave House

A popular Iowa lawmaker and major player in Iowa education policy has terminal lung cancer and will not return to his legislative duties at the Capitol. Rep. Roger Wendt, D-Sioux City, made the announcement in an e-mail distributed by House Democrats. Wendt, 76, a retired educator of 43 years, has pursued education issues with passion. Wendt, an Army veteran, is regarded as one of the kindest people in elected office in Iowa.

"I'm deeply proud of my record improving education for Iowa children and equalizing school funding for districts like Sioux City, which helps both property taxpayers and our schools," Wendt said in a statement.

The news came as a shock to people at the Statehouse, partly because Wendt had been plugging away at legislation all session. Wendt and his wife, Anita, who is his clerk in the House, have two children. Their son, Todd Wendt, is school superintendent in Le Mars.

Todd Wendt said his father had part of a lung removed in 1993, when he was diagnosed with lung and prostate cancer. But he had been considered cancer free since. His father hadn't been feeling well in recent days but had attributed his fatigue to the stress of the legislative session. At a doctor's appointment he learned the cancer had returned with a vengeance.

An emotional Speaker Pat Murphy, D-Dubuque, described Wendt as "a guy who has given his whole life to children and education in the state."

Murphy declined to comment about potential political implications of Wendt's absence, but it will pose more difficulties for House Democrats. They hold 56 of the 100 seats in the House, but their edge shrinks on some issues such as labor. Wendt tended to vote with Democratic leaders.

In a statement Monday, Gov. Chet Culver, a Democrat, offered compliments and prayers.

"For his life of service, I simply want to thank him, and to publicly recognize the tremendous impact he has had on the state we love," Culver said.

Republicans also offered praise and sympathy.

"While we may have disagreed on certain issues, I have always respected Rep. Wendt and his deep commitment to education in Iowa," said House Minority Leader Kraig Paulsen, R-Hiawatha. "He is a genuinely nice and honorable gentleman."

Just last week, Wendt shepherded a controversial sex-education bill. Iowa's young people already get instruction on human sexuality, but the bill would have broadened state standards on what specifically would be taught. The bill died. Within the first few days of the session this year, he helped hustle to passage an application for up to $175 million in federal money for K-12 schools to improve student achievement.

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Iowa lawmakers considering online gambling

Iowa would be the first state in the nation to allow in-state Internet gambling under a proposal being developed by a group of eight lawmakers, several elected leaders said this week. The idea would allow people to deposit between $50 and $500 into a special account at one of Iowa’s casinos. That account could then be used to play poker online. The restrictions, however, is that the person would have to play on a computer that is using an Iowa Internet address. Playing outside of the state would be prohibited. Additional revenue to the state would be roughly $11.5 million, according to preliminary projections.

Advocates of the idea call it “account deposit wagering” and refrain from saying it is Internet gambling, noting that people would first have to physically go to a casino to add money to their account.

“Approx 50,000 people in the state of Iowa participate in illegal, online gaming. The discussion we are having about account deposit wagers would put caps on it, regulate it through the racing and gaming commission,” said Rep. Doug Struyk (R-Council Bluffs) who is part of a legislative working group on the issue. “…We would take something that Iowans are currently being abused on by out-of-country, unregulated entities and allow the state to put constraints on it.

Struyk made the comments today during a forum on gambling at Drake University sponsored by IowaPolitics.com. Rep. Mary Mascher (D-Iowa City) expressed reservations about the idea.

“There are a lot of things in Iowa that are illegal but it doesn’t mean we should legalize it,” Mascher said.

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State ethanol mandate bill probably dead

A decision by the Senate Democratic leadership to not schedule for debate a bill to mandate ethanol use in Iowa in the Senate next week means the legislation is likely dead for this session. Action was needed in the Senate because next Friday is the so-called second funnel, which requires bills to be passed by one house and a committee of the other or be dropped from further consideration this session.

“It’s probably dead,” Sen. Jack Kibbie (D-Emmetsburg), Senate president and sponsor of the bill that would require ethanol to be blended into all gasoline sold for highway use in Iowa. “There was concern that people don’t like mandates, and of course the petroleum marketers didn’t like it. We couldn’t get the biodiesel bill through both houses last year so there was fear that the same would happen with an ethanol bill this year.”

The state presently has no mandate, despite being the nation’s largest ethanol producer. Ethanol supporters pointed to the fact that Iowa ranks only 32nd in the nation in ethanol use despite being the nation’s largest producer. While the federal government mandates certain levels of ethanol use, extending up to 12 billion gallons this year, Iowa has limited its government support of ethanol to retailers who sell above certain volumes of the biofuel.

“We’re giving the petroleum marketers about $8-$10 million worth of tax credits,” said Kibbie. “My bill would have eliminated those credits in return for the mandate.”

The Kibbie bill had cleared the Senate Agriculture Committee and was thus a candidate for debate this week, but Kibbie said a meeting of the Democratic leadership decided against putting it on the calendar.   The mandate bill had been opposed by a coalition that included fuel retailers and marketers and truckers.

5.      Bill Tracking

The following legislative action took place this week in the Iowa House and Senate. For full details of the legislation, please visit www.legis.state.ia.us.

Issue related legislation:

Senate Floor Action

Bills to the Governor:

HF 2282 HOMESTEAD LIENS

Specifies that liens do not attach to a homestead except in specific cases (certain debts including some created by a written contract, some home improvements, and some other debts related to survivorship). Deems a warranty of title by a former occupying homeowner as a claim against all judgments against the current homeowner (unless noted otherwise in the conveyance). Requires any lien against a homestead to be filed in 30 days in writing. Allows a court order to release a claimed lien by positing a bond of 125% of the claimed amount (making any judgment against the bond).   Replaces that the bond be released if no execution on the bond is ordered within 30 days. Judgment liens on homesteads

        The Senate PASSED the bill, 50-0; it goes to the Governor

HF 2376 SEVERANCE & ANNEXATION

Allows a land owner to request that land be severed from one city if the land could be annexed by another city without creating an island. Requires the approval of both cities and approval by the city development board. Includes procedures to make the severance complete when the Board files various documents with both cities, the Secretary of State, and DOT.

        S-5089 by Hamerlinck - Adds additional language to limit the bill to Hudson and Cedar Falls. FAILED, 30-16

        The Senate PASSED the bill, 35-11; the bill goes to the Governor

Bills to the House:

SF 2316 FLOOD PLAIN MANAGEMENT

Makes aid for future flooding disasters contingent on a finding from the DNR that a local government has complied with the minimum standards for building in a flood plain. Prohibits building critical public safety buildings in a 500-year flood plain unless there is no other feasible option, and includes standards for such buildings. Ordinance:   Requires the DNR, in consultation with other agencies to develop a model 500-year flood plain ordinance. Requires DNR to adopt rules on best storm water management practices by December 2010. Studies: Requires DALS and hydrologists from the Iowa Flood Center and ISU to study hydrological tiling. Requires the Water Resources Council to submit recommendations for watershed governance by November, 2010. Requires the WRC marketing campaign on watershed to include information of flooding and mitigating flood damage. Requires DALS to work with the WRC on programs to integrate wetlands into watersheds and to prioritize such efforts. Watershed Demonstration: Requires DNR, DALS, the Iowa Flood Center, and the WRC to seek funding for a watershed demonstration plan. Other: Requires the WRC to support the formation of an association of flood plain managers. Requires the ISU extension service and the WRC to work on educating the public on floods and flood plains. Climate: Requires the DNR and DALS to work with the WRC and the NRC on conservation practices for a changing climate. Real Estate; Requires disclosure if a flood plain is on alluvial soil. NPDES: Requires that new permits as of September 2012 to include requirements for soil compaction mitigation and on topsoil replacement. Levees: Requires the DNR, with DALS, the WRC and USDA, to assess criteria for water and soil conservation practices in light of changing rain patterns.   to encourage policies that favor other techniques over building levees in rural areas. Requires the WRC to develop an assessment and priority process for changing or removing existing levees.

        S-5122 by Hogg - Strikes the sanctions for cities that fail to meet the requirements in the bill. Strikes most of the 500-year flood plain language except for requiring that critical public safety buildings in a 500-year flood plain be built to higher standards. Makes technical changes.

       S 5157 to S-5122 by Hogg - Strikes compaction language. Adds additional language on what cities can consider in dealing with stormwater management. Strikes provisions on the DNR assessing soil and conservation practices.

        S-5137 to S-5122 by Hogg - Strikes provisions on protecting records against floods. Makes changes to exclude certain land or buildings that are outside of a 500-year flood plain from rules on 500-year flood plain.

        S-5122, as amended, ADOPTED

        S-5123 by Hahn - Adds Soil Conservation districts to those that are considering model ordinances. ADOPTED

       S-5096 - WITHDRAWN

        The Senate PASSED the bill, 47-0; it now goes to the House

House Floor Action

Bills to the Governor:

SF 2300 LANDLORD TENANT NOTICE

Makes changes to the notice provisions on landlord-tenant law in order to follow War Eagle Village Apartments v Plummer, 775 NW2nd 714 (Iowa 2009).

        The House PASSED the bill, 94-0; it now goes to the Governor

SF 2248 NPDES MATTERS

Allows a person to make an appeal of a DNR decision about an NPDES permit to the EPC through a Commission hearing or a contested case. Makes this appeal the final agency action in order to allows appeals to the district court after. CAFO: Requires an animal feeding operation defined as a CAFO under NPDES to comply with NPDES permit requirements. Requires the EPC to adopt rules that are no more stringent than federal law.

        The House PASSED the bill, 94-0; it now goes to the Governor

Bills to the Senate:

HF 2437 PRIVATE SEWER INSPECTIONS

Strikes requirements that a title abstract include documentation of a sewer inspection. Includes a requirement that any private sewers on a property have been inspected in the groundwater hazard statement.

        H-8192 by Huser - Pre-empts city and county sewer inspection ordinances. ADOPTED

       The House PASSED the bill, as amended, 96-0; it now goes to the Senate

SF 2199 MANUFACTURED HOME TAXES

Requires that the use tax on manufactured homes be paid by the buyer to a licensed manufactured home retailer, and for the retailer to apply for a certificate of title. Requires the tax to be forwarded to the county treasurer or the DOT, and then to the DOR. Allows the county treasurer to keep $1 for each tax payment. Allows the use of an affidavit to surrender a manufactured home if the certificate of title cannot be found. Establishes procedures for such a surrender. ADOPTED

        H-8210 by Huser - Changes the procedures for the affidavit, including that the title abstract be done by an attorney licensed in Iowa. Adds other details. ADOPTED

       The House PASSED the bill, 94-0; it now RETURNS to the Senate

HF 2496 RECYCLING

Establishes a Green Advisory Committee to give the EPC recommendations on a green certification program and recommendations to the DNR on criteria for creating a recycling vendor and resource list, on funding educational activities, and on the green certification program. Requires the DNR to work with the committee on recommendations for green certification and recycling education programs. Allows the use of 3rd party vendors.

       The House PASSED the bill, 89-0; it now goes to the Senate

HF 2459 WATERSHED COMMITTEE

Requires the DNR, in cooperation with DALS, to establish a Watershed Quality Planning Advisory Council. Gives the council duties and requires annual reports by December to the Governor and Legislature.

       The House PASSED the bill, 97-0; it now goes to the Senate

House Local Government Committee: Voted Out:

SF 2264 SUBDIVISION REVIEWS

Allows a city to review subdivisions and plats within two miles of the city’s boundaries. Includes condominiums as subdivisions. Requires that a declaration for a condominium within a review area to be submitted to the city for review. PASSED, 18-0

General business legislation:

Signed by the Governor

HF 2075 CANCER TREATMENT

Requires health benefit coverage for cancer treatments from an approved cancer clinical trial to the extent that there is coverage for other illnesses. Requires referrals from two oncologists and that the treatment be part of a scientific plan. Removes liability from the insurer for the treatment program. Limits routine patient costs and includes extra tests, procedures or drugs that would not be administered except for the clinical trial in routine patient costs.

Senate Floor Action

Bills RETURNED to the House:

SF 2088 STATE GOVERNMENT REORGANIZATION BILL

Adopts the recommendations for streamlining state government. Makes appropriations, establishes fees and criminal penalties.

        S-5072 by the House

        S-5159 to S-5072 by Appel

                S-5161 to S-5159 to S-5072 by Appel ADOPTED

        S-5159 to S-5072, as amended, ADOPTED

        S-5083 to S-5072 by Hartsuch - Requires an annual report on the purchases in-state versus out-of-state, and on the purchases from targeted businesses. FAILED. 15-28

        S-5084 to S-5072 by Hartsuch - makes the procurement goal from targeted businesses 5%. FAILED, 14-28

        The Senate CONCURRED in S-5072, and PASSED the bill, 41-2; it RETURNS to the House

Bills to the House:

SF 2349 AUTISM COVERAGE

Requires health insurance to include coverage for autism, Asperger's, and related developmental disorders, for children under 21. Requires at least $36,000 in coverage, with no limits on visits to service providers. Requires the Insurance Commissioner to define such disorders by rule, and to adjust the coverage levels by the CPI after 2013. Requires the Commissioner to set standards for behavioral specialists. Retains provisions setting the effective date as of January, 2010.

        S-5118 by Rielly - Replaces references to “Insurance Commissioner” with “Board of Medicine” ADOPTED

                The Senate PASSED the bill, as amended, 42-8; it now goes to the House

House Floor Action

Bills to the Governor:

SF 2181 WORKFORCE MATTERS

Adopts new provisions on the conversion of power boilers to low pressure boilers. Makes over changes to update permits and to update language.

        The House PASSED the bill, 91-0; it now goes to the Governor

Bills to the Senate:

HF 2478 LLCS & OTHER MATTERS

Makes the registered office for all LLCs, whether formed in Iowa or another state the same. Requires that a registered agent be a person or business in the state and that the address of an LLC for its registered office and the business office of its registered agent be the same. Requires notice to the Secretary of State of moves. Allows service of process through the mail and deems service to be complete on the date of a receipt or five days after mailing. Allows service through any other legal means. Allows the SOS to impose fees for filing biennial reports. Authorizes administrative dissolution for the failure to file a biennial report , to have a registered agent or to fail to file notice of a move. Other: Allows a business corporation to be dissolved for failing to pay any fee, tax or penalty due to the Secretary of State. Requires biennial reports to be current when filed.

       The House PASSED the bill, 94-0; it now goes to the Senate

HF 2485 CHAPTER 20 BARGAINING

Deems that PERB shall interpret and apply Chapter 20. Prohibited Practices: Strikes the requirement that a prohibited practice be willful to be a violation. Specifies that oral speech of views will not be considered a prohibited practice unless it has a threat of reprisal of force. Allows an officer to hear a prohibit practice hearing electronically. Allow PERB to designate a member to preside at such a hearing. Bargaining Units: Does not allow a petition for a new union when the bargaining unit is already represented by an exclusive unit. Allows for the exchange of initial interest statements in lieu of an initial bargaining position. Makes bargaining deadlines for community colleges the same as other educational units. Allows for a contract to include consideration of union grievances in addition to employee grievances. Arbitration: Requires the approval of the union, and the approval of an employee in employee grievances, for arbitration. Strikes fact finding procedures. Makes arbitration through a single arbitrator. Requires PERB to select five candidates, and for the parties to alternatively strike names.

        H-8217 - WITHDRAWN

       The House PASSED the bill, 97-0; it now goes to the Senate

The following legislation was introduced this past week in the Iowa House and Senate. For full details of the legislation, please visit www.legis.state.ia.us.

Issue related legislation:

HF 2508 FIRE SPRINKLER SYSTEMS (Successor to HF 2062) Requires the county supervisors to vote separately on provisions requiring a fire suppression system in a one or two family home or a four-unit apartment when adopting a building code by reference.

General business legislation:

HF 2510 RETAIL SALES TAX Deems retailers who use a solicitor as operating in the state. Defines a solicitor as someone who solicits business for a retailer, including making referrals, or does other things that result in significant business for the state or impact the ability of the retailer to establish a market in the state. Establishes other indications that a person is a solicitor including that that a person has more than $10,000 in gross receipts.

Lobbyist Contact Information:
Wasker Dorr Wimmer & Marcouiller, P.C.
4201 Westown Parkway, Suite 250
West Des Moines, IA 50266-6720
TEL: 515-283-1801
FAX: 515-283-1802

Bill Wimmer
515-371-8920 (cell)
bwimmer@wdwm.net

Craig Schoenfeld
515-371-8921 (cell)
cschoenfeld@wdwm.net